Cap and Trade Controversy

Wherever you stand on the issue of climate change, the solutions being proposed in the American Clean Energy and Security Act, popularly known as cap and trade, remain the subject of bitter debate.

Cap and trade was first enacted back in 1990 to curb sulfur emissions and acid rain.

Now it’s being proposed for carbon dioxide.

The way it’s supposed to work is the EPA sets a level of acceptable greenhouse gas emissions. If you are under the limit, you get credits for running clean.

If you are over the limit, you can buy those credits that allow you to stay there.

Industry leaders like Valero CEO Bill Klesse contend, they are already spending large sums meeting environmental standards…

“We will need to spend another 3.5 billion over the next several years,” Klesse told Congress, “as new regulations continue to be drafted and adopted.”

Klesse says that the credit purchases will add huge costs to their products, like gasoline and heating fuel, costs that will be passed on to the customer.

And today, Texas Senator Kay Bailey Hutchison added her voice to those in opposition…

"At this time of economic uncertainty,” she said in a speech today, “15 million people are out of work and just about every American is cutting back on spending. Do we really want to put a tax on energy and increase energy costs for families and small businesses at a time like this?"

Now, to be fair, defenders say the costs are far less than the industry says, so the debate shows no sign of ending soon.