Thursday, May 7, 2009

Climate Bill: "Most emission permits to be free: U.S. Rep. Doyle"; Obama Still Counting On Auction Revenue

A threefer. First, from Reuters:
Most of the pollution emission permits that industry would need under a climate change bill being negotiated in the U.S. House of Representatives will initially be given to companies, instead of sold to them, Representative Mike Doyle said on Wednesday.

The Pennsylvania Democrat, who has been working on portions of the bill aimed at reducing U.S. emissions of carbon dioxide and other greenhouse gases, also told reporters that for the first 10 years to 15 years of the program, most of industry's permits would be free....MORE

From Bloomberg:

Waxman Said to Offer Free Permits in Climate Talks

U.S. Representative Henry Waxman, sponsor of a plan to cut greenhouse-gas emissions, is offering power producers and companies such as steelmakers free pollution permits, said people familiar with the negotiations.

Waxman, the Democratic chairman of the House Energy and Commerce Committee, made the proposal in an effort to win approval in his panel for legislation to establish a carbon- trading program, said the people, who declined to be identified discussing the private talks. The free permits may be worth as much as $40 billion a year, according to Mike McKenna, president of MWR Strategies, a policy consulting firm based in Washington....MORE

And back to Reuters:

White House: No changes to climate proposal in budget

White House budget director Peter Orszag said on Thursday the administration's budget would not make changes to President Barack Obama's climate change proposals.

Orszag made the remarks in a conference call to reporters.

He was asked whether budget details to be released next week would include 100 percent auctioning of permits to industry in a future greenhouse gas emissions trading system.

(Reporting by Jeff Mason; Editing by Doina Chiacu)


Obama budget still plans C02 permit sale to industry

U.S. President Barack Obama's budget still plans for 100 percent of permits in a future greenhouse gas emissions trading system to be sold to industry, a spokesman for the White House Office of Management and Budget said on Thursday.

Obama has shown some flexibility on the cap-and-trade proposal since releasing his initial budget blueprint in February, but a spokesman said there were no changes.

(Reporting by Jeff Mason, Editing by Sandra Maler)

There is a very odd disconnect here. I've got to run but I'll try to formulate what I think is going on. In the meantime here's a post from late March "To Senator Reid Cap-and-Trade is Just a Tax; But With the Advantages of Being Deceitful and Expensive"