CBO: Kerry-Boxer climate bill creates $21B SURPLUS!

CBO: Kerry-Boxer climate bill creates $21B SURPLUS!

by RLMiller

Remember that horribly expensive Kerry-Boxer climate bill? The bill that would cost billions? Remember the bill that caused the seven Republicans on the Environment & Public Works Committee to righteously boycott it because they ostensibly lacked information about its costs, and couldn't possibly consider it for five weeks while awaiting budget scoring?

No?

Neither do I. The Congressional Budget Office has just scored Kerry-Boxer as creating a budget surplus of $21 billion over ten years. I now expect to see a rush of Republican support for the bill, right about...

now...

(crickets)

now...

(chirping)

what, Republicans only care about costs when it suits their political purposes? I'm shocked!

The CBO has the official score (31 pg pdf). To summarize, the bill creates federal revenues of $854B, and costs of $833B -- mostly from giving carbon allowances to states and other entities free of charge -- over the ten year period, for a net surplus of $21B. Further, the savings will continue past 2019: "In years after 2019, direct spending would be less than the net revenues attributable to the legislation in each of the 10-year periods following 2019." The CBO score assumes that the value of the carbon allowance market will be $80B in 2012. The CBO report also notes that its score of Kerry-Boxer is similar, but not identical to, its scoring of the Waxman-Markey bill that passed the House in June.

CQ Politics has a short post on the CBO score. I apologize for a short BREAKING! type diary, but this good news should be shared.

Tomorrow, a a group of Republicans opposed to EPA regulations of greenhouse gases, including Lisa Murkowski, James Inhofe (who suddenly can't be bothered to take his Truth Squad to Copenhagen -- apparently he and Truth aren't on speaking terms), and Lindsey Graham will hold a press conference. Since they're all so terribly concerned about the federal deficit and the cost to American families, the purpose of this conference must be to announce their wholehearted support for the Kerry-Boxer bill...right, Republicans? Further, the Republicans who boycotted the E&PW committee hearings in November will be groveling before Senator Boxer to apologize for their baseless boycott of committee hearings? We're waiting, Senator Inhofe!

This positive CBO scoring should keep the climate bill moving through the Finance, Agriculture, and Commerce committees beginning early January.