It only makes sense that this week’s Green Report focus on the environment and the Obama administration after his joint session of Congress address on Tuesday. The Prez has some big ideas to help the environment. In fact, his top priority was energy, which includes producing more renewable energy and reducing America’s dependence on oil from the Middle East. Woo hoo!
Colorado Oil Shaleland
So, it comes as no surprise that President Obama is reversing more of former President George W. Bush’s policies on oil shale. In fact, his Administration recently removed the leases for another round of oil-shale development projects on federal lands in Colorado, Utah and Wyoming. Ken Salazar, Obama’s Interior Secretary, withdrew a proposal for additional research and oil shale leases due to economic and environmental concerns. He thought the previous proposal in January for research and development on 1.9 million acres was flawed. Salazar told MSNBC that new proposals will “help answer critical questions about oil shale, including about the viability of emerging technologies on a commercial scale, how much water and power would be required, and what impact commercial development would have on land, water, wildlife, and communities.” Now, that’s environmentally responsible leadership.
And President Obama has plans to put his money where his mouth is. His proposed budget, released by the White House recently, would call for $15 billion a year to develop clean-energy technologies, which include solar and wind power. The funding to fight climate change and the country’s dependence on foreign oil would come from auctioning off carbon pollution permits, starting in 2012 (more on this below). Obama’s commitment to tackling climate change is fantastic but Congress is ultimately in charge of the budgeting. And the House and Senate haven’t written a bill yet that regulates greenhouse gases and collects money to do so. Let’s see what Congress and the President can devise to stop global warming.
Environmental change calls for big bucks and a new funding system. To pay for his environmental budget to fight global warming, Obama proposes a “cap and trade” system. Basically, the federal government would require companies like power plants and industrial facilities that emit greenhouse gases linked to global warming to purchase permits. It’s like a costly swap-a-roo. If a company exceeds their greenhouse gases limit (read: cap), then they must buy credits from those that are emitting less.
This new revenue stream could bring in $78.6 billion to the Treasury by 2012. And the auctioning of emission allowances as outlined by the Obama plan is predicted to usher in a whopping $645.7 billion between 2012 and 2019. This is no small change and no small difference. The plan would “cut total emissions 14 percent below 2005 levels by 2020 and 83 percent below 2005 levels by 2050.”
And Obama’s thinking of the little guy too. His proposed plan would take 80 percent of the anticipated revenue (or $526 billion) and subsidize the higher energy costs of low- and middle-income folks through tax credits. And the rest of the dough would go towards alternative, clean energy initiatives. Good thinking Prez!
