Sen. Ben Nelson, D-Neb., is expressing joy that the Senate’s proposed cap and trade legislation is off the agenda, at least for the summer.

Nelson has been an opponent of cap and trade saying it would cause energy prices, especially Nebraska’s electricity rates to go up.

Not that Nelson is opposed to cap and trade legislation. What he objects to is how the bill is written.

“It is one of those issues that must be stopped before it does irreparable harm to states like Nebraska,” he said. 

According to Nelson, cap and trade is “essentially a tax on carbon that is emitted from a variety of sources, including coal-fired power plants that provide most of the electricity we use in Nebraska.”

“ I oppose it because if it were to pass it would significantly increase the utility rates in Nebraska which would damage our economy,” he said. “ That would mean much higher electricity bills for homeowners, for businesses and for farmers who depend on reasonable electricity rates for irrigation.”

 According to Nelson, the bills would spike because Nebraska is a 100 percent public power state that cannot spread costs of cap and trade policies onto investors. Only Nebraska electricity ratepayers would pay.

“At this point, it’s difficult to see how the cap and trade system could be fixed,” he said.  “I am skeptical that putting a “cap” on greenhouse gas emissions and then having a system for power plants and others to “trade” allowances for emissions they produce—a kind of permit to emit– will work without adversely impacting Nebraska and other states that are in a similar position.” 
 
What Nelson said he does support is “broad energy legislation promoting renewable fuels, wind power, nuclear power, natural gas, and domestic oil, which could include setting reasonable targets for CO2 emissions reductions, and incentives to help America reach those cleaner air goals.”

“Obviously, in the wake of the oil spill, energy legislation should reexamine how to develop our oil resources, but with an understanding that our economy is still dependant on oil and gas and moving away from energy development here will only deepen our dependence on foreign sources of energy.” he said. 

With the U.S. economy struggling to recover from a major recession, Nelson said, “now is not the time to pursue legislation that would raise electricity rates in Nebraska and many other states, thus putting America at a competitive disadvantage with other countries and damaging the U.S. economy.”