Jake Tapper reports on the discovery of an internal EPA memo that admits what everyone knows about cap-and-trade systems and regulation of CO2.  The memo advises the White House that any attempt to regulate output of CO2 in energy production will likely have “serious economic consequences.

This memo destroys the argument made by Obama often over the last two years that cap-and-trade would wind up being an economic boon.  Obama had argued that a renewed emphasis on green energy production would be akin to landing on the moon, a big government program that boosted employment in pursuit of an ambitious goal.  The difference between the two is that the space program didn’t impose massive burdens on the airline industry to pay for it, or on the auto industry, or Amtrak.

Since the discovery of the memo there has been movement in the Congress.House Energy and Commerce Committee Chairman Henry A. Waxman (D., Calif.) has been negotiating with a group of Southern and Midwestern Democrats on his committee who have withheld support for his bill because they feared it would hurt the economies in their states.

Mr. Waxman’s bill calls for capping emissions of greenhouse gases, and requiring companies to hold permits in order to emit such gases. But the original version of the proposal was silent on the degree to which companies would have to pay for those permits, versus being given them free. Utilities dependent on coal and other carbon-intensive industries such as steel plants or oil refineries have been lobbying Congress to give them the permits for free, at least initially.

Republicans and other interest groups were already turning up the heat on Democrats and the Obama administration ahead of Tuesday’s deal. Earlier in the day, Republicans pounced on a White House document that says regulating greenhouse gases under the Clean Air Act “is likely to have serious economic consequences for regulated entities throughout the U.S. economy, including small businesses and small communities.”

House Minority Leader John Boehner (R., Ohio) said the OMB memo “suggests that a political decision was made to put special interests ahead of middle-class families and small businesses struggling in this recession.”

So the compromises have begun and most of the pie in the sky bills that have been promised will become a watered down pale reflection of any real change.  People!  The planet is dying, now is NOT the time for lame ass compromises!