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President Talks Climate Change, 'Cash for Clunkers,' with House Democrats
May 05, 2009 1:49 PM
ABC News' Jake Tapper and Sunlen Miller report:
President Obama signaled a willingness to compromise on major environmental legislation, a key House Democrat said today.
The president held a private meeting in the State Dining Room Tuesday morning with Democratic members of the House Energy and Commerce Committee, after which members of the committee spoke to reporters.
The most contentious issue in the Climate Change bill -- on track to be voted on in the House this year, House Energy and Commerce Committee, Rep. Henry Waxman, D-Calif., said -- is a "Cap and Trade" system.
In "Cap and Trade," the federal government would limit the amount of carbon emissions permitted, and require companies to bid in an auction for permits to emit greenhouse gases.
Eventually the government would lower the amount of credits available. Firms that reduced their emissions below the required level could auction leftover credits to other polluters.
Some power companies have been lobbying for the administration to initially give free allowances to some utility companies, so as not to drive consumers' utility bills too high.
The president has previously stated that his preferred approach was a "100 percent auction," with some Democrats discussing giving tax rebates to consumers adversely impacted.
Asked how President Obama today received suggestions to allow free allowances, Waxman said that the president "wants us to try to work out our bill. And he’s giving us a lot of latitude to do that. He wants us to move. He wants legislation."
When a reporter suggested that such a move would be contrary to the president's budget, which counts $645 billion in tax revenue raised from "Cap and Trade" fees, Waxman said, "I wouldn’t say it’s contrary. He wants us to get to a point where we’re going to have an auction and eventually we will look into an auction."
Waxman said that off-shore drilling expansion was also discussed during the meeting, though the president had previously stated his opposition to such drilling.
The group of House Democrats said they made progress on one key provision of the Climate Change bill: so-called "Cash for Clunkers" legislation.
"Once in a while when you're in Congress, you do something that really matters in people's lives," the president said in the meeting, participants recounted, referring to the compromise worked out on "Cash for Clunkers."
Amidst some disagreements between more environmentally-conscious members of the committee, and those from Michigan and other Rust Belt states, a collaborative agreement was reached today, Rep. Betty Sutton, D-Ohio, the author of the original bill, told ABC News.
Under the new agreement, consumers will be able to trade in a "clunker" -- a car that gets 18 miles per gallon or less -- for a voucher for a new fuel-efficient car. The amount of the voucher will range from $3,500 to $4,500, depending upon the fuel efficiency of the new vehicle.
"Cash for Clunkers" legislation will likely be folded into a larger Climate Change bill, which Waxman said is on schedule to pass the House this year.
"We are determined to pass a bill by this year and our committee is on a schedule to complete the markup on the legislation by Memorial Day recess," Waxman said. "The president said that he wants legislation, he wants us to move as quickly as possible. He said this is an opportunity to move and we ought to take this opportunity."
Waxman said that the environmental legislation will not interfere with the health care reform bill, which President Obama has suggested is a higher priority.
Asked how the committee plans on dealing with requiring polluters to reduce carbon emissions, he said, "the proposal for dealing with the carbon emissions is to put a cap on the amount of emissions that will be reduced over the years and within that cap we will have market-based system to promote innovation to reduce our reliance on carbon energy."
Republicans and some Democrats suggest that the costs to corporate America of any fee on pollutants -- what's called "Cap and Trade" -- will be passed on to consumers, constituting a hidden tax. (House Republicans are even doing their own count of Democratic Senators and Members of Congress who have expressed concerns about the bill.)
Waxman said the burden on consumers and particular regions would be factored into the legislation.
"It’s going to require during that transition of period of decades for the Congress to deal with the cost to consumer and the cost to different industries and the development costs of the new technologies, and the allocations of the credits under the cap and trade bill."
The California Democrat added that the committee members "are trying to be mindful of the regional concerns and the rate-payers particularly, the consumers, and that’s the purpose of our legislation and we’re going to maintain the integrity of that." He said the committee aims to protect the "rate-payers, the public, and to ameliorate the harm that may come to any region of the country that might be affected by the cap because of their industry."
As for that other legislative body, the Senate, where Cap and Trade would have a more difficult time surviving a vote, Waxman said "the Senate is waiting for us to put together a consensus with the business community and the environmental community. ... We think we have the ability to get that kind of consensus."
Consensus among Democrats in the House Energy and Commerce Committee, said Rep. Ed Markey, D-Mass., is no small thing.
"If we can reach agreement with the coal sector, with the steel, with the auto sector, with the refining sector on our committee which is very representative of the Congress on the whole, then we believe that will be a template for passage in the Senate as well."
Take the varied voices on Cash for Clunkers, for instance.
"We had to decide how green these cars need to be to get that credit," environmentally-focused Rep. Jay Inslee, D-Wash., told reporters.
"It's a good agreement," agreed former committee chairman Rep. John Dingell, D-Mich., a leading protector -- some say enabler -- of the U.S. auto industry. "It means sales of autos, it means fuel efficiency and it means progress."
-- Jake Tapper and Sunlen Miller
May 5, 2009 | Permalink | Share | User Comments (83)
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i dont have a car because i cant afford one, can i have $4500 to buy one of the clunkers?
Posted by: eltb | May 8, 2009 1:04:02 PM
“His administration has spent, lent or guaranteed $12.8 trillion in taxpayer dollars to Wall Street and insolvent banks . . . Brand Obama has allocated nearly $1 trillion in defense-related spending and the continuation of our doomed imperial projects in Iraq, where military planners now estimate that 70,000 troops will remain for the next 15 to 20 years. . . Brand Obama has refused to ease restrictions so workers can organize and will not consider single-payer, not-for-profit health care for all Americans.”
America, we warned you. Barack Obama never was and never will be an agent of change in Washington. He is, always was, and always will be a hologram of leadership manufactured by Machiavellian Marketeers who want nothing more than to continue the de-democractization of the United States begun by Ronald Reagan. The lesson the Machiavellian Marketeers who fix elections for their corporate donors learned from the Bush era is that if the messenger eventually becomes a person reviled by the masses, as George W. Bush became, you don’t have to change the message. All you have to do is change the Messenger.
Posted by: GET the message! | May 6, 2009 11:42:13 AM
Yes I agree. During a recession, when jobs are being shipped overseas and unemployment rates are up. Now would be a FANTASTIC time to increase the average household utility expenditure $2000-3000 a year.
Oh Mr. President you are frickin Genenius. Why didn't I think of that.
Oh and that man made global warming thing is completely undebatable (or it will be if Al Gore gets his way)
Naive little me, I really thought that maybe the earth has cycles, kinda like a previous ice age and tropical fossils in dry areas and vice versa. Oh and I was under the impression that sun spots are affecting the temperatures of the other planets in our solar system. They seem to be increasing a little all their own without man. But what do I know?
Posted by: Mrs.Plasticman | May 5, 2009 11:58:33 PM
The 2009 Green Outsourcing Report, an annual industry study conducted by Brown-Wilson Group, found that green technology jobs are being created faster in India than in the US since Obama took office.
The report, which was released two weeks ago, surveyed 4,000 businesses around the world, including Xerox, Accenture, IBM Global, CSC, Capgemini, Oracle, HP/ ED S, Aramark, SITEL and Perot. Doug Brown, co-author of the Green Outsourcing Report, told The New Indian Express, “We see the (green job offshoring) trend increasing. There are few suppliers who match credentials and outcomes of Indian firms.”
Soaring energy costs and regulatory pressure have put pressure on firms in the US and Europe to embrace green technologies. 84% of companies outsourcing green jobs are doing so because of skyrocketing energy costs, compared to 12% and 18% in the past few years, respectively. Most corporations seeking to outsource a service or product require impeccable green credentials in their suppliers before handing over work, the report says.
US corporations, focusing on survival strategies during the long-lasting recession, have offshored more than 22,000 new green-collar jobs to India alone. Firms seeking stabilized energy and labor costs while trying to convince consumers of their eco-friendly practices are more often turning to Indian green-collar workers than American ones, according to Brown-Wilson Group.
Posted by: Chuck | May 5, 2009 11:03:21 PM
"Spain’s unemployment rate rose to 17.4 percent in the first quarter, more than double the European Union average. And it's continuing to surge upward. Green jobs didn't save their economy. Sorry."
Yes forget that study I posted was debunked, let's move the goalposts!
Posted by: Ryan C | May 5, 2009 8:20:01 PM
Spain’s unemployment rate rose to 17.4 percent in the first quarter, more than double the European Union average. And it's continuing to surge upward. Green jobs didn't save their economy. Sorry.
Posted by: Chuck | May 5, 2009 8:03:22 PM
"Study of the Effects on Employment of Public Aid to Renewable Energy Sources"
Two weeks ago, José María Roig Aldasoro, Regional Minister of Innovation, Enterprise and Employment Government of Navarre rebutted Calzada’s claims in a letter arguing that that green investment “has created wealth, employment and technological development” in Spain. Navarre is a small region of Spain that is well-known throughout the world for its development in renewable energies. After 20 years of development, 65% of the electrical energy consumed in Navarre originates from renewable energies.
Aldasoro breaks down the actual history of green job creation in Navarre:
– 1994: Unemployment at 12.8%, first wind farm erected.
– 1998: Unemployment at 10%, 100 installed megawatts of wind power.
– 2001: Unemployment at 6.8%, two R&D and worker-training centers are opened.
– 2007: Unemployment of 4.76%, total of 100 new renewable-energy companies created, representing 5% of total GDP.”
Posted by: Ryan C | May 5, 2009 7:43:36 PM
"It is actually. So please help me figure out how much co2 in the atmosphere is needed to cause death as quickly as drinking a glass of hydrocyanic acid."
I was making an analogy between how effective hydrogen cyanide was as a toxin compared to how effective CO2 is as a greenhouse gas, not it's toxicity. Let me try another related to heat: If you're driving home from the pub and get pulled over and blow a .116 how much hot water would you get in?
Posted by: Skip | May 5, 2009 7:24:29 PM
Cash for clunkers was dreamed up by Bruton Smith as a way to get his Sonic Automotive group to make money. The program is as ridiculous and wasteful as it sounds. Check out the details.
Posted by: NPage | May 5, 2009 7:09:55 PM
No, .116% isn't necessarily small. How many tons of CO2 does that equal in the entire atmosphere and how effective is that amount as a mechanism for warming it?
Math must be hard.
==================================
It is actually. So please help me figure out how much co2 in the atmosphere is needed to cause death as quickly as drinking a glass of hydrocyanic acid.
Posted by: mad | May 5, 2009 7:07:31 PM
In a recent study named "Study of the Effects on Employment of Public Aid to Renewable Energy Sources", the authors examined Spain’s efforts to create “green jobs” through subsidies for renewable energy. They found that these subsidies have harmed Spain’s economy, destroying 2.2 jobs for every 1 job created. This study demonstrated how “green jobs” policy clearly hinders Spain’s way out of the current economic crisis, even while U.S. politicians insist that rushing into such a scheme will ease their own emergence from the turmoil. The paper marks the very first time a critical analysis of the actual performance and impact of “green job” policies have been made.
The following represent some of the study’s key findings:
- The U.S. can expect 2.2 jobs to be destroyed for every 1 renewable job financed by the government.
- Only 1 in 10 of the jobs actually created through green investment is permanent.
- Since 2000, Spain has spent €571,138 ($753,778) to create each “green job,” including subsidies of more than €1 million ($1,319,783) per wind industry job.
- Those programs resulted in the destruction of nearly 113,000 jobs elsewhere in the economy.
- Each “green” megawatt installed destroyed 5.39 jobs in non-energy sectors of the Spanish economy.
- The total over-cost—the amount paid over the cost that would result from buying the electricity generated by the renewable power plants at market prices—between 2000 and 2008 amounts to 7,918.54 million Euros ($10 billion).
- The total subsidy spent and committed to these three renewable sources amounts to €28,671 million ($36 billion).
- Consumer energy costs in Spain would have to be increased 31 percent to repay the debt generated by the green jobs subsidies.
Adding insult to injury, according to the U.S. Energy Information Administration (EIA), Spain’s annual emissions of carbon dioxide have increased by nearly 50 percent since the nation began its aggressive push to subsidize and support “green jobs.”
Posted by: Chuck | May 5, 2009 6:42:28 PM
"CO2=hydrocyanic acid?
chemistry is hard..."
No, .116% isn't necessarily small. How many tons of CO2 does that equal in the entire atmosphere and how effective is that amount as a mechanism for warming it?
Math must be hard.
Posted by: Skip | May 5, 2009 6:34:59 PM
I wonder if you would hesitate to chug down a glass of water that has only .116% hydrogen cyanide in it.
============================
CO2=hydrocyanic acid?
chemistry is hard...
Posted by: mad | May 5, 2009 6:29:59 PM
I'm all for conservation of natural resources and attempting to contain population growth, but instead of focussing on those issues, we are handed a distraction in the form of climate change/global warming/the coming ice age, or whatever they're calling it this week. Whatever you call it, it's a sham.
Cap & trade is a shakedown. As with Al Gore, if these people want any credibility at all, they should recuse themselves from profitting from the process...but they won't because personal profit and control over other people's behavior is their only true motivation.
Posted by: paul | May 5, 2009 6:15:36 PM
ROFLMAO!
======================
I hope you don't get hurt rolling on the floor so may times a day.
Posted by: mad | May 5, 2009 6:13:59 PM
"For example, total co2 in our atmosphere is only 3.618%. Of that, 3.502% occurs naturally. Man is responsible for a mere .116%. Shocking I know."
So I guess the point being made here is that .116% isn't very much huh? I wonder if you would hesitate to chug down a glass of water that has only .116% hydrogen cyanide in it.
Posted by: Skip | May 5, 2009 6:09:04 PM
"There once was a scientific consensous that the world was flat, the sun rotated around the earth and the earth was the center of the galaxy."
ROFLMAO!
That was religious consensus.
"
No doubt, right-wing religious consensus.
Posted by: Foghorn Leghorn | May 5, 2009 5:54:23 PM
"Science is actual observed data...blah blah blah."
Curious that your definition of science makes no mention of proving out the theory that your observations led you to (as was done with vacine technology, and computer technology, and turbine design).
Posted by: Foghorn Leghorn | May 5, 2009 5:49:59 PM
Red:"For example, total co2 in our atmosphere is only 3.618%. Of that, 3.502% occurs naturally. Man is responsible for a mere .116%. Shocking I know.
Maybe I should repeat that, just incase anyone missed it.
Man's total co2 in our atmosphere is .116%"
Please cite your source since you are incorrectly paraphrasing it. Currently, CO2 levels are at about 390 ppm. Direct measurements (bubbles recovered from ice cores) show that is over 20% higher than in the last half million years. At the start of the Industrial Revolution they were 270 ppm.
Posted by: jhw539 | May 5, 2009 5:43:08 PM
I'll help him out...
1500 years ago, everybody knew that the Earth was the center of the universe. 500 years ago, everybody knew that the Earth was flat.
And 15 minutes ago, you knew that humans were alone on this planet. Imagine what you'll know tomorrow.
K
Posted by: K | May 5, 2009 5:36:03 PM
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