March 29, 2006

WASHINGTON - Congressman Tom Petri (R-WI) joined with Congressman Tom Udall (D-NM) Wednesday to introduce legislation to curb greenhouse gases which are widely believed to contribute to higher temperatures worldwide.

"Global warming is here, and it presents serious risks for everybody on the planet," said Petri. "Congressman Udall and I have tried to come up with a plan that will move us in the right direction, but which provides enough flexibility so that businesses will be able to comply without going broke. This is an approach that can actually be passed, signed into law and do some good."

Petri said the proposal sets attainable goals for reducing emissions by establishing a baseline at the level of emissions existing three years following the enactment of the legislation. "In the rush to reduce emissions, the first step must be to stop things from getting worse by stabilizing emissions. Only then does the bill begin to reduce emissions," Petri said. "By recognizing that the problem can't be solved quickly, we can finally get started by agreeing to provide regulated industry with the kind of advance notice it needs to upgrade equipment in an orderly way."

The legislation includes a policy device known as a safety valve. Companies which burn large amounts of carbon-emitting fuels would be able to purchase the ability to exceed their emissions limits by paying, initially, $25 per ton of carbon from companies which are able to reduce their emissions below their limits. In this way, companies will be able to benefit by reducing their emissions while those companies which are having difficulty reaching emission goals will be able to continue operating, but at a price until they're able to comply."

"The bill protects U.S. competitiveness by tying future increases in the price of the safety valve allowances to the emissions-reducing actions of developing countries," Petri said. "We have to be sure that other countries participate in the solution instead of using our efforts to undercut our prices. So, if the president and secretary of state are able to certify that other countries are controlling their emissions, then the price charged for emissions allowances will rise and the pressure on companies to reduce carbon emissions will increase."

The bill also allocates allowances to promote an advanced research and development program for technologies that will help curb greenhouse gas emissions.

Petri said the legislation is the first comprehensive economy-wide, cap-and-trade global warming bill to include a prospective baseline, a safety valve, and protections for U.S. companies in cases where developing countries do not take comparable actions to curb emissions.

"The continuing absence of a meaningful, mandatory policy in the United States is a significant impediment to a global consensus to slow the growth of greenhouse gas emissions. By introducing this bill, Congressman Udall and I are working to fill that void and encourage lawmakers to take the first step toward responding to the increasingly urgent signs of global warming," Petri said.