Cap-and-trade policy is proven, effective
The U.S. House of Representatives recently passed a bill that takes us one step closer to a new energy policy for our nation. The landmark proposal has engendered strong opinions. Some say the legislation does not go far enough, arguing for stricter carbon dioxide emission targets and a faster timetable. Others say climate change is not real and assert that the bill will wreck our economy.
Duke Energy’s position is a pragmatic one. We believe the research of the world’s leading climate scientists is credible. Congress and the Obama administration are committed to passing a bill. The U.S. Supreme Court has given the Environmental Protection Agency the authority to control carbon dioxide if Congress fails to act. Our job is to make sure a carbon emissions reduction program works for Indiana.
Indiana is especially vulnerable because 94 percent of our electricity is generated by coal – the largest source of carbon dioxide emissions. We need targets, timetables and a mechanism that provide a smooth glide path to compliance – not a sudden, jarring lurch that could have devastating impacts on our customers.
Early proposals would have had a punishing impact, especially on Indiana. At one point, legislation was even envisioned as a revenue raiser for the federal coffers. Pollution “allowances,” or permits to emit carbon dioxide, were going to be auctioned off, and the costs passed on to utility customers. By engaging in the debate, we have been able to gain political support for a system of allocating allowances that will reduce the costs of this legislation on customers.
The House bill is not perfect but it contains an important mechanism that will help Indiana and coal dependent states. “Cap and trade” has been derided by some as a “carbon tax,” but it’s not. For the last 20 years, cap and trade with the allocation of allowances has been used to reduce acid rain-causing sulfur dioxide, resulting in compliance costs dramatically lower than anticipated. Controlling carbon emissions in the same way would produce a similar result, reducing costs five to 10 times compared to a traditional approach. This is a proven, efficient approach that allows companies to reduce their emissions with the least amount of impact on customer bills.
The EPA is already preparing to act if Congress doesn’t. Duke Energy believes our customers’ interests are best protected under a law passed by Congress rather than regulation by unelected bureaucrats who may be less compelled to take Indiana’s concerns into account.
Jim Stanley
President, Duke Energy Indiana
People can’t control the climate, folks
Aaron Williford said it all. I can’t believe some Democrats think they can control the climate. The wind moves around the globe constantly, bringing new weather patterns.
These fools are not God, and I have a feeling he will show them who is boss. We are going to have terrible weather.
Evelyn B. Harrington, Kokomo
Good job, Jim Buck, ‘Legislator of Year’
State Sen. Jim Buck was recently given the “Legislator of the Year” award by the American Legislative Exchange Council (ALEC), a bipartisan organization consisting of legislators from all of our states. When I learned that Jim Buck was to receive this award, I researched what ALEC stood for and learned that this is an organization that believes in smaller government and in protecting the American taxpayer – my type of organization.
I am proud that my state senator was given this award because it shows that he has been recognized by an organization that embraces many of the issues that I think are important. Good job, Jim Buck!
Terri Gingerich, Kokomo
