House Energy and Commerce Committee Delays Consideration of Cap and Trade Bill

Following last week's four days of hearings on the House Energy and Commerce Committee's draft cap and trade bill for greenhouse gas emissions, previously scheduled subcommittee consideration of the measure was postponed this week while negotiations continued with Democrats and stakeholders on a way forward. The Committee has tentatively scheduled subcommittee consideration of the bill for next week. Given strong Republican opposition to cap and trade legislation, proponents of the measure need to win over Democrats who represent constituencies that would be most affected by the bill, including low-income consumers, electric utilities, coal industry, oil and gas and manufacturing. Democrats are currently working out how to allocate the emission credits, which is a crucial cost component of the legislation. Energy and Commerce Committee leadership also need to work out differences with the Ways and Means Committee, whose Democratic membership is skeptical of using a market to regulate carbon and have suggested levying a direct tax on carbon emissions (i.e., "carbon tax"). AGC's analysis of climate change legislation shows a significant impact on construction in the form of higher energy prices, higher raw materials prices and potential EPA regulation of land use (including local planning decisions) and transportation planning.