Budweiser thinks its customers are gullible fools

For its Super Bowl commercial this year, Anheuser-Busch has opted for a little green virtue signaling. The punch line of the ad “Wind never felt so good” is “now brewed with wind power for a better tomorrow.” I say punch line intentionally, because the claim is a joke. It’s the latest entry in the corporate 100% renewable PR misdirection campaign.  Indeed, the lie underpinning this ad is so brazen it should qualify as false advertising.

The lie here is fundamental: pretending that Anheuser-Busch, or any of the other companies like Google or Apple making these false claims, are actually using only renewable energy to power their operations. They are not. Every Anheuser-Busch bottling plant plugs into the electricity grid like everyone else. In 2017, the US electricity grid derived just 6.3% of total generation from wind power. Solar, the other trendy source, generated just 1.3%. Unless Anheuser-Busch has unplugged its bottling plants from the grid and just has a direct line to the closest wind farm, they are not brewing their beer with wind power.

But how do we know they aren’t doing that? Well, because wind power is intermittent, it only blows some of the time. An Anheuser-Busch bottling plant, on the other hand, needs constant power. A modern manufacturing business cannot be run with the lights turning off and on all day. So Anheuser-Busch relies on the grid, where power generation is dominated by coal and natural gas.

So how can Anheuser-Busch and other companies get away with this lie? Well, they enter agreements to “purchase” electricity from a company owning a wind farm. They then claim that payoff as offset for the real electricity they are using from the coal plant down the street. It’s an accounting gimmick, a little flimflam that provides cover for false claims of 100% renewable power usage.

The core of the corporate 100% renewable myth is that these companies think their customers are ignorant and gullible. They count on customers not realizing that electricity is a “just in time” product, virtually every electron generated is used immediately. Storage is difficult and impossibly expensive, and long distance transportation (e.g. from rural wind farms to population centers) is costly and inefficient.  In order for the lights to come on whenever you flick the switch, you must have a stable, constant source of power. Wind and solar do not provide that fundamental service.

Now perhaps we shouldn’t blame Anheuser-Busch for getting in on this game. A company with a collapsing market share is liable to grasp at any straw on its way down. But maybe, just maybe, lying to your customers about your business practices isn’t the wisest way to go.

The Greenist Manifesto: Fanciful Green Trappings for Garden Variety Socialism

One by one we have seen the 2020 candidates for the Democratic nomination, both presumed and declared, voice support for a “Green New Deal.” While some of these candidates may simply be mouthing the words to assuage the more rabid elements of the environmental far left, the mere fact that this idea is being taken seriously should be of concern to every freedom loving American. The Green New Deal is truly a Greenist Manifesto, a call for reviving old socialist ideas but this time with green characteristics.

While there is not yet any actual legislative proposal to evaluate, we do have a list of proposed policies that a coalition of interests, fronted by newly elected Representative Alexandria Ocasio-Cortez, developed in the hopes of providing guidance to the newly created House Select Committee on the Climate Crisis.

The Green

The list of “green” proposals is as comprehensive as it is fanciful: reaching 100% renewable power, building a nation-wide smart grid, upgrading every building for energy efficiency, eliminating greenhouse gases from industry and transportation, and funding massive investment in a “drawdown” of greenhouse gases, among others. All within a mere 10 years. A low-end attempt to estimate the cost of these proposals adds up to many trillions of dollars per year (for reference the federal government currently spends $3.3 trillion annually, so we are talking several times current spending every year). But even before considering the astronomical cost, there is a more practical barrier: the bounds of technology and even physics. Simply put, these goals are not possible.

Take 100% renewable power. In 2017, wind provided just 6.3% of electricity generation in the US, with solar providing a mere 1.3%.  And that is after decades of subsidies and federal and state mandates for renewable generation.  A recent estimate calculated that to simply generate enough electricity to meet current US power demand, it would require covering 12% of the land area of the continental United States with wind turbines. That is more than twice the size of California of just wind installations. And the physical turbines are just the beginning, huge numbers of long distance power lines will have to be built to move this renewable power to cities.

Wind and solar are also intermittent.  Currently, natural gas or coal are typically used as backup when renewables are down, but in this brave new green world some alternative will need to be found, perhaps batteries. Vast acres of hugely expensive batteries, the technology for which has never been proved able to power the entire grid on their own.

All this in just 10 years.

And how will we eliminate greenhouse gases from agriculture and industry? The Green New Deal helpfully offers investment in “local-scale agriculture” as a fix. Except that local agriculture is inherently less efficient than large-scale agribusiness, not to mention there is no technological fix for methane emissions from livestock. Without coal, how does industry produce the steel in all those wind turbines and solar panels? Perhaps there is some sort of future technology that would allow all the mining of minerals and cement production that will be needed to build the vast fields of wind and solar – not to mention the batteries! – to be done free of greenhouse gas emissions, but that technology certainly doesn’t exist today. The same would need to be done for all the other products made from fossil fuels: plastics, clothing, pavement, etc.

And in just 10 years.

Then there is the simple, modest goal of eliminating emissions from transportation. The average age of passenger vehicles in the US is currently more than 10 years. What will greens impose? A government confiscation effort of vehicles in order to meet a 10-year decarbonization goal? At least for passenger vehicles there is technology for electric vehicles (though shudder at the vast cost of replacing hundreds of millions of vehicles with more expensive electric alternatives), but what about freight trucks, ships, trains, airplanes? Are we going to electrify 140,000 miles of railroad? Put nuclear reactors in every ship (or maybe just revert to sail power)? There is not even theoretical technology available for replacing jet fueled airplanes, and even if one were discovered tomorrow, designing a new airplane alone can easily take a decade.

Even on longer time scales than 10 years and with unlimited money, achieving any one of these goals would require huge technological advances. It is a simple fact that, even if it was a good idea, we do not have the technological knowledge today to achieve any of these goals in just 10 years, irrespective of cost.

Yet this Green New Deal is still treated as a real policy proposal, not a fanciful alternative universe from a sci-fi novel.  Why, it’s almost as if all this “green” hand waving is just a cover for some larger agenda.

The New Deal

The second half of the Green New Deal, on the other hand, looks much more familiar: a job guarantee for everyone, a living wage guarantee, a free hand for labor unions, government mitigation of income inequalities, a universal basic income, universal health care, and any other programs the drafters might desire. Other than the baffling provision for a “just transition” for all workers most affected by climate change, these are all provisions that are fairly standard fare for your average advocate of far left socialism.

It is not made explicit what this standard socialist and progressive wish list has to do with climate change, but for today’s environmental left, it appears logic and coherence are not required qualities. For those not on the left, this manifesto should be a warning, though. It seems that the United States keeps having crises that a certain group of people tell us require the implementation of the same statist, command-and-control policies: Wilson’s war socialism, Roosevelt’s new deal, Johnson’s war on poverty, Carter’s energy crises, and now today’s climate change.  All conveniently have the same solutions: more government “investment,” more government control, more socialism.

It’s a trap

A skeptic might wonder why the answer to every new crisis is to do the same things the far left has been doing or trying to do for 100 years. A skeptic might wonder about the seriousness of the purveyors of climate change alarmism when they treat a supposed existential threat to humanity as a convenient opportunity to press their long held policy goals. For while the fanciful proposals in the “green” section are quite literally not possible, the policies in the socialism section are very real and concrete.

Ultimately this Green New Deal is not about saving the environment. The greenwashing is about creating a sense of urgency and moral panic. The more panic the better to entrench government ever deeper into the lives of American citizens. Americans resisted socialism in the Cold War, now it’s time resist socialism in the Green War.

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A condensed version of this post was first published in The Daily Caller on 1/11/19.

Welcome to 2019 and the 116th Congress

All eyes are on Congress this week as a new class of legislators is sworn in and Democrats take control of the House of Representatives. At this crucial time, AEA is ready to advocate for free market energy policies and to protect the American people from threats of increased energy prices.

House Democrats have made it clear they will make energy policies a focus through a new select committee and proposals in line with a “Green New Deal.” Unfortunately, what this translates to for American families is expensive government subsidies and mandates, as well as ever-increasing energy prices that Americans can’t afford. House Democrats have made it clear that they are happy to raise energy costs just to virtue signal their “action” on climate change.

Proponents of “Green New Deal”-type legislation might claim future costs of climate change, but they never talk about the current costs of their policies. New York Rep. Alexandria Ocasio-Cortez and California Rep. Ro Khanna have even opted to vote against a provision, “PAYGO”, which is supposed to force Congress to find financing for expenditures with available funds. This goes to show just how costly their climate policies would be, and that is even before the higher energy costs kick in.

But not all threats will come from Democrats. Several Republicans have suggested they will propose carbon tax legislation in the 116th Congress even though the idea has repeatedly been a nonstarter when put to a vote. A carbon tax could inflict at least a $3.7 to $5.9 trillion hit to our economy in the near term, and would put significant financial strain on the states as well. It is a bad idea that AEA will stand against no matter the form it takes.

2019 will be an important year to stay up-to-date with the American Energy Scorecard as AEA will be regularly scoring Congress on their votes relating to energy and environment policy. We will hold Congress accountable for their votes in Washington that will have direct and indirect impacts on their constituents.

While Congress will keep us busy, there are still needed reforms in executive agencies as well. Former Secretary Zinke’s successor at the Department of the Interior ought to continue the work Zinke started in streamlining NEPA and opening federal lands and waters to energy development. Both reforms would strengthen American energy independence and lower energy prices for Americans. Further, it’s time to allow for the construction of critical energy infrastructure and we hope progress is made to that end this year.

We look forward to the adoption and implementation of rules from the EPA to reform CAFE mandates, the Clean Power Plan, and more.

2019 will be another busy year in Washington D.C. and AEA is here to enable Americans, not Washington bureaucrats, to make their own energy choices. We look forward to engaging and mobilizing our 100,00+ grassroots advocates to advance market-oriented energy and environmental policies and advocate for the elimination of subsidies, mandates, and special interest giveaways that lead to higher energy costs.

To get involved, sign up here.

Additionally, be sure to follow AEA’s Energy Townhall blog throughout the year and stay up-to-date with the latest developments on social media: https://twitter.com/aea and https://www.facebook.com/americanenergyalliance.

AEA Statement on Secretary Ryan Zinke’s Resignation

WASHINGTON – In response to the announcement that Interior Secretary Ryan Zinke will step down at the end of the year, Thomas J. Pyle, President of the American Energy Alliance, made the following statement:

“In the two years that Zinke has led the Department of the Interior, he has served the country in a way we haven’t seen from the federal government’s land use agency since the days of President Ronald Reagan. Streamlining permitting under the National Environmental Policy Act, reforming regulations on methane venting and flaring, and reorganizing Bears Ears National Monument are just a few of his many significant contributions. Most importantly, Zinke has unleashed American energy potential by tapping into the vast resource reserves on federal lands and opening up previously unexplored areas to development.

Secretary Zinke’s record stands as a testament to the Trump Administration’s America First focus. He has taken a common sense approach at Interior that benefits all Americans by appropriately balancing the many different missions within the department. We look forward to working with his successor to ensure that the Department of Interior remains focused on unlocking the natural resources on federal lands and unleashing American energy potential.”

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For media inquiries, please contact Erin Amsberry
[email protected]

AEA Applauds POTUS for Reform of WOTUS

WASHINGTON – This morning, the EPA announced a proposed rulemaking to repeal the 2015 Waters of the United States (WOTUS) definition under the Clean Water Act. The rule would fully repeal the definition of the Obama administration regarding which waterways and wetlands are to be considered under the Clean Water Act. AEA President Thomas Pyle made the following statement: 

“Historically, the ‘Waters of the United States’ definition has been abused to increase the size and scope of the federal government and violate the property rights of landowners under the guise of protecting our country’s waterways. Despite the Clean Water Act affirming up front the primacy of the states in regulation of water, the scope of the federal government’s jurisdiction has been a source of litigation and controversy for decades. One administration after another, both Republican and Democrat, has sought to invade the states’ proper primacy in local water regulation, and the Supreme Court has rightfully struck down these overly broad definitions.

The 2015 WOTUS definition created by the Obama administration sought to go even further, writing a rule so broad that it effectively stretched federal regulatory power to virtually every bit of water in the country. Unsurprisingly, that rule has remained mired in litigation ever since. Rather than continuing to subject landowners to this uncertainty, the Trump administration is wise to repeal the 2015 rule in order to more accurately conform with the plain text of the the Clean Water Act as well as previous Supreme Court decisions.”

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For media inquiries, please contact Erin Amsberry
[email protected]

EPA Rule Ends Obama’s War on Economic Reality

WASHINGTON – This afternoon, the EPA proposed a rule lifting carbon dioxide emission requirements for new and modified coal power plants, a reform of an Obama-era rule which effectively mandated presently uneconomic carbon capture technology.

American Energy Alliance President Thomas Pyle made the following statement:

“The Trump Administration’s move to ease Obama-era restrictions on clean coal technology is yet another action towards bringing Obama’s ‘War on Coal’ to an end, and is fully within EPA’s power to do. The Obama-era rule defied economic reality, making the opening of new coal plants all but impossible by requiring expensive, impractical carbon capture technology.

For the last decade, regulations have been strangling the coal industry, which provides millions of Americans with affordable and reliable energy. In 2008, President Obama famously said ‘…if somebody wants to build a coal-powered plant, they can; it’s just that it will bankrupt them…’ We are pleased that the Trump Administration has taken yet another action to stop the political and regulatory assault on beautiful, clean coal.”

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For media inquiries, please contact Erin Amsberry
[email protected]

Press Release: End It, Don’t Extend It

NERA Study Shows Lifting Electric Vehicle Manufacturers’ Cap Would Inflict Harm on U.S. Households

WASHINGTON – Today, the American Energy Alliance delivered to lawmakers on Capitol Hill a study showing the economic effects of eliminating the manufacturers’ cap on the plug-in electric vehicle tax credit. The study, conducted by NERA Economic Modeling and commissioned by Flint Hills Resources, concluded that, on net, the high costs of raising the 200,000 manufacturers’ cap in the EV federal tax credit would more than outweigh consumers’ financial savings. Congress is continuing to negotiate a “tax extenders” package that could include a provision to lift the 200,000 vehicle cap and extend the program through at least 2022. The American Energy Alliance intends to score any “tax extenders” package that includes this special interest giveaway.

The study’s key takeaways include:

  • If the manufacturers’ cap were removed, the study foresees greater burdens on taxpayers and higher electricity rates to pay for EV infrastructure as utilities recover their costs plus a rate of return through a fixed charge on customer’s bills.
  • Eliminating the manufacturers’ cap on the EV tax credit would result in the net present value reduction in personal income of all U.S. households of $95 billion or about $610 per household between 2020 and 2035.
  • Extending the tax credit would have a negligible impact on gasoline demand (<1% decrease by 2035), and therefore, does not reduce carbon emissions in any significant way.
  • A lifting of the cap would funnel wealth from the American public at large to a narrow segment of Americans: EV manufacturers and wealthy EV buyers.

The full NERA study can be read here.

A summary can be read here.

American Energy Alliance President Thomas Pyle made the following statement:

“As Tesla’s Elon Musk and GM’s Mary Barra continue to lobby Congress to extend the electric vehicle tax credit and eliminate the manufacturers’ cap, this study confirms what we have been arguing for years: the special interest giveaway is a burden on American families and does not improve their lives in any tangible way. Americans want to make their own choices about what cars to drive and they shouldn’t have to pay for an electric vehicle tax credit which has been shown to mostly benefit wealthy individuals.

If policymakers in Washington were to lift the manufactures’ cap provision of the tax credit, they would inflict further economic harm on American households to the tune of a $95 billion value reduction between 2020 and 2035. And to what end? The NERA study shows that the tax credit will have a negligible impact on gasoline demand and therefore, won’t improve the environment in any meaningful way. It’s time for this tax credit to be ended, not extended.”

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For media inquiries, please contact Erin Amsberry
[email protected]

End It, Don’t Extend It

NERA Study Shows Lifting Electric Vehicle Manufacturers’ Cap Would Inflict Harm on U.S. Households  

WASHINGTON – Today, the American Energy Alliance delivered to lawmakers on Capitol Hill a study showing the economic effects of eliminating the manufacturers’ cap on the plug-in electric vehicle tax credit. The study, conducted by NERA Economic Modeling and commissioned by Flint Hills Resources, concluded that, on net, the high costs of raising the 200,000 manufacturers’ cap in the EV federal tax credit would more than outweigh consumers’ financial savings. Congress is continuing to negotiate a “tax extenders” package that could include a provision to lift the 200,000 vehicle cap and extend the program through at least 2022. The American Energy Alliance intends to score any “tax extenders” package that includes this special interest giveaway.

The study’s key takeaways include:

  • If the manufacturers’ cap were removed, the study foresees greater burdens on taxpayers and higher electricity rates to pay for EV infrastructure as utilities recover their costs plus a rate of return through a fixed charge on customer’s bills.
  • Eliminating the manufacturers’ cap on the EV tax credit would result in the net present value reduction in personal income of all U.S. households of $95 billion or about $610 per household between 2020 and 2035.
  • Extending the tax credit would have a negligible impact on gasoline demand (<1% decrease by 2035), and therefore, does not reduce carbon emissions in any significant way.
  • A lifting of the cap would funnel wealth from the American public at large to a narrow segment of Americans: EV manufacturers and wealthy EV buyers.

The full NERA study can be read here.

A summary can be read here.

American Energy Alliance President Thomas Pyle made the following statement:

“As Tesla’s Elon Musk and GM’s Mary Barra continue to lobby Congress to extend the electric vehicle tax credit and eliminate the manufacturers’ cap, this study confirms what we have been arguing for years: the special interest giveaway is a burden on American families and does not improve their lives in any tangible way. Americans want to make their own choices about what cars to drive and they shouldn’t have to pay for an electric vehicle tax credit which has been shown to mostly benefit wealthy individuals.

If policymakers in Washington were to lift the manufactures’ cap provision of the tax credit, they would inflict further economic harm on American households to the tune of a $95 billion value reduction between 2020 and 2035. And to what end? The NERA study shows that the tax credit will have a negligible impact on gasoline demand and therefore, won’t improve the environment in any meaningful way. It’s time for this tax credit to be ended, not extended.”

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For media inquiries, please contact Erin Amsberry
[email protected]

Free Market Coalition Urges Congress: Don’t Extend the Electric Vehicle Tax Credit

WASHINGTON – In light of recent conversations in Washington surrounding the electric vehicle tax credit, this afternoon, a coalition of 28 free market policy groups, led by the American Energy Alliance, sent a letter to House and Senate leaders objecting to any expansion of the federal electric vehicle tax credit.

The letter encourages Republican congressional leaders to reject attempts by the EV lobby and their allies in Congress to slip a tax credit cap increase into upcoming legislative and extender packages.

American Energy Alliance President Thomas Pyle made the following statement:

“The electric vehicle tax credit was signed into law under the condition that it would be temporary and that it would only apply to the first 200,000 vehicles sold per manufacturer. The authors’ intension behind the law was to reduce the country’s dependence on foreign oil. The tax credit is no longer needed as America now leads the world in energy production. The time has come for the tax credit to end. Under no circumstances should the cap be lifted in this lame-duck session of Congress. We shouldn’t be giving handouts to wealthy individuals to offset the costs of their luxury vehicles.”

The letter was signed by the following organizations who share AEA’s objection to taxpayers footing the bill for another massive government handout:

American Energy Alliance | American Commitment | American Conservative Union | American Consumer Institute | Americans for Limited Government | Americans for Prosperity | Americans for Tax Reform | Caesar Rodney Institute | Center for Freedom and Prosperity | Civitas Institute | Competitive Enterprise Institute | Consumers Action for a Strong Economy | Council for Citizens Against Government Waste | E&E Legal Institute | Freedom Foundation for Minnesota | FreedomWorks | Frontiers of Freedom | Georgia Public Policy Foundation | Heartland Institute | Heritage Action | Hispanic Leadership Fund | Independence Institute | Less Government | Mississippi Center for Public Policy | National Black Chamber of Commerce | National Tax-Limitation Committee | Rio Grande Foundation| Taxpayers Protection Alliance

The letter sent to U.S. House leaders can be read here. The letter sent to U.S. Senate leaders can be read here.

For more on electric vehicles, click herehere, and here.

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For media inquiries, please contact Erin Amsberry
[email protected]

AEA Applauds President Trump’s Call to Eliminate EV Subsidies

WASHINGTON – This afternoon President Trump tweeted his intent to cut subsidies for electric vehicles. GM, which has been lobbying for an expansion of the federal tax credit, recently announced their intent to close a number of U.S. and Canadian plants. AEA applauds President Trump for opposing these costly federal subsidies. AEA President Thomas Pyle made the following statement:

President Trump is right to call for eliminating the costly federal subsidies going to electric vehicles, which were put in place to reduce our dependence on foreign oil. Today, they are no longer needed since America is now leading the world in energy production.

The electric vehicle subsidy benefits a privileged few at the expense of all taxpayers. The tax credit subsidizes expensive vehicles that only a fraction of wealthy Americans want and aren’t necessarily better for the environment than modern internal combustion engines. Ending electric vehicle subsidies is a first step toward getting government out of the business of picking winners and losers, and instead forces all vehicles to compete for market share on a level playing field. We urge Congress to follow President Trump’s wishes and put these subsidies to an end once and for all during this lame duck session.”

Read more on EV subsidies:

AEA Coalition Against EV Subsidies

Commentary on EV Tax Credit Bills

Summer 2018 Survey on American’s Perceptions of EV Subsidies
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For media inquiries, please contact Erin Amsberry
[email protected]