Up in the Air

By Bill Polits
Democratic senators from states heavily-dependent on coal-fired electricity plants wrote to President Obama saying that unless they were sure of additional protections against lost jobs as a result of the American Clean Energy and Security Act of 2009, they could not support the legislation. From Indiana, Ohio, West Virginia, Pennsylvania, Wisconsin, Minnesota and Michigan, the group of 10 senators have concerns that with respect to the heavy dependence of local manufacturing in sectors such as steel, cement, paper and aluminum, the increased cost of electricity would force these businesses offshore, resulting in negative economic conditions.

The senators propose "carbon tariffs" as the means to protect the economies of their states and to push competing countries like China and India toward the bargaining table in support of a comprehensive global agreement.

Supporters of the current legislation claim that there is ample protection in the bill for coal-dependent regions in the form of carbon credit hand-outs and slow phase-in of the carbon dioxide restrictions. President Obama commented that letter caused him concern, as it takes a potentially protectionist stance.