The House has just passed comprehensive energy and climate legislation.  The cornerstone of the bill is the establishment of a “cap-and-trade” system to reduce the emission of greenhouse gases, but the 1,200 page measure contains numerous other provisions including setting national standards for how much electricity is generated from renewable energy sources.

Many of the riders in the bill were added to appease wary lawmakers in order to attract their vote.  Almost all of the negotiating occurred between Democrats with little input from Republicans and, as the Washington Post notes in an editorial today, few if any legislators likely read the entire bill before voting on it.  This typical Capitol Hill horse trading and maneuvering secured a narrow majority for the bill in the House and put the ball in the court of the Senate, where the game is expected to be even tougher. 

While the tried and true Washington tactics of arm-twisting and incentives produced a victory in the House, the ultimate success of transforming our energy and climate policy will depend on the ability of policymakers to catalyze innovations being undertaken by the private sector, collaborate in a constructive and bipartisan manner, and demonstrate leadership in reaching out to voters on a complex issue.  This will require the sort of change that President Obama promised during the campaign and that was so enthusiastically embraced by the electorate.

There is little doubt or disagreement that comprehensive energy reform is desperately needed in the United States.  Reform is necessary for the sake of the economy, national security, and energy and environmental sustainability.  However, the current debate has been sorely lacking in seeking sensible solutions in a bipartisan manner and in educating the American people.

President Obama has yet to truly bring his considerable oratory and persuasive skills to bear in engaging the public.  Much of his outreach so far has centered on the “green” jobs the legislation will create.  While new jobs in sectors related to clean energy will be created, jobs in other areas will be lost.  Although making the jobs argument in the current economic environment makes sense from a political perspective, it oversimplifies and outright ignores the fundamental issues involved.

Policymakers should be honest with Americans about the need for reform and what it will actually mean.  The fact is that drastic change will occur down the road whether legislation is passed or not.  Our current patterns of energy production and consumption are simply not sustainable either from an economic, energy or environmental standpoint.  While reform will likely incur higher energy costs in the short term, doing nothing will cost more in the long run as rapidly growing economies such as China and India compete with us for diminishing global reserves of fossil fuels like oil. 

The U.S. has always adapted to change best when it has taken the lead.  Being proactive will provide the U.S. a competitive advantage in developing, implementing and marketing innovative energy and climate solutions.

Energy from alternative sources such as wind, solar and nuclear is currently more expensive than that from fossil fuels; a significant portion of that difference is due to the fact that the full cost of fossil fuels is not reflected in its price.  The environmental degradation and security risks posed by our extreme reliance on fossil fuels from foreign sources represent a sizable cost.  Factoring in the cost of carbon through a market-based mechanism such as a cap-and-trade system will reveal the true cost of our current energy regime and make alternatives more competitive.  The economic impact of higher costs should be mitigated by allowing families and businesses to reap the benefits of energy efficiency and conservation initiatives and providing assistance in implementing such efforts.

Fostering increased use of alternative and renewable energy will enhance America’s energy resilience by creating a more diverse energy supply that is less susceptible to disruption.  It will also reduce greenhouse gas emissions.  However, the transition to renewables cannot occur overnight.  In the meantime promoting the use of domestic resources will be necessary to reducing reliance on foreign oil and containing energy costs.  Improving the cost competitiveness of renewables and enhancing the electrical power grid towards a smart grid to facilitate their increased use will do more to boost their use than any government mandates.

As the critical energy and climate debate advances our leaders must do more to engage each other and the general public constructively in producing real reform.