U.S. business braces for battle on climate laws
Source: Reuters
(Corrects first sentence to ... if the United States imposes greenhouse gas legislation ... instead of ... if the White House imposes greenhouse gas legislation ... reflecting that the White House cannot unilaterally impose legislation) By Chris Baltimore HOUSTON, Feb 16 (Reuters) - Corporate America is already girding for what could be a multibillion-dollar battle over the distribution of emissions cuts if the United States imposes greenhouse gas legislation. After years of resistance, many top U.S. companies are joining a growing chorus of groups calling for mandatory action on the heat-trapping gases following a Democratic sweep of congressional elections last year. But the devil is in the details of such proposals. Companies are preparing a lobbying frenzy to pin down how emission cuts would be spread across the economic sectors. "When big corporations say they are ready to play, what that means is, 'Boys, we are ready to rumble,'" said James Lucier, an analyst with Prudential Equity Group. "There will be an outright fight over money between some of the biggest corporations in the world," Lucier said. "This is just not cued up and ready to go." The potential huge costs to the various sectors of the U.S. economy -- residential, commercial, industrial and transportation -- are expected to have state lawmakers seeking favorable treatment for their native industries. Among the industries most affected will be utilities, industrial factories as well as the U.S. automobile sector, which faces the potential cost of manufacturing lower-polluting cars. "Allocation will be the key question to resolve for you to get political support for any system," said Robert Simon, majority staff director for the Senate Energy Committee, whose chairman, Sen. Jeff Bingaman, is also drafting a climate-change proposal. SLOW CHANGE Democrats' newly won control of the U.S. Congress has added to growing popular support for reducing the nation's emissions, after efforts to require electric utilities and other industry to cut their emissions languished under Republican control. As popular concern about greenhouse gases grows, companies such as Exxon Mobil Corp. <XOM.N> that have opposed climate change legislation are changing their tune. "The risks to society and ecosystems from climate change could prove to be significant," Exxon Mobil Chief Executive Rex Tillerson told a conference hosted by Cambridge Energy Research Associates this week. Democratic leaders are advancing legislation that would slow and eventually reverse carbon emissions by industry, which spews about 25 percent of all global greenhouse gas emissions. House Speaker Nancy Pelosi of California is pushing legislation by July 4 that would halve U.S. emissions by 2050. Similar bills are advancing in the Senate, backed by 2008 presidential candidates like Democratic Sen. Barack Obama of Illinois and Republican Sen. John McCain of Arizona. But President George W. Bush as consistently opposed mandatory carbon caps, setting up a possible White House veto of possible legislation. Even some proponents of limits say action is unlikely before the 2008 presidential election. "I don't know it will happen in the next 18 months. There is a chance of it, but I'm not that optimistic," said Jeff Sterba, head of New Mexico utility PNM Resources Inc. <PNM.N> "It will take longer to do and even longer to implement." And even if Congress passes legislation, it would not likely take effect before 2012, Simon said.
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