Leaders in the Democratic Congress haven’t even passed new emissions standards - which likely would raise upward of $100 billion - but various interests supporting the measure already are split about who should get the money.
Democratic congressional leaders widely expect to pass some measure that will charge companies for carbon emissions, either through a flat-out tax on those emissions or a cap-and-trade program.
President-elect Barack Obama and other cap-and-trade supporters have proposed using the money for investment in the research and development of alternative-energy technology.
“What we would do is create middle-income tax relief while at the same time serving the direct purpose of cleaning up the environment,” said Rep. John B. Larson, a Connecticut Democrat who introduced an ill-fated carbon-tax plan in 2007.
Regardless of the type of plan, the question remains how much would be returned to taxpayers and how much would be devoured by a federal government looking to invest in “green” jobs and technologies.
Mr. Obama campaigned on a plan that would direct the profits from carbon licenses toward tax relief and investment in alternative-energy development.
Other carbon-tax supporters said they would like all of the proceeds under their plan returned to Americans in the form of a tax credit, which could amount to $560 a year per person.
“Government should keep their hands off that money,” said James Hansen, director of NASA’s Goddard Institute of Space Studies.
The Center for American Progress, a liberal think tank closely aligned with the incoming Obama administration, has suggested that proceeds be split between federal energy aid to low- and middle-class Americans and investments in renewable-energy programs.
The Congressional Budget Office estimated that the Senate cap-and-trade bill that was debated earlier this year would have garnered $112 billion by 2012 and raised billions of dollars more on top of that as the tax rate increased over time.
Mr. Obama has proposed spending $15 billion a year over the next 10 years on “green” jobs and projects. Congressional leaders have said an economic-stimulus proposal could cost up to $1 trillion and include major investments in renewable-energy projects. But all of the leaders have been mum on how the projects would be funded.
Opponents of any carbon-pricing program have said that any tax on industry would be passed on to consumers and would grate against any sort of economic-recovery plan.
“In overwhelmingly defeating the Lieberman-Warner bill this year, the Senate recognized the devastating economic impact cap-and-trade legislation would have on our nation’s economy, including the loss of millions of American jobs,” said Matt Dempsey, spokesman for Sen. James M. Inhofe, the ranking Republican on the Senate Environment and Public Works Committee.
Sen. Barbara Boxer, California Democrat and chairman of that committee, said she expects the next Congress to enact a cap-and-trade plan when it convenes next year.
Mrs. Boxer and other Democratic leaders have said last year’s failed bid to pass a carbon-cap plan was a dry run for the forthcoming efforts.
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