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Obama’s Budget to Count Revenue From ‘Cap-and-Trade’ Program President Barack Obama’s budget plan includes revenue from the sale of greenhouse-gas emission permits to polluters, putting new pressure on Congress to pass such legislation by early next year. The budget assumes at least $75 billion from a “cap-and- trade” program starting in 2012, said administration officials familiar with the document Obama will submit to Congress today. About $15 billion would be used for investments in “clean” energy, and about $60 billion would help finance a tax credit for some workers. Funds also would offset higher energy costs for low- and middle-income people, they said. Democratic leaders in Congress are being pressed to set a mandatory cap on carbon-dioxide pollution, which scientists say is causing rising temperatures and sea levels. “The Obama administration is now upping the ante for action in this Congress,” said Dan Weiss, director of climate strategy for the Washington-based Center for American Progress, a public policy group that supports Democratic policies. The cap-and-trade program favored by Obama would set limits on carbon-dioxide emissions and let companies trade pollution allowances on a market. Congress would have to pass legislation this year or early in 2010 for the system to be operating and providing revenue by 2012, said David Doniger, policy director of the Washington- based Natural Resources Defense Council’s climate center. Some companies, including General Electric Co., say they want a cap-and-trade program because it would spur investment in “green” technologies. The Congressional Budget Office estimates money generated from the sale of pollution credits may ultimately range from $50 billion to $300 billion a year. Bush’s Opposition Former President George W. Bush opposed such a measure, arguing that it would cost jobs and harm the economy. Senator James Inhofe of Oklahoma, the top Republican on the Environment and Public Works Committee, says a system capping emissions would cost taxpayers as much as $330 billion a year. Senate Majority Leader Harry Reid of Nevada and House Speaker Nancy Pelosi of California, both Democrats, have said they want to pass climate-change legislation capping emissions this year. Even though Democrats have majorities in both chambers of Congress, that doesn’t assure passage. The party splits regionally on climate-change initiatives, as lawmakers from rural districts and manufacturing and coal states seek to protect local industries and jobs, especially during the recession. Duke, BlackRock Support Along with General Electric, Obama has backing for a market-based cap from companies including Duke Energy Corp. and investors such as BlackRock Inc., the biggest publicly traded asset manager in the U.S. Environmentalists praised Obama’s willingness to put cap- and-trade assumptions in his budget plans. “Barack Obama had made this a priority during the campaign,” said Tim Greeff, deputy legislative director at the Washington-based League of Conservation Voters. “What this shows is President Obama has the full intention of coming through on this issue.” Source: Bloomberg News |
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