By 2013, President Obama wants to reduce the government deficit to $533 billion, or half its current level. To accomplish this, he will, in part, lean on a proposed cap on greenhouse gas emissions, according to the New York Times.
Companies that exceed the emissions cap would be required to buy government permits, a move that by 2020 may generate $300 billion a year.
Because energy companies likely would pass these costs on to customers, the government would use most of the related revenues to help families offset higher utility bills. What remains from the windfall would pay for his proposed $15 billion a year to develop alternative energy, the Times reported.
The Obama administration first hinted at plans to charge companies for excessive emissions in late January.
Since taking office, the Obama Administration has began programs that ultimately will counter some Bush-era policies, such as an Environmental Protection Agency proclamation to prevent tying permits to limits on greenhouse gases.
The EPA recently said it would begin regulating greenhouse gas emissions, among other moves.
More details on Obama’s budget plans are expected Feb. 26, when the White House will unveil its 150-page “Economic and Budget Policy” report.