Advocacy groups are pushing to include the State Energy Race to the Top Initiative Act of 2013 legislation as an amendment to the Shaheen–Portman efficiency bill. But the “race to the top” idea amounts to nothing more than a subsidy-filled race to the trough for companies that are hungry to gobble up taxpayer dollars.
Proposed by President Obama in his State of the Union speech and more recently in legislation introduced by Senators Mark Warner (D–VA) and Joe Manchin (D–WV), the race to the top is a $200 million grant program to promote energy efficiency that adds even more taxpayer money to existing federal and state efficiency subsidies and mandates.
States and qualifying entities would submit proposals to the Department of Energy (DOE) for efficiency upgrades such as building retrofits for public and private commercial buildings, schools, hospitals, and residential buildings as well as industrial efficiency, demand-side management, and more. The DOE would provide a first phase of funding to no more than 25 states and a second round of much larger grants to no more than six states based on the project proposal, geography, and likelihood of success.
If spending on efficiency increases competitiveness or saves businesses and manufacturers money, they should make those investments on their own. In fact, companies invest in innovative technologies that conserve energy all the time, because such investments do save money and make their products more competitive. They do not need the federal government to prod them with taxpayer-funded subsidies.
Energy efficiency per dollar of gross domestic product has improved dramatically over the past 60 years. Some might wrongly suggest that this was the result of efficiency standards, but technological improvements and consumer preference are the cause, and energy intensity has been in decline long before a national energy efficiency policy.
The race to the top program duplicates the many existing state and federal efficiency programs that already exist. It would provide another incentive for companies to build business models around government programs to collect taxpayer cash rather than competing in the marketplace. Government mandates, rebate programs, or spending initiatives to make businesses and homeowners more energy efficient take choices away from families and businesses and skew the rules of free enterprise.
We do not need a race to the top energy initiative funded by the government. Good ideas, competitive technologies, and profitable ventures will rise to the top without the taxpayers’ help
Sometimes it is tragic that you got to laugh about it. Dear Conan, Reckless Government Spending Is Worse Than You Think Brandon Stewart August 10, 2011 at 7:31 pm Late-night comedian Conan O’Brien’s blog has a new post parodying Washington’s excessive spending. “Team Coco has found out why our government is so broke,” the blog explains, “They’ve […]
We want to be protected but is the government going too far? Crime Fighting or Corporate Welfare? July 18, 2013 by Dan Mitchell I want government to successfully and rationally fight crime and stop terrorism. That’s a perfectly appropriate libertarian sentiment since protecting life, liberty, and property are among the few legitimate roles for government. But […]
John Stossel notes how good intentions lead to bad results when the government is involved. Why do we keep on giving the government more money when they waste so much? We should be putting more time in staying out of the small businessperson’s way!!!! The Reverse Midas Touch of Government January 6, 2013 by Dan Mitchell […]
______________________________________ Milton Friedman On Charlie Rose (Part One) The late Milton Friedman discusses economics and otherwise with Charlie Rose. _________________________________________ Milton Friedman: Life and ideas – Part 01 Milton Friedman: Life and ideas A brief biography of Milton Friedman _____________________________________ Stossel – “Free to Choose” (Milton Friedman) 1/6 6-10-10. pt.1 of 6. Stossel discusses Milton […]
I wish President Obama would try to cut spending instead of increasing spending and our debt. Two Very Good GSA Waste Cartoons April 21, 2012 by Dan Mitchell One of my first blog posts back in 2009 featured a column about the Social Security Administration squandering $750,000 on a “conference” at a fancy golf resort in […]
Does Government Have a Revenue or Spending Problem? People say the government has a debt problem. Debt is caused by deficits, which is the difference between what the government collects in tax revenue and the amount of government spending. Every time the government runs a deficit, the government debt increases. So what’s to blame: too […]
What Are the Dangers of Too Much Debt? Published on Mar 20, 2012 Interest payments on U.S. government debt are three times spending in the Iraq and Afghanistan wars already, and that is with the lowest interest rate we have seen since the 1960s. A rise in interest rates would increase interest payments dramatically. What […]
Funding Government by the Minute Published on Mar 28, 2012 At the rate the federal government spends, it runs out of money on July 31. What programs should be cut to balance the budget and fund the government for the remaining five months of the year? Cutting NASA might buy two days; cutting the Navy […]
Does Government Have a Revenue or Spending Problem? People say the government has a debt problem. Debt is caused by deficits, which is the difference between what the government collects in tax revenue and the amount of government spending. Every time the government runs a deficit, the government debt increases. So what’s to blame: too […]
What Are the Dangers of Too Much Debt? Published on Mar 20, 2012 Interest payments on U.S. government debt are three times spending in the Iraq and Afghanistan wars already, and that is with the lowest interest rate we have seen since the 1960s. A rise in interest rates would increase interest payments dramatically. What […]
What Can We Cut to Balance the Budget Published on Oct 16, 2012 Will Rogers has a great quote that I love. He noted, “Lord, the money we do spend on Government and it’s not one bit better than the government we got for one-third the money twenty years ago”(Paula McSpadden Love, The Will Rogers Book, (1972) […]
Does Government Have a Revenue or Spending Problem? People say the government has a debt problem. Debt is caused by deficits, which is the difference between what the government collects in tax revenue and the amount of government spending. Every time the government runs a deficit, the government debt increases. So what’s to blame: too […]
What Are the Dangers of Too Much Debt? Published on Mar 20, 2012 Interest payments on U.S. government debt are three times spending in the Iraq and Afghanistan wars already, and that is with the lowest interest rate we have seen since the 1960s. A rise in interest rates would increase interest payments dramatically. What […]
I wish the federal government would go back to spending less than 5% of GDP like they did the first 150 years of our country’s history. We could cut down on a lot of wasteful spending if we did that. Morning Bell: The Governing Class and Us Mike Brownfield April 19, 2012 at 8:57 am […]
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