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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 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. However, 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.
Source - The Irish Times
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