Latham moves to kill climate change bill

Iowa Republican Rep. Tom Latham of Ames will introduce an amendment to proposed climate change legislation that would kill the measure if energy prices increase down the road.

U.S. Rep. Tom Latham, R-Iowa

The amendment, which Latham said he would introduce Thursday, would force an automatic repeal of the bill designed to limit greenhouse gas emissions if it is determined that electricity prices are increased in the wake of the new policy being implemented.

“Experts across the country are predicting that cap-and-trade will financially hurt American families and small businesses by driving up their energy bills,” Latham said in a statement. “My amendment would establish a shut-off valve to protect Americans if those predictions come true. I urge my colleagues to consider this common-sense proposal.”

Under the legislation, the government would cap carbon emissions and require businesses to buy emissions permits. If a polluter emitted less than its allotment, it could sell the excess.

Most experts agree there will be an increase in energy prices, especially for utilities that rely on coal. Iowa’s largest utility, MidAmerican Energy Co., said the average utility bill could increase by as much as 25 percent.

But supporters of the bill argue that consumers stand to gain in dollars through increased energy efficiency measures, such as utility companies using energy more productively, not letting as much energy go to waste, etc. Those savings could total as much as $750 per household by 2020, according to a study by the American Council for Energy Efficiency.

Poor and moderate-income people would be protected from rate increases with money raised by sale of emission credits. The Congressional Budget Office estimates the legislation would cost an average of about $175 per household every year. However, cost would be borne more heavily by wealthy Americans. Low-income families will actually see a benefit of $40 a year, largely because some portion of the revenue will be used to fund a rebate and tax credit for low-income families.

A study conducted by the Energy Information Administration and the U.S. Environmental Protection Agency found that the average cost per month for utilities in Iowa would increase by about $4.

But even a small increase such as $4 a month would trigger Latham’s amendment and kill the legislation. Sarah Saylor, a senior legislative representative with environmental law center Earth Justice, said Latham’s amendment would be difficult to manage since energy prices often fluctuate even in the current market.

“Energy prices have been subject to price spikes under the existing system, absent any controls on carbon pollution that causes global warming,” she said.

Latham called his proposal an “insurance policy” that protects families.

“If their rhetoric matches their confidence in the legislation, the Democratic majority will let the 435 Members of the House of Representatives vote on my amendment on behalf of hardworking Americans,” he said.

Congress could vote on the measure by Friday.