Faced with a faltering economy, fatigue over the health care fight, and the prospect of congressional elections this November, proponents of a carbon cap-and-trade bill in the U.S. Senate face high hurdles when Congress returns from its winter recess next week.

The Obama administration and Sen. John Kerry of Massachusetts, the lead author on the climate bill, insist that they are proceeding with plans to pass climate and energy legislation this year.

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Some projects are just too big to let the private sector handle them alone. Updating our aging one-way system of centralized power production to a smart grid is one of those projects. Left mostly to its own initiative, the energy industry has done very little in technology innovation during the past fifty years to make the grid more efficient and to accommodate distributed power production.

The need is so clear that even a group that supports limited government agrees that building a smart grid that conserves energy, integrates renewables, and diminishes peak power requires the guiding hand of the federal government.

The Lexington Institute has published a paper that neatly summarizes the smart grid challenges, and concludes that “Just as the grid of today required presidential initiative, the smart grid will take a high-level policy push, too.” The public policy research group, which says it “actively opposes the unnecessary intrusion of the federal government into the commerce and culture of the nation,” adds that “Smart grid will most likely require federal, state and local government incentives” and that “Policy action is worthwhile to move promising technologies closer to full adoption.”

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Four Democratic U.S. senators are calling on their leadership to pass legislation setting renewable energy targets but to postpone the key element of a major climate and energy bill, which would put a cap and a price on carbon dioxide emissions.

The move by the senators — Blanche Lincoln of Arkansas, Ben Nelson of Nebraska, and Kent Conrad and Byron Dorgan, both of North Dakota — could pose a major challenge for cap-and-trade legislation that was passed by the House of Representatives in June and is now before the Senate.

Referring to the renewable energy and cap-and-trade provisions, Sen. Lincoln told Bloomberg News,
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Is the world warming, cooling or does it matter? Most of us will say it matters, a lot, at least in public anyway. And especially if you are hoping to pay rent or retire one day with a career based around the belief that Amsterdam, New York and Dubai will no longer exist unless we cut greenhouse gases and stop the icecaps from melting. But what has happened now that the earth cooled over the past year? Not to mention former NASA Chief Scientist Dr. Joanne Simpson’s claim last year that now that she is “no longer affiliated with any organization nor receive any funding” that she can publicly say that she “remains skeptical.” Recently the name was changed from ‘global warming’ to ‘climate change’ – what is really going on? Or does it matter?

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