A Cap and Trade Bill, Minus the Cap and Trade

For months, the loyal Democratic opposition to President Barack Obama has been asking to replace the centerpiece of the energy bill, a potential cap and trade plan, with a straightforward carbon tax. Now it appears that they may get exactly half their wish: an energy plan with neither cap and trade or tax.

Obama noted yesterday that "this cap and trade thing" could be separated out from the rest of the bill. That makes cap and trade only the latest casualty of two circumstances -- Obama's dropping poll numbers, and the election of Republican Scott Brown in Massachusetts.

Renewable energy companies should be happy to hear of cap and trade's potential delay or demise. The greater energy bill includes grants, subsidies and other encouragements that are needed to keep solar, wind and their close cousins growing.

With cap and trade present but fewer than 60 Democratic votes in the Senate, it's unlikely the bill would pass at all. So there's an immediate advantage to the industry in getting rid of the unpopular parts of the legislation.

Obama's new-found urge to appease the Republican party is creating other winners, as well. I wrote last week about the administration's plans to throw more money at the nuclear industry and revamp waste laws. And today the president will reportedly outline a new plan to promote biofuels. It's probably not a coincidence that both those areas are Republican darlings.

But over the long term the renewable energy industry needs a carbon pricing mechanism of some type to help level the playing field against oil, gas and coal. And even those three traditional energy segments might benefit from a low carbon price, if it means that they can operate without being harassed about their emissions.