Yesterday, Power Line posted a story on the coming energy legislation. The article quotes Ken Haapala, Executive Vice President of the Science and Environmental Policy Project (SEPP:
"Although the Kerry-Lieberman American Power Act (APA) appears dead, Senator Reid announced he will introduce yet another version of cap-and-tax this month by any other name. But both the Congressional Budget Office (CBO) and EPA have produced studies showing that cap-and-tax will be economically harmful. The CBO report is a solid, prudent review of three studies: Resources for the Future, Brookings Institution, and CRA International. All report that significant declines in total employment will result from APA. ..."
The question being asked is, "If this bill is so harmful to the economy, why does it keep coming up?" Follow the money. The article explains that under the law, allowances for carbon dioxide emissions will be sold and some will be distributed free. The part distributed free during the 2013 to 2034 life of the program as $2.1 Trillion - about the amount of total Federal revenues in 2009. The largest beneficiary is the electricity industry to the tune of $870 Billion.
The article further points out:
"Politicians claim the value of the free allowances to the electricity industry will then flow to the consumers of electricity. Chamberlain uses established microeconomic theory backed by empirical studies to show that much of the value will flow to the shareholders of the companies that are generally in the highest income group. Thus, the entire scheme results in a massive transfer of wealth from the lower and middle income groups to the wealthy. No wonder Duke Energy declared cap-and-trade will give share holders a $1,000,000,000 (Billion Dollar) profit.
"Very interestingly, the Carbon Capture and Storage (CCS) industry, basically non-existent with an unproven technology, receives $246 Billion in free allowances - twice the 2009 budget for California. Given the sheer volume of carbon dioxide involved, it is highly unlikely that CCS will ever become viable. ..."
As usual, the American consumer (and taxpayer) will provide the money to flow to the wealthy. We need a press that will tell this story--when will they figure out that they also will be negatively impacted by the programs the Obama Administration is attempting to push through?
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