Massive Energy Tax Taking Shape in Congress

Rep. Henry Waxman (D-Beverly Hills), Chairman of the House Energy and Commerce Committee, announced late Tuesday that the full committee would mark up the Waxman-Markey energy rationing bill next week and that he planned to vote the bill out of committee before the Memorial Day recess which begins on 22^nd May.  Waxman also released some details of the compromise bill that he and Rep. Edward Markey (D-Mass.) have negotiated with Blue Dog and other moderate Democrats on the committee.

This bill should not be improved; it should be defeated.

Here are some of the key provisions in the new Waxman-Markey compromise energy-rationing bill:

Targets and timetables:

• 2005 greenhouse gas emissions baseline

• -17% by 2020

• -42% by 2030

• -83% by 2050

Free ration coupons:

• 35% to local electric distribution companies, phasing out in 10-15 years

• 15% to energy-intensive industries that compete with imports (steel, cement, paper, etc.), phasing out by 2% per year (as I understand it that would be 13% in year 2, 11% in year 3, etc.)

• 1% to 5% to oil refineries

• Remaining coupons would be auctioned.

Sharing the booty:

• Some revenues raised from auctioning the ration coupons would be dedicated to helping the auto industry and renewable energy.

Renewable requirements for electric utilities:

• 20% total renewables and efficiency gains

• 15% renewables by 2020

• 5% efficiency improvements by 2020

• With a 3% swing.  For example, 12% renewable plus 8% efficiency gains = 20%.

Threatening a trade war:

The President would be granted authority to levy carbon tariffs beginning in 2025.

Here’s What You Need To Know about the Waxman-Markey Bill

1. It’s a tax.

2. It’s an indirect, hidden, sneaky tax, but it’s a tax.

3. It’s a tax on energy that will raise prices on energy and all goods and services that are produced with or use energy.

4. It’s a tax that will fall more heavily on poorer people because poorer people spend a higher percentage of their incomes on energy than do wealthier people.

5. It’s not a one-time or steady tax, but a tax that will cause energy prices to increase every year.

6. It’s a tax that will destroy jobs in energy-intensive industries, which are concentrated in the States that use coal for electricity.

7. It’s a tax that will raise energy prices more in States that depend on coal for electricity.

8. It’s a tax that will create perpetual economic stagnation.