July 30, 2009
Bill Would Give Some States More Carbon Credits Than Others
The U.S. climate bill would allow states that are profoundly dependant on greenhouse-gas releases fuels to have more carbon credits on a per capita basis, says a study of the legislation published on Wednesday.
States that have already reduced gas emissions have long thought of how well they would be rewarded with the new federal climate bill.
Really the only perks under the bill that passed through the U.S. House of Representatives will be less expensive compliance costs, says the review written by the Georgetown Climate Center and World Resources Institute.
States that have started the investments will not need additional carbon permits.
"They are expected to see less of a cost under the (national emissions) program because they are already more efficient," John Larsen, a climate and energy expert at World Resources Institute, said to reporters during a conference call with Reuters.
The bill passed by the House wants to reduce the U.S.'s greenhouse gases 20% in 2020. The bill has not passed through the Senate.
About 2.7 billion permits would be sent to states by 2016 in the House adaptation of the bill. The price of the credits will result on how much carbon dioxide will cost in the future.
With the Environmental Protection Agency's projected cost of $13 per metric ton, the permits might be worth about $350 billion.
States seriously depend on fossil fuels for power like Kentucky, who would receive 10.5 carbon credits per capita and Indiana, who would receive eight by 2016, says the analysis.
On the Net: