Cap and Trade. The American Clean Energy and Security Act (H.R. 2454), also known as the cap-and-trade bill, would not merely “cap” carbon dioxide and other “greenhouse” gas emissions, ostensibly to fight global warming, but would reduce the amount of allowable emissions over time — to 17 percent below 2005 levels by 2020, 42 percent by 2030, and 83 percent by 2050. The government would auction or freely distribute a limited number of emission allowances, which companies would be able to buy or sell. Of course, as the total amount of allowable emissions is reduced, the price of the allowances would skyrocket — and with them the price of electricity and whatever else is produced from burning fossil fuel. The Congressional Budget Office estimated that the effect of the House committee version of the bill would be to raise federal taxes by $846 billion and direct federal spending by $821 billion over the 2010-2019 period.
The House passed the cap-and-trade bill on June 26, 2009 by a vote of 219-212 (Roll Call 477). We have assigned pluses to the nays because this legislation would be devastating to the economy if enacted and the federal government has no constitutional authority to limit greenhouse-gas emissions.
