News

HuffPo provides all the evidence for more domestic oil production, but then stops just short of admitting the benefits of affordable energy Huffington Post (5/20/11) reports: The price of oil eroded Americans’ spending power over the last several months, according to new post from the Commerce Department….As oil prices have shot up and gas prices at the pump have followed, consumers and businesses have been forced to pay more for fuel. The average household monthly motor fuel expenditure increased by more than 22 percent between October and March, the post by Commerce Department Chief Economist Mark Doms showed. Even though oil prices abruptly dropped earlier this month, crude has since pared some of its losses, and pump prices remain high, suggesting that fuel will continue to sap household finances… At this rate, the net amount of money the nation pays to other countries for oil is on track to reach about $3,000 per household in 2011, an increase of 25 percent from last year, the note said. This fuel trade deficit per household grew by two-thirds between October and March, and in the first quarter of the year, petroleum-related products made up nearly 60 percent of the total U.S. trade deficit, the note showed.

I almost feel sorry for Sen. McCaskill because she doesn’t understand her vote to make gas more expenseive will ignite the populist rage she is trying to channel Politico (5/20/11) reports: Sen. Claire McCaskill’s energy playbook for her 2012 reelection campaign is starting to sound a lot like a cut-and-paste job…On Tuesday, the Missouri Democrat led a futile Senate floor debate to repeal tax breaks from the five major oil companies. At the same time, her party’s main campaign arm issued a press release slamming “Big Oil Todd” — a reference to Todd Akin, the six-term Republican congressman who hours earlier formally declared his Senate candidacy against her… McCaskill used a similar line of attack when she first rode the populist wave to Washington in 2006. One of her most potent campaign ads slammed then-Sen. Jim Talent for voting to keep the oil industry’s subsidies alive despite what were then record profits….Environmentalists and Democrats made the same case last November in their unsuccessful bid to defeat Republican Roy Blunt, running “Big Oil Blunt” campaign commercials and even launching a spoof website…”It’s a page out of their playbook and it doesn’t matter,” Blunt, now the state’s junior senator, told POLITICO. “It didn’t matter if the oil companies had given you $2 million over the course of a long career, or $12,000, they still ran the same ad.”

Carry the one…EPA admits mistake on mercury proposal. Now, let’s admit our mistake and reign in the EPA New York Times (5/20/11) reports: After being taken to task by critics in the utility industry, U.S. EPA conceded yesterday that it made mathematical errors in newly proposed limits on mercury from coal-fired power plants… The Utility Air Regulatory Group, a coalition of power companies that often challenges new Clean Air Act rules, recently claimed that “egregious errors” by EPA led to estimates that the cleanest power plants are releasing 1,000 times less mercury than they actually are. The mercury limits are one of the key requirements of the proposed limits on toxic emissions from coal plants, which were proposed in March (Greenwire, March 16)…EPA did err when it calculated what the maximum achievable control technology (MACT) can achieve, but the mistakes aren’t as serious as was claimed, air chief Gina McCarthy said in a letter to the industry attorneys yesterday…Nudging the limit upward to correct the error would allow U.S. coal plants to release an extra 1,000 pounds of mercury per year — a small fraction of the 29 tons of mercury that the plants now release into the air. After the change, power plants will still need to trap 90 percent of the mercury that is naturally found in the coal they burn, the letter says.

Senator Richard Burr is asking for leadership on the energy debate; how’s this for some direction: lease more than 3% of OCS and more than 6% for onshore energy production New York Times (5/20/11) reports: As lawmakers weigh a range of options following the defeat in the Senate this week of highly partisan energy bills, many are looking to President Obama to help loosen political gridlock over energy policy or use his executive powers to spur new production… Votes this week on a measure from Sen. Robert Menendez (D-N.J.) to slash oil industry tax breaks and a proposal by Minority Leader Mitch McConnell (R-Ky.) to ramp up drilling and leasing failed to garner bipartisan support. Both bills were offered as the political parties seek an advantage on the vexing issue of skyrocketing gasoline prices…Now the question is, what comes next?…While some senators and House members are promising to keep pushing energy packages they say have a chance of passing, lawmakers of both parties said Obama needs to take a more active role in brokering a deal on energy policy…”It’s never been the Congress that provided the leadership. We’re two different political parties,” said Sen. Richard Burr (R-N.C.). “This is where we hash out the specifics. But we don’t have the leadership yet that says we have to get to this goal. I think when the president engages we’ll have an energy blueprint.”…Democratic Sen. Ron Wyden yesterday said that while he is hopeful lawmakers can also reach bipartisan agreements on energy bills, he’d like to see the president take unilateral steps as well.

If the West is dumb enough to mandate renewable energy the Chinese are smart enough to make it Wall Street Journal (5/20/11) reports: China will offer interest-rate subsidies to the renewable-energy and high-technology material sectors, Vice Minister of Finance Li Yong said Friday….Mr. Li said in a speech at a forum in Shanghai that the government will make comprehensive use of interest-rate subsidies as well implement other incentives to support new energy and new materials. He said it would do this as part of a rebalancing of the economy under the country’s 12th five-year plan, which extends through 2015…China, the world’s largest energy producer and user, has pledged to reduce pollution and cut the amount of carbon emissions per U.S. dollar of economic output by 40% to 45% by 2020 compared with 2005 levels….To that end, it aims to have 15% of its energy mix come from nonfossil fuels such as nuclear and renewable energy sources by 2020 from 8% at present…However the ambitious program has been criticized for poor planning as a significant part of wind-power generating capacity installed around the country has been left idle due to insufficient grid connection…China has been using subsidies to promote the use of wind and solar power as well as energy-efficient cars…But the use of subsidies has created friction with trading partners.

The UK didn’t meet their CO2 reduction target for 2010, even with the recession. So what’s their response? Double down New York Times (5/16/11) reports: Britain is poised to announce some of the world’s most ambitious goals for reducing greenhouse gas emissions — a striking example of a government committing to big environmental initiatives while also pursuing austerity measures… Chris Huhne, the secretary of state for energy and climate change, is expected to release a statement on Tuesday that the British government will set in law a goal to cut its greenhouse gas emissions about 50 percent by 2025…That reduction, based on 1990 levels, would be far deeper than the European Union’s goal of cutting emissions 20 percent by 2020, and it would mean that Britain would make faster emissions cuts than other similar size countries, including Germany. The goal could require households to spend on new energy-saving devices for the home. It could also revive stalled government support for large projects, like those that capture power from tides and that bury carbon dioxide emissions…A spokesman for the Department of Energy and Climate Change declined to comment before a formal announcement….Governments in Britain and North America have broadly retreated from far-reaching pledges since the financial crisis began two years ago.

We can’t tell if Reilly is grasping at the lime light or really cares about his job New York Times(5/17/11) reports: The Obama administration is pushing back against plans by its oil spill commission co-chairman to spread his message about offshore drilling reforms to Cuba, the panel leader said today… William Reilly, the co-chairman of the presidential panel that made a series of recommendations earlier this year to improve offshore drilling safety and regulation after the BP PLC oil spill in the Gulf of Mexico last summer, has already helped convinced Mexican drilling regulators to adopt U.S. regulatory structures…But he said he has had his “wrist slapped” by the Obama administration for his plans to discuss reform with Cuba, with which the United States has had no diplomatic relations since 1961…”I have been causing grief to the State Department,” Reilly, a former U.S. EPA chief under President George H.W. Bush, said during an event hosted by Resources for the Future in Washington, D.C…Cuba is developing plans to drill 16 oil and gas wells in waters 50 miles from Key West, Fla., using Spanish oil and gas giant Repsol YPF and Russian natural gas producer Gazprom.

The plan worked: Obama was able to talk a tough game knowing the Senate wouldn’t actively make gas prices higher by increasing taxes The Hill (5/17/11) reports: The White House is vowing a continued campaign to repeal billions of dollars worth of oil industry tax breaks after a Democratic bill to nix several incentives sputtered on the Senate floor Tuesday…White House Press Secretary Jay Carney, in a statement Tuesday night, called the 52-48 Senate vote that blocked the bill progress even though 60 supporters were needed to advance the measure….“The vote today – with support from over half the U.S. Senate – is an important step towards repealing these unwarranted subsidies for the oil and gas industry. The Administration will continue to pursue this important reform,” he said…Senate Democratic leadership is vowing to keep the issue alive in wider talks with Republicans and the White House on deficit reduction…Carney also took a shot at Republicans in his statement on the procedural vote, which saw two Republicans vote to advance the bill while three Democrats joined 45 Republicans in voting against it.

If you think Bromwich is losing it now, just wait until the Senate discovers he’s behind skyrocketing gas prices! The Hill (5/17/11) reports: Four Senate Democrats this week asked the Federal Trade Commission (FTC) to investigate whether U.S. oil refineries are purposefully cutting back capacity levels in order to keep gasoline prices high…Sens. Claire McCaskill (D-Mo.), Charles Schumer (D-N.Y.), Dick Durbin (D-Ill.) and Patty Murray (D-Wash.) cited press reports that this may be happening and told FTC Chairman Jon Leibowitz that this would be a “direct affront” to American consumers… “At a time when major refiners and oil companies are making record profits and American families continue to struggle with gasoline at record prices, the idea that refiners may be manipulating the market to keep prices artificially high is offensive,” they wrote…”It is incumbent upon the Commission to ensure that the American people are protected from this type of manipulation,” the letter continued. “Accordingly, we request that the Commission open a full investigation into these allegations of wrongdoing and to determine the impact this behavior, if confirmed, has on regional and national gasoline prices.”

Governor Mitch Daniels puts Indiana on the road to serfdom Renewable Energy World (5/11/11) reports: AWEA applauded Indiana Gov. Mitch Daniels for signing into law a voluntary Clean Energy Portfolio Standard (CPS), which sets a goal of 10 percent of the state’s electric generation to come from clean energy sources by 2025 and incentivizes utilities to participate in the CPS…“I applaud the Indiana Legislature and Governor Daniels for setting a course toward more affordable, homegrown Hoosier energy,” said Denise Bode, CEO of the American Wind Energy Association (AWEA). “In particular, I would like to thank the bill’s author, State Sen. Bev Gard, as well as Speaker of the House Brian Bosma for his guidance, Sen. Brandt Hershman, the Senate leadership, and Rep. David Frizzell, for supporting the economic development that this bill will foster in Indiana.”…The bill, SB 251, encourages investment in the state’s growing wind industry as well as other forms of lower-emission energy, including solar, nuclear, clean coal, and hydro. It reflects an amendment offered in the Indiana House by Frizzell (R-Indianapolis) that calls for at least 50 percent of the qualifying energy obtained by Indiana utilities participating in the CPS to come from within the state. The House passed the amended bill on a bipartisan vote of 62-34 on April 21, and the Senate passed the bill by a 31-19 bipartisan vote on April 26.

Fracking Lies — new study out reports that drinking water is safe in Marcellus Shale region Fuel Fix (5/16/11) reports: Several tests of western Pennsylvania river water prompted by fears of contamination from the state’s rapidly growing natural gas drilling industry didn’t turn up elevated or harmful levels of radioactivity or other pollutants not routinely monitored, a private water utility said Monday…The Pennsylvania American Water Co. said its tests showed that its water quality complies with federal and states standards…Water for one set of tests was drawn from Pennsylvania American’s intakes along the Allegheny, Clarion and Monongahela rivers and Two Lick Creek, which serve the cities of Pittsburgh, Clarion, Kittanning and Indiana. In addition, Pennsylvania American said it found the same result after testing treated drinking water at three plants in late March. Two of the plants serve Pittsburgh, while the third serves Clarion…State regulators have previously said that tests from samples they collected in November through February of water downriver from western Pennsylvania treatment plants raised no red flags for radioactivity. The treatment plants have been handling wastewater from drilling in the vast Marcellus Shale natural gas reservoir – a practice that is scheduled to end this week because of concerns over how it could affect drinking water.

Americans are demanding more energy and the U.S. Government is helping Brazil and India U.S. Department of Energy (5/16/11) reports: As part of the Partnership to Advance Clean Energy announced by President Obama and Prime Minister Singh of India last November, the Department of Energy has committed $25 million over the next five years to support the U.S.-India Joint Clean Energy Research and Development Center (JCERDC)…This first-of-a-kind effort is a key component of the U.S. and India’s commitment to improve energy access and promote low-carbon growth by facilitating joint research and development of clean energy technologies. Teams of scientists and engineers from the U.S. and India will initially focus on research in three priority areas – building energy efficiency, second-generation biofuels and solar energy…”Developing and investing in new technologies is a key component to meeting the goals of a clean energy future,” said Secretary of Energy Steven Chu. “This innovative approach to collaborative research is a testament to the special relationship shared by the two countries. By working with our partners in India and sharing a strong commitment to building a clean energy economy, we can get further, faster, than by working alone.”

This is almost poetic justice — solar farm can’t pay property taxes even with a 45 cent kilowatt hour tax payer subsidy Michigan Live (5/16/11) reports: Producing 225,592 kilowatt hours of electricity in its first year of operation, a solar farm in eastern Kalamazoo Coun­ty that went online in early 2010 has exceeded expectations…Also exceeding expecta­tions is the property tax, said Sam Field, a Kalamazoo attor­ney and one of the owners of Kalamazoo Solar…The $27,689 tax bill for the Charleston Township prop­erty means that the owners are losing money, even when being paid a premium price of 45 cents a kilowatt hour by Consumers Energy, he said…“That Michigan property tax burden works out to a cost of 12.3 cents per kilowatt hour,” Field said. “That amount is more than the retail value of the electricity.”…For comparison, Field re­searched the property tax for the Palisades Nuclear Plant in Covert Township along Lake Michigan. He found that the annual real and personal property taxes for Palisades are just over $12 million or .2 cents per kilowatt hour.

This article is for those who doubt speculators or the Federal Reserve play a role in oil markets Fuel Fix (5/16/11) reports: Attempts by the Federal Reserve Board and the Obama administration to head off an economic collapse in 2008 have resulted in a jump in gasoline pump prices of 56 cents per gallon, Rep. Kevin Brady, R-The Woodlands, said today…Brady, the top House Republican on the congressional Joint Economic Committee, released a study that looked at the economic costs to average Americans of the massive infusion of dollars into the U.S. economy by the Fed designed to stimulate the economy and stave of a national economic catastrophe as the U.S. financial system teetered on the brink of collapse…“Americans are paying a steep price at the pump as a result of the weak dollar policies pursued by this administration and the Federal Reserve”, said Brady…The study, entitled The Price of Oil and the Value of the Dollar, states that the value of the U.S. dollar has declined by 14 percent since the Fed began its program formally known as “quantitative easing” (also called “QE1″) in November of 2008, as the financial system neared meltdown.

A moment of clarity from the USA Today — it’s time to end all subsides, simplify the tax code, and lower tax rates for everyone USA Today (5/16/11) reports: Not surprisingly, the oil industry is grumbling. “A vindictive money grab,” is how the head of the American Petroleum Institute sums up the effort…In truth, it is all of those things, but mostly it is an example of the sort of political gamesmanship that substitutes for serious deficit reduction…The $20 billion is real money worth saving, but it is just 1/200th of the $4 trillion that is widely seen as the minimum that needs to be found over the next 10 years…Earlier this spring, Republicans indulged in their own game of Trivial Pursuit, cutting some minor agencies, such as public broadcasting, that weren’t contributing much to the deficit but which they didn’t much like. Now Democrats are saying, in effect, two can play at that game. They are trying to force Republicans to take the side of an industry about as popular as the flu. With gasoline at $4 a gallon, it’s an easy target…But the initiative is also government at its arbitrary worst, further complicating the tax code by singling out five companies — ExxonMobil, Chevron, ConocoPhillips, Shell and BP — for special taxes not paid by smaller energy concerns, or by similar companies in other industries.

Senator Bingaman plans on making sausage…err energy policy with Senator Menendez C-Span(5/15/11) reports: As gas prices reach $4 and higher in many parts of the country, Congress is debating several bills related to the oil industry and efforts to curb spending…Sen. Jeff Bingaman (D-NM) gives his thoughts on a bill sponsored by his colleague, Sen. Menendez (D-NJ), to repeal tax breaks and subsidies for large oil companies…Senate Majority Leader Harry Reid (D-NV) is currently in negotiations to bring the bill to the Senate floor for a vote. However, it’s met opposition from Republicans and some Democrats. Sens. Landrieu (D-LA), and Begich (D-AK), who represent energy-producing states, have come out against the bill…The House is also focused on energy legislation. This past week the Republican leadership passed three drilling-related bills which differ from the Senate agenda. The legislation aims to expedite approvals of oil drilling permits, reverse President Obama’s imposed moratorium on deepwater drilling in the Outer Continental Shelf and to set a national goal for oil and gas production.

Obama says not to worry, more oil production is on the way —I’m still worried New York Times(5/16/11) reports: President Obama, facing voter anger over high gasoline prices and complaints from Republicans and business leaders that his policies are restricting the development of domestic energy resources, announced Saturday that he was taking several steps to speed oil and gas drilling on public lands and waters… It was at least a partial concession to his critics at a time when consumers are paying near-record prices at the gas pump. The Republican-led House passed three bills in the last 10 days that would significantly expand and accelerate oil development in the United States, saying the administration was driving up gas prices and preventing job creation with antidrilling policies…Administration officials said the president’s announcement, which included plans for expanded drilling in Alaska and the prospect of new exploration off the Atlantic coast, was intended in part to answer those arguments, signal flexibility and demonstrate his commitment to reducing oil imports by increasing domestic production…But in fact the policies announced Saturday would not have an immediate effect on supply or prices, nor would they quickly open any new areas to drilling.

Here’s why I’m worried: the number of rigs actively exploring for new oil is down Fuel Fix(5/13/11) reports: The number of rigs actively exploring for oil and natural gas in the U.S. decreased by six this week to 1,830…Houston-based Baker Hughes Inc. reported Friday that 947 rigs were exploring for oil and 874 for gas. Nine were listed as miscellaneous. A year ago, the count was 1,506…Of the major oil- and gas-producing states, New Mexico gained two rigs while Alaska, North Dakota, Texas and West Virginia each gained one…Arkansas, Oklahoma and Pennsylvania each lost two rigs and Louisiana lost one. California, Colorado and Wyoming were unchanged…The rig count peaked at 4,530 in 1981, the height of the oil boom. The record low of 488 was in 1999.

I’m not the only one worried — Rep. Upton and Rep. Whitfield are heading down to the Gulf The Hill (5/13/11) reports:  The House Energy and Commerce Committee’s GOP leadership will visit the Gulf of Mexico next week to in a trip aimed at making the case for expanded offshore oil-and-gas development…Chairman Fred Upton (R-Mich.) and Rep. Ed Whitfield (R-Ky.) — his top lieutenant on energy — will be in Louisiana Wednesday through Friday on a tour led by Rep. Steve Scalise (R-La.)…A Scalise aide said the trip will include meetings with energy industry officials Wednesday, a day-long visit Thursday to a Chevron Corp. deepwater drilling platform, and a Friday boat tour of the Louisiana coast…“This is a way to get members down so they can see Louisiana because it is truly America’s energy coast,” said Scalise spokesman Stephen Bell. He said the tour of the Chevron facility is aimed at reviewing the infrastructure and technology that companies are using to drill with safeguards in deep waters.

We might need to dam up enviros’ tears with this news — hydro power works and developing countries can’t get enough New York Times (5/15/11) reports: Hydropower, a renewable energy source often overshadowed by excitement about wind and solar power, is enjoying something of a global resurgence…Huge, controversial dam projects have recently made headlines in Brazil, Chile and Laos. Many developing countries, hungry for energy to supply their growing economies over the long term, are determined to keep building more modest-sized dams too…Record amounts of hydropower capacity came online in 2008 and 2009, the most recent years for which data are available, according to Richard Taylor, executive director of the International Hydropower Association in London…“There has been, over the last decade, a dramatic increase in the deployment of new hydropower capacity,” Mr. Taylor said.

Only numbers I trust coming out of DC are the mile markers on I-95 — new report says increasing tax will not affect gas prices New York Times (5/11/11) reports: Senate Democrats have a new weapon in their escalating oil and gasoline war with Republicans, though some party members are none too happy with their leadership’s offensive against the major oil companies…Trying to counter Republican claims that ending some tax breaks for the five largest oil companies would ultimately hurt consumers, Democrats are now armed with a Congressional Research Service report that predicts a negligible impact on the price of gasoline if the changes are carried out…The document, sent to Senator Harry Reid, the Nevada Democrat and majority leader, said that with the cost of oil over $100 per barrel, “prices are well in excess of costs, and a small increase in taxes would be less likely to reduce oil output, and hence increase petroleum product (gasoline) prices.”…In a review of the five specific tax changes being advocated by Democrats, the research service also said that tightening the tax code would make a very small dent in the huge revenues of the industry and that the price of oil hinged on many other, larger considerations.

The oil tax increase was summed up by Sen. Landrieu in a word — “laughable” The Hill Sen. Mary Landrieu (D-La.) called the Democratic plan to scrap tax breaks for the big five oil producers to pay down the deficit “laughable” and derided states that complain about gas prices while producing no energy themselves…“I see what our states produce and these people produce nothing, or virtually nothing — and you ask me can I vote for a bill like this?” asked Landrieu from Senate the floor on Wednesday, comparing the major energy-producing states with non-energy producing states…“No,” said Landrieu, answering her own question. “Not only can I not vote for it. It’s laughable.”…The Democrats’ plan, which may come to the floor this week, was authored by Sen. Robert Menendez (D-N.J.). It would require oil companies to pay taxes for drilling on federal land and remove tax deductions for companies that drill in foreign countries. In all, it would raise about $20 billion, which would be directed toward deficit reduction….Louisiana is one of the highest energy-producing states in the nation and Landrieu argued that the Gulf’s oil industry would be adversely affected by the scrapping of the tax incentives.

Hallelujah! A permit for deep water exploration has been approved Wall Street Journal (5/11/11) reports: The U.S. approved a Royal Dutch Shell PLC plan to drill for oil in five locations deep under the Gulf of Mexico…The Shell proposal is the second deep-water exploration plan approved in the Gulf since the U.S. government lifted a moratorium on deep-water drilling in October. The moratorium was imposed following the BP PLC oil spill in April 2010. At least six other deep-water plans are pending for the Gulf…Companies apply for permits to drill after receiving approval for an exploration plan…The Shell plan approved Wednesday, for the so-called Appomattox discovery, includes five wells in about 7,200 feet of water roughly 72 miles, or 116 kilometers, off the Louisiana coast. Shell runs the Appomattox venture and holds an 80% stake. Nexen Inc. holds the remaining 20%…U.S. regulators assessed the plan and determined it met new safety standards instituted after the Gulf oil spill last year. The drilling “would not have a significant impact on the quality of the human environment,” according to a press release from the Bureau of Ocean Energy Management, Regulation, and Enforcement…Marvin Odum, president of Shell’s U.S. subsidiary, said the company was “pleased” with the news.

Get ‘er done! House passes a bill that will force Dept. of Interior to act on permit applications within 60 days New York Times (5/11/11) reports: Maneuvering on oil drilling, gas prices and industry profits intensified on Capitol Hill on Wednesday. House Republicans pushed through a bill to accelerate offshore oil and gas exploration as Democrats vowed action on measures to rescind billions of dollars in tax breaks for major oil and gas companies… The drilling bill was approved 263 to 163, with 28 Democrats joining unanimous Republicans, after the majority swatted down several Democratic amendments. The bill would force the Interior Department to act within 60 days on all applications for offshore drilling permits. The House then turned to a second Republican-sponsored bill that would open much of the Atlantic, Pacific and Arctic shorelines to new oil and gas exploration. A vote on that measure is expected Thursday…The Obama administration vigorously opposed both measures, but stopped short of threatening to veto them — in part because it is highly unlikely they will win enough votes in the Senate to overcome a filibuster…Meanwhile, House and Senate Democrats continued their push to repeal a variety of tax breaks enjoyed by the oil industry, some of them a century old and others that apply to all companies, not just petroleum concerns.

My favorite part?  “Four Republicans crossed the aisle to vote for the earlier motion to remain in the program.”  Because what is the point of owning a plantation if you don’t have house slaves? E&E News (5/11/11) reports: The New Hampshire Senate voted today to keep the state in the Regional Greenhouse Gas Initiative, a cap-and-trade program that many member states are trying to align with U.S. EPA’s new standards for carbon dioxide from the power sector…Earlier this year, the New Hampshire House of Representatives passed a bill that would withdraw the state from the program, which includes all of New England as well as New York, New Jersey, Delaware and Maryland. But the bill had drawn a veto threat from Gov. John Lynch (D), and the Senate lacked the votes to overcome it…An amendment approved today would tweak rather than scrap the program, though it would allow New Hampshire to pull out if another state with at least 10 percent of the RGGI program’s total power generation does it first. Introduced by Senate Majority Leader Jeb Bradley (R), it would also shift money to a fund that offers efficiency incentives and would provide rebates to ratepayers for all but the first $1 that is paid for each carbon credit…Though a motion to withdraw from RGGI had 15 supporters in the Senate today, it fell one vote shy of the number needed to rebuff a veto.

What’s $90 million between friends? Uncle Sam provides guarantee for Colorado solar project Businessweek (5/11/11) reports: Energy Department officials say a North Carolina energy producer has been offered a $90.6 million conditional commitment loan guarantee to help construct a solar generation project in southern Colorado…Department officials said Tuesday the loan will support Charlotte-based Cogentrix Energy LLC in developing the Alamosa Solar Generating Project. The company estimates the project will generate about 85 construction and operations jobs…U.S. Sen. Mark Udall of Colorado says the plant will be one of the largest and most innovative solar power plants in the country. The facility will create about 75,000 megawatt hours of renewable energy per year, enough for more than 6,500 homes

This is what happens when you take too many right hooks to the head, you start thinking deductions are subsidies The Hill (5/9/11) reports: Senate Majority Leader Harry Reid (D-Nev.) signaled Monday that the Senate would soon turn to a controversial piece of legislation to do away with billions of dollars in tax breaks for large oil producers and increase breaks for clean-energy producers…As Reid welcomed Sen. Dean Heller (R-Nev.) to the Senate Monday afternoon. he noted the upper chamber would soon have opportunities to “make tough choices” and referred to the upcoming energy legislation…”We’ll continue our conversation about how to save taxpayer money and lower our nation’s deficit,” Reid said….”We have to recognize that we cannot do either so long as we keep giving away money to oil companies who clearly don’t need taxpayer handouts,” Reid said. “As gas prices and oil company profits keep rising, each senator will soon have the opportunity to stand with millionaires or with the middle class.”

Solar energy rent seekers scramble to find new markets as Europe sobers up from their renewable binge Wall Street Journal (5/9/11) reports: First Solar is trying to gain access to China’s solar sector, as it and other producers are facing uncertainty over an expected fall-off in business in Europe, the world’s leading solar market…”[China Power International] has a tremendous advantage and strength in operating in China and we have a tremendous advantage and strength in technology but also in building utility systems,” said Kevin Berkemeyer, First Solar’s China representative. “So we really want to bring those two together.”..Under the agreement, the companies initially will explore opportunities within China, and First Solar will assist China Power to find investment opportunities in the U.S. and elsewhere, leveraging the Chinese company’s 2 gigawatts of projects planned for the domestic market and First Solar’s expertise and its 2.4-gigawatt business pipeline in North America…”We are very pleased to build an extensive and in-depth relationship with First Solar, a global leader in solar photovoltaic technology,” said Li Xiaolin, China Power International chairwoman. “This cooperation leverages our advantages in the domestic solar-power industry, and helps First Solar further expand its business presence in China.”

The Obama Administration shuts down American energy and conservatives are blamed for high gas prices Politico (5/9/11) reports: With oil companies such as ExxonMobil announcing a jump in profits of nearly 70 percent while gas prices are hovering around $4 a gallon, Republicans are trying to avoid any impression of defensiveness over their strong support for Big Oil. Most are not apologetic that they subsidize these corporations with their vast array of workers. But they have reason to be nervous…Many are now saying they do not support subsidies, while others assert that these help keep gas prices low and create U.S. jobs. But Republicans have reason to be nervous…This is a strong issue for Democrats. Voters are furious with oil companies, according to our polling, and overwhelmingly support ending subsidies. These subsidies are a key piece of a larger debate about the parties’ priorities, as we argued before. It can be viewed as part of the Republicans’ pattern of support for a budget that cuts taxes for corporations and the rich while ending Medicare as we know it and raising taxes on the middle class.

And again, I may become tall and good looking.  Why does this entire industry exist only in the subjunctive? E&E News (5/9/11) reports: The world could be drawing almost 80 percent of its energy from renewable sources by 2050, the Intergovernmental Panel on Climate Change said in a report released today…Taking a broad view of renewable power — including not only wind, solar and geothermal power but also wood scavenged in the developing world — the report says renewables could constitute about 77 percent of all power generation, measured in exajoules per year, up from 13 percent…The 77 percent by 2050 estimate represents the report’s most optimistic scenario, assuming a host of policy changes by governments to put a stiff price on emissions of greenhouse gases and generous support for renewable generation…On the low end, the report says renewables might constitute just 15 percent of energy generation by 2050…”While the report concludes that the proportion of renewable energy will likely increase even without enabling policies, past experience has shown that the largest increases come with concerted policy efforts,” the report’s authors say in a release.

A man this eloquent should be President Las Vegas Review (5/8/11) reports: Our legislators, in all their perspicacity and foresight, have said, “Let there be renewable energy,” and gosh darn it, there will be renewable energy whether we need it or not and no matter the cost to the citizens of Nevada…It’s good for us, and we’re going to swallow a full dose of it and turn “green.”..Late last month the Public Utilities Commission of Nevada issued a draft order that concluded “renewable energy has had a minimal impact on residential rates and has not been the cause of high rates in Nevada.” Of course, as NV Energy pointed out in testimony, the data the PUC was using was historic — for only the past five years, as renewables or green energy such as solar, wind and geothermal were just coming onto the power grid. Various calculations placed the cost per month of renewables in 2009 for Southern Nevada ratepayers at somewhere between $1.86 and $2.30, which is up from 29 or 30 cents in 2005.

My gut tells me that locally grown organic tofu wasn’t served at his son’s wedding Washington Post (5/4/11) reports: Prince William’s dad — also known as Charles, the future king of England — knows a bit about taking verbal punches…Promoting sustainable farming and green living has been one of his life’s missions. But because he’s a royal with easy access to carbon-hogging jets, a handful of estates, flotillas of attendants and all sorts of resource-gobbling goodies, his oft-praised crusade tends to get lampooned with some frequency…“I have been venturing into extremely dangerous territory by speaking about the future of food,” the Prince of Wales told an audience Wednesday at Georgetown University, evoking an image that could just as easily apply to his efforts to promote reducing dependence on fossil fuels. “I have the scars to prove it!”

Gas consumption is down, but the grocery truck still needs to get to the store — buckle up for high gas prices Business Week (5/4/11) reports: Gasoline demand continues to fall in the U.S. as pump prices keep climbing…Reports from government and industry groups show motorists have been cutting back on the amount of gas they put into their tanks for more than a month. That could signal trouble for the economy since Americans typically cut spending on other activities before they do less driving…Since January, the national average for a gallon of regular unleaded has risen 91 cents, or 30 percent, to $3.98. The main reason is a 20 percent gain in the price of oil this year. Gas rose more than 30 cents in April alone, as refinery problems led to an unusually big drop in supplies…Gas is now above $4 per gallon in 13 states and Washington D.C.

My favorite part?  How almost all of the completed reviews were for categorical exclusions.  You know, the process the Obama Administration went out of its way to shut down in offshore permits E&E News (5/4/11) reports: Federal agencies continue to complete timely environmental reviews for stimulus-funded projects, filing more than 99 percent of the required National Environmental Policy Act reviews, according to the White House…The White House Council on Environmental Quality submitted its ninth report to Congress today on agencies’ compliance with NEPA, reporting that federal agencies had completed 190,000 of 190,694 required reviews…Agencies are required to conduct NEPA reviews for most of their decisions and actions, using the process to reveal any potential environmental impacts. Some reviews are more time-consuming than others. The vast majority of projects only require a “categorical exclusion” that indicates no environmental concerns; others must go through a thorough analysis with public comment.

High profile Brit enviro admits reality–the problem isn’t too little fossil fuels, but that we have too much… The Guardian (5/5/11) reports: You think you’re discussing technologies, and you quickly discover that you’re discussing belief systems. The battle among environmentalists over how or whether our future energy is supplied is a cipher for something much bigger: who we are, who we want to be, how we want society to evolve. Beside these concerns, technical matters – parts per million, costs per megawatt hour, cancers per sievert – carry little weight. We choose our technology – or absence of technology – according to a set of deep beliefs: beliefs that in some cases remain unexamined…The case against abandoning nuclear power, for example, is a simple one: it will be replaced either by fossil fuels or by renewables that would otherwise have replaced fossil fuels. In either circumstance, greenhouse gases, other forms of destruction and human deaths and injuries all rise…The case against reducing electricity supplies is just as clear. For example, the Zero Carbon Britain report published by the Centre for Alternative Technology urges a 55% cut in overall energy demand by 2030 – a goal I strongly support. It also envisages a near-doubling of electricity production. The reason is that the most viable means of decarbonising both transport and heating is to replace the fuels they use with low-carbon electricity. Cut the electricity supply and we’re stuck with oil and gas. If we close down nuclear plants, we must accept an even greater expansion of renewables than currently proposed. Given the tremendous public resistance to even a modest increase in windfarms and new power lines, that’s going to be tough.

Remember all those liars who said the new GHG regs would be no big deal? E&E News (5/4/11) reports: Two environmental groups have challenged the air pollution permit for a $750 million iron plant in southwestern Louisiana, which is the first project that was approved under the greenhouse gas regulations that were implemented by U.S. EPA in January…The petition, which was filed yesterday by the Sierra Club and the Louisiana Environmental Action Network, asks EPA to throw the brakes on a $3.4 billion complex being developed in southeastern Louisiana by Charlotte, N.C.-based Nucor Corp…The groups argue that when the Louisiana Department of Environmental Quality signed off on a final permit for the direct reduced iron (DRI) plant in late January, it was required to combine the project with a pig iron plant that got approval from state regulators last year. Their petition also claims that the amount of greenhouse gases the plant would be allowed to release is “considerably higher” than it should be…Joanne Spalding, an attorney at the Sierra Club, said Nucor appears to have rushed the pig iron facility through the permitting process to avoid subjecting the higher-emitting plant to the new climate regulations. Though the permit could set a precedent because it is one of the first ones reviewed under the new climate regulations, the Sierra Club would have challenged the project anyway, she said.

This is very good news.  But the people who hate people (you know who we mean) are going to spin it as terrible news E&E News (5/3/11) reports: The world’s population will hit 7 billion this year and is expected to reach 10 billion over the next 90 years in a moderate scenario, U.N. demographers said today…Revising projected population growth rates for 2010, the United Nations’ Department of Economic and Social Affairs’ Population Division said the 7 billion milestone will likely be reached in October…The division’s long-term estimates assume that nations with high population growth rates will achieve lower fertility levels in coming decades, a phenomenon seen as the nations’ economies develop. If fertility rates hold steady, the world’s population could more than triple by 2100, U.N. officials warn…”If we assume that fertility does not decline … we would have a world population of almost 27 billion people by 2100,” researcher Gerhard Heilig said. “So this gives you a very important message: The topic of world population growth is not over yet.”…Population Division chief Hania Zlotnik said the world went from 5 billion to 6.9 billion “in record time” but has witnessed a steady decline in fertility rates through that period, with some of the most advanced nations having such low fertility that they will shrink over coming decades.

The military is entering the energy conversation, but they never ask these fundamental questions: compared to what and at what cost? New York Times (5/3/11) reports: So listen for a moment to two military strategists, working at the highest level of government, as they turn to the subject of leaky air-conditioners in government buildings in New York. “Poorly fitted air-conditioners cost New York City 130 to 180 million dollars a year in extra energy consumption,” one of the strategists, Capt. Wayne Porter of the Navy, said Tuesday. “They generate 370,525 extra tons of carbon dioxide.”…Suppose, he says, you fixed them. And then you got the 40 states that waste the most electricity to match the 10 most efficient. The likely benefits are no surprise — less foreign oil, cost savings, job creation, decreased pollution…Now follow that thread to “A National Strategic Narrative,” a paper written by Captain Porter and Col. Mark Mykleby of the Marines, which calls on the United States to see that it cannot continue to engage the world primarily with military force, but must do so as a nation powered by the strength of its educational system, social policies, international development and diplomacy, and its commitment to sustainable practices in energy and agriculture…“We must recognize that security means more than defense,” they write. After ending the 20th century as the world’s most powerful country, “we failed to recognize that dominance, like fossil fuel, is not a sustainable form of energy.”

Greenies dreams come true — man swaps diesel for ox power on his farm because of high-energy costs New York Times (5/4/5) reports: ON a sunny Sunday just before the vernal equinox, Rich Ciotola set out to clear a pasture strewn with fallen wood. The just-thawed field was spongy, with grass sprouting under tangled branches. Late March and early April are farm-prep time here in the Berkshires, time to gear up for the growing season. But while many farms were oiling and gassing up tractors, Mr. Ciotola was setting out to prepare a pasture using a tool so old it seems almost revolutionary: a team of oxen…Standing just inside the paddock at Moon in the Pond Farm, where he works, he put a rope around Lucas and Larson, his pair of Brown Swiss steer. He led them to the 20-pound maple yoke he had bought secondhand from another ox farmer, hoisted it over their necks and led them trundling through the fence so they could begin hauling fallen logs.

The Grand Plan: Under President Obama’s direction, energy prices have ‘necessarily skyrocketed’ and now consumers must shift towards smaller cars Fuel Fix (5/4/11) reports: The nation’s reviving economy and near-record gasoline prices sent Americans to showrooms to buy fuel-efficient vehicles in April, giving automakers’ sales a boost…General Motors Co.’s sales rose 26 percent in April compared with the same month a year ago. Sales of 232,538 vehicles were led by its fuel-sipping Chevrolet Cruze, which enjoyed retail sales 180 percent higher than the Chevrolet Cobalt it replaced…Ford Motor Co. logged a 13 percent increase in April, selling 189,778 units, aided by sales of its new Focus and Fiesta cars…Toyota Motor Co. posted the smallest gain of major automakers, with sales rising 1.3 percent on sales of 159,540 vehicles. April marked the first full month for sales since the March 11 earthquake and tsunami hit Japan and damaged manufacturing plants and suppliers’ factories.

What’s in a name? Greenies are shocked to learn that rare earth metals are rare and they are going to become much rarer with one million electric vehicles on the road New York Times(5/2/11) reports: Rare earth prices are reaching rarefied heights.World prices have doubled in the last four months for rare earths — metallic elements needed for many of the most sophisticated civilian and military technologies, whether smartphones or smart bombs… Toyota has been raising prices for the Prius, but has cited demand for the car and economic conditions. While acknowledging that rising prices for raw materials in general have affected the company’s overall financial results, Toyota has declined to provide a breakdown of the role of rare earths…And this year’s increases come atop price gains of as much as fourfold during 2010…The reason is basic economics: demand continues to outstrip efforts to expand supplies and break China’s chokehold on the market…Neodymium, a rare earth necessary for a range of products including headphones and hybrid electric cars, now fetches more than $283 a kilogram ($129 a pound) on the spot market. A year ago it sold for about $42 a kilogram ($19 a pound)…Samarium, crucial to the manufacture of missiles, has climbed to more than $146 a kilogram, up from $18.50 a year earlier…One exception is the Toyota Prius hybrid car, whose manufacture uses a kilogram of neodymium.

I wonder if Senator Levin realizes that gasoline fuels the cars that his state makes? The Hill(5/3/11) reports: A senior Senate Democrat who has pushed to repeal oil industry tax breaks believes the success of renewed efforts to strip the incentives rests on how much muscle the White House puts behind them…Sen. Carl Levin (D-Mich.) sponsored the most recent plan to come up for a Senate vote – an amendment that failed 44-54 in early February. But Democrats plan to take another shot in coming weeks, even though they face an uphill battle…“It depends on whether the president really weighs in heavily. At least it depends in part on it,” Levin said in the Capitol Monday when asked whether there will be enough support to pass a repeal. He noted that President Obama favors ending the incentives…Obama and Senate Democrats who favor stripping the incentives have pounced on high gasoline prices and high profits reported by companies including Exxon and Shell to call for another vote – and try to politically tether Republicans to oil companies…Senate Majority Leader Harry Reid (D-Nev.) on Monday named the issue among his priority items for the upcoming several weeks before the Memorial Day recess.

Energy states fall back on the ‘safety in numbers’ adage by forming a coalition to lobby Congress for offshore permits Houston Chronicle (5/2/11) reports: Governors from Alaska and states bordering the Gulf of Mexico are reaching out to their counterparts along the West and East Coast today in a bid to get them more involved in decisions about energy production offshore…The push for a new Outer Continental Shelf Governors Coalition is led by four governors who know a little something about oil and gas production offshore: Rick Perry of Texas, Bobby Jindal of Louisiana, Haley Barbour of Mississippi and Sean Parnell of Alaska…In an invitation to other coastal state governors, the foursome said they hoped the coalition would “foster an appropriate dialogue between the coastal states and the administration” about offshore drilling. The group would give the governors a vehicle to lobby for expanded drilling offshore…“All federal decisions regarding exploration and production must be made in consultation with affected states,” the four governors said. “In recent months, however, the federal government has taken sweeping actions regarding offshore oil

Good night and good luck: Germany swaps out nuclear for wind energy UPI (5/2/11) reports: German Chancellor Angela Merkel Monday inaugurated Germany’s first commercial offshore wind farm…Wearing a shiny blue blazer, Merkel, flanked by a state senator and the head of German utility EnBW, pushed a button to officially launch Baltic 1, a 50-megawatt wind farm of 21 Siemens turbines that produce power for around 50,000 households…Located around 10 miles north of the Darss Peninsula in the Baltic Sea, the farm is operated by EnBW and is to be the first of many commercial wind farms off the German coastlines…”We’re in uncharted territory with the offshore technology, so let us learn together,” Merkel, who had flown over the farm in a helicopter, was quoted as saying by her spokesman Steffen Seibert…The head of the renewable energy unit at German technology giant Siemens, Rene Umlauft, called Baltic 1 a major milestone for Germany’s offshore wind power generation.

Odd article in Forbes this morning where the author needs reminding that money does not belong to the U.S. Treasury, but to the people Forbes (5/3/11) reports: Although the president hopes to eliminate eight specific tax breaks–which cost the Treasury $43.6 billion over 10 years–only three, accounting for $31.9 billion of that total, are particularly important. Conservatives have no business defending any of them…The largest tax break at issue is a tax credit passed in 2005, which is available to all U.S. manufacturers. Oil and gas companies qualify for that credit, so they will likely deduct somewhere in the neighborhood of $18.3 billion from their tax bill over the next 10 years. Note that this isn’t really an “oil subsidy”; it’s a manufacturing subsidy that oil and gas companies–along with many other companies–enjoy… ast week President Barack Obama responded to rising public anger over soaring gasoline prices by banging the drums for the elimination of various tax breaks enjoyed by the oil and gas industry. Although House Speaker John Boehner, R-Ohio, initially suggested that he might be open to President Obama’s proposal, the House GOP leadership chose to answer the president’s weekly radio address–which advocated elimination of those tax breaks–with freshman Tea Party Congressman James Lankford, R-Okla., who charged that the plan was about “hiking taxes by billions of dollars.”

Shell Oil Company could fuel 25 million cars for 35 years by drilling in the Arctic, but big green and big government have other plans New York Times (5/1/11) reports: Shell Oil will present an ambitious proposal to the federal government this week, seeking permission to drill up to 10 exploratory oil wells beneath Alaska’s frigid Arctic waters… The forbidding ice-clogged region is believed to hold vast reserves of oil, potentially enough to fuel 25 million cars for 35 years. And with production in Alaska’s North Slope in steep decline, the oil industry is eager to tap new offshore wells…Shell has led the way, working for five years to convince regulators, environmentalists, Native Alaskans and several courts that it could manage the process safely, protect polar bears and other wildlife, safeguard air quality for residents and respond quickly to any spill in the region. But BP’s Deepwater Horizon disaster a year ago put a chill on new offshore drilling…Shell’s renewed application will pose a test for President Obama, who promised to put safety first after the BP spill. But he has also reiterated his support for offshore drilling amid voter worries about rising gasoline prices.

Lawyer Up: Western Energy Alliance files suit against the Department of Interior for being derelict in their responsibilities with regards to oil and gas permits. Read the brief here.

The plan we can all get behind: Obama wants to emulate Spain’s green jobs program. We are almost half way there — Spain announces 21% unemployment CNN (4/29/11) reports: Spain’s unemployment rate rose nearly a point to 21.29%, with 4.9 million jobless for the first quarter of 2011, the government reported Friday, as the prolonged economic crisis continues to squeeze the nation…Some analysts had predicted the number of jobless might surpass 5 million. But while that didn’t happen, the latest statistics were another blow to the economy and to the embattled socialist government…The numbers for the fourth quarter of 2010 — 20.33% unemployment and almost 4.7 million jobless — already represented the highest joblessness rate in 13 years…The latest numbers, for the first quarter of this year, added more somber news. The number of unemployed increased by 213,000, pushing the overall number to 4.9 million…All major sectors — industry, construction, services and agriculture — shed jobs during the quarter. The number of Spanish households in which no adult had a job increased by 58,000, to a new total of 1.38 million, the government said…Earlier this month, embattled Socialist Prime Minister Jose Luis Rodriguez Zapatero announced he would not seek a third term. Elections are due by March 2012.

It’s the ethanol, stupid. CEO of major pork producer explains in simple terms that ethanol is making food more expensive Wall Street Journal (4/30/11) reports: Mr. Pope is the chief executive officer of Smithfield Foods Inc., the world’s largest pork processor and hog producer by volume. He doesn’t mince words when it comes to rapidly rising food prices. The 56-year-old accountant by training has been in the business for more than three decades, and he warns that the higher costs may be here to stay…Courtesy of? “I’m not going to say, ‘a political policy,'” he tells me. (His senior vice president, a lawyer by training, sits close by, ready to “kick his leg” if his garrulous boss speaks too plainly.) But politics indeed plays a large role, as Congress subsidizes favorite industries and the Federal Reserve pursues an expansive monetary policy… What triggered the upswing? In part: ethanol. President George W. Bush “came forward with—what do you call?—the edict that we were going to mandate 36 billion gallons of alternative fuels” by 2022, of which corn-based ethanol is “a substantial part.” Companies that blend ethanol into fuel get a $5 billion annual tax credit, and there’s a tariff to keep foreign producers out of the U.S. market. Now 40% of the corn crop is “directed to ethanol, which equals the amount that’s going into livestock food,” Mr. Pope calculates.

Fool me once, shame on you. Fool me twice, shame on me. Fool me with wind energy and I must be out of my mind Telegraph (4/30/11) reports: The payments, worth up to 20 times the value of the power they would have produced, raises serious concerns about such subsidies, which are paid for by the customer…The six Scottish wind farms were asked to stop producing electricity on a particularly windy night last month as the National Grid was overloaded…Their transition cables do not have the capacity to transfer the power to England and so they were switched off and the operators received compensation. One operator received £312,000, while another benefited by £263,000…The payments were discovered by the Renewable Energy Foundation, a green think tank, which accused the Government of building too many wind farms in northern Britain.

There’s an app for that — Al Gore launches new climate app for the iphone and ipad Time (5/1/1) reports: No, Al Gore did not invent the Internet, but the former Vice President and Nobel Peace Prize winner has always has a hand in high-tech, even as he warned the world about global warming. Those two interests are intersecting with the release of a new iPad, iPhone and iPod Touch app version of his recent climate and energy book Our Choice. The app is one of the first truly multimedia e-books, with interactive graphics, video, photos with geolocation and narration by Gore himself. Gore sat down with TIME’s Bryan Walsh in the New York offices of Gore’s firm Generation Investment to talk about the Our Choice app, the state of the climate movement and post-truth politics…Q: Does the app get you a new audience for the book?..A: Yes it does. We live in a multi-platform world. I think that the app experience is a magical one that will give it a lot of velocity as a media form because it combines books, movies, audio, animation and interactive features. There is nothing between you and the content, and there is no computer hurdle to clear. You just touch it with your finger, blow on it and manipulate it. It’s very intuitive.