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U.S. Sen. Harkin: 13 addtional senators push for fair emission allowances in climate change legislation
11/13/2009

Contact: Grant Gustafson / Kate Cyrul November 12, 2009 202-224-3254

*Radio Actuality Below*


WASHINGTON, DC – Senator Tom Harkin (D-IA) today led a group of 14 senators in sending a letter to Senate leaders asking that any climate and energy legislation that comes out of Congress does not unfairly or disproportionately raise electricity costs in certain regions of the country. Under the current Senate and House clean energy bills, certain utilities – particularly those that are coal dependent – will need to purchase more emissions allowances than others, and those higher costs will be passed on to their customers. The letter, which was sent to Senators Reid, Boxer, Baucus and Kerry, asks that the clean energy bill base the allocation of greenhouse gas emission allowances solely on historical emissions, rather than using the formula in the current Kerry-Boxer bill (S. 1733) in which allowances would be provided based only 50 percent on emissions and 50 percent on sales. This proposed 50-50 allocation formula in practical effect means that the granting of allowances is not carefully focused on those utility companies that really need them based on their recent levels of greenhouse gas emissions. Consequently, a substantial share of the emission allowances would be granted to some utilities in amounts exceeding their real need, while others would be forced to raise electricity rates for consumers.

“We believe it is essential that we strive to formulate legislation that equitably distributes transition assistance across individuals, as well as states and regions and economic sectors,” wrote the Senators. “We urge you to ensure that emission allowances allocated to the electricity sector – and thus, electricity consumers - be fully based on emissions as the appropriate and equitable way to provide transition assistance in a greenhouse gas-regulated economy."

Joining Harkin in signing the letter were Senators Al Franken, Roland Burris, Byron Dorgan, Herb Kohl, Russell Feingold, Kent Conrad, Michael Bennet, Amy Klobuchar, Mark Udall, Robert Byrd, Carl Levin, Debbie Stabenow and Sherrod Brown.

**RADIO ACTUALITY INSTRUCTIONS**

Senator Harkin discusses these efforts in a radio actuality. It is available by calling 1-800-511-0763 and entering ID # 4541 or on the web at http://demradio.senate.gov/actualities/harkin/harkin091112.mp3

The full text of the letter can be found here.


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