ENN Twitter
Industries Push for Free Pollution Credits
A growing number of industries are lobbying for free pollution permits under legislation capping greenhouse-gas emissions, in a potential threat to the funding for President Barack Obama's proposed middle-class tax cut.
A range of industries, including electric utilities, auto makers, and oil and natural gas refineries, are making their case to lawmakers ahead of a vote on proposed climate legislation expected this week by the House Subcommittee on Energy and the Environment. The jockeying has intensified in recent days after a push by electric utilities to secure up to 40% of the emissions permits for free, an amount that would be proportionate to their share of U.S. carbon-dioxide emissions.
The measure by Reps. Henry Waxman (D., Calif.) and Edward Markey (D., Mass.) calls for reducing U.S. greenhouse-gas emissions roughly 20% below 2005 levels by 2020 and 83% below 2005 levels by mid-century. It is largely silent on how much companies would have to pay for pollution permits under a proposed cap-and-trade system that would allow companies to buy and sell such permits.
ADVERTISEMENT
Mr. Obama has called for auctioning off 100% of the emission allowances and using the bulk of the revenue to fund tax credits for the middle class. His 2010 budget blueprint projects raising $645 billion from the auction of emissions permits between 2012, when the system kicks in, and 2019. A smaller portion would be devoted to research and development of low-carbon technologies. But Mr. Obama and some of his aides have signaled they are willing to compromise on giving away the pollution permits.