Environmental Update

Senate Releases Draft Clean Energy Bill

October 5, 2009

The Kerry/Boxer Senate climate bill was released on September 30, 2009.  Captioned the "Clean Energy Jobs and American Power Act", it is similar in many ways to the comparable House Bill (the "American Clean Energy and Security Act") passed in June, although the Senate draft bill requires steeper cuts in emissions and leaves open for negotiation many key issues.  While there has been an attempt to move away from referring to this bill as a "cap and trade" bill due to the concerns many have raised with its impact on the economy, the cap and trade concepts are retained in the bill.  It remains unclear, however, whether there are sufficient votes to pass this or any climate change legislation. The federal EPA's proposal to regulate greenhouse gas emissions through the Clean Air Act could provide Senators with the necessary motivation to act to avoid EPA/Clean Air Act-based regulation. However, the Obama administration has signaled that it does not expect Congress to pass legislation this year.

 

See an overview of the draft bill

See a summary of the draft bill

See a section-by-section summary of the draft bill

See the full text of the draft bill

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© 2009 Davis Polk & Wardwell LLP