BY Administrator, ON NOVEMBER 23, 2009
Cap And Trade Is A New Payoff Machine For Democrats
Under a strict cap and trade program all of the above allowances (meaning 100%) would be auctioned off to find the "true"Market price for carbon. However, as can be expected with any government program where the government is looking to curry favor with one group or another, a number of allowances are being doled out for free - to win votes. It is a true game of the government picking the winners and losers before the game ever even starts.
Waxman-Markey (the cap and trade bill) doled out its allowances along the lines of the chart above. A in that chart you will see that 16.5 % will be truly auctioned. The remainin 84.5% are given away for free over a limited period of time that ratchets down.
What was the refining industry's portion of these free allowances under Waxman-Markey? Under Waxman-Markey refiners have two categories of GHG emissions that they became obligors for, process emissions and consumer emissions.