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Bogus Pro-RGGI Report Exposed as Flawed

March 08, 2012 J

The following is from AFP’s latest newsletter…

RGGI radicals switch gears: It’s no longer carbon dioxide, it’s jobs!

Click here to listen to our latest radio spot urging Kip Bateman to keep New Jersey out of RGGI!

Ever since Gov. Christie decided to withdraw our state from the job-destroying RGGI Cap & Trade scheme, the liberal left and environmentalists have been on the counter-attack.

Just like President Obama, liberals in Trenton are beholden to a radical environmentalist movement. They want to keep the RGGI electricity tax around so that they have a slush fund to pay for their “green energy” rip-offs and to line the pockets of the politically well-connected.

With just 15 or so secretive RGGI auctions on the books, ratepayers have already been bilked for more than $1.6 BILLION! That’s a hefty revenue stream – one that liberal politicians and their hard-core environmentalist cronies will go to any length to keep. Even if that means producing phony, bogus reports claiming that the RGGI Cap & Trade scheme somehow creates jobs and produces wealth.

One such “study” released late last year did just that. Funded by a number of far left groups and implemented by a bunch of Obama cronies, the study conducted by the Analysis Group claimed, among other things, that the $1.6 BILLION of RGGI Cap & Trade tax revenue generated about $1.6 BILLION in net benefits for the ten states!

Any economist worth his salt knows that taxation does not create wealth. And as we have seen with Solyndra and myriad other “investments” in alternative energy companies, they are failing every day and at great expense to taxpayers.

Sure enough, the Analysis Group doesn’t stand up to scrutiny and has been exposed as nothing but a fraud intended to pull the wool over the eyes of the public and mislead policy-makers by the Institute for Energy Research.

According to IER, the Analysis Group study is “deeply flawed” and makes the following key points to rebut the Analysis Group’s study:

1. According to the Analysis Group itself, electricity prices have risen because of RGGI. The benefits the Analysis Group purports to find are hypothetical benefits based on models–not on actual experience.

2. The Analysis Group assumes massive consumer irrationality–that’s the only way to get positive net benefits through RGGI’s tax-and-spend scheme.

3. Ironically, the alleged benefits of the Regional Greenhouse Gas Initiative have nothing to do with greenhouse gas emissions or the reduction of those emissions. The same results could be achieved through a plain vanilla tax rather than a tax on carbon dioxide emissions from power plants.

4. Lastly, it should be noted that because of a weak economy, cool summers, and low natural gas prices, carbon dioxide emissions from electricity generation are already down by 30% in RGGI states–3 times greater than RGGI’s goal to reduce greenhouse gas emissions by 10% by 2018. If the point of RGGI were to reduce greenhouse gas emissions, then RGGI’s proponents could declare victory and go home. The fact that they don’t only makes clear that RGGI is about taxing energy and spending the money on pet projects.

IER’s conclusions confirm the fact that RGGI has nothing to do with helping the environment, and everything to do with helping well-connected “green” businesses and their friends in Trenton raid your hard-earned tax money.

CLICK HERE to read IER’s full critique on the economic “benefits” of RGGI!

Senator “Kip & Trade”?

Will state Sen. Kip Bateman stand with Barack Obama and become the poster child for Cap & Trade in New Jersey, or will he stand with hard-working New Jersey ratepayers?

Last week, Sen. Bateman voted in committee along with Trenton liberals to put New Jersey back into the Obama-style RGGI Cap & Trade scheme. Soon this bill (S1322) will be up for a vote before the full senate and Sen. Bateman needs to hear from you and me!

Contact Sen. Bateman’s office at 908-526-3600 or e-mail him at SenBateman@njleg.org. Tell him that you expect him to STAND UP for ratepayers and vote NO on the bill to reinstate the job-killing RGGI electricity tax!

On To Victory,

Steve Lonegan
State Director

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