Clintons Multi-billion Dollar Plan
On January 30, the Clinton administration announced a $6.3 billion emissions reduction plan. The budget for fiscal year 1999 will include $3.6 billion in tax credits and $2.7 billion in new research and development funding over the next five years. The plan will focus on four areas: buildings, industry, transportation, and electricity.
The package will include tax credits worth $100 million for rooftop solar systems. Homebuilders can receive tax credits for 15 percent of the cost of the systems with a maximum credit of $2,000 for photovoltaic systems and $1,000 for solar water heating systems.
To encourage industry support, nine hundred million dollars worth of tax credits will be made available for business firms who install combined heat and power systems. The tax credit will be ten percent of the cost of investment.
Energy-efficient buildings will receive a tax credit worth twenty percent of the investment subject to a cap and purchasers of new energy efficient homes will receive a tax credit equal to 1 percent of the purchase price up to a maximum credit of $2,000.
The Clinton administration will also propose a tax credit for fuel-efficient vehicles worth $700 million. Vehicles with triple the base fuel economy standard would be eligible for a tax credit worth $4,000 per vehicle. A proposal to equalize tax treatment of parking and transit and vanpool benefits will cost $100 million.
Finally, the administration will propose tax credits for electricity produced from wind and biomass worth $200 million (BNA Daily Environment Report, February 2, 1998).
Senator Helms Enters the Fray
In a letter to President Clinton, Senate Foreign Relations Committee Chairman Jesse Helms (R-NC) accused the President of “unwisely and unnecessarily” delaying Senate consideration of several international treaties. Helms said that the Senate Foreign Relations Committee will not consider the Comprehensive Test Ban Treaty until the President submits the Kyoto Protocol to the Senate for ratification.
“We owe it to the American people to let them know sooner rather than later, whether they will be subject to the terms of this treaty,” Helms wrote. A Clinton spokesperson responded that “the administration has no intention of submitting the Kyoto Protocol until there is meaningful participation from developing countries” (Greenwire, January 23, 1998).
Foreign Policy Experts Oppose Kyoto Protocol
Members of the Committee to Preserve American Security and Sovereignty (COMPASS) wrote a letter to President Clinton opposing the Kyoto Protocol. The letter reads in part, “lessons we have learned from (past) negotiations in arms control, trade and other areas . . . have been ignored or forgotten in the Kyoto process.” The letter argues that the Protocol “threatens to limit the exercise of American military power.” Excerpts of the letter appeared in a full page ad in the Washington Times on January 27, 1998.
“Political” Scientist Discusses Kyoto
Former chairman of the Intergovernmental Panel on Climate Change (IPCC), Bert Bolin recently offered his assessment of the Kyoto Protocol in Science (January 16, 1998). Bolin estimates that under the Kyoto Protocol atmospheric concentrations of CO2 will rise by approximately 29 parts per million by volume (ppmv). “It therefore seems likely,” writes Bolin, “that another international effort will be required well before 2010 to consider whether further measures are warranted.”
Bolin also discusses the problem of how to count carbon sinks in determining compliance. Though the protocol asks the IPCC to resolve this issue Bolin argues that, “It is . . . not clear how to devise satisfactory methods to achieve what is envisaged in the protocol.”
Bolin concludes that, “The Kyoto conference did not achieve much with regard to limiting the buildup of greenhouse gases in the atmosphere.” However, he sees the conference as a good first step towards the ultimate objective, “to achieve stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.” Bolin did not, however, define “dangerous interference.”