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  • Harry Reid's "Smaller" Energy Bill Would Come with Big Costs


    Senator’s John Kerry (D-MA) and Joe Lieberman (I-CT) are set to release the Senate version of a cap and trade bill tomorrow that will call for a 17 percent cut in emissions below 2005 levels by 2020. But if cap and trade cannot garner enough support, Senator Harry Reid (D-NV) is prepared with a backup plan. Over the weekend Senator Reid told Spanish television network Univision, “I can do one this big because I have a couple of Republicans who would help me on that. But the big bill that we need to do, they are not helping us on that, but I can do a smaller energy bill.” The Hill reports that this could include a number of provisions, above all, a renewable electricity standard. This may be small in Senator Reid’s eyes, but the cost to American families and American businesses will be enormous according to a new study from The Heritage Foundation.

    A renewable electricity standard (RES) mandates that a growing percentage of electricity would have to be produced by approved renewable energy sources, which means it will force costlier energy on the American people and consequently weaken the economy. After all, there’s a reason why wind and solar energy only supply a small fraction of America’s electricity demands: it’s too expensive to compete with more reliable sources. According to the Heritage study, “A Renewable Electricity Standard: What It Will Really Cost Americans,” household electricity prices will jump 36 percent by 2035.

    For American businesses, the news is worse. Because the cost of generation is a bigger fraction of the industrial electricity price than of the residential electricity prices, the RES causes a bigger percentage increase in industrial electricity prices than in residential electricity prices. As electricity prices increase, the cost of producing goods for businesses increases and consumer demand falls for two reasons; price hikes on goods reduce demand and people have less disposable income because it is spent on their electricity bills. Higher energy prices force businesses to make production cuts and reduce labor. By 2017, employment falls 1,000,000 jobs below the baseline (if there were no RES in place) and at times employment is more than 1.2 million jobs below the baseline. It’s worth noting that these job losses occur after any green job creation.

    As a result, the overall economy shrinks. The annual losses in economic activity (gross domestic product) reach $197 billion by 2020, $300 billion by 2030, and more than $325 billion by 2035. Summing up the impacts for 2012 to 2035 yields a total GDP loss of $5.2 trillion. That’s quite a hefty price tag for a “smaller” energy bill.

    Proponents of carbon capping legislation may feel they are conceding by “settling” for an RES. Opponents may believe they’ve won if cap and trade does not become law. But there are no winners here. Just like cap and trade, an RES won’t have an impact on the earth’s temperature. And just like cap and trade, the economic costs will be devastating. Heritage analysis of cap-and-trade bills that impose economy-wide reductions in CO2 emissions shows overall losses to the economy of $5 trillion to nearly $10 trillion between 2012 and 2035. Though renewable energy standards apply only to the power sector (electricity generation), they provide less flexibility in meeting the goals than does cap-and-trade and can lead to losses of the same order of magnitude as the more comprehensive cap-and-trade regulations. Though the source of wind and solar energy is free, power delivered from these sources is very expensive.

    Posted in Energy [slideshow_deploy]

    15 Responses to Harry Reid's "Smaller" Energy Bill Would Come with Big Costs

    1. Billie says:

      harry reid is driven to WASTE…no pun intended. All levels of government are running the same.

      The GOVERNMENT disconnect of efficiency and direct connection of the removal of rights, liberties and freedoms is connected to THE FUTURE WORLD GOVERNMENT. Most world leaders are right on board. Especially when mr. money bags has the stolen money to dispense to his favorites! As a reminder GOVERNMENT HAS NO CONCERN FOR MONEY BUT TO WASTE, AS THEY ARE NOT THE ONES WHO GENERATE IT. In this country of leaders, they're so shameful and disgraces, no one's held accountable!.

      The only way to do this is convincing the American people that "government can spend the peoples money better then the people?" Compliments of government leader, Larry Pogemiller from Mn.

    2. Don,Bisbee, Az says:

      Harry Reid is a LIAR and a shill for Al Gore, after the Health Care debacle, how can we trust this man? I live on a fixed income and have already seen my electric bill jump $15 so far this year, with the same usage.VOTE HIM OUT!!!

    3. hank leatherman tiog says:

      Why is Nobody covering the conn. social security number that obama uses?

    4. Don Harper, Lubbock, says:

      It’s not about renewable energy or global climate change. It’s not about providing healthcare to those without insurance. It’s not about solving our immigration system (which is not broken; it merely needs to be enforced). It is always, and in every thing, about power. The Dems want to rule, not govern. Vote them out!

    5. Tom Berquist, Pennsy says:

      Do these people have any idea what is coming there way in five months. They should have some idea from Mass, NJ, VA, Utah and now WVA. They have NEVER SEEN ANYTHING LIKE WHAT IS COMING IN NOVEMBER. Republicans better stay away from ANYTHING being pushed by democrats between now and January next year. We have had it with the Progressives and they are about to feel the might of the American people. They have finally woke the sleeping giant.

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    7. Geneo, Nebraska says:

      Congress, especially liberals, believes they must pass legislation for any good result to come about. They demonstrate their hubris daily. Here's an idea to help alleviate their collective narcissism: Stop passing more laws; make it a goal to revoke laws (take a page from the global warmists — set a goal: 2%, 10%, 20% reduction from the 1990 baseline of legislation); and then, use your public position to advocate private activity thought to improve matters.

      We don't need Congress to "solve problems" through mandates and diminution of liberty. We need Congress to ensure that private parties may attempt to address whatever problems they perceive under the protection of our Constitution and the rule of law.

    8. Ben C. Ann Arbor, MI says:

      Well intentioned legislation by the ill advised and uninformed with ulterior motives leads to unintended consequences. Pure and simple.

    9. Ben C. Ann Arbor, MI says:

      Well intentioned legislation by the ill advised and uninformed with ulterior motives leads to unintended negative consequences. Pure and simple.

    10. David VanNorman Wind says:

      We know we have to defeat this whole bunch. They are running this country in the ground .Don't they know they must live here too. When the people they have double crossed wake up they will drag them threw the streets by their heals.

    11. B.Dalton, Colorado says:

      Geneo and Ben C, you guys are so smart! Good on you!

    12. Lynn Bryant DeSpain says:

      I do not know about the other States, but here in Oregon, we paid China to build everyone of our Wind Turbines. When our Congress people were asked, "Why?", the asnwer was, "Because it is cheaper." All we have is the installation and maintainance. The parts are still coming from China.

      Oregon's adjusted unemployment is over 20%. We have an Illegal aliens population of over 40% of the State's total.

      If the Turbines were to be built here, the jobs created through that industry would have lowered our unemployed rate considerably. Our Social Services would be less strained.

      When one watches the Wind Turbines in action olong the Columbia Gorge on a windy day, half are turning.

      Our Federal Government and our State Government now wants our Hydro-Electric Dams along the Colubia River removed. These dams generate electricity for the Western Quarter of the United States, but they are not included in the Cap and Trade 'Carbon Tax'.

      Once removed, our farmers have no access to irrigation in our high dessert areas. The cities along the river will have no water as the silt will plug the Aqua Flow and the wells will not work. The fish will not be able to survive during times of mild Winters.

      But hey, we need those taxes right? God, please give us Congressmen with Common Sense!

    13. Denise , Utah says:

      Follow the MONEY!!

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    15. Billie says:

      Lynn, you write: …here in Oregon, we paid China to build every one of our Wind Turbines. When our Congress people were asked, “Why?”, the answer was, “Because it is cheaper.”

      and isn't it ironic the people of this country are brainwashed to hate capitalists or big businesses that move over seas for cheaper labor?…when people aren't informed of the initial reasons, or refuse acknowledgment to the government increased: mandates, rules, regulations, taxes, their resentment of capitalism grows. I think people are catching on.

      Obama did promise jobs, he didn't necessarily say, American.

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