H.R. 2454 (Waxman-Markey): American Clean Energy and Security Act of 2009

Introduced by Representative Waxman and Representative Markey on May 15, 2009, the American Clean Energy and Security Act of 2009 has seen many revisions and amendments during its life with the authors’ intentions of creating clean energy jobs, achieving energy independence, reducing global warming pollution and transitioning to a clean energy economy.  On June 26, 2009 the House of Representatives passed H.R. 2454 by a vote of 219-212.

Within the 1200+ page Waxman-Markey bill, there are nine pages that highlight the topic of greenhouse gas reductions through metropolitan planning.  Section 222 of the bill amends section 841 of the Clean Air Act to include GHG emissions reductions through transportation efficiency.  At a hearing on May 19, 2009 Representative Matsui brought her bill – Smart Planning for Smart Growth Act (H.R. 1780) – to the House Committee on Energy and Commerce seeking a commitment from Chair Waxman to work with the House Transportation and Infrastructure Committee regarding Section 222.  The June 5, 2009 version of the Waxman-Markey bill included a comprehensive outline for achieving greenhouse gas reductions through both state and metropolitan planning.  This version required all states and large MPOs (over 200,000 in population) to develop greenhouse gas emission reduction targets for the transportation sector, and directed the US EPA to create standards for models, data collection, and methodologies pertaining to the development and implementation of state and MPO GHG reduction plans and scenario analyses required to identify trends in VMT and improved access to goods and services.  It also included an exhaustive list of transportation and land use strategies that should be considered to reduce transportation-related GHG emissions – including transit improvements, transportation demand management strategies, changes to zoning and local land use codes/regulations, mixed use development, pricing mechanisms such as tolling and congestion pricing, parking policies, and implementation of complete streets standards.  This “Masui-Version” in Section 222 also included the provision of competitive grants awarded to states and MPOs that have created cost-effective plans to reduce per capita GHG emissions from the transportation sector utilizing transportation and land use strategies.

However, at 3am the same day the House approved the bill (26 June 2009), 300 pages of amendments to Waxman-Markey were released.  The Matsui-influenced version of Section 222 was replaced with draft language from the Surface Transportation Authorization Act of 2009, which Chairman Oberstar’s Transportation and Infrastructure Committee released four days prior to the House passage of Waxman-Markey.  Unfortunately Matsui’s comprehensive language directing specific considerations for land use and transportation strategies which reduce GHG emissions was replaced by less detailed language borrowed from Chairman Oberstar’s proposal for the Transportation Authorization.  This language was likely a placeholder for more detailed direction from the Senate, as Senator Boxer’s Committee on the Environment and Public Works is currently considering mark-ups of their version for the federal climate/energy bill.

The House-adopted version of the federal climate/energy bill (Waxman-Markey) and Chairman Oberstar’s proposed language for the Transportation Reauthorization both include a requirement for US EPA and US DOT to establish national transportation-related GHG emissions reduction goals, and to standardized models/methodologies, and methods for data collection to inform such targets.  States and MPOs must also establish surface transportation-related GHG emissions reduction targets and strategies as part of the transportation planning process.  US DOT would be required to establish performance measures to ensure that State and MPO plans progress toward national goals, such that the targets and strategies established by States and MPOs shall:

• Be based on the models and methodologies established in the final regulations required under Section 841 of the Clean Air Act;
• Address sources of surface transportation-related GHG emissions and contribute to achievement of the national transportation-related GHG emissions reduction goals;
• Include efforts to increase public transportation ridership; and
• Include efforts to increase walking, bicycling, and other forms of nonmotorized transportation.

While it is argued that a federal climate/energy bill would reduce energy costs in the long term, the funding basis in the adopted version of Waxman-Markey would allocate cap-and-trade allowances/permits without charge for ten years before the auctioning process would be able to start generating allowance revenue for any proposed recipients in the bill.  Due to the funding uncertainty, particularly in the short-term, of allowance revenue for clean transportation projects and planning, it is important to note that Waxman-Markey does not offer a substantial funding mechanism to support MPOs and States under the proposed requirements to achieve transportation-related GHG emissions reductions.  This reality is compounded by the insolvent Highway Trust Fund and budget crises that states such as California are currently facing.  As a result, it is even more important that we turn to the next transportation reauthorization for clear direction in how transportation and land use strategies that work toward the reduction of GHG emissions can be financially supported in both the short and long-term.

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