It seems our future is being bargained away for a few pieces of silver as this passage from the article indicates. Those of you that have an interest in this, now is the time to write and call your U.S. representative. – Anthony
While Shimkus acknowledged that closed-door negotiating was “just a way of doing business” in Congress, he said offering emission allowances for votes may take the process beyond ethical boundaries.
From the Washington Examiner: To get votes, Waxman offers cap-and-trade breaks
By: Susan Ferrechio
Chief Congressional Correspondent
04/23/09
 |
| Rep. Henry Waxman, D-Calif., has led efforts to entice votes for the Democratic energy bill by giving some oil refineries favorite treatment in the cap and trade system. |
In exchange for votes to pass a controversial global warming package, Democratic leaders are offering some lawmakers generous emission “allowances” to protect their districts from the economic pain of pollution restrictions.
Rep. Gene Green, D-Texas, represents a district with several oil refineries, a huge source of greenhouse gas emissions. He also serves on the House Energy and Commerce Committee, which must approve the global warming plan backed by President Barack Obama.
Green says Rep. Henry Waxman, D-Calif., who heads the panel, is trying to entice him into voting for the bill by giving some refineries favorable treatment in the administration’s “cap and trade” system, which is expected to generate hundreds of billions of dollars over the coming years. Under the plan, companies would pay for the right to emit carbon dioxide, but Green and other lawmakers are angling to get a free pass for refineries in their districts.
“We’ve been talking,” Green said, referring to a meeting he had with Waxman on Tuesday night. “To put together a bill that passes, they have to get our votes, and I’m not going to vote for a bill without refinery allowances.”
Rep. Joe Barton, R-Texas, the top Republican on the energy panel, said Waxman and others are also dangling allowances for steel and coal-fired power plants to give political cover to Democrats whose districts rely on these companies.
Democrats so far have been unable to get enough support from their own members to pass the bill out of a small global warming subcommittee because most Republicans and many Democrats say the plan will raise energy rates, destroy jobs and increase prices on manufactured goods.
Republicans said Waxman and subcommittee chairman Ed Markey, D-Mass., are calling Democrats into their offices and offering allowances, also called credits, in exchange for votes.
Waxman told The Examiner he was not trading votes for allowances.
“That is what the Republicans are saying, but that is not accurate,” he said. The bill left out specifics on allowances “in order to be able to have discussions on how best to ease the transition for various geographical regions and ratepayers.”
“I will politely disagree,” said energy committee member John Shimkus, R-Ill., who insisted Waxman “is calling members into his office to try to get their vote, and that will be based on the credits they are offering.”
While Shimkus acknowledged that closed-door negotiating was “just a way of doing business” in Congress, he said offering emission allowances for votes may take the process beyond ethical boundaries.
“We are talking real dollars here, real shareholder wealth,” Shimkus said, “and we are not being given the time to analyze these credits.”
Environmentalists and free-market advocates say the credits will favor struggling, out-of-date operations.
“We are going to have electricity that is dirtier because the allowances are going to be misallocated,” said Robert Michaels, an economics professor at California State University and senior fellow for the Institute for Energy Research.
Read the full article here (h/t to Ron de Haan
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A bit off-topic but worth looking at: this is a talk about global warming, energy policy and cap-and-trade given by the CEO of a natural gas company to a university audience.
http://www.fcpp.org/pdf/UVU%20and%20BYU%20speech.pdf
I think this was quite balanced and well articulated – very influential in my opinion – I certainly hope more of these kinds of talk are being given to university students.
Ok, yeah, it was slanted to how great natural gas is and all that – but what would you expect from the CEO of a NG company?
The american voted for the Democrates, it was their choice! My pity is very small for the americans now.
Waxman bribes Mr. Gene Green?
He can’t bribe me though.
Retired Engineer:
I agree with you, that politics is conducted with such deals as this post describes. This is nothing new.
Most laws that impact people/industries have been done this way, with the closed door sessions and agreements. How many laws are passed with so-called “loopholes?” How did those loopholes get in there?
What the public sees in the hearings, debates on the floor, and the voting is just for show. The deals have been made long before.
Elected officials stick up for their constituents as much as they can without losing political clout, and the next election. But, the electeds need other members’ votes to get their own initiatives passed. So each elected must give a little here or there to obtain the votes necessary for his/her initiative. This puts each elected official in a tough spot: if he/she does not cooperate with at least some of the others, nobody votes for his/her initiatives, and he/she is seen as ineffective and loses the next election.
As some sage said, It is not a good idea to watch sausage or laws being made. (Mark Twain, maybe?)
A rather interesting, and very similar, situation is underway at this moment in Southern California, specifically the region governed by the South Coast Air Quality Management District, or SCAQMD. This is the area including Los Angeles and surrounding communities. Under a system very similar to cap-and-trade, the SCAQMD issues permits to pollute, all according to various federal and state laws.
Recently (2008), an environmentalist group, NRDC, sued SCAQMD, claiming that their “bank” of emissions credits held invalid credits. Emissions credits are those that are returned to the SCAQMD when some facilities cease operation, or otherwise improve their operation so that less pollution is emitted. Such events happen regularly, because the laws require an upgrade to a facility to use best available control technology. As the years pass, worn out equipment is replaced with new, less polluting equipment, and the emissions savings can be saved in a company’s private “bank account” or returned to SCAQMD. However, to be re-issued to a new entity, the “banked credits” must meet certain standards, such as being real, verifiable, etc.
NRDC won the lawsuit, and roughly 80 percent of the SCAQMD’s banked credits were declared invalid by the court.
The practical result of the court’s decision is that literally thousands of existing construction projects, including new facilities, and upgrades to old facilities, are on hold because sufficient emissions permits are lacking. Planned projects are also on indefinite hold, and no one really knows how many of those exist.
All of this is a long way of saying that the SCAQMD is seeking a legislative remedy, so that the court’s ruling becomes moot. The jockeying for position while these bills (two are under consideration) is exactly what this post describes: interested parties meet with elected officials to make their case as to how the law should be written, and who should receive favorable treatment.
Sources for all this are these:
California Bills SB 696, and AB 1318
http://www.leginfo.ca.gov/pub/09-10/bill/sen/sb_0651-0700/sb_696_bill_20090413_amended_sen_v98.html
http://www.aroundthecapitol.com/billtrack/text.html?file=ab_1318_bill_20090227_introduced.html
SCAQMD website:
http://www.aqmd.gov/permit/docspdf/PermitMoratoriumLetterandFAQ.pdf
Let me get this straight.
1. The economy is in a deep recession.
2. The US budget will balloon.
3. We are in the middle of a global credit crisis.
4. Taxes are planned to increase.
5. European leaders are warning of social unrest.
6. We now have the threat of an influenza epidemic.
7. Politicians now want to throw in cap and trade.
Can political leaders get any more embicilic than that?
HELLOOOOOOOOOOOOOOOOO!
These a$$—- are going to overreach, and the tea parties of early April are going to look like picnics compared to what is coming if these embicile politicians don’t come out of their stupor.
Anarchy and martial law next year? Don’t rule it out.
Really, it makes my blood boil just thinking about how these politicians think they can regulate us into submission. I’m not going to take it.
Johnny Honda,
Unfortunately, I have to agree with you.
Indeed idiots have to face the consequences of their stupid, dumb decisions. It’s just too bad that the minority of sane Americans are going to have to bear the pain too.
Most Revolutions are painful. Hopefully Americans will not only boot these oppressing little dwarf politicians out of office, but also run them out of town too.
I ought to be careful, I suppose. Napolitano has probably got an eye on me.
First time I ever been apprehensive in speaking my mind.
These little Waxman Napoleans are dangerous. Really.
AKD (20:43:37) :
kim (17:13:34) :
global cooling, and if the globe continues to cool(who here doubts that very much?)
Many. Last time I checked this was not a global cooling fear mongering site.
We humans, idiots that we are, seem to be suffering under two illusions: first, that the planet is warming dangerously, and will continue to do so with disasterous effects, and second, that it is we humans who are causing it, through our use of fossil fuels, and can therefor stop it by switching to alternative energies such as wind and solar. We humans are completely wrong though, on both counts. Not only are we planning for the wrong change of climate, but we are foolishly wasting multi-billions, with plans to waste trillions switching our energy systems to much more costly, and less efficient ones. This will have disasterous effects on world economies already suffering at this point, as Kim pointed out.
We humans are about to get sucker punched by Nature, while we are busy taking off our protective gear
Somehow the notion of allowances and the trading of them for much needed votes seems eerily similar to the indulgences to which Martin Luther objected so strongly in 1517.
Perhaps AGW is a religion after all – it sure shows the trappings of one.
Johnny Honda (01:55)
When Ed Koch lost his election a reporter asked him, “What now.”
Koch replied, “The people have spoken, and now they must be punished.”
AKD (20:43:37) :
kim (17:13:34) :
global cooling, and if the globe continues to cool(who here doubts that very much?)
Many. Last time I checked this was not a global cooling fear mongering site.
We humans, idiots that we are, seem to be suffering under two illusions: first, that the planet is warming dangerously, and will continue to do so with disasterous effects, and second, that it is we humans who are causing it, through our use of fossil fuels, and can therefor stop it by switching to alternative energies such as wind and solar. We humans are completely wrong though, on both counts. Not only are we planning for the wrong change of climate, but we are foolishly wasting multi-billions, with plans to waste trillions switching our energy systems to much more costly, and less efficient ones. This will have disasterous effects on world economies already suffering at this point, as Kim pointed out.
We humans are about to get sucker punched by Nature, while we are busy taking off our protective gear
P.S. – Sorry, forgot to tell you great post!
0bama promised to get rid of earmarks if elected. That’s one of many campaign promises he broke.
So why doesn’t he get rid of earmarks? Because they are so useful for dividing your enemy.
The promise of $millions for a Congressman’s district works two ways: if the politician takes the loot in return for a vote, he ingratiates himself to the 0bama team, and showers his constituents with money taken from constituents of the other 434 Congresscritters.
But if he refuses, his opponent in the next election beats him over the head with the fact that he turned down $millions for his district.
So 0bama kept the earmarks. Because Congress is for sale to the highest bidder. WASS. [We Are So…]
Roger Sowell (2:59:45): that’s pretty discouraging news about the invalidation of credits. It highlights how uncertain life becomes when everything you do depends on the approval of a bureaucrat; who is busy; who may have been bribed or bullied by somebody with interests adverse to yours; who may (? will) have indifferent controls over the quantity and quality of the approvals being issued. In your example the credits are a kind of fiat currency. But one which was successfully challenged as counterfeit by NRDC.
A little counterfeit money can poison the entire currency. Ink in the swimming pool. Uncertainty taxes imposed on all. And when people face too much uncertainty, they won’t risk action. Everyone who was counting on them –not least the government with its hand out for tax revenues from all those projects– ends up with less or nothing. John Galt would be smiling.
Obama is creating crisis, nothing less, nothing more. Obama wants tax money and CO2 Cap and tax is the perfect opportunity to get it. $3,000 per family average across the nation is what I have seen. Obama is going to spend the money on health care according to what I have read.
57% of the voters put him in, let’s see how many is left once his policies are in place. It may be the same, large city voters with open hands put him in office.
Crisis is an opportunity for change as he says. If the crisis gets bad enough, he may be the change factor in the 2010 elections and gone forever in 2012 or sooner.
Bribe And Rule
Typically an optimist I have a really bad feeling about this. I have to disagree with Joeseph above. I have contacted my congressman and senator but seriously doubt this venue for public expression of opinion will ever see the light of day. This is a money grab pure and simple. I am holding out for either; 1. An NEO the size of Brazil makes impact at one of Gore’s mansions, or 2. The American public, en masse marches on the capitol. We’ll make the Boston Tea Party look just like that: a boston tea party.
As documented above: the oppositions (e.g. Waxman’s) tactics are out for all to see. They are not muted or subtle. His performance at the hearings was deplorable. In fact after watching him dispute Newt I really cannot understand how this guy gets from his car to his office (or anywhere for that mater) without getting the S–T beaten out of him. This is indicative of many politicians, just watch C-SPAN.
I am very thankful however for the internet. The fact that I have, a non-scientist, middle class blue collar worker, access to this information after being fully convinced of AGW and see the fraud of it is very encouraging. I know I’m not alone, and I am fully perpared to march on our capitol and throw these bums out of office. It’s been long, LONG, overdue!
Hopefully this will be the tiping point that signals the ‘beginning of the end’ for our current ‘Special Interest State’ form of government. Obama: watch out!
In the event of the passage of this bill I can see the day coming where Gore pronounces that the Cap&Trade bill has worked and we saved the poles (already happened), after the fact. And if global cooling continues; no problem we’ll just offer carbon debits and make money from both sides of the graph. (The fact he was even allowed to testify with his ties to HIS Generation Innovation Management corporation is nothing short of criminal). The fat cats will sit back and pat each other on the backs for a job well done while millions starve and freeze to death. Make no mistake – these guys know EXACTLY what they’re doing.
I have never owned, nor have had any proclivity for owning a firearm, but lately I’ve been thinking…hmmm. What’s it gonna take to stop this madness?
Thanks guys (Anthony, et al) and gals for the great work you’ve done here, and that goes to CA, Co2 Science and a ton of others! Keep it up.
[snip – while I don’t agree with Mr. Waxman, ad homs and scenarios of this type are not what we want to see here – Anthony]
Ah yes, the Zen of Global Warming. The beginning was Maurice Strong setting up the IPCC and now the rapidly approaching cap and trade ending has Maurice Strong on the Board of the Chicago Climate Exchange.
Waxman may not know much about latent heat but he knows how to exchange power for money.
Are there any commodity traders here who can estimate how many trillions will pass through the exchanges that are “approved” for the business, and what percentage of commissions will come off of the top?
I could ask if the Chicago Climate Exchange will be approved to trade CO2 allowances but that would be a waste of keystrokes.
Some where I saw a reference that Al Gore will make a fortune if cap and trade is passed. Anyone have references to his business interests and how much money he will make if cap and trade passes
[snip – ad homs, stick to policy and issues]
The only conclusion I can come to is that this Administration wants to destroy the United States.
I guess they want someone else to lead the world (like China or India!) I believe India has had it’s top scientists declare that CO2 is not a problem.
Where is the world headed with CO2? It’s hard to tell.
Hopefully the world wide depression and a cooling climate along with the spreading bird flue pandemic will bring even these guys to their senses!
“Each of you, for himself, by himself and on his own responsibility, must speak. And it is a solemn and weighty responsibility, and not lightly to be flung aside at the bullying of pulpit, press, government, or the empty catchphrases of politicians. Each must for himself alone decide what is right and what is wrong, and which course is patriotic and which isn’t. You cannot shirk this and be a man. To decide against your convictions is to be an unqualified and inexcusable traitor, both to yourself and to your country, let man label you as they may. If you alone of all the nation shall decide one way, and that way be the right way according to your convictions of the right, you have done your duty by yourself and by your country- hold up your head! You have nothing to be ashamed of.”
-Mark Twain
“How does it become a man to behave towards the American government today? I answer, that he cannot without disgrace be associated with it.”
-Henry David Thoreau
And why doesn’t someone ask how do taxes save the planet?
These political shenanigans definitely call for a rereading of Animal Farm.
The entire cast is on display on the nightly news. Funny how some of them even look the part.
http://nicedeb.files.wordpress.com/2008/02/waxmans-nose.jpg
Granting carbon allowances will be the new currency for pork.
As if that is not enough, tax breaks for Carbon traders was already snuck into the TARP bill that needed to be passed with such urgency.
Q1: What happens if the Congress issues more Carbon allowances than the EPA determines to be the total cap for a given year?
Q2: Is this going to be a way to target the unfavorable companies/entities by granting allowances to the unfavorables’ competitors?