Cap and Trade DID Not Go Away

New Principles to Help Accelerate the Growing Global Momentum for Carbon Pricing

2015:

  • New report shows the number of implemented or planned carbon pricing schemes around the world has almost doubled since 2012, with existing schemes now worth about $50 billion.

 

  • About 40 nations and 23 cities, states or regions are using a carbon price. This represents the equivalent of about 7 billion tons of carbon dioxide, or 12 percent of annual global greenhouse gas emissions.
  • And new report lays out six key principles to put a price on carbon – the FASTER principles – for putting a price on carbon based on economic principles and experience of what is already working around the world

The spotlight is on New York now with the upcoming United Nations meeting on the new Sustainable Development Goals, Climate Week New York, and in about two months, global leaders will meet again in Paris for COP 21.  More from the World Bank.

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California’s Cap-And-Trade Program Is Sick And Will Take High-Speed Rail Down With It

California’s carbon dioxide cap-and-trade auction program was expected to bring in more than $2 billion in the current fiscal year that ends June 30, 2017, a quarter of which is earmarked for the high-speed rail project narrowly approved by voters in a 2008 ballot initiative. As a hedge against uncertainty, a $500 million reserve was built into the cap-and-trade budget. But, with the August auction falling 98.5 percent short, the entire reserve was consumed in the first of four auctions for the fiscal year.

Further complicating matters is a pending lawsuit against the legality of California’s cap-and-trade program. Business groups and fiscal conservatives claim the program amounts to a tax, under a 2010 ballot initiative that better defined what exactly constitutes taxes and fees under California law, thus would requiring a two-thirds majority vote of the legislature.

Further, with the program slated to end in 2020, many businesses that are forced to buy the carbon credits are conflicted by the risk that they may end up buying the California equivalent of Confederate bonds, doomed to be worthless when the state loses its cap-and-trade war.

In the meantime, the High-Speed Rail project, currently promised to cost “only” $68 billion to run from the Bay Area some 400 miles south to Los Angeles may be looking at $50 billion in overruns. To fund the costly train, which was sold to voters as not costing a dime in new taxes, the expected revenue stream from cap-and-trade has been securitized, putting the state on the hook to Wall Street for billions in construction money advanced on the promise of future cap-and-trade revenue.

But the cap-and-trade market is showing dangerous signs of weakness. Not only have auction revenues collapsed in the last two auctions in May and August, but the competitive landscape for the auctions has collapsed as well. The Herfindahl–Hirschman Index (HHI), a commonly-used measure of competitive markets, signaled that last May’s auction was dominated by a sole market player. Last week’s auction improved somewhat, but was still moderately concentrated among a small number of buyers and sellers.

The lack of interest in California’s cap-and-trade carbon credits shows that the Golden State will likely have to come up with a significant amount of General Fund tax revenue, more than $2 billion annually, to build out its government-run rail project—something that isn’t likely to last much beyond the end of Gov. Jerry Brown’s fourth term in office in January 2019.

California's Cap and Trade Auction is Collapsing

California’s Cap and Trade Auction is Collapsing

**** Back in 2014:

In part from Politico: Cap and trade was a key part of the George H.W. Bush administration’s strategy for reducing acid rain in 1990, and it would have been the centerpiece of the climate bill that stalled and died in the Senate in 2010.

Despite the concept’s bipartisan heritage, cap and trade has become politically toxic in some circles — especially among supporters of coal, the carbon-intensive fuel that would face the heaviest costs under any trading system. Republicans derided the climate bill as “cap and tax,” while West Virginia Democrat Joe Manchin famously unloaded a rifle into a copy of the legislation during a Senate campaign commercial.

Still, cap and trade never went away.

With RGGI and California combined, about a quarter of the U.S. population lives in areas covered by trading programs designed to drive down carbon emissions, said Janet Peace, vice president of the Center for Climate and Energy Solutions, at a Senate briefing Thursday.

Other programs exist in Alberta, Canada; Australia; New Zealand; Norway; and South Korea. Next year, cap-and-trade programs are expected to launch in Switzerland, Tokyo, the United Kingdom and South Africa. Others are in development or undergoing pilot tests in Brazil, China, India, Japan, Mexico and even Kazakhstan.

“Eventually, 250 million people will be covered by a carbon price in China,” Peace said. The full article here.

*** The New York Times stays current on Cap and Trade.

 

We are Told to Hate Big Oil, By Whom Exactly?

Emails: Dem Officials Wary of Legal Campaign Against Exxon

Internal communications show unease about New York AG’s court battle

FreeBeacon: Democratic officials who enlisted in a legal campaign against the country’s largest oil company privately expressed misgivings about the effort and its crusading leader, New York Attorney General Eric Schneiderman, internal emails reveal.

Schneiderman recruited nearly 20 other state attorneys general last year to participate in a coordinated legal campaign against ExxonMobil. However, Schneiderman appears to be the only official still actively pursuing the effort.

Emails obtained by the Energy and Environment Legal Institute through open records requests help explain their apparent lack of enthusiasm. The emails show that AGs involved in the effort grew wary of Schneiderman’s aggressive tactics.

His campaign centers on allegations that Exxon lied to shareholders and the general public about the financial dangers posed by climate change. Schneiderman has subpoenaed the company, and other states have followed suit, though many have either withdrawn their probes or put them on hold.

Ahead of a March meeting that kicked off the effort, some AGs were already expressing unease about their involvement.

“Just talked with Tom,” an aide to Iowa AG Tom Miller wrote to a colleague on March 25, a few days before Schneiderman convened AGs involved in the effort. “He thinks we may be locked in on this and have to ride it through.”

Related reading: Trump: Obama Bribed New York’s Attorney General To Sue Trump University
There is no evidence to support Trump’s claim.

After the meeting, another Miller aide described Schneiderman as “the wild card for all.”

In a statement accompanying the release of those and other emails, E&E said they demonstrated the legal weaknesses underlying New York’s legal strategy.

“The investigations began with Schneiderman and in just five short months he has watched his support collapse, such that he once again stands alone in his crusade to harass his political opponents under the guise of upholding the law,” the group said.

As the anti-Exxon efforts progressed, other AGs’ offices expressed concern at their apparent scope. They worried Schneiderman was publicly enlisting them in a campaign in which they were not sure they would—or could—participate.

When his office circulated a draft press release announcing the AGs’ collaboration on the Exxon campaign, Michael Kelly, a spokesman for Virginia Attorney General Mark Herring, tried to rein in some of its language.

“At this point, we don’t know what we’re going to agree to, or really what Virginia’s laws and our authorities could allow us to do, so it makes me nervous to say we’ve ‘agreed to work together on key investigations,’” Kelly wrote in an email to Schneiderman staffers.

“Is there any room to dial that one back a notch?” he asked.

An aide to Vermont’s attorney general had similar concerns. When Schneiderman’s office drafted a “thank you” note to AGs who had participated in the March meeting, the aide recommended striking language that implied that some AGs would be conducting their own Exxon probes.

“On the ‘Exxon/Fossil Fuel Company Investigations’ can we drop the word ‘investigations’ from that?” he asked. “Not all of the states have yet opened a formal investigation and there is some sensitivity here (and I suspect in some other states) to saying or indicating we have.”

In fact, New York is the only state still pursuing an Exxon investigation thanks to the wide legal latitude granted by the state’s Martin Act, which gives Schneiderman broader investigative powers than other state AGs.

“Exxon is not really facing a blitzkrieg,” noted environmental activist Bill McKibben, an outspoken proponent of prosecuting Exxon, in a June column. “Only two states have really had the courage to take on what’s been the planet’s most profitable company.”

The other state McKibben referred to was Massachusetts. However, even Massachusetts’ subpoena of Exxon is on hold.

The U.S. Virgin Islands, which subpoenaed Exxon and the Competitive Enterprise Institute, a think tank that attorney general Claude Walker accused of abetting fraudulent conduct, withdrew both measures in the face of legal opposition.

“They were in over their head,” Vermont Law School professor Pat Parenteau said of Walker’s legal campaign “They were going to get pounded and it’s good they are off the field.”

Schneiderman’s office did not return a request for comment.

Here it Comes, Another Sin Tax, Sodas

Ballot measures are slated for just about everyday and they range from the sublime to the ridiculous…have you paid any attention?

Just in case you need an overview:

Who’s backing 2016 ballot measures?

CPI:  National advocacy groups are gearing up to push state ballot measures in 2016 on topics ranging from the minimum wage to marijuana legalization. Below is a sampling of groups and their plans.

For a sampling some of the work and in sight has already been provided such that you should be on alert by going here.

Soda tax battle brewing at 2016 ballot box

June 8, 2016: Opponents of a proposed sugary drink tax demonstrate outside City Hall in Philadelphia. June 8, 2016: Opponents of a proposed sugary drink tax demonstrate outside City Hall in Philadelphia. (AP)

FNC: Local governments are always thirsty for revenue – and their taste for a soda tax keeps getting stronger, fueling a new battle this fall with America’s beverage industry.

Boosted in part by anti-soda warrior and former New York City Mayor Michael Bloomberg, proponents are trying to get a tax on sugary drinks approved at the ballot box in at least four more municipalities.

The initiatives mark a resurgence of sorts for the soda tax crusade. According to the American Beverage Association, voters have rejected 43 such measures in the past eight years. But in a major win for the movement, the Philadelphia City Council approved a 1.5-cents-per-ounce soda tax this past June.

Now, three California municipalities – San Francisco, Oakland and Albany – are slated to vote on a soda tax of a penny per ounce. Boulder, Colo., could double that, if voters OK a 2-cents-per-ounce tax. The initiatives, which have been approved for the ballot, target both sugary drinks and diet drinks.

Advocates cite health benefits in pushing the proposals. “The goal of taxes on sugar-sweetened beverages is to reduce consumption of sugar-sweetened beverages, which science has proven to be directly correlated to detrimental health impacts such as diabetes, obesity and heart diseases,” San Francisco Board of Supervisors member Malia Cohen told FoxNews.com.

Bloomberg, often ridiculed for his efforts to ban the big gulp in his home city, spent $1.6 million to advocate for the passage of the Philadelphia tax and reportedly will be bankrolling efforts in San Francisco and Oakland as well.

But the American Beverage Association is staunchly opposed. ABA spokeswoman Lauren Kane said the Philadelphia tax is highly unpopular and shouldn’t be a model for any other city.

“This is a regressive tax, it raises the price of groceries and it’s discriminatory because it singles out a single product in the grocery cart,” Kane told FoxNews.com. “Once the government reaches into the grocery cart, everything else is vulnerable.”

The beverage association contends that soda consumption is at a 30-year low, yet obesity has continued to climb in recent years. Further, it notes West Virginia, Arkansas and Tennessee all imposed some soda tax, but rank among the most obese states in the nation.

“There is no single product that is responsible for obesity,” Kane said.

So far, only Berkeley, Calif., has enacted such a tax with voter approval, OK’ing a 1-cent-per-ounce tax in the 2014 election.

If a city the size of San Francisco adopts a tax at the ballot box, it could be a model for others, advocates hope.

“San Francisco has always been a pioneer in landmark legislation and I have no doubt the passage of a sugary beverage tax in San Francisco will encourage other municipalities to seriously consider implementing a similar tax,” said Cohen, who led the effort to have the measure placed on the ballot.

San Francisco would appear the most likely to adopt the measure since 56 percent of voters backed a proposed 2 percent tax increase in 2014. It needed a two-thirds majority to pass because the tax revenue was dedicated for a specific purpose. This year, it’s a proposed 1 percent tax that requires only a simple majority, since the revenue would be going to the general fund. If approved, the tax is projected to bring in $14.4 million annually – money supposedly to be used for health and nutrition programs.

Therein lies another concern. Kane said the revenue would be going into the general budget “with no strings attached” – so voters wouldn’t even know if the revenue would be used “to fight obesity.”

The ABA has a formidable foe in Bloomberg. He telegraphed his plans in a statement issued after the Philadelphia tax victory.

“In November, voters in three California cities will take up the issue, and it may also come before voters in Boulder, Colorado,” Bloomberg said. “When cities lead the way, solutions that were once considered non-starters can quickly catch fire and spread around the world. It would not be the first revolution Philadelphia has sparked.”

The issue even worked its way into presidential politics this year. After eventual Democratic nominee Hillary Clinton said she was “very supportive” of the Philadelphia proposal in April, her opponent Vermont Sen. Bernie Sanders wrote an op-ed for Philadelphia Magazine calling it a “regressive grocery tax that would disproportionately affect low-income and middle-class Americans.”

Cohen objects to the charge of a regressive tax.

“What this assumption ignores is the fact Type 2 Diabetes is a regressive disease,” Cohen told FoxNews.com. “At today’s rate, 50 percent of African American youth vs. 25 percent White youth will contract Type II Diabetes in their lifetime. This is not a coincidence and we must do something today to address this crisis.”

Refugees Have Temporary Status in U.S. but not under DHS

The United States has been taking in refugees, migrants and asylees from Latin America and several dozen countries for decades. This is supposed to be a temporary condition but the truth is it has never been temporary.

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Now with 45 million people from just 2015 displaced from their home countries around the world, there is a crisis that is hard to define much less solve. The United Nations is the lead organization that is under pressure to find solutions and world leaders are not in any kind of collective agreement. Meanwhile, there are people, mostly innocent that are suffering. This is a historical time, one that was in fact not only predictable but solvable if civil war, conflicts and terrorism was addressed long before it manifested.

At issue is the total cost of war where there is no end in sight but more, the cost of creating a viable and living long term solution for migrants to include education, healthcare, law enforcement, jobs, entitlements to list a few. No country is monetarily prepared for the future costs many yet to be known, studied or funded.

Related reading: Bodies found off coast of Libya as migrant toll climbs

The United States had every opportunity in 2011 to launch humanitarian action missions to offset refugee conditions especially as Islamic State was born, and predicted to become a global terror operation directly after Abu Musab al-Zarqawi was killed. He is the original father of Islamic State…al Qaeda in Iraq.

Image result for zarqawi

As a result of the long war in Iraq, Syria and Afghanistan, the complete damage to cities and towns where normal infrastructure has been destroyed, there is no viable location to go back to. There are no schools, hospitals, roads, buildings and commerce has stopped except for black markets and smuggling. Further, no countries are stepping up with funds to help rebuild or as many call it, nation building.

In summary, refugees are in fact a new permanent status for wherever they are located, including the United States.

Consequently, the United Nations is chartered with drafting a global solution with world leaders.

The first cut a the draft is found here.

In part from the NewYorkTimes: Refugees and migrants will be the biggest issue at the gathering of world leaders at the United Nations next month. President Obama plans to lead a meeting at the General Assembly in an effort to nudge countries to take in more refugees and contribute to countries that have taken them in for years.

The United Nations secretary general, Ban Ki-moon, also plans to hold a meeting on the plight of refugees and migrants. The document under negotiation will be the centerpiece of his meeting.

While the draft text has no force of international law, every sentence has been argued and negotiated. The resulting language is sometimes so vague that it is likely to bring little comfort to the millions of men, women and children who are seeking safety and opportunity abroad.

Eritrea, for instance, recently complained that the many references to human rights in the document were “redundant.” (A United Nations committee earlier this year accused Eritrea of atrocities against its own citizens.)

Russia resisted a sentence that called for countries to share in the “burden” of taking in refugees. (Russia takes in very few, except lately, from parts of Ukraine.)

The United States suggested a phrase asserting that detention is “seldom” good for children. Activists for immigrants and refugees found that suggestion so appalling that they fired off a letter on Friday to President Obama. They argued that any international agreement should make clear that detention is “never in the best interests of children” and should commit to ending the practice. (The United States detains children who arrive from Mexico without legal papers.)

Amnesty International said in a statement over the weekend that “with some states trying to dilute the agreement to suit their own political agendas, we may end up with tentative half-measures that merely reinforce the status quo or even weaken existing protection.”

This draft agreement sets out a long list of principles, most already enshrined in existing laws. It says refugees deserve protection and should not be sent back to places where they could face war or persecution. It urges countries to allow refugees to work and to let their children attend school, though it stops short of saying refugees have a right to either jobs or schools.

It asserts that migration can be good for the world, which is wording that migrant-sending countries wanted. It also calls for countries to take back their citizens if they travel illegally and fail to get asylum, which is what migrant-receiving countries, especially in Europe, wanted.

An early draft had proposed a global compact to allocate where refugees could be permanently resettled, but that proposal failed. African and Latin American countries wanted to know why the compact was on refugees alone, according to diplomats involved in the negotiations. Why not also have a compact on the rights of migrants, they asked.

The latest draft sets a 2018 deadline for two compacts — one for refugees, a second for migrants.

The draft text also says nothing about the rights of the 40 million people who are displaced in their own countries, or about those who are leaving their homes because of climate change.

 

 

Also Hacked, Democratic Congressional Campaign Committee

Exclusive: FBI investigates hacking of Democratic congressional group – sources

 

Reuters: The FBI is investigating a cyber intrusion against a major Democratic Party congressional fundraising group, an attack that may be related to an earlier hack against the party apparatus, four people familiar with the matter told Reuters.

The previously unreported incident at the Democratic Congressional Campaign Committee, or DCCC, and its potential ties to Russian hackers are likely to sharpen concern, so far unproven, that Moscow is attempting to meddle in U.S. elections.

Hacking of the party’s emails has clouded this week’s Democratic convention in Philadelphia, where Hillary Clinton was scheduled to accept the party’s presidential nomination on Thursday evening.

The breach at the DCCC may have been intended to gather information about donors, rather than to steal money, the sources said on Thursday.

The DCCC raises money for Democrats running for seats in the U.S. House of Representatives. The intrusion at the group could have begun as recently as June, two of the sources told Reuters.

That was when a bogus website was registered with a name closely resembling that of a main donation site connected to the DCCC. For some time, internet traffic associated with donations that was supposed to go to a company that processes campaign donations instead went to the bogus site, two sources said.

The sources said the Internet Protocol address of the spurious site resembled one used by a Russian government-linked hacking group, one of two such groups suspected in a recently revealed breach of the Democratic National Committee, or DNC, the nationwide strategy-setting and money-raising body for the Democratic Party.

Cyber security experts and U.S. officials said on Monday there was evidence that Russia engineered the DNC hack to release sensitive party emails in order to influence the U.S. presidential election.

The release of the emails by activist group WikiLeaks on the weekend caused discord in the party because they appeared to show favoritism within the DNC for Clinton over U.S. Senator Bernie Sanders of Vermont, who ran a close race for the nomination for the Nov. 8 election.

The DNC, targeted by hackers earlier this year, and the DCCC share the same office space on South Capitol Street in Washington.

The DCCC had no immediate comment on Thursday. Donation processing company ActBlue also had no immediate comment. CrowdStrike, the California-based cyber security firm that investigated the DNC breach, declined to comment.

GREAT CONCERN

Jim Manley, a Democratic strategist who once worked for Senate Minority Leader Harry Reid, said the possibility of the DCCC being hacked was cause for great concern.

“Until proven otherwise, I would suggest that everyone involved with the campaign committee operate under the assumption Russians have access to everything in their computer systems,” Manley said.

The FBI referred questions to a statement it made on Monday on the DNC hack:

“The FBI is investigating a cyber intrusion involving the DNC and are working to determine the nature and scope of the matter. A compromise of this nature is something we take very seriously, and the FBI will continue to investigate and hold accountable those who pose a threat in cyberspace.”

The disclosure of the DCCC breach is likely to further stoke concerns among Democratic Party operatives, many of whom have acknowledged they fear further dumps of hacked files that could harm their candidates. WikiLeaks has said it has more material related to the U.S. election that it intends to release.

DNC Chairwoman Debbie Wasserman Schultz resigned after the leaked emails last weekend showed party leaders favoring Clinton over Sanders. The committee is supposed to be neutral.

Director of National Intelligence James Clapper said on Thursday the U.S. intelligence community was not ready to “make the call on attribution” as to who was responsible for the DNC hack. The White House said earlier the FBI had not disclosed any information about who was behind the hack.

Clapper, speaking at the Aspen Security Forum, acknowledged that “there’s just a few usual suspects out there” who might be responsible for the cyber intrusion, suggesting it was the work of a state actor rather than an independent hacking group.

Clapper said in May he was aware of attempted hacks on campaigns and related groups and he expected to see more as the November election neared. The last two U.S. presidential cycles in 2008 and 2012 witnessed a barrage of cyber attacks from a range of adversaries targeting President Barack Obama’s campaign and the campaigns of his Republican foes, officials have said.

Russian officials have dismissed the allegations of Moscow’s involvement in such hacks. “It is so absurd it borders on total stupidity,” said Kremlin spokesman Dmitry Peskov.

Donald Trump, the Republican Party’s presidential nominee, angered Democrats this week by inviting Russia to unearth tens of thousands of emails from rival Clinton’s tenure as U.S. secretary of state. Trump said on Thursday he was being sarcastic in his remarks.