Members of Congress trying to hammer out a bill to reduce greenhouse gas emissions have reached agreement on the distribution of valuable carbon dioxide permits. As reported in the San Francisco Chronicle, more than 50 percent of the emission allowances will be donated to electric-power distributors, automakers and other industries. Only 2 percent of allowances will go to refiners.
API President and CEO Jack Gerard responded to these developments saying that "while the proposal is meant to solve a serious environmental challenge and spur growth in our weak economy, its inequitable system of allocations will have a disproportionate adverse impact on consumers and producers of gasoline, diesel fuel, jet fuel, crude oil and natural gas." He goes on to mention that the bill's goals are admirable, but the inequitable allocations would impose greater costs on consumers and producers of oil and gas, harm America's economy and diminish our energy security.
For more on the bill and the potential impact on consumers and the U.S. economy, click here to watch a video from this morning of Jack Gerard on CNBC.
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