Resolution opposing cap and trade adopted by Ohio Senate Tuesday

By CARL E. FEATHER - Staff Writer - cfeather@starbeacon.com
Star Beacon

July 01, 2009 07:52 pm

— The Ohio Senate on Tuesday adopted a resolution opposing Barack Obama’s legislation to implement a cap-and-trade emissions trading system.
The system would establish a cap on greenhouse gas emissions, require entities that emit greenhouse gases to purchase government credits to offset emissions, and allow entities that emit the gases to trade or sell those credits.
The Ohio Senate resolution was sponsored by Chris Widener, R-Springfield, who had 19 co-sponsors. The resolution states that Ohio receives more than 85 percent of its electricity from coal.
“Thus, the cap-and-trade program will result in massive increases for all consumers because the cost to produce electricity from coal will be markedly higher,” the resolution states.
According to the U.S. Congressional Budget Office (CBO), the price increase resulting from a 15 percent cut in greenhouse gas emissions would cost the average household between 1.7 and 3.3 percent of its after-tax income, annually. Households in the bottom fifth of the income scale would lose the largest share of income as a result of the program. CBO has acknowledged these increases in energy costs will act as a regressive tax and affect every household in the nation, according to the Ohio Senate resolution.
Cap and trade will result in a massive windfall of billions of dollars for the federal government through the sale of emission credits. Critics say the program won’t result in an overall global decrease in emissions because many U.S. industries will relocate to countries with less stringent standards, taking away American jobs in the process.
Based upon these concerns, the Ohio Senate is urging Congress to refuse to enact cap-and-trade legislation. The resolution passed Tuesday, 21-11. Capri Cafaro, D-Hubbard, voted against it.
The U.S. House narrowly passed the legislation 219-212 last week and sent it to the U.S. Senate, where it is expected to face a difficult fight.