Climate bill passes with consumers cut out of the cash flow

The American Clean Energy and Security Act passed the House this evening, minus one of the most attractive aspects of its early drafts: a big money circle in which the government would auction pollution permits to industry and pass along the income–as much as $600 billion–to American taxpayers. In theory, the tax cuts would reimburse consumers when utilities raise rates to cover their cost for the permits.
By the time the bill reached the House floor, that provision had vanished. The utility companies and their friends in Congress eliminated the middle man–you, me, and everyone else in America–and 85 percent of those permits will go directly to the utilities at no cost. In theory, again, this means the utilities won’t have to raise rates–but can we really believe they won’t take advantage of the fog of politics to add a little fat to our bills? They usually find a way, even though one of the biggest utilities, Exelon, estimates it could make as much as $1 billion per year from the law.
Those concessions to industry could worsen in the Senate version, which is expected in September. Democrats hope to have the bill on President Obama’s desk before the end of the year.
Ann Mulkern of Energy & Environment Daily has documented the money passing between the utilities and legislators who cut consumers out. Not only have the energy companies been lobbying:
For the 10 energy interests analyzed, the oil and gas industry led the pack on spending. It shelled out $44.5 million in the first three months of this year, compared with $30.1 million spent in the same quarter in 2008.
For all of last year, oil and gas spent $130 million, at the time a record for the industry. If the pace set by this year’s first quarter continues, it would result in a $178 million lobbying total for the year.
Exxon Mobil Corp. spent the most within that group, paying $9.3 million on lobbying the first quarter of this year. Last year the company spent $29 million, its highest level ever. Oil and gas companies lobby on climate policies but also on tax issues, royalties, offshore drilling and other issues…. Oil and gas companies spending nearly 10 times what environmental groups spent.
via Greenwire (subscription required)
But members of Congress have been investing in energy companies:
Members of Congress with key roles crafting legislation that would transform the United States’ energy portfolio laws own as much as $22.8 million in stocks, bonds and other assets of companies potentially affected by policy changes.
An analysis of personal finance disclosure filings released last week shows that 45 members of seven committees last year owned stakes in utilities, fuel and natural gas businesses, mining, coal, solar, wind, exploration and production companies.
Lawmakers put their private dollars into household names such as Exxon Mobil Corp., BP, ConocoPhillips, Edison International, Duke Energy Corp. and Southern Co.
via E&E (subscription required)
Nonetheless, the House managed one small step for mankind today, one giant leap for America, where not long ago climate-change legislation seemed inconceivable. And by not long ago, I don’t mean 2008. I mean early May, when it seemed Democrats might not be able to line up their horses to pull the bill out of committee. The bill needed 218 votes to pass and finished with an insurance run: 219-212.