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Energy Leninism - Is the Democratic Party's energy policy overreach setting up another 1994?
Reason ^ | June 30, 2009 | Ronald Bailey

Posted on 07/01/2009 12:54:55 PM PDT by neverdem

alibri; mso-hansi-theme-font:minor-latin;} "The worse, the better," Vladimir Lenin is said to have observed. What Lenin meant was that the worse social conditions became in Russia, the more likely he and the Bolsheviks could foment a communist revolution. President Barack Obama's White House Chief of Staff Rahm Emanuel recently updated Lenin's maxim, saying, "Never allow a crisis to go to waste."

Last Friday, the Democratic leadership in the House of Representatives took those maxims to heart when they pushed through their 1,200-page American Clean Energy and Security (ACES) Act by a vote 219 to 212. The bill is supposed to address the twin crises of economic recession and climate change by creating millions of new "green" jobs. Instead of an old-fashioned Soviet-style five-year plan, ACES can be thought of as 50-year plan to radically transform how Americans produce and use energy.

The new climate and energy bill would create a convoluted cap-and-trade scheme that aims to curb the emissions of carbon dioxide by American consumers and businesses. Why? Because the extra carbon dioxide emitted into the air from burning fossil fuels like coal and oil to produce energy is heating up the atmosphere. That additional heat will melt glaciers, raise sea levels, change rainfall patterns, cause plants and animals to shift their habitats, and so forth. To avoid these consequences, argue congressional Democrats, it is necessary for Americans to shift from cheap fossil fuels to expensive renewable energy fuels.

So the 1,200-page House bill would set a declining cap on carbon dioxide emissions that, by 2020, reduces them by 17 percent below 2005 levels and by 83 percent below by 2050. Each year the Environmental Protection Agency would issue a lower number of carbon dioxide emissions permits. Under the House bill 85 percent of the permits would be given away for free to various energy producers and users while the remaining 15 percent would be auctioned off. A company must have a permit for each ton of carbon dioxide it emits. The idea is that some companies will be more efficient in reducing their emissions and so will have some permits left over that they can sell to other, less-efficent emitters.

Trading permits in the market will set a price on carbon dioxide emissions. This means that electricity and automobile fuels produced using coal and oil will become more expensive. Higher electricity and gasoline prices are intended to encourage consumers to buy more fuel-efficient automobiles and appliances and to cut back on home heating and cooling. These higher energy prices will also boost what Americans pay for most goods and services. Finally, higher prices are supposed to incentivize inventors and entrepreneurs to develop and deploy lower carbon energy sources like solar and wind power. Sounds simple, but ACES is anything but simple.

The bill is replete with tax breaks, subsidies, and mandates aimed at buying off various special interest groups and industries. For example, it authorizes $60 billion for carbon capture and sequestration projects, $15 billion in subsidies to small and medium sized businesses to finance the cost of clean energy manufacturing products, and $2.5 billion for residential energy efficiency block grant programs to states. The bill also puts $150 million in an Energy Efficiency and Renewable Energy Worker Training Fund, and so on.

The new 50-year energy plan leaves little to chance. Congress has issued a flood of mandates large and small. For example, utilities must purchase 20 percent of their energy from renewable sources by 2020, states and utilities are obliged to build regional infrastructures to support plug-in electric vehicles, new homes have to be 30 percent more energy efficient and—since no detail is too small to escape congressional notice—requires rising energy efficiency standards for outdoor lighting.

Will Americans tolerate such sweeping interventions into their lives and workplaces? Perhaps not. The American Clean Energy and Security Act is even bigger in scope and complexity than President Bill Clinton's 1993 Health Security Act. Clinton's 1,364-page bill would have created over 100 new federal bureaucracies, hundreds of new regulations, and massive changes in the tax code. At the same time, President Clinton in 1993 proposed a tax on the heat content of various fuels, known as the BTU (British Thermal Units) tax. This tax aimed to reduce pollution and encourage conservation. It was estimated that the BTU tax would increase energy costs for the typical household by 4.5 percent or about $105 in 1996. The price of gasoline would have risen by 7.5 cents per gallon. Public and business opposition effectively killed both the health care scheme and the BTU in 1994. Even supporters of ACES, who are eager to low-ball its costs, admit that it will eventually boost gasoline prices by 25 cents per gallon and household energy bills by $175 per year. Other estimates suggest that ACES will force energy prices far higher.

In 2009, a Democratic president and Democratic Congress are once again proposing costly and intrusive changes in both health care and energy supplies. The 1994 mid-term election became a referendum on big government and ushered in Republican control of both the Senate and House of Representatives for the first time since the early 1950s. Given the Republican Party's current disarray, it's unlikely that 2010 will see another "Republican Revolution." However, as the new energy policies slow economic growth and impose vast new costs on consumers, it will be the Republicans who are quietly saying, "The worse, the better."

Ronald Bailey is Reason magazine's science correspondent.


TOPICS: Crime/Corruption; Culture/Society; Editorial; Politics/Elections
KEYWORDS: 1994; aces; communist; energy; energypolicy
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1 posted on 07/01/2009 12:54:55 PM PDT by neverdem
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To: neverdem

Yes!


2 posted on 07/01/2009 12:59:29 PM PDT by Signalman
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Possibly, but I have no confidence that anything will truly change. All that will happen is we will slow down the growth of government on the environmental/tax side. But are things really going to change?

The GOP won’t get rid of Homeland Security or the Dept. of Education or pull the plug on a myriad of disasterous programs. They won’t stop the march of the DOMESTIC terror grid or even the death of the internet.

It is certainly better than Obama, but only marginally compared to what should be done.


3 posted on 07/01/2009 1:03:29 PM PDT by Crimson Elephant
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To: neverdem

"Energy Leninism - Is the Democratic Party's energy policy overreach setting up another 1994?"

Yes. Their global warming puritanism will be their undoing.

4 posted on 07/01/2009 1:05:15 PM PDT by HowlinglyMind-BendingAbsurdity
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To: neverdem

With that nutjob Franken now in, we have no “hope” for “change”...........


5 posted on 07/01/2009 1:05:46 PM PDT by Red Badger (Inquiring minds want to know, but American Idol minds could care less...)
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To: Crimson Elephant
It is certainly better than Obama, but only marginally compared to what should be done.

Agreed but it is what it is and you go to war with the army you have. No?

6 posted on 07/01/2009 1:07:33 PM PDT by rhombus
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To: rhombus

If the RNC can’t fix the primary process we are doomed. It couldn’t be more harmful to the GOP if the DNC wrote the rules.


7 posted on 07/01/2009 1:09:33 PM PDT by Dutch Boy
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To: neverdem
Given the Republican Party's current disarray, it's unlikely that 2010 will see another "Republican Revolution."

Word.

8 posted on 07/01/2009 1:12:11 PM PDT by bill1952 (Power is an illusion created between those with power - and those without)
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To: rhombus

>Agreed but it is what it is and you go to war with the army you have. No?

It is what it is, and they won’t do snot, let alone go to war.
Be very afraid - reality is staring at us with an evil glint in it’s eye.


9 posted on 07/01/2009 1:14:41 PM PDT by bill1952 (Power is an illusion created between those with power - and those without)
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To: Dutch Boy

Yeah... I really hate the whole idea of open primaries. The idea is to try to increase membership but why? If someone wants to vote in a primary they should join the party in advance - not on the day of the primary and then withdraw on the same day. Is that a party rule or a state rule?


10 posted on 07/01/2009 1:15:41 PM PDT by rhombus
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To: bill1952
Be very afraid - reality is staring at us with an evil glint in it’s eye.

Maybe I'm still fooling myself but I stsill have some faith in Americans. I've been listening to quite a few gripes from Democrats about Obama "taking over everything". With continued economic stagflation, high unemployment, $6 a gallon gasoline and few more international crises due to an incoherent foreign policy... maybe that damn sleeping giant will finally wake up again.

11 posted on 07/01/2009 1:20:30 PM PDT by rhombus
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To: rhombus
Maybe I'm still fooling myself but I stsill have some faith in Americans

Maybe...

12 posted on 07/01/2009 1:22:59 PM PDT by bill1952 (Power is an illusion created between those with power - and those without)
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To: wardaddy; Joe Brower; Cannoneer No. 4; Criminal Number 18F; Dan from Michigan; Eaker; Jeff Head; ...
I forgot about that BTU tax that the Clintonistas also proposed in their gun grabbing and healthcare overreaching that led to their 1994 debacle. Gun grabbing appears off the table legislatively, apart from Sotomayor's confirmation, but energy and healthcare are back, and Obama is making a mess in foreign affairs too! Now with Franken about to be seated, the rats have the whole ball of wax!

Sen. Inhofe Calls for Inquiry Into 'Suppressed' Climate Change Report

Obama Toughens Rules for Some Lighting

The ugly face of liberalism Honduras & Iran hypocrisy

GOA Applauds Call to Action on Judge Sotomayor from NRA's Past President

Some noteworthy articles about politics, foreign or military affairs, IMHO, FReepmail me if you want on or off my list.

13 posted on 07/01/2009 1:26:01 PM PDT by neverdem (Xin loi minh oi)
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To: neverdem

(setting up another 1994?)

Not this time, our Republic has been overthrown, it was just so quiet it didn’t even stop the ‘sheep’ from grazing.

Don’t hang your hopes on 2010 elections, by then, a perilous national security emergency will have been declared and the elections will be ‘suspended’.

Oh, don’t worry, it will be just temporary. /s


14 posted on 07/01/2009 1:26:12 PM PDT by RetSignman (DEMSM: "If you tell a big enough lie, frequently enough, it becomes the truth")
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To: neverdem
Is the Democratic Party's energy policy overreach setting up another 1994?

I don't think so, but I think the overreach on health care will. Hillarycare's threat to the health care system was, IMHO, the reason for the 1994 blowback. It's very personal to the voters, in a way abstract economics is not.

15 posted on 07/01/2009 1:27:55 PM PDT by Cyber Liberty (Pretending the Admin Moderator doesn't exist will result in suspension.)
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To: bill1952

Things were very glum when I graduated from college... then we had morning in America.


16 posted on 07/01/2009 1:36:09 PM PDT by rhombus
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To: RetSignman
Not this time, our Republic has been overthrown, it was just so quiet it didn’t even stop the ‘sheep’ from grazing.

You and others of your ilk are way too pessimistic. He's also badly overreaching on immigration too. IMHO, the rats will destroy themselves in 2010.

Immigration Reform [aka Amnesty] Still on Radar

Our Melting President

17 posted on 07/01/2009 1:41:07 PM PDT by neverdem (Xin loi minh oi)
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To: neverdem
It is critically important that we fight this bill BECAUSE it is Leninist - not because of taxes, or energy, or climate, or jobs.

1994 WAS 1994 because the Clintons evinced the intention to regulate every aspect of our private lives and our property from Washington. THe vasy coalition that threw out the Democrats could never have arisen around any issue other than the Blessings of Liberty for ourselves and our Posterity.

18 posted on 07/01/2009 1:43:44 PM PDT by Jim Noble (Pas d'ennmis a droit)
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To: neverdem

No. Not yet. Not enough pain for enough people — YET.

Besides, the asumption here is that we won’t have some kind of “emergency” or “crisis” that will indefinitely “delay” the 2010 election. I make NO such assumptions with this bunch.


19 posted on 07/01/2009 1:51:41 PM PDT by patriot preacher (To be a good American Citizen and a Christian IS NOT a contradiction. (www.mygration.blogspot.com))
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To: neverdem

In 1994 Billious Clintonus did not have ACORN in charge of elections.


20 posted on 07/01/2009 1:55:18 PM PDT by arthurus ("If you don't believe in shooting abortionists, don't shoot an abortionist." -Ann C.)
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