Climate bill?

The House today narrowly passed the Climate Bill. This bill is basically an attempt to reduce environmental pollution by putting a cap on hot house gas emissions and taxing anyone who exceeds the limits. Ultimately any costs will be passed on the the American taxpayer although it includes some provisions designed to help lo income consumers.

There is tremendous opposition to this bill and its chances in the Senate are far from certain. The question has to be whether the cost to reduce carbon emissions is less that the cost of buying carbon credits. Effectively, if you can reduce your emissions, you get a cap credit that you can sell. Like everything else some will benefit and some won't. It also raises the question as to whether it will have a net impact of more jobs or less jobs. As constituted it seems to do a number of things that I don't think are beneficial for the economy.

First, it penalizes coal, one of our greatest resources. Now I understand that we would like to reduce hot house gas emissions and coal is potentially the worst offender, but I think the legislation should have been drafted to help reduce reliance on foreign oil to a greater extent. If you really would like a cleaner energy future, the best way to go would be to tax foreign oil and use that money to subsidize conversion of electric plants to natural gas, and using coal to produce synthetic oil. Ultimately we do need to move to renewable energy and the policies should be geared that way, but it is pretty unlikely that wind and solar will ever be at a stage where they do not need a backup generating capacity for, well, cloudy or calm days.

Second, it has a ton of concessions designed to win votes that twist the bill into a bit of a political nightmare. Some of these aren't even fully disclosed right now. All bills like this have compromises but the desire to pass this was so intense and its chances so slim that the concessions reached epic proportions.

It is a sad thing in this country that we can't achieve a meeting of the minds on what seem fairly clear and common issues. The great majority of Americans would like to reduce environmental contamination and would like to reduce reliance on foreign oil. I don't have confidence that this bill does either of those things very well and is therefore flawed from the outset. However, instead of taking the time to craft a bill that accomplishes those two objectives, with a clear additional objective of creating a renewable energy growth industry in this country, politicians tie themselves up a belief that if they don't accomplish something right now, they may never be able to.

When some of our leading environmental groups oppose the bill, you have to believe it has real problems, lets hope it fails and we rethink the approach.