Posted on 09/18/2010 7:24:21 AM PDT by Kaslin
While the prospects for passing a federal cap-and-trade law in the Senate are dwindling, this economically-damaging energy policy is alive and well in the states.
Ten northeastern states are currently implementing a regional cap-and-trade system known as the Regional Greenhouse Gas Initiative (RGGI). Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island and Vermont are mandating that utilities reduce their carbon dioxide emissions 10 percent by 2018.
Examination of the RGGI experience unmasks cap-and-trade as a con game from progressive governors to transfer taxpayer money to bloated state coffers and to special interest groups. Initiated in 2003 when then-Governor George Pataki (R-NY) sent a letter to regional governors calling for states “to develop a strategy that will help the region lead the nation in the effort to fight global climate change,” RGGI became the first program in the nation to use cap-and-trade to reduce greenhouse gases.
Under RGGI, participating states require utilities to purchase a permit or an allowance for each ton of carbon dioxide the power plant emits. Utilities buy carbon dioxide allowances in an auction and the revenue from the sale goes to the state. If a utility’s emissions exceed its allowance, the power plant must purchase additional carbon permits or it can sell its excess allowances. From 2009 to 2014, emissions are capped at 188 million tons annually. In 2015, the amount of allowance available for auction is reduced 2.5 percent for the next four years to meet the 10 percent reduction emission target.
Not surprisingly, the states’ proclaimed intention to use the revenue “to invest proceeds in consumer benefit programs to build a clean energy economy” have gone off-track.
Despite the claims by governors that RGGI combats climate change and spurs investment in renewable energy, this cap-and-trade scheme is an energy tax with the revenue being used to plug budget gaps.
In New Jersey, Governor Chris Christie moved $65 million that the state generated from its carbon dioxide auction to New Jersey’s general fund and New York Governor David Paterson took $90 million from RGGI auctions to help fill a gap in his state’s budget.
Maryland and New Hampshire also have raided the states’ “climate change lock box,” which supposedly holds the emissions revenue for other matters. According to Stateline.org, “New Hampshire lawmakers voted to take all of the state's expected $3.1 million share of the proceeds and use it to help plug a $295 million budget hole,” and Maryland lawmakers agreed “… to divert RGGI money from energy-efficiency programs toward helping low-income residents with their power bills.”
RGGI state revenue has also found its way to special interests groups. Fergus Cullen, a columnist for the New Hampshire Union Leader, discovered that $400,000 of RGGI funds were given to environmental advocacy organization Clean Air Cool Planet and another $148,927 was given to Stonyfield Farm to help the company upgrade its heating and air-conditioning system.
As taxpayer money went to his business, we can interpret literally a commentary written by Stonyfield Farm’s CEO Gary Hirshberg, “Let's Price Carbon Now, For Business' Sake.”
Since it’s an incremental step toward a national cap-and-trade plan, GE CEO Jeff Immelt is also a fan of RGGI. GE needs the federal action against fossil fuels to bail out the company’s investment in renewable energy and carbon dioxide capture technology.
A federal cap-and-trade plan would contribute to the creation of a carbon trading market that could approach $2 trillion in “value” – potentially bigger than the oil and natural gas futures markets. That’s why Wall Street loves the idea of a carbon trading market. Goldman Sachs and JPMorgan Chase, among others, need something to replace the revenue lost from trading mortgage securities. However, RGGI carbon auctions are proving to be risky. The prices for a ton of carbon dioxide fell to $1.86 a ton – the minimum price for an allowance – at this month’s auction. This is down significantly from its high of $3.51 a ton in March 2009.
Trading carbon dioxide allocations is dicey because, unlike other commodities, carbon dioxide does not have any intrinsic value in the marketplace. The value of carbon dioxide is subjected to a range of political and regulatory risk.
The sulfur dioxide trading market that was the model for the carbon market is collapsing because of a change in EPA regulations. Sulfur permits that once traded for $1,600 a ton are now trading for $130 a ton because of new regulations issued by the EPA. Experts believe the sulfur allowances will become worthless.
The RGGI experience to-date exposes cap-and-trade as another scheme to fill state budgets and give companies short-term profits from a government-induced green bubble.
The left’s goal to make fossil fuels more expensive continues despite the failure of RGGI and the likely failure Obama’s legislative push for cap-and-trade. Thirteen Western and Midwestern states have also agreed to RGGI-like regional cap-and-trade schemes.
Tea Party activists need to be on alert. The danger is not just in Washington – the progressive path to cap-and-trade is being driven by incremental steps taken by the states.
...in libtard controlled states, correct? =.=
What’s next? Tulip futures? What a scam.
“The left’s goal to make fossil fuels more expensive continues...”
****
Exactly, and this is why progressives are anything but.
Oooo...This should do wonders for their economies. Businesses will be flocking there, I am sure....morons on parade.
You get it. We must stop this madness. We must end the Employer Based Taxing and Health Insurance Scam.
“What’s next? Tulip futures? What a scam.”
One of my favorite topics in history.
Everyone should read about it. It is a great lesson.
I didn’t even know that Maryland had a Climate Control Lock Box. If we do it isn’t surprising tht it has been raided. O’malley has spent us into debt and wil continue to do so until we elect Ehrlich in November.
Goldman Sachs and the Soros are telling every politician worldwide that once this is done they are going to make a killing trading carbon credits (so called) .
The result: everyone's utilities bills go through the roof
And yes it's all based on discredited pseudoscience. ("AGW")
I wish we could just float those socialist States out to sea.
Cap and trade is the ultimate scam and a radical anti-capitalist idea. Paying producers not to produce will bring misery especially to developed countries. The same leftists who scream about production movements to developing countries want to enact the ultimate scheme to shift production.
The green profiteering from this scheme is unbelievable. This scheme is the ultimate corruption between government (mostly rats and other Marxists), select businesses, and labor cartels. Governments will get large increases in tax revenues (at least initially). Select businesses will have new weapons to exclude competition. Carbon traders will receive a windfall from trading essentially economic bombs. Labor cartels will receive new mandates and increased activity especially in government. A vast new army of regulators will be necessary, all loyal to the carbon trading and regulatory scheme.
The rest of us will be left with debris of the crumbling economy: much higher energy prices, lower employment levels, forced conservation (who needs air conditioning in the summer?), and the inability to stop the madness because the green profiteers will rig elections.
Hi can you repost the link? I could not link to it on Townhall. Thanks.
Buy stock in U-Haul & such.
There will be a mass exodus of business from New England.
“carbon dioxide does not have any intrinsic value in the marketplace.”
Well, you know that, and I know that, but the public has been dumbed down by the hype from the Marxist media and pseudo
scientist, on Goreon’s payroll.
Did Gore not start out by planting a pine tree for every buck that some fool sent to him?
I know all about the USDA pine tree program. I use to buy them for maybe $1 per thousand seedlings, then grew them in one gallon pots to sell to city garden shops for $2 per tree. Took less then a year per tree.
That is how they are selling this scam. The scam itself is based on ways to increase the tax revenue stream from the public without them knowing it.
This is good!
When the people can see the stark comparisons between states; it will be a death nail for the demonic-rats.
Even the Press is having a hard time selling:
“Who you going to believe - Me - or your own lying eyes?”
It reminds me of the definition of a diplomat as a person who can tell someone to go to hell and make him think he will enjoy the trip.
“Yep, it is all a con game. The ruling class must figure out more and more ways to bilk the public out of their money without evoking their anger and resistance.”
Yes, it takes a lot of money to set up a Marxist country, since no one but the government has any money after it is complete.
I hate these liars. Our energy is very clean. It is super clean. These eco-wackos are always pressuring to make emissions cleaner. What these nasty job killing schmucks want to do is kill our coal plants that make electricity. We burn coal very cleanly. The Chinese and Indians don't. They are the ones that have coal smog in their cities where it gets toxic sometimes. This has not happened in the US for 30-40 years
These vile deceitful greenies want to kill coal because it emits a lot of CO2. CO2 is clean but these fearful delusional paranoids dream that it is warming the earth. I am 1000x more green than these ridiculous city dwellers. I have lots of fruit trees and try to go organic as possible. Will be starting a vegetable garden due to high prices
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