Then again...

A few more problems may be emerging with the HRC Energy Proposal. From my colleague David Roberts:

A reporter from the Iowan Des Moines Register said, "she only talked about cellulosic ethanol in her biofuels section. Does she think corn ethanol is transitional?"

I crossed my fingers, but ...

"No!" They practically shouted. No, no, no, she loves corn ethanol. She thinks it's great! She thinks it will always be part of the mix. It's just that we need all fuel stocks to reach the ambitious biofuel targets she's laid out. But no, really, she think corn ethanol will always be involved. You hear me, Iowans?! Hillary loves your farmers!

Sigh.

The only other interesting answer came in response to a question from the Detroit News, which was, naturally, about the CAFE standards in the plan -- 55mpg by 2030. The advisors defended the target, but then also rushed to explain how Clinton would help automakers. There would be some "green vehicle bonds" to help factories and such transition (more on this later), and -- this is the interesting bit -- "the cap-and-trade program would produce assistance for energy-intensive industries."

Now, as you know, the criticism of giving away permits under a cap-and-trade system is that it would produce windfall profits for polluters. By auctioning all permits, Clinton has seemingly avoided this criticism. But if she takes the auction revenue and then ... gives it to polluters, well, she's just hidden the windfall profits, not eliminated them. I'll try to follow up on this with her advisors in a bit.

This is basically correct. Of course, a full auction creates a market environment that will create much, much more revenue than will the auction in Lieberman Warner, and those guys still have no problem alluding to huge subsidies to polluting industries. In that sense, as long as Clinton doesn't plan to hand out tons more money than Lieberman and Warner do, it's an improvement. But suboptimal.

Also, an unending--as opposed to temporary-- commitment to corn--and not just cellulosic--ethanol is really lame.

Back later.