Obama Budget Projects 100 % Auction of CO2 Emissions Permits

President Obama’s budget projects that all permits to emit carbon under a cap-and-trade plan will be auctioned, a far tougher proposal than earlier congressional versions that would have initially given away a portion of the permits. The budget also sets extremely large long-term CO2 emissions reductions targets, with a 14 percent cut by 2020 and an 83 percent reduction by 2050. The budget projected that revenues from a cap-and-trade system would be used to finance $150 billion in renewable energy projects over 10 years and to allocate another $65 billion a year to lower- and middle-class taxpayers to offset higher energy costs. The Energy Department’s budget will grow significantly, from $24 billion last year to $34 billion in the current fiscal year, with much of that increase going to fund renewable energy projects. The budget of the Environmental Protection Agency will grow 34 percent, with more money for clean water projects, Great Lakes restoration, and increases in research and enforcement.