Addressing Climate Change Can Reduce the Deficit

The Boxer-Kerry Clean Energy Jobs and American Power Act is not primarily a budgetary measure, but the CBO’s just-released score of the bill confirms that it would have a modestly good impact on the deficit:

In total, those changes would reduce budget deficits (or increase future surpluses) by about $21 billion over the 2010–2019 period. (All estimated effects would be on-budget.) 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. Therefore, CBO estimates that enacting S. 1733 would not increase the deficit in any of the four 10-year periods following 2019.

I’m looking forward to deficit hawk Evan Bayh loudly supporting the bill, and deficit super-hawk Judd Gregg offering amendments to make the emissions reductions even steeper and therefore boost the deficit-killing power of this legislation.