Oct 13 2009
Cap and trade imbalance between states has Midwest mad
This is another example of how every [without exception] big government project redistributes wealth and picks the winners and losers, regardless of the sponsors’ alleged altruistic intent.
A new U.S. EPA analysis requested by Sen. Russ Feingold (D-Wis.) is spawning a lobbying frenzy among Midwestern utilities that claim the document shows they will be treated unfairly under federal climate legislation.
“The EPA document just confirms the formula will disadvantage Midwest states for decades to come while the coastal states will hit a ‘federal jackpot’ every year over the life of the new program,” said Zachary Hill, senior manager of federal government affairs at Alliant Energy, a Wisconsin-based utility.
The EPA analysis shows some interesting variations in the burden of carbon compliance, based on the legislative language in Waxman-Markey. How many million tons do each state emit at the moment, and what will they be allowed to emit by 2012? Let’s start with a few notable coastal states:
* California – 87 now, between 99-127 in 2012
* Florida – 138 now, between 111-112 in 2012
* New York – 57 now, between 58-69 in 2012
* Washington – 35 now, between 35-41 in 2012
* Oregon – 20 now, between 20-23 in 2012
* Massachusetts – 24 now, between 23-27 in 2012Alone among these traditional Democratic strongholds is Republican-leaning Florida, which will be asked to make massive cuts of at least 15% or buy excess credits … from places like California, New York, Washington, and so on. What about Midwestern or coal-belt states?
* Minnesota – 56 now, 33-45 in 2012
* Wisconsin – 55 now, 34-44 in 2012
* Michigan – 77 now, 52-62 in 2012
* Iowa – 36 now, 21-29 in 2012
* Indiana – 75 now, 52-61 in 2012
* Ohio – 110 now, 76-89 in 2012
* Pennsylvania – 84 now, 68-72 in 2012
* West Virginia – 23 now, 16-19 in 2012
* Kentucky – 62 now, 44-50 in 2012The EPA predicts that Waxman-Markey will force the interior states to buy excess credits from those states, mainly on the coasts, that will have so many emissions credits that they can sell them to bolster their state governments. Just coincidentally, most of those are states that go Democratic in national elections. California’s example is especially egregious, given the potential for almost 150% of current emissions in credits for 2012. Perhaps it’s also no coincidence that Henry Waxman represents the Golden State in Congress.
Emissions allocations look less like an energy policy and a lot more like Chicago-on-the-Potomac.

