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ABOUT USThe Minnesota Budget Project is an initiative of the Minnesota Council of Nonprofits.
Climate Change Resource PageClimate change, and current legislation being proposed to address it, will impact us all. While pollution regulation may result in higher energy prices, there will also be the shared benefits of a cleaner environment and new economic opportunities. It is important to consider who will bear the costs of addressing climate change and who will benefit. Low-income populations will be disproportionately affected by rising prices of energy-intensive basic necessities like electricity, heat, food and transportation, since they spend a higher percentage of their income on these goods. The Minnesota Budget Project believes low-income households should be fully protected from the rising cost of basic needs through consumer relief, and also can be part of the solution with appropriate access to green job and opportunities for energy efficiency improvements. We have been following the legislation to address climate change closely, advocating for consumer relief and learning from organizations addressing related climate change issues impacting low-income populations such as accessible green jobs and targeted energy efficiency improvements. Proposals to address climate change are being considered on both the national and regional levels. At the national level, a federal cap-and-trade bill passed the U.S. House in 2009, but the U.S. Senate failed to secure the needed votes to pass comprehensive climate change legislation in July of 2010. When and how Congress will move forward on this issue remains to be seen. At the regional level, nine Midwestern governors and two Canadian premiers have signed on to participate in the Midwestern Greenhouse Gas Reduction Accord, as first agreed to in November 2007. Currently, the Accord mentions the need for low-income consumer relief, but it does not specify how relief would be delivered most efficiently and effectively. At both levels, the Minnesota Budget Project is working to inform efforts regarding the best possible form of low-income consumer relief and other climate equity provisions. See the Policy Update section for the latest information on legislative action. Minnesota Budget Project Resources
Policy UpdateIn 2009, the U.S. House passed a cap-and-trade bill called The Clean Energy Jobs and American Power Act. In this bill necessary revenues were set aside for full, direct consumer relief to the lowest-income 20 percent of the population, or roughly those with incomes below 150 percent of the poverty line. In 2010, Senators John Kerry and Joe Lieberman introduced the American Power Act but later announced that they did not have the necessary votes to pass the bill. This bill would have dedicated full direct relief to those with incomes below 150 percent of the poverty line and additional direct relief to those with incomes between 150 - 250 percent of the poverty line. Many anticipate that Congress will now work to move forward with a series of smaller bills focused on addressing liability and safety issues related to off-shore oil drilling and some measures to promote energy efficiency and clean energy. This piece-by-piece approach is problematic for vulnerable populations given the lack of a clear revenue stream to fund equity provisions including low-income consumer relief and equitable access to green job training. Given the lack of comprehensive reform coming from the U.S. Congress, it is also likely that efforts will continue to create state and regional cap-and-trade policies including the Midwestern Greenhouse Gas Reduction Accord. Additional ResourcesConsumer Relief
Green Jobs
Energy Efficiency/ Weatherization
Environmental Justice
Environmental Partnerships
Updated July 2010 |
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