Bob McDonnell Makes Dominion Power Look Like Green Miles

The Waxman/Markey American Clean Energy and Security Act of 2009 (H.R. 2454) is a climate change and energy bill currently making its way through the House of Representatives. Essentially, the bill is a "cap and trade" plan which aims to reduce U.S. greenhouse gas emissions 17% from 2005 levels by 2020 and 80% by 2050. The bill includes a renewable electricity standard that would require large power producers to produce 20% of their electricity from renewable sources (e.g., wind, solar, geothermal) by 2020. In addition, the bill provides for modernization of the U.S. power grid; expanded production of electric vehicles; and significantly increased energy efficiency standards for buildings, appliances and power generation.

Who supports this bill? One group is the United States Climate Action Partnership, a broad coalition including environmental groups (World Resources Institute, Pew Center on Global Climate Change, Environmental Defense Fund, the Nature Conservancy), energy companies (Shell, ConocoPhillips, BP America, Duke Energy, FPL Group), and corporations (Alcoa, Caterpillar, Chrysler, Dow Chemical, Ford, GE, GM) that has "come together to call on the federal government to enact legislation requiring significant reductions of greenhouse gas emissions." The consortium is "committed to a pathway that will slow, stop, and reverse the growth of U.S. emissions while expanding the U.S. economy." On that latter point, USCAP believes that "the climate change challenge will create more economic opportunities than risks for the U.S. economy."

Who else supports this bill? According to the Wall Street Journal (6/17/09), one major player is "Edison Electric Institute President Thomas Kuhn, who represents the nation's largest shareholder-owned utilities, said after a meeting with Messrs. Waxman and Peterson Tuesday that his group is happy with the current version of the measure."

One member of the Edison Electric Institute is our old favorite, Dominion Virginia Power. You'd think that Dominion, aka "Global Warming Starts Here," would be against the Waxman/Markey bill. But wait, think again. Here's what Dominion CEO Thomas Farrell had to say on June 9 about the American Clean Energy and Security Act, speaking on behalf of the Edison Electric Institute before the House Energy and Commerce Committee.

EEI has endorsed climate change principles intended to help ensure that U.S. climate policy is successful in reducing greenhouse gas (GHG) emissions while also addressing the cost implications to consumers. This framework calls for an 80-percent reduction in GHG emissions from current levels by 2050, together with a series of actions to mitigate impacts to electricity customers and the economy.

[...]

We are pleased that H.R. 2454 provides direct allowances to the electricity sector in the early years of the program. This feature of the bill is critical to protecting consumers until new technologies are available to enable the continued use of our domestic coal resources, and until such time as new low-carbon infrastructure can be built.

[...]

We believe the allowance allocation approach in this bill will minimize the economic impact on electricity customers nationwide during the early years of a federal GHG cap-and-trade program. It also will help ensure that utilities continue to provide reliable, reasonably priced electric service that supports economic growth, job creation and strong communities.

We look forward to continuing our work with the Committee to help ensure that U.S. climate policy is successful in reducing GHG emissions while also addressing the cost implications to consumers.

That's pretty clear, but if there's any doubt remaining, check out Farrell's Richmond Times-Dispatch editorial on this subject:

The bill being considered by the Waxman committee lays the framework for what could be our nation's most far-reaching environmental legislation.

It leverages a proven cap-and-trade approach, supported by many in business and the environmental community, with a framework designed to reduce greenhouse gas emissions at the lowest possible cost.

It calls for the federal government to set a tough national limit on greenhouse gas pollution that will gradually ratchet down over time.

Most important to Virginians and U.S. consumers, it is designed to avoid dramatic price spikes in coal, oil, natural gas, gasoline, and other carbon-based fuels that have been the foundation of our economy for more than a century.

In short, Dominion Power is behind the Waxman/Markey cap-and-trade bill, albeit with too-generous allowances to the power sector from my perspective. As an environmentalist and an economist, I'd prefer to see a revenue-neutral carbon tax, or a cap-and-trade bill that auctions off all emissions permits. However, I'm also a realist and a pragmatist, and I don't want the perfect to be the enemy of the possible. Dominion's position is far from perfect, but its much better than expected.

So, with Dominion Power behind the Waxman/Markey bill, you'd think that pretty much every Virginia politician, Republican and Democratic alike, would also be supportive. Given that Dominion is one of the largest employers in the Commonwealth, and also spends a huge amount of money on lobbying and political contributions, you certainly wouldn't think that someone like Bob McDonnell - recipient of nearly $200,000 from Dominion since 1996 - would oppose a bill that Dominion supports. Especially since dealing with climate change is absolutely necessary, according to all the science on the matter. Well, think again. Here's Bob McDonnell on the "cap and trade" bill (in response to a demand by Newt Gingrich that he oppose it).

Passage of the Waxman-Markey Cap and Trade Bill would increase taxes and unemployment in Virginia. It would hurt Virginia's competitiveness in the world economy, raise our electricity rates and have a direct impact on every Virginia citizen. It's a job-killer.

That's right, Bob McDonnell is actually more anti-environmental and extreme on this issue - by far - than Dominion Power. Not only that, but McDonnell's belief that this is a "lethal job killer" is completely contradicted by Dominion's top executive, who says that the bill "is designed to avoid dramatic price spikes in coal, oil, natural gas, gasoline, and other carbon-based fuels." McDonnell is also contradicted by the Edison Electric Institute, of which Dominion is a member, which says that this bill would "minimize the economic impact on electricity customers."

The bottom line here: Bob McDonnell is such a rigid, anti-environment, anti-science, know-nothing ideologue that he won't even support a compromise cap-and-trade bill that Dominion Power - the largest employer in the Commonwealth - and just about the entire U.S. power sector has gotten behind. To put it another way, Bob McDonnell makes Dominion Power look like the Green Miles. :)

Of course, I suppose we shouldn't be too surprised at McDonnell, given that he takes his energy advice from someone like this. What century does Bob McDonnell live in, anyway, the 18th or the 21st? It's hard to tell sometimes.