AEA Congratulates Rep. Walden on E&C Chairmanship 

WASHINGTON – American Energy Alliance President Thomas Pyle issued the following statement congratulating Rep. Greg Walden on being elected the next chairman of the House Energy and Commerce Committee:

“Representative Walden is an outstanding choice to chair the House Energy and Commerce Committee and brings a much-needed Western perspective to the committee. I have known Rep. Walden and his team for many years and there is no doubt in my mind that under his leadership the committee will work to reset years of bad energy policies that are failing the American people. He understands the issues and recognizes that policies such as the renewable fuel standard, unrealistic fuel economy mandates, and the EPA’s carbon regulations for power plants harm American families and businesses.”

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AEA Issues Statement on EPA’s Proposed Fuel Economy Mandate

WASHINGTON – AEA Vice President Daniel Simmons issued the following statement after the EPA hastily proposed an unrealistic fuel economy mandate for 2022-2025:

“The EPA has abandoned its own timeline in an effort to ram through another unrealistic and costly mandate. It’s clear the EPA wants to make it difficult for the Trump administration to get fuel economy standards in line with the needs and expectations of American families.

“The Obama administration is trying to fit a square peg into a round hole as consumers are increasingly buying larger vehicles, such as trucks and SUVs. While fuel economy is important, Americans buy cars for a whole host of reasons, including size, safety, comfort, and many others. This stricter mandate elevates the choices of Washington bureaucrats above the choices of American families. It will make it more difficult for Americans to buy cars that fit their needs and could prevent millions of people from even buying a car. Simply put, this is an affront to the American dream of mobility.”

Click here to watch AEA’s video on the impacts of the Obama administration’s fuel economy mandates.

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President Obama Delivers Most Anemic Offshore Leasing Plan in U.S. History

WASHINGTON – American Energy Alliance President Thomas Pyle issued the following statement on the Obama administration’s five-year offshore leasing plan:

“As a farewell gift to the keep-it-in-the-ground activists, President Obama has delivered the most anemic offshore leasing plan in U.S. history. The Obama administration has excluded lease sales in the most promising areas—offering nothing in the Chukchi Sea, Beaufort Sea, or off the Atlantic coast. Under President Obama’s direction, the share of our country’s oil production from federal lands and waters has shrunk to its lowest point in decades. President Obama’s legacy is one of intentionally undermining America’s energy production and economic growth by holding our vast energy resources under lock and key. We look forward to President-elect Trump’s pro-energy and pro-growth outlook.”

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Washington State Carbon Tax Vote is a Momentous Victory

WASHINGTON – American Energy Alliance President Thomas Pyle released the following statement on the failure of Initiative 732 in Washington State. If passed, this ballot measure would have implemented a carbon tax.

“This is a momentous victory for the people of Washington State. The results show that even in a blue state that elected Governor Jay Inslee, Washingtonians have no appetite for a harmful carbon tax. It signals to lawmakers and carbon tax advocates across the country that when put to a referendum, Americans reject higher energy taxes.

“A carbon tax is a regressive tax on the American way of life. Implementing such a policy would not only raise gasoline prices, but would also raise the cost of living for American families. Low-income families would be hit the hardest, leaving them with less money to spend on other necessities like proper healthcare and education.

“The failure of I-732 should put to rest the talk of a revenue-neutral carbon tax bargain. Even environmental groups couldn’t get in line to support this ballot measure because they didn’t want to give the money back through tax cuts. Instead, they would rather spend it on growing government. For the greens, a carbon tax isn’t about the environment—it’s about the greenbacks.”

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AEA Issues Statement on Trump Victory

WASHINGTON – American Energy Alliance President Thomas Pyle issued the following statement on Donald Trump’s victory in the 2016 presidential election:

“This election showed that the American people are tired of their interests taking a back seat to special interests in Washington. President-elect Trump’s victory presents an opportunity to reset the harmful energy policies of the last generation. He has laid out an energy plan that puts the needs of American families and workers first.

“We were among the first organizations to endorse President-elect Trump and we’re excited to work with his administration to put forth energy policies that will deliver affordable energy to American families, invigorate the economy, and create more opportunities for future generations.”

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Podesta Emails Reveal Clinton Campaign’s Close Ties to the Environmental Left

In October, WikiLeaks began publishing a series of emails from John Podesta’s Gmail account. Podesta is the former White House Chief of Staff under President Bill Clinton and former Senior Advisor to President Obama, and current Chairman of Hillary Clinton’s presidential campaign. These emails number in the thousands and provide a rare window into the world of Podesta’s political dealings as well as the operations of the Clinton campaign. Unsurprisingly, given Podesta’s longstanding relationships with progressive donors and leaders in the national environmental lobby, many of the exchanges involve the likes of Tom Steyer and Nat Simons. It also includes leaders of the national environmental lobby like Gene Karpinski of the League of Conservation Voters (LCV)

Podesta’s emails reveal a collusive, quid-pro-quo relationship between the Clinton campaign and national environmental groups. They show a disturbing and unusual level of access to power for billionaire donors like Steyer and Simons, and that Bernie Sanders never really stood a chance at getting the endorsement of prominent environmental groups. The emails also reveal attempts to silence academics and discourage the production of oil and gas resources. Lastly, the emails show the political calculus behind forming the Clinton campaign’s policy positions.

There is much more to learn from the Wikileaks email drop, but here are some noteworthy exchanges that we’ve discovered or that have been reported on in the media:

1. Clinton campaign coordinated on endorsements from NRDC and LCV, showing that Bernie Sanders never really stood a chance.

An email exchange from June 2015 shows that a member of the Clinton campaign met with NRDC and LCV to discuss the perks that would come along with public endorsements from those groups.

The Natural Resource Defense Council

According to the emails, NRDC’s endorsement would come with two fundraisers raising potentially $1 million for the campaign. In return for their endorsement, NRDC requested that Clinton meet with their political committee.

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Although NRDC didn’t endorse until May 2016, it appears that they were prepared to endorse early or whenever the campaign preferred. The Clinton staffer wrote: “They would like to endorse early – June/July [2015] but willing to do a public endorsement at any point (want to be a benefit to the campaign)”

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This shows that NRDC was already committed to Clinton even amidst a competitive primary with Bernie Sanders.

The League of Conservation Voters

In the same email, the Clinton staffer reported the following about LCV:

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According to the email, LCV’s endorsement—like NRDC’s—was conditioned on a quid pro quo arrangement:

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2. LCV helped with Clinton’s answers to questionnaire

A second email exchange from July 2015 shows a back and forth between the Clinton campaign and LCV over Clinton’s answers to their questionnaire. After receiving Clinton’s responses, LCV’s Tiernan Sittenfeld wrote in an email to John Podesta that “we very much hope that the attached questionnaire can be strengthened.”

Included in this email were suggested edits to Clinton’s responses. For example, Sittenfeld wrote, “It’s good to see her moving in the right direction, and we know she has been clear that she is not going to comment while the process is still underway, but it’s hard to imagine we can move forward until she makes clear she now opposes KXL.”

It’s clear that LCV wouldn’t move forward with an endorsement until Clinton explicitly opposed the Keystone XL pipeline.

In a third email on September 9, 2015, an updated version of the Clinton’s responses to the questionnaire was sent around with a “new KXL answer,” which explicitly opposed the construction of Keystone XL.

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Later that month, Clinton publicly opposed the pipeline and, in November 2015, LCV endorsed Clinton over Bernie Sanders. It’s worth noting that Sanders has a lifetime score of 95% on LCV’s legislative scorecard, while Clinton has a score of 82%.

3. Emails expose Obama’s Offshore Alaskan shell game.

An email from former Interior Department Deputy Secretary and current Stanford lecturer David Hayes suggests that the Obama administration did not want Shell to succeed in their oil exploration in the Chukchi Sea off the coast of Alaska. The Obama administration may have officially “approved” a permit to drill, but placed so many restrictions on the drilling that it became incredibly expensive. The Obama administration allowed Shell to drill a single exploratory well at the cost of $7 billion. Shell ultimately suspended their operations in the Chukchi. It’s important to note that there are vast oil resources in the Arctic, but regulatory hurdles from the Obama administration severely limited Shell’s ability to explore for those resources.

In September 2015, following Shell’s withdrawal from the Chukchi, David Hayes emailed Podesta to celebrate the news. Hayes, who was Deputy Secretary at Interior during the negotiations, stated, “Shell’s dry hole in the Chukchi obviously is huge and welcome news.”

Hayes continued:

“Perhaps the best part of this is that the Bush-era leases in the Chukchi and Beaufort Seas that were purchased for $2+ billion in 2006 are now likely to expire before any new finds are confirmed. As a result, a future Administration should avoid the need to spend billions to buy out leasholders’ [sic] interests in order to prevent future Arctic offshore drilling.”

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It is very telling that this former high-ranking official at the Interior Department (while the agency was considering Shell’s permit) was so ecstatic when Shell pulled out of the Chukchi.

However, Hayes’s reaction shouldn’t be all that surprising if you examine the arduous process Shell endured to explore for oil in the in the Chukchi Sea.

In 2008, Shell spent $2.1 billion for its tracts in the Chukchi Sea. However, after the oil spill in the Gulf of Mexico in April 2010, President Obama placed a moratorium on all offshore production.

In August 2012, the Obama administration finally gave Shell permission to start “certain limited preparatory activities” in the Chukchi Sea. However, Shell’s 2012 drilling plans were stymied by weather and sea ice, regulatory hurdles (including a government-ordered shortened drilling season), and lawsuits from environmental organizations.

Although the Obama administration approved Shell’s permit, their actions suggested they were intent on making it as difficult as possible for Shell to produce oil in the Chukchi. The Institute for Energy Research wrote in 2012:

“The Obama Administration says that it is supportive of drilling in the Arctic, but its regulatory challenges from the Department of Interior, the Environmental Protection Agency, and the Coast Guard have slowed Shell’s ability to explore for oil this summer, reducing the company’s best efforts to producing top holes. It is difficult enough to explore for oil in the Arctic where weather and sea ice are major factors, but regulatory hoops make it just that much more difficult. These regulatory challenges have postponed plans of other oil companies to invest in Arctic oil exploration that has cost Shell $4.5 billion already without one well drilled.”

[Click here for a more in-depth analysis]

Ultimately, after investing $7 billion and only being allowed to drill one well, Shell suspended their efforts in the Chukchi.

The fact that Hayes is so excited by Shell ending their activities in the Chukchi shows that Interior did not want Shell to succeed and did not want energy production on federal lands or waters. This indicates that the Obama administration’s approval of Shell’s drilling permit was likely nothing more than a shell game.

4. Podesta was the banker in Tom Steyer’s “pay to play” relationship with Clinton

Several email exchanges between billionaire environmentalist donor Tom Steyer and Podesta show a very close relationship. In one email, Steyer asks Podesta about setting up a time for a call, to which Podesta replied “call anytime.”

 

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In a March 2014 exchange, ThinkProgress editor Judd Legum asked Podesta if it would be “too late to talk to Steyer about the new climate money in early May?”

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In February 2015, Podesta and Clinton campaign manager Robby Mook emailed about the prospect of giving Steyer a formal role within the campaign. While Mook cautioned against this action, Podesta pointed out that they could be leaving a lot of money on the table:

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While Steyer wasn’t given a formal position on the campaign, this exchange provides a glimpse into Podesta’s pay for play mindset.

An email from a Clinton campaign staffer to Podesta outlines a plan for Steyer to host a fundraiser in San Francisco for Clinton.

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On the same email chain, it’s revealed that Clinton campaign lawyer Marc Elias is also Tom Steyer’s lawyer:

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5. Podesta was also cozy with hedge fund billionaire Nat Simons

Another donor that Steyer often corresponded with is Nat Simons, a hedge fund billionaire and founder of the Sea Change Foundation—a secretive foundation that funnels hundreds of millions of dollars to climate groups and the Democratic Party. Sea Change has come under fire for taking millions from a Bermuda shell-company based out of a law firm with ties to Russian oil interests.

In one email, the two set up a time to discuss an upcoming climate funders dinner with Christiana Figueres, the Executive Secretary of the UN Framework Convention on Climate Change.

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In a later email to Podesta and Figueres, Simons outlines the purpose of the dinner and states that this isn’t a fundraising event, but admits that funding and politics “will almost certainly form part of the backdrop for your presentations and discussions.”

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While these may seem like benign emails, they reveal an unusual level of access to power for billionaire environmentalist donors like Tom Steyer and Nat Simons.

6. The Center for American Progress sought to silence academics

One theme in the leaks is that neither the truth, nor the law matters. John Podesta founded the Center for American Progress and is currently on the board. The Center for American Progress and Podesta himself have been very active in climate politics, working to silence critics and academics, who disagree with them.

For example, in 2014 Judd Legum of the Center for American progress went into full attack mode because Nate Silver of fivethirtyeight.com hired Roger Pielke Jr. to write on climate change. What Pielke Jr. wrote for fivethirtyeight.com was factually correct and supported by the consensus science from the Intergovernmental Panel on Climate Change. Regardless, the Center for American Progress wanted to silence Pielke Jr.

In an email to Tom Steyer, Legum brags that the Center for American Progress is the reason that Pielke had been silenced:

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For more on this, see this article by Robert Bryce.

7. Podesta himself has worked to silence academics

Laurence Tribe, the famous liberal constitutional law professor and President Obama’s former professor, represents Peabody Energy and wrote a legal brief opposing the Obama administration’s regulation of carbon dioxide under the Clean Air Act. Podesta wanted to publicly attack Tribe for his opinions of what is legal under the Clean Air Act. In the below email, Podesta asks Tom Steyer to get activist Bill McKibben to attack Tribe.

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Steyer responded that he was “on it.”

It is ironic that Podesta states he supports academic freedom in the same email where he gives marching orders to student organizers and uses a billionaire donor to coordinate the protest.

8. Clinton’s public and private positions on energy

These emails also provide a glimpse into how Clinton often takes differing public and private positions on various policy issues. In fact, in a transcript of a paid speech contained in one of the leaked emails Clinton admits as much saying, “you need both a public and private position.”

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A number of emails show conflicting positions from Clinton on a number of energy related policy issues including a carbon tax, hydraulic fracturing, and pipeline infrastructure.

Carbon Tax

In one email exchange from June 2015, Clinton campaign manager Robby Mook stated that he’d “be a bit nervous about rushing to say we’d never support such a tax”, but also stated, “To be clear: it’s lethal in the general, so I don’t want to support one. But don’t want to give bernie [sic] contrast right now.”

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However, on January 20, 2015 some of Hillary Clinton’s energy advisors wrote a memo to Clinton considering the possibilities of a carbon tax. In the memo Clinton’s advisors admit that a carbon tax would disproportionately harm the poor. The advisors wrote:

“It is important to note that any policy that increases energy costs – including the recently announced EPA regulations on power plants and methane emissions — will disproportionately impact low-income households.”

Pipelines

Clinton’s track record shows a clear opposition to pipeline infrastructure. She publicly opposed the Keystone XL pipeline (after feeling pressure from LCV) and the Northeast Energy Direct pipeline. However, one of the leaked emails reveals the Clinton campaign is worried about losing favor with trade unions over her opposition to these pipelines.

An email chain from August 2015 shows members of the campaign had a back and forth over the release of an op-ed and fact sheet about the Keystone XL pipeline. In the exchange, one staffer expresses concern about potentially upsetting the building trades, stating, “Just want to make sure we don’t catch anyone by surprise. We are so close to getting bldg trades and if we do this right, it will be ok even though they won’t like it.”

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In another email from February 2016, a campaign staffer states that Clinton has “privately told the building trades that she does not oppose pipelines.”

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This exchange came after Clinton told a University of Virginia student that she opposed the Northeast Energy Direct pipeline.

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Hydraulic Fracturing

Another issue where Clinton has taken different public and private positions is the use of hydraulic fracturing. When asked about her position on hydraulic fracturing during a primary debate, Clinton stated, “By the time we get through all of my conditions, I do not think there will be many places in America where fracking will continue to take place.”

However, in a transcript from a paid speech to Goldman Sachs, Clinton calls America’s energy revolution (made possible by hydraulic fracturing) a “gift”.

One email shows Clinton staff discussing potential allies to “whack” Bernie Sanders for his position on banning hydraulic fracturing. The email exchange also warns against coming off as too pro-hydraulic fracturing.

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It’s difficult to determine Clinton’s exact position on some of these issues based on her public and private statements. However, as the saying goes, “you’re known by the company you keep.” The fact that John Podesta, who is Clinton’s campaign chair and is deeply involved with the national environmental lobby, worked to kill Keystone XL, and is close to billionaire environmentalists like Tom Steyer, George Soros, and Nat Simons, tells you all you need to know about where a Clinton administration would come down on these issues. Her administration would be anti-pipeline, anti-hydraulic fracturing, and pro-carbon tax.

AEA will update this post as more information comes to light.

Issues to be on the lookout for during the lame duck session

Once the polls close on November 8th, Congress will enter what is known as the lame duck session. This is the period after elections before the next Congress begins, when the current Congress — composed of some Senators and Representatives who lost elections — will continue to legislate. The 114th Congress will have 16 days in session following the elections this year. The following is a preview of a few of the energy-related issues that may arise.

Federal Spending

On December 9th, the current Continuing Resolution expires (the CR is the short-term funding bill passed at the end of September that kept the government funded). Authorizing funding for the federal government after December 9th is the only must pass legislation for the remainder of the 114th Congress.

This year-end deal is nothing new, as Congress has frequently resorted to last minute omnibus legislation: the last ten fiscal years have resulted in some combination of a CR and an omnibus spending bill. Instead of passing 12 individual appropriations bills — as is intended by law — omnibus bills combine all 12 into one massive bill. However, these types of bills frequently result in bad policy as negotiators leverage brinksmanship to push otherwise politically unpopular policies, forcing members to vote on a broad package as opposed to debating individual policies on a case-by-case basis. In fact, just last year Congress passed a massive omnibus bill that resulted in a costly five-year extension of the wind production tax credit (PTC) and solar investment tax credit (ITC), a three year extension of the Land and Water Conservation Fund (LWCF), and failed to block funding for the wasteful Green Climate Fund (GCF). This was all traded to lift the ban on oil exports. Ultimately, this bargain was a bad deal for the American people. Lifting the export ban was good policy and was bound to happen, as domestic oil production continues to rise. However, trading extensions of the PTC, ITC, and LWCF, as well a deposit into the GCF in exchange for lifting the export ban is a bad deal.

This is a perfect example of why year end lame duck spending bills are bad for the American people. Fortunately, Speaker Ryan has floated the idea of moving smaller “minibus” spending bills instead. While there is still potential for bad policy, such as another tax extenders deal, there is a lesser risk of Congress selling the farm for one or two good provisions. However, it will be imperative to monitor the situation to block wasteful spending, such as funding the GCF.

Tax Extenders

Last year’s last-minute spending bill included an extension of the wind PTC and solar ITC, as well as a separate, larger tax extenders bill (the PTC and ITC hitched a ride on the spending bill to be offset by the oil exports provision). All told, these provisions cost nearly $24 billion. Yet immediately after passage of both the spending and tax bills, Senate Minority Leader Harry Reid noted that several tax extenders had been left out of the package due to what he called a “drafting error.” These included several Section 48 energy credits dealing with small wind facilities, geothermal heat pumps, fuel cell facilities, and combined heat and power properties. There has been discussion that these extenders could be tacked onto any spending bill, just like last year. These subsidies shouldn’t be given the green light just because Senator Reid claims they were accidentally “left out” of last year’s spending bill.

These tax extenders should not be renewed, whether it be in an omnibus, a minibus, or as a standalone tax bill (which is unlikely). As has been observed over and over, the argument that tax credits, such as subsidies like the PTC, boost industries falls flat. The PTC does help the wind industry, but at the cost to the rest of America. As Warren Buffet explained, “on wind energy, we get a tax credit if we build a lot of wind farms. That’s the only reason to build them. They don’t make sense without the tax credit.” If the only reason to build something is to get tax credits, then it doesn’t make economic sense.

All signs point to a tax extenders package being introduced soon after Congress reconvenes after the elections. Congress should recognize that these tax credits do far more harm than good, all at the taxpayers’ expense. They should allow these tax credits to expire at the end of this year.

Energy Bill Conference

Conference work on a comprehensive energy bill began months ago. Yet the process has been slow, as both chambers and parties pushed this effort down on the list of priorities. As this multiyear effort for major energy legislation has reached its final stage, the prospects of passage during lame duck look increasingly unlikely. Negotiators will need to work through a number of complex issues such as LNG terminal and pipeline permitting reform, energy subsidies, grid modernization, forestry and hunting provisions, and energy efficiency policies, to name a few. Negotiating these issues in earnest will take lots of time, and the legislative calendar only provides for roughly 16 legislative days after the elections. Thus far, there have been few substantial agreements in the conference meetings, as other priorities and campaigns have taken up most of the time.

As we’ve noted before, one significant hang-up continues to be the permanent reauthorization of the LWCF. The LWCF essentially provides funds for agencies to continue purchasing private lands and adding to federal land holdings. This means less private and more federal lands, particularly in western states. Again, this program was reauthorized for three years in last year’s omnibus, but several Senators demand permanence. The issues with this policy are numerous, including the fact that relinquishing Congressional review and oversight is generally bad practice and a principle of poor governance.

Unless the conference committee and their staffs can resolve this impasse, as well as a host of other policy differences, an agreement on an energy package during the lame duck session remains a long shot. However, it is likely that this legislation, either the current House and Senate bills or some variation of these bills, resurfaces in the 115th Congress.

Conclusion

Lame duck sessions always offer the risk of poor policy being pushed through due to a lack of accountability. The deadline for must pass legislation, such as funding bills, further complicates the situation. It is imperative to stand for free-market principles in this period and promote policies that ensure reliable and affordable energy.

Clinton camp admits that carbon tax would disproportionately harm the poor

According to a document released by WikiLeaks, on January 20, 2015 some of Hillary Clinton’s energy advisors wrote a memo to Sec. Clinton considering the possibilities of a carbon tax. In the memo, however, Clinton’s advisors explain how a carbon tax would disproportionately harm the poor.

The advisors write:

It is important to note that any policy that increases energy costs – including the recently announced EPA regulations on power plants and methane emissions — will disproportionately impact low-income households.

These advisors understand that a carbon tax has two important economic impacts. First they understand that a carbon tax increases the cost of energy. They write, “Preliminary analysis suggests a $42 per ton GHG fee would raise average annual energy costs by $478 per household between 2020 and 2030.” Second, that increasing the cost of energy drives up the costs of other goods and services. They explain:

The cost of other household goods and services would increase as well as companies pass forward the higher energy costs paid to produce those goods and services on to consumers. Price increases for non-energy goods would be quite small (generally less than 1%), but given the number of goods effected, the overall impact on household expenditures would be material. As with the increase in energy costs, the increase in the cost of non-energy goods and services would disproportionately impact low-income households.

We agree and it’s good to see Clinton’s advisors admitting as much.

The memo includes the following chart showing the household costs of a $42 a ton carbon tax. The chart also shows a GHG rebate to alleviate the regressive impacts of a carbon tax.

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In theory a GHG rebate might alleviate some of the concerns these carbon tax proponents have for increasing energy costs for low-income families, but there are a number of real-world problems with such a rebate.

A major problem is that competing special interest groups want to use the proceeds from a carbon tax for different purposes. The brouhaha over the proposed carbon tax in Washington State shows why such a rebate would be difficult.

Washington state’s carbon tax proposal would use the revenue to reduce the state sales tax, fund a rebate for lower-income households, and eliminate the business and occupation tax. This sounds like a proposal that would garner support from the left, but that isn’t the case. This plan is opposed by an alliance of groups on the left because they want to spend the carbon tax revenue on their own priorities. Dave Roberts of Vox explains:

the alliance’s core objection to I-732 is that it is revenue-neutral — it surrenders all that precious revenue, which is so hard to come by in Washington. That, more than anything else, explains why alliance groups are not supporting it.

Their calculus is simple: Properly dealing with climate change requires lots of investment, and if a price on carbon doesn’t fund that investment, what will? Given how difficult it is to raise revenue in the state, the idea, often put forward by I-732 proponents, that greens can simply find that money somewhere else is, in the alliance’s view, naive to the point of malice.

Labor groups want investments to incentivize green manufacturing and retrain displaced workers. Communities of color and low-income groups want “a share of the money to go to the infrastructure that we need to weather climate change,” says Schaefer, like affordable housing near public transit. Tax cuts and credits “are not going help the folks I work with go out and buy a [Nissan] Leaf,” Schaefer says.

As the earlier chart shows, a carbon tax would harm all Americans—especially lower-income Americans. And while a carbon tax would undoubtedly generate billions of dollars in new tax revenue, there would be no way to implement the sort of rebate system outlined by Clinton’s advisors because so many different special interests groups want a piece of the revenue.

Furthermore, even if a carbon tax rebate would set up as the advisers suggest, there is little reason to believe that it will remain that way long term. There are always competing priorities for money and over time the rebates would likely fall.

Conclusion

In sum, it’s good to see the carbon tax proponents admitting that a carbon taxes increases costs for all Americans and “would disproportionately impact low-income household.” As the situation in Washington state shows, the groups on the left want the carbon tax revenue, but all of the groups want to spend the money in different ways, making it incredibly difficult to set up a carbon tax that would garner enough support on the left, let alone the right.

WIRED reporter gushes over Paris agreement, but misses key facts

Wired science reporter Nick Stockton recently wrote an article praising John Kerry for his leadership on the Paris climate agreement. Stockton begins his article with a rather dramatic take on the Secretary of State’s role:

The Secretary of State is the frontal lobe of US foreign policy—managing the country’s diplomatic nervous system and its relationships with every other nation in the world. The vast majority of that work is slow and subtle: chipping away at a humanitarian crisis here, greasing the wheels of progress there. Occasionally a big one comes along, something that deals with the whole world, forcing the whole diplomatic brain to work to produce a universal agreement.

Of course the U.S. Secretary of State plays a crucial role on the global stage, but the “universal agreement” Stockton is referring to isn’t a plan to fight terrorism or bring affordable energy to impoverished people around the world. No, Stockton is referencing the Paris Climate Agreement. He continues:

The Paris Climate Agreement was perhaps the biggest of all biggies. The UN treaty [sic], drafted last December and set to go into full force this November, seeks to limit the most devastating effects of global warming through a combination of drastic emissions cuts and socio-structural adaptations. This Earth Day, John Kerry signed the treaty [sic], the first time in history the US has officially begun thinking, and therefore acting, in concert with the rest of the world on climate change.

Stockton’s first misstep comes in this paragraph when he refers to the agreement as a treaty. While other countries may be sending this agreement through the proper channels to be ratified as a treaty, the U.S. is not. For the agreement to become a binding treaty for the U.S., it must be ratified by two-thirds of the Senate (Article II, Section 2, U.S. Constitution). Even though President Obama has traveled the globe to implore countries to ratify the agreement and has stressed in the U.S. he has stressed to the American people how the U.S. must “lead on climate,” he has yet to send the agreement to the Senate.

Another misstep Stockton makes is when he writes that this is “the first time in history the US has officially begun thinking, and therefore acting, in concert with the rest of the world on climate change.” In 1992, the U.S. Senate ratified the United National Framework Convention on Climate Change (UNFCCC). The UNFCCC did not give the President independent authority to act on climate change, but neither does the Paris Agreement. The Paris Agreement is non-binding and there are no penalties for non-compliance.

Stockton then lays out what the Obama administration’s plan for meeting the agreement:

Here’s what the US is in for: cutting between 26 and 28 percent of its greenhouse gas emissions (based on 2005 emissions levels) by 2025. This is going to require a massive restructuring of the country’s energy infrastructure. Nobody is quite sure exactly how it will look, but in broad strokes coal, oil, and natural gas have got to go. Meeting the Paris goals is also going to require industry-wide changes in agriculture, automotive, commercial air travel, marine shipping, construction, manufacturing, and pretty much every other way people make a living in this country.

It’s true that the Obama administration agreed to cutting between 26 and 28 percent of GHG emissions (even if it is a non-binding commitment), but Stockton fails to address the negative implications of such a plan. In fact, he casually glosses over it by simply saying “coal, oil, and natural gas have got to go.”

Stockton’s flippant remarks overlook the fact that coal, oil, and natural gas make up over 81 percent of the energy consumed in the U.S., as the following chart shows:

Source: http://instituteforenergyresearch.org/wp-content/uploads/2016/04/energy-consumption-by-source-march-2016.png

Moving away from these three resources anytime soon is completely unattainable. And even working towards such a goal would prove costly for Americans. For example, let’s take a look at the electricity sector.

A recent study from the Institute for Energy Research shows the cost of shutting down existing electricity resources like coal and natural gas in favor of wind and solar power. The study found that on average, electricity from new solar is 3.5 times as expensive as electricity from existing coal and four times as expensive as electricity from existing natural gas.

Even if we compare the costs of electricity from new generation sources, new solar is still 2.5 times as expensive as new natural gas. Of course, cost is just one factor. Solar power’s intermittency issues (the sun isn’t always shining) also poses a problem for Stockton’s idea that “coal, natural gas, and oil have got to go.”

Another study by NERA Economic Consulting found that the Obama administration’s so-called “Clean Power Plan”—the centerpiece of their climate agenda—could cost nearly $300 billion.

Restructuring our country’s energy infrastructure, as Stockton suggests, means Americans would pay much more for the energy they use. This would have the harshest impact on lower-income Americans, as they spend a higher percentage of their income on energy costs. Of course, Stockton fails to address this at all.

Advocates for the “Clean Power Plan” and the Paris Climate Agreement will point to the alleged health benefits of their plan. You can find AEA’s rebuttal to these claims here.

Another mistake comes in Stockton’s closing paragraph. He writes:

With the Paris Agreement in effect, the US is obligated to uphold its end of the bargain. Climate change is now a front-line global issue, affecting everything from trade to geopolitics. If the US reneges now, it loses the world’s trust—and possibly the world’s business. That should be enough to make any future president stop and think.

Stockton incorrectly claims that the U.S. is “obligated” to honor the Paris agreement. The agreement itself is non-binding and it contains no mechanism to deal with non-compliance. Furthermore, without the advice and consent of the Senate, a future administration could simply ignore the non-binding agreement—undoing President Obama’s commitments. Lastly, the world knows that this is a non-binding agreement and therefore other countries understand that any country, including the United States, can pull out at any time.

To truly lead on climate, the President needs to get the American people on board and the way to do that is to follow the Constitution and submit the treaty to Senate for its advice and consent.

Since the agreement hasn’t been sent to and approved by the Senate, the next administration could simply withdraw from the current administration’s commitments. Donald Trump has already promised that if elected he would cancel the agreement. He could do this by simply not following through with the promises made by President Obama. Of course, if Hillary Clinton is elected president she will likely try to follow through with President Obama’s commitments. But as Stockton points out, the “Clean Power Plan” is in legal limbo meaning that an important vehicle for achieving President Obama’s commitments is far from a done deal.

Regardless, it is dishonest for the media to portray the Paris agreement as a binding treaty for the U.S. because that’s simply not the case.

Conclusion

Stockton, along with many others in the media, have misrepresented the Paris Climate Agreement and have painted a rosy picture of the impacts of such a plan. The media’s job isn’t to champion a certain policy or carry water for an administration, but rather to report the facts and the full story to their audience. Unfortunately, Wired’s latest piece on the Paris Climate Agreement fails to do this.

AEA President Tom Pyle Talks Energy and the Election on One America News

American Energy Alliance President Thomas Pyle recently appeared on One America News to discuss the election and where Donald Trump and Hillary Clinton stand on energy issues. View the video below:

AEA endorsed Donald Trump for President in July.