The Cap-and-dividend bill
Global warming is the increase in average temperature of the Earth’s surface air. It is a major concern of the Senate this coming year and new plans are in place to manage it. There is a new proposal on the table to curb global warming and it promises to return about ,100 annually to American consumers. It comes as a bill labeled "cap and dividend.” It would require oil, coal and natural gas companies to purchase permits monthly that would allow them to sell their fuels. Seventy five percent of the dividends would go straight back to the public, in a monthly dividend check, and the rest would go towards renewable energy and conservation programs and research.
Those who like it
Supporters of the new bill note that driving up the cost of fossil fuel and making renewables more competitive will cause the emissions to decline. Senator Maria Cantwell said, “The act provides businesses and investors with a simple, predictable mechanism that will open the way to clean energy expansion while achieving America’s goals of reducing carbon emissions.” It's hoping the cap and dividend bill is going to jump start a movement towards far more energy efficient practices. Cantwell added, “If the government is behind major changes and so are fuel companies, many consumers will follow suit with smaller, everyday changes they can make.”
Those who don't like it
Despite the support it has, others think that the "cap and dividend" idea isn't a good one. Critics believe it could thwart innovation. By limiting Wall Street’s role in the trading of carbon credits, they believe that new technologies will not be nurtured in development. They are citing the lack of investment capital from communities as a major disadvantage.
The cap-and-trade plan
Heretofore, the most popular idea had been that of cap and trade. Cap and trade plans are of annual permits that must be purchased by power producers and businesses that emit carbon from the government. The number of permits would slowly be decreased in order to get large polluters to behave better. Businesses could pay to clean up their facilities, or trade permits with other facilities. A preliminary version of the cap and trade already passed the House, and is headed to the Senate.
What it all means
Senator Susan Collins is a sponsor of the cap-and-dividend bill. She purports consumers will get about ,100 in an annual rebate check, but the higher costs of gas or other fuel costs would only put them 0 ahead as an estimate. Costs are obviously going to fluctuate, but they estimate that the plan will save each household about 5 a year. Collins said, “Climate change legislation must protect consumers and industries that could be hit with higher energy prices.”
The future of the bill
There are a lot of hurdles before it becomes law. It isn't going to be easy, either. Even Democrats in the Senate are having a difficult time finding support strong enough to pass it. A lot of people think it's too expensive for taxpayers. It remains to be seen if it passes, but even if it doesn't, at least Congress is devoting effort to the problem.
Tags: cap-and-dividend bill, global warming, tax rebate credits, the Earth’s surface air