WELCOME TO THE WORLD OF GOVERNMENT SANCTIONED CARBON TAX
House passes “bailout bill”, with Carbon Tax credits and an entire buffet of pork attached.
See Yahoo News
See who voted yea or nay on the Emergency Economic Pork Stabilization Act of 2008 here:
H R 1424 YEA-AND-NAY
See the Carbon Tax language as of yesterday, no word yet on if it changed today. UPDATE: Final language posted below:
SEC. 117. CARBON AUDIT OF THE TAX CODE.
- (a) Study- The Secretary of the Treasury shall enter into an agreement with the National Academy of Sciences to undertake a comprehensive review of the Internal Revenue Code of 1986 to identify the types of and specific tax provisions that have the largest effects on carbon and other greenhouse gas emissions and to estimate the magnitude of those effects.
- (b) Report- Not later than 2 years after the date of enactment of this Act, the National Academy of Sciences shall submit to Congress a report containing the results of study authorized under this section.
- (c) Authorization of Appropriations- There is authorized to be appropriated to carry out this section $1,500,000 for the period of fiscal years 2009 and 2010.
More….
SEC. 115. TAX CREDIT FOR CARBON DIOXIDE SEQUESTRATION.
- (a) In General- Subpart D of part IV of subchapter A of chapter 1 (relating to business credits) is amended by adding at the end the following new section:
`SEC. 45Q. CREDIT FOR CARBON DIOXIDE SEQUESTRATION.
- `(a) General Rule- For purposes of section 38, the carbon dioxide sequestration credit for any taxable year is an amount equal to the sum of–
-
- `(1) $20 per metric ton of qualified carbon dioxide which is–
-
-
- `(A) captured by the taxpayer at a qualified facility, and
-
-
-
- `(B) disposed of by the taxpayer in secure geological storage, and
-
-
- `(2) $10 per metric ton of qualified carbon dioxide which is–
-
-
- `(A) captured by the taxpayer at a qualified facility, and
-
-
-
- `(B) used by the taxpayer as a tertiary injectant in a qualified enhanced oil or natural gas recovery project.
-
- `(b) Qualified Carbon Dioxide- For purposes of this section–
-
- `(1) IN GENERAL- The term `qualified carbon dioxide’ means carbon dioxide captured from an industrial source which–
-
-
- `(A) would otherwise be released into the atmosphere as industrial emission of greenhouse gas, and
-
-
-
- `(B) is measured at the source of capture and verified at the point of disposal or injection.
-
-
- `(2) RECYCLED CARBON DIOXIDE- The term `qualified carbon dioxide’ includes the initial deposit of captured carbon dioxide used as a tertiary injectant. Such term does not include carbon dioxide that is re-captured, recycled, and re-injected as part of the enhanced oil and natural gas recovery process.
- `(c) Qualified Facility- For purposes of this section, the term `qualified facility’ means any industrial facility–
-
- `(1) which is owned by the taxpayer,
-
- `(2) at which carbon capture equipment is placed in service, and
-
- `(3) which captures not less than 500,000 metric tons of carbon dioxide during the taxable year.
- `(d) Special Rules and Other Definitions- For purposes of this section–
-
- `(1) ONLY CARBON DIOXIDE CAPTURED AND DISPOSED OF OR USED WITHIN THE UNITED STATES TAKEN INTO ACCOUNT- The credit under this section shall apply only with respect to qualified carbon dioxide the capture and disposal or use of which is within–
-
-
- `(A) the United States (within the meaning of section 638(1)), or
-
-
-
- `(B) a possession of the United States (within the meaning of section 638(2)).
-
-
- `(2) SECURE GEOLOGICAL STORAGE- The Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall establish regulations for determining adequate security measures for the geological storage of carbon dioxide under subsection (a)(1)(B) such that the carbon dioxide does not escape into the atmosphere. Such term shall include storage at deep saline formations and unminable coal seems under such conditions as the Secretary may determine under such regulations.
-
- `(3) TERTIARY INJECTANT- The term `tertiary injectant’ has the same meaning as when used within section 193(b)(1).
-
- `(4) QUALIFIED ENHANCED OIL OR NATURAL GAS RECOVERY PROJECT- The term `qualified enhanced oil or natural gas recovery project’ has the meaning given the term `qualified enhanced oil recovery project’ by section 43(c)(2), by substituting `crude oil or natural gas’ for `crude oil’ in subparagraph (A)(i) thereof.
-
- `(5) CREDIT ATTRIBUTABLE TO TAXPAYER- Any credit under this section shall be attributable to the person that captures and physically or contractually ensures the disposal of or the use as a tertiary injectant of the qualified carbon dioxide, except to the extent provided in regulations prescribed by the Secretary.
-
- `(6) RECAPTURE- The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any qualified carbon dioxide which ceases to be captured, disposed of, or used as a tertiary injectant in a manner consistent with the requirements of this section.
-
- `(7) INFLATION ADJUSTMENT- In the case of any taxable year beginning in a calendar year after 2009, there shall be substituted for each dollar amount contained in subsection (a) an amount equal to the product of–
-
-
- `(A) such dollar amount, multiplied by
-
-
-
- `(B) the inflation adjustment factor for such calendar year determined under section 43(b)(3)(B) for such calendar year, determined by substituting `2008′ for `1990′.
-
- `(e) Application of Section- The credit under this section shall apply with respect to qualified carbon dioxide before the end of the calendar year in which the Secretary, in consultation with the Administrator of the Environmental Protection Agency, certifies that 75,000,000 metric tons of qualified carbon dioxide have been captured and disposed of or used as a tertiary injectant.’.
- (b) Conforming Amendment- Section 38(b) (relating to general business credit) is amended by striking `plus’ at the end of paragraph (32), by striking the period at the end of paragraph (33) and inserting `, plus’, and by adding at the end of following new paragraph:
-
- `(34) the carbon dioxide sequestration credit determined under section 45Q(a).’.
- (c) Clerical Amendment- The table of sections for subpart B of part IV of subchapter A of chapter 1 (relating to other credits) is amended by adding at the end the following new section:
-
- `Sec. 45Q. Credit for carbon dioxide sequestration.’.
- (d) Effective Date- The amendments made by this section shall apply to carbon dioxide captured after the date of the enactment of this Act.
SEC. 116. CERTAIN INCOME AND GAINS RELATING TO INDUSTRIAL SOURCE CARBON DIOXIDE TREATED AS QUALIFYING INCOME FOR PUBLICLY TRADED PARTNERSHIPS.
- (a) In General- Subparagraph (E) of section 7704(d)(1) (defining qualifying income) is amended by inserting `or industrial source carbon dioxide’ after `timber)’.
- (b) Effective Date- The amendment made by this section shall take effect on the date of the enactment of this Act, in taxable years ending after such date.
Michael J Bentley,
My sentiments exactly. However, it takes lot’s of money to get elected to anything above the local level. Where does that money come from? Special interests. We all know this but cannot stop it. The only way I see it is to enact term limits on our Congress and Senate . But since they are the ones who must take that action there is probably more of a chance of Al Gore giving back his Nobel prize then them ever cutting their own livelyhood. They have lured us into a sense that they can take care of us in exchange of all our money and unfortunately the majority now are willing to give up their souls to be taken care of. It has been said that democracy will always fail as soon as 51% of the people realize that they can vote themselves the property of the other 49%. I think right now it’s way over 51%. Next they will take away our guns and then we are done. So long America, it was nice to know ya.
I’m happy to say my congresslady Candice Miller stuck to her guns and voted against it. Way to go Candice!
Senator Debbie Stabenow voted against it too. Hooray Debbie.
Exactly what is wrong with Washington, was done again yesterday in the grandest way. Another corrupt bill filled with tons of pork.
Tom,
Yea, Al Gore giving back his Nobel LOL – um, oh, you weren’t joking!
My post was whistling in the dark (cold) but I had to get it off my chest. From an environmental standpoint the only candidate with some (insert body part here) is a hockey mom. And she’s had to tone down to be more PC. McCain has no clue, Biden is a joke and Obama is ignorant. Before some Ron Paul supporter jumps in, his spoken record on CO2 isn’t steller either.
There are some bright people in DC, but they are a small small minority. I just hope this ol’ mud ball chills quickly – it might take some of the breath out of the doom and gloom crowd.
MJB
Our 2 members of Congress, Paul Hodes and Carol Shea-Porter, both Dems, also stuck to their guns and voted nay, which has raised my opinion of them significantly. Having said that, I remain hopeful that the bill, despite its flaws will do what it is supposed to do, i.e. keep our floundering economy from going completely into the crapper. We’ll see.
“We know the dumbocrats are losers, but many had some faith in the ‘pubs. No longer, I’d rather vote communistic that republican ever again! Jack Koenig”
Well Jack, you have your chance this election!
Well, Americans are about to get much more patriotic (using Joe Biden’s definition). Enjoy paying more taxes!
Robert Wood wrote: Somewhow, I expect to see a larger than normal amount of congressional oustering goin on this year. The sense I get of this bailout looting is that it is incredibly unpopular amongst the American people, of both political flavors. But I am in Canada.
Robert I wish this were true but the impact from this will probably be minor when elections roll around. Primary reason is Americans seem to have lost all long term memory and can’t be angry more than a week or two before they forget what they were angry about in the first place. One major event in the news and the national ADD kicks in. Second very few in the MSM are willing to put the blame anywhere other than at the feet of the president and none of the other players who had a hand in causing this problem are stepping up to take responsibility for it. In fact i believe if some of those other responsible parties got a do over knowing what the consequences were, they would do the exact same thing because they would say “yea it’s gonna be bad but i’ll get reelected”
Here’s some more analysis of the “Christmas Tree” bill, including the real cost (more than double the supposed $700 billion).
It’s so much fun to print money (and send it to China in the form of long-term debt).
“Bailout bill loops in green tech, IRS snooping”
http://news.cnet.com/8301-13578_3-10057618-38.html
Our representatives are pretty canny when it comes to their constituencies. I doubt if any have stepped over some overly dangerous line.
Post that people can use to label WUWT’ers into various groups of social fringe dwellers — such post will only aid those of the opposing (AGW’ers) view who jump every chance to obfuscate
I have to ask this. If the first bill failed to move out of the house because Republicans didn’t like it, and the second one the passed the Senate and the House filled with pork (presumably that’s why it passed), who wanted the pork? And before you answer, pork is pork whether in the form of a tax break or funding grant.
Pamela Gray (14:59:53) : I have to ask this. If the first bill failed to move out of the house because Republicans didn’t like it, and the second one the passed the Senate and the House filled with pork (presumably that’s why it passed), who wanted the pork? And before you answer, pork is pork whether in the form of a tax break or funding grant.
– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –
I have just start to read portions concerning AGW /energy/environment — anything pertaining to usual WUWT focus.
Long way to go. Lots of stuff has been on the “books” for years / decades — being extended and/or slightly modified. They did not write this stuff last week — it was ready to go on opportunity.
A lot of the “stuff” is desirable regardless of the stated motivations for enactment into law.
The SEC. 117. Carbon audit of the tax code was going to happen anyway. Without doubt, it is going to be a regurgitation of thirty years of AGW regurgitant. They are going to be many AGW’ers extremely pissed about waiting two years to present it.
Discussion of millions of dollars worth of porkified wooden arrows and such , in my opinion, belongs not on WUWT.
What they both utterly fail on though isn’t the maths or physics, it is the total reliance on ad-hoc assumptions about the underlying mechanisms combined with exceedingly poor validation
Well, it IS rather hard to validate the future.
Pofarmer (21:03:46) :Well, it IS rather hard to validate the future.
Rather minor point –which never stopped congress in the past. 😉
Seriously, this is “stupid is as stupid does,” business as usual. Government will wax and wain — and will neither intentionally, completely, annihilate voters nor destroy the tax revenue generating economic machine.
Relative to AGW, how many other world governments have we seen proclaim x goals to reduce CO2 but, in the end, pursue a significantly smaller subset of x.?
What bothers me about this carbon stuff in the bailout bill–besides the obvious of course–is that it had already passed one chamber AND WE DIDN’T KNOW ABOUT IT.
The only reason we know now is because everyone and their cousin their cat their chimney sweep is pouring over this bill.
Well, we only have two years until the NAS report is due.
BTW, I think most of those tax extenders are legit. The Jamaican rum stuff is actually sending the taxes we get back to the island for that government to spend on infrastructure. The arrows are non-hunting arrows which means they are being excused from the excise tax on arrows used for hunting. All these extenders are just that, nothing new, just extending the credits or arrangements for another FY.
This may be slightly off topic. Or not. Anyway, the comments are interesting: click
“Canadian Researcher Captures CO2 From Air
“University of Calgary climate change researchers say they are close to figuring out how to commercialize the capture of carbon dioxide directly from the air with a simple system that could be set up anywhere in the world. ”
http://www.cbc.ca/technology/story/2008/09/30/carbon.html
Isn’t this WONDERFUL?
(no, it isn’t).
FWIW, my cats couldn’t care less. One is blind and almost deaf, and the other’s most pressing concern is which lap to attempt to sit on.
Capturing CO2 from air? Didn’t a previous thread talk about converting airborne CO2 back into gasoline? Memories fade, I recall to took about 7 million cubic feet to get the 19 lbs that a gallon of gas produces. If the good folks in the GWN can get 10x the CO2 out that they put in, that means they can move 70 million ft^3 with one gallon equivalent of gas. I’ll believe it when I see it.
Of course we need lots of carbon taxes. We just bought $700 billion worth of bad mortgages. That money has to come from somewhere.
” House Democrats Push Climate Tax While Negotiating Fiscal Bailout – They just don’t get it
” During a week where Americans were focused on perhaps the greatest economic challenges this country has faced in over a generation, House Democrats released a set of principles on October 2nd that outline an aggressive plan to cap greenhouse gas emissions.
” The plan could be even more economically restrictive than the failed Lieberman-Warner Climate Security Act, which would have cost $6.7 trillion dollars, according to the bill’s own sponsors.
” That $6.7 trillion cost would have been passed on to families and workers across the country in the form of higher gas prices, higher electricity and heating/cooling bills, more expensive consumer goods, and higher workplace costs.
” As we learned during this past summer’s debate on the failed Lieberman-Warner global warming cap-and-trade bill and with the recent victory on offshore drilling, the appetite of the American people to unlock America’s affordable energy resources is very strong. When it comes to being in touch with Americans, the House Democrats need a reality check.
“The current financial crisis only reinforces the public’s wariness about any climate bill that attempts to increase the costs of energy and jeopardizes jobs. ”
(EPW Press Blog)
http://www.junkscience.com
Markets are tanking again. Dow now down another 500.
Commodities, including the energy complex, metals, ag, are down across the board.
I well remember just six months ago that inflation was going to (literally) eat our lunch.
DE-flation is now back in force.
You know, I’m starting to wonder if – maybe – the big expensive bailout didn’t inspire a lot of confidence…
Is the glass half empty or half full?
You are all complaining about having to declare your CO2 emissions from breathing. Have you thought about the huge tax returns you could be getting if you hold your breath for a mere 7 hours a day?
I figured out I could quit my job if I can get up to 9 hours of breath holding a day. Woo hoo. No work, free money, and saving the world…
Markets eating it big time. Dow may well surpass the one-day point-drop record set just last week.
The VIX (“Volatility Index”) – a pretty good “panic indicator” – hit new record highs today.
“Colorful financial analyst” Jim Cramer was on the Today show this morning, telling his devoted followers he wanted them out of the markets…
“…“Whatever money you may need for the next five years, please take it out of the stock market right now, this week. I do not believe that you should risk those assets in the stock market right now.” ” – so sayeth Cramer
http://www.msnbc.msn.com/id/27045699/
Somebody remind me…
WHY was it so important that we had to pass the “bailout” bill (especially with most congressmen not reading it or ignoring what was in it) ?
“The United States needs a new economic stimulus plan that pumps billions of dollars into infrastructure projects and budget relief for cash-strapped state and local governments, Democratic lawmakers said on Sunday.”
http://www.newsdaily.com/stories/tre49b35b-us-financial-usa-stimulus/
The individuals in the article read like a who’s who of AGW alarmists. Not much doubt about what will happen when the Democrat’s gain a majority with a Dem president. We’re going to get change whether it works or not.
The oil companies will not be provided an incentive to drill, trillions more will be spent on programs that will not benefit anyone in the long run.. we’re all in big, big trouble.