Obama signals budget flexibility over 'cap-and-trade' emissions program

In his White House press conference Tuesday night, President Obama defended his proposed 'cap-and-trade' emissions-trading plan aimed at tackling climate change and transitioning to 'a new energy economy.' (see St Petersburg Times coverage of speech)

The plan which is part of his federal budget, would have to take into account regional differences and cost spikes, he said (see transcript).

Obama has proposed auctioning carbon emissions allowances to raise at least $646 billion from 2012 to 2019. Some critics, including major companies that have supported a cap-and-trade system, now say the plan amounts to a tax increase. The burden would also fall unequally on those consumers who receive their power comes from coal-fired plants, which have the highest emissions.

Obama said Congress must pass a trading program that protects against over-burdening coal-powered energy producers and consumers.
Obama's budget includes specific emission limits and recommendations for how to distribute revenue generated through the cap-and-trade plan. But he recognized Tuesday that these are not set in stone. "Obama signaled that he could compromise in the short term on a middle-class tax cut and a cap on carbon emissions," The New York Times repoirted. “We never expected when we printed out our budget that they would simply Xerox it and vote on it,” he said, suggesting some flexibility about the details.

- David Adams, Times Staff Writer

Comments

[paminator]

Lets not forget Obama's words back in Jan 2008 at the SF Cronicle-

" When I was asked earlier about the issue of coal…under my plan of a cap and trade system, electricity rates would necessarily skyrocket…even regardless of what I say about whether coal is good or bad, because I’m capping greenhouse gasses, coal power plants, natural gas…you name it…whatever the plants were, whatever the industry was, they would have to retro-fit their operations.
That will cost money…they will pass that money on to the consumers."

He's simply following through on one of his 500+ campaign promises. Thanks to all who voted to triple electricity prices.

[Mark Finstein]

very informative

Mark
National

[Tino]

If you currently pay for an electric bill, you will get socked with a massive increase.

If you are getting free power because you are old, poor, or any other politically advantaged group, expect the freebies to continue...

[Tino]

A recent study takes apart the "green jobs" myth:

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a2PHwqAs7BS0

Obama's economists are not smart enough to figure out that making people spend an artificially high price for energy is bad. Bad for jobs, bad for consumers, bad for the economy.

And yet he pushes forward...