WASHINGTON -- The automobile industry would receive free pollution credits to make electric and advanced-technology vehicles under a compromise reached by House Democrats on a bill to cut greenhouse-gas emissions.
The industry would get 3 percent of all free permits for their factories from 2012 to 2017, and 1 percent of such allowances after that through 2025, House Energy and Commerce Committee Chairman Henry Waxman said today in a statement.
The credits seek to cut business costs while companies find ways to reduce their emissions. They would eventually be phased out and sold at auction.
The agreement on allowance values will spur more innovation and new green-job creation here at home, Rep. John Dingell, D-Mich., said in a statement.
The rest of the free permits would be given to heavy manufacturers, utilities, oil refineries and others, Waxman, D-Calif., told reporters today. Utilities would get 35 percent of the total.
The provision is part of a larger bill that calls for a cap and trade system in which the government sets a national limit on greenhouse gas emissions and lowers it over time.
Some companies could buy pollution credits to cover their emissions.
Waxman scheduled a possible vote on the bill for Monday.
The compromise among Democrats lowers the goal for greenhouse gas emissions to a 17 percent reduction by 2020 from an original objective of 20 percent.
The bill will also include a fleet modernization provision in which the government would provide vouchers of up to $4,500 to customers who trade in their gas guzzlers for new fuel-efficient vehicles.