Environmental Justice and Federal Climate Change Legislation
Have you ever thought about how the proposed federal climate change legislation, also known as cap and trade, might affect low- and moderate-income Minnesotans?
That's what I'm working on as a Climate Change Intern at the Minnesota Budget Project.
The Minnesota Budget Project is an initiative of the Minnesota Council of Nonprofits. With a mission "to provide interested citizens, elected officials and community leaders with timely and accurate information so that they can become more active and effective participants in the public policy debate," the Minnesota Budget Project focuses on the impact that budget and tax issues have on low- and moderate-income Minnesotans and the organizations that serve them. Right now, one of those issues is climate change.
I always thought about environmental justice in terms of the people who are disproportionately affected by environmental damage. Whether it's landfills being located near low-income communities, or the poor air quality in certain neighborhoods, not everyone has the time, money, or privilege that allows them a clean environment. As the Environmental Justice and Climate Change Initiative puts it - people of color, low-income, and Indigenous communities "are the first to experience the negative impacts of climate change such as heat-related illness and death, respiratory illness, infectious diseases, unaffordable rises in energy costs, and extreme natural disasters." Quite simply, if/when Minnesota starts having record-breaking heat waves in the summer, who can afford to have air conditioning and who can't?
That's partly what the House and Senate are addressing now with the cap and trade bill. Passed in the House as the American Clean Energy and Security Act in June, the Senate is now crafting their version of the bill, the Clean Energy Jobs and American Security Act.
But how will this climate change legislation impact low- and moderate-income communities? That's right. The legislation that's meant to reduce the pollution causing climate change could have a disproportionate impact on those communities as well. Low-income communities spend a higher percentage of their income on basic needs like food, energy, and transportation. The cost of all these goods is likely to go up under a cap and trade system. That's why we are looking at the bill closely for language related to consumer relief for low- and moderate-income populations. The House version provided full relief to low-income communities through the allocation of a percentage of the allowance revenue generated by the cap and trade system. We are advocating for the Senate to do the same but to extend the relief to include relief for moderate-income populations as well.
The Minnesota Budget Project, and the Minnesota Council of Nonprofits, fully support climate change legislation; climate change is one of the most pressing issues of our time. But it's important to consider who is bearing the burden of the potential costs associated with this legislation.
It's a complicated issue with a lot more to it, including green jobs and job training programs, and it's unfolding right now. In fact Minnesota's own Senator Amy Klobuchar sits on the Environment and Public Works committee that just released their mark ups of the bill, which included critical language related to consumer relief. However, it seems the Republican members of the committee are boycotting the bill. I'll try to keep you updated in the coming weeks as I follow this bill through the Senate, it's bound to have many twists and turns. But climate change is certainly the most pressing issue of my time, I can't see it any other way.
Comments
Julia,
Thanks for your insightful blog post. In some reading I did a while ago I learned about assistance that was included as part of the legislation to create a trust fund to finance tax relief and resources for utility companies to assist low-income consumers. The Center on Budget and Policy Priorities -- http://www.cbpp.org/cms/?fa=view&id=445 -- provided a report focused on this topic (as you're likely aware).
I'm wondering how this fares for relief or support in Minnesota? Is that something that becomes state or federally funded?
I look forward to your continued blog entries as part of this series. What a resource for pubTalk!
Posted by: Kim Borton | November 5, 2009 10:32 AM
I don't know much about the tax relief for low-income consumers. I think that comes in the form of adjustments to the Earned Income Tax Credit. The other forms of relief are through Social Security and EBT food stamps. These are all methods that the Minnesota Budget Project is promoting because our emphasis is on using existing methods.
The allocations to the utility companies are more controversial because it isn't stated that the relief coming through the utility companies has to go to low-income customers. It could be spread across all customers, or spread between businesses and individuals. Basically, if the purpose of that allocation is to have it reach low-income people, doing that through the utility companies is not efficient or effective and we are advocating for that allocation to be distributed through other methods like increased food stamp allowances.
For these forms of relief, I think it's all federal, not specific to MN.
Posted by: Julia Jackson
|
November 5, 2009 2:09 PM