Transcripts

The Corporate Combat Surrounding the Climate Security Act

PAUL KANGAS: The climate change debate come to Capitol Hill today as Senate took up a wide-ranging bill that would cut greenhouse gas emissions by two- thirds by 2050. Under the Climate Security Act, companies would either purchase or be given the right to emit carbon pollution. As Stephanie Dhue reports, that has permitting system has ignited a battle in corporate America.

STEPHANIE DHUE, NIGHTLY BUSINESS REPORT CORRESPONDENT: To soften the economic blow of putting a price on carbon, Congress wants to give away hundreds of billions of dollars in free emissions permits. That plan has triggered a classic Washington power battle. Paul Bledsoe of the National Commission on Energy Policy says industries are already jockeying for position.

PAUL BLEDSOE, SPOKESMAN, NATIONAL COMMISSION ON ENERGY POLICY: At a certain point, it's every company for themselves. They are very concerned about getting what they see as their fair share of these emissions permits.

DHUE: Support for the bill is being influenced by who will profit from the sale of emissions permits. Some utilities like Exelon, FPL and NRG Energy that use cleaner burning natural gas or nuclear power, support the bill. Exelon, the largest nuclear operator in the U.S., would also like to see a cap on the cost of carbon.

JOHN ROWE, CEO, EXELON: We do hope to benefit, but we support a cost constraint mechanism precisely because we believe the economy can't manage people like us benefiting too much. In other words, we hope to do a little better because of this problem, but doing too much better and hurting the economy isn't good for us either.

DHUE: Utilities that rely more on coal like AEP and Duke Energy, say the Climate Security Act is too costly and will push energy prices even higher. The companies that produce coal, oil and natural gas are pitching for a longer phase-in time to reduce emissions and more subsidies to invest in clean technologies. The U.S. Chamber of Commerce opposes the bill. The Chamber's Bill Kovacs says the proposal amounts to a tax for the majority of energy producers.

BILL KOVACS, U.S. CHAMBER OF COMMERCE: Let's look at the oil companies. They get 2 percent of the allocations. But right now the oil is about 35 percent of the energy that we use in this country. So if they only get 2 percent, that means on day one, the day that this bill passes, they have to begin buying credits in order to sell gasoline.

DHUE: While the debate is heated, the prospects for the bill becoming law this year are dim. Still, the debate is seen as important since it will frame the issues for the next president and Congress to decide. Stephanie Dhue, NIGHTLY BUSINESS REPORT, Washington.