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Tops on House Democrats’ to-do list: Try to end shutdown

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WASHINGTON — House Democrats are sweeping into power this week on a campaign promise of improving government for ordinary Americans. But first, they’ll have to get government reopened from the partial shutdown.

As the Congress gavels in for the 116th session the early votes will be the usual ones — establishing the House rules and electing the House speaker, presumably California Democrat Nancy Pelosi. But the new majority will quickly pivot Thursday to a pair of bills to fund the parts of the government that have been shuttered in the dispute over money for President Donald Trump’s border wall with Mexico.

It’s a cold opening for the new majority, setting up an early confrontation with the Republican-led Senate and the White House and testing the House Democrats’ ability to make good on their campaign pledge to focus on kitchen-table issues in the new era of divided government.

“Our first order of business will be to end the reckless Trump shutdown and reopen the government,” Rep. Hakeem Jeffries of New York, the incoming caucus chairman, said in an interview. Then, he said, “we will turn our attention to bringing our democracy to life and returning our government to the people.”

So far, House Democrats appear largely unified in their plan to vote to reopen government without the money Trump is demanding to build the border wall.

Jeffries said that while Trump wants to “waste millions in taxpayer dollars on a medieval border wall,” Democrats are drawing “a line in the stand” against the spending they say won’t make the border any safer.

“The partisanship, rancour and dysfunction of the Trump shutdown is exactly what voters rebuked in November,” said Rep.-elect Joe Neguse of Colorado, a new leader of the freshmen class, in the Democrats’ weekly address. “And that is why on Jan. 3rd, when the new Democratic House majority arrives, we will bring the hope, vision and goals of effective governance back to the forefront.”

But with Trump dug in over the $5 billion he wants to build the wall, the shutdown could drag on. Senate Republicans are reluctant to consider the House bills unless they know the president is on board.

The first signal Trump has given that he may be willing to talk about the wall impasse came Tuesday, when he tweeted, “Let’s make a deal?” He’s invited Democratic and Republican congressional leaders to a White House meeting Wednesday on border security.

Democrats are eager to move forward in the House on multiple fronts.

They’re set to approve a rules package on Thursday that sets a new tone for governing. For example, it requires that legislation first be considered in committees before bills are brought to the floor for votes. It bans lawmakers from serving on corporate boards. And it recognizes the diversity of the new freshmen class by easing a century-old rule against wearing hats on the chamber floor to allow Rep.-elect Ilhan Omar, a Muslim-American from Minnesota, to wear a head scarf.

By early next week, House Democrats are expected to consider a resolution to defend the Affordable Care Act in legal proceedings after a Texas judge ruled it largely unconstitutional in a legal challenge brought by Republican attorneys general from several states.

H.R. 1, the first bill of the new House majority, is a good-government package that tackles campaign finance reforms and other issues. It will begin making its way through the newly bolstered committee process.

And they will continue their oversight of the Trump administration and Russian interference in the 2016 election.

Incoming Rules Committee Chairman Rep. Jim McGovern, D-Mass., insists the new majority can “walk and chew gum” at the same time.

Still, corralling a large House majority has never been easy, and Democrats are ushering in the largest class since the Watergate era. Republicans under retiring Speaker Paul Ryan all but gave up trying to the muscle the conservative House Freedom Caucus in line. It was the Freedom Caucus leaders who urged Trump to fight for the border wall money and reject legislation that would have prevented the shutdown days before Christmas.

Pelosi is expected to regain the gavel Thursday, securing the votes to become speaker even after some new and returning lawmakers signalled they wanted new leadership. She would be the first woman to hold, then return, to the office.

But divisions remain, rearing up even before the newly elected members are sworn into office, as many are eager for change and ready to confront Trump.

Rep.-elect Alexandria Ocasio-Cortez of New York has been critical of the leader’s plans to create a Select Committee on the Climate Crisis. She prefers a panel that focuses on renewable energy investments and whose members refuse campaign donations from oil and other fossil fuel industries.

“Our ultimate end goal isn’t a Select Committee,” Ocasio-Cortez tweeted as the panel was being formed. “Our goal is to treat Climate Change like the serious, existential threat it is by drafting an ambitious solution on the scale necessary – aka a Green New Deal – to get it done. A weak committee misses the point & endangers people.”

Trump and Republicans have been eager to widen those divisions, especially as the shutdown stretches into its second week.

Republican Rep. Kevin McCarthy of California, the incoming minority leader, panned the Democratic effort to reopen government without wall money.

Democrats vow to stay united as they work to reopen government, and press on with the priorities.

“As my mother used to say, ‘This too shall pass,'” Jeffries said. “We will get past this shutdown and there will be ample opportunity for us to communicate with the American people and get things done on their behalf.”

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Follow on Twitter at https://twitter.com/lisamascaro

Lisa Mascaro, The Associated Press

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Mortgaging Canada’s energy future — the hidden costs of the Carney-Smith pipeline deal

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By Dan McTeague

Much of the commentary on the Carney-Smith pipeline Memorandum of Understanding (MOU) has focused on the question of whether or not the proposed pipeline will ever get built.

That’s an important topic, and one that deserves to be examined — whether, as John Robson, of the indispensable Climate Discussion Nexus, predicted, “opposition from the government of British Columbia and aboriginal groups, and the skittishness of the oil industry about investing in a major project in Canada, will kill [the pipeline] dead.”

But I’m going to ask a different question: Would it even be worth building this pipeline on the terms Ottawa is forcing on Alberta? If you squint, the MOU might look like a victory on paper. Ottawa suspends the oil and gas emissions cap, proposes an exemption from the West Coast tanker ban, and lays the groundwork for the construction of one (though only one) million barrels per day pipeline to tidewater.

But in return, Alberta must agree to jack its industrial carbon tax up from $95 to $130 per tonne at a minimum, while committing to tens of billions in carbon capture, utilization, and storage (CCUS) spending, including the $16.5 billion Pathways Alliance megaproject.

Here’s the part none of the project’s boosters seem to want to mention: those concessions will make the production of Canadian hydrocarbon energy significantly more expensive.

As economist Jack Mintz has explained, the industrial carbon tax hike alone adds more than $5 USD per barrel of Canadian crude to marginal production costs — the costs that matter when companies decide whether to invest in new production. Layer on the CCUS requirements and you get another $1.20–$3 per barrel for mining projects and $3.60–$4.80 for steam-assisted operations.

While roughly 62% of the capital cost of carbon capture is to be covered by taxpayers — another problem with the agreement, I might add — the remainder is covered by the industry, and thus, eventually, consumers.

Total damage: somewhere between $6.40 and $10 US per barrel. Perhaps more.

“Ultimately,” the Fraser Institute explains, “this will widen the competitiveness gap between Alberta and many other jurisdictions, such as the United States,” that don’t hamstring their energy producers in this way. Producers in Texas and Oklahoma, not to mention Saudi Arabia, Venezuela, or Russia, aren’t paying a dime in equivalent carbon taxes or mandatory CCUS bills. They’re not so masochistic.

American refiners won’t pay a “low-carbon premium” for Canadian crude. They’ll just buy cheaper oil or ramp up their own production.

In short, a shiny new pipe is worthless if the extra cost makes barrels of our oil so expensive that no one will want them.

And that doesn’t even touch on the problem for the domestic market, where the higher production cost will be passed onto Canadian consumers in the form of higher gas and diesel prices, home heating costs, and an elevated cost of everyday goods, like groceries.

Either way, Canadians lose.

So, concludes Mintz, “The big problem for a new oil pipeline isn’t getting BC or First Nation acceptance. Rather, it’s smothering the industry’s competitiveness by layering on carbon pricing and decarbonization costs that most competing countries don’t charge.” Meanwhile, lurking underneath this whole discussion is the MOU’s ultimate Achilles’ heel: net-zero.

The MOU proudly declares that “Canada and Alberta remain committed to achieving Net-Zero greenhouse gas emissions by 2050.” As Vaclav Smil documented in a recent study of Net-Zero, global fossil-fuel use has risen 55% since the 1997 Kyoto agreement, despite trillions spent on subsidies and regulations. Fossil fuels still supply 82% of the world’s energy.

With these numbers in mind, the idea that Canada can unilaterally decarbonize its largest export industry in 25 years is delusional.

This deal doesn’t secure Canada’s energy future. It mortgages it. We are trading market access for self-inflicted costs that will shrink production, scare off capital, and cut into the profitability of any potential pipeline. Affordable energy, good jobs, and national prosperity shouldn’t require surrendering to net-zero fantasy.If Ottawa were serious about making Canada an energy superpower, it would scrap the anti-resource laws outright, kill the carbon taxes, and let our world-class oil and gas compete on merit. Instead, we’ve been handed a backroom MOU which, for the cost of one pipeline — if that! — guarantees higher costs today and smothers the industry that is the backbone of the Canadian economy.

This MOU isn’t salvation. It’s a prescription for Canadian decline.

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Cost of bureaucracy balloons 80 per cent in 10 years: Public Accounts

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By Franco Terrazzano 

The cost of the bureaucracy increased by $6 billion last year, according to newly released numbers in Public Accounts disclosures. The Canadian Taxpayers Federation is calling on Prime Minister Mark Carney to immediately shrink the bureaucracy.

“The Public Accounts show the cost of the federal bureaucracy is out of control,” said Franco Terrazzano, CTF Federal Director. “Tinkering around the edges won’t cut it, Carney needs to take urgent action to shrink the bloated federal bureaucracy.”

The federal bureaucracy cost taxpayers $71.4 billion in 2024-25, according to the Public Accounts. The cost of the federal bureaucracy increased by $6 billion, or more than nine per cent, over the last year.

The federal bureaucracy cost taxpayers $39.6 billion in 2015-16, according to the Public Accounts. That means the cost of the federal bureaucracy increased 80 per cent over the last 10 years. The government added 99,000 extra bureaucrats between 2015-16 and 2024-25.

Half of Canadians say federal services have gotten worse since 2016, despite the massive increase in the federal bureaucracy, according to a Leger poll.

Not only has the size of the bureaucracy increased, the cost of consultants, contractors and outsourcing has increased as well. The government spent $23.1 billion on “professional and special services” last year, according to the Public Accounts. That’s an 11 per cent increase over the previous year. The government’s spending on professional and special services more than doubled since 2015-16.

“Taxpayers should not be paying way more for in-house government bureaucrats and way more for outside help,” Terrazzano said. “Mere promises to find minor savings in the federal bureaucracy won’t fix Canada’s finances.

“Taxpayers need Carney to take urgent action and significantly cut the number of bureaucrats now.”

Table: Cost of bureaucracy and professional and special services, Public Accounts

Year Bureaucracy Professional and special services

2024-25

$71,369,677,000

$23,145,218,000

2023-24

$65,326,643,000

$20,771,477,000

2022-23

$56,467,851,000

$18,591,373,000

2021-22

$60,676,243,000

$17,511,078,000

2020-21

$52,984,272,000

$14,720,455,000

2019-20

$46,349,166,000

$13,334,341,000

2018-19

$46,131,628,000

$12,940,395,000

2017-18

$45,262,821,000

$12,950,619,000

2016-17

$38,909,594,000

$11,910,257,000

2015-16

$39,616,656,000

$11,082,974,000

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