Washington (Platts)--25Feb2009

US President Barack Obama told a joint session of Congress Tuesday that
he wants it to send him carbon cap legislation as soon as possible to "save
our planet from the ravages of climate change."

He added that America's economic recovery "begins with energy" and that
clean energy production will be a hallmark of his upcoming Thursday budget
proposal, which he said will include $15 billion a year devoted to low-carbon
energy deployment.

"I ask this Congress to send me legislation that places a market-based
cap on carbon pollution and drives the production of more renewable energy in
America," Obama said in his address.

"And to support that innovation, we will invest $15 billion a year to
develop technologies like wind power and solar power -- advanced biofuels,
clean coal and more fuel-efficient cars and trucks built right here in
America."

Obama on the campaign trail pledged to pass a cap-and-trade system on
greenhouse gases, slashing emissions 80% below 1990 levels by 2050. He also
pledged to spend $15 billion annually on advancing clean energy with an
emphasis on renewable power.

The White House is scheduled to release its budget to Congress on
Thursday. Obama said that energy, health care and education will be the three
main themes.

"To truly transform our economy, protect our security and save our planet
from the ravages of climate change, we need to ultimately make clean,
renewable energy, the profitable kind of energy," he said.

He has frequently said that his $787 billion economic stimulus plan,
passed last week, was a ?downpayment? to achieving the goal of dramatically
expanding renewable power in the US. His bill includes approximately $43
billion devoted to the task and he said he wants to double renewable energy
production over the next three years.

"We will soon lay down thousands of miles of power lines that can carry
new energy to cities and towns across this country," he said, adding that
countries like China, South Korea, Germany and Japan have all done more in
recent years to advance efficiency and renewable power.

"I do not accept a future where the jobs and industries of tomorrow take
root beyond our borders -- and I know you don't either. It is time for
America to lead again," he said.

He added that he will not abandon the auto industry despite the recession
and poor management practices. GM and Chrysler are both requesting billions
more in bailout funds to stay afloat after receiving a $17 billion cash
injection from the Bush administration.

"We should not, and will not, protect them from their own bad practices,"
he said. "But we are committed to the goal of a re-tooled, re-imagined auto
industry that can compete and win. Millions of jobs depend on it. Scores of
communities depend on it. And I believe the nation that invented the
automobile cannot walk away from it."
--Alexander Duncan, alexander_duncan@platts.com