In the Pipeline: 5/30/13

“First they came for the manufacturers, and I did not speak because I was not a manufacturer. Then they came for the coal miners, and I didn’t speak out because I wasn’t a coal miner. Then they came for the drillers, and I didn’t speak out because I wasn’t a driller. Then they came for me, and there was no one left to speak for me.” CBS Pittsburgh (5/29/13) reports: “Janice Gibbs is a grandmother and was born and raised in Washington County. Although she has no drilling lease on her land, she believes that shale gas drilling is great for the local economy… ‘I just think it’s a good thing for our community,’ Gibbs said… When she started posting her pro-gas views on local websites under the name “Proud American,” she was soon shocked at how nasty things got… First, State Rep. Jesse White allegedly posted Gibbs’ real identity. Then, someone posting under the name “Prouder American” called her an ‘industry troll.’… The internet protocol — or IP — address of those people came up as the same computer as Rep. White’s state e-mail address.”

So when is Congress going to start reining in an Executive branch that is drunk with power? WSJ (5/29/13) reports: “The Environmental Protection Agency isn’t known for restraint, and now it has a new reason to let it all hang out. A federal court says it can be judge and jury for every development project in the U.S… That’s the impact of a unanimous late April decision by the D.C. Circuit Court of Appeals upholding the EPA’s veto of the Arch Coal ACI -2.63% Spruce Mine in West Virginia. The sweeping but little-publicized decision remakes regulation under the Clean Water Act, turning the Army Corps of Engineers into a bystander and elevating EPA to the nation’s water regulator of consequence.”

We are all about self-determination, but can’t help pointing out the irony here. LATimes (5/28/13) reports: “In acting to protect their water supply, the 5,000 residents of poor, conservative Mora County make it the first in the U.S. to ban fracking — hydraulic fracturing for oil… ‘We are one of the poorest counties in the nation, yes, but we are money-poor, we are not asset-poor,’ Olivas said.”

Recall that Van Jones, former Special Assistant to the President for Bankrupting the Coal Industry, had the hubris to rally with the workers against these necessary reductions in benefits. These hundreds of families are the real victims of this senseless ideological war against affordable energy and the blame is squarely on the Van Jones’ of the world. Washington Post (5//13) reports: “Surratt-States ultimately concluded the cost-cutting proposals were legal, perhaps unavoidable, for Patriot, which sought Chapter 11 bankruptcy protection last summer to address labor obligations it insisted have grown unsustainable… ‘Unions generally try to bargain for the best deal for their members,” the judge wrote. “However, there is likely some responsibility to be absorbed for demanding benefits that the employer cannot realistically fund in perpetuity, particularly given the availability of sophisticated actuarial analysts and cost trend experts.’”

Maybe a sophisticated guy like Kerry realized it’d be easier to bribe the Iranian government than the Obama administration to issue oil and gas permits. Free Beacon (5/29/13) reports: “Secretary of State John Kerry disclosed hundreds of thousands of dollars in investments last year in a company that allegedly bribed Iranian government officials to obtain oil and gas contracts in the country… The Securities and Exchange Commission on Wednesday charged French oil and gas company Total S.A. with violations of U.S. law for allegedly paying $60 million in bribes to “intermediaries” who helped the company win lucrative state contracts in Iran.”

In the Pipeline: 5/29/13

The first rule of Fair-Share Club is you do not talk about Fair-Share club. The second rule of Fair-Share Club is you do NOT talk about Fair-Share Club… NYTimes (5/25/13) reports: “Last week, in a Congressional hearing, Apple got grilled for its low-tax strategy. But not every business can copy that approach. Here is a look at what S.&P. 500 companies paid in corporate income taxes — federal, state, local and foreign — from 2007 to 2012, according to S&P Capital IQ.”

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Guys like Josh Nelson, not Fox, are a reminder that there is still hope for America. This kid packs a lot of punch. Coal Valley News (5/28/13) reports: “After coming out of Allegiance Mine, a mine that Joshua Nelson worked at last year and filing for candidacy for the West Virginia House of Delegates, Delegate Nelson made a decision that he wanted to stand up for West Virginia and its coal miners… During his campaign he stated that he believed that the state of West Virginia could do more to stand up to the federal government’s overregulation… He actually went on the Fox News Channel’s “The Huckabee Show” as well as spoke to the United States Congress on a piece of legislation called the “Stop the War on Coal” act.”

Linguists? Poets? How crazy do you have to be to stand out in California? Sacramento Bee (5/25/13) reports: “The core talent of a successful environmental activist is not science and law,” Suckling said in a 2009 interview with the High Country News. “It’s campaigning instinct.” In the same interview, Suckling even bragged about his staff’s lack of scientific qualifications… “It was a key to our success,” Suckling said. “I’m more interested in hiring philosophers, linguists and poets.”

Solution to save the environment? Do less. Work less. Create less. Improve less. Prosper less. Live, well, less! Carbonated.TV (5//13) reports: “Think about it: there is nothing sacred about the pattern of five days on, two days off. It’s an absolute miracle that we have the entire world on the same seven day week, and we probably shouldn’t mess with that, but what if we made the standard national work week 32 hours instead of 40? Here’s what: 1. The environment would heave a giant sigh of relief. The reduction in commuting time alone is reason enough to consider a four day work week. It would be all the better if not everyone took the same three days off: spreading out the traffic would reduce the overall burden.”

If we had a penny for every problem with this industry, we’d probably be able to afford one of the darn things ourselves. NYTimes (5/28/13) reports: “It was not an isolated incident. Worldwide, testing labs, developers, financiers and insurers are reporting similar problems and say the $77 billion solar industry is facing a quality crisis just as solar panels are on the verge of widespread adoption… No one is sure how pervasive the problem is. There are no industrywide figures about defective solar panels. And when defects are discovered, confidentiality agreements often keep the manufacturer’s identity secret, making accountability in the industry all the more difficult… But at stake are billions of dollars that have financed solar installations, from desert power plants to suburban rooftops, on the premise that solar panels will more than pay for themselves over a quarter century.”

Apparently you can win a boatload of money for fear mongering. Huffington Post (5/28/13) reports: “OSLO, Norway (AP) — American environmentalist Bill McKibben has won the $100,000 Sophie Prize for being a mobilizing force in the fight against global warming… The award committee commended McKibben for ‘building a global, social movement, fighting to preserve a sustainable planet.’”

Tesla Repays Feds, Should Thank Competitors for Success


Tesla Motors repayed a $465 million dollar loan from the federal government yesterday, nine years ahead of schedule. While being touted as a major success for the future of renewable energy and Zero Emissions Vehicles in particular, the truth behind Tesla’s façade of success is worrisome. The company’s first profitable quarter demonstrates the difficulty of finding real success in an unproven market.

Critics have raved about Tesla and its offerings. By any standard, their cars would be considered top notch. When added to the fact that their fleet is 100 percent electric, the level of hype is virtually unmatched by media, consumers, and environmentalists alike. Though such innovation comes at a premium (a stock Tesla Model S is priced at $69,900 before a $7500 federal tax break and various state incentives), the real money maker for Tesla and its billionaire CEO Elon Musk comes not from its cars, but capitalizing on government regulations aimed to reward automakers like Tesla whose cars emit zero emissions.

Tesla’s Q1 of 2013 exceeded investor expectations by producing its first ever quarterly profit earning $11.2 million. The stock exploded from $55 per share to $92 over the next few days. Less prominent in the financial discussion is the fact that during the quarter $68 million, or 12% of all revenue, was generated by the sale of carbon credits that Tesla sold to its competition.[1] These credits, which some analysts think can generate $250 million for Tesla this year, are purchased by companies as an insurance policy to help meet the restrictive emissions standards of states like California who require that 15% of all cars sold by 2025 will produce no emissions.[2] Critics are quick to point out that although these cars are emission free on the road, it takes conventional power plant and mining operations to develop and charge their lithium-ion batteries. Regardless, companies buy these Zero Emissions Vehicle (ZEV) credits from companies like Tesla who already exceed the 15% standard and hold onto them until they face fines and penalties for non-compliance.

This jump in stock price, based on industry subsidies and regulatory fees over actual market success, prompted Tesla sell 2.7 million new shares at its inflated price to raise the $450 million needed to repay Uncle Sam. Prominent skeptic of the still-fledgling EV market, Chrysler CEO Sergio Marchionne, has said, “Regulators are rushing precipitously toward embracing (electric vehicles) as the only solution. Doing that on a large scale will be masochism in the extreme.” Marchionne says that governments should stay technology neutral and let the free markets work.

While it’s great to see taxpayers not lose money on a loan to an electric car company, Tesla should be wary to claim success based on the exploitation of beneficial government regulation, lucrative taxpayer subsidies, and the continued funding of their competition.

In the Pipeline: 5/28/13

Here’s the thing. Even if Congress passed us a law that gave us cash to become tall and good-looking, we would still remain balding, overfed, leaping gnomes. So it is with physics. The federal government can’t just incentivize things into existence. The Atlantic (5/26/13) reports: “Electric car infrastructure company Better Place’s move to file bankruptcy today marks the end of the road for a billion-dollar bet that Silicon Valley-style technological disruption could wean the world from fossil fuels… Founded in 2007 in Palo Alto, California, by a charismatic former SAP executive named Shai Agassi, Better Place sought in one stroke to solve a conundrum: most electric cars were too expensive and too limited in their range to become a mass market alternative to the internal combustion engine.”

Why is it that OPEC has the same concerns as the Greenies? WSJ (5/27/13) reports: “The American energy boom is deepening splits within the Organization of the Petroleum Exporting Countries, threatening to drive a wedge between African and Arab members as OPEC grapples with a revolution in the global oil trade… OPEC members gathering on Friday in Vienna will confront a disagreement over the impact of rising U.S. shale-oil production, with the most vulnerable countries arguing that the group should prepare for production cuts to prop up prices if they fall any lower… ‘We are heading toward some problems,’ said a Persian Gulf OPEC delegate.”

It’s easy to triple a really small number. What’s really difficult is undoing the damage done to taxpayers. IER (5/24/13) reports: “According to the newly confirmed Secretary of Energy, Ernie Moniz, “While the market has taken longer than predicted to get going, sales of electric vehicles in the U.S. tripled last year and are continuing to increase rapidly in 2013. Tesla and other U.S. manufacturers are in a strong position to compete for this growing global market.” But, electric vehicles still have a long way to go to catch up to sales of traditional gasoline and diesel powered vehicles. During the first four months of 2013, plug-in cars accounted for less than 1 percent of total vehicle sales.[vii] And one thing is abundantly clear from Tesla’s financial experience with electric cars: thus far, this is a market created by the government, and without the government’s powers, it would not exist.”

The cure is worse than the disease. Most doctors would stop treatment. The Times London (5/20/13) reports: “There is little doubt that the damage being done by climate-change policies currently exceeds the damage being done by climate change, and will for several decades yet. Hunger, rainforest destruction, excess cold-weather deaths and reduced economic growth are all exacerbated by the rush to biomass and wind. These dwarf any possible effects of worse weather, for which there is still no actual evidence anyway: recent droughts, floods and storms are within historic variability.”

To kick the week off with a surprise, Jay Leno shares some insightful wisdom about government-funded solar companies. NewsBusters (5/25/13) reports: “You know, if he really wants to close it, turn it into a government-funded solar power company. The doors will be shut in a month. The whole thing will collapse and shut in a month.”Jay_Leno_

In the Pipeline: 5/24/13

Did Tesla pay back their loan, or did other people. Wanna guess? WSJ(5/23/13) reports: “Tesla’s biggest windfall has been the cash payments it extracts from rival car makers (and their customers), via its sale of zero-emission credits. A number of states including California require that traditional car makers reach certain production quotas of zero-emission vehicles—or to purchase credits if they cannot. Tesla is a main supplier… A Morgan Stanley MS -1.82%report in April said Tesla made $40.5 million on credits in 2012, and that it could collect $250 million in 2013. Tesla acknowledged in a recent SEC filing that emissions credit sales hit $85 million in 2013’s first quarter alone—15% of its revenue, and the only reason it made a profit… Take away the credits and Tesla lost $53 million in the first quarter, or $10,000 per car sold. California’s zero-emission credits provided $67.9 million to the company in the first quarter, and the combination of that state’s credits and federal and local incentives can add up to $45,000 per Tesla sold, according to an analysis by the Los Angeles Times.”

Believe it or not, there are plenty of things to remain optimistic about in this world. Among others, you’ve got puppies, bacon, and The Hangover III hitting theaters. IER (5/23/13) reports: “Air quality in the United States is getting cleaner, but sadly many Americans believe the opposite. In order to explain the reality of America’s improving environmental quality, Steven Hayward has spent years compiling environmental data with his Almanac of Environmental Trends. Recently he released an update using data from the Environmental Protection Agency to chronicle the astonishing reductions in air pollution in the last few years alone.”

Sun, sun, sun, here it comes. MPR News (5/14/13) reports: “The Minnesota House and Senate have agreed to an energy bill that includes a 1.5 percent solar energy standard for investor-owned utilities… The House version of the bill had required investor-owned utilities to provide at least 4 percent of their power through solar generation by late 2025. The Senate had approved a bill that included a 1 percent solar standard.”

Are these bozos so close to the issue that they can’t see how simple it really is? We could hire a senior in high school to do this study and save the government and American people a lot of time and money. Here’s a hint – free trade is good for everyone. The Daily Caller (5/23/13) reports: “The newly confirmed Energy Secretary Ernest Moniz has announced he will delay the final approval of 20 applications to export liquefied natural gas until he reviews studies on the impact exports would have on domestic natural gas prices… ‘I want to do, as I promised to Chairman Wyden, to make sure that we are using up-to-date data and then we want to go forward on a case-by-case basis … in terms of evaluating licenses in as expeditious a way [possible], consistent with that review process,’ said Moniz, according to The Hill.”

Apologies in advance Dan and Dan, but here’s the winner of the caption contest… Thanks for all the submissions! 

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The following think tank chiefs are opposed to a carbon tax. Please contact us at [email protected] if you wish to join our growing ranks.

Tom Pyle, American Energy Alliance / Institute for Energy Research
Myron Ebell, Freedom Action
Phil Kerpen, American Commitment
William O’Keefe, George C. Marshall Institute
Lawson Bader, Competitive Enterprise Institute
Andrew Quinlan, Center for Freedom and Prosperity
Tim Phillips, Americans for Prosperity
Joe Bast, Heartland Institute
David Ridenour, National Center for Public Policy Research
Michael Needham, Heritage Action for America
Tom Schatz, Citizens Against Government Waste
Grover Norquist, Americans for Tax Reform
Sabrina Schaeffer, Independent Women’s Forum
Barrett E. Kidner, Caesar Rodney Institute
George Landrith, Frontiers of Freedom
Thomas A. Schatz, Citizens Against Government Waste
Bill Wilson, Americans for Limited Government
Wayne Brough, FreedomWorks
Rich Collins, Positive Growth Alliance
Craig Richardson, American Tradition Institute

Drawing the Wrong Line in the Sand

 

The New Yorker’s Elizabeth Kolbert recently published a comment entitled “Lines in the Sand,” arguing that President Obama should not approve the Keystone XL pipeline because of the climate impacts of using oil. Kolbert’s argument is flawed for multiple reasons including the fact that she fails to consider the actual climate impact and the reality that even if the oil is not shipped to the U.S., it will be used anyway—obviating any climate impact of not building the pipeline. The reality is that the oil sands oil will be used regardless of Kolbert’s purported desire to use less oil. The question is whether the United States will reap the benefits and jobs of refining the oil. 

The crux of Kolbert’s argument centers on the fact that refining oil from oil sands is requires more energy, and attendant carbon dioxide emissions, than conventional oil. But instead of actually looking at the projected impact on climate from carbon dioxide emissions related to oil sands, she makes this maximalist argument:

Were we to burn through all known fossil-fuel reserves, the results would be unimaginably bleak: major cities would be flooded out, a large portion of the world’s arable land would be transformed into deserts, and the oceans would be turned into liquid dead zones.

She later acknowledges rejecting the Keystone XL pipeline “would not solve the underlying problem” but that it “would put a brake on the process.”  To this point, the State Department’s most recent environmental impact assessment found that the United States’ decision on Keystone would not affect changes in climate either way. 

An even better question, and one that Kolbert failed to consider, is how much of a climate impact would not building the Keystone XL pipeline have? Recently climate researcher Paul C. Knappenberger testified before Congress on Keystone’s climate impact. Using a climate simulation technique developed by the EPA called MAGICC (the Model for the Assessment of Greenhouse-gas Induced Climate Change), he concludes that, if Keystone were to operate for a century, it would in the worst-case result in a rise of 1/100th of a degree Celsius[1]. Kolbert is arguing that the President should reject the Keystone XL pipeline because it would reduce global temperature by 0.01 degrees C. Furthermore, Kolbert’s estimates about oil sands’s carbon emissions are inaccurate. She asserts that tar sands emit 12-23% more carbon dioxide than conventional crude. An IHS CERA study, however, suggests that her numbers are inaccurate. It cites Department of Energy data that reveal the range to be between 5-15%[2].

The pipeline is inevitable – it is only a question of whether it runs through the United States or not. That fact alone mitigates much of the opposition to Keystone. Whether the U.S. approves the pipeline or not, worldwide demand for oil will ensure that it will be brought to market somewhere. Furthermore, oil sands already travel by rail. Should the administration reject Keystone, the oil sands will simply continue to travel by rail[3]. Therefore, rejecting Keystone and Canada’s oil sands has no positive effect on climate change; there is only the question of whether the United States will share in the economic benefits that will come from it.

Kolbert even alludes to this argument in her piece, but then does a poor job of answering it. Even she admits that Canadian Prime Minister Stephen Harper has suggested on numerous occasions that, should Washington fail to approve Keystone, Ottawa will instead route the pipeline through British Columbia and ship the oil to China. Kinder Morgan is already working on tripling the size of its Trans Mountain Pipeline to take oil sands oil from Alberta to the coast near Vancouver. Kolbert’s answer to this argument is that “if getting tar-sands oil to China were easy, the Canadians wouldn’t be applying so much pressure on the White House.”

The problem with her analysis is that it ignores the distinction between “easy” and “easier.” The Canadians obviously want to do what is easiest for them (ship the oil sands to their largest trading partner, the U.S.), but that doesn’t suggest that, if they fail to ship it to the U.S., they will wave the white flag and give up producing the billions of dollars worth of crude oil they possess. Canada will instead settle for the next best option, which would be transporting the through Western Canada and shipping it overseas to energy-hungry countries like China.  For environmental advocates like Ms. Kolbert, this is arguably a worse outcome for the environment, because many of these countries lack the pollution controls that the United States imposes on its refineries and associated industries. Additionally, the pipeline would avoid the need to transport the oil to the U.S. via truck or rail, both of which are expensive alternatives that have a much greater likelihood of the kind of accidents that pipeline opponents warn against.

Even if Kolbert’s environmental warnings are correct—and the U.S. Department of State’s assessments and EPA climate models suggest they are not—her opposition to the Keystone XL pipeline has no grounding in reason or logic.  In rejecting Keystone, the United States only stands to lose to the benefit of our economic competitors.

Renewable Fuel Standard: A Misguided Policy

Ethanol advocates delight in touting the Renewable Fuel Standard (RFS) as an “American Success Story.” Yet several years after its passage, some in Congress are finally realizing that the RFS stands not as a central-planning success story but as a symbol of misguided government mandates.

The RFS requires refiners to blend ever-growing amounts of ethanol into gasoline every year with the goal of blending 36 billion gallons by 2022. To comply with the law, refiners must either blend the minimum levels of ethanol or purchase credits called Renewable Identification Numbers (RINs). However, RIN prices spiked from 7 cents in early 2013 to over $1 in March and have remained high since. This volatility increases compliance costs on refiners, which puts upward pressure on prices at the pump.

Ethanol supporters argue that the spike in RIN credits wouldn’t matter if refiners just bought more ethanol, but this ignores simple economics. If it made economic sense to purchase more ethanol, refiners would just purchase more ethanol. The fact of the matter, as reflected in the volatile RIN market, is that refiners don’t think buying more ethanol is a good deal. Yet instead of letting people decide for themselves how much ethanol to use, the federal government insists on mandating the use of billions of gallons of ethanol a year.

RIN prices are likely so high because refiners recognize that the U.S. is approaching the maximum amount of ethanol that can be blended into gasoline. This limit is called the “blend wall.” The problem is that federal law requires ever-increasing amounts of ethanol to be blended into gasoline, but current law, regulations, and warranties only permit most cars to run on gasoline that is at most 10 percent ethanol (automakers also produce some vehicles that are “Flex-Fuel” vehicles that can use fuel that is 85 percent ethanol). Automakers do not certify the vast majority of their vehicles to run on gasoline that more than 10 percent ethanol.

Even though automakers have warned against introducing higher levels of ethanol into gasoline, the Environmental Protection Agency (EPA) wants to approve E15 (gasoline that is 15 percent ethanol) for production. However, E15 could accelerate engine failure in the 95 percent of cars that aren’t certified to use it. Maybe worse, the small engines of boats, lawn mowers, weed eaters break down much more quickly with ethanol, even gasoline with just 10 percent ethanol, according to AAA. In turn, several car manufacturers have said their warranties won’t cover claims related to E15 use.

Another issue with the RFS is that as ethanol production remains essentially stagnant, the federal mandate continues to rise. A new report from the Energy Information Administration (EIA) finds that U.S. fuel ethanol production capacity was 13.9 billion gallons per year as of January 1, 2013, compared to 13.7 billion gallons per year at the same time in 2012. Even though the ethanol industry was capable of producing less than 14 billion gallons in 2012, the RFS required refiners to blend 15.2 billion gallons that year. And despite only slight production increases since last year, the RFS requires 16.5 billion gallons to be blended in 2013.

On top of harming engines that aren’t designed to use high amounts of ethanol, ethanol reduces the fuel efficiency of motor fuel. Ethanol contains 33 percent less energy per gallon than gasoline, which means as ethanol content in gasoline increases, fuel economy decreases. This trade-off might not be an issue if ethanol was cheaper than gasoline, but it is not. For example, AAA’s Daily Fuel Gauge report shows that E85 gasoline costs about 50 cents more than a regular gallon of gasoline when adjusted for the energy difference. On top of paying more per gallon, Americans will need more gallons to get where they’re going – spending more to get less.

As expected, mandating inefficient motor fuel that can harm engines comes at a price. A recent study found that by 2015 implementing the RFS will increase diesel costs by 300 percent, gasoline costs by 30 percent, and reduce take-home pay for American workers by $580 billion. The study warns of a “death spiral” in which increasing blending mandates depress gasoline sales, which leads to supply disruptions and makes compliance unattainable.

Some of the most vocal opponents of the RFS are livestock groups that depend on affordable corn and humanitarians who oppose using food for fuel while the Third World struggles to find sufficient food. Broad-based opposition to the RFS reflects a misguided policy that enriches ethanol producers at the expense of everyone else. Ultimately, Congress should eliminate all mandates and subsidies that distort the energy market. Repealing the RFS is a good place to start.

In the Pipeline: 5/22/13

We suspect foul play. The birds are fighting back. E&ENews (5/21/13) reports: “Wind turbine manufacturer Siemens AG confirmed that a 170-foot blade fell off a wind turbine at a power plant east of San Diego, causing the company to cease operations of the same type of turbine globally… Residents near the Ocotillo Wind power plant discovered the fallen blade Thursday morning.”

The birds are taking out the turbines. We’re taking down the ivory towers (metaphorically speaking, of course). Daily Caller(5/21/13) reports: “On his first day in office, President Obama promised to make his ‘administration the most open and transparent in history.’ Yet the recent flap over migratory bird deaths is just the latest example of the Obama administration’s open flouting of the values the president pledged to uphold. Taken together, the scandals expose an ideologically driven administration more concerned with protecting allies and punishing opponents than evenly enforcing the law.”

We are a little worried about the safety of these folks in Boulder tonight. We encourage you to send them back up to help stave off the pitch-fork-enviro-mob. Denver Business Journal (5/22/13) reports: “Boulder will be Ground Zero for the national fracking controversy Wednesday evening, when two films about the use of water, sand and chemicals to access oil and natural gas will be screened at the same time and less than 2 miles from each other.”

Let us make this simple. PacifiCorp thinks that things that are unreliable (like wind power) should pay a bit more than those things that are reliable (like coal or hydropower). Only among the leeches in the wind “industry” would such an idea be controversial. Maybe John Feehery, wind lobbyist, can help.Energy Daily (5//13) reports: “The American Wind Energy Association (AWEA), NextEra Energy and the Bonneville Power Administration (BPA) are among the groups telling FERC that PacifiCorp’s proposed charges for regulation reserve and frequency response services are unfair and unwarranted, with affected renewable generators standing to get socked with far higher charges than fossil-fueled and other power plants that can provide steady output. . . . PacifiCorp maintains its proposed rates are comparable to those charged by other utilities in the region, and are justified by the additional burdens it shoulders to assure adequate power reserves are in place to balance any deviations in power output from intermittent renewables.”

Some problems are big and complicated, like the RFS (thank you again, you know who you are). Some are small, but pressing and immediate (like this). We are waiting to see if the Senators are going to send a letter explaining how the Keystone Pipeline might help the situation as well. Senator Franken (5/21/13) reports: “Minnesotans are very frustrated by the sudden spike in gas prices and they want to know why it’s happening,” said Sen. Franken. “With prices well over $4 per gallon in Minnesota, this is taking a toll on families and businesses across the state. I am pushing the Department of Energy to prevent future skyrocketing gas prices and to provide better information to alleviate future pain at the pump.”

Maybe we can scoop up some new donors. We don’t like the Obama administration’s energy policies, either. The Hill (5/21/13) reports: “Billionaire climate activist Tom Steyer, who’s increasingly throwing his weight around in politics, said approving the Keystone XL oil sands pipeline would create political hurdles for President Obama’s second-term agenda and cost him the support of key donors… Steyer, a major Democratic fundraiser, told Grist magazine that Keystone opponents have leverage to exert over Obama even though he’s free of having to run for reelection.”

If you have time to read one article today, this is the one. The Nation(5/21/13) reports: “The Center for American Progress, Washington’s leading liberal think tank, has been a big backer of the Energy Department’s $25 billion loan guarantee program for renewable energy projects. CAP has specifically praised First Solar, a firm that received $3.73 billion under the program, and its Antelope Valley project in California… Though the think tank didn’t disclose it, First Solar belonged to CAP’s Business Alliance, a secret group of corporate donors, according to internal lists obtained by The Nation. Meanwhile, José Villarreal—a consultant at the power-house law and lobbying firm Akin Gump, who ‘provides strategic counseling on a range of legal and policy issues’ for corporations—was on First Solar’s board until April 2012 while also sitting on the board of CAP, where he remains a member, according to the group’s latest tax filing.”

In the Pipeline: 5/21/13

Guns don’t kill birds; turbines kill birds. IER (5/20/13) reports: “Besides receiving federal subsidies and other financial incentives, the wind industry is getting special treatment from the Obama Administration: wind farms are allowed to kill protected bird species. The Associated Press has found that the Obama Administration has never fined or prosecuted a wind farm for killing eagles and other protected birds, thus shielding the wind industry from liability. Further, the Obama Administration has kept the scope of the deaths secret. According to an estimate from the Wildlife Society Bulletin, U.S. wind farms kill more than 573,000 birds each year.”

Of course the automakers and United Auto Workers support these new regulations. They get a free license to raise prices on the little guy and pat themselves on the back for what more or less amounts to imaginary benefits. TreeHugger (5/20/13) reports: “The public overwhelmingly supports the proposed Tier 3 standards. According to a survey conducted by the American Lung Association, 62 percent of Americans surveyed support the EPA setting stricter standards and tightening limits on tailpipe emissions from new cars. Automakers and the United Auto Workers support them as well… Now is the time to add your voice to the growing chorus of citizens who are standing up for children and clean air — and standing up to Big Oil. It is crucial that the standards be finalized this year — failure to do so would result in losing at least an entire model year worth of benefits at a time when the climate crisis has become critical.”

If the previous Obama administration is any sort of clue, Sally will throw a few REI tents and sleeping bags at the exploration crew and take credit for their work later (oh and don’t forget your bear mace!).Politico (5/21/13) reports: “Alaskan officials are hoping to prod the federal government into measuring the amount of oil and gas beneath the Arctic National Wildlife Refuge and are offering state money as part of their plan to push the project forward… ‘Alaska is willing to help complete the work the federal government seems unwilling to do,’ Gov. Sean Parnell said via webcast from a Chamber of Commerce event Monday announcing the initiative… In a letter to Interior Secretary Sally Jewell, Parnell said he would seek up to $50 million in state funding for seismic testing and proposed a winter-based exploration plan to mitigate environmental impact. The hope is that the plan will not only spur Interior to act but will help the country figure out the best course for ANWR, he said.”

The enviros and their vacuous leaders in Congress are sowing the seeds of their ultimate demise by going down this road. No good can come from this for them. And there will be no sympathy. The Daily Caller(5/21/13) reports: “So, you may have a question for me,” Whitehouse said. “Why do you care? Why do you, Sheldon Whitehouse, Democrat of Rhode Island, care if we Republicans run off the climate cliff like a bunch of proverbial lemmings and disgrace ourselves? I’ll tell you why. We’re stuck in this together. We are stuck in this together. When cyclones tear up Oklahoma and hurricanes swamp Alabama and wildfires scorch Texas, you come to us, the rest of the country, for billions of dollars to recover. And the damage that your polluters and deniers are doing doesn’t just hit Oklahoma and Alabama and Texas. It hits Rhode Island with floods and storms. It hits Oregon with acidified seas, it hits Montana with dying forests. So, like it or not, we’re in this together.”

It looks like they’re digging holes just to fill them back up over in Britain. What’s great is you can create even more jobs if everyone digs with a spoon. Express (5/19/13) reports: “WIND FARM operators are being paid millions for “wasted” electricity under a complex system known as constraint payments.The money is paid out when turbines are spinning but the electricity they are generating is surplus to requirements… Freedom of Information documents reveal that since 2011 more than £26.5million has been paid out under the scheme.”

They say black is the new gr33n.

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In the Pipeline: 5/20/13

We’re not surprised, but that doesn’t make this any less unsettling. Washington Examiner (5/17/13) reports: “Two powerful congressional Republicans want to know more – a lot more – about why and how Environmental Protection Agency officials have for several years erected multiple obstacles to conservative think tanks, media outlets and non-profit activists filing Freedom of Information Act requests with the agency… ‘According to documents obtained by the Committees, EPA readily granted FOIA fee waivers for liberal environmental groups – effectively subsidizing them – while denying fee waivers and making the FOIA process more difficult for states and conservative groups,’ said Sen. David Vitter and Rep. Darrell Issa in a letter today to EPA’s acting administrator, Bob Perciasepe.”

As a refresher, the “environmental” movement is about control and monopoly of power, not about saving the environment. We also hope to see the RFS repealed and the environmental gains that would consequently follow. The American Interest (5/16/13) reports: “The environmental cost of shuttling these barrels back and forth across the globe makes this more than just an absurd story of misguided government policy. The fact that this program is effectively subsidizing needless voyages by high-emitting ships makes a mockery of biofuel’s dubious status as a “green” program… Fortunately, there are two bills wending their way through Congress at the moment, one to completely repeal the renewable fuels standard and the other to reform it. Both of these bills would fix this senseless trade circle. Let’s hope they pass, and soon.”

What does “post-carbon” mean? The people who thump their chests in the name of science sure seem to enjoy twisting words around. But oddly enough, the bad guys reveal their true goals with this green-speak, in that a “post-carbon” world is a world without you and me, my friend. We happen to think people are Earth’s greatest resource, so for now we’ll enjoy the molecular composition of carbon and all that it has to offer. The Globe and Mail(5/17/13) reports: “Canada and Alberta need to begin now to prepare for the post-carbon world – a world that will be largely powered by some combination of hydro, wind, solar, and biomass energy – all of which are or could be produced in abundance in Canada. More importantly, the post-carbon world requires that we make energy efficiency our number one priority, because only in that way will our overall demand for energy be small enough that it can be reliably met by renewable, but sustainable, energy sources.”

Three things. 1.) Coral Davenport is starting to see ghosts. 2.) Until Kevin McCarthy gets a new pollster (we know a good one), the GOP rank and file would be wise not to listen to their esteemed Whip on this issue. 3.) John Feehery is a shill for the wind industry. National Journal (5/19/13) reports: “Each January, when Congress gavels a new session to order, the party in charge rolls out a series of bills laying out its political agenda—and often they’re predictable variations on well-worn themes. So it was when House Republicans launched the year with a bill that demanded President Obama present a plan to wipe out the federal deficit, one that slashed pay for federal workers, and one that sought to increase renewable energy. (Record scratch.) Wait, what?”

You are probably going to hear a lot about the paper from Cook.  So you should probably be armed with some skepticism. JoNova(5/17/13) reports: “What does a study of 20 years of abstracts tell us about the global climate? Nothing. But it says quite a lot about the way government funding influences the scientific process. John Cook, a blogger who runs the site with the ambush title “SkepticalScience” (which unskeptically defends the mainstream position), has tried to revive the put-down and smear strategy against the thousands of scientists who disagree. The new paper confounds climate research with financial forces, is based on the wrong assumptions, uses fallacious reasoning, wasn’t independent, and confuses a consensus of climate scientists for a scientific consensus, not that a consensus proves anything anyway, if it existed. Given the monopolistic funding of climate science in the last 20 years, the results he finds are entirely predictable.”

Well, the good news is that at least this Secretary of State seems to understand that there are life and death issues.  Although his choice of those issues is ridiculous. Weekly Standard (5/14/13) reports: “Speaking today in Stockholm, Sweden, John Kerry called “climate change” a “life and death” issue. And the secretary of state apologized on behalf of the United States for not doing enough to fight climate change.”