Capitol Hill

The term "climate change" typically refers to global warming, which many believe is caused primarily by greenhouse gas emissions, carbon dioxide in particular. Congress is working to regulate climate change, and there are substantial implications for the roofing industry.

A great big tax

In April, the House Energy and Commerce Committee began consideration of a 648-page draft of the American Clean Energy and Security (ACES) Act, which includes energy sections and sections addressing climate change through a proposed "cap-and-trade" system.

A cap-and-trade system basically entails carbon rationing. The federal government would place a cap on how much carbon dioxide could be emitted in the U.S. annually and set emission caps for businesses. This would be followed by an auction of emission credits to businesses that emit more than their caps, generating revenue for the federal government. Businesses could buy and sell credits.

The administration's budget for fiscal year 2010 anticipates $646 billion in revenue from cap-and-trade during eight years, but others say it will cost industry close to $2 trillion.

Also, the National Association of Manufacturers projects 3 million to 4 million jobs would be lost by 2030, and the U.S. Environmental Protection Agency (EPA) estimates a gross domestic product decline of $2.8 trillion by 2050, which is low compared with other estimates.

These numbers and others explain why the Senate is merely considering an energy bill for now.

EPA developments

The administration's trump card may be the EPA because the U.S. Supreme Court ruled in 2007 that the Clean Air Act authorizes the EPA to determine whether carbon dioxide emissions endanger public health (see "EPA causes alarm," January issue, page 24). NRCA and many other organizations urged the EPA not to reach an endangerment finding using the 40-year-old statute, but the EPA did so April 17, and the administration now is threatening to trigger a series of federal regulations unless Congress takes action.

These regulations could halt building construction because buildings account for 30 to 40 percent of carbon dioxide emissions. A U.S. Chamber of Commerce study finds 1.2 million buildings would be subjected to prohibitively expensive and time-consuming permits while millions of other buildings, plants and farms would become regulated emissions sources.

Regardless, the EPA released a proposed regulation March 10 that would require all economic sectors to report their greenhouse gas emissions. The 1,410-page proposal would require some 13,000 facilities to comply, and it appears roofing materials manufacturers would be included. Data collection would begin Jan. 1, 2010, with the first reports submitted to the EPA by March 31, 2011.

Cool roofs

The climate change debate should not obscure energy-efficiency language in the original ACES Act draft that would have major effects on roofing. Specifically, the act would essentially mandate white or cool roofs for all structures, including reflectance levels and—in some instances—materials to be used.

NRCA, the International Code Council and other stakeholders have been working to change the language so it would generate performance-oriented standards through a more conventional code-setting process. Also, at press time, the draft energy bill in the Senate contains no prescriptive language for energy-efficient roof systems.

Of vital importance

The congressional debate regarding climate change legislation and whether the EPA triggers regulations of greenhouse gas emissions and carbon dioxide is vitally important to the roofing industry.

NRCA's Washington, D.C., office will continue to work with stakeholders and congressional staff to generate the most favorable outcome for the roofing industry.

Craig S. Brightup is chief executive officer of The Brightup Group LLC, Washington, D.C.