By Ronald Bailey, Reason Magazine

Power Plants will become major source of Government Revenue under Cap and Trade Scheme

Last month, leading Congressional climateer, Rep. Henry Waxman (D-Calif.), chair of the House Energy and Commerce Committee, pushed out a sweeping 1000-page bill that aims to dramatically reshape how Americans will use energy in the 21st century. At the heart of the American Clean Energy and Security (ACES) Act is a cap-and-trade proposal for limiting the emissions of carbon dioxide by American industry and consumers. Carbon dioxide, produced by burning fossil fuels and chopping down forests, is building up in the atmosphere where it is thought be the chief cause of man-made global warming.

The ACES Act would establish an artificial carbon market by setting a limit on the amount of greenhouse gases that can be emitted each year. Beginning in 2012, a national cap—or total maximum CO2 emissions—would be set and then ratcheted downward annually. Under ACES, the U.S. would emit 17 percent less carbon dioxide in 2020 than it did in 2005, eventually falling to 83 percent less than emitted in 2005 by 2050.

Electric and gas utilities, cement plants, steel foundries, and other companies would be required to have one emissions permit for every ton of CO2 discharged from their smoke stacks. Under a cap-and-trade scheme, emissions permits can be allocated and/or auctioned up to the set cap. Once allocated, the market allows companies emitting less than their quota to sell their excess permits to emitters needing to buy extra to meet their cap. This process sets a price on each ton of carbon dioxide.

The central fact of the cap-and-trade proposal is that it will increase the price of energy. If energy prices don’t go up, the goal of getting energy producers, manufacturers, and consumers to shift away from carbon generating fuels (coal, oil, and natural gas) toward low-carbon sources of energy (nuclear, solar, wind, conservation) will not be achieved.

by Charles Krauthammer, Townhall.com

In recent speeches Obama has switched from hope to fear

“A failure to act, and act now, will turn crisis into a catastrophe.” — President Obama, Feb. 4, 2009.

Catastrophe, mind you. So much for the president who in his inaugural address two weeks earlier declared “we have chosen hope over fear.” Until, that is, you need fear to pass a bill.

And so much for the promise to banish the money changers and influence peddlers from the temple. An ostentatious executive order banning lobbyists was immediately followed by the nomination of at least a dozen current or former lobbyists to high position. Followed by a Treasury secretary who allegedly couldn’t understand the payroll tax provisions in his 1040. Followed by Tom Daschle, who had to fall on his sword according to the new Washington rule that no Cabinet can have more than one tax delinquent.

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By Jim Brown, OneNewsNow

New Chevy Volt: The future is here if gov't doesn't mess it up

An energy analyst says President Obama’s executive order allowing states to set their own emissions standards will be economically problematic and force struggling vehicle manufacturers to impose costly changes to please California and other states.

The Obama executive order, signed on Monday, requires the Environmental Protection Agency to reconsider an application by California to set more stringent auto emissions and fuel-efficiency standards than required by federal law. Sixteen other states have adopted California’s rules, which set a fuel economy standard of about 43 miles per gallon by 2016 for cars and trucks weighing less than 3,750 pounds.

Ben Lieberman, The Washington Times

How does $8-a-gallon gas sound? Few Americans would want to see that happen. Unfortunately, President-elect Barack Obama’s choices for the governments two highest energy posts have expressed a surprising level of comfort with sky-high gas prices.

As if that weren’t bad enough, the incoming Obama administration and new Congress have suggested they may reverse the pro-domestic oil drilling measures enacted since last summer. It is starting to look as though the change coming to Washington will bring bad news at the pump in the years ahead.