Testifying today before the House Energy and Commerce Committee and the Subcommittee on Energy and the Environment on the climate change proposal recently offered by Chairmen Henry Waxman and Edward Markey, NRECA CEO Glenn English expressed concern over one of the possible options for a cap-and-trade program, voicing strong opposition to the auction of carbon emission allowances on the open market.

“NRECA’s objective is to help Congress develop and pass an affordable, workable, and sustainable piece of legislation to address the nation’s energy and climate change objectives,” English told the Committee.  He pointed out that “maintaining the affordability of electricity is the principle against which NRECA will judge all climate change and energy legislation.”

While the proposal is silent on the disposal of allowances under a carbon cap-and-trade, English told the committee that “NRECA will strongly object to any legislation that makes electricity unaffordable or gives Wall Street speculators the ability to set our nation’s electricity bills.”

“In 1938 President Franklin Roosevelt declared that electricity was a necessity, not a luxury. We must not turn back on that commitment from over 70 years ago. We do not have to, and should not, in climate change legislation,” English declared.

English called for legislation that is simple, focused on reducing carbon and prevents the regulation of carbon not just under the Clean Air Act but under other laws as well. 

“Other statutes, most notably the Endangered Species Act, could be used to require emission limitations and other provisions of the Clean Air Act could potentially be used to require similar reductions. The most effective way to address climate change is to develop a new, organic law that is the sole legal authority over greenhouse gas emissions. Therefore, the bill must explicitly clarify that no other provision of federal or state law can be construed to require any greenhouse gas limitation or requirement.”

In answering questions from Committee Members, English also emphasized the importance of technology advances and new transmission to meet the objectives of the bill’s authors while assuring that reliable, affordable power continues to flow to consumers.