A WATERED-DOWN Bill aimed at curbing greenhouse gas emissions and boosting the use of renewable and nuclear energy has been endorsed by US president Barack Obama.
The revised 987-page Bill, unveiled on Wednesday night by leading Democratic senator John Kerry and Independent senator Joe Lieberman also takes on board concerns over offshore oil drilling in the wake of the still gushing oil spill in the Gulf of Mexico.
Under its revised terms, drilling of the coast of any US state on the Atlantic or Pacific coasts – though, curiously, not the Gulf itself – could be “vetoed” by an adjoining state if there was evidence of “significant adverse ecological and environmental” risks.
Although the legislation ostensibly aims to reduce carbon emissions by 17 per cent by 2020 – not least in an effort to cut US dependence on imported oil, which makes up nearly 60 per cent of its consumption – it is unclear how this modest target would be achieved.
Unlike the Bill passed by the House of Representatives last year, the Kerry-Lieberman proposals include no economy-wide “cap-and-trade” system similar to the EU’s, aimed at bringing down emissions from coal-fired power stations and energy-intensive industries.
Instead, utilities with coal-fired plants – which are the biggest class of polluters – would get free pollution permits on condition that they used these to offset increased costs to consumers and invested in upgrading their plants to reduce carbon emissions.
Free distribution of the allowances would continue until 2030, after which power companies would have to buy the permits. Similarly, heavy industry would receive free permits to offset any increases in their energy bills, with “transition assistance” until 2036.
Oil companies and the transportation sector would purchase credits from 2013 onwards on a quarterly basis and at the market price, but there would be no trading in these sectors because they would be effectively excluded from the open market for pollution permits.
The American Petroleum Institute was withholding judgment until it analysed the measure’s likely effects on the oil and gas industry. But some oil companies – including BP, which is still trying to stop the Gulf of Mexico oil spill – have indicated their support.
The nuclear industry has wholeheartedly embraced the Bill – not least because it stands to gain government loan guarantees, tax credits and federal risk insurance to cover the costs of construction delays caused by lawsuits and/or red tape in approving new plants.
“We’re threatened by the impacts of a changing climate,” Mr Kerry said. “And right now, as one of the worst oil spills in our nation’s history washes onto our shores, no one can doubt how urgently we need a new energy policy in this country. Now is the time to take action.”
Mr Obama also referred to “the immense tragedy” in the Gulf of Mexico as a reason to “redouble our efforts to reform our nation’s energy policies. For too long, Washington has kicked this challenge to the next generation. This time, the status quo is no longer acceptable”.
However, there is no indication that the Bill he co-sponsored will get to the floor of the Senate this year – or that it will garner the required 60 votes to forestall a Republican filibuster; one of its earlier co-sponsors, Republican senator Lindsey Graham, is no longer backing it.
