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Jesse Jenkins

Jesse Jenkins

Posted April 24, 2009 | 09:29 AM (EST)

The Sherrod Brown Test: Finding Consensus on Climate Policy


For advocates of immediate and strong climate and clean energy legislation, there's one man we should all be paying close attention to: Senator Sherrod Brown (D-OH).

Senator Brown is one of several Democratic Senators from America's 'Heartland' states that form the critical swing block of legislators that will need to support any climate and clean energy bill that hopes to cross the critical 60-vote threshold in the Senate. Along with a small handful of potential Republican swing votes, these Heartland Democrats have to get behind strong climate policy if we want to see it enacted anytime soon.

Senator Brown has spoken eloquently on multiple occasions about the power of clean energy technologies to revitalize the hard-hit industrial communities of Ohio and other Heartland states. Just this week, the Ohio Senator penned an op ed in the Capitol Hill paper Roll Call declaring that the time is now to enact strong climate policy:

"If we care about the world in which we live and the generations that will follow us, then we must no longer dismiss the lethal risks global warming poses to our planet. We must craft an aggressive strategy to combat global warming, and we must do it now. ... Inaction is not an option."

And yet, the Senator has not pledged support for a specific climate policy. He was among 10 Democratic Senators who signed a letter (pdf) last June, saying they couldn't support climate legislation that resembled the Lieberman-Warner Climate Security Act, which had just been defeated on the Senate floor. That group now includes five more Democratic Senators, and other Democrats have joined a group led by Senator Evan Bayh of Indiana to stake their claim on climate policy as well.

Senator Brown is still on the fence, and as the old saying goes, 'the devil is truly in the details:' if the details of climate and clean energy legislation make it something Senator Brown can support and even champion, then there's a decent shot of seeing the remaining swing Senators jump on board, putting 60 votes within reach. On the other hand, if Senator Brown can't support the proposal because he's not convinced it's in the best interests of Ohio or the nation, then kiss hopes of climate action this year good bye.

It's simple: if we want to pass policies that will truly catapult the United States into a clean and prosperous energy economy, slash global warming pollution, and make clean energy cheap and abundant, we need to pass the "Sherrod Brown Test."

So what are the keys to passing this test? Here are three factors to watch closely...

First, passing the Sherrod Brown Test requires minimizing the economic costs of higher energy prices and maximizing the economic benefits of the legislation, particularly for the manufacturing sector.

Senator Brown is a progressive champion of the manufacturing industries and union jobs that employ so many of his state's residents in good-paying middle-class jobs. Energy-intensive manufacturing industries are sensitive to the price of energy inputs and these industries, already hard hit by the recession, are even more at risk if energy prices rise too much.

Climate legislation premised on a significant increase in dirty energy prices will therefore have a very hard time passing the Sherrod Brown Test. Measures to keep the costs of carbon - and therefore Ohio electricity rates - from rising too high are likely a necessity, and the more transparent they are, the more likely they will be to assure Senator Brown that the worst-case scenarios drummed up by fossil fuel lobbyists, right wing think tanks, and other forces of the status quo aren't going to materialize.

While states like Ohio have a lot to lose if climate policy is done poorly, Senator Brown also knows his state has a lot to gain if it's done right. Investing in clean energy will spark a burgeoning growth industry that can fill factory floors with work orders (and good jobs) again. As the Senator wrote in Roll Call:

"Across my state, manufacturing towns such as Toledo, Cleveland, Dayton, Youngstown and Columbus are leading the way in advanced manufacturing for new clean energy technologies. Our state and our nation need this boost in manufacturing, because in important ways, manufacturing jobs anchor our nation's middle class."

To pass this part of the test, the revenues raised by climate legislation should be reinvested to spur the birth of a prosperous clean energy economy, including new manufacturing jobs in revitalized industrial sectors. In particular, we should focus on investments to accelerate the development and deployment of new clean energy technologies and ensure the industries and jobs of tomorrow take root here in America.

Second, passing the Sherrod Brown Test requires major public investments in clean energy R&D and the deployment of emerging clean technologies - both designed to make clean energy cheap and affordable.

Senator Brown and the rest of the Heartland Democrats who were unable to support last summer's Lieberman-Warner bill say they need to see more direct investments in the portfolio of clean and affordable energy technologies necessary to meet the emissions reduction targets set by climate legislation. As they wrote in June (pdf):

"[Climate Legislation Must] Invest Aggressively in New Technologies and Deployment of Existing Technologies. There is no doubt that we need a technological revolution to enter into a low carbon economy. It is critical that we design effective mechanisms to augment and accelerate government-sponsored R&D programs and incentives that will motivate rapid deployment of those technologies..."

Yes, they clearly have in mind carbon capture and storage (CCS) technology that could enable these coal-reliant states to continue burning the fossil fuel without damaging the climate. But they also envision low-cost solar panel technologies built in Akron or Youngstown, a new generation of biofuels made from agricultural residues and forestry wastes in rural Arkansas and Missouri, and affordable and efficient plug-in hybrid cars rolling off assembly lines in Ann Arbor and Detroit.

Not only are investments in these new clean energy technologies welcome boons to the economies of Heartland states, they are also essential to make clean energy cheap and affordable. Both a step-change increase in the scale of federal energy R&D and the accelerated deployment of emerging technologies to capture economies of scale are critical to lowering the real, unsubsidized costs of clean energy technologies. Making clean energy cheap is a necessary objective of any climate policy in order to secure an affordable and reliable supply of energy to power a prosperous American clean energy economy.

Third, passing the Sherrod Brown Test requires reassuring the Senator that climate policies will not disproportionately impact Ohio and similar states.

Senator Brown has repeatedly warned that climate policies that raise the price of dirty fossil fuels - including the coal that powers almost 90% of Ohio's electricity needs - may end up disproportionately impacting Ohio and other coal-dependent states.

"We need to make climate change work in a way in which ratepayers in Ohio don't get overwhelmed by price increases and manufacturing in our state doesn't go to China," Brown told the Columbus Dispatch last month.

That means President Obama's plan to use 80% of cap and trade to fund his middle-class tax cuts will fail the Sherrod Brown Test. The same is clearly true of the Cap and Dividend proposal, which calls for equal per capita dividends for every American and would transfer wealth from carbon intensive states like Ohio to states like California, Vermont and New York.

"I support the (overall) Obama budget, but I am concerned about this cap-and-trade money because the burden will come to Ohio and the benefits are spread to 300 million Americans," Brown told the Dispatch. "That part of the budget is not acceptable."

As I told Bill Scher in an op ed that just appeared in the Omaha World-Herald (and at Grist online), passing this part of the test will mean that the bulk of carbon revenues must be proportionally returned to the states or regions from which they are generated - both because coal-dependent, Rust Belt states like Ohio have the most to lose from climate policy and because they need the most help.

If we want to get the best bang for the carbon buck and want to maximize the economic gains (to pass part one of this test), we should avoid taxpayer rebates or free giveaways to entrenched industries and instead focus on investments that create clean-energy jobs, lower the cost of clean energy, and help make our bottom-line energy bills manageable and stable.


So while the House and Senate debate and draft climate and clean energy policy and countless advocates and organizations weigh in, we'd better keep Sherrod Brown in mind and remember this: done wrong, climate policy will be heading nowhere but a collision course with a Senate filibuster. But as Senator Brown writes:

"Done right, climate change legislation will improve our nation's competitiveness by creating new jobs and developing new technologies. We must confront the twin challenges of our economy and environment with a robust and thoughtful response. And we must recognize that climate change legislation is an opportunity to rebuild our nation's manufacturing base."

Done right, climate policy can actually pass.

Originally posted at the Breakthrough Institute

Jesse Jenkins is the director of energy and climate policy at the Breakthrough Institute. He is also the founder and chief editor of WattHead - Energy News and Commentary and writes frequently at several other sites.

 
 
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04:42 PM on 04/24/2009
I had my brother ask Sen. Brown about his stance on this issue a few weeks ago. He didn't come out and say it, but it is clear that he is just positioning himself to get more aid to our state, our workers, and our industries.
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10:55 AM on 04/25/2009
But that's the point, if climate change legislation puts too large a burden on the energy producing states it's not going to work and believe you me, the Democrats will feel that backlash at the polls and if the Republicans regain power....there will be NO climate change/energy policy change at all. The policy will be drill more, drill everywhere, and blow the top off of every mountain in the country.

Brown is right, this policy cannot place an undue burden on crucial swing states which happen to also be the states suffering the largest increase in energy prices and unemployment numbers.
03:08 PM on 04/26/2009
So what you're saying is if the people poisoning us think not poisoning us is too expensive, for them, they won't agree to stop poisoning us.

That about it?
04:19 PM on 04/24/2009
Too much of the environmental movement has been elitist in its sneering disregard for blue collar jobs and basic industries. We have been willing to throw all that - them - away for a unrealistic service economy the results of which we are "enjoying" now. If we make the transition to a green environment, it must recall some of our basic production, the only thing that generates wealth as opposed to riches. We much draw on the skill of our technically-savvy workers. So - let's begin "greening" the basic industries of OH, PA, IN, IL, NY, etc. - it can be done, and numerous steel and other plants elsewhere have paved the way. There IS work - serious work - being done in Poland and other Eastern European nations on "clean coal" technology even though it's utterly absent here. If we want wind turbines, let's make the steel and fabricate the blades HERE. If we want solar panels, let's produce them HERE. Capital and durable consumer goods production is essential to a sustainable economy, and worker ownership and management of these industries will help stabilize them, make them economically competitive, and rebuild our communities where those people live. Brown is not being obstructionist - he is being realistic and inclusive. We must all take this approach. Everyone in. Nobody out.
02:52 PM on 04/24/2009
To be "done right" a climate policy has to be political durable, which means appealing to the largest possible constituency. This is the strength of "Cap and Dividend" which by returning the revenue to all citizens protects the middle class and low income people from higher energy prices and would unify the country behind climate policy. A reasonable compromise to assist state's like Ohio, that will be disproportionately impacted by the transition to clean energy (which some studies show have been greatly exaggerated), would be to set aside a portion of revenue for a transition fund- probably block grants to help with job training and research. Beyond funding research that supports the clean tech industry, I think we are better off not having government subsidize particular technologies. Remember ethanol? That on going boondoggle represents the danger of letting powerful industries and swing states and profit and politics speak louder than effective, national policy.
02:35 PM on 04/26/2009
I do remember ethanol. Do you remember railroads, highways or commercial aviation? What about microchips, personal computers and the Internet? Or wind, solar and nuclear power? All of those were invented and/or spread into the marketplace with critical public funding and government involvement. We can all recite the few examples of where politically-dictated subsidies went wrong. But in reciting this market fundamentalist talking point, you and so many others forget all of the many many successes. You forget the critical role of public investments in research and development, demonstration and deployment of now ubiquitous modern technologies we take for granted every day, as well as the enabling infrastructure upon which so much of our commerce and innovation rests. Read our new report, Case Studies in American Innovation: A New Look at Government Involvement in Technological Development for a bit of a timely history lesson. Then let's talk again about the role of public investment in spurring innovation, transforming our economy, and bringing widespread prosperity and growth.
02:03 PM on 04/24/2009
Al Gore- coward

Report: Democrats Refuse to Allow Skeptic to Testify Alongside Gore At Congressional Hearing

http://www.climatedepot.com/a/429/Report-Democrats-Refuse-to-Allow-Skeptic-to-Testify-Alongside-Gore-At-Congressional-Hearing

The debate is not over.
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11:45 AM on 04/25/2009
How about if we hear the testimony of all of the skeptics paid off by the petroleum and coal industryies AND ALL the scientist/experts who are NOT paid off by the petroleum and coal industry to testify? Then let's see which side has the larger consensus and which side the evidence overwhelmingly supports.

But something tells me when you did not get the answer you prefer, you'd still be a skeptic.

And maybe the Democrats weren't interested in hearing from a scientist who received tens of thousands of dollars to skew data favorable to them. Maybe they wanted credible expert testimony.

http://www.prwatch.org/fakenews2/vnr40
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joyf1
Glad I live on an island.
11:09 AM on 04/24/2009
Where I live in the Pacific Northwest, 96% of our electricity is "green energy". We pay 7.5 cents a kw through our electric cooperative. It doesn't have to cost a fortune.
11:24 AM on 04/24/2009
It is also helpful to point out that in the Northwest, much of the green energy comes from government owned dams, the BPA and locally owned utilities. Socialism!
04:21 PM on 04/24/2009
Yeah - like the TVA...such a horrible thing! Voracious private ownership is soooooo much better, isn't it...I just LOVE paying higher rates just so a bunch of absentee shareholders can earn more money. Ahhhh - the American Way.
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11:46 AM on 04/25/2009
If your house caught on fire and the fire department came to put it out and save your family, would you be screaming socialism then?
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danceswithtrees
10:06 AM on 04/24/2009
Translation from theis article...HOLD ON TO YOUR WALLET!
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11:47 AM on 04/25/2009
No, translation is that Sherrod Brown is trying to prevent a 'wallet grab'....please read for comprehension...is it really that difficult for you?
09:47 AM on 04/24/2009
I live in Ohio, and I'm a huge supporter of Senator Brown. He's helped do a lot of good for this state, and while we are behind in some of the issues that face the coasts, I know that Senator Brown will do his best to do what is right for the state. The best thing he can do is to help promote education of green technology, and help divert funds into the R&D aspects of converting the coal industry here into green industry. I can't imagine what life is like down south in the rural areas down near the Ohio river, but I can only see wonderful opportunity for prosperity for the region, and for our state in general, if the appropriate education and training programs are installed to keep workers on the job, simply transfer the purpose of their job from "old school" tech to "new school" green tech
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01:21 PM on 04/24/2009
I think Senator Brown is am awesome Senator!
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Mike Sandler
03:51 AM on 04/24/2009
In 2005 electricity in Ohio was 87% coal, and cost just 8.51 cents per kwh. Electricity in California was just 15% coal (almost all imported from out of state) but cost 12.51 cents per kwh. Cheap coal means dirty states have been paying less than the true cost. So, if we create a carbon cost, should dirty states get bigger dividends? There's an argument for it. I don't have an answer. Any formula will have winners and losers. But I think the pure per capita dividend is a powerful statement that we all share the sky equally, and deviations from that should have strong arguments, not just political expediency. Imagine if we did that with our democracy or voting rights. Oh yeah, we did for a few hundred years.
10:07 AM on 04/24/2009
I live in the "Rust Belt", why is your assumption that I am paying less than true cost? Maybe California is paying more than "true cost".

In truth this is not a controllable laboratory experiment. The "rust belt" states are where manufacturing takes place. A 40% increase in energy costs would raise the price of goods across the nation and/or drive manufacturing and food production overseas. In addition, more people will find ways to compensate, which is currently taking the form of wood burning furnaces outside their homes. I would personally rather have a regulated energy industry (even coal) than millions of small wood burning furnaces. No, I do not believe such things can be successfully banned out side of a completely socialistic society. I also do not believe we will be successful at regulating the world's carbon output. Just look at the failure of nuclear non-proliferation treaties.

If we want to move towards non-coal energy in the next 10-15 years we need to look at Japan and France's nuclear technologies. Outside of that, we are waiting for the next energy breakthrough, not just minor improvements to existing technologies that have benefits but are not near scalable enough to replace coal. And I do not think the government can artificially force it. The government can fund R&D towards it but artificial price increases will not force it. Artificial price increases will just drive the use to where our government can't reach it.
04:26 PM on 04/24/2009
Nuclear technology is a disastrous, overpriced solution. It contributes HUGE amounts of greenhouse gasses in the extraction and manufacturing end of uranium mining and production. It heats surrounding waters, killing fisheries and emitting radiation. It is the MOST expensive way to boil water. Far better that we think about biomass - low carbon outputs, not in ethanol (very high ozone problems) but as actual fuel. In the West, the clearing of burnable, forest-fire producing underbrush and saplings would fuel ALL California's energy needs while reducing the fire hazards. Barry Commoner long ago argued for these "low carbon" sources of fuel. So why rape and pillage MORE of our landscape for uranium ore, risk another Three Mile Island, and destroy our fisheries when we could, for a fraction of the cost, use our detritus to create much cleaner energy? Nukes are NOT a good answer.
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11:59 AM on 04/25/2009
First of all...it would take decades to build enough nuclear plants to service this country. Europe is about half the size of the entire United States. Japan and France are small countries - the size of states in our union! If we were to rely on nuclear energy as our go-to solution..we'd have such an incomprehensible amount of nuclear waste to deal with it would boggle the mind. Nuclear is not an answer for a nation this large.

Why don't you look at Germany for an example? A country with less days of sunshine than my city with a cloudy reputation....they get 30% of their energy from solar. Every roof has solar panels.

The answer to our energy crisis is going to be a multi-faceted approach...there is no 'one' technology or policy we need to employ.

First and foremost we need a national program of conservation to reduce energy and fossil fuel consumption in the first place. That can come with passive buildings, smart urban planning, smart food production (which also happens to be healthier).

Then we look at solar, wind, geothermal and the plethora of clean options on the table.

But saying nukes is the answer is just myopic and lazy.