A group of about 75 people learned about federal legislation aimed at reducing greenhouse gas emissions and how this reduction could increase costs for electric companies and their customers.

During the Sept. 16 meeting hosted by Graham County Electric Cooperative at the Eastern Arizona College, Tom Jones, chief executive officer of the Grand Canyon State Cooperative Association, explained key points of the legislation, including the impact to consumers.

The Congressional Budget Office estimates that HR 2454 — the federal legislation — will raise a family’s electric bill by $175 a year. This estimate does not include how the increased electric costs will impact the cost of other fuels, food and consumer goods, according to information distributed at the meeting. He also explained key points of the “cap and trade” legislation and why electric cooperatives and power companies are opposed.

Cap and trade is the term used for a system of regulating greenhouse gases, such as carbon dioxide. Each source of emissions, such as power plants, has limits placed on how much gas it can release. This is the cap.

Those emission sour-ces that release less then their caps can sell extra allowances to those who are not able to immediately make reductions. This is known as the trade.

If the U.S. Senate passes the bill and it is signed into law by President Barack Obama, cap and trade would start in 2012.

Greenhouse gases, such as water vapor, carbon dioxide, methane, nitrous oxide and ozone, absorb and emit radiation. Jones said the impacts of greenhouse gases are “wildly exaggerated.” He added that simpler, smarter and more efficient solutions are needed.

Jones, who also works as a lobbyist for Arizona’s electric cooperatives, said more important issues, such as hunger, poverty and disease, should be addressed before reducing greenhouse gases into the atmosphere.

Although the cap and trade legislation that addresses greenhouse gases has already passed the U.S. House of Representatives, the bill is “still fluid” and could be changed, Jones said.

The proposed cap and trade would work as follows:

• Set the goal. The legislation’s goal is a reduction of carbon dioxide to 17 percent below the 2005 level by 2020 and 83 percent below the 2005 level by 2050.

• Establish the cap. This will be done by establishing the total emissions of greenhouse gases from a designated group of emitters, such as power plants, manufacturers, smelters and transportation. The total will be capped based on current or reduced totals.

• The cap is allocated among emitters. The total cap is allocated among regulated facilities as “allowable emissions permits” that allow greenhouse gas emissions measured by tons per year. An alternative calls for part of the allocation to be auctioned by the government, and part of the allocation is free. Part of the proceeds from the auction would be used for research and development, reducing individual income taxes or providing energy rebates. The auction proceeds could also be used to reduce corporate taxes.

Visit www.ourenergy.coop or contact Jones at tjones@gcseca.coop or call 602-286-6925.