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Cut the Cap: Latta Warns Air Plan Will Cost Millions
Sunday, May 24, 2009 6:53 AM


(Source: The Lima News)trackingBy Bart Mills, The Lima News, Ohio

May 24--LIMA -- The debate over the proposed cap-and-trade bill has just begun, but some area leaders will tell you that, when it comes to the ill effects on Ohio, there's no debate.

As the argument over the proposal to reduce greenhouse gases by capping emissions waged in Washington last week, politicians and energy industry representatives beat the bushes locally to warn of the proposal's possible costs.

Rep. Bob Latta, R-Bowling Green, hosted a phone conference with regional reporters Thursday to discuss his view of the cap-andtrade idea. Like other Ohio representatives, including Rep. Jim Jordan and both Ohio senators, he's opposed -- strongly.

"That will just be absolutely crushing to our region. We're in tough straights right now," Latta said. "It's ludicrous for us to go down this path, and why the president and Democrats in Congress are doing it, I don't understand."

The basic idea behind cap-and-trade is that carbon releases by industry will be limited to set amounts. Plants and manufacturers will be given a certain number of carbon credits. If they don't use them all, they can sell them. Industries that release more carbon will end up paying for it. That includes coalburning energy plants, and Ohio gets more than 80 percent of its energy from coal.

Those companies will pass the expense on to customers, Latta said. He quotes estimates from national groups that place the cost of cap-andtrade at anywhere from $1,600 to $4,800 for the average family of four.

"There will be very, very high utility rates in the state. The utility companies are going to have to pass that on to their users. You put this all together, and it's going to have a devastating effect on us," Latta said.

Latta's predictions may be premature. Nolan Moser, air and energy program director for the Ohio Environmental Council, said the source and timing of Latta's numbers make them suspect.

"I've seen a lot of these numbers tossed around, and it's important to know that those numbers come from the Heritage Foundation, a conservative think tank with a political position, not necessarily an economic or environmental one," Moser said.

The constant changes to the bill as it makes its way through Congress make it all but impossible to predict what the ultimate impact will be, Moser said. But a quick look at the companies supporting the bill will tell you it's not likely to destroy the energy business.

"Take a look at the folks who are supporting this bill. The premise of the critics is that big companies that burn coal like AEP and Duke are going to be very negatively impacted by the bill. The facts just do not bare out because they have come out in favor of the bill," Moser said.

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Copyright (c) 2009, The Lima News, Ohio

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