Sacrificing environment for economy

June 22, 6:41 AMBoston Environmental Policy ExaminerJon Anderson

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Sacrificing environment for economy. Congress passed the cash for clunkers bill under steep opposition from environmentalists. This is largely seen as a victory for the auto industry. At the heart of the matter is how to tackle long neglected environmental needs while jump starting the economy. The Obama Administration and the Democratic Congress are walking a tight rope between environmentalists and powerful American industries that are suffering in the Great Recession. So far, industry is largely seen as the winner, as long neglected environmental goals espoused by Obama in the campaign have fallen by the way side as the environment takes a back seat to the economy.

The cash for clunkers program was scaled back from $4.5 billion to $1 billion. The program is in effect from July 1, 2009 through November 1, 2009. Gas guzzlers must receive less than 18 miles per gallon, but some light-duty trucks qualify even if the fuel economy improvement is only  1 mpg.  Car and truck models have to be new, not used. The vehicle owner must have had title to the vehicle for at least a year. Owners are eligible for $3,500 cash voucher toward the purchase of a new vehicle. If the vehicle gets 10 mpg or more the owner receives $4,500. There are no income limits, but the vehicle must cost less than $45,000.  The program has met which great success in 19 countries, especially Europe, where cars have better fuel economy because of high government gas taxes.

This is widely seen as a bailout for closing auto dealerships owned by Chrysler and GM and the auto industry. The car does not have to made in America. This program shows that when the government is serious about getting vehicles off the road it is willing to offer direct cash payments to owners. This unfair to clean alternative fuel vehicles, which are not covered in the bill. For years the government has periodically offered tax incentives to clean vehicle purchasers, as much as $2,500. But the credit comes off your income at tax time, amounting to a little more than $200.

This shows Obama is not serious about cleaning up the environment any time soon.  The Obama Administration is settling many industry cases against the government out of Court, rather than letting the Courts dictate long and complicated policy. Most prominently is the allowance of road construction on national property in currently road-less areas, to offshore drilling in Alaska's ANEW, to allowance of mountain top coal removal in Virginia, Kentucky and Ohio. 

Environmentalists have clearly been set back so far under Obama. Another major concession in the carbon cap and trade Energy Bill is the continued and easier expansion of coal fired power plants. In order to gain support of moderate Democrats from coal producing states is the continued focus on coal, before clean coal, carbon sequestration is commercially viable, effectively increasing coal consumption between 2005 and 2020. Coal companies will be allowed to buy "paper" offsets from farmers who plant trees to remove carbon to other dubious, impossible to prove offsets. The Obama Administration is taking two steps forward and one step back on environmental policy. It appears the Energy, carbon cap and trade program may pass the House after all. The outcome in the Senate is still   unknown. Chalk up more industry wins in the long history of battles between the environment and the economy.