Cap-and-tax under fire—from the left

We have a center-left grassroots political action organization here in Indiana, focused on state environmental and energy issues, that comes around once a year wanting petition signatures on whatever their latest issue is—so far, it’s always been something beating up on the energy companies and always something to do with coal-fired plants. I was amused to note that this year, they have two big pushes: one against the local utility, and one against the American Clean Energy and Security Act, better known as Waxman-Markey or the cap-and-trade bill. I wouldn’t have expected that second one, but here was this self-labeled hippie solemnly explaining to me that Waxman-Markey is a bad bill because it’s nothing more than a massive bailout for the coal industry; the way he talked about it, you would have expected to find it was a Republican idea.

The sheet he handed me described the bill thusly:

While Americans have been clamoring for a national energy policy that helps their pocketbooks and the environment, Congress has caved to special interests and drafted a bill that is nothing more than a massive giveaway to the utility industry. ACES . . . was railroaded through the U. S. House (by a vote of 219-212) without proper public input. Now in the U. S. Senate, the bill is subject to even more manipulation from coal and utility lobbying.

The claim is that ACES, drafted in large part by Duke Energy, will protect ratepayers, reduce carbon emissions, and help solve global warming. But it is an attempt to maintain business as usual in the electric utility industry.

The reason for ACES is that in the past 2 to 3 years numerous coal plants have been cancelled because lenders would not assume the risk of financing overly expensive and polluting coal-fire power plants that take years to build. . . .

Coal plants are already financially unviable. Now utility companies need ACES to keep their coal plants running and have an excuse to build more.

Not “a” reason, mind you—“the” reason. The folks who put this together seem completely convinced that there is no environmental motivation behind the cap-and-tax bill at all, only the desire to do favors for coal and energy producers. I don’t have a very high opinion of Nancy Pelosi (who hails from that noted coal-producing city of San Francisco) or Harry Reid (I’m sure coal is king in Nevada, too), but even to me, that seems unduly cynical. Still, if what they’re saying about all the loopholes that have been written in for utility companies is correct, that is indeed another good reason to oppose this very bad bill; and if those of us who oppose it from the Right can make common cause with folks on the Left to bring it down, so much the better.

Posted in Economics, Energy, Environment, Politics.

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