CALLING ON CONGRESS TO ALLOCATE AN IMPACTFUL SHARE OF GREENHOUSE GAS AUCTION REVENUES DIRECTLY TO CITIES
WHEREAS, The U.S. Conference of Mayors has established policy on city priorities in regards to the distribution of revenues generated from a Federal cap-&-trade system for greenhouse gasses (Resolution No. 64, 2008); and
WHEREAS, the U.S. Congress has developed multiple proposals on a cap-&-trade system for carbon and greenhouse gas reduction; two stand-out as having broader support: 1) S3036, the Lieberman-Warner Climate Security Act of 2008 (110th Congress); 2) American Clean Energy and Security Act of 2009 (111th Congress); and
WHEREAS, leading cap-&-trade proposals reduce total U.S. greenhouse gas emissions from all sources by up to 66% by 2050; and
WHEREAS, The U.S. Conference of Mayors has endorsed an 80 percent reduction in greenhouse gas emissions from 1990 levels by 2050
WHEREAS, The U.S. Conference of Mayors has endorsed market-based programs that reduce greenhouse gas pollution from major sources such as electric utilities, oil companies, and large industrial entities where emissions are caped and tradable permits are given for each ton of pollution released; and
WHEREAS, these tradable permits, or "allowances" can be bought and sold on the open market with an existing reserve of allowances that would be available at an auction; and
WHEREAS, cap-&-trade systems at the Federal level have a history of meeting their goals as the 1990 Clean Air Act contained a cap & trade system for sulfur dioxide to reduce acid rain. 100 percent compliance was achieved through this program. Nitrous oxide emissions have also been curbed through a cap & trade formula; and
WHEREAS, carbon derivatives are now traded in two States: Illinois through Chicago Climate Exchange, plc, and New York through NYMEX Holdings' Green Exchange. There is also a state government cap-&-trade cooperative initiative called the Regional Greenhouse Gas Initiative (RGGI); and
WHEREAS, the research firm, New Carbon Finance projects the U.S. carbon market could reach a value of $1 trillion by 2020 if Congress passes a Federal cap-&-trade law by 2009; and
WHEREAS, above 70 percent of the world's energy is consumed in or by cities of the world; and
WHEREAS, carbon footprints are largest in cities and cities are the leading centers where efforts to reduce such a footprint are underway.
NOW, THEREFORE, BE IT RESOLVED, that The U.S. Conference of Mayors calls on Congress to shape a cap-&-trade system in such a way where no less than 10 percent of greenhouse gas allowance auction proceeds can be directed to cities for the purposes of 1) workforce training initiatives in the renewable and sustainable fields; 2) implement projects and programs to reduce carbon emissions associated with transportation 3) energy efficiency, renewable energy and carbon reduction activities, projects and policies.