Remember cap-and-trade? Progressives now speak of it in hushed, glum tones, the way we do of the recently departed. If the bill was already unlikely to be passed in the wake of a difficult 2009 for Democrats, then Scott Brown’s win all but guaranteed that it wouldn’t be so much as a blip on the Dems’ political agenda in 2010.
Yet there are some out there who continue to hold out hope. Some are even Republicans. Here’s Sen. Lindsey Graham (S.C.) speaking at a D.C. event yesterday:
I don’t think you’ll ever have energy independence the way I want it until you start dealing with carbon pollution and pricing carbon. The two are connected in my view—very much connected. The money to be made in solving the carbon pollution problem can only happen when you price carbon in my view.
So if the approach is to try to pass some half-assed energy bill and say that is moving the ball down the road, forget it with me.
Now, Graham has come out against both the House-passed cap-and-trade bill last year and the bill that passed out of the Senate Environment and Public Works Committee. But he, Sen. John Kerry (D-MA), and Sen. Joe Lieberman (I-CT) are trying to cobble together a compromise that results in some sort of carbon-pricing scheme and, no less important, can get 60 votes.
It’s indisputable that a system that prices carbon is better at curbing greenhouse gas emissions and spurring clean energy development than a stand-alone energy bill with the usual cocktail of subsidies to energy companies – something that some in Congress are now actively pushing. As Bradford Plumer has pointed out, “without a cap on carbon, such a bill might even end up increasing emissions – especially if the proposed new transmission lines merely gave coal-fired plants access to new markets, allowing them to boost output.”
Where’s the administration in all this? President Obama’s budget pointedly left out revenue that an emissions-trading program would have brought in. (Last year’s budget, by contrast, included a revenue forecast of $646 billion over several years from a cap-and-trade system.) The administration insists that the omission shouldn’t be read as a signal of where things stand on cap-and-trade — but it’s sure hard not to. Then again, the budget also includes a $43 million increase for the EPA’s implementation of its carbon endangerment finding, certainly a signal that it intends to move ahead with a Supreme Court-mandated regulatory effort to confront the carbon problem in the absence of legislation.
For his part, President Obama in a town hall appearance in New Hampshire earlier this week gave a strong defense of the concept of pricing carbon to drive incentives for clean energy investments. But he also acknowledged that the Senate might separate the subsidies for clean energy in an energy bill from a carbon-pricing mechanism – which realistically means no cap-and-trade at all.
I understand that the president can’t throw around words like “half-assed.” But a stronger push would be nice. Graham called out an energy-bill-only route for what it is and stood firm on the issue of carbon pricing. It seems like there’s an opening there for the president to make the same argument and embolden Congress to do what’s really needed to spur a clean energy economy and curb greenhouse gases: pass a cap-and-trade system.
