Bush warns Congress against climate bill costs

02 June 2008 22:43  [Source: ICIS news]

WASHINGTON (ICIS news)--President George Bush warned Congress on Monday against a climate bill that he said would impose some $6,000bn (€3,800bn) worth of taxes on the US economy and consumers, indicating he would veto the measure.

 

“There’s a much better way to address the environment than imposing these costs on the economy, which ultimately will have to be borne by American consumers,” Bush said.

 

Bush spoke as the US Senate began consideration of S-3036, the America’s Climate Security Act, which would impose a mandatory emissions cap-and-trade system on US manufacturing, transportation, electric power and natural gas production and consumption.

 

The bill would put an immediate limit or cap on emissions of greenhouse gases (GHG) by those industrial sectors and auction emissions permits to industry that could be traded among individual firms whose operations emit less or more gases than allowed.

 

Estimates say that the permits auctions could raise as much as $6,700bn in tax revenue for the federal government.  The bill provides that half of those revenues would be given to low-income families to compensate them for increased energy costs that the legislation is expected to cause.  The balance would fund alternative energy research and development (R&D).

 

The measure is generally opposed by the US chemicals industry and the broad manufacturing sector because they fear it would trigger sharply increased demand for natural gas as electric utilities moved away from more emissions-heavy coal.  North American chemicals production is heavily dependent on natgas as a feedstock and energy source.

 

Bush has voiced support for federal funding for technology advances for clean energy.  But he said the Senate bill would raise US gasoline and electricity costs and raise taxes, squeeze household incomes and “demand drastic emissions cuts that have no chance of being realized and every chance of hurting our economy”.

 

The Senate was expected to vote approval on Monday on a procedural matter that will allow full debate of the climate bill to proceed.  That debate is expected to run through Tuesday and into Wednesday before a final vote is held later in the week.

 

A similar measure is to be introduced in the US House, but neither bill is expected to pass in the current Congress.  The debate is more likely to shape a foundation for a more detailed climate bill to be considered early in 2009 after a new administration is in the White House.

 

The bill previously was numbered S-2191 but has been redesignated S-3036 because of amendments added by its sponsors.

 

($1 = €0.64)

 

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By: Joe Kamalick
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