Posted June 2, 2010

With U.S. unemployment currently just under 10 percent, and a ruptured oil well causing significant economic and environmental damage in the Gulf of Mexico, it is still unclear if the American Power Act will gain the traction needed to become law. However, in a May 27 speech regarding the oil spill, President Barack Obama noted that the Gulf of Mexico disaster demonstrates the need to transition to cleaner sources of energy.

A study completed by the Peterson Institute for International Economics found that the American Power Act would result in the creation of new jobs. The study, titled "Assessing the American Power Act," used the U.S. DOE's National Energy Modeling System to forecast the legislation's economic, employment, energy security and environmental impacts through 2030. Specifically, the study found that the bill would:

•Reduce the total energy demand met by fossil fuels from today's level of 84 percent to 70 percent in 2030.

•Reduce U.S. oil imports by 33 to 40 percent of current levels, reducing U.S. spending on imported oil by $51 to $93 billion per year.

•Place a price on carbon that would rise from $16.47 per ton in 2013 to $55.44 per ton in 2030, reducing GHG emissions by 42 percent of baseline 2005 levels by 2030.

•Stimulate U.S. economic growth and job creation in the first decade, increasing average annual employment by about 200,000 jobs.

•Increase household electric rates by 3 percent and gasoline prices by 5 percent between 2011 and 2030, however these price increases would be largely offset by energy efficiency improvements.

This article originally appeared at www.industrialghg.com