Globaloney

Washington Times | Nov. 11 2007

A misguided environmental-policy bill meandering through the Senate would slap U.S. businesses with pie-in-the-sky requirements for cutting greenhouse gases by unattainable amounts.

The proposed bill introduced by Sens. Joe Lieberman, Connecticut independent, and John Warner, Virginia Republican, would require companies to scale back greenhouse-gas emissions to 2005 levels by 2012 and 1990 levels by 2020. Over the longer haul, the bill would mandate a 65 percent reduction in greenhouse emissions from 1990 levels by 2050. Companies that wish to exceed the greenhouse-gas limits would be allowed to purchase credits from companies whose emissions meet the standards, purportedly to offset their environmental impact.

Titled the “America’s Climate Security Act,” the bill’s end results would cause serious damage to our economic security and at best have a negligible impact on the world’s rising greenhouse-gas emission levels. It also does nothing to boost nuclear-energy development, one of the cleanest and most efficient energy sources. The bill fails to compensate and protect consumers from rising natural gas prices and harms job security by encouraging companies to move overseas to nations with less draconian standards. In short, the bill’s effects would land a crippling encroachment on U.S. power plants, factories and transportation sectors.

One analysis by CRA International estimates the Lieberman-Warner bill will cost $4 to $6 trillion over 40 years. The American Council for Capital Formation has concluded that the legislation’s emissions-swapping scheme would lead to “higher energy prices, lost jobs and reduced [gross domestic product].” During testimony before a House committee, Peter Orszag, director of the Congressional Budget Office (CBO), stated that such swapping programs known as “cap-and-trade” would create “windfall” profits — profits that have even been denounced by presidential candidate John Edwards. The CBO has also cautioned that “price increases would disproportionately affect people at the lower end of the income scale.” It is baffling that congressional Democrats, who never cease to spout their populist rhetoric, are ignoring such a clarion call for ensuring economic stability among low and middle-income families.

. . . more

Facebooktwitterredditpinterestlinkedintumblrmail