Friday, April 22, 2011

News Journal Supports Cap and Trade Scheme After Blasting Waste of Program's Funds in "Weatherization Scandal" Just Two Weeks Ago

In an editorial today, the News Journal expressed support for Delaware's participation in the regional, state level cap and trade scheme known as RGGI. The editors touted the use of RGGI energy taxes to make buildings in Delaware more energy efficient. See "Delaware's cap-and-trade is paying off for the state"http://www.delawareonline.com/article/20110415/OPINION11/104150345/Delaware-s-cap-trade-paying-off-state?odyssey=mod|newswell|text|Home|p



Ironically, however, in an April 3, 2011 Sunday headline story, the News Journal blasted the state's effort to lower energy bills for "squandering" money on its Weatherization Assistance Program. See "Delaware weatherization program squanders stimulus funds; Families suffering for contractors' 'cash grab'"

http://www.delawareonline.com/article/20110403/NEWS02/104030366/Delaware-weatherization-program


Under the Weatherization Assistance Program, contractors were paid by the state to upgrade the energy efficiency of low income citizens' homes. But inspections show that many families were left with "drafty and poorly insulated homes while contractors were paid handsomely for shoddy . . . work."


The News Journal reported "contractors often skipped inexpensive but effective measures like insulating attics or sealing gaps and instead installed costly furnaces, windows and doors."


Allen Luzak, a weatherization expert with the Delaware Energy Office, said, "The cash grab that went on was just amazing."


The article noted that the program is now under criminal investigation by the Delaware Attorney general's office, as approximately $6 million dollars of federal stimulus money the state received in 2009 went to pay for the fraudulent work.


The article did not mention, however, the RGGI program specifies that 10% of its auction proceeds ($2 million to date) go to the Weatherization Assistance Program .


In an editorial appearing three days after the Sunday story, News Journal editors blasted the weatherization program as a "scandal." They said the contractors' "cash grab" had "besmirched the federal stimulus program as yet another example of wasteful government spending."


Again, however, the News Journal did not note that RGGI money also went towards the Weatherization Assistance Program.


The editors summed up their criticism by writing, "So much for the promise, 'I'm from the government and I'm here to help you."


According to David T. Stevenson, Director of the Caesar Rodney Institutes Center for Energy Competitiveness in Dover, News Journal editors would be wise to apply this adage to RGGI too:


"The News Journal's April 3 story exposing the fraud running through the Weatherization Assistance Program was excellent reporting. But the paper shouldn't selectively hold out the federal stimulus program as an example of wasteful spending while shielding another program which it favors, RGGI, which deserves a similar critique."


Rather than intentionally excluding RGGI from their reporting on the weatherization program, the News Journal editors and reporters were likely unaware that RGGI monies also went toward the program. Informed of this information, however, we hope they give similar scrutiny and critique to RGGI."


"The truth is RGGI is a costly and ineffective tax on Delaware businesses and citizens. The free market is already spurring significant increases in energy efficiency free of government mandates and taxes.


"In fact, accorinding to US Energy Information data, Delaware has become more efficient by 1.8% a year (equal to 5.4 Trillion in BTU savings per year) over the two and a half years RGGI has been in place."


"Even if you accept as true RGGI's own projections for the actual, effective expense of RGGI revenues on energy saving programs (dubious assumptions), over this same two and a half year period, the RGGI program would have boost energy efficiency only by 8 billion BTU's, or 0.06% of the rate of the general, un-subsidized economy."


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Here are the News Journal pieces:

http://www.delawareonline.com/article/20110407/OPINION11/104070328/The-needed-fix-weatherization

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