Published: July 02, 2009 01:57 pm      

Indiana Rep. Baron Hill responds to criticism over cap and trade vote

He says utility prices won’t skyrocket

Opponents dub it a national energy tax, and even supporters of a cap and trade policy called for more stringent regulations than what’s included in the American Clean Energy and Security Act passed Friday by the U.S. House.

But Rep. Baron Hill is calling the measure a success.

Hill, a Democrat representing Indiana’s 9th District, traveled around Southern Indiana on Wednesday gauging reaction to the bill. Proponents tout the measure as a gateway to reducing carbon emissions in a way that will lead to more jobs by putting Americans to work building clean energy infrastructure.

“I think [clean energy jobs] will be created immediately and will be if this bill passes,” Hill said during an interview at The Tribune office in New Albany.

The House version passed 219-212, and the bill now goes to the Senate for consideration.

Opponents believe the act will do more damage than good, costing Indiana jobs and resulting in substantial utility rate increases. Under the system, companies would have a cap on the amount of greenhouse gases they can emit and would have to be permitted for every ton it releases.

The trade portion comes in for companies that meet their emission goals, as they would be able to sell their remaining permits to the companies struggling to meet their carbon limit.

The National Republican Congressional Committee launched a radio ad in Southern Indiana on Wednesday encouraging residents to call Hill and tell him to “stop voting with [Speaker of the House] Nancy Pelosi and start voting for Hoosiers instead.”

“Once again Democrats are forcing an extreme agenda of more spending, more taxes and fewer jobs,” stated NRCC Communications Director Ken Spain in a news release.

“In the midst of a severe economic recession, Nancy Pelosi and Baron Hill are inflicting further damage on our economy with a job-killing national energy tax.”

Hill countered that opponents need to research what the measure really would restrict. Key changes suggested by the House Energy and Commerce Committee were why Hill said he could vote for the bill.

Those changes included lowering the reduction goal for greenhouse gases by 2020 from 20 percent to 17 percent, compensating industries for their cost of compliance to the new restrictions and the removal of the low carbon fuel standard, which Hill said could drive up gas prices.

Hill — one of two Indiana representatives to vote yes on the act — said the renewable energy standard was altered so a state like Indiana can comply.

Also, the legislation passed by the House provides 90 percent of the permits for regulated entities — such as electricity companies — each year for free. That means a utility would have to come up with just 10 percent of what they need each year.

According to Hill’s office, several utility companies including Duke Energy expressed support for the House bill after the changes were made.

Hill said it’s because the utility-bill increase suggested by opponents of the bill is a lie, as the changes to the measure should keep energy companies from raising rates substantially.

He added the Environmental Protection Agency is able to make the emission regulations without the consent of Congress, which Hill believes would really cause utility prices to skyrocket.

He said many of the same questions were raised when Congress was cracking down on sulfur emissions, but added that legislation has worked well.

“We are trying to use history as a guide,” Hill said.

While Hill has been questioned by those against the act because they feel it’s overbearing, there also has been criticism from many environmental groups that the measure doesn’t go far enough.

He believes that’s a sign that the bill is fair.

“Somewhere in the middle has to be the right solution, and I think we have passed the right bill,” Hill said.



SO YOU KNOW

• According to Rep. Baron Hill, the following electric and energy companies have expressed support for the bill:

Duke Energy, Exelon, PG&E Corp., FPL Group, Austin Energy, National Grid, PNM Resources, Avista, NRG Energy Inc., PSE+G, Edison Electric Institute, ConEdison, Constellation Energy, Entergy and Renewable Fuels Association