This may seem like blasphemy: the House Bill on energy known as The American Clean Energy Act is the most detrimental bill the House has passed since the Patriot Act. Like the Patriot Act, it is not what it says it is. It should never become law.
It is not a clean energy bill.
It is not a pro-solution climate bill.
It is not a pro-American bill.
It is an energy giveaway bill.
It is a bill that deletes Clean Air Act authority for the Environmental Protection Agency over nearly 50 coal plants.
It is a bill that sets up an unfair energy tax system called cap & trade tax (CTT).
It is a bill that sets up CTT, that doubles as a financial derivative, which would be responsible for economic deterioration of U.S. economy, just like the CDOs and CDSs that helped cause the current economic downturn.
Further, the Senate bill versions are just as bad or worse.
At issue is a battle that has a huge bearing on the United States and world’s environment, economy and social order. The American Clean Energy and Security Act, or ACESA, has passed the U.S. House and is now in a number of different forms before the Senate. With the change in the administration and increased majorities in Congress, we had all hoped that the 111th Congress would act fast to implement a new climate bill to start controlling our pollution output like carbon dioxide.
The House Bill (HR 2454), however, is replete with problems, as are the Senate versions currently being drafted. While it is significant that a house of Congress has, for the first time, passed a climate bill, it is also important that the bill that Congress ultimately enacts imposes a tax on energy in a way that will discourage excess energy use. That is because energy use analysis indicates that price increases are the most effective way to curtail energy use, improve the way we use energy and decrease pollution.
THE PROBLEMS WITH ACESA IN ITS CURRENT FORM
There are numerous problems with the 1428-page House Bill,(1) so I do not attempt to address all of them. Rather, I will highlight three main areas that need to be corrected in a final bill if it is to be effective:
– ACESA implements cap & trade tax and financial derivative system instead of a simple carbon tax.
Emissions trading, also known as “cap &trade” is a way of controlling pollution by providing economic incentives for achieving reductions in the emissions of pollutants. Under “cap & trade” the government sets a limit, or “cap” on the total amount of a pollutant that can be emitted. Companies or other groups are issued permits that give them the right to emit a certain percentage of that amount of pollutant (“credits” or “allowances”). The total amount of credits or allowances cannot exceed the cap.
Companies that need to increase their emission allowance can buy credits from other companies who don’t need all of their credit because they pollute less. This transfer is the “trade.” Thus, companies have a financial incentive to reduce the amount of pollution they emit and a disincentive to exceed their set allowance.
While cap & trade is a tax in that the U.S. Government will be collecting auction fees/taxes, it is also a financial derivative, in that the certificates issued through auction will derive their value from the sold “right” to pollute.
ACESA includes a cap & trade system where the certificates would be issued through an auction. By requiring companies to buy their certificates, the government forces them to pay for the “right” to pollute. When he was campaigning for the presidency, candidate Obama promised that under his cap and trade plan, 100% of the certificates would be auctioned—in other words, no one would get a free ride to pollute.
Unfortunately, the house bill only requires 15% of the emissions certificates to be auctioned, or paid for, during the first year. That figure will increase to over 70% by 2030. Obviously, this reduced auction amount is a major disappointment to those of us who want to see polluters, not the public, bear the financial burden of their pollution.
The reduced auction amount isn’t the only problem with the cap & trade provision in the bill. Although cap and trade systems can be effective they are also susceptible to abuse. Opportunists are able to take advantage of the complexity of the mechanism to “game the system.” To curb this potential problem, the House Bill sets up an oversight committee under the Commodities Futures Trading Commission to regulate hedge fund and other derivative-related aspects of cap & trade. However, it is only a cursory oversight arrangement and there is legitimate concern that it would not prevent market manipulation , which in turn could lead to a new economic bubble in this new speculative market and ultimately hurt the U.S. economy. Cap & trade tax schemes have already been exposed in Europe.(2)
All of these problems with the cap & trade approach could be eliminated by implementing a simple carbon tax.(3)
ACESA Eliminates EPA Clean Air Act Authority to Regulate Carbon Dioxide
The House Bill is also problematic because it proposes to strip EPA’s authority to regulate carbon dioxide under the Clean Air Act.(4) This authority was only recently recognized by the United States Supreme Court, and EPA is only now moving toward exercising it; however, the House Bill would reverse that progress.
At least one analysis of the House Bill indicates that this proposed de-authorization of the EPA would mean that 47 coal plants will be able to be built without EPA regulation. Clearly, that outcome is contrary to any meaningful goal to reduce carbon emissions.
ACESA Funds Coal and Nuclear Energy More Heavily than Increased Efficiency and Renewables
Finally, the proposed funding under the bill for new technologies has misplaced priorities and incentives. Under the House Bill, $60 billion would be allocated for “clean coal” carbon capture and sequestration (CCS) technology. CCS is a technology that would capture the carbon coming out of the coal stack and then sequester it so that it does not get into the atmosphere.
There are a number of different possibilities in the process of being developed, but none has been demonstrated on a commercial scale, and it is not clear that CCS will be economically practical. Yet, this is the largest chunk of money directly listed in the bill for any one technology. While energy efficiency and renewable energies get $90 billion by 2025, or $6 billion a year or so, that is only a fraction of the amount that coal and nuclear energy will get.
One of the Senate bills includes loan incentives that would give nuclear and coal CCS hundreds of billions of dollars in aid. The decision to disproportionately encourage these two technologies with financial aid and incentives in a “clean energy” bill is simply baffling. Keep in mind that nuclear has been shown to be an uneconomical technology, and that coal CCS, even if it works, will lead to much more coal mining. The truth is, there is no clean coal, nor would any reasonable person consider nuclear energy a “clean” fuel given its significant waste problem.
Yet the bill’s definition of clean energy is so loose, under it coal CCS and nuclear energy will be considered “clean.” And here’s the kicker. These two technologies, coal CCS and nuclear, are so expensive (in the range of 25-35 cents per kilowatt-hour for new units) that if we put our dollars into them, they will suck so many dollars away from energy efficiency and renewables (in the range of 2-25 cents per kilowatt-hour) that there would not be enough money to solve the climate solutions we desperately need.
In summary, here is what needs to happen to make these bills a positive force: 1) restructure cap & trade tax or replace it with a simple carbon tax; 2) do not remove the Clean Air Act authority from the EPA; and 3) re-design this bill to fund the technologies that are truly clean.
You can call your senators and stress how irresponsible the cap & trade system is. If the energy giveaway bill passes the Senate, you can then call your Representatives and Senators to ask them to block the reconciliation of these two bills.
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Note: An earlier version of this article appeared in the Sierra Club Rincon Group newsletter, under my new appointment as Energy Subcommittee Chair for this Group.
1Available at http://energycommerce.house.gov/Press_111/20090701/hr2454_house.pdf
2See http://carbontax.org
3Associated Press article in Arizona Daily Star (AP), Fight Against Global Warming Spawning New Type of Crime: Carbon-Permit Fraud, 8/22/09, p. A12, http://www.azstarnet.com/sn/news/305938.php
4See analysis at http://www.psr.org/take-action/senate-letter-climate-legislation.html
Editor: I asked James to reflect on his experience running a local legislative race, this is the report he filed.
by John Adams


DFATucson has been pressing Gabby Giffords for awhile now to get off the dime on impeachment and, as a very minimal sign that she's willing to fulfill the Constitutional role for which we hired her, perhaps sign a letter being circulated by Rep. Wexler calling for investigations of possible criminal acts by the Bush Administration (which could lead to an impeachment).
Your 
Link: 
























Democrats' Citizenship Will Be Tested - oh, and Mike Returns
by Michael Bryan
The Obama Administration will test Democrats' in ways that being the loyal opposition during the lost Bush years never could.
We were righteous. We were powerless. We were vindicated. We were innocent. Now, with Obama in the Oval and Democrats in utter control of Congress, we are none of those things. Suddenly, the Democratic Party and its elected officials can shape the world; the question now arises, what happens when what is created is not to our liking?
We knew what to do when the detested Bush and his party of greed and hypocrisy were in charge: march, organize, shout, condemn, etc. But what shall Democrats do when they disagree whole-heartedly with what the Democratic caucus and President Obama are up to?
The temptation is to become apologists for their actions. Research has shown clearly that partisans, confronted with facts that demonstrate hypocrisy by one of their own, will rationalize it away - smooth it over mentally to make it more comfortable. It is much harder to remain open-minded, cleave to your values, and condemn those actions.
Rationalizing away uncomfortable facts is what partisans and politicians do. Making compromises, seeing the other side, achieving what seems possible: this is the role of politicians.
Following your conscience, articulating marginalized (i.e., rationalized away) views, and demanding what you believe is right - even if what is right seems impossible: this is the role of a citizen. Many of us who believed naively that everything would be fine once Democrats were in charge are now going to have our ability to put our citizenship ahead of our partisanship severely tested.
AfPak, detainees, torture prosecutions, Abu photos, Congressional investigations, mountaintop removal, etc.: there is fault out there to find.
There are many very difficult problems that have been left for our creaky and balky political system to deal with. And like it or not, fair or not, Democrats have been left with the responsibility and duty to try to address these many complex and intractable problems. I believe that, within the constraints of their roles, our representatives in Congress and our President will attempt in good faith to resolve these many problems - and frequently they will get it dead wrong. What to do?
I believe that those of who have the interest and inclination to follow public affairs should react as citizens, not just as partisans. We should not rationalize and defend. We should oppose, and explain why.
I write this defense of citizenship because, obviously, I find myself frequently in disagreement with the decisions taken by the elected representatives of my party, including my President. That doesn't mean I don't support my party, or that I wish others to take power instead; it means that as a citizen, I feel it my duty to explain why I think they are wrong, and not to rationalize away my discomfort at finding myself at odds with my faction.
With this ideal of citizenship foremost on my mind, I once again take up my pen. Some of you might have noticed that I have written infrequently on this blog over the past several months. The reason is that I discovered, in the rudest, most abrupt fashion, that I have a heart condition. I needed all my energy to heal, return to normal life, and adjust to managing the problem. Even now, daily life frequently takes everything I have, leaving nothing for this forum. But I hope that as I recover and gain momentum, I will more frequently be a contributor to this forum, rather than mainly an enthusiastic and grateful reader.
David Safier and Arizona Blue Meanie, along with the occasional contributions of a few others, have exceeded my wildest expectations. They have more than filled in, they have transformed and enriched this blog. My most heart-felt thanks to them. Readership is higher than it has ever been while not in the thick of an election cycle. If fact, I imagine that, to many readers, they are the blog - not I. And that's wonderful.
It is perhaps the most satisfying thing about any endeavor to see it grow beyond you. This blog is no longer just about me; it is a forum that has found purpose beyond merely serving as a conduit for my own opinions. I welcome and embrace that. Of course, my opinion will still appear here, but I hope that so will those of others who are deeply concerned about public policy and have a desire to reach out to Arizona progressive community.
mbryanaz on May 30, 2009 in Activism, Commentary, Congress, Current Affairs, Party Politics, Weblogs | Permalink | Comments (3)