cap and trade

Canadian Election Results: No Cap-and-Trade, No Carbon Tax

by Myron Ebell on May 3, 2011

in Blog, Features, Politics

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The stunning victory by Stephen Harper’s Conservatives in Canada’s election means the death of cap-and-trade or a carbon tax in Canada.  The Conservative Party’s platform firmly opposed both cap-and-trade and carbon taxes. The Liberal Party, which was annihilated in the election, equally strongly supported imposing a cap-and-trade scheme to reduce greenhouse gas emissions.

Conservatives won  a clear majority of 167 seats in the 308-member federal Parliament.  They had formed a minority government since 2007.  For the first time in Canadian history, the Liberal Party dropped to third place with 34 seats.  The hard left New Democratic Party (NDP) wiped out the Bloc Quebecois in Quebec and will become the official opposition with 102 seats.  The NDP and the Bloc Quebecois also support cap-and-trade.  The Green Party won its first seat in Parliament.

This is another clear sign that public support for cap-and-trade and other energy-rationing policies is waning.  Cap-and-trade has been dead in the United States since the Waxman-Markey bill narrowly passed the House of Representatives on June 26, 2009.  And in Australia, the Labour Party government is in deep trouble as a result of proposing a carbon tax.  The global warming fad appears to be fading fast.

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Did the Senate “Definitively” Reject Efforts to Rein in EPA? A Commentary on Lautenberg’s Rant

by Marlo Lewis on April 18, 2011

in Blog, Features

On April 6, 2011, 50 Senators voted for S. 482, the Energy Tax Prevention Act, a bill to stop EPA from ‘legislating’ climate policy under the guise of implementing the Clean Air Act. Supporters needed 60 votes to pass the bill. “Senate Definitively Beats Back Efforts to Restrict EPA Climate Rules,” declared the title of Inside EPA’s column (April 8, 2011) on the vote. That is spin masquerading as news.

Let’s review some not-so-ancient history. In 2003, Sens. John McCain (R-Ariz.) and Joe Lieberman (D-Conn.) introduced S. 139, the Climate Stewardship Act, a carbon cap-and-trade bill. It was defeated by a vote of 43-55. In 2005, McCain and Lieberman introduced a revised version, S. 1151, the Climate Stewardship and Innovation Act. It went down in flames by a bigger margin: 38-60. In 2007, McLieberman introduced yet another iteration (S. 280), which never even made it to the floor for a vote.

In three different Congresses, the McLieberman bill died in the Senate. After these continual defeats, did Inside EPA, the bill’s sponsors, or any environmental group declare that the Senate “definitively” rejected cap-and-trade?

Of course not. Yet S. 482 garnered more votes than any cap-and-trade bill the Senate has ever debated. Sponsors of S. 482 say they will press for other opportunities to hold additional votes. The day after the Senate vote, the House passed an identical measure (H.R. 910) by a vote of 255-172, a large victory margin that should improve prospects for eventual passage in the Senate. 

Another vote could occur as early as next month when Congress debates whether to raise the national debt ceiling. House Speaker John Boehner (R-Ohio) suggested last week that legislation to raise the debt ceiling — a key priority for Team Obama and Senate Majority Leader Harry Reed (D-Nev.) – might have to include curbs on EPA’s regulatory authority (The Hill, April 16, 2011). 

Since reports of S. 482′s demise are greatly exaggerated, it is useful to examine the tactics of leading Senate opponents. Previous posts review California Sen. Barbara Boxer’s tirade against S. 482 and Montana Sen. Max Baucus’s alternative legislation to codify EPA’s ever-growing ensemble of greenhouse gas (GHG) regulations. Today’s post offers a running commentary on New Jersey Sen. Frank Lautenberg’s floor statement opposing S. 482 (Congressional Record, April 6, 2011, pp. S2170-71). If Lautenberg’s rant is the best opponents can do, they have “definitively” lost the debate. [click to continue…]

Routed Greens Retreat

by Marita Noon on April 11, 2011

in Blog, Features

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Climate change is real. Climate change is manmade. Manmade climate change has happened within the last twenty-four months.

Leaders in the climate change debate have controlled the message for forty years since the adoption of the Clean Air Act. They have “approached climate change politics with an air of disdain,” according to Fred Krupp, President, Environmental Defense Fund (established in 1967).

Krupp addressed the changing political climate at Fortune Magazine’s Brainstorm Green Conference in early April and admitted that there is a “newfound hostility to climate policy.” He advised the environmental community to be “more humble” and “less arrogant.” He acknowledged the failure of a comprehensive energy and/or cap and trade policy.

Krupp is correct. With the falsification of climate records exposed—known as Climategate, the American people now see climate change as merely hysteria. Polls show they do not view it as a real problem that we need to address now.

At the same conference, Jim Rogers, CEO of Duke Energy, agreed. He said, “Cap and trade cannot be sold and must be reinvented,” adding that it was going to be hard to “resurrect cap and trade.”

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House Passes Energy Tax Prevention Act, 255-172

by Myron Ebell on April 7, 2011

in Blog, Features, Politics

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The House of Representatives this afternoon passed H. R. 910, the Energy Tax Prevention Act, by a vote of 255 to 172.  Nineteen Democrats voted Yes.  No Republicans voted No.  This is a remarkable turnaround from the last Congress when on 26th June 2009 the House voted 219 to 212 to pass the Waxman-Markey cap-and-trade bill.

The Energy Tax Prevention Act, sponsored by Rep. Fred. Upton (R-Mich.), the Chairman of the Energy and Commerce Committee, would prohibit the Environmental Protection Agency from using the Clean Air Act to regulate greenhouse gas emissions and thereby put a potentially huge indirect tax on American consumers and businesses.   Coal, oil, and natural gas produce carbon dioxide, the principal greenhouse gas, when burned.  Those three fuels provide over 80% of the energy used in America.  Thus regulating carbon dioxide emissions essentially puts the EPA in charge of running the U. S. economy.

This is just the first step in stopping the Obama Administration’s attempt to raise energy prices .  The House bill now heads to the Senate, where yesterday an attempt to add the Energy Tax Prevention Act (introduced in the Senate as S. 482 by Senator James M. Inhofe of Oklahoma) as an amendment to another bill was defeated on a 50-50 vote.  Minority Leader Mitch McConnell’s amendment would have required 60 votes to be attached to S. 493.  Four Democrats joined 46 Republicans in voting for the amendment–Senators Joe Manchin of West Virginia, Mary Landrieu of Louisiana, Ben Nelson of Nebraska, and Mark Pryor of Arkansas.  Senator Susan Collins of Maine was the only Republican to vote No.

The strong House vote in favor of the Energy Tax Prevention Act should build new momentum to pass it in the Senate later this year.  Of course, the White House has already issued a veto threat, which shows that President Obama is not interested in creating new jobs and restoring prosperity to America.  Congress has now rejected cap-and-tax resoundingly, but the President still hopes to achieve through backdoor regulation his goals of skyrocketing electric rates and gasoline prices at the $10 a gallon European level.

Memo to WaPo: Opposition to Cap-and-Trade Is Bipartisan

by William Yeatman on April 1, 2011

in Blog, Features

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Yesterday, Washington Post blogger Ezra Klein posted about the President’s pitch for a so-called “Clean Energy Standard.” I don’t recommend his explanation; for a much more accurate description of the CES, check out this blog, by my colleague Marlo Lewis.

In this post, I intend only to rebut Klein’s mistaken claim that Congressional opposition to cap-and-trade is partisan. In fact, opposition to energy rationing schemes is one of the very few issues that enjoys support on both sides of the aisle in the Congress.

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California Judge Halts Implementation of Climate Change Policies

by Brian McGraw on March 22, 2011

in Blog, Features

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Via the Los Angeles Times.

Ironically, the cap-and-trade program has been temporarily halted due to a lawsuit brought forth by other environmental groups, concerned that the CARB did not sufficiently consider alternatives to a C&T program such as a direct carbon tax:

The groups contend that a cap-and-trade program would allow refineries, power plants and other big facilities in poor neighborhoods to avoid cutting emissions of both greenhouse gases and traditional air pollutants.

“This decision is good for low-income communities like Wilmington, Carson and Richmond,” said Bill Gallegos, executive director of Communities for a Better Environment. “It means that oil refineries, which emit enormous amounts of greenhouse gases and contribute to big health problems, cannot simply keep polluting by purchasing pollution credits, or doing out of state projects.”

This logic is odd, as even under a cap-and-trade program, oil refineries won’t simply disappear. It’s possible that they might be required to reduce their own pollution rather than buying permits, but this speaks mainly to the design of the cap-and-trade program. A small carbon tax would likely have the same effect, and if the design of the cap-and-trade program is any hint, it would be difficult to pass a significant carbon tax.

However, given that the program involves distributing initial permits to many companies for free (which, according to Wikipedia, will cover 90% of their emissions), a pure carbon tax would involve less corporatism.

Do recall the CARB press release touting the economic benefits of this program:

The economic analysis compares the recommendations in the draft Scoping Plan to doing nothing and shows that implementing the recommendations will result in:

  • Increased economic production of $27 billion
  • Increased overall gross state product of $4 billion
  • Increased overall personal income by $14 billion
  • Increased per capita income of $200
  • Increased jobs by more than 100,000

and subsequent commentary offered by peer review (many of whom support the program, none of whom buy into the free-lunch aspect):

Professor Robert Stavins, the Director of Harvard’s Environmental Economics Program:

I have come to the inescapable conclusion that the economic analysis is terribly deficient in critical ways and should not be used by the State government or the public for the purpose of assessing the likely costs of CARB’s plans. I say this with some sadness, because I was hopeful that CARB would produce sensible policy proposals analyzed with sound scientific and economic analysis.

 

Update on the States

by William Yeatman on February 28, 2011

in Blog, Politics

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Louisiana

Three weeks ago, a federal judge in Louisiana found the Department of the Interior in contempt for its moratorium on oil and gas drilling in the Gulf of Mexico enacted in the wake of last year’s BP spill. As a result of the ruling, the government will have to pay the plaintiff’s legal fees, but it didn’t impact the moratorium, which was lifted on October 22, 2010. Despite the end of the de jure moratorium, the Obama administration has kept in place a de facto moratorium through bureaucratic foot-dragging.

Two weeks ago, the same U.S. District Judge, Martin Feldman, lifted this de facto moratorium, by granting a preliminary injunction requiring that the Interior Department act within 30 days on five pending permit applications. According to Judge Martin’s ruling, “Delays of four months and more in the permitting process, however, are unreasonable, unacceptable and unjustified by the evidence before the court.”

New Hampshire

By a 246 to 104 vote, the New Hampshire House of Representatives last week passed HB 519, legislation that would withdraw New Hampshire from a regional energy-rationing scheme known as the Regional Greenhouse Gas Initiative. Governor John Lynch (D) promised to veto the bill before it was introduced, but this week’s vote is veto-proof. The State Senate is expected to pass HB 519 with enough votes to overturn the Governor’s promised veto.

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Update on the States

by William Yeatman on February 22, 2011

in Blog, Politics

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New Hampshire

Legislation that would withdraw New Hampshire from a regional energy-rationing scheme gained momentum last week. HB 519, which would pull New Hampshire out of the Regional Greenhouse Gas Initiative, a cap-and-trade for 10 northeastern States, was approved by the House Science Technology and Energy Committee and endorsed by House Speaker William O’Brien. Two weeks ago, Governor John Lynch (D) preemptively threatened to veto the bill, but Republicans have a veto-proof majority in the State Legislature, so if they stick together, they can end this energy tax.

Kentucky

Outrage at the EPA’s campaign against coal is bipartisan in Kentucky. Last month, a top Democratic lawmaker, Jim Gooch, called for “secession” from the green regulatory state. Last week, by an overwhelming bipartisan vote, the State Senate Natural Resources and Energy Committee passed a bill that would make Kentucky a “sanctuary state” out of reach of the EPA’s “overreaching regulatory power.” The symbolic legislation is expected to easily win passage in the full Senate.

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Energy Policy: Top 5 Worst Sitting Governors/Governors-elect

by William Yeatman on December 28, 2010

in Blog

In an earlier post, I listed the top five worst governors on energy policy. Alas, four of the five were lame ducks, which means that my original list had a very limited shelf life. With that in mind, I made a new list. This one is limited to sitting governors and governors-elect, so it should remain relevant for the foreseeable future.

And so, without further ado, THE TOP FIVE WORST GOVERNORS ON ENERGY POLICY….[cue drum roll]…

5         Kansas Governor-elect Sam Brownback

Sam Brownback has yet to serve a day as Governor, but he earned a place on this list for a particularly egregious mistake he recently committed while representing Kansas in the U.S. Senate.  It happened late last July. At the time, with an election looming, Senate majority leader Harry Reid decided that to drop debate on a Soviet-style renewable energy production quota, known as a Renewable Electricity Standard. Cap-and-trade had already died in the Senate, and the Congressional calendar was nearing its end, so Reid’s decision to abandon a RES meant that the 111th Congress would avoid the worst ideas in energy policy. Then, Sen. Sam Brownback, in an apparent effort to snatch defeat from the jaws of victory, announced that he would introduce aRES. Thankfully, Brownback’s proposal was ignored.

4.       New Jersey Governor Chris Christie

Christie’s skepticism of global warming alarmism is great. What’s not so great is his continued participation in a regional cap-and-trade energy rationing scheme. For whatever reason, the climate skeptic sounding governor has yet to pull his state out of the Regional Greenhouse Gas Initiative, the aforementioned energy tax.

3.       Massachusetts Governor Deval Patrick

For Massachusetts Governor Deval Patrick, climate policy is all about style over substance. In one sense, that’s a good thing, because Patrick (like me) has no interest in expensive energy policies.  In 2008, for example, Gov. Patrick championed the Global Warming Solutions Act, which, according to the Governor’s press release, requires emissions reductions 25% below 1990 levels by 2020. That sounds like a big commitment, but when you read the fine print, it turns out that the legislation mandates emissions reductions of only 10% below 1990 levels. Moreover, the State’s business-as-usual future is projected to reduce emissions 3% below 1990 levels by 2020. And when you account for federal and state policies already in place, Massachusetts is on track to reduce emissions 18% below 1990 levels by 2020. The upshot is that the Governor’s climate plan is pointless, which is probably the reason why his website’s “key priorities” page makes no mention of global warming. While I appreciate the Massachusetts Governor’s aversion to expensive energy climate policies, by enacting  long term, legally binding emissions reductions targets, he created a powerful tool with which environmentalist lawyers can gum up economic activity.

2.       Maryland Governor Martin O Malley

Governor Martin O Malley wants his constituents to believe that they can have their cake and eat it, too, when it comes to climate change mitigation. In 2009, Governor O Malley sponsored the Greenhouse Gas Reductions Act, which requires emissions reductions 25% below 2006 levels by 2020. Yet the law requires that any emissions reductions strategy also, “produce a net economic benefit to the State’s economy and a net increase in jobs in the state.” Of course, these are mutually exclusive propositions. No matter how much politicians blather on about “green jobs,” the fact remains that the price of “doing something” about climate change is forsaken economic growth. To be sure, O Malley ensured that he wouldn’t be the one to square this circle. The law postpones any meaningful requirement until after the Governor is safely out of office.

1.       California Governor-elect Jerry Brown (the #1 worst by a landslide)

Californians will rue the day they elected Jerry Brown for a second stint in the Governor’s mansion. He is exactly the wrong person at the exact worst time. The start of Brown’s term coincides the implementation phase of the 2006 Global Warming Solutions Act, which grants the state executive virtually unlimited authority to reduce greenhouse gas emissions 20% below 1990 levels by 2020. Governor-elect Brown has given every indication he will use this unprecedented expansion of authority in an imprudent manner. In the 1970s, when he was last governor, Brown refused to allow new generation resources to be built in the State, claiming instead that energy efficiency regulations would so diminish energy demand that no new power plants would be needed. Of course, he was wrong, and the policies he put in place led directly to the California energy crisis in 2000/2001. During the Schwarzenegger Administration, Jerry Brown served as Attorney General, and in that capacity he sued California counties for failing to take climate change mitigation into account in their long term growth strategies. It is difficult to overstate what trouble lies ahead for California.

Energy Policy: Top Five Worst Governors in America

by William Yeatman on December 14, 2010

in Blog

5.       New Jersey Governor Chris Christie
Christie’s skepticism of global warming alarmism is great. What’s not so great is his continued participation in a regional cap-and-trade energy rationing scheme. For whatever reason, the climate skeptic sounding governor has yet to pull his state out of the Regional Greenhouse Gas Initiative, the aforementioned energy tax.

4.       Florida Governor Charlie Crist (lame duck)
In 2007, Crist signed a series of environmentalist executive orders, which, thankfully, never came to fruition because they were spurned by the State Legislature. Crist earned his spot on this list for his invertebrate take on offshore drilling. When he campaigned for Governor, he opposed offshore drilling; when gas prices spiked in the summer of 2008, he supported drilling; and after the Gulf oil spill this past summer, he reverted back to opposing the practice.

3.       California Governor Arnold Schwarzenegger (lame-duck)
As I’ve explained here, here, and here, the Governator’s environmentalist pandering is empty blathering. For all the talk about California going green, the fact of the matter is that California’s environmentalist energy policies have been ineffectual at achieving anything other than higher energy prices. Rather than environmentalist accomplishments, Schwarzenegger’s only lasting legacy will be the almost-unlimited power he has bequeathed to his successor, Governor-elect Jerry “Moonbeam” Brown. Starting in 2011, the law accords the Governor amorphous, yet absolute, authority to mitigate climate change.

2.       New Mexico Governor Bill Richardson (lame duck)
Using authority derived from 1978 state law, New Mexico Governor Bill Richardson (D) last month imposed a cap-and-trade energy rationing scheme. The lame-duck Governor enacted the energy-rationing scheme administratively on November 2, the same day that voters indicated their displeasure with expensive energy climate policies by electing Susana Martinez (R) to succeed Richardson. She had campaigned against cap-and-trade. To be sure, Richardson’s energy policy is largely toothless; nonetheless, the executive power grab is disconcerting.

1.       Colorado Governor Bill Ritter (lame duck)
It will take a generation for Coloradans to undo the harm inflicted by the Governor Bill Ritter’s much-ballyhooed “New Energy Economy.” At Ritter’s behest: the General Assembly changed the mission of state utilities from providing “least cost” electricity, to fighting climate change; the Public Utilities Commission allowed the nation’s first carbon tax; and Department of Public Health and Environment exaggerated the threat of federal air quality regulations in order to justify legislation that picks winners and losers in the electricity industry.

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