Red, Green, and Blue

The new president’s budget represents the climate of change Obama has brought to Washington, DC.

From reducing the deficit by 1/3 to allocating $634 billion for health care reform over the next decade, “President Obama’s new budget represents a huge break, not just with the policies of the past eight years, but with policy trends over the past 30 years,” according to Paul Krugman of the New York Times.

In addition, Obama’s budget promises to address climate change.

Obama’s budget projects revenue from cap-and-trade sales will result in $150 billion over 10 years (starting in 2012) that will be used to fund renewable energy projects.  The sale of emission permits will also create $65 billion a year to pay for middle-class tax credits.  Any additional revenue would be returned to families, communities and businesses to offset higher energy prices.  Again, this program reflects a departure from the previous administration in addressing climate change.  Krugman describes, “After years of denial and delay by its predecessor, the Obama administration is signaling that it’s ready to take on climate change,” however,  James Hansen has warned cap-and-trade is not the solution.

All pollution permits will be auctioned off under Obama’s plan with the budget projecting emissions reductions targets of 14 percent from 2005 levels by 2020.  Obama’s budget also includes an increase of 34 percent in spending for the Environmental Protection Agency for clean water projects, regulations, research and enforcement.  For once, the presidents’ budget blueprint does not ignore the environment, even if it relies heavily on cap-and-trade.

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