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May 19, 2009 at 11:12 am

UAW backs climate change bill, with industry aid

Washington -- The United Auto Workers Monday blessed House Democrats' plan to limit greenhouse gas emissions, after congressional leaders agreed to add billions of dollars to support struggling automakers.

The endorsement came as House Democrats opened debate on a landmark climate change bill and culminates a steady shift on environmental issues by the UAW, which for decades fought efforts to boost fuel efficiency.

The 946-page draft House climate change bill would provide the struggling auto industry with billions of dollars to develop advanced vehicle technology.

It also requires electric utilities to plan for accommodating large-scale use of plug-in electric vehicles.

"We are especially pleased that this program would require electricity sources, fuel producers and importers, mobile sources and industrial stationary sources to come to the table to participate," Alan Reuther, the UAW's legislative director, wrote in a letter to Congress endorsing the legislation.

State and local governments could apply for financial assistance in creating the infrastructure for plug-ins. Manufacturers could apply for aid in producing them and in buying the expensive batteries that would be the vehicles' heart.

The bill would give automakers 3 percent of the federal government's revenue from carbon emissions permits from 2012 through 2017 -- allowances that could be worth more than $10 billion, according to analysts at consulting firm PointCarbon. That money would be routed through government programs to encourage advanced technology vehicles.

After 2017, and through 2025, the industry would receive 1 percent of allowances.

The climate bill would also double the amount authorized for the auto retooling program to $50 billion. In September, Congress approved $25 billion in low-cost retooling loans, but the Energy Department has yet to award any of the money.

Reuther said the legislation "will help to accelerate the introduction of advanced vehicles while protecting American autoworkers' jobs.

Republicans vow to oppose legislation they say would kill jobs by raising energy prices.

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