Support for US climate bill seen to wane

06 June 2008 02:41  [Source: ICIS news]

PALM DESERT, California (ICIS news)--US popular support for climate control legislation pending in Congress has begun to wane, and passage of a draconian cap-and-trade emissions limits bill is less likely, a top chemical industry official said on Thursday.

 

Jack Gerard, president of the American Chemistry Council (ACC), told a press conference that “we’re beginning to see temporizing in Congress on the cap-and-trade legislation because more and more people are beginning to see the economic impact that the bill would have”.

 

The US Senate is this week considering a massive climate control bill, S-3036, the America’s Climate Security Act, that would put an immediate cap or limit on the emissions of carbon dioxide (CO2) and other greenhouse gases by US manufacturers, electric utilities, the transportation sector, refiners and natural gas producers.

 

The emissions caps would be lowered annually until the US reach a level 75% below its 2005 emission by 2050.  The bill would provide for the auction of emissions permits that companies would purchase to cover their release of greenhouse gases in excess of cap amounts. 

 

It is estimated that, if passed, the bill would raise some $7,000bn (€4,550bn) in federal taxes.  Most chemical producers and a wide spectrum of other US manufacturers oppose the bill because of the tax burden and because the measure would put further demand and price pressure on natural gas as a cleaner burning utility fuel.

 

Gerard said that as the economic impact of a cap-and-trade bill becomes more apparent to voters, support for the proposed bill in the US Senate is slipping.

 

“Just six months ago it seemed that proponents of the climate bill were within just one or two votes of the 60 votes needed to ensure its passage in the Senate, but now it looks like they have only 50 votes or less,” Gerard said.

 

Gerard said the council has been working at state level to help educate voters and their representatives about the economic costs of the climate bill, noting that Senator Sherrod Brown (Democrat-Ohio), once a solid supporter of cap-and-trade “is now not convinced that this is the way the nation should go” to deal with emissions.

 

“The public are starting to wake up to the fact that this climate bill will have energy and job costs,” Gerard said.  “When they’re asked if they think emissions controls are important, they say yes - but when they learn the costs, they say ‘but don’t raise our energy costs or taxes’,” he said.

 

Those concerns are being conveyed to members of Congress and have resulted in diminishing support for the climate bill, Gerard said.

 

He said the climate bill now pending in the Senate will not be passed this year and that a more serious and more balanced look at climate control legislation is likely in the new year after a new US administration is in place.

 

Gerard spoke at the council’s annual business meeting, where it was announced that he is leaving the trade group to head the American Petroleum Institute (API).

 

($1 = €.65)

 

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By: Joe Kamalick
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