Should the Export-Import Bank Not Finance High Carbon Intensity Energy Projects? (H.R. 2813)

What is H.R. 2813?

(Updated February 8, 2019)

This bill — known as the SADD Act — would prohibit the Export-Import Bank of the U.S. from providing financial support for high carbon intensity projects that generate electricity and produce at least 500 grams of carbon dioxide per kilowatt-hour of electricity generated (such as coal-fired power plants). The Export-Import Bank is the “official export credit agency of the U.S.” and gives American businesses financing tools to complete deals exporting their goods or services to other countries.

The bill’s full title is the Standing Against Dirty Diplomacy Act.

Argument in favor

The U.S. needs to help mitigate climate change, and not letting the Export-Import Bank finance high carbon intensity energy projects overseas is a step in the right direction.

Argument opposed

This bill would have a negligible impact on carbon emissions and make it harder for U.S. energy companies to get the financing they need to compete for major projects overseas.

Impact

U.S. energy companies; foreign electricity projects producing at least 500 grams of carbon dioxide per kilowatt-hour of electricity generated.

Cost of H.R. 2813

A CBO cost estimate is unavailable.

Additional Info

In-Depth: Sponsoring Rep. Jared Huffman (D-CA) introduced this bill to reduce America’s global pollution footprint and ensure that that taxpayer funds aren’t used to “promote a dirty energy agenda abroad”:

“President Trump’s hasty withdrawal from the Paris Agreement was a complete abdication of America’s leadership in the fight against carbon pollution and global climate change, allowing other nations to lead on clean energy investment while the United States lags behind. The dirty energy diplomacy supported by our top diplomat and Trump cabinet officials is further eroded by an Export-Import Bank intent on investing in 19th century fuels. While some in Washington pursue a dirty energy agenda at home and abroad, Congress can still take action to reduce carbon pollution. The Standing Against Dirty Diplomacy Act will help get America back on the right track: building a clean energy future by cutting off the billions of dollars we are wasting on dirty coal boondoggles abroad.”

Huffman told KRCR News that the Export Import Bank provided $900 million in financing for a 4,000 megawatt coal-fired power plant in India, and $800 million for a 4,800 megawatt coal-fired plant in South Africa.

Media:

• Sponsoring Rep. Jared Huffman (D-CA) Press Release
  
• KRCR News