T&E Item 3
Transportation, Infrastructure, Energy and Environment Committee
Amanda Mihill, Legislative
Faden, Senior Legislative Attorney
Bill 5-14, Environmental Sustainability
Social Cost of Carbon
Bill 5-14, Environmental Sustainability - Social Cost of Carbon Assessments, sponsored
by Councilmembers Berliner, Floreen, Riemer, EIrich, Andrews, and Navarro, was introduced on
January 28,2014. A public hearing was held by the Committee on February 11. At the hearing,
a representative of the Executive expressed the Executive's general support for the package of
environmental initiatives (©22).
Bill 5-14 would require the Office of Management and Budget to submit an analysis of
the social cost of carbon with certain capital projects in the Capital Improvements Program. The
use of conventional fuels, particularly coal, extracts a cost on society that is not reflected in its
price. These "external" costs should be factored into the cost/benefit calculations that the
County uses when
assesses the potential for energy efficiency improvements.
Councilmember Berliner explained the purpose of this Bill in his January 14
memorandum describing his proposed energy/environmental package (see ©23).
The Fiscal and Economic Impact statement for this Bill will be transmitted after March
17 (see ©4).
A fact sheet from the Environmental Protection Agency providing background
infonnation on the social cost of carbon, including how the values are detennined and the
process used to detennine the cost, is on ©5. The most recent social cost of carbon estimates for
certain years is on ©7.
First Committee worksession
At the Committee worksession on February 26, the Committee discussed with the
Executive Branch the challenges in applying a social cost of carbon analysis to new building
projects in the Capital Improvements Program. Chainnan Berliner explained his intent that Bill
5-14 not apply generally to new building projects. Rather, when the Department is reviewing the
energy efficiency of a County building, the Department should include the social cost of carbon