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Climate Bill Stokes Business Debate
Monday, October 05, 2009 5:50 PM


(Source: Pittsburgh Post-Gazette)trackingBy Daniel Malloy, Pittsburgh Post-Gazette

Oct. 5--WASHINGTON -- While introducing her climate change bill Wednesday, Sen. Barbara Boxer, D-Calif., told a cheering crowd in front of the U.S. Capitol, "we have expanded our coalition in the business community."

In Pennsylvania, that coalition includes businesses that stand to benefit, such as energy-efficient windows manufacturer Serious Materials and wind turbine maker Gamesa.

But heavy industry concerns in Western Pennsylvania, including U.S. Steel, Alcoa and Consol Energy, expressed varying degrees of dismay and fear last week at what the Clean Energy Jobs and American Power Act could mean for their businesses -- and for energy consumers.

The bill, similar to House of Representatives legislation that narrowly passed in June, sets aggressive deadlines for greenhouse gas reductions and creates a cap-and-trade system in which a price is set to emit carbon above a certain level and the right to do so is traded in a newly created market for big polluters.

The result, according to foes of the bill, will be higher energy prices and job losses when utilities scale back because of increased costs.

"You run the risk of having a lot of major coal-fired power plants shut down," said Tom Hoffman, spokesman for Cecil-based coal producer Consol Energy.

But in the long run, argue environmentalists and officials with "green jobs" companies, energy costs will come down and jobs will be created in areas of renewable energy and efficiency that cannot be outsourced. In addition, the act could create momentum for a global consensus to reduce emissions and, perhaps, stave off global warming. And by spending less on foreign oil, they contend, the United States will reduce funding to potential enemies.

"This bill is the first of many steps toward a cleaner, healthier, safer world," said Adam Garber, an organizer for PennEnvironment.

A crucial detail to be filled in as the bill proceeds through Environment and Public Works, Finance and other committees, is how carbon offsets -- or emissions-reduction credits -- will be doled out in the cap-and-trade market.

Aluminum maker Alcoa also would like to see more guidance on how carbon payments would be phased in, and more concessions for companies that compete internationally.

Alcoa is a member of the United States Climate Action Partnership, a group of 30 companies and environmental organizations that lobbies for greenhouse-gas reductions coupled with protections for the economy. The group includes the National Resources Defense Council, as well as Ford Motor Co. and DuPont.




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