Free Markets, Free People

Cap and Trade – The Plan to Raise Gasoline Prices

And apparently force you into those electric cars the government is dumping all that money into.

According to API president Jack Gerard, in a letter he sent to members of Congress, the plan included in Waxman-Markey is pretty darn clear:

The legislation will drive up individual and commercial consumer’s fuel prices because it inequitably distributes free emissions “allowances” to various sectors.  Electricity suppliers are responsible for about 40% of the emissions covered by the bill and receive approximately 44% of the allowances – specifically to protect power consumers from price increases.  However the bill holds refiners responsible for their own emissions plus the emissions from the use of petroleum products.  In total refiners are responsible for 44% of all covered emissions, yet the legislation grants them only 2% of the free allowances.

Upon reading that I assume anyone with the IQ of warm toast can see where that is headed. It is a targeted tax on oil and gas which will be passed on to the consumer in just about every conceivable way possible. Both at the pump and in the cost increases rolled into products we buy due to increased transportation costs, etc.

Electricity, however, whose coal plants are supposedly one of the primary producers of CO2 and very much responsible for the emissions problems we supposedly have get a pass. Does that even begin to hint that this legislation isn’t just about controlling CO2 emissions?

In fact, it shouts it out fairly clearly doesn’t it. Keep the proles happy by ensuring their power to the house is subsidized and stick it to them at the pump where government (who now has a stake in the game) wants consumers buying “green” cars. Don’t you just love it when a plan begins to come together?

Moving on, Gerard’s letter lays out some sobering numbers:

This places a disproportionate burden on all consumers of gasoline, diesel fuel, heating oil, jet fuel, propane and other petroleum products. An analysis of the Congressional Budget Office Report indicates that it could add as much as 77 cents to a gallon of gasoline over the next decade. And, according to the Heritage Foundation this legislation could cause gas prices to jump 74% by 2035. That means, at today’s prices, gasoline would be well over $4 a gallon.

Of course by 2035 we’ll all be riding around in vehicles powered by uincorn methane. And everyone knows that unicorn methane is nontoxic, environmentally friendly, smells good and is eco friendly.

That said, there is the cap and trade plan as it pertains to one vital segment of our economy in all its simple glory. It will force you to pay outrageous prices to use petroleum products in order to move you to the desired, but not yet available, means of conveyance. In the meantime, and until it is available, you’ll just have to suffer with the cost increases.  Also remember that government estimates of cost are notoriously conservative and the real cost of such legislation is likely to be much higher than anticipated.

And don’t laugh too hard when they try to sell that to you by saying they’re attempting to save the planet. They’re exempting coal fired power plants for heaven sake. Trust me, this isn’t about emissions. If it were, they wouldn’t treat natural gas the way they do in the legislation as the letter points out.

After all, they’re the government and they’re there to help.

~McQ

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8 Responses to Cap and Trade – The Plan to Raise Gasoline Prices

  • They can have my red barchetta when they pry it from my cold dead hands…
    2035 – well, I should be able to get rid of a few of the 11 smokers I have in our stable.  And this should at least give the Republicans something to run against, although there will be demonization that R’s want to kill the planet (along with granny, blacks, gays, and women.)

  • Keith: Presumably if they send the gleaming alloy air-cars after you, you can race them across the one-lane bridge and back to your uncle’s farm.

  • “Of course by 2035 we’ll all be riding around in vehicles powered by uincorn methane. And everyone knows that unicorn methane is nontoxic, environmentally friendly, smells good and is eco friendly.”
    You forgot the Skittles!  You forgot the Skittles!  In addition to the methane, they poop out Skittles, too!  Taste the rainbow.

  • EPA caught putting politics and ‘wornout dogmas’ ahead of science.

  • What’s the Army going to do – use electric tanks? And how about the Air Force – I’m dying to see the battery that’ll push a Mach 2 jet!

  • Maybe I’m missing something here, but saying this would give energy companies a pass doesn’t make sense. At least not for the ones that use oil to produce that energy:

    “Electricity suppliers [break even] — specifically to protect power consumers from price increases. However the bill holds refiners responsible for their own emissions plus the emissions from the use of petroleum products.”

    If the refiners of the oil used by the energy suppliers are being hit up, where do they think that money is going to come from? The producers will pass it onto the energy companies who in turn will pass it on to the energy consumers. This makes absolutely no sense if their real intent is to protect “power consumers”.

    • Good point J. But as I pointed out, the coal fired plants – supposedly the worst of the worst when it comes to energy production – do indeed get a pass. And, with the subsidy of 44% of the free permits, they will most likely be able to neutralize the petroleum increases.

  • Warren Buffett dumps on “cap-and-trade” .. go to 12:47 ….. and a lot more