By: Trevor Loudon
Congressman Henry Waxman
The below article, originally published at Examiner.com, was contributed by Laura Rambeau Lee, Florida.
The American Clean Energy and Security Act of 2009, H.R. 2454, sponsored by Representative Henry A. Waxman, CA, was passed by the House of Representatives on June 26, 2009, with a vote of 219 – 212, and was received by the Senate on July 6, 2009. The Clean Energy Jobs and American Power Act, S.1733, sponsored by Senator John F. Kerry, MA, was introduced on September 30, 2009. The House bill is 1428 pages and the Senate bill is 1758 pages.
This is another bill that has so much regulation attached to it, no one knows what all is included, and no one can say for certain how it will affect states, businesses and individuals. One thing is sure, this bill will put in place strict regulations for carbon emissions at all levels of our lives. According to The Pew Center, “It covers producers of generators of electricity, petroleum fuels, distributors of natural gas, producers of certain fluorinated gases (F-gases), and other specified sources. Greenhouse gases that are limited under the bill include carbon dioxide, methane, nitrous oxide, sulfur hexafluoride, perfluorocarbons, nitrogen fluoride and hydrofluorocarbons emitted as a byproduct.”
What is being presented to us is that these new regulations are intended to mandate that all energy providers and large manufacturing facilities will be limited as to how much carbon dioxide they will be allowed to emit into the atmosphere. This article will relate strictly to carbon dioxide emissions, as this is the majority of the gases being emitted and of our principle concern. The energy companies will be required, on an increasing scale, to reduce their CO2 emissions and retrofit their operations to be “cleaner.” They will be required to offset some of their energy supply with wind, solar, nuclear and other cleaner and greener energy sources.
Many countries in the EU and states here in America have already had such regulations in place and they have failed miserably. What has happened is that, due to the imposition of “caps” on carbon dioxide emissions, and the requirement to retrofit or purchase carbon credits, this has increased the cost of providing energy to the consumer. As the consumers see their energy bills go up they have learned to cut back on their energy use, thereby reducing the income realized by the energy provider. But we need not worry about the profits of our energy providers dwindling, because in the Waxman bill, they have established a method of assuring that the profits of the utility companies do not suffer. It is called “decoupling.” Basically what they do is separate out the cost to provide energy from the profit base of the company. In this report from the Institute for Energy Research entitled Electric Revenue Decoupling Explained, dated February 13, 2009 by Robert J. Michaels, he sets out the rationale for this. If an energy provider stands to lose income by encouraging its customers to conserve, they need some incentive or assurance that their bottom line will not be negatively impacted.
All in all, it is we, the customers, who stand to lose and pay much more for our energy if this legislation is passed. Once again, this is bad policy that only benefits big government through outrageously intrusive legislation and regulation, and the carbon credit exchange brokers, who earn fees with every carbon credit being bought and sold. People such as Al Gore, Bill and Hillary Clinton, several executives with Goldman Sachs, etc, who have large stakes invested in companies such as the Chicago Climate Exchange will be earning tens of billions if not hundreds of billions of dollars with this “scheme.” And, it really does nothing to save the earth!
Below, “The Bears” discuss the dirty secret behind the Clean Energy Act: