Senator Whitehouse’s Duplicitous Carbon Tax Amendment

Last weekend the Senate rejected an amendment to the FY 2014 budget that would have enacted a carbon tax. For those interested in affordable energy and job creation, this was a good thing. Still, it’s worth walking through the actual wording of Senator Whitehouse’s amendment to see just how duplicitous it was. Even if someone knew nothing of the climate policy debate, the rhetorical sleight of hand in Whitehouse’s proposal should raise alarm bells.

A Tax By Any Other Name Would Hurt the Economy Just as Badly

An LA Times story on the vote shows just how slippery Whitehouse’s description is: Sen. Sheldon Whitehouse, a liberal Rhode Island Democrat, offered an amendment to the proposed fiscal 2014 budget resolution calling for ‘establishment of a fee on carbon pollution.’”

This is the same euphemism that Senators Boxer and Sanders used. Let’s be clear: A “fee on carbon pollution” means that the federal government is going to tax Americans for using energy in its most economical forms. If the IRS started calling it a “fee on worker exertion,” it would still be a payroll tax.

There are many economists and other analysts who think that a carbon tax makes sense. If so, legislators should openly state what they want to do. They want to tax carbon emissions? Fine, let them explain their intentions to the voters and see what happens. But to frame it as “a fee on carbon pollution” is loading the deck.

When Everything Is Allowed, Nothing Is Forbidden

Yet the “fee” euphemism is hardly the worst of it. The LA Times story continues:

The amendment didn’t suggest who’d pay the fee or how large it would be; it required only that the fee not increase the deficit and that all the revenue raised be “returned to the American people in the form of federal deficit reduction, reduced federal tax rates, cost savings or other direct benefits.”

That’s such a wide set of options, it left room for the Senate to consider all of the carbon-tax proposals that have been floated. Some would use the revenue to narrow the federal budget gap; others would lower corporate and personal tax rates. Still others, such as the one favored by the Citizens Climate Lobby, would divvy up the money among consumers and businesses in the form of rebates, effectively shifting dollars from the most intensive carbon emitters to the least.

The article here understates the emptiness of these “constraints.” Not only did Whitehouse’s amendment allow “all of the carbon-tax proposals that have been floated”; it would be difficult to imagine a carbon tax proposal that would not qualify. No matter what the government did with carbon tax receipts, they could always classify it in one of the permissible categories.

Consider: (1) If the government doesn’t spend any new money or change other taxes, then the carbon tax revenues would be used for deficit reduction. Check.

(2) The government could use the money to reduce other taxes. Check.

(3) The government could spend the money. So long as the money were construed as offering “direct benefits” to Americans, this option too is allowed. Check.

Indeed, unless someone proposed using carbon tax revenues to drown adorable kittens, it is hard to come up with anything even in principle that Whitehouse’s amendment would prevent. And yet, he obviously put in that language to make it appear as if he were protecting the American public from getting hit with a massive new tax hike for no good reason.

He did not even deign to offer guidance on how much the tax would be, apparently leaving that up to someone else.  Would it be a tiny fee or a huge fee?  The Senator offers no clue. It is probably a good thing the Senator is not in the House of Representatives, where under the Constitution, all revenue bills must begin.

Conclusion

The various proposals for a new carbon tax will bring in potentially trillions of dollars in new revenue in the coming decades. As I spell out in this study, it is incredibly naïve to think that this measure would be used to promote economic efficiency, even if one endorses the standard “negative externality” argument about carbon emissions.

If there remains any doubt on this point—if anybody thinks policymakers are actually going to craft a policy that uses new carbon revenues in order to shrink the rest of the government and deliver net benefits to Americans—then go re-read Senator Whitehouse’s duplicitous amendment. It may have been defeated this time around, but the proponents of a carbon tax keep coming back for more.

In the Pipeline: 3/26/13

It’s not enough to help us sleep at night, but at least 53 Senators disagree with His Majesty’s newest court jester. Washington Examiner (3/25/13) reports: “President Obama’s Energy secretary nominee regards a carbon tax as one of the simplest ways to move the energy industry towards clean technologies, though he notes that government would have to come up with a plan to mitigate the burden this tax places on poor people, who would pay the most.”

 

It would be great if the House Republicans could follow up on Senator Blunt’s – and Downey Palmer’s – good showing. Politico(3/25/13) reports: “More than a dozen Senate Democrats have a message for President Barack Obama: If he wants to take dramatic action on climate change, he’s on his own… The latest evidence came from this weekend’s marathon series of budget votes, in which moderate and conservative Democrats sided with the GOP on the Keystone XL oil pipeline and against any prospects for a tax on carbon.”

 

Why can’t this Kessler dude just be happy that the pipeline will provide net benefits to the environment? It seems like the entire “environmental” movement is just well-branded masochism.Bloomberg (3/25/13) reports: “‘The Senate spoke with a clear voice on the Keystone XL pipeline,’ Benjamin Cole, a spokesman for American for Energy Alliance, a Washington-based group that supports fossil fuel development, said in an e-mailed statement. ‘It is telling that the amendment garnered such overwhelming and new support from across the political spectrum.’… Environmental groups urged senators to reject the amendment, sponsored by North Dakota Republican John Hoeven. Representatives from 350.org met with aides for Democratic Senators Michael Bennet of Colorado and Mark Warner of Virginia, among others, prior to the vote, Kessler said. Both men backed the amendment… ‘It’s impossible for a U.S. senator to say they’re for action on climate change and support the pipeline,’ Kessler said. ‘It’s like saying you’re against obesity and then putting soft drinks in every school.’”

 

Maybe we’ll get a fresh start with energy policy over here in the original colonies if a bunch of Brits get wise and decide to go their own way. The Telegraph (3/23/13) reports: “With the worst snow conditions in the country since 1981, it’s worrying, to say the least, that gas supplies are running low. A month ago, The Sunday Telegraph warned in this column of the problems of an energy policy that puts expensive, inefficient green power before coal-fired and nuclear power. There have been a few signs that the Coalition is at last turning its attentions to the issue but, still, not nearly enough has been done. Now we are reaping the consequences. Because of a misguided faith in green energy, we have left ourselves far too dependent on foreign gas supplies, largely provided by Russian and Middle Eastern producers. Only 45 per cent of our gas consumption comes from domestic sources. All it takes is a spell of bad weather, and the closure of a gas pipeline from Belgium, to leave us dangerously exposed, and to send gas prices soaring. Talk of rationing may be exaggerated, but our energy policy is failing to deal with Britain’s fundamental incapacity to produce our own power.”

 

Apparently the food critic was overqualified. Huffington Post (3/20/13) reports: “But in addition to Eilperin covering climate and environmental policy issues as part of her White House reporting job, the Post’s Lenny Bernstein is moving from the Sports desk to the National staff to take over as environmental reporter. Bernstein has covered several beats at the paper over the years and most recently edited “one of the Post’s most important franchises” — the Redskins.”

In the Pipeline: 3/25/13

Show me the Moniz. ProPublica (3/20/13) reports: “When President Obama nominated Ernest Moniz to be energy secretary earlier this month, he hailed the nuclear physicist as a “brilliant scientist” who, among his many talents, had effectively brought together “prominent thinkers and energy companies” in the continuing effort to figure out a safe and economically sound energy future for the country… ‘His connections to the fossil fuel and nuclear power industries threaten to undermine the focus we need to see on renewables and energy efficiency,’ said Tyson Slocum, director of the energy program at the consumer advocacy group Public Citizen.”

 

Next up, fines for heating your home and breathing. Fox NY (3/21/13) reports: “Businesses in Paramus, New Jersey are getting tickets when they leave their sign lights on… Paramus has a quality of life ordinance that fines businesses $200 or more, plus $33 in court costs, if their signs don’t go dark after 11 p.m.”

 

It is a sad day for Canada when Al Gore is more of a man than the Premier of Alberta. Calgary Herald (3/20/13) reports: “Under fire from the opposition parties over carbon tax comments, Premier Alison Redford said Tuesday she is not calling for a national carbon levy… Redford told Postmedia News on Monday the federal government should follow Alberta’s lead in establishing a $15-per-tonne levy on large industrial emitters that are unable to meet their greenhouse gas reduction targets.”

 

When it’s all bread and circuses, there’s no time or need to care about real science. American Spectator (3/22/13) reports: “The fact remains that because American industry is greatly improving its environmental practices and is proactively addressing all the “big problems,” there’s only one way for the EPA to stay relevant: find little “problems” — even tiny, infinitesimal ones — and inflate them into issues of tremendous importance. Combine the poorly understood concept of risk, a technically ignorant mainstream media, and a public that has been conditioned to equate the word “chemical” with “deadly poison” and you have the ideal conditions to do just that. And if that kind of approach to environmental management sounds as if it will require the services of a public relations firm rather than a team of scientists, no matter. The environmental movement has been comfortable working in this manner for decades.”

 

It was a busy week last week. Lots of collectivists were busy. Al Gore (3/21/13) reports: “Taxes are always a regrettable necessity, but some are less regrettable than others. A tax that strengthens energy security and cuts pollution, while minimising the damage done to employment and investment, is one of the least regrettable of all… Yet a carbon tax, which has all those characteristics, is struggling to find support from the US administration or in Congress. It deserves much wider enthusiasm.”

 

I will only point out that at CPAC a bunch of kids who said they were associated with Arthur Laffer were passing out “Conservatives for a Carbon Tax” stickers. So, apparently, there is still a need for the kind of education George is providing here. Frontiers of Freedom (3/20/13) reports: “It is not surprising that there are liberals in Washington proposing new stealth carbon taxes. What is surprising is that a few ‘conservatives’ support the idea. Even more inexplicable is the fact that some have called the carbon tax a ‘once in a generation opportunity.’… Let me see if I’ve got this right. A huge, gargantuan tax increase — one that would make everything cost more — is a ‘once in a generation opportunity?’”

 

Now that’s gratitude for you… Bloomberg (3/21/13) reports: “NextEra Energy, the largest U.S. wind-power operator, sued 16 banks yesterday in Manhattan federal court, asking a judge to interpret a 2011 credit “guarantee agreement” in light of recent changes in Spanish law… NextEra said Spain enacted favorable tariff laws in the 1990s to encourage investment in solar power so that by 2008, the country accounted for more than 40 percent of the world’s solar installations.”

 

What does wind power have to do with chicken you-know-what? Neither is helping North Carolinians. News Observer (3/23/13) reports: “Meanwhile, electricity generated by wind as well as poultry and swine waste have made almost no progress here despite being eligible for the same subsidies that are available for solar power. Those renewables continue to face significant economic and technological obstacles.”

 

With all the mayhem of St. Valentine’s Day, we missed this last month. But it should be required reading across the land. Ben Zycher takes Congressman Waxman and Senator Whitehouse to school. AEI (2/14/13) reports: “Whatever the actual magnitude of the prospective effects of changes in ambient concentrations of GHG, what is not in dispute is the international nature of those anthropogenic impacts. The policy inquiry in your letter is limited specifically to actions and legislation at the federal level. U.S. emissions of GHG are about 18 percent of global emissions, a proportion that is declining steadily. [3] If we ignore that ongoing decline in the U.S. proportion, the U.S. would contribute about 0.5 degrees of the IPCC best estimate of 3 degrees. Suppose that U.S. policies over time reduce our contribution by half, an outcome that could be achieved only in the face of massive economic dislocation.  In that case, the reduction in the U.S. contribution would be about 0.2-0.3 degrees, a change that no climate model predicts would yield measurable effects in terms of climate patterns and attendant impacts upon weather and other parameters.”

In the Pipeline: 3/22/13

The brains of this operation are hard at work. IER (3/21/13) reports: “IER President Thomas Pyle sent letters to all 50 U.S. governors this week, detailing how pro-growth policies for energy development on federal lands could redound to the economic prosperity of their states… The letters represent the next phase of IER’s nation-wide strategy to educate policy makers and the American people about the opportunity for economic prosperity that more oil and gas leasing on federal lands would create. In each letter, Pyle references state-specific data concerning budget deficits and prolonged unemployment to bolster the case for expanded energy production on federal lands.”

 

Paul Ehrlich, Obama’s “Science Advisor” and John Holdren’s co-author and colleague said, “given society’s dismal record in managing technology, the prospect of cheap, inexhaustible power from fusion is ‘like giving a machine gun to an idiot child.’” These people could care less about the environment. They want god-like control to make the world into whatever image pops into their very scary minds. Rolling Stone (3/11/13) reports: “Yoko Ono and Sean Lennon have put up billboards, run a TV ad and presented petitions in opposition of fracking, now they’ve recruited celebrity friends including Liv Tyler, Susan Sarandon and Joseph Gordon-Levitt for the new video to their song “Don’t Frack My Mother,” which debuted last summer on Late Night With Jimmy Fallon… The song is the latest entry in their Artists Against Fracking campaign to persuade New York Gov. Andrew Cuomo not to allow gas companies to use hydraulic fracturing in New York state to extract natural gas trapped deep within underground rock.”

 

And the moral of the Izembek road saga is that environmental groups care far more about grizzly habitat than the health and welfare of their fellow humans. E&ENews (3/21/13) reports: “The advancement this morning of President Obama’s nominee for Interior secretary drew cheers from some environmentalists but jeers from key conservation groups who criticized the department for postponing its decision on whether to allow a road through Alaska’s Izembek National Wildlife Refuge.”

 

The following think tank chiefs are opposed to a carbon tax. Please contact us at [email protected] if you wish to join our growing ranks. We are thinking about starting a new list – trade association heads. We fear, however, it will be pretty small.

Tom Pyle, American Energy Alliance / Institute for Energy Research
Myron Ebell, Freedom Action
Phil Kerpen, American Commitment
William O’Keefe, George C. Marshall Institute
Lawson Bader, Competitive Enterprise Institute
Andrew Quinlan, Center for Freedom and Prosperity
Tim Phillips, Americans for Prosperity
Joe Bast, Heartland Institute
David Ridenour, National Center for Public Policy Research
Michael Needham, Heritage Action for America
Tom Schatz, Citizens Against Government Waste
Grover Norquist, Americans for Tax Reform
Sabrina Schaeffer, Independent Women’s Forum
Barrett E. Kidner, Caesar Rodney Institute
George Landrith, Frontiers of Freedom
Thomas A. Schatz, Citizens Against Government Waste
Bill Wilson, Americans for Limited Government
Wayne Brough, FreedomWorks

In the Pipeline: 3/20/13

That’s odd – I thought there was a sham solar company in the US too. There must be different trademark laws overseas. Gizmodo(3/19/13) reports: “The Shams Power Company opened their Shams 1 concentrated solar power station this week in Abu Dhabi. The station generates 100 MW and can power 20,000 homes while reducing CO2 emissions by 175,000 tons per year.”

 

The President can be as proud of “our” increase in oil and gas production as he wants. But if he or any of his handlers take credit for any of it, they are flat out lying. Politico (3/19/13) reports: “White House energy adviser Heather Zichal drew a line in the sand this morning on the president’s Energy Security Trust proposal, stressing that the administration would not accept expanded drilling as part of the plan. “No. ANWR is off the table. Our existing OCS plan and nothing else,” Zichal told reporters, referring to the Arctic National Wildlife Refuge in Alaska, which has long been a non-starter for Democrats. While Zichal’s comments are no surprise, they underscore the difficulty the administration’s Energy Security Trust proposal faces in Congress. The plan, which would funnel royalties from existing oil and gas production into research and development, has bipartisan support.”

 

Are people suggesting that competition and price signals would be better for business (and better for you)? When will these greedy capitalists just learn to take a handout? Heritage (3/19/13) reports: “More than $51 billion in unused loan guarantee authority and $4.4 billion in unused credit subsidies (to cover the government’s long-term cost of the loan) remain available under the DOE’s Loan Guarantee Program (1703) and Advanced Technology Vehicles Manufacturing (ATVM) loan program… Association with the failed solar companies and troubled car manufacturers has diminished the program’s public perception. That negative “political environment” has made companies less likely to apply for the loan guarantees…”

 

There’s a new sheriff in town…  


 

The Chinese know this whole thing is a sham. It’s a terrible investment, and we should just leave it to the American taxpayer to pick up the tab. WSJ (3/18/13) reports: “Chinese auto makers have pulled back from talks to buy Fisker Automotive Inc. over a disagreement on whether to revive a loan agreement with the U.S., leaving the Anaheim, Calif., company’s future uncertain ahead of an April loan payment… Fisker management had proposed to the Chinese that as part of any sale it tap the remaining portion of a $529 million U.S. loan, a move that would commit a new owner to building Fisker cars at a former General Motors Co. GM +0.21% auto factory in Delaware, a person familiar with the situation said on Monday…The Delaware plant is big, old and expensive and the Chinese balked at the U.S. loan because they don’t want to be compelled to build cars there, another person said.”

 

This would’ve been a fun day in 8th grade science class. Slate (3/19/13) reports: “The treatment plant produces a lot of solid organic waste from the 44 million gallons of wastewater it processes daily. There’s an anaerobic digester on site to consume some of that waste so IEUA doesn’t have to pay to landfill everything it pulls out of the sewage, but the bacteria in the digester produce another kind of waste: methane, a potent greenhouse gas. IEUA is under the authority of the South Coast Air Quality Management District, one of the strictest such agencies in the country. Plant managers knew that beginning in November, 2012, it would be also under California’s statewide emissions trading program, forcing it, for the first time, to pay for the carbon dioxide emissions from the electricity it gets from the grid.”

In the Pipeline: 3/19/13

I think it goes something like: “You give them an inch, and they come after you with a chainsaw for your puppies and freedom.” E&ENews(3/18/13) reports: “A group of leading economists — including Nobel Prize winners Kenneth Arrow, William Sharpe, Thomas Sargent and Joseph Stiglitz — called on President Obama to back a carbon price on aviation… In a letter dated Thursday, the experts urged Obama to support the market-based measure as the cost-effective way to promote more efficient technology and lower emissions.”

 

Forget Rachel Hunter; not everything the Aussies create is worthwhile. Yahoo (3/18/13) reports: “The federal coalition says reports that business insolvencies are at a record high in Australia are worrying and show the carbon tax is doing damage… The Australian Securities and Investments Commission has recorded more than 10,500 company collapses for the year to March, News Limited reports.”

 

This just in: Your car stinks because manufacturers need to please a bunch of bureaucrats in la-la land, not you the consumer who is going to drive the thing. The Guardian (3/14/13) reports: “A new report reveals that carmakers routinely manipulate official UN-backed miles/gallons tests, with a series of tricks including stripping the car down to weigh as little as possible, overinflating the tyres and testing in the thin air at high-altitude tracks… The tricks of the trade are listed in a report by the Transport & Environment campaign group (T&E), which suggests the official fuel consumption cited by car manufacturers is on average almost 25% lower than that achieved in reality, and in some cases 50% lower.”

 

Quod licet Jovi, non bovi. At least that is what my friend Octavian used to say. Fox News (3/18/13) reports: “Dozens of celebrities may be running afoul of the law as they unite under the banner of one group that is seeking to prevent a method of gas drilling in New York state… Artists Against Fracking opposes hydraulic fracturing, or fracking, and boasts members including Yoko Ono and actors Mark Ruffalo and Susan Sarandon.”

 

The Economist starts making the case for secession. The Economist(3/16/13) reports: “This fits a pattern. Pressed for cash, states are adopting sweeping reforms as they vie to attract investments and migrants. Louisiana and Nebraska want to abolish corporate and personal income taxes. Kansas has created a post called “the Repealer” to get rid of red tape and pays a “bounty” to high schools for every vocational qualification their students earn in certain fields; Ohio has privatised its economic-development agency; Virginia has just reformed its petrol-tax system… In this second, can-do America, creative policymaking is being applied to the very problems Congress runs away from, like infrastructure spending. While the federal government twiddles its thumbs, states and cities, which are much shorter of cash, are coming up with new ways to raise money for roads, bridges and schools.”

 

I wonder when the Sierra Club is going to launch its “Beyond Wind” campaign. The suspense is killing me. Natural News (3/14/13) reports: “Large British wind farms will actually release as much carbon dioxide as fossil-fuel power plants, according to a study conducted by researchers from Aberdeen University and published in the journal Nature… The source of the emissions is not the windmills themselves, but the land on which they are being constructed.”

 

Easy with the jokes there, tiger! WSJ (3/18/13) reports: “Institute for Energy Research senior vice president Dan Kish on how President Obama may hold up the Keystone XL pipeline and other energy and infrastructure projects.”

Ethanol “Blending Wall” Leads to Gas Exports

A recent WSJ article explained how the ethanol mandate is leading to a “blend wall” that paradoxically leads U.S. refiners to export their gasoline, raising pump prices at home. This is just another fantastic example of government policies having unintended consequences.

Before looking at just how serious the problem is, let’s set the context by quoting from the WSJ piece:

This story dates to 2007 when the Bush Administration joined Democratic greens and corn-state Republicans to pass an energy bill mandating renewable fuel standards. The law required a 10% ethanol blend in all gasoline and established annual mandates for how much ethanol the oil and gas industry must purchase each year through 2022.

The problem is that Washington’s seers were wildly wrong about how much gas Americans would keep putting in their tanks. In 2007 annual gasoline consumption was about 140 billion gallons per year, with forecasts of rising demand. But the 2008-09 recession and better fuel economy have lowered consumption to an estimated 135 billion gallons.

Refiners are now crashing into what is called a “blend wall,” meaning the feds have forced them to purchase more ethanol than they can safely put in their gasoline. Refiners are reluctant to blend more than 10% ethanol into gasoline because consumers don’t want it, and because a higher blend can damage the engines of older cars, boats and electrical equipment. [Bold added.]

Thus we see the perils of top-down government intervention. By picking an absolute number of gallons of ethanol that must be blended into the gasoline mix, officials didn’t plan for the contingency of a sharp fall in total output due to the recession. Rather than admit their mistake and revise the mandate, the policymakers (as is their wont) dug in their heels and expect the private sector to sort it all out.

Paradoxically, one of the obvious and “rational” responses is for individual refiners to export their refined gasoline abroad. As the WSJ article explains, the ethanol mandates do not apply to exported product, and so this is a convenient loophole that allows refiners to survive amidst onerous federal regulations. Look at the tremendous surge in U.S. exports of finished motor products since the EIA data begin (in 2010):

As the chart illustrates, U.S. exports of gasoline have risen almost fourfold in under three years. Now part of the growth is no doubt due to the (sluggish) recovery of the world economy, but a large factor is also the ethanol mandate, which makes it more profitable for U.S. refiners to cater to foreign motorists, rather than American drivers.

When U.S. motorists are suffering from record-high gas prices for this time of year, it is particularly odious to have federal policies that encourage refiners to export gasoline to foreign markets. This is yet another unintended consequence of the ill-advised ethanol mandate.

In the Pipeline: 3/18/13

What happens to a society when there are more takers than makers? White House (3/15/13) reports: “The President’s plan builds on an idea that has bipartisan support from experts including retired admirals and generals and leading CEOs, and it focuses on one goal: shifting America’s cars and trucks off oil entirely.”

 

I bet oil production would come to a screeching halt if President Obama’s teleprompter were turned off. Praise His Majesty, from whom all blessings flow. Washington Examiner (3/16/2013) reports: “‘We produce more oil than we have in 15 years. We import less oil than we have in 20 years,’ he said. ‘We’re producing more natural gas than we ever have before — with hundreds of thousands of good jobs to show for it.’… Those numbers are true. Between fiscal years 2010 and 2012, total U.S. oil production rose by about 1.1 million barrels per day over fiscal year 2007, and natural gas production rose 20 percent from 2007 to 2012… What the president failed to mention is that the growth he is so proud of has taken place in spite of his administration’s energy policy, not because of it.”

 

“Congress set out to create an ethanol industry . . .” With a start like that, who could have guessed that economic, environmental, and energy catastrophe awaited? Pretty much everyone. NYTimes (3/16/13) reports: “Five years ago, rural America was giddy for ethanol. Backed by government subsidies and mandates, hundreds of ethanol plants rose among the golden fields of the Corn Belt, bringing jobs and business to small towns, providing farmers with a new market for their crops and generating billions of dollars in revenue for the producers of this corn-based fuel blend… Those days of promise and prosperity are vanishing.”

 

And yet, some folks in the sector appear to be OK with a carbon tax. Apparently, that is affordable. EnergyTomorrow (3/11/13) video reports: “Billions of new oil and natural gas taxes? Washington isn’t closing loopholes it’s raising taxes. Say no to Washington’s new energy taxes.”

 

The Obama Administration is starting to get lazy. Now they are letting their newsletter dump bad news on Friday. Washington Post (3/15/13) reports: “The Obama administration is leaning toward revising its landmark proposal to regulate greenhouse gas emissions from new power plants, according to several individuals briefed on the matter, a move that would delay tougher restrictions and could anger many environmentalists… The discussions center on the first-ever greenhouse gas regulations for power plants, which were proposed by the Environmental Protection Agency nearly a year ago. Rewriting the proposal would significantly delay any action, and might allow the agency to set a separate standard for coal-fired power plants, which are roughly twice as polluting as those fueled by natural gas.”

 

We don’t feel that bad for Kelsey; we’re losing money on wind ‘investments’ everyday too. Washington Times (3/14/13) reports: “Former Frasier star Kelsey Grammer told TMZ on Tuesday that wind technology was the worst investment he’s ever made… Grammer told the tabloid that though his finances are good, he lost hundreds of thousands of dollars on a small wind investment… ‘I’m OK, but I didn’t make up for it. It’s just one of those things that’s just a straight loss,’ he said. ‘You’d think it would be lucrative, but it’s not really a friendly environment for new technology, it really isn’t.’”

 

It’s like environmentalists are a band of firefighters who stay in business by going around lighting peoples’ houses on fire. Slate(3/17/13) reports: “At the same time, another 1 billion people will participate in ‘Earth Hour’ by turning off their lights from 8:30-9:30. The organizers say that they are providing a way to demonstrate one’s desire to ‘do something’ about global warming. But the reality is that Earth Hour teaches all the wrong lessens, and it actually increases CO2 emissions. Its vain symbolism reveals exactly what is wrong with today’s feel-good environmentalism.”

In the Pipeline: 3/15/13

What about newborn babies, cow farts, and electric car batteries? Is there anything that doesn’t have an impact on the climate? At what point will you have enough control? Are we asking too many questions, your Majesty? Bloomberg (3/14/13) reports: “President Barack Obama is preparing to tell all federal agencies for the first time that they have to consider the impact on global warming before approving major projects, from pipelines to highways… The result could be significant delays for natural gas- export facilities, ports for coal sales to Asia, and even new forest roads, industry lobbyists warn… The Environmental Protection Agency and activist groups say that review should be broadened to account for the greenhouse gases emitted when exported coal is burned in power plants in Asia.”

 

Do these dunderheads not remember how many problems were caused by the securitization of junk mortgages? WSJ (3/14/13) reports: “The Obama administration and some on Wall Street are laying the groundwork for bundling renewable-power contracts into securities, part of an effort to make it cheaper to finance alternative energy… The initiative aims to extend to renewable energy a financial tool already used in the mortgage and credit-card industries. The securities could be sold to pension funds or other investors, who would receive a return funded by payments from users of electricity where solar panels or other equipment is installed.”

 

You know that feeling you get when fingernails are dragged against a chalkboard very slowly and deliberately? The Hill (3/14/13) reports: Pelosi, an avid environmentalist, said Thursday that there’s a reason the pipeline is proposed through the United States and not Canada: the Canadians don’t think it would benefit them… “I met with some legislators from Canada the other day, and I said, ‘You have two coasts, actually three,’ ” Pelosi said, pointing upwards. “‘Why aren’t you taking this oil out through your own country?’

 

We’ve made it really easy to fire an email over to Secretary Kerry. Send this link out to your people, people. 

The following think tank chiefs are opposed to a carbon tax. Please contact us at [email protected] if you wish to join our growing ranks. We are thinking about starting a new list – trade association heads. We fear, however, it will be pretty small.

Tom Pyle, American Energy Alliance / Institute for Energy Research
Myron Ebell, Freedom Action
Phil Kerpen, American Commitment
William O’Keefe, George C. Marshall Institute
Lawson Bader, Competitive Enterprise Institute
Andrew Quinlan, Center for Freedom and Prosperity
Tim Phillips, Americans for Prosperity
Joe Bast, Heartland Institute
David Ridenour, National Center for Public Policy Research
Michael Needham, Heritage Action for America
Tom Schatz, Citizens Against Government Waste
Grover Norquist, Americans for Tax Reform
Sabrina Schaeffer, Independent Women’s Forum
Barrett E. Kidner, Caesar Rodney Institute
George Landrith, Frontiers of Freedom
Thomas A. Schatz, Citizens Against Government Waste
Bill Wilson, Americans for Limited Government
Wayne Brough, FreedomWorks

AEA President Joins National Leaders in Fight Against Carbon Tax

WASHINGTON D.C. — AEA President Thomas Pyle will speak today at a press conference held by Republican Study Committee Chairman Steve Scalise (R-LA) concerning the harmful impacts of a carbon tax. Chairman Scalise will announce a resolution opposing a national carbon tax. Joining Pyle will be representatives from numerous free market organizations and trade groups that oppose a carbon tax. The text of Pyle’s remarks, as prepared for delivery, follow:

Thank you, Chairman Scalise, for your invitation to speak today and your strong, principled leadership of the Republican Study Committee. The American people depend on affordable energy to power our economy and care for our families. Today’s announced resolution shows how a carbon tax on these energy sources would be harmful to American families. Proponents of a carbon tax suggest a ‘tax swap’ deal in order to offset income or payroll taxes. The Institute for Energy Research, AEA’s parent organization, recently published a study that demonstrates how a carbon tax would not only further confuse the tax code, but would be far more damaging to our economy than the existing tax system. The most glaring problem of a carbon tax, of course, is the negative effects it would have on the American people.

By its very nature, a carbon tax would put an unnecessary burden on American families and businesses by raising energy costs. This increase in costs would not only affect energy prices, such as electricity and gasoline, but will also increase the costs of food and manufactured items that we use in our everyday lives. Chairman Scalise recognizes these negative implications. He understands our need for policies that embrace America’s reliable energy sources and promote economic growth.  For all of these reasons, I am proud to stand here today in support of the Chairman Scalise’s carbon tax resolution. The American Energy Alliance will continue our fight on behalf of American families to oppose Washington’s attempts to limit access to our vast natural resources and increase the price of energy for everyone. With strong leaders like Chairman Scalise, this is a fight we can win.

To read IER’s carbon tax study, click here.
To read a coaltion letter to Chairman Scalise, click here.

What: RSC anti carbon tax press conference
When: Wednesday March 13, 2013 at 3:00 PM ET
Where: House Triangle
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