Let's Make a Deal: Automakers reportedly reach agreement with lawmakers on carbon cap legislation
Now that the U.S. has officially concluded that greenhouse gasses are harmful to human health, it's time to do something about them. One major hurdle standing in the way of the U.S. implementing carbon cap and trade legislation appears to have been cleared as both the domestic automakers and Michigan's legislature have lifted their opposition and now support for the bill. Why? The Detroit News reports that an agreement has been reached that could see up to $15 billion paid out to the Detroit-based automakers starting in 2012. Yeah, that would do it.
In a so-called cap and trade plan, the federal government would set a limit on the total amount of carbon emissions the U.S. as a whole can produce. The government would then divvy up that figure by issuing permits to various industries. A company that wants or needs to emit more carbon dioxide can either purchase credits at auction or pay fines for surpassing its assigned limit. Under the proposed deal, automakers will receive 3 percent of the revenue generated from both auctions for carbon emissions permits and fines paid by corporations for violating carbon limits. That revenue would drop to 1 percent in 2017.
John Dingell (D-MI) had this to say in a written statement:
"This is a significant achievement for the automotive industry and its workers, as the bill will help fund research, development, implementation and deployment of new, low-carbon technologies and upgrading manufacturing facilities to provide the next generation of green vehicles right here in the United States."The deal with automakers is just one of several agreements that House Democrats are making to appease various key state representatives and industry heads that may have otherwise opposed the bill. In its latest form, the bill would cap greenhouse gas emissions in 2020 at 17 percent below 2005 levels.
[Source: Detroit News | Image: Clinton Steeds]
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Reader Comments (Page 1 of 3)
Ludovico de Amicis 4:12PM (5/14/2009)
I understand the intent of such legislations, but it seems like this would drive even more US businesses to build in places like China where CO2 emission is much less of a concern (And I don't think financially penalized).
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Dan 4:22PM (5/14/2009)
Yep. Coal power generation is going to move to Mexico, what manufacturing we have left is going to go to China - except for megacorps like GM with the political clout to get what amounts to an exemption, which is why they're suddenly onboard.
The economy is rough enough without any help from this budget buster.
Dude 4:13PM (5/14/2009)
This is just a new tax on the American people.
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Concerned Citizen 4:52PM (5/14/2009)
I thought this said "Carbon Crap Legislation"
I reread it, and I'm sticking with my initial assessment
Cole 3:09PM (5/15/2009)
If CO2 is bad... make all the Politicians stop exhaling! The talk to damn much...
Assass1n 4:15PM (5/14/2009)
How can a gas we exhale be harmful to our health? Seriously, the tree huggers get more annoying every day.
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avif 4:20PM (5/14/2009)
Maybe thats why we exhale it?
bvz 7:34PM (5/14/2009)
Assass1n,
You are joking, right? Seriously? How can a gas we exhale be harmful to our health?
Tell you what, seal yourself into a closed box for a while and then we can discuss "How a gas we exhale can be harmful to our health."
Assass1n 9:35PM (5/14/2009)
Yeah, if the atmosphere was >90% CO2 it would be harmful, but the saturation the EPA is talking about is minuscule. Its not like its a carcinogen or will cause asthma.
Chris 11:56PM (5/14/2009)
It isn't harmful to our health. You're right. It just isn't of any use so we exhale it. And also the picture is a little ridiculous considering trees grow far BETTER with more carbon dioxide. It's the other things that are in fuel that pollute. That's why cars that burn fuel more efficiently, like a new Mercedes, Audi, or BMW pollute much less than a Civic or Focus.
C.W. 8:28AM (5/15/2009)
Assass1n and Chris are right. this is a load of crap. its government exuding control and another way to TAX. The way this new legislation breaks down across the board is about $800-1200 per family in increased energy taxes per year. can you tell me how this helps us?
there is more evidence out there that CO2 emmissions have no noticeable negative impact on the environment than the other way around. you just wont hear about it unless you dig for it. if Congress tells you anything is a fact they are lying. Everythig they do is 100% about being reelected. there is no global due diligence being performed here. Voters want 'green' people in office, so they will all spew anything 'green' to make voting districts happy. POLITICS are killing out auto industry and the cars we drive.... oh, and they're taking out money. oh, and they just got a big pay RAISE in the worst economic decline in decades. wish i got a raise. i'm glad just to have a job.
adam1drift 4:17PM (5/14/2009)
another way to regulate business and create another wealfare system, but this time for business....
what a crock!
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JW 4:23PM (5/14/2009)
So they're going to tax the Automakers for the pollution that comes out of their plants? Or are they taxing Automakers for the pollution that their customers produce driving around in their products?
If it's the former (which I doubt) then why do they get a say?
If it's the latter, then what the *****? Is the US Government going to tax Lawn Mower makers? Their products emit CO2. How about Boat makers? How about Motorcycle makers? How about Bicycle makers. Every time someone rides a bike, they breath heavier. Make an easier-to-ride bike, and reduce CO2 emissions. Why would the only pick on Automakers. I know their products produce the most grouping of CO2, but how do you track this? If gas prices go up, I bet people use their products a lot less, and therefore produce less CO2.
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BigMcLargeHuge 4:35PM (5/14/2009)
By the sound of it, its far worse than that.
They are going to tax lawnmower makers, etc. and then give the
proceeds to their gov't-owned pet project, the automakers.
This is the government bullying non-government owned industries and funneling the tax proceeds to industries that the government has an interest.
The bureaucratic involvement in the auto industry just reached a new
level of corruption.
Can we change our name to U.S.S.R. of A. yet?
JW 10:16PM (5/14/2009)
I actually started telling friends we're going to be the USSA (United Socialist States of America).
I can't believe the President and the Dems in Congress are getting away with this stuff. Capping executive salaries, even if they haven't received government funds?!?! Taxing CO2?!?!? Owning banks and automakers and insurance companies?!?!?! Taking over our healthcare?!?!?! Eliminating border controls?!?! A MORE progressive income tax. Higher Death Taxes? (Read the communist manifesto ever? . . . http://en.wikipedia.org/wiki/The_Communist_Manifesto#10_Conditions_For_Transition_To_Communism)
Who do they think they are?
Soon they will control the money supply, our retirement funds, our schools, our healthcare, our salaries, our mortgages, the means of production and distribution of products in our manufacturing sector, and soon our Supreme Court. Wake up people! Soon we'll be dependent on the government for EVERYTHING.
Fritz 4:42PM (5/14/2009)
Imagine that. Big corporations in support of draconian legislation. How did Mussolini define fascism again? Here comes the carbon tax, now with improved profits for socialized business!
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John P. 4:44PM (5/14/2009)
Just another way for Govt. to squeeze more money out of the people. Great for job security. Theirs not ours.
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C.W. 8:32AM (5/15/2009)
its the 'change we can believe in' crap that the voters wanted.
they wanted change? well... here they go.
people will believe anything the EPA (a gov't agency...) and CNBC tell them. no matter the level of lunacy.
MJS 4:58PM (5/14/2009)
Amazing, since the EPA state yesterday in a session with Taxgress, that CO2's are not causing any damage and there has not been enough or any conclusive scientific data. Just another tax for Spendbama. Wake up people, your freedom is being taken away from someone who tells you how you should live your life-see speech to ASU students-and does the complete opposite, ie, million dollar book deals, needless trips on AF1, eating $100.00 steak dinners at the Whitehouse. Economic freedom is your true freedom, what car you want to drive-harder and smarter you work, the better car you can drive. Also, notice he never says we need to save "dealership" jobs(mostly non-union), just the 1000 factory jobs, not the almost 40,000 jobs lost today because of Chrysler.
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Nightcrawler 9:01PM (5/14/2009)
Not enough conclusive scientific data? What are you talking about? The scientific community is pretty much unanimous that CO2 is causing global warming. The ones that don't are just the small percentage that are the lunatic fringe. Heck, you can find someone that says the earth is flat too, but that doesn't mean anyone else believes it. The only reason a significant portion of the public thinks it's in doubt is because some have raised those doubts for political reasons, leading the public to think it's not settled yet. To the real scientists, it's settled. (Which isn't to say I see any obvious solution to the problem either. I think were stuck with what we have made.)
All of this has nothing to do with Obama as far as I can tell. I'm not sure why you are going off about $100 steaks, but if he is eating $100 steaks, he's paying for them. The President gets billed for all the food he and his family use at the White House, except for things like state dinners. Apparently every president is shocked by how much it costs them when they first take office. Rosalyn Carter reportedly never got over it and fought about it all the time.