Senate Panel Climate Hearings Proceed In Face of New Attacks
By Siobhan Hughes, Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- U.S. Senate Environment and Public Works Committee
Chairman Barbara Boxer, (D., Calif.), on Thursday, pressed ahead with a third
day of hearings on climate legislation in the face of new attacks on the
measure.
Sen. Jim Inhofe, (R., Okla.), demanded a more thorough analysis of the
legislation before the committee begins the process of modifying and approving
the bill. Sen. George Voinovich, (R., Ohio), blew up at Boxer, saying that
forcing polluters to pay for greenhouse-gas emissions would result in a massive
transfer of wealth from some parts of the country.
"California is going to make out like a bandit with this legislation,"
Voinovich complained. "To jam this thing through here is not going to be good
and America is going to be very, very upset about it."
Tempers are flaring amid uncertainty about the regional effects on capping
greenhouse-gas emissions. Under the legislation, companies would have to hold
government-issued permits allowing them to spew carbon dioxide and other
greenhouse gases, which scientists have linked to climate change. Only a limited
number of permits would be issued, with fewer offered over time.
Manufacturers, which rely on coal-generated power, and coal producers would be
among the hardest hit under such a policy. Coal is a cheap source of electricity
in the U.S., accounting for almost half of U.S. electricity generation. But
coal-fired power is also a major source of greenhouse-gas emissions. The
legislation is designed to help hard-hit industries, handing out free allowances
to factories and for the development of "clean coal" technology to remove
carbon-dioxide from emissions.
Sen. Max Baucus, (D., Mont.), whose Senate Finance Committee has jurisdiction
over some parts of the bill, said he supported measures that would provide
billions for "clean coal" technology. That, and other measures setting
performance standards for power plants, "are one example where the middle lies
on climate legislation." Baucus said he hoped to "mirror" that success in other
parts of the bill.
Under the Senate bill, greenhouse-gas emissions would decline 20% below 2005
levels by 2020 and by more than 80% by 2050. Coal-state Democrats such as
Baucus, as well as many businesses, believe the near-term goals are too
ambitious and want Boxer to pull back. The concern is that "clean coal"
technologies such as carbon capture and sequestration will not be commercially
available at a time when deep emissions reductions take hold.
"This bill kills the coal industry," said Mike Carey, president of the Ohio
Coal Association. "Simply throwing some funding at CCS is not going to make the
technology available prior to 2020 or 2030."
Exelon Corp. (EXC) Chief Executive John Rowe, who supports climate
legislation, had some similar concerns.
"We do not expect substantial deployment of either new nuclear generating
stations or new coal generation stations with carbon capture and sequestration
in a time frame that will achieve the results mandated by the draft," Rowe
testified. He called for reducing emissions 14% by 2020, rather than 20%.
Republican frustration threatens to slow down action because Inhofe, the
ranking Republican on the panel, has threatened to block a vote unless more
analysis is provided on the bill. Democrats say Republican criticisms are
without merit.
-By Siobhan Hughes, Dow Jones Newswires; 202-862-6654; Siobhan.Hughes@
dowjones.com
(END) Dow Jones Newswires
10-29-091118ET
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