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Iowa Policy Project: Iowans show support for clean energy and climate bill
9/18/2009

CONTACT: Mike Owen

Iowa Policy Project

319-338-0773, 319-331-1287 (Mobile)

Kerri Johannsen, ELPC

515-244-3113, 515-473-0123 (Mobile)


Analysis shows Climate Bill will benefit Iowa

DES MOINES, Iowa (September 18, 2009) - At a public hearing before the Iowa Utilities Board this morning, a broad coalition of Iowa citizens will call for the Iowa Utilities Board to stand up to utility pressure on climate change. Through previously submitted written comments and personal testimony at a workshop on Friday, these citizens will make the scientific, economic and personal case for why Congress should pass the American Clean Energy and Security Act (ACES).

Several of the groups submitted analyses that showed how Iowa will benefit from clean energy legislation through job growth and income in manufacturing, renewable energy and energy efficiency. Others showed that the moderate costs of the bill are miniscule compared to the threat of global climate change.

"These analyses get past the scare tactics that have been prevalent in the debate over climate change legislation," said David Osterberg, executive director of the nonpartisan Iowa Policy Project. "Under one respected analysis, the additional cost to the average Iowa household is estimated at $4 a month, about the cost of a Big Mac and fries. That is a small cost to assure energy security for the future."

Wally Taylor, attorney for the Sierra Club, Iowa Chapter added, "In fact, when the energy efficiency and renewable energy measures in the federal climate bill are included, the analysis projects a monthly savings of over $5 on electric bills by 2020."

The public interest coalition - Iowa Environmental Council, Iowa Policy Project, Environmental Law & Policy Center, Plains Justice, Natural Resources Defense Council, Iowa Renewable Energy Association, Iowa Interfaith Power and Light, Iowa Chapter Physicians for Social Responsibility, Iowa Chapter of the Sierra Club, Iowa Global Warming Campaign, Iowa Citizens for Community Improvement and 1000 Friends of Iowa - filed the comments as part of a special review by IUB of the potential impacts of H.R. 2454, the proposed American Clean Energy Security Act of 2009 (ACES). ACES passed the House and is currently under consideration in the Senate. Some organizations signing the letter are supporters of the legislation; others are interested in helping to better define the public policy issues.

"There is so much more at stake here than minor changes in electric rates," said Rob Kelter, Senior Attorney for the Environmental Law & Policy Center "Clean energy can be a major driver of economic growth in Iowa, but we have to stand up to the utilities to make it happen."

"Iowa is well-positioned to move to a clean-energy economy under this legislation. Our state is a leader in energy efficiency and wind-energy production and has vast untapped potential for clean energy development," Nathaniel Baer, energy program director for the Iowa Environmental Council said.

"Iowa will be positioned to lead the nation in clean energy solutions if this federal climate legislation is passed," said Rebecca Stanfield, Senior Energy Advocate for the Natural Resources Defense Council.

The groups submitted individual comments and signed on jointly to a letter that stated:

* Four separate analyses of ACES show that overall costs to Iowans will be minimal and potentially positive.

* Under any analysis, low-income consumers will be better off under ACES than business-as-usual.

* The bill favors Iowa, compared to most states, in its distribution to Iowa of allowances under the State Energy and Environment Development Accounts (SEED). These funds go to each state to support renewable energy, energy efficiency, and climate change programs. Iowa will receive more allowances than the national average on a per capita basis.

The citizens' written comments note that costs, in all the analyses, are likely overstated and benefits understated, because none of the analyses quantify savings from the prevented impacts of climate change. Cost estimates include:

* Two of the analyses (EPA and CBO) look only at the costs of the cap and trade portion of the bill and conclude that average costs for U.S. households would increase by approximately $80 to $175 in the year 2020, or about 22 cents to 47 cents per day.

* An analysis provided by consulting firm MJ Bradley looked at the impact of the cap and trade program specifically on Iowan's electric rates and concludes that the average Iowa household would pay approximately $4 a month more, or about 13 cents per day, in year 2020.

* Natural Resources Defense Council's analysis looked at the financial impact of the cap and trade program plus additional clean energy policies in ACES, to estimate future rate and bill impacts for Iowa. This more comprehensive analysis projects a net monthly savings, to average residential electric bills, in year 2020 of $5.11 per month.

Interviews Available:

Nathaniel Baer

Energy Program Director

Iowa Environmental Council

515-244-1194, ext 206

Mobile: 319-321-8449

Rob Kelter

Senior Attorney

Environmental Law & Policy Center

312-795-3734

Mobile: 773-519-5660

Rebecca Stanfield

Senior Energy Advocate

Natural Resources Defense Council

312-651-7910

Mobile: 312-890-3984

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