CAP Report - Capturing the Energy Opportunity

Podesta, J., T. Stern and K. Batten (2007). Capturing the Energy Opportunity: Creating a Low-Carbon Economy. Washington, D.C.: Center for American Progress, November.

• Part of "Progressive Growth" CAP's economic plan for next administration
• pp. 36-37: summary of recommended policies with columns for "what does it do?" "environmental benefits," and "economic/job benefits." No consistent methodology for assessing economic/job benefits - what does BP have in mind to add meat? In many cases, the recommended size/expense of the program is not discussed, which would make I-O analysis hard.
• 21,36 Cap and trade emissions to achieve 80% reduction of 1990 levels by 2050. All permits auctioned. Create $75 bill in auction rev annually over first 10 years. Estimate based on 10 studies, by EIA EPA, MIT, Tellus, and several private authors (ftnt 44). 10% to compensate businesses in energy intensive sectors (and affected shareholders, employees, communities). 45% to offset energy price increases for low- and moderate-income Americans. 45% to science&tech innovation "across the board" and funding for RD&D, tax incentives, other initiatives. STILL VAGUE - NOT CLEAR HOW MONEY IS ALLOCATED.
• 36 Eliminate tax breaks and subsidies for oil and gas. Generate $6 bill annually over 10 years "for investment in low carbon policies" described in the paper. Numbers from Friends of Earth 2006 report (ftnt 45).
• TRANSPORTATION: how much will these policies cost? who will benefit? who administers?
• Higher CAFE stds: 40mpg by 2020 and 55 by 2030. MANDATE - NO DIRECT GOV'T COST.
• Feebates: surcharge on gas guzzlers goes toward rebates for efficient vehicles of same class. REVENUE NEUTRAL (ADMIN COSTS).
• Manufacturing retooling incentives: promote production of fuel efficient vehicles. COST?
• Healthcare for hybrids: legacy healthcare cost support in return for production of more efficient vehicles. COST?
• Efficient vehicles tax credit: $4000 for most efficient vehicles, regardless of technology. COST?
• Plug-in hybrid tax credit: $8000 for first 1 million plug-ins. COST - up to $8 bill.
• Alternative Fuel Standard: 25% low-carbon transport fuels (incl. electricity) by 2025
• Variable Volumetric Ethanol Excise Tax Credit (VEETC): update to make credit vary with price of oil
• Low-Carbon Fuel Standard: reduce lifecycle emissions from transportation fuels by 10% by 2020
• Renewable Fuels Certification Program
• Alternative fuel pumps mandate: 15% of fuel pumps (incl. charging stations for PHEVs) provide low-carbon fuels in any county where 15% vehicles can run on these fuels
• Mass transit and smart growth. MORE SPECIFIC PLANS?
• ELECTRICITY:
• National Energy Efficient Resource Standard: utilities meet 10% energy savings through efficiency upgrades by 2020
• Decouple utility sales from profits
• Grid upgrade: increase efficiency of transmission, encourage dist. gen
• Appliance energy efficiency standards
• Building efficiency: improving building codes, retrofitting public buildings, incentivize deployment of dist gen, energy efficient housing grants and mortgages
• Renewable Electricity Standard (RPS): 25% by 20
• Tax credits and low-interest loans for renewables: SPECIFICS?
• CO2 sequestration: commercial demonstration projectsqu
• Emissions standards and CO2 capture funds for new coal-fired facilities
• Green gov't purchasing: vehicles, low-carbon fuels, energy efficiency, RE
• Taxpayer investments should reduce and withstand the effects of global warming. HOW TO INSTITUTIONALIZE?
• Gov't partnerships to develop CC adaptation strategies: with state and local gov't, non-profits, businesses
• White House National Energy Council: prioritize global warming
• Energy Innovation Council: interagency group, develop multi-year national energy RD&D strategy
• Energy Technology Corporation: finance and execute large-scale, commercially viable demo projects
• Clean Energy Investment Administration: loan guarantees for clean energy projects
• Clean Energy Job Corps: training for "green collar" workers
• More low-carbon energy RD&D: more than double current investment
• Create E-8 group of countries: developed and developing countries, devoted to confronting ecological/resource issues
• Investment in developing countries' energy/environment sectors

QUESTIONS/STUFF TO RESEARCH
p. 20 Problems with EU emissions trading scheme
Safety and cost information on underground CO2 storage