Climate Politics

Obama's team shows it's unprepared to defend his cap-and-trade proposal

The president's surrogates are fanning out in the press to defend his budget proposals. To my eye, they're not doing a very good job defending the cap-and-trade system that was laid out in the budget.

Right now, the intellectual leader of the Republican Party, Newt Gingrich, is out bashing the cap-and-trade system as an "energy tax" on everyone who uses electricity or gasoline. This is entirely predictable -- it has been and will be the central attack on carbon pricing.

On The Week, Office of Management and Budget director Peter Orszag was pressed relentlessly by host George Stephanopoulos (the very essence of a Conservative Conventional Wisdom Delivery System [CCWDS]) to admit that the cap-and-trade system is a tax. Orszag kind of rambles around and concludes by saying yeah, it will raise energy costs, but overall, American families will come out ahead under Obama's budget. Which is fine, as far as it goes, though it ends up sound somewhat evasive and doesn't constitute a defense of the program at all.

For one thing, Orszag might try using the words "climate change." More specifically, in the budget Obama specifically tied carbon revenues to a payroll tax that would offset the rise in energy costs for the bottom 60 percent of American income earners. What was the point of doing that if not to have a specific and pointed rejoinder to douchebags like Gingrich? It's not just the overall budget that would benefit most American families, it's the carbon cap-and-trade system itself. (See also Jefferson Morley.)

Similarly, here's chief of staff Rahm Emanuel on Face the Nation (the energy bit comes about seven minutes in):

$80b per year in carbon revenue to go to clean energy, tax payer rebates

President Obama recently announced a plan to cut the federal deficit in half by the end of his first term, in part by raising revenue through the auctioning of carbon permits under a cap-and-trade system. In one sense, there's no new information here. Obama campaigned heavily on cap-and-trade and he's always favored auctioned permits, so the plan is just a restatement of some prior campaign pledges. Right?

Sort of, but this is still a very big deal. The new budget has at least four big implications.

The first is purely political. By including carbon revenue in his budget projections, Obama is not only presenting cap-and-trade as a fait accompli, he's also casting it as a matter of fiscal responsibility. Deficit reduction is the ultimate bipartisan fetish object, and with this announcement Obama has performed an effective flanking maneuver on opponents who are going to try to worry a climate bill to death over economic concerns. Don't get me wrong: the political battle over cap-and-trade will be bruising. But the rhetorical ground on which it will be fought just tilted more heavily in the favor of environmentalists.

Obama budget proposal would cut off funding for Yucca Mountain nuclear waste dump

Here's one bit of news I missed in all the hubbub about Obama's proposed budget: apparently it kills Yucca Mountain dead, once and for all.

Here's what Harry Reid says on the Senate website:

Dear Fellow Nevadan-

Today was an extremely important day in our fight against the proposed nuclear waste dump at Yucca Mountain. In his budget request for 2010, President Obama will announce plans to devise a new strategy to find another solution to deal with the nation's nuclear waste that does not include storing it in Nevada.

As Nevadans know, I have been successfully fighting the proposed Yucca Mountain nuclear waste dump since I began my career in the Senate. I have had tremendous help from our state's leaders and thousands of Nevadans along the way. President Obama joined the fight against the nuclear waste dump in his Presidential campaign, and I am proud that now he will deliver on his promise.

President Obama has made a critical first step towards fulfilling his promise to end the Yucca Mountain project, and I could not be happier for the people of Nevada. Make no mistake: this represents a significant and lasting victory in our battle to protect Nevada from becoming the country's toxic wasteland. I have worked for over two decades with help from our state's leaders and thousands of Nevadans to stop Yucca Mountain. President Obama recognizes that the proposed dump threatens the health and safety of Nevadans and millions of Americans, and his commitment to stop this terrible project could not be more clear.

Thousands protest against coal in front of D.C.’s Capitol Power Plant

No one was arrested, but not for lack of trying. An estimated 2,500 people protested outside Washington, D.C.’s Capitol Power Plant on Monday — the nation’s largest act of civil disobedience against coal power. Anti-coal activists from all corners of the country braved the sub-freezing temperatures and six inches of snow the city received Sunday […]

Snow doesn't dampen turnout for anti-coal rally in D.C.

The day's scorecard:

1) Largest anti-coal action yet in the United States: Thousands and thousands of people flooding the streets around the Capitol Hill power plant.

2) Largest demonstration in many years where everyone was wearing dress clothes: The point was to stress that there's nothing radical about shutting down coal-fired power. In fact, there's everything radical about continuing to pour carbon into the air just to see what happens.

3) Smallest counter-protest in world's history: By my count, the Competitive Enterprise Institute managed to muster four demonstrators for its "celebration of coal" rally, which is about the right size. (But they were kind of sweet; they had signs that said: "Al Gore, Not Evil, Just Wrong.")

4) Number of arrests: None, zip, zilch, nada. The police said so many demonstrators showed up that they had no hope of jailing them all. So we merrily violated the law all afternoon, blocking roads and incommoding sidewalks and other desperate stuff, all without a permit or a say so. We shut down the power plant for the day. And we'd pre-won our main victory anyhow, when Nancy Pelosi and Harry Reid preemptively cried uncle last week and announced they were'nt going to burn coal in their plant any more.

5) Quantity of broad smiles afterwards: Almost unlimited. And in the air, there was the strong sense that we can do this. Really. What fun.

Bill McKibben, a Grist board member, is co-founder of 350.org, and author most recently of Deep Economy.

Photos of climate and coal protests in D.C.

Three rallies hit Capitol Hill on Monday. First, several thousand young attendees of the Power Shift climate conference rallied on the west lawn of the Capitol before heading off to lobby their representatives. Second, more than 2,000 people gathered for a high-profile protest at the Capitol Power Plant, demanding an end to the burning of […]

Why cap-and-trade requires that Bangladesh evict radical Islamists

David Frum is known as one of the more sensible, policy-oriented conservative writers -- he parted ways with the hyper-ideological National Review over non-lockstep comments about the woeful state of the Republican Party. So I came to his posts on cap-and-trade hoping to find some glimmer of ... something. Maybe hope that there is a way to connect with reasonable conservatives, common ground from which to begin a dialog.

First Frum wrote a post that got virtually everything about the policy wrong. Ezra Klein tried to set him straight. Frum responded with ... more misunderstandings. (Ezra tried again.) In particular I want to focus on two bits:

Yes people can escape the tax by using less electricity. But the tax is still falling on them - they are just feeling its effects in a different form, by reducing their consumption. They are still worse off, just worse off in a different way.

Uh ... there's literally no way to use less electricity without being "worse off"? There's no such thing as energy efficiency?

And then:

(Sorry - I know Ezra will say that the point is to persuade the utilities to rely on windmills instead. But that's energy fantasy, not energy policy!)

There's no such thing as renewable energy either!

I was in the midst of grappling with some reasonable way of responding to someone who doesn't believe in energy efficiency or renewable energy when I came across this comment on the post, from reader sinz54:

There is a big difference here: If an American company dumps waste into the Hudson River, they are hurting mostly AMERICANS. So that's a national problem for our fellow citizens. Whereas if an American company dumps carbon dioxide into the atmosphere, it is primarily the undeveloped world that will be hurt by it. Unlike America, nearly all of Bangladesh (population 200 million) will be flooded out when the north polar ice cap melts. So we Americans are essentially restricting our economy, and impoverishing our own people, to keep the undeveloped world safe from global warming. Why are we doing them this multi-trillion-dollar favor without them paying us for it? The world cannot control global warming without U.S. cooperation. We should strike a very hard bargain for that cooperation. For example, I would insist that Bangladesh clean up its act and kick *ALL* radical Islamists out of their country before we do anything to keep their country from being flooded. We've got the political leverage. Let's use it!

I am rarely speechless, but ... I really don't know what to say about this stuff. I don't see how a group of people in this universe are going to make it back to the real world in time to create bipartisan climate policy.

'So am I'

I promised an economy run on clean, renewable energy that will create new American jobs, new American industries, and free us from the dangerous grip of foreign oil. This budget puts us on that path, through a market-based cap on carbon pollution that will make renewable energy the profitable kind of energy; through investments in wind power and solar power; advanced biofuels, clean coal, and more fuel-efficient American cars and American trucks.

...

I realize that passing this budget wont be easy. Because it represents real and dramatic change, it also represents a threat to the status quo in Washington. ... I know that oil and gas companies wont like us ending nearly $30 billion in tax breaks, but that's how we'll help fund a renewable energy economy that will create new jobs and new industries. In other words, I know these steps won't sit well with the special interests and lobbyists who are invested in the old way of doing business, and I know they're gearing up for a fight as we speak. My message to them is this:

So am I.

Don't treat the budget like a bill

There's been some amount of disgruntlement regarding President Barack Obama's proposed carbon cap-and-trade system, as laid out in the budget he just submitted to Congress. David really doesn't like the way the administration proposes to handle proceeds from the auction of emissions permits. Brad Plumer objects both to the "timid" emissions cuts baked into the plan as well as to the low estimate for the price of carbon under the proposed system. Meanwhile, Kevin Drum wonders why the revenue estimates are so low.

But Ezra explains it all to you: "this really seems a case where the administration is on the cutting edge of the political conversation, but the political conversation is lagging far behind the severity of the crisis."

Exactly. And the "political conversation" isn't just between Democrats and the GOP. Or between coastal Green State Dems and Midwestern Brown State Dems. Remember that Obama first had to negotiate the split between climate czar Carol Browner's support for cap-and-trade with economics adviser Larry Summers' and OMB head Peter Orzsag's support for a carbon tax. I'm not surprised that the budget stayed light on details.

What's most important are the set of basic assumptions the administration uses (and "assumption" is the right term since it's effectively Congress that designs the plan): an economy-wide carbon market. Check. Auctioning 100 percent of the permits (instead of giving some away to polluters). Check. Rebates for taxpayers. Check. Funding for renewable energy and efficiency. Check. Capping and then reducing emissions to well below 1990 levels by 2050? Check.

The fact is, it's just not wise for the administration to get too deep in the weeds on this. Ezra Klein has observed regarding health care that "the skeletal health plan outlined in [Obama]'s budget has been built to fit the work Congress is already doing on health care reform." Now I don't think you can say that there is quite the same "congressional consensus" on cap-and-trade that there is on health reform. But at least among House Democrats (and hopefully among Democratic Senators) there is an emerging consensus regarding the elements Obama has included.

Former Washington Gov. Locke would bring a strong voice for oceans to Commerce

If President Barack Obama's third choice for Commerce Secretary sticks, we will have a knowledgeable voice as the secretary who oversees much of the nation's oceans management, including fisheries.

Coming from a coastal state, former Washington Governor Gary Locke should appreciate the importance of our oceans to the people of the United States and the health of our nation's economy.