lobbyists

With 2011 a month and a half away, the ethanol industry is pushing full steam ahead for a renewal of the tax credit and tariff provided to support the industry. There seems to be ample opportunity to push this legislation, as it could be attached to either any energy or tax legislation that makes it way through Congress. Rent-seeking lobbyists and politicians are out in full force hoping the river of cash doesn’t run dry:

A group of senators have pressed Harry Reid over concerns that the expansion of ethanol is being constrained by “marketplace limitations.” It also implies that eventually the ethanol industry will be ready to leave the government teat, though we must ensure this isn’t done prematurely and that there is ample time for “broader discussions” on how to address the limitations facing biofuels (hint: they aren’t cost competitive).

The ethanol lobby is also out in full force, attempting to scare politicians over potential job losses. Should they get much attention to their cause, the U.S. will be seeing increased amounts of flex-fuel vehicles and billions of dollars wasted to fund ethanol pipelines and pumps around the country.

Finally, Senator Harkin (D-Iowa) threatened to oppose electric vehicles if his colleagues don’t support biofuel policies. Politics at its best. Let’s hope they can’t come to an agreement and stop the subsidies for both.

Need another reason to oppose ethanol subsidies? We are now subsidizing European drivers because our ethanol producers are receiving tax credits for ethanol exported to the EU.

Image credit: Rascaille Rabbit’s flickr photostream.

Supporters of the health care bill spend a lot of time attacking health insurance companies.

The health care bill, by the way, would legally require people to give a lot of money to those same insurance companies. A lot of money. It would be the largest corporate gift Washington has ever given out — as much as $1.5 trillion over ten years by one estimate.

Health insurers’ loudest detractors are actually their best friends, and they don’t even seem to realize it. Apparently, regulatory capture is not always a conscious process.

I have a piece in National Review Online today outlining the fantasy behind Sen. Lindsey Graham’s latest attempt to keep cap-and-trade alive. Here’s the beginning:

After declaring energy cap-and-trade “dead” in the Senate, the Left’s new favorite Republican, Sen. Lindsey Graham (R., S.C.) has been working hard to resurrect it under another name. Working with Senators Kerry (D., Mass.) and Lieberman (I., Conn.), along with lobbyists for the major electric utilities (and, err, Big Oil), Senator Graham appears to have come up with a new boondoggle that would institute a cap-and-trade scheme for utilities only, thereby creating a carbon cartel. The plan would impose a carbon “fee” on transportation fuels, driving up the price of gas, that would be rebated in the shape of funding for highway projects — which the Big Oil lobbyists appear to believe would help offset the rise in gas prices. All of this, of course, amounts to a new tax on energy, so Senator Graham and his cohorts are cloaking their smash-and-grab raid in the mantle of investment in “green jobs.”

Read the whole thing here.

This fellow from New Zealand appears to think that Climategate proves that the big money is in climate skepticism. How does that work?

Here’s my attempt to follow his argument: The US Government has spent $79 billion in the past two decades on climate science. But Big Oil and Big Coal want a piece of this. They spend heavily on lobbyists to get it. They would be well served by certain provisions in bills and international treaties. [I agree with this so far...] But “the aims of the climate change lobby groups and the large industries they represent dovetail quite nicely with the arguments put forward by the sceptics.” So [he implies] therefore the skeptics have all the money.

Huh?

Global warming skeptics don’t want carbon capture and storage. They don’t want targets for emissions reduction. They don’t want international treaties and thousand page bills that take money out of the productive class and spend it on vastly expensive ways of doing things we know how to do already. Global warming skeptics do not want “a seat at the table.” They don’t think there should be a table in the first place.

Our science blogger friend has confused skeptic with rent-seeker. We skeptics have a grudging respect for our ‘alarmist’ opponents. In most cases they have a sincere belief that there is a serious problem and want to solve it. (Part of the problem revealed by climategate was that many of them, however, want to solve the problem by any means necessary and are insincere in their methods). Rent-seekers, on the other hand, want to exploit such beliefs for personal/corporate gain*, at the expense of the rest of us. Therefore rent-seekers are a bigger problem than alarmists, because they do indeed bring the big bucks. That’s why rent-seeking businesses want carbon capture and storage, which they will be paid handsomely for. They want international treaties and thousand page bills that contains nice incentives for them, their executives and their shareholders. They want the free market distorted to their benefit. The ends they desire, however, are completely different from those desired by the skeptics. Their aims do not dovetail with the ends of the skeptics in the slightest.

That’s why the big money is with those looking to establish a regime for emissions reduction. Now those thieves have certainly fallen out, and there are still some honorable types who want no handouts to big energy companies at all, but the money is certainly on that side of the aisle.

If genuinely skeptical groups have gotten as much as $790 million total worldwide for global warming efforts since 1989 – 1 percent of that devoted to climate science – I’d be extremely surprised. A tenth of that amount is more likely in the right ballpark. You can’t change that by lumping rent-seeking industries in with skeptics. Rent-seekers really do follow the money.

* Rent-seekers are also only too happy to exploit belief in the free market, arguing for free enterprise up until they can see a benefit from government restricting market entry, and so on.

College football is bringing big bucks to K Street as lawmakers take aim at dismantling the Bowl Championship Series,” says a story in Politico.

A six-figure sum is being spent lobbying what really shouldn’t be a government issue. Millions more are being spent on other issues affecting college sports.

There’s even a PlayOff PAC that gives money to politicians who take an active stance on college football playoff reform.

True, the BCS playoff system could definitely use an overhaul. But that’s a job for the NCAA. Not Congress.

On the other hand, legislators do considerably less harm when they spend their time on college football instead of, say, health care or fiscal stimulus.

Until it was publicly-exposed, the Washington Post was selling its access to the White House to lobbyists. As Politico reported, “For $25,000 to $250,000, the Washington Post is offering lobbyists and association executives off-the-record, nonconfrontational access to ‘those powerful few’ — Obama administration officials, members of Congress, and the paper’s own reporters and editors. The astonishing offer is detailed in a flier circulated Wednesday to a health care lobbyist, who provided it to a reporter because the lobbyist said he feels it’s a conflict for the paper to charge for access to, as the flier says, its ‘health care reporting and editorial staff.’ . . .’An evening with the right people can alter the debate,’ says the one-page flier. ‘Underwrite and participate in this intimate and exclusive Washington Post Salon, an off-the-record dinner and discussion at the home of CEO and Publisher Katharine Weymouth. … Bring your organization’s CEO or executive director literally to the table. Interact with key Obama administration and congressional leaders … ‘”

Given its desire to maintain and sell access to the Obama White House, it’s no wonder the Post has been so sympathetic to Obama in its coverage, absolutely refusing even to cover many controversies and scandals in the Obama Administration, such as Obama’s letting racist left-wing thugs escape justice for menacing white voters in Philadelphia, or his firing an inspector general who uncovered misuse of federal funds by an Obama supporter and tried to stop him from accessing federal stimulus money, or his repeal of welfare reform and replacement of investments with welfare in the job-killing $800 billion stimulus package.

It’s scary that the Post would seek to sell access to a health-care lobbyist, given that the Post’s reporting has already shown a dim grasp of basic health-care facts and math, and a bias in favor of the health-care proposals backed by Obama. In “’Public Option’ May Be Highest Hurdle in Senate” (June 24, 2009, pg. A11), the Post misstated the cost of an Obama-backed health care plan by a factor of a thousand, claiming that its “price tag” had been “drastically reduced” down to “$1.2 billion.” In fact, the cost is at least a thousand times higher — $1.2 trillion — and it won’t even cover most uninsured Americans, covering just 16 million of the 40 million uninsured. (The Post’s incorrect figure was corrected days after the fact, after I protested the figure. But virtually no readers saw the correction, which did not appear in the print version of the story).

As I noted in the Washington Examiner on Monday, “much of the media are ‘in the tank for Obama.’ That’s why they failed to report on how his stimulus package repealed welfare-reform, and how it will shrink the economy ‘in the long run,’ according to the Congressional Budget Office. When the Obama Justice Department let thugs get away with menacing white voters in Philadelphia, despite protests from the Civil Rights Commission, the press largely failed to report it. And it failed to cover how his proposed financial rules would increase pressure on banks to make risky, low-income loans. When an Obama adviser concluded that his proposed ‘barrage of tax increases‘ could ‘kill any chance of an early and sustained recovery,’ journalists ignored it. And when Obama broke his pledge of a ‘net spending cut‘ through budget increases and $9.3 trillion in projected deficits, they ignored that, too.” (See “Media Ignore Negative Aspects of Obama Agenda,” Washington Examiner, June 29, 2009, at pg. 18).

Meanwhile, the White House press corps are behaving like puppets. They pretend to the public that White House press conferences are spontaneous, when in fact they are carefully stage-managed events in which Obama decides long in advance of the press conference who will ask him questions, and about what, to avoid difficult and probing questions. (Recently, Obama pre-arranged a question about Iran from the liberal Huffington Post). Even veteran liberal reporter Helen Thomas is appalled by this, noting that even Richard Nixon didn’t try to control the press this way.

The current administration long ago decided to elevate the executive branch of government to a new level of purity by not allowing former lobbyists to hold senior appointed positions. We wouldn’t want anyone who had ever been affiliated with a for-profit company or DC pressure group to be holding the levers of power in Washington, right?

Of course not. Unless, that is, someone decides that the person in question is really a great guy and we should make an exception for him (or her). As it turns out, there are a lot of exceptions in Washington these days. Our old friend Tim Carney elaborates:

Washington lobbyist Christine Varney is poised to take her third pass through the revolving door of lobbying and government with her nomination by President Barack Obama to be his administration’s top antitrust enforcer.

Also, on Thursday, Obama nominated Derek Douglas, a former lobbyist for the O’Melveny & Myers law firm and Center for American Progress, as special assistant on urban affairs.

As with most of the at least 14 former lobbyists nominated or hired by Obama, Varney and Douglas appear to be not covered by his executive order restricting the official activities of former lobbyists.

So apparently it’s not a categorical imperative to keep former lobbyists out of the administration. Which begs the question, why have the rule in the first place?

The appropriations portion of the House stimulus bill is not the only legislation with bad ideas.  The House Energy and Commerce Committee has also marked up their portion of the stimulus package.  During the Committee markup, Chairman Henry Waxman (D-CA) inserted a provision that would “decouple” utility rates from the amount of electricity or natural gas that the utilities sell.  According to the “decoupling” provision, states that accept federal energy efficiency grants from the economic stimulus package will have to ensure that utilities recover the revenue lost when consumers use less energy.

In other words, in states that accept the energy efficiency grants, utilities that use the grants to help consumers lower the energy consumption will be able to raise their rates to compensation for the loss in revenue.  Consumers who participate in the programs may see their energy use go down, but may not see any change in the size of their utility bills.  This is the legislative equivalent of a giant wet kiss to utility and environmental lobbyists but a giant kiss off to consumers.