EPA Analysis: Waxman-Markey Moves America to Clean Energy Economy

Legislation Dramatically Increases Clean Energy While Reducing Overall Demand

WASHINGTON (April 21, 2009) – A U.S. Environmental Protection Agency preliminary analysis of the draft comprehensive clean energy and climate legislation put forward by Reps. Henry A. Waxman (D-Calif.) and Edward J. Markey (D-Mass.) says that the bill would succeed in “moving the U.S. to a clean energy economy.” The analysis also finds that the cap on global warming emissions would accelerate renewable energy deployment by 150 percent over the next two decades, and that energy efficiency measures will significantly decrease energy demand.

The EPA analysis, which was requested by Reps. Waxman and Markey, focused mainly on the global warming pollution cap, and because of limitations on time did not take into account many of the cost-saving and technology-driving renewable energy, energy efficiency and other provisions in the bill.

"This analysis confirms that the Waxman-Markey legislation will create a clean energy economy that will continue economic growth and cut harmful pollution," said Rep. Markey, who chairs key energy and climate panels in the House. "When you combine this analysis with cost-saving measures from updated energy efficiency measures and weatherization, the savings will pile up for consumers."

Below are some of the other findings from the analysis, which can be found on the EPA website here:

• The nation’s gross domestic product grows robustly - from $15-16 Trillion in 2015 to $22-23 Trillion in 2030 - while deploying clean energy technology and reducing global warming pollution.
• Carbon capture and sequestration technology will be deployed for coal plants by 2015, to both new and existing plants.
• Major investments in energy efficiency means that energy consumption levels will be reduced such that levels that might have been reached by 2015 are not reached until the middle of the century.
• Consumption growth -- a measure of a household’s purchasing potential -- would grow by up to 10 percent from 2010-2015, 19 percent by 2020, and 40 percent by 2030.
• The pollution permit price would be significantly lower than previous Senate proposals, reducing costs to consumers and industry.

Recent studies, which use government models, found that adding a renewable electricity standard and energy efficiency programs would save consumers hundreds of billions of dollars. For example, a study released today by the Union of Concerned Scientists uses Department of Energy models to look at a comprehensive program similar to Waxman-Markey, and finds that an average American household would receive a net savings of $900 on its energy bill.

And while the analysis did include some of the impacts on emissions by the 2007 energy bill, it did not include the recent recovery package, which a Department of Energy study on Friday said would reduce household energy expenditures 4.5 percent by 2028.

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