Thursday, June 25, 2009

The Climate Shit Is About To Hit The Fan


President Obama and the Democratic Party Congress are about to embark on a path that will cost much more than the Manhattan Project, World War II, and placing a man on the moon combined. In return, the U.S. will see an enormous increase in the National Debt, a generally lower standard of living, significantly less product choices in the marketplace, higher overall taxes, and an overwhelming increase in government bureaucracy.

All of this based on the fiction that human-caused climate change is 1) happening, 2) caused from production of CO2, and 3) we can trust them; they are from the government.

H. R. 2757

To require the return to the American people of all proceeds raised under any Federal climate change legislation.


June 8, 2009

Mr. KIND (for himself, Mr. REICHERT, Mr. LIPINSKI, and Mr. INGLIS) introduced the following bill; which was referred to the Committee on Ways and Means


To require the return to the American people of all proceeds raised under any Federal climate change legislation.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,


This Act may be cited as the ‘Consumer Assistance Rebate for Energy Act’.


Congress finds the following:

(1) It has been well documented that the Earth’s temperature has steadily increased in recent decades and that human activity has contributed to a large degree to this increase.

(2) Changes in climate will have wide ranging effects on sea level, precipitation, wildfire, agriculture, ecosystem health and viability, wildlife habitat, and more.

(3) Congressional action to reduce national emissions of greenhouse gasses contributing to climate change is necessary and urgent.

(4) Such legislation will have impacts on consumers in the form of high prices for energy, transportation, and consumer goods.

(5) These impacts will fall most heavily on low-income and middle-income families who are least able to absorb price increases.

(6) A national program to reduce greenhouse gas emissions should not impose a tax on the American people in order to fund other priorities.


Any Federal climate change legislation that is signed into law shall return to the American people all proceeds from the sale of allowances or credits, a tax or fee imposed on greenhouse gas emissions, or other means, through reductions in individual taxes, increases in social security or unemployment benefits, and other direct means.
So we have a scheme that works like this:
  1. Raise taxes
  2. Change the cost structure of the economy
  3. Redistribute money according to politically determined qualifications
Need further explanation?
  1. Raise taxes - Cap and Tax
  2. Change the cost structure - require electricity from high-cost, unreliable sources
  3. Redistribute money - give rebates to lower-income groups
Need the summary?
H.R. 2454: American Clean Energy and Security Act of 2009

To create clean energy jobs, achieve energy independence, reduce global warming pollution and transition to a clean energy economy.

American Clean Energy and Security Act of 2009 - Amends the Public Utility Regulatory Policies Act of 1978 (PURPA) to establish a combined efficiency and renewable electricity standard that requires utilities to supply an increasing percentage of their demand from a combination of energy efficiency savings and renewable energy (6% in 2012, 9.5% in 2014, 13% in 2016, 16.5% in 2018, and 20% in 2021-2039). Provides for: (1) issuing, trading, banking, retiring, and verifying renewable electricity credits; and (2) prescribing standards to define and measure electricity savings from energy efficiency and energy conservation measures.

Amends the Clean Air Act (CAA) to require the Administrator of the Environmental Protection Agency (EPA) to: (1) set forth a national strategy to address barriers to the commercial-scale deployment of carbon capture and sequestration; (2) establish an approach to certify and permit geologic sequestration; and (3) promulgate regulations to minimize the risk of escape to the atmosphere of carbon dioxide injected for purposes of geological sequestration. Amends the Safe Drinking Water Act to require the Administrator to promulgate regulations for sequestration wells.

Sets forth: (1) a process to establish a Carbon Storage Research Corporation to collect assessments from distribution utilities of fossil fuel-based electricity delivered directly to consumers; and (2) performance standards for new coal-fired power plants.

Amends PURPA to provide for the development of electric vehicle infrastructure. Requires the Secretary of Energy (Secretary) to establish: (1) a large-scale vehicle electrification program; and (2) a program to provide financial assistance for the manufacture of plug-in electric drive vehicles. Requires the Administrator to establish a program under which a state may create a State Energy and Environment Development Account.

Sets forth provisions concerning the development of a smart grid, including provisions: (1) amending the Energy Policy and Conservation Act to provide for the inclusion of smart grid capability information on appliance energy guide labels; (2) requiring the Federal Energy Regulatory Commission (FERC) to support load-serving entities in developing their peak demand reduction goals; (3) amending the Energy Policy Act of 2005 to reauthorize the energy efficiency public information program and to include smart grid information in it; and (4) reauthorizing the energy efficient and smart appliance rebate program and revising it to include smart-grid features.

Amends the Federal Power Act to require FERC to adopt electricity grid planning principles derived from a federal policy (established by this Act) on electric grid planning that facilitates the deployment of renewable and other zero-carbon energy sources for generating electricity to reduce greenhouse gases (GHGs) while ensuring reliability, reducing congestion, ensuring cyber-security, and providing for cost-effective electricity services.

Amends the Energy Policy and Conservation Act to revise: (1) rules regarding improving energy efficiency in industrial equipment; (2) efficiency standards for electric motors; (3) conservation standards for lighting and appliances; and (4) the Energy Conservation Program for Consumer Products Other Than Automobiles.

Requires the Secretary to establish Clean Energy Innovation Centers to promote commercial deployment of clean, indigenous energy alternatives to fossil fuels, to reduce GHG emissions, and to ensure that the United States maintains a lead in developing and deploying state-of-the-art energy technologies.

Amends the Energy Conservation and Production Act to revise energy conservation standards for new buildings. Requires the Administrator to establish: (1) standards for a national energy and environmental building retrofit policy for residences; and (2) a building energy performance labeling program. Establishes a rebate program to assist low-income households residing in pre-1976 manufactured homes in purchasing new Energy Star qualified manufactured homes.

Requires the Secretary to establish a Best-in-Class Appliances Deployment Program.

Requires the President to use statutory authorities to set motor vehicle emissions standards. Amends the CAA to require the Administrator to promulgate standards applicable to GHG emissions from specified mobile sources, including heavy-duty vehicles and engines, new marine vessels, locomotives, and aircraft. Establishes within EPA a SmartWay Transport Program, a SmartWay Transport Partnership program, and a SmartWay Financing Program.

Requires the Secretary to establish a program to make monetary awards to encourage owners and operators of electric energy generation facilities or thermal energy production facilities using fossil or nuclear fuel to use innovative means of recovering any thermal energy that is a potentially useful byproduct of their processes to: (1) generate additional electric energy; or (2) make sales of thermal energy not used for electric generation, in the form of steam, hot water, chilled water, or desiccant regeneration, or for other commercially valid purposes.

Authorizes the Secretary to make grants to community development organizations to provide financing to businesses and projects that improve energy efficiency, develop alternative, renewable, and distributed energy supplies, provide technical assistance and promote job and business opportunities for low-income residents, and increase energy conservation in low income rural and urban communities.

Safe Climate Act - Amends the CAA to require the Administrator to promulgate regulations to: (1) cap and reduce GHG emissions, annually, so that GHG emissions from capped sources are reduced to 97% of 2005 levels by 2012, 83% by 2020, 58% by 2030, and 17% by 2050; and (2) establish a federal GHG registry.

Designates carbon dioxide, methane, nitrous oxide, sulfur hexafluoride, hydrofluorocarbons (HFCs) from a chemical manufacturing process at an industrial stationary source, perfluorocarbons, and nitrogen trifluoride as GHGs and establishes a carbon dioxide equivalent value for each gas. Prohibits any person from manufacturing, introducing into interstate commerce, or emitting a significant quantity of certain fluorinated gas that is generated as a byproduct during the production or use of another fluorinated gas.

Requires the Administrator to establish specified emission allowances (annual tonnage limits) for: (1) each of 2012-2049; and (2) 2050 and thereafter. Provides for the establishment and distribution of compensatory allowances for the destruction and conversionary use of fluorinated gases and the nonemissive use of petroleum-based or coal-based liquid or gaseous fuel, petroleum coke, natural gas liquid, or natural gas as a feedstock.

Phases in prohibitions against covered entities (including electricity sources, fuel producers and importers, industrial gas producers and importers, geological sequestration sites, industrial stationary sources, industrial fossil fuel-fired combustion devices, natural gas local distribution companies, nitrogen trifluoride sources, algae-based fuels, and fugitive emissions) exceeding allowable emission levels. Requires covered entities to demonstrate compliance through: (1) holding emission allowances (including international emission or compensatory allowances) at least as great as attributable emissions (as specified); or (2) using offset credits. Sets forth penalties for noncompliance.

Provides for trading, banking and borrowing, auctioning, selling, exchanging, transferring, holding, or retiring emission allowances.

Requires the Administrator to: (1) establish a strategic reserve account and place into that account specified amounts (ranging from 1% to 3%) of the emission allowances for each of calendar years 2012-2050; and (2) auction such strategic reserve allowances once each quarter of each of such years.

Requires stationary sources subject to the CAA to have permits that require the covered entity to hold a number of emission allowances at least equal to the total annual amount of carbon dioxide equivalents for its combined emissions and attributable GHG emissions.

Authorizes the Administrator to designate an international climate change program as a qualifying international program for purposes of international emission allowances provisions, if certain conditions are met.

Establishes the Offsets Integrity Advisory Board. Requires the Administrator, considering the Board's recommendations, to promulgate regulations establishing a program for the issuance of offset credits.

Requires the Administrator to promulgate regulations concerning reducing GHG emissions from deforestation in developing countries.

Sets forth provisions governing the disposition of emission allowances, including specifying allocations: (1) for supplemental emissions reductions from reduced deforestation; (2) for the benefit of electricity, natural gas, and/or home heating oil and propane consumers; (3) for auction, with proceeds for the benefit of low income consumers and worker investment; (4) to energy-intensive, trade-exposed industries; (5) for the deployment of carbon capture and sequestration technology; (6) to invest in energy efficiency and renewable energy; (7) to be distributed to Clean Energy Innovation Centers; (8) to invest in the development and deployment of clean vehicles; (9) to domestic refiners; (10) for domestic and international adaptation; (11) for domestic wildlife and natural resource adaptation; and (12) for international clean technology deployment.

Requires the Administrator to auction off certain unused allowances and to deposit the proceeds for 2012-2025 into the Treasury and for 2026-2050 into the Climate Change Dividend Fund. Requires the President to distribute funds in the Consumer Climate Change Rebate Fund (established by this Act) to U.S. households.

Amends the CAA to require the Administrator to promulgate GHG emission performance standards for specified categories of stationary sources that: (1) have uncapped GHG emissions greater than 10,000 tons of carbon dioxide equivalent and are responsible for emitting at least 20% of the uncapped GHG gas emission annually; or (2) are responsible for at least 10% of the uncapped methane emissions.

Requires the Administrator to promulgate regulations to phase down the consumption of and regulate the production of HFCs. Specifies consumption allowances for: (1) each of 2012-2032; and (2) 2033 and thereafter. Provides for: (1) the distribution, auction, banking, exchange, and international transfer of such allowances; and (2) the issuance of offset credits for the destruction of chlorofluorocarbons. Establishes the Stratospheric Ozone and Climate Protection Fund, into which the Administrator shall deposit all proceeds from the sale of such allowances.

Requires the Administrator to promulgate regulations to reduce emissions of black carbon (light absorbing component of carbonaceous aerosols) or propose a finding that existing CAA regulations adequately regulate such emissions.

Prohibits states from implementing a cap and trade program that covers any capped emissions emitted during 2012-2017.

Amends the Federal Power Act to require FERC to promulgate regulations for the establishment, operation, and oversight of markets for regulated allowances. Requires the President to establish an interagency working group on carbon market oversight.

Amends the Commodity Exchange Act to provide for transactions in derivatives that involve energy commodities. Gives the Commodity Futures Trading Commission (CFTC) jurisdiction over the establishment, operations, and oversight of markets for regulated allowance derivatives.

Amends the CAA to require the Administrator to: (1) distribute emission allowance rebates to eligible industrial sectors (with eligibility based on specified energy, GHG, or trade intensity criteria); and (2) provide for the sale of and require submission of international reserve allowances by U.S. importers of products of industrial sectors that the President determines have suffered certain negative impacts from compliance with GHG emission requirements.

Sets forth provisions concerning green jobs and worker transition, including: (1) authorizing the Secretary of Education to award grants to eligible partnerships to develop programs of study focused on emerging careers and jobs in renewable energy, energy efficiency, and climate change mitigation; and (2) providing climate change adjustment assistance to adversely affected workers.

Amends the Internal Revenue Code to allow certain low income taxpayers a refundable energy tax credit to compensate such taxpayers for reductions in their purchasing power, as identified and calculated by the Environmental Protection Agency (EPA), resulting from regulation of GHGs.

Requires: (1) the Administrator to implement the Energy Refund Program to give low-income households a monthly cash energy refund equal to the estimated loss in purchasing power resulting from this Act; (2) the Secretary of State to oversee distributions of allowances from the International Clean Technology Account; (3) the President to establish within the United States Global Change Research Program a National Climate Change Adaptation Program; (4) the Secretary of Commerce to establish within the National Oceanic and Atmospheric Administration (NOAA) a National Climate Service; (5) the Secretary of Health and Human Services (HHS) to publish a strategic action plan to assist health professionals in preparing for and responding to the impacts of climate change; (6) the President to develop a Natural Resources Climate Change Adaptation Strategy; and (7) the Secretary of State to establish an International Climate Change Adaptation Program.
Next month: The Santa Claus Preservation Act


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CO2 Cap and Trade

There is always an easy solution to every human problem—neat, plausible, and wrong.
Henry Louis Mencken (1880–1956)
“The Divine Afflatus,” A Mencken Chrestomathy, chapter 25, p. 443 (1949)
... and one could add "not all human problems really are."
It was beautiful and simple, as truly great swindles are.
- O. Henry
... The Government is on course for an embarrassing showdown with the European Union, business groups and environmental charities after refusing to guarantee that billions of pounds of revenue it stands to earn from carbon-permit trading will be spent on combating climate change.
The Independent (UK)

Tracking Interest Rates

Tracking Interest Rates


SEARCH BLOG: FEDERAL RESERVE for full versions... or use the Blog Archive pulldown menu.

February 3, 2006
Go back to 1999-2000 and see what the Fed did. They are following the same pattern for 2005-06. If it ain't broke, the Fed will fix it... and good!
August 29, 2006 The Federal Reserve always acts on old information... and is the only cause of U.S. recessions.
December 5, 2006 Last spring I wrote about what I saw to be a sharp downturn in the economy in the "rustbelt" states, particularly Michigan.
March 28, 2007
The Federal Reserve sees no need to cut interest rates in the light of adverse recent economic data, Ben Bernanke said on Wednesday.
The Fed chairman said ”to date, the incoming data have supported the view that the current stance of policy is likely to foster sustainable economic growth and a gradual ebbing in core inflation”.

July 21, 2007 My guess is that if there is an interest rate change, a cut is more likely than an increase. The key variables to be watching at this point are real estate prices and the inventory of unsold homes.
August 11, 2007 I suspect that within 6 months the Federal Reserve will be forced to lower interest rates before housing becomes a black hole.
September 11, 2007 It only means that the overall process has flaws guaranteeing it will be slow in responding to changes in the economy... and tend to over-react as a result.
September 18, 2007 I think a 4% rate is really what is needed to turn the economy back on the right course. The rate may not get there, but more cuts will be needed with employment rates down and foreclosure rates up.
October 25, 2007 How long will it be before I will be able to write: "The Federal Reserve lowered its lending rate to 4% in response to the collapse of the U.S. housing market and massive numbers of foreclosures that threaten the banking and mortgage sectors."
"Should the elevated turbulence persist, it would increase the possibility of further tightening in financial conditions for households and businesses," he said.

"Uncertainties about the economic outlook are unusually high right now," he said. "These uncertainties require flexible and pragmatic policymaking -- nimble is the adjective I used a few weeks ago."

December 11, 2007 Somehow the Fed misses the obvious.
[Image from:]
December 13, 2007 [from The Christian Science Monitor]
"The odds of a recession are now above 50 percent," says Mark Zandi, chief economist at Moody's "We are right on the edge of a recession in part because of the Fed's reluctance to reduce interest rates more aggressively." [see my comments of September 11]
January 7, 2008 The real problem now is that consumers can't rescue the economy and manufacturing, which is already weakening, will continue to weaken. We've gutted the forces that could avoid a downturn. The question is not whether there will be a recession, but can it be dampened sufficiently so that it is very short.
January 11, 2008 This is death by a thousand cuts.
January 13, 2008 [N.Y. Times]
“The question is not whether we will have a recession, but how deep and prolonged it will be,” said David Rosenberg, the chief North American economist at Merrill Lynch. “Even if the Fed’s moves are going to work, it will not show up until the later part of 2008 or 2009.
January 17, 2008 A few days ago, Anna Schwartz, nonagenarian economist, implicated the Federal Reserve as the cause of the present lending crisis [from the Telegraph - UK]:
The high priestess of US monetarism - a revered figure at the Fed - says the central bank is itself the chief cause of the credit bubble, and now seems stunned as the consequences of its own actions engulf the financial system. "The new group at the Fed is not equal to the problem that faces it," she says, daring to utter a thought that fellow critics mostly utter sotto voce.
January 22, 2008 The cut has become infected and a limb is in danger. Ben Bernanke is panicking and the Fed has its emergency triage team cutting rates... this time by 3/4%. ...

What should the Federal Reserve do now? Step back... and don't be so anxious to raise rates at the first sign of economic improvement.
Individuals and businesses need stability in their financial cost structures so that they can plan effectively and keep their ships afloat. Wildly fluctuating rates... regardless of what the absolute levels are... create problems. Either too much spending or too much fear. It's just not that difficult to comprehend. Why has it been so difficult for the Fed?

About Me

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Michigan, United States
Air Force (SAC) captain 1968-72. Retired after 35 years of business and logistical planning, including running a small business. Two sons with advanced degrees; one with a business and pre-law degree. Beautiful wife who has put up with me for 4 decades. Education: B.A. (Sociology major; minors in philosopy, English literature, and German) M.S. Operations Management (like a mixture of an MBA with logistical planning)