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Stunner: California’s cap-and-trade on track to deliver 14% of promised revenue in first auction
Hot Air ^ | December 11, 2012 | Ed Morrissey

Posted on 12/11/2012 5:17:26 PM PST by Ernest_at_the_Beach

Just think — if Democrats win the midterm elections in 2014, we could see this kind of success on a national scale!  California has struggled with massive budget deficits for years, but the political class in Sacramento stumbled on the perfect solution to falling revenues and rising costs … soaking the business world to seize more capital for further spending.  The state held its first auction of cap-and-trade credits, and projected that businesses would spend a billion dollars in buying, er, vapor.  Those projections were just a teensy bit optimistic, as Bloomberg’s Steven Greenhut explains:

In late November, the California Air Resources Board held its first of these auctions, in which businesses such as oil refineries and utilities bid for credits that allow them to emit greenhouse gases. They must cut back their production or buy enough credits to cover all their emissions. Statewide emission caps will drop each year as California pushes businesses to produce fewer greenhouse gases or pay more to buy the declining number of credits for auction in this newly created government “marketplace.”

That is the plan anyway. “First cap-and-trade auction a bust for California budget,” read the headline in the Sacramento Bee. Budget planners expected that the state would receive $1 billion from the sale of credits, but the 2013 credits went for a low price and there was little demand for 2015 credits. As the Bee story explained, “The nonpartisan Legislative Analyst’s Office estimates that if trends hold in the February and May auctions, the state may only raise about $140 million in the first year.”

So they’re on track to miss their target by only 86%.  Some people might consider that a failure, but in California, that $140 million will fund eleventy-billion dollars in new spending.  Winning!

As if to prove my point, Governor Jerry Brown wanted the proceeds to fund the high-speed rail project that California has begun, which will transport people from Bakersfield to somewhere near Fresno, two places people love to leave but don’t want to arrive.  Even at the rate of income projected by the geniuses in Sacramento, it would take 100 years of cap-and-trade sales to fund that project without taking interest payments into account.  At the rate of actual sales, it would take 714.28 years.

Of course, there might not be many people to move between Fresno and Bakersfield by that time:

While they count on money from the auctions, California officials have imposed new costs on businesses, raised utility rates and put the state’s industrial products at a competitive disadvantage so that it can set an example for the world on how to reduce global temperatures. Democratic officials argue that the new green-energy model will energize the state’s business climate, but even the Air Resources Board admits that the state will suffer from what it terms jobs “leakage.”

The “leakage” might be a “floodage,” according to Dave Roberts, who reports for the website CalWatchdog. A study sponsored by pro-business groups estimates that the state will have 262,000 fewer jobs in 2020 because of the climate-change law. Roberts also cited a Boston Consulting Group finding that as many as 51,000 jobs might be lost due to refinery closings alone. California farmers and food processors are concerned that the rising state-mandated production costs will cause job losses as low-cost Chinese and Mexican processed-food imports take some of their business.

Leakage.  Job destruction is more like it.  Seizing capital from businesses in order to fund a government that hasn’t been able to accurately project a budget since the Los Angeles Dodgers were last in the World Series isn’t exactly a model for growth.  The cap-and-trade system imposed by California will necessarily hike energy costs, as businesses pass along the burden to consumers, and energy producers will continue their exodus from the Golden State.


TOPICS: Extended News; Government; News/Current Events; US: California
KEYWORDS: agw; ca; carbontax; democrats; envirofascism; globalwarming; globalwarminghoax; greenfraud; obama; thegreenlie

1 posted on 12/11/2012 5:17:35 PM PST by Ernest_at_the_Beach
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To: Ernest_at_the_Beach

that much? that is unexpected. I was thinking single digits.


2 posted on 12/11/2012 5:18:31 PM PST by cableguymn (The founding fathers would be shooting by now..)
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To: NormsRevenge; Grampa Dave; SierraWasp

fyi


3 posted on 12/11/2012 5:18:59 PM PST by Ernest_at_the_Beach ((The Global Warming Hoax was a Criminal Act....where is Al Gore?))
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To: cableguymn; SunkenCiv; Marine_Uncle; Fred Nerks; Carry_Okie; blam; Lorianne; Twotone; bigbob; ...

Well,....the fat cat politicians were expecting 150%,....cause the climat is so nice out here.


4 posted on 12/11/2012 5:27:18 PM PST by Ernest_at_the_Beach ((The Global Warming Hoax was a Criminal Act....where is Al Gore?))
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To: Ernest_at_the_Beach

Cap and Trade legislation reaks of Enron. We all know how that worked out.


5 posted on 12/11/2012 5:29:43 PM PST by Cyclone59 (Obama is like Ron Burgundy - he will read ANYTHING that is on the teleprompter)
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To: Ernest_at_the_Beach

Philosophically, how is this different from the Pope selling indulgences?


6 posted on 12/11/2012 5:34:15 PM PST by null and void (Going Galt: The won't of the people)
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Did someone mention Enron?
http://www.youtube.com/watch?v=cpEcPFSEIwQ

As far as cap and tax goes, I think money is secondary to the ultimate goal which is to completely control the people.


7 posted on 12/11/2012 6:00:10 PM PST by Hayride
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To: Ernest_at_the_Beach

why don’t they build a Bullet Train to Texas?

The state —in which I’m sitting— would get their stupid train nobody wants, and soon-to-be-former residents would get a final reminder of why they don’t want to live there anymore.


8 posted on 12/11/2012 6:00:20 PM PST by gaijin
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To: Ernest_at_the_Beach
Interesting.
But I was more intrigued by the companion piece regarding Obamacare:"Quality Software Services, Inc. (QSSI), was awarded the contract to build the federal data hub and other technological components of the federal exchange early this year. It was then bought by UnitedHealth Group, which also owns UnitedHealthcare...Industry experts and competitors (snip) worry quite reasonably that if an insurance carrier which is supposed to compete inside the exchange shares an owner with the company building that exchange, that might turn out pretty darn well for…UnitedHealthcare.

Surprisingly enough, United Health Care is an off-shoot /partner with AARP, a strong supporter of Obamacare.

9 posted on 12/11/2012 6:00:40 PM PST by norton
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To: Ernest_at_the_Beach
La, la, la,
La, la, la...

Sigh. Didn't work.
If only I could be oblivious.

10 posted on 12/11/2012 6:23:49 PM PST by Carry_Okie (The Slave Party: advancing indenture since 1787.)
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To: Ernest_at_the_Beach
"They must cut back their production or buy enough credits to cover all their emissions."

Please, let them "cut back production". If constant brown-outs and huge increases in utility rates, economic failure and job losses are what it is going to take to wake people up in California, then let it happen. Let Californians suffer from the choices they made at the polls.

And I am truly sorry that Free Republic and it's creators would also be on the receiving end of the Liberal/DemocRAT Party imposed adversity and lunacy. Perhaps they can find a way to get out of the state in the near future.

11 posted on 12/11/2012 6:30:38 PM PST by StormEye
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To: Ernest_at_the_Beach

They have already spent many times that in anticipation


12 posted on 12/11/2012 6:31:52 PM PST by GeronL (http://asspos.blogspot.com)
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To: Ernest_at_the_Beach

They have already spent many times that in anticipation


13 posted on 12/11/2012 6:37:56 PM PST by GeronL (http://asspos.blogspot.com)
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To: Ernest_at_the_Beach

Have Republicans been blamed yet? That’s the important thing. Blame is job #1.


14 posted on 12/11/2012 6:40:18 PM PST by TChad
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To: Ernest_at_the_Beach

International redistribution, from us to them


15 posted on 12/11/2012 6:47:13 PM PST by ronnie raygun (bb)
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To: null and void

Interesting parallel. And, I like your tagline.

Its a Twofer!


16 posted on 12/11/2012 6:51:07 PM PST by American in Israel (A wise man's heart directs him to the right, but the foolish mans heart directs him toward the left.)
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To: Ernest_at_the_Beach

...as many as 51,000 jobs might be lost due to refinery closings alone.


California does not exactly have an excess of oil refineries. If refineries close, where is their gasoliine going to come from? and at what price?

Please pass the popcorn ... this is going to be fun to watch for those not living in the State.


17 posted on 12/11/2012 6:53:35 PM PST by Mack the knife
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To: Ernest_at_the_Beach

Obviously they just didn’t explain it well enough to the little people.


18 posted on 12/11/2012 6:56:43 PM PST by theBuckwheat
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To: Ernest_at_the_Beach

The create a problem; then sell the solution. Sounds like protection money being charged by the mob.


19 posted on 12/11/2012 6:59:11 PM PST by HereInTheHeartland (Witty saying goes here...)
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To: Ernest_at_the_Beach

Attention owners of small business in California: get out before the state hires Wesley Mouch, a bureaucrat who cripples the economy with endless regulations.


20 posted on 12/11/2012 7:00:12 PM PST by theBuckwheat
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To: Ernest_at_the_Beach
the political class in Sacramento stumbled on the perfect solution to falling revenues and rising costs … soaking the business world to seize more capital for further spending. The state held its first auction of cap-and-trade credits, and projected that businesses would spend a billion dollars in buying, er, vapor.

The fantasy world of California continues. With morons playing all the roles--- both elected and as voters.

In the real universe, the "business world" never gets soaked by government; they just soak their customer/clients on the State's behalf. Buying pretend ephemeral useless "credits" to empower further juvenile unrestrained spending. And both group of retards think they can run the scam forever!

The real victims, working taxpayers, WILL figure out the legal extortion scheme sooner or later. And the consequences will NOT be pretty.

21 posted on 12/11/2012 7:11:21 PM PST by publius911 (Formerly Publius 6961, formerly jennsdad)
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To: Ernest_at_the_Beach

Final Stage Communism.


22 posted on 12/11/2012 7:13:54 PM PST by Graewoulf ((Traitor John Roberts' Obama"care" violates Sherman Anti-Trust Law, AND the U.S. Constitution.))
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To: publius911

Some biz don’t soak their customers. They relocate.


23 posted on 12/11/2012 7:18:27 PM PST by morphing libertarian
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To: morphing libertarian
Some biz don’t soak their customers. They relocate.

Not nearly enough of them. For most, like the tobacco companies, so long as their bottom line is not reduced, they are happy to just collect the extortion. Easier than moving.

A list of the businesses and utilities which meekly go along with the charade will ultimately be useful.

24 posted on 12/11/2012 7:30:40 PM PST by publius911 (Formerly Publius 6961, formerly jennsdad)
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To: Ernest_at_the_Beach

14%. What a great deal.


25 posted on 12/11/2012 7:32:11 PM PST by Marine_Uncle (I'm going John Galt.... But. Honor must be earned.)
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To: publius911

Plz provide numbers to support your conclusion enough aren’t leaving


26 posted on 12/11/2012 7:35:40 PM PST by morphing libertarian
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To: norton; Ernest_at_the_Beach; Grampa Dave; calif_reaganite; tubebender; Anybody; Everybody; All
Re: Your Reply #9...

Well looky there!!! A direct and corruptive conflict of interest at worst and "crony capitalism" at best!!!

IMO Wellpoint was stupid to the max to let Pelosi, Reid and Obama to use them while whipping up hatred for their subsidiary Anthem Blue Cross over a long overdue rate increase on a dying block of business that the CA Insurance Commissioner would force to eventually raise rates to keep that block of business viable anyway.

But if anyone would have pointed that out in 2010 they would have been totally deamonized as a lover of evil insurance companies who deliberately want to screw and devastate people who are unlucky enough to be found in such a block of downward spiraling uninsurables as the only ones that couldn't jump ship to a heathy block.

It's all been a masterful deciet because no one understands actuarial assumptions and selection against those same companies that leads directly to the deathspirals of aging blocks of health insurance policyholders that usually takes about 3 to 5 years in a typical scenario.

Thank you for picking up on this "pick and roll" or "bait and switch" under the banner of some kind of "public policy" by the Demonicrat slight of hand artist in full control of the American People's government!!!

27 posted on 12/11/2012 9:23:28 PM PST by SierraWasp (Blessed are they who prospect, dig & drill, for they are the primary producers of new, real wealth!!)
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To: Hayride

Thanks. Here is one for you:

http://www.youtube.com/watch?v=Ov0WwtPcALE


28 posted on 12/15/2012 3:43:47 PM PST by Barnacle (Is treason a high crime or misdemeanor?)
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