Apr. 17--An energy bill in the U.S. House of Representatives would impose limits on carbon emissions from utilities and industries in an attempt to slow global warming. But Keith Busse, chairman and CEO of Steel Dynamics Inc., and U.S. Rep. Mark Souder, R-3rd District, warned that clamping down on carbon could extinguish key industries in this region.

During an hour-long discussion with reporters at SDI's Fort Wayne headquarters, Busse and Souder criticized many aspects of the "cap-and-trade" approach to cutting emissions. Their fundamental attack: Now is a terrible time to rush into environmental legislation that could impair so many manufacturing industries.

"The rush to judgment before we find out all the facts is goofy," Souder said.

It could permanently diminish American industrial capacity, Busse said, and that would weaken the entire country. "I don't think you can have a vibrant society unless you make things," he said.

The Waxman-Markey legislation, named after its authors, Democrat representatives Henry Waxman of California and Ed Markey of Massachusetts, aims to simultaneously slow the pace of global warming and shift the United States toward greater use of renewable energy. Its supporters say that reducing U.S. reliance on fossil fuels and averting swift climate change are vitally important to American security.

Souder, a Republican, dismissed as naive the idea that renewables -- such as wind or solar power -- could be ramped up quickly enough to preserve power-intensive industries in northeast Indiana.

Busse said it could double the cost of the electricity his plant depends on. Souder said it would imperil the steel industry and raise costs in the auto and recreational vehicle industries the area depends on.

Imposing limits on carbon emissions that raise the cost of electricity would hit Indiana hard, because 95 percent of the state's power is generated by coal-fired electrical plants. But advocates of a cap-and-trade system say that the right federal system -- and a nimble response by political and business leaders in Indiana -- could create opportunities under cap-and-trade.

Those advocates frequently cite the possibilities of new manufacturing in green industries, such as wind or solar power; investment in clean-coal technology, including multibillion-dollar spending on utility plants; and construction opportunities in energy conservation and re-creating the nation's electrical grid.

Some supporters of a cap-and-trade system propose using money businesses pay to purchase emissions allowances to soften the impact on specific regions, industries or economic classes. But Kenneth Richards, associate director of the Lugar Center for Renewable Energy at Indiana University, says it would be a mistake to earmark proceeds from selling emissions allowance. If those are used to subsidize the cost of electricity, it reduces the incentive for individuals and businesses to use less electricity or to produce it more cleanly.

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