Kerry's Powerless America Act
Posted 05/12/2010 06:06 PM ET
http://www.investors.com/NewsAndAnalysi ... ?id=533800
Call it cap-and-trade or bait-and-switch, but John Kerry and Joe Lieberman continue to tilt at windmills with a bill to restrain energy growth in the name of saving the planet.
The bill introduced Wednesday and sponsored by the two senators is called the American Power Act, an Orwellian phrase if ever there was one. Like President Obama's offshore drilling program, for every "incentive" there is a restriction. It's as if Hamlet were to be appointed Secretary of Energy.
The legislation has little to do with developing America's vast domestic energy supply. It's cap-and-trade meets pork-barrel spending. It's about regulations, restrictions and research. It does not deal with exploiting America's vast energy reserves but with finding ways to mitigate their alleged harmful effect.
To that end, the bill creates some 60 new agencies and projects to eat up our tax dollars and buy support (see list alongside).
According to a leaked draft summary, there is "$7 billion annually to improve our transportation infrastructure and efficiency" to be paid for by a gas tax that is not called a tax but a "linked fee." There is "$2 billion per year for researching and developing effective carbon capture and sequestration methods and devices." There is even "a new multibillion-dollar revenue stream for agriculture through a domestic offset program." Tilling the soil releases carbon dioxide, don't you know?
Ironically, the draft summary acknowledges the bill will cause energy prices to necessarily skyrocket by promising to "provide assistance to those Americans who may be disproportionately affected by potential increases in energy prices." How about lowering prices and creating jobs by increasing domestic supply?
Somewhere Sen. Lindsey Graham fell off the wagon, disillusioned perhaps by the politics of shifting priorities, and possibly not impressed, as we are not, by the bill's promise to expedite licensing for nuclear reactors "in a way that is guided by sound science and engineering while remaining fully mindful of safety and environmental concerns." That's liberal-speak for study forever, build never.
After coal-mine disasters and oil rig explosions, one would think nuclear power would be celebrated as a non-polluting power source whose casualty rate is zero. According to the Energy Information Administration, electricity from nukes eliminated 26 million tons of carbon dioxide emissions in 2009. Split atoms, baby, split atoms. Enough already with the research.
The proposed legislation mandates reductions in greenhouse gas emissions from fossil fuels via a cap-and-trade system for power plants and, eventually, factories — with strict curbs on the types of trading that could be done. It would require oil companies, for example, to obtain emission permits at a set price not determined by the trading market.
While allegedly providing some incentives to domestic energy development, it would also allow California to implement its draconian energy efficiency standards and other provisions of its signature global warming law, AB 32. "We will not undermine California," Kerry said. Oh, good.
"This bill is a compilation of just about every bad idea that has emerged in the energy debate," said Patrick Creighton, spokesman for the Institute for Energy Research, a free-market think tank. "Two things are certain if this bill becomes law: Energy prices will skyrocket, and jobs will be shipped overseas."
