Answer: It's critically important if you don't want to fund unemployment benefits or other short-term, jobs-creating stimulus. On the other hand, If you want to shift the U.S. energy sector into the 21st century, the deficit doesn't matter that much. Viz:
Senate backers of a long-shot bid to pass legislation with greenhouse gas caps got some fresh help Wednesday when the Congressional Budget Office reported that one high-profile proposal would help curb the federal deficit by about $19 billion over the next decade ... But Kerry conceded last week that his bill as a whole has been abandoned as the main vehicle for moving an energy or climate package.
It would be nice if there were an "honest" deficit-reduction activist group that rated members of Congress based on whether they supported the majority of deficit-reduction legislation or just the deficit-reduction legislation that doesn't hurt the wealthy or corporate interests. (It's worth remembering that this legislation will have little effect on the average consumer, costing between $98 and $140 per household per year while providing for a needed transition to cheaper, cleaner energy.)
Indeed, as with the health-care bill, I'm sure the deficit hawks will refer to this bill by it's "cost" and will round up too -- the "$1 trillion health-care bill" ring any bells? -- rather than admitting that with savings and revenue, the entire package would represent a significant cutback in federal borrowing.
Give some credit to Sen. John Kerry for doing yeoman's work in Congress by continuing to push his energy bill forward, despite the lack of support from leadership and the broader Senate. While it may well be politically dead, ensuring that it is scored by the CBO and debated gives it more legitimacy as an idea and gives policy-makers a good fall-back in the future. Its best ideas may not make it into whatever shambles of an energy bill is passed this year, but when lawmakers revisit the issue in the future, this legislation will be there as a useful framework.
-- Tim Fernholz
