Cap & trade ‘Looney Tunes’ to send bills skyrocketing
by Tom Busselberg
Sep 10, 2009 | 632 views | 0 0 comments | 8 8 recommendations | email to a friend | print
BOUNTIFUL CITY MANAGER Tom Hardy thinks that cap & trade is “looney tunes.”
BOUNTIFUL CITY MANAGER Tom Hardy thinks that cap & trade is “looney tunes.”
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BOUNTIFUL —”It’s Loony Tunes” said Bountiful City Manager Tom Hardy of proposed cap and trade legislation being considered in Congress.

In an interview with the Clipper, Hardy and City Power Department Director Allen Johnson agreed its implementation could mean a doubling and tripling of Bountiful’s power rates.

Utah Sen. Orrin Hatch, meanwhile, said passage of cap and trade legislation could cost the state up to 24,000 jobs and $465 million in gross domestic product a year. He and Governor Herbert co-hosted a cap and trade forum late last week in Salt Lake City.

“It (cap and trade proposals) applies to all forms of energy – natural gas, oil, coal, etc.,” Hardy said.

The premise behind it is to charge a carbon tax based on emissions allowed to produce a particular energy source.

“It (current bill) doesn’t diminish the amount of carbon put out, just (provides) allowances” of carbon output, the city manager said, adding “It’s still up to debate” when it comes to the particulars.

“I heard there are some in the Senate who don’t like it (proposed bill),” Hardy said.

The Waxman-Markey bill is the legislation currently in play, and indications are up to 2.7 million jobs could be lost nationally each year over the life of the trade proposal, Hatch said. Greater use of renewable energy is behind the bill, Hardy said. Bountiful’s power mix currently includes about 60 percent coal, drawn from various sources.

“The goal of state law is to have 20 percent of power generated by renewables by 2025,” Hardy said. “We’re (Bountiful) at 40 percent right now.”

That compares to 80-85 percent power reportedly drawn from coal for Rocky Mountain Power, he said. However, the way federal legislation is written, renewables can only apply to power sources developed since 1989.

“It’s Loony Tunes,” Hardy said of how the legislation is written. “It’s all in the definition. California hydroelectric power is not considered renewable,” even though it’s drawn from dams harnessing water power, he said.

Because Utah is so dependent on coal, which is abundant and a cheap power source here, the Waxman-Markey bill’s passage could raise its price by double, Hardy said.

“The cheapest power is from hydro, but environmentalists oppose any more development” from that source, he said.

Cap and trade implementation could raise a typical $70- $80 Bountiful household’s monthly budget billing to about $200, said Johnson. It would cost every resident, not household, up to $1,000 a year, meaning the city would have to pay $45 million for power, compared to total current revenues of $22 million to $24 million.

“It scares the socks off us,” Hardy said of such prospects. “Obviously we’re opposed to the House bill.”

With cap and trade, the U.S. could lower its emissions/pollution levels, while other places, such as China, could continue to spew out ever-growing levels of pollution.

Switching to clean nuclear power would take a minimum of 10 years to build a typical power plant because of hearings, site selection, design, etc.

And wind and solar power are currently very expensive for the power produced, and unreliable in terms of a continuous, guaranteed power source, Johnson said.

Those backing the bill are hoping to implement it within the next two to three years, Hardy said.

tbusselberg@davisclipper.com

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