Obama Budget Projects $624 Billion In Climate-Change Revenues

WASHINGTON -(Dow Jones)- The Obama administration projected on Monday in a detailed version of its fiscal 2010 budget proposal that a law to combat climate change would raise $624 billion over 10 years.

The White House said that most of the money - about $504 billion - would be used to make permanent a tax credit that provides working individuals as much as $400 and working families as much as $800. The tax credit was put into place earlier this year as part of an economic stimulus package, and starts to phase out when individual income reaches $75,000 or at $150,000 for married couples.

About $120 billion - or $15 billion a year - would be used to fund investments in clean energy research, development, adaptation and climate science, beginning in fiscal 2012. Any additional money raised beyond the $624 billion would be used to compensate vulnerable households communities, and businesses for increased energy costs, the administration said.

Separately, the Obama administration said, as it had earlier this year, that it wants to take away $31.5 billion in tax breaks from oil and gas companies. The largest item would involve repeal of a lucrative deduction for domestic manufacturers, part of the 2004 "American Jobs Creation Act," which would cost the industry $13.3 billion over 10 years. It also seeks to raise $5.3 billion over 10 years from a tax for offshore oil and gas production.

The Obama administration also wants to raise the fees charged for issuing some permits to oil and gas companies. Though a 2005 law prohibits the Bureau of Land Management from implementing new permitting charges, the U.S. has been charging such comparable fees under 2008 and 2009 spending measures. The Obama administration wants to end the ban permanently. It hopes to raise $46 million a year through the new fees.

The Obama administration also proposes inspection fees for oil and gas companies operating in U.S. coastal waters. The fees would be based on the number of oil and gas wells per facility, and are expected to generate $10 million in fiscal 2010. The government said that Minerals Management Service inspections are expensive, including the costs of as much as $20 million for helicopters, and that the fees will result in offshore developers funding about one-fourth of inspection costs.