Posted by: mstermitz | April 30, 2009

Carbon Auction – maybe.

President Obama’s preference for auctioning off allowances under a carbon cap-and-trade system to fund renewable energy projects may be colliding with political reality, except it’s hard to tell.  A draft climate and energy bill proposed by House members Henry Waxman (D-Calif.) and Edward Markey (D-Mass.) has received much attention and garnered supporting testimony this week from none other than Al Gore.  Utility companies worry that an auction would represent a huge loss of revenue that could be used to retrofit their facilities to meet mandatory greenhouse gas limits.  The Waxman-Markey Bill, for the moment, leaves to another day whether emission credits will be auctioned, traded or held by utilities.

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