Allocation System 'Inequitable'

Members of Congress trying to hammer out a bill to reduce greenhouse gas emissions have reached agreement on the distribution of valuable carbon dioxide permits. As reported in the San Francisco Chronicle, more than 50 percent of the emissions allowances will be donated to electric-power distributors, automakers, and other industries. Only 2 percent of the allowances will go to refiners.

API responded today in a statement from President and CEO Jack Gerard:

"The House Energy and Commerce Committee has devoted significant effort to advance an ambitious plan to address the challenge of climate change. Unfortunately, while the proposal is meant to solve a serious environmental challenge and spur growth in our weak economy, its inequitable system of allocations will have a disproportionate adverse impact on consumers and producers of gasoline, diesel fuel, jet fuel, crude oil and natural gas. Those who drive, fly or take the bus or train to work will shoulder a disproportionate burden and this must be rectified."

The full statement is available here.