Green Recovery Program
Posted by benarmstrong on 1/18/2009 2:37:13 PM.
This policy was first proposed by Center for American Progress.
Level of Government: National
Status: Proposed

Abstract
Background:
The Center for American Progress, in conjunction with the Political Economy Research Institute of the University of Massachusetts, proposed The Green Recovery Program in September 2008 to meet the country’s exigent environmental and economic needs.
Purpose:
The Green Recovery Plan seeks to 1) create 2 million green jobs, 2) reduce carbon emissions and 3) develop innovative and sustainable sources of energy.
Plans:
The Green Recovery Plan proposes six areas of investment that will lead to more employment and a greener society: building construction, mass transit, smart grids, wind power, solar power, and biofuel energies. The bill proposes investment through direct government expenditure as well as tax credits and loan guarantees.
           
The plan proposes retrofitting public and private buildings to meet green standards. Buildings should use solar and geothermal technologies as well as efficient lighting, appliances and heating and cooling systems. Direct spending can retrofit public buildings, all of which should be retrofitted, according to the plan. Expanding current tax credits and loan guarantees – and potentially creating new ones – can incentivize private actors to weatherize and retrofit private commercial buildings. Short-term spending on retrofitting will create job opportunities for electricians, carpenters and other construction workers over the next two years.
           
Direct public spending could also expand public transportation services, particularly mass transit. Short-term spending on public transportation should be used to expand the reach of bus and train services, lower fares, and increase support for local transit operations in need of funding and looking to expand. In the long-term, the plan promotes building new light-rail systems. The public transportation spending will create jobs for engineers, electricians, and other specialists.
           
The Green Recovery Plan proposes increased direct federal support for smart grid pilot projects. Smart Grid development seeks to modernize the transmission of electricity in order to increase the efficiency of energy consumption. Investment in smart grid technology creates jobs for skilled engineers and computer technology specialists.
           
The plan proposes expanding grants and loans that support the development of renewable fuels. Programs to invest in solar, wind and biofuel technologies were created in the 2007 Energy Bill. The Green Recovery Plan proposes expanded investment in these grant and loan schemes in order to further reduce carbon emissions and create jobs for engineers, metal workers, construction workers, chemical specialists and others.
           
Indirectly, the plan proposes a national cap-and-trade system. The system would mandate a maximum carbon output per private firm and allocate a certain number of carbon permits to each business proportionate to the amount of carbon it is authorized to emit by law. Businesses could then trade permits in order to capitalize off of efficiency or incur cost for inefficiency. Each credit exchange would be taxed a small percent. 
Resources: The plan proposes $46 Billion in direct expenditures on energy infrastructure and research and development; $50 Billion on tax incentives and $4 Billion on loan guarantees. Thus, the estimated total cost of implementing the Green Recovery Program is $100 Billion over two years. The plan argues that the auction of carbon permits from a cap-and-trade system as well as the elimination of federal tax subsidies for the oil and gas industries can cover a portion of the plan’s expense The plan further contends that the plan will “pay for itself” through the savings that energy efficiency confers. 

Policy Details

The Plan promotes a cap-and-trade system, but does not set a benchmark for carbon reductions.

The Green Jobs Plan proposes that the federal government provide increased funding for pilot smart grid projects already in place around the country.

The Plan outlines strong investment in solar, wind and biofuel technology, but does not set specific standards for renewable fuels as a percentage of total energy or electricity production.  Instead, it promotes investment in the development of these fuels through extending and expanding tax incentives for investment in these technologies.

Yes, a new, national system will be created.

Though the body of the plan does not set forth fuel economy benchmarks, the appendix outlines the required fuel efficiency to reach environmental goals.  It suggests that the American vehicle fleet reach 40 miles per gallon by 2020 and 55 miles per gallon by 2030.

Related Links
Climate Change Blog Analysis and Commentary: This blog post provides a brief account of the CAP green recovery plan and related links to related sources.
Green Recovery Plan Text: Here is the Green Recovery Plan with appendices as developed by the Center for American Progress.
Global Green Recovery Initiative (CAP): The Center for American Progress, in the spirit of the G-20 conference, releases a globalized version of the "Green Recovery" plan. The global green recovery proposes that the international diplomacy surrounding the global financial crisis should be coupled with a global commitment to progressive environmental reform.

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