Similar To Legislation Passed Last Month By The U.S. House

A bill introduced in the United States Senate on Wednesday  would prohibit U.S. aircraft operators from participating in the European Union Emissions Trading Scheme (EU ETS). The bill was introduced by Senator John Thune (R-SD), ranking member of the Commerce Committee's Aviation Operations, Safety and Security Subcommittee. The "European Union Emissions Trading Scheme Prohibition Act of 2011" would prevent the European Union (E.U.) from adding a tax on flights traveling through U.S. airspace. Starting on January 1, 2012, all international flights operating to and from the E.U. will be included in the E.U. Emissions Trading System, including flights between the U.S. and the E.U.

Thune's legislation would enable the U.S. Department of Transportation to take necessary action to ensure America's aviation operators are not penalized by any tax unilaterally imposed by the E.U. "The idea that the European Union has the right to tax American air passengers and carriers flies in the face of our country's sovereignty," said Thune (pictured). "I reject this proposed European tax and will work with my colleagues in Congress and countless concerned stakeholders to block this tax."
 
A leading airline association estimates this European tax would cost U.S. airlines and passengers more than $3.1 billion between 2012 and 2020, which could otherwise be used for the creation of nearly 40,000 U.S. airline jobs. The European Union Emissions Trading Scheme Prohibition Act is supported by numerous airline stakeholders, including Airlines for America, Air Line Pilots Association, American Society of Travel Agents, Cargo Airline Association, General Aviation Manufacturers Association, International Air Transport Association, Interactive Travel Services Association, National Air Carrier Association, Regional Airline Association, and the U.S. Travel Association.
 
Similar legislation was introduced in the House of Representatives by Transportation and Infrastructure Committee Chairman John Mica (R-FL) and passed with overwhelming bipartisan support on October 24, 2011.

Airlines for America (A4A) issued a statement strongly supporting Thune's legislation. "We commend Senator Thune for his leadership in joining the Administration and his colleagues in the House of Representatives in opposing the application of the EU ETS to U.S. airlines, as it is both illegal and bad policy. Subjecting airlines to the EU's unilateral system will be counterproductive to helping the environment, result in the loss of U.S. jobs, and hamper airlines' ability to invest in new aircraft and continue their extensive efforts to reduce their environmental impact," said A4A President and CEO Nicholas E. Calio.

The Senate bill comes less than a week after President Obama told EU officials that that he opposes the EU scheme. The congressional action also follows the ICAO Council adoption last month of a declaration opposing the unilateral application of the EU ETS on international aviation and urging continued collaborative action on the global sectoral approach. "There is no question that this country and the rest of the world are united against the EU's unilateral and counterproductive scheme," Calio said.

FMI: http://thune.senate.gov, www.airlines.org