$1 Assumption is Unrealistic, Current Trading Prices Demonstrate the Realities

November 17, 2005 WASHINGTON, DC ñ Sen. James Inhofe (R-Okla.), Chairman of the Environment & Public Works Committee, today clarified a claim made by the ranking member of the Clean Air, Climate Change and Nuclear Safety Subcommittee on the Senate floor with regard to multi-emissions legislation pending in Congress. ìI understand my friend from Delaware still holds to the belief that carbon dioxide emissions can be controlled for $1 a ton,î Senator Inhofe said. ìWhen the EPA recently released its new modeling data on clean air legislation, I noted that the modeling made unrealistic assumptions about the future costs of natural gas. My colleagueís assumptions for the costs of controlling CO2 emissions are also unrealistic as yesterday, the trading price for CO2 in Europe closed at Ä22.70 (Euros) per ton, which at the current rate of exchange is about $26.62. That is over 26 times more than the estimate the junior Senator from Delaware touted today in favor of capping CO2 emissions with his legislation. In fact, EPA analysis shows that utilities would not reduce even a single ton of CO2 emissions under his bill. ìIf Congress is serious about further improving air quality in this country, we simply must set aside the debate over controlling CO2 emissions and start talking again about cutting real pollution from power plants ñ mercury, sulfur dioxide and nitrogen oxides. Our Clear Skies legislation will accomplish that.î