Lawmakers act to skirt EU emissions plan

— Congress on Tuesday stepped in to protect U.S. airlines from having to pay into a European Union program to cut emissions that its critics say is unilateral and illegal.

House action to pass the bill came a day after the EU, facing protests from numerous countries and a possible trade war, said it was postponing enforcement for non-EU airlines.

Lawmakers, while welcoming the EU action, said it was still necessary for Congress to ensure that U.S. airlines won’t get taxed by the EU in the future. “The EU’s announcement still does not recognize that its system is illegal and that a global solution, not just one deemed acceptable by the EU, must be the path forward,” said Sen. John Thune. R-S.D., sponsor of the bill in the Senate with Sen. Claire McCaskill, D-Mo.

“We want a long-term solution” to the emissions problem, said House Transportation Committee Chairman John Mica, R-Fla. “But we will not allow the United States to be held hostage.”

The House originally passed the bill a year ago. The modified Senate bill, which gives the transportation secretary authority to exempt U.S. carriers from the EU Emissions Trading Scheme if it is in the public interest, passed in September, and Monday’s voice vote by the House to accept the Senate bill sends it to President Barack Obama for his signature.

The EU cap-and-trade program began in 2005 with the capping of carbon-dioxide emissions from power plants, refineries, steel mills and other industrial producers. From January this year it was expanded to include all airlines flying into and out of Europe. Airlines are issued permits to emit a certain amount of carbon dioxide. They can buy more credits if they emit more than their allotted amount or sell credits if they use less.

U.S. airlines complained that they would be charged even for the emissions discharged over the United States or the Atlantic on their way to European destinations. The U.S. industry says it would cost the industry some $3.1 billion between 2012 and 2020. The airlines have begun reporting and setting aside allocations under the program, but actual payments were to have started next April, a date now extended because of the EU’s announcement Monday.

The Obama administration has joined Congress in opposing the EU emissions program.

POLAR BEARS, TRADE

In its first roll call since September, the Senate voted 92-5 on Tuesday to debate a bill to ease restrictions on hunters and fishermen and allow 41 U.S. hunters to bring home polar bear carcasses trapped in Canada because of a ban on trophy imports.

Senate Majority Leader Harry Reid, D-Nev., immediately moved to block Republicans from amending the bill, potentially stalling further action on the bill for days.

Democratic Sen. Mark Pryor and Republican Sen. John Boozman, both of Arkansas, voted to advance the bill.

Crucial in the House this week is passage of legislation that would end Cold War trade restrictions so U.S. exporters can take advantage ofthe lowered tariffs and greater market access that accompany Russia’s entry into the World Trade Organization.

A f ive-year Farm Bill passed by the Senate and by a House committee last summer will either have to be extended into next year or passed in the remaining weeks of the session. The 2008 Farm Bill expired Sept. 30.

VETERAN BENEFITS TO RISE

The Senate sent the White House a bill giving nearly 4 million veterans and survivors a 1.7 percent increase in their monthly benefit payments next year.

The normally routine measure was delayed for weeks because an unidentified Republican senator objected to it.

That objection was lifted, without explanation, when Congress returned this week. The Senate then acted quickly to ensure that checks issued beginning in January reflect the adjustment for the higher cost of living.

The House approved the measure in July.

PELOSI ANNOUNCEMENT

Democratic leader Nancy Pelosi said she’ll announce today whether she’ll continue in her current position or step down after her party failed to gain the 25 seats it needed to win the House majority.

When a few undecided races are called, Democrats will gain less than half of that number. But Pelosi, who raised millions of dollars to put Democrats back in power, has refused to say whether she’ll relinquish or keep her leadership post, serve out thetwo-year term to which she was just elected or retire.

INDEPENDENT UNDECIDED

Independent Sen.-elect Angus King of Maine said he probably won’t keep people guessing long about which party he will align himself with.

The former governor said he’s trying to make a decision on which party to caucus with in time for the leadership votes both parties will hold today.

Information for this article was contributed by Jim Abrams, Donna Cassata, Mary Clare Jalonick and Andrew Miga of The Associated Press.

Front Section, Pages 2 on 11/14/2012

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