News

Land Men: Senate EPW DemsUnveil Ambitious Agenda for Lame Duck Session – Mostly Involving ForcedAcquisition of Millions of Acres of Currently State and Private Land. E&E News(11/19, subs. req’d) reports, “Lawmakers are working to bundle a slew ofwaterways, public lands and wildlife bills into a monumental natural resourcespackage that could attract enough bipartisan support to pass before Congressends next month. Success is far from assured, aides say, given the lame-ducksession’s already-crowded agenda. Staffers and environmental lobbyists areworking down a list of possible measures, reaching out to Senate offices andcounting votes to determine which individual bills could attract the supportneeded to pass the potentially landmark package. "We’d love to try to doit," said Sen. Barbara Boxer, the California Democrat who leads the SenateEnvironment and Public Works Committee, regarding the water, lands and wildlifepackage in the works. Boxer declined to speculate on the chances of such a billpassing both chambers before the clock runs out in December, warning that"one person can hold it up." Bills under consideration for theend-of-year buzzer shot include water and wildlife measures out of Boxer’scommittee that would protect the Great Lakes, Chesapeake Bay, Puget Sound, LongIsland Sound, Gulf of Mexico and San Francisco Bay. Aides are trying to combinethose bills with others out of the Senate Energy and Natural ResourcesCommittee that would protect more than 2 million acres and create new nationalparks, monuments, wilderness areas and wildlife sanctuaries.

Suggested Compromise onJurisdictional Battle: E&C Can Keep Its Energy Portfolio So Long As ItRemains Focused on Light-Bulbs, and Resources Can Take What’s Left –How’s That? National Journal (11/18) reports, “Washington RepublicanRep. Doc Hastings, the presumed incoming chairman of the House NaturalResources Committee, launched a formal bid today to break up the House Energyand Commerce committee—one of the oldest and most powerful panels inCongress—and to consolidate the “energy” jurisdiction on his panel. “This bold change advance our Republican all-of-the-above approach to energy,level the power of Committees and create more opportunities for more Members,”Hastings wrote in a letter to the Republican Conference. Thomas Pyle, presidentof the Institute for Energy Research,wrote a blog post proposing the jurisdictional switch. “Thesimple truth is that the energy portfolio belongs in the House Committee onNatural Resources,” he wrote. ”That committee already has jurisdiction overoffshore energy production, coal production, water quality, some natural gasproduction, and shares jurisdiction on almost every other energy issue with Energyand Commerce. Unlike Energy and Commerce, however, the Natural Resourcescommittee has a clear and defined focus—how to effectively manage thevast resources of the United States. It does not concern itself withtelecommunications policy, or consumer safety, or health care.” Chris Tucker,vice president at Financial Dynamics and former staffer to GOP leadership, andto a member of Resources Committee, wrote in an e-mail to National Journal, “Ithink it’s a good idea, and probably one whose time has finally come.

Pyle Driver: IER the FirstGroup in Town to Publicly Proffer Plan for Resources to Claim What’s RightfullyTheirs – New IER Blog Post Lays Out Plan to Get There. IER president Tom Pyle writes (11/18) onthe IER blog, “It is a widely reported fable in Washington that the formerChairman of the House Energy and Commerce Committee, John Dingell (D-MI), hunga portrait of the Earth in one of his committee rooms so he could point to itwhen asked about his committee’s jurisdiction. Like Babe Ruth and the famouscalled shot, only Dingell knows the truth about this piece of Washingtonfolklore. But what cannot be denied is the wide-ranging set of policy issuesthat emanates from this powerful House committee. The Energy and CommerceCommittee’s jurisdiction is practically limitless. Energy, environment, healthcare, interstate and foreign commerce, consumer protection, biomedical researchand development, communication and communication technology, travel andtourism, and even “sports related matters” all fall under the purview of thisunwieldy body. Telecommunications has received very little attention these pasttwo years given the current Chairman, Henry Waxman (D-CA) was busy brokeringdeal upon deal to deliver Obamacare and the cap-and-trade national energy taxto Speaker Pelosi. As a result, the many federal laws governing the rapidlychanging telecommunications industry have fallen far behind the realities ofthe marketplace. Now that the obituary has finally been written oncap-and-trade, Congress will literally be starting over in the effort toconstruct a national energy policy that should focus on creating and fosteringreal and sustainable jobs and removing obstacles to affordable domestic energyproduction.

US’s Envoy to the UN SaysThose Who Question Climate, Oppose Cap-and-Raid “Need to Be Dealt With” So ThatHe Can Regain Respect from His Int’l Buddies. Politico’s Morning Enviro-Day-Blotter (11/19) reports, “Congress’s growing ranksof climate skeptics have the rest of the world a little confused, the top U.S.climate negotiator told reporters yesterday in Crystal City. "People fromaround the world look at some of the things that some of the people running forthe Senate and House have said, some of the positions that are taken," and"there is puzzlement," Todd Stern said at the end of a two-daymeeting on climate for the world’s largest economic powers. "Everyone isentitled to their own opinions, but they’re not entitled to their ownfacts," Stern said of the skeptics. "People who want to look at factsand pretend they’re not there are not in the long run going to do us anygood." He also downplayed the perception that there is an army of skepticsin the Capitol. "I don’t think the … climate deniers represent anythinglike a majority, or even a very large minority. But it’s something, there’s noquestion, it’s something that needs to be addressed and dealt with in thiscountry." "I’d describe myself right now as neither an optimist nor apessimist," Stern said when asked about the prospects for the Cancunclimate talks that kick off Nov. 29. "The issues and the differences arevery real. The issues are challenging. I think we can see a way forward, butonly based on what our leaders agreed to last year in the Copenhagen Accord.We’re certainly not going to go back from that."

Landrieu Drops Hold onObama OMB Nominee – But No Before Extracting Promise from Salazar ThatHe’ll Go to New Orleans “And Express Support for the Oil and Gas Industry.”Politico (11/18) reports, “Landrieu said on the Senate floor she wassatisfied the Obama administration had sufficiently lifted its moratorium ondeepwater oil drilling, which she argued was disastrous for the Gulf Coasteconomy. The senator had held up Lew’s nomination as director of the Office ofBudget and Management for the past two months in protest of the drilling ban,which was put in place after the Deepwater Horizon oil spill in April. "Ifigured it would get their attention and I think it has," Landrieu said. While the moratorium had been lifted in October, Landrieu said as recently asthis week she needed additional assurances from the Obama administration thatthere would be permits issued for deep and shallow water drilling. On Thursday,she said the administration had made progress, issuing six permits in the pasttwo weeks with plans for more. Landrieu said she met with Interior SecretaryKen Salazar three times in the past 24 hours, and that he pledged to travel toLouisiana on Monday to express support for the oil and gas industry. Nominatedby Obama in July, Lew was confirmed by voice vote in the Senate. He had previouslyserved as OMB director in the Clinton administration, and has been credited bythe current administration for helping usher in an era of budget surpluses atthe end of the decade.

API’s Top-Dog EconomistRacking Up the Super 8 Points While Traveling Across the Mid-Atlantic toExplain What’s What on the Marcellus Shale.The Saratogian (11/19) reports, “A federal economist saysNew Yorkers should consider hydraulic fracturing as a way to tap natural gasresources trapped deep underground in the Southern Tier and Finger Lakesregions of the state. John Felmy, a chief economist with the American PetroleumInstitute, which represents oil companies, spoke at a conference Thursday atthe Saratoga Hilton about the potential for hydro-fracking in the MarcellusShale, a rock formation including areas of southern New York and northern andwestern Pennsylvania that holds vast reserves of natural gas. In an interviewprior to the conference, Felmy said a growing population and increasing demandsfor electricity in the U.S. will require the production of more natural gas.Natural gas is used to heat 60 million homes and makes up almost 24 percent ofthe nation’s energy supply, federal statistics show. Renewable energy sourceslike solar and wind constitute 1 percent of the nation’s energy supply andrequire backup generation such as natural gas, Felmy said. In addition, whiledistribution costs for natural gas have spiked, consumers who heat their homeswith oil are still paying twice what natural gas consumers pay. "We’regoing to need this," he said.

Renegade FERC CommissionerProposes New Special Rule Allowing Big Wind, Solar to Buy Transmission in 15Minute Intervals, Instead of Hour-Intervals Like Everyone Else.Reuters (11/18) reports, “Federal regulators on Thursday proposedreforms to make the U.S. electric grid more accessible to electricity generatedby renewable energy sources. FERC proposed a rule requiring public utilitytransmission providers to allow renewable power producers to schedule theirshipments of electricity over shorter time periods to better reflect themoment-to-moment changes in generation output by renewables. Wind and solarpower producers would be able to schedule transmission service in 15-minuteintervals, instead of the current one-hour scheduling procedure. "Most ofthe new power plants for which developers are seeking access to the grid arevariable resources such as wind and solar generators," said FERC ChairmanJon Wellinghoff. "This proposal will help the commission tocost-effectively integrate these and other variable generators into the grid ina way that helps maintain reliability and operational stability." TheFERC’s proposal would help meet the Obama administration’s goal to double theamount of U.S. electricity generated by renewable energy sources. Wellinghoffalso pointed out that the U.S auto and transportation industries are movingtoward electric vehicles that will create new demand for power, and making iteasier to for electricity producers to get on the grid will help meet thatdemand.

Maybe If They Didn’t ThrowSo Many Batteries At Players: The Philadelphia Eagles Wouldn’t Need to Install80 Wind Turbines to Supply the Stadium with Power.NY Times (11/17) reports, “On Thursday, the Philadelphia Eaglesannounced perhaps the most ambitious green initiative yet: the installation ofabout 2,500 solar panels, 80 20-foot-high wind turbines and a generator thatruns on natural gas and biodiesel so that Lincoln Financial Field, the Eagles’home, will be the first stadium capable of generating all its own electricity.Becoming self-sufficient in energy is the latest in a string of environmentallyfriendly measures the Eagles have taken since they opened their stadium in2003. (Coincidentally, the team’s primary color is green.) Since then, manyteams have introduced similar efficiency programs, and the four major sportsleagues have set up programs to help their teams share information about how touse less energy, reduce waste and save money. As large as they are, sports stadiumsconsume just a sliver of the nation’s energy and produce a fraction of itswaste. But they are seen and used by millions of Americans every day, which hashelped leagues counter the perception that sports teams are wastefulenterprises and in fact can convey socially responsible messages to fans of allpolitical and economic stripes.

This isLeadership: No Offshore Drilling in Michigan, That’s Not Stopping Fred Uptonfrom Leading Charge Against Carol Browner/WH Drilling Ban.The Hill (11/15) reports, “A Michigan Republican seeking to chair theHouse Energy and Commerce Committee is pressing White House energy czar CarolBrowner for information about controversial changes her office made to a MayInterior Department report on offshore drilling safety. In a letter to BrownerMonday, Rep. Fred Upton asked about recent findings by Interior’s inspectorgeneral, who concluded that the White House edits left the impression thatoutside experts consulted on the report had endorsed a six-month ban ondeepwater drilling. They hadn’t. And now Upton – who had already signaledthat Browner is in his crosshairs – wants to know more about therationale for the edits. Interior Department officials are emphasizing theinspector general’s conclusion that they did not intentionally seek to mislead.Upton’s letter asks whether the changes “were made to bolster the case for the moratorium”that Interior imposed in late May and lifted last month. It states: “Was it theintention of you or your staff to misleadingly suggest that the Report’sExecutive Summary had been peer reviewed by experts, when that was not actuallythe case?” The letter also asks about “what prompted these edits and underwhose direction were they made,” and seeks “all written documentationconcerning these changes and their authorization.”

DoubleStandard from Hollywood Hank? “Republicans in the House are going to roll overthe Democrats.” What About That Healthcare and Cap-and-Trade Vote?The Hill (11/15) reports, “Top Energy and Commerce Committee DemocratHenry Waxman Monday said he expects a stalemate on the panel in the nextCongress under Republican rule.“Ihave a sense, and I hope to be disappointed, that the Republicans in the Houseare going to roll over the Democrats on committee and in the House,” said theCalifornia Democrat, who will continue to lead his party on the panel duringthe next two years. “Right now, myexpectations are the Republican leadership will find it hard to reachcompromises in the House because they have a lot of pretty hard-linedRepublicans in their ranks who didn’t come here to compromise.” Waxman said anyGOP attempts to stonewall Democrats in the House will face resistance in atight Democratic majority in the Senate. “They will find that that will not getthem a change in the law because those efforts will be stopped in the Senate,”Waxman told reporters in the Capitol Monday evening. “If we wanted to try towork together in the House, perhaps we could find ways to encourage the Senateto get the votes they’ll need to pass something, and as well to encourage thepresident to sign a bill. But otherwise I can see two years of a lot ofstalemate.”

Must Read:California’s Green Bonanza Could Drive Country off Economic Cliff; IncomingHouse Leadership Only Hope to Stop “Green” Spending Spree. George Gilder (11/16) writes for the Wall Street Journal, “California officials acknowledged lastThursday that the state faces $20 billion deficits every year from now to 2016.At the same time, California’s state Treasurer entered bond markets to sellsome $14 billion in "revenue anticipation notes" over the next twoweeks. Worst of all, economic sanity lost out in what may have been the mostimportant election on Nov. 2—and, no, I’m not talking about thegubernatorial or senate races. This was the California referendum to repealAssembly Bill 32, the so-called Global Warming Solutions Act, which ratchetsthe state’s economy back to 1990 levels of greenhouse gases by 2020. That’s a30% drop followed by a mandated 80% overall drop by 2050. Together with a $500billion public-pension overhang, the new energy cap dooms the state tobankruptcy. The irony is that a century-long trend of advance in conventional"non-renewable" energy—from wood to oil to natural gas andnuclear—has already wrought a roughly 60% drop in carbon emissions perwatt. Thus the long-term California targets might well be achieved globally inthe normal course of technological advance. The obvious next step is aggressiveexploitation of the trillions of cubic feet of low-carbon natural gasdiscovered over the last two years, essentially ending the U.S. energy crisis.A partial solution is a suit by four attorneys general outside of California.They argue that the California law violates the Constitution’s interstatecommerce clause because of the limits it places on electricity generated byout-of-state, coal-fired power plants. But ultimately the new Congress mustact. But Republican leaders such as incoming Speaker John Boehner and MajorityLeader Eric Cantor show dangerous gullibility in the face of environmentalistclaims.”

Hey US CoalProducers, You’ve Gotta Friend in China.Worried About “Peak Coal,” Beijing Capping Domestic Output – Yet StillBuilding a Coal-Fired Plant Each Week.Wall Street Journal (11/16) reports, “The idea of peakoil—the point at which global production reaches its maximum—hasfixated the energy industry for years. Now, China is grappling with a newworry: peak coal. State-run media reported that Beijing is considering cappingdomestic coal output in the 2011-2015 period, partly because officials worryminers are running down reserves too quickly to meet the needs of a rapidlyexpanding economy. "China accounts for around 14% of global coal reservesbut its share of global coal consumption is already over triple that at 47%,which is unsustainable," Hong Kong-based brokerage CLSA Asia-PacificMarkets said in a report last month. Imposing a cap would be significant asChina’s mining sector is already finding it hard to keep up with domestic coaldemand, which has grown around 10% annually over the past decade. Its net coalimports exceeded 106 million metric tons in the first nine months of theyear—higher than the level for 2009 as a whole—and state companieshave been aggressively acquiring overseas coal assets to secure long-termsupply. In the three years to September 2010, Chinese companies spent $20.96billion on overseas coal-sector acquisitions, according to Dealogic.”

Eco-Extremists Cheer when a Dam is Torn Down in US;Meanwhile, China’s Looking to Build $10 Billion, 7-Gigawatt Facility, Thousandsof Jobs Over 15 Years.Bloomberg (11/16) reports, “China, Myanmar and Thailand agreed to studya $10 billion hydropower project that would be Southeast Asia’s largest bygeneration capacity, the Chinese government said. The 7-gigawatt project wouldbe built on the Salween River in Myanmar over 15 years, China’s State-ownedAssets Supervision and Administration Commission said in a statement on its websitetoday. Companies from the three countries signed an accord on the project onNov. 10, according to the statement. China, the world’s largest energyconsumer, is planning to add hydropower capacity in its southern provinces suchas Yunnan and help build hydro dams in neighboring countries including Myanmar,Laos and Cambodia to meet demand from the region. China Three Gorges Corp.,Sinohydro Corp. and China Southern Power Grid Co. will work with theElectricity Generating Authority of Thailand and the International Group ofEntrepreneur Co. in Myanmar on the study, according to the statement.”

Cash-StrappedFederal Government May Forgo Offshore Leasing in 2011, Further Hamper GulfCoast Economy, Energy Security.Reuters (11/15) reports, “Next year may be the first time in over fourdecades that the United States does not lease areas in the Gulf of Mexico foroil or gas drilling, because of additional environmental reviews planned by theObama administration, a major oil lobbying group said on Monday. The AmericanPetroleum Institute complained that 2011 could be the first year since 1965without a U.S. government auction in the Gulf, depending on the length of theInterior Department’s environmental review process. Spurred by the BP (BP.L:Quote) oil spill, Interior last week said it plans to complete supplementalenvironmental impact statements for three remaining Gulf lease sales scheduledunder the current five-year program. In the past, additional environmentalreviews have taken up to a year to complete, but API’s Erik Milito said thedepartment needs to move more swiftly to provide companies with certainty. "Companieshave to make decisions as to what they’re going to do with their existingportfolio of leases," Milito told reporters on a conference call."This could impact companies’ decisions." Interior’s Bureau of OceanEnergy Management refused to confirm whether any of the upcoming lease saleswould have to be postponed. "No announcements have been made regarding thenext Gulf of Mexico lease sale," bureau spokesman Nicholas Pardi said.

Shocker:Politico’s Morning Environmentalist Touts Report by “The Institute for PolicyIntegrity at NYU School of Law,” Fails to Mention the Podesta/Soros Ties. Politico (11/16) reports, “Most states are lagging when itcomes to rulemaking procedures that include setting environmental and publichealth standards, according to a new report out today from the Institute forPolicy Integrity at New York University’s School of Law. The study assigns eachof the 50 states a letter grade according to how well their regulatory systemspromote sound and rational decision-making. No state got an A and most were inthe D range. Iowa ranked the highest with a B+. The worst: Alaska, Delaware,the District of Columbia, Georgia, Louisiana, New Mexico and Texas all scored aD-. Report will be live later today at http://bit.ly/aOKVUJ.”

Recipe for an Offshore Ban:One Part Delay, One Part Denial, One Part Ennui – Any If All Else Fails,Simply Refuse to Hold Lease Sales. Houston Chronicle (11/12) reports, “Although the Bureau ofOcean Energy Management, Regulation and Enforcement has not announced any delayin the planned lease sale covering offshore tracts in the central Gulf ofMexico, oil industry lobbyists and analysts said it is unlikely to go forward.Analysts at FBR Capital Markets predicted the March lease sale “is likely to becanceled” as a result of the study and the offshore energy bureau’s workvetting new drilling permits and drafting new safety rules. “The agency facessignificant workload on other offshore regulation, including permitting andpublic comment period requirements,” FBR Capital Markets analysts said. MichaelOlsen, a lawyer with Bracewell & Giuliani who previously spent five yearsworking for the Interior Department, noted that “normally, these things takeseveral months to do.” “It would be pretty tough to get it done in (time),”Olsen added. Bromwich said in an interview Tuesday that an upcoming “filing”would shed light on the future of the sales. But the government may have tippedits hand with its formal announcement of the environmental impact study, whichlays the groundwork for the upcoming sales.

There’s Gotta Be a BetterName Than “ReportGate,” Right? Well, Until We Think of One – U.S. Senate Wantsto Know Why Browner Re-Wrote Report on Offshore Ban. The Hill (11/12) reports, “Several members of the Senate Environmentand Public Works Committee are calling for a hearing on the Interior Departmentinspector general’s findings about White House edits of a controversial reporton offshore drilling safety. The Interior Department’s acting inspector generalthis week said changes by energy czar Carol Browner’s staff to Interior’s lateMay report left the impression that outside experts who reviewed the study hadendorsed a six-month ban on deepwater drilling. They hadn’t.

Ranking member James Inhofe (R-Okla.), andSens. John Barrasso (R-Wyo.) and David Vitter (R-La.) called on CommitteeChairwoman Barbara Boxer (D-Calif.) to conduct a hearing on the matter.“Under Carol Browner’s watch, politics istrumping science. Congress must investigate the editing of scientific reportsand secret meetings where nothing was put into writing. As the Ranking Memberon the Subcommittee on Oversight, I will demand that hearings be heldimmediately. This ‘Czar’ should be accountable to the people, not the other wayaround,” Barrasso said in a prepared statement Friday.

The senators are among GOP lawmakers on bothsides of the Capitol who are using the report as political ammunition againstthe White House.

Lesley Stahl’s Not ExactlyEdward R. Murrow, Right? But Hey: She Did a Half Decent Job Last NightExplaining Enormous Potential of Shale.CBS News (11/14) reports, "In the last few years, we’ve discoveredthe equivalent of two Saudi Arabias of oil in the form of natural gas in theUnited States. Not one, but two," Aubrey McClendon, the CEO of ChesapeakeEnergy, told "60 Minutes" correspondent Lesley Stahl. "Wait, wehave twice as much natural gas in this country, is that what you’re saying,than they have oil in Saudi Arabia?" Stahl asked. "I’m trying tovery clearly say exactly that," he replied. There are shale formationsacross large parts of the country, and there is production or exploration inover 30 states. It’s an American energy renaissance. Some 10,000 wells will bedrilled in northwest Louisiana, in some of the poorest communities in thecountry, where impoverished farmers are becoming overnight millionaires as theylease their land for drilling. "I never dreamed of money like this,"C.B. Leatherwood told Stahl. " Leatherwood, a retired oil field worker,got a bundle to drill under his farm: $434,000. His cousin, Mike Smith, alsoprofited: he was paid nearly $2 million. "So what’d you do that day?"Stahl asked Smith. "I sat back and thought about it for a, all day. And Isaid, ‘I’m a millionaire.’ And that didn’t sound right," he replied. Theyactually call them "shaleionaires."

Unfortunately, 60 MinutesDidn’t Get Everything Right – Completely Swung and Miss with Ham-HandedExplanation of HF’s Regulatory History. Wilkes-Barre Times Leader (11/15) reports, “A primetime network newsshow’s look at the pros and cons of the natural gas drilling phenomenon in theUnited States that aired on Sunday left people on both sides of the issuesatisfied with fair coverage but concerned that comments from those who wereinterviewed were misleading or inaccurate. Chris Tucker, of EnergyInDepth.org,an organization that promotes the benefits of natural gas drilling, said thesegment was “fairly balanced,” although the show didn’t get everything right.“I think they did a great job of telling the story of real people, everydaypeople, all across the country whose lives have changed for the better thanksto the development of this clean, American resource,” Tucker said. “They didn’tquite get it right when they attempted to venture into the regulatory historyof hydraulic fracturing. The reality is that fracturing technology is among themost thoroughly regulated procedures that takes place at the wellsite, which isa big reason why it’s been able to compile such a solid record of safety andperformance over the past 60 years of commercial use. ”Travis Windle,representing the Marcellus Shale Coalition, said “having ‘60 Minutes’underscore the enormously positive benefits of this revolution … speaks to howtransformational this development is for our nation.”

Bingaman Would Like to SeeLame Duck Goosed Up for Vote on Expansive Electricity Mandate – But EvenHis Own Spokesman Predicts That Won’t Happen. E&E News(11/15, subs. req’d) reports, “The renewable electricity standard (RES) measure(S. 3813), which was originally included in the broad energy bill that passedout of the Energy Committee last summer on a bipartisan basis, was onceconsidered a shoo-in as part of a Senate climate bill this year. But thosetalks failed, so Bingaman and Kansas GOP Sen. Sam Brownback, who is leaving theSenate at the end of this year to become governor, introduced the RES measureas a stand-alone bill this summer. Since then, they have been working to drumup the 60 votes needed to move it to the floor. So far, 31 additionalco-sponsors have signed on, including three Republicans besides Brownback:Sens. Susan Collins of Maine, John Ensign of Nevada and Chuck Grassley of Iowa.A handful of other senators have said they would support the measure withoutsigning on as co-sponsors. But other Republicans, led by Sen. Lindsey Graham ofSouth Carolina, have floated a clean energy standard bill (S. 20) that wouldextend the mandate to energy sources like nuclear and "clean coal."The measure could draw supporters away from Bingaman and Brownback’s plan,which only allows renewable energy sources under the mandate. Even if Bingamanand Brownback find 60 supporters, politics of the lame-duck legislative sessionmay keep the measure off the floor. "We do know energy does not top theto-do list," Wicker said.

Right, and Bingaman WantsOne More Thing from Lame Duck Too: A Massive Public Land-Grab Bill –“Dozens and Dozens” of Horrible Bills Wrapped Into One.E&E News(11/12, subs. req’d) reports, “Senate Energy and Natural Resources CommitteeChairman Jeff Bingaman (D-N.M.) is hoping to pass a package of public lands andwilderness bills during the lame-duck session of Congress. Bingaman’s panel hassent more than 60 bills to the floor this session that would create newnational parks, monuments, wilderness areas and wildlife sanctuaries. Now he’shoping to bundle them into an omnibus measure for Senate passage before the111th Congress adjourns, spokesman Bill Wicker confirmed today. Wicker declinedto release the specific bills included in the draft omnibus, but he said itwould include most of the bills that have been cleared through committee andfew — or none — of the measures that haven’t. The Energy and NaturalResources Committee traditionally approves public lands bills only withunanimous support. "It’s dozens and dozens of bills," Wicker said."Time allowing, [Bingaman] does support it, and it is something he’ll pushfor." Time may not allow for much. The package’s quickest road to passageis by unanimous consent, but there are several voices in the Senate that couldkeep that from happening, Wicker said.

Enviros Horrified that Prop26 Passed in CA – Fear That Securing Two-Thirds of Public’s Support forTax, Fee Increases on Energy Producers Will Be Too Tough.LA Times (11/15) reports, “Proposition 26 reclassifies most regulatoryfees on industry as "taxes" requiring a two-thirds vote in governmentbodies or in public referendums, rather than a simple majority. Approved byvoters 53% to 47% on Nov. 2, it is aimed at multibillion-dollar statewideissues such as a per-barrel severance fee on oil and a cap-and-trade system forgreenhouse gases. It’s also aimed at local ordinances that add fees oncigarettes to pay for trash pickup and on alcohol to fund education and lawenforcement programs. Last week, the American Chemistry Council warned LosAngeles County supervisors that a proposed ordinance banning plastic grocerysacks and imposing a 10-cent fee on paper bags falls under the votingrequirements of Proposition 26. But environmentalists and health advocates saidthe initiative makes it nearly impossible in the current political climate toboost industry fees for cleaning up air, water and toxic waste pollution; forcurbing smoking and alcohol abuse; or for enacting new programs."California just got a lot harder to govern," said Bill Magavern,California director of the Sierra Club. Environmentalists, unions and theDemocratic Party scrambled to raise $6.6 million to fight Proposition 26, butproponents outspent them by 3 to 1. In addition to its fee-to-tax redefinition,Proposition 26 contains a provision imposing a two-thirds vote on"revenue-neutral" tax swaps — a complex legislative maneuverthat balances a tax increase with a tax decrease.

Your Very Own Soccer Star:Solar Companies Benefiting from Subsidies in US Turn Around and Use That Moneyfor Big-Time Endorsement Deals in Europe. NY Times (11/14) reports, “Sprucing up your company profile by hiring apopular soccer player and a former international television celebrity to starin advertisements may be run of the mill marketing for some. For a solarcompany, it may give the edge needed to survive in a fiercely competitive andfast-changing environment. SolarWorld of Germany, a maker of solar modules,throws a lot of resources at building its brand when selling its productsoutside of its domestic market, where television ads have helped it to become amajor market player. After running ads this year with Lukas Podolski — amember of the German national soccer team — the company started acampaign in the United States with an unlikely figure: Larry Hagman —whose fictional character in the television show “Dallas” was the epitome of agreedy, scheming oil tycoon — is singing the praises of green energy forSolarWorld. Such efforts lie at the heart of a bigger battle as SolarWorld,and German peers like Q-Cells, take on fierce international competition. “Thisis one way of fighting back the brutal Asian competition,” said Philipp Bumm, ananalyst at Cheuvreux in Frankfurt. The $39 billion solar industry is noexception to a broad trend in which lower cost Asian rivals eat away at themarket shares of European and U.S. companies that usually operate with higherlabor costs.

Re-Useable Grocery BagsHave Lead In Them, Enviros Scream – Only Answer Left is to Stop GroceryShopping and Retire to Caves – Immediately.NY Times (11/14) reports, “They dangle from the arms of many NewYorkers, a nearly ubiquitous emblem of empathy with the environment: synthetic,reusable grocery bags, another must-have accessory for the socially conscious. But the bags, hot items at upscale markets, may be on the verge of aglacier-size public relations problem: similar bags outside the city have beenfound to contain lead. “They say plastic bags are bad; now they say these arebad. What’s worse?” asked Jen Bluestein, who was walking out of Trader Joe’s onthe Upper West Side with a reusable bag under her arm on Sunday. “Green is atrend and people go with trends,” Ms. Bluestein said. “People get them asfashion statements and they have, like, 50 of them. I don’t think people knowthe real facts.” Reports from around the country have trickled in recentlyabout reusable bags, mostly made in China, that contained potentially unsafelevels of lead. The offending bags were identified at several stores, includingsome CVS pharmacies; the Rochester-based Wegman’s grocery chain recalledthousands of its bags, made of recycled plastic, in September. Concerns haveproliferated so much that Senator Charles E. Schumer, a New York Democrat, senta letter on Sunday to the Food and Drug Administration, urging the agency toinvestigate the issue.

Advice:Compromise on Energy will Compromise New-Found Republican Majority. E&E News (sub’s req., 11/12)reports, “President Obama and Republicans have repeatedly highlighted energy asan area where compromise and progress can be found over the next two yearsafter the tumultuous and partisan midterm elections. But the prospects for anyprogress will land squarely on the shoulders of a few Democratic and Republicansenators who can successfully negotiate and woo allies from the other party.But who will step up? Who has the political incentive to fill the leading andsupporting roles on energy and environmental policy to overcome the fallbackposition of gridlock? With the House dominated by Republicans, moststakeholders contend the finer art of negotiating smaller bipartisan energybills — or "chunks" — that can pass the Democratic upper chamberand obtain the president’s signature largely lies in the Senate. There are severalsenators primed to fill the starring roles, according to energy andenvironmental lobbyists. Sen. Jeff Bingaman (D-N.M.), chairman of the Energyand Natural Resources Committee, and his GOP counterpart on the committee –whoever that turns out to be — are a shoo-in for major roles. Despite passinga bipartisan energy bill out of the committee in 2009, Bingaman largely endedup playing a secondary role this year to Sens. John Kerry (D-Mass.), JoeLieberman (I-Conn.) and Lindsey Graham (R-S.C.) as they led the Senate’sefforts on a climate and energy bill. The bill ultimately fizzled out, alongwith Kerry and Lieberman’s key roles on the issue.”

Big Wind’sResearch Arm, NREL, Out with New Study; Finds That Wind Industry will Create aFew Thousand of Temporary Construction Jobs, a Few Hundred Permanent.Casper Star-Tribune (11/11) reports, “For manyresidents and policymakers in Wyoming, wind energy is the future. But even aswind turbines have gone up around the state, and hundreds of thousands of acresare being eyed for future wind farms, there’s been very little hard data toindicate exactly how much Wyoming can benefit from the nascent industry. Thatis, until now. In a presentation at the Wyoming Infrastructure Authority’squarterly board meeting Tuesday in Cheyenne, Eric Lantz, a policy analyst atthe Colorado-based National Renewable Energy Laboratory, painted a more detailedpicture about what Wyoming can expect to reap from its wind. Data from otherstates indicates that building Wyoming wind energy projects that total 9,000megawatts of electricity will create about 5,500 full-time-equivalent jobs inthe state in the construction industry alone, he said. However, that just meansthere will be enough paid work hours to equal the hours worked by 5,500full-time employees, he said — only a fraction of that number will bepermanent jobs. Erecting the wind turbines will create about 450 permanentworkers in the state, he said. While the wind energy industry will likely nevergrow to the size of Wyoming’s other energy resource industries — coal,oil and natural gas — it will help to even out the boom-bust cycle thoseother industries suffer from, Anderson said.

The BartonBackfire? Texas Lawmaker Distances Self/Staff from Anti-Upton Campaign. OurTake? We’re Just Glad there is an Interest in Energy, Finally.The Hill (11/11) reports, “Rep. JoeBarton (R-Texas) is denying that he has used opposition research in an effortto undermine a rival in the race for the chairmanship of the Energy andCommerce Committee. Media outlets have reported that Barton helped orchestratean anonymous analysis of Rep. Fred Upton’s (R-Mich.) voting record thatconservative activists are using to argue Upton is too moderate to lead thecommittee. GOP sources have alleged that Barton is behind the effort, but hesays otherwise. “We haven’t done that,” Barton said Thursday. Barton told TheHill that he has had "some summaries" forwarded to him. “But that’sit, I’ve just seen them,” he said. “That’s not anything that I’ve compiled,that’s just out there.” He said that many groups are “looking at therecords" of those contending for top posts on Energy and Commerce andother major committees. “There apparently are lots of conservativeorganizations in the country that are very interested in the new RepublicanCongress and the positions that the Congress is going to take, and part of thatreview apparently is to look at some of the major committees,” he said. “I haveseen some stories about Fred’s voting record and a few about mine, but thevoting records are actually created by the members who do the votes,” Bartonsaid. “It is what it is.”

Sharp Shootin’Manchin Heads to DC, Holds Firm in Opposing Anti-Affordable Energy Policies. E&E News (sub’s req.11/12) reports, “Once you’ve shot a bullet through the climate bill, you can’ttake it back. Democrat Joe Manchin just won a West Virginia Senate seat bypromising to — among other things — block his party’s efforts to passcap-and-trade legislation, including in a now-famous television spot where heliterally shot the bill with a rifle. Now he is headed to Washington and has tofind his place among Democrats without alienating the voters who sent himthere. Manchin, the winner of a special election to replace the late Sen.Robert Byrd (D), will join the Senate for the lame-duck session, and Democratsinsist they have a spot for him. The party contains a broad spectrum ofopinions and that is part of its strength, said Alec Gerlach, a regionalspokesman for the Democratic National Committee. "Democrats don’t cast outother Democrats because of a litmus test," Gerlach said. "Joe Manchinis a Democrat, and he won his race running as a Democrat." On energyissues, Manchin may have dodged a bullet this week when President Obama saidDemocrats would drop their bid for a cap-and-trade bill. But Obama has promised"bite-sized" initiatives to deal with climate change, including arenewable energy standard. Manchin signed into law a renewable energy standardof his own last year as West Virginia’s governor, but it may not be the onethat Washington environmental groups are looking for. The bill called forutilities to get 25 percent of their electricity from renewable sources by2025, but those renewable sources include coalbed methane, waste coal, coalgasification and "tire-derived fuel."

With the Helpof American Taxpayers, Brazil’s Petrobras Making Historic Investment; $224Billion Over Next 5 Years. Bloomberg (11/12) reports,“Petrobras is investing $224 billion in the five years through 2014 to boostoutput and expand its refining capacity. The company will revise its investmentplan next year to include the development of new oil reserves it bought fromthe government as part of its share sale earlier this year and said it receivedon average $72.10 a barrel for its oil in Brazil, compared with $64 a barrel ayear earlier. The company cut gasoline prices by 4.5 percent and diesel 15percent in June 2009 and hasn’t increased them since. Profit from the company’sexploration and production operations, its biggest unit, rose 31 percent,offsetting lower results from the other units such as gas & energy anddistribution, Petrobras said. Petrobras fell 41 centavos, or 1.5 percent, to26.72 reais at the 6 p.m. close of Sao Paulo trading yesterday. The stock hasplunged 27 percent this year, compared with a 3.8 percent gain for Brazil’sbenchmark Bovespa index. Petrobras posted a 1.97 billion-real financial gain,up 36 percent from a year earlier, after the real rose 7 percent against thedollar in the quarter. “These currency fluctuations are volatilities that arepart of the process,” Chief Financial Officer Almir Barbassa told reportersyesterday in Rio de Janeiro. Petrobras will need to sell $32 billion of newdebt through 2014 and roll over an additional $38 billion as it seeks to doubleproduction over the next decade, Chief Executive Officer Jose Sergio Gabriellitold reporters in Rio de Janeiro Nov. 9.”

State LawRequires the Buckeye State to Reduce Energy Use by 22 Percent by 2025;Unemployment Not High Enough?Akron Beacon Journal (11/12) editorializes,“FirstEnergy flopped with its first run at complying with a new state lawrequiring utilities to reduce customers’ energy use 22 percent by 2025. Manycustomers reacted with fury at plans to leave energy-efficient light bulbs ontheir doorsteps — and an additional cost in their monthly bills. TheAkron-based power company retreated and reworked its proposal. It did so withspeed in mind. The electricity restructuring law requires year-to-year progressin reaching the mandated goal. FirstEnergy didn’t want to fall further behind.So, a few months later, in December of last year, the company unveiled itsalternative. The package largely reflected the approach of other utilities inthe state. Nothing controversial, really, among other things, an appliance turn-inprogram, home energy audits, incentives for energy-efficient new homes. Eventhose compact fluorescent light bulbs (CFLs) have made a reappearance,available for a discount. All that remained was approval from Public UtilitiesCommission of Ohio. When did the OK arrive? In a few months? By summer? Thecommission still hasn’t delivered its judgment — almost a year later.Perhaps the commission is skittish, given its own prominent role in the fiascolast year. Yet it is the public body overseeing the implementation of a publicpolicy decision, involving no small urgency.

Sure ourEconomy is Still Struggling; Not Stopping Oil From Hitting $100, Thanks toRobust growth in China!Bloomberg (11/12) reports, “China’sdrive to curb energy use is exacerbating a shortage of diesel, sending refiningprofits to the highest level in almost two years and raising the likelihood oilwill trade at $100 a barrel in coming months. The return from processing Dubaicrude into diesel, or gasoil, climbed above $14 a barrel in Singapore today tothe highest level since January 2008, after service stations ran dry in China’seastern and southern coastal provinces, according to prices from PVM OilAssociates, a London-based brokerage. The margin from turning Brent into gasoilin Europe rose 15 percent since Nov. 5, prices on the ICE Futures Europeexchange show. China is limiting power supplies to meet Premier Wen Jiabao’sgoal of cutting energy use under a five-year plan that ends next month. That’sprompting factories to resort to using their own diesel-powered generators,driving up demand for the fuel and forcing refiners such as PetroChina Co.,Asia’s biggest company, to process more crude. Refining rose to a record inOctober, Chinese government data showed yesterday. “We expect this to have abullish impact on not only the regional diesel market, but it may converge withother factors to create a perfect storm in driving up the oil price,” said PaulTing, president of Paul Ting Energy Vision LLC, an energy research company inNew Jersey.”

Science of the Lambs: AdministrationPledges Fealty to “Science” At Every Turn – But When Science Points toMore Energy Exploration, WH Re-Writes the Script.Associated Press (11/10) reports, “The latest complaint fromscientists comes in a report by the Interior Department’s inspector general,which concluded that the White House edited a drilling safety report in a waythat made it falsely appear that scientists and experts supported theadministration’s six-month ban on new deep-water drilling. The AP obtained thereport early Wednesday. The inspector general said the editing changes by theWhite House resulted “in the implication that the moratorium recommendation hadbeen peer reviewed.” But it hadn’t been. Outside scientists were asked only toreview new safety measures for offshore drilling. “There are really only a fewpeople that know what they are talking about” on offshore drilling,” said FordBrett, managing director of Petroskills, a Tulsa, Okla.-based petroleumtraining organization. “The people who make this policy do not … so don’tmisrepresent me and use me for cover,” said Brett, one of seven experts whoreviewed the report. The new inspector general report said Browner’s staffimplied that scientists had endorsed the drilling moratorium, by raising areference to peer review in the drilling safety report. At least one outsideexpert who was involved said he was convinced afterward that it wasn’t adeliberate deception, and Interior Department officials told the inspectorgeneral they didn’t deliberately make changes to cause confusion.

The L Word: Boston PaperSays White House “Lied” By Saying Offshore Ban Was Supported by Science,Peer-Reviewed By Experts. Boston Herald (11/11) editorializes, “Apparently there isnothing the Obama administration won’t do or say to justify the way it doesbusiness – including lying. Case in point, an administration report used tojustify its six-month ban on new deep-water drilling in the Gulf of Mexico inthe wake of the BP oil disaster. Now the Interior Department’s inspectorgeneral has confirmed that the White House did indeed alter a report that wassupposedly the work of scientists and experts in the field to make it appearthey supported the ban. With some deft editing, the White House made it appearthe drilling moratorium recommendation was “peer reviewed” when, in fact, theonly thing peer-reviewed were new safety measures for offshore drilling. “Webelieve the report does not justify the moratorium as written and that themoratorium as changed will not contribute measurably to increased safety andwill have immediate and long-term economic effects,” the scientists wrote in aletter to Louisiana Gov. Bobby Jindal and the state’s senators earlier thisyear. “The secretary should be free to recommend whatever he thinks is correct,but he should not be free to use our names to justify his political decisions,”they added. The inspector general’s report was requested by Louisiana officialslast June, after eight of the 15 scientists involved signed on to the protest

“Business As Usual”: EPARejects Notion that New Carbon Rules Targeting Businesses Big and Small willImpact Their Ability to Operate – “Pretty Much Business As Usual.” E&E News(11/10, subs. req’d) reports, “U.S. EPA’s top air official today challenged thesuggestion that the Obama administration’s new climate rules could haltconstruction projects across the country, arguing that permitting agencies willbe able to handle carbon dioxide as well as any other pollutant. Starting onJan. 2, state and local agencies are required to make the largest new andmodified facilities use the best available control technology (BACT) to reducetheir greenhouse gas emissions. EPA issued a guidance document today to explainhow regulators should incorporate greenhouse gases into the existing reviewprocess, which is required for many facilities that need a federal airpollution permit. Industry claims the changes will cause the permitting processto grind to a halt, but Gina McCarthy, the assistant administrator for EPA’sair office, says the transition should be smooth. State and local agencies haveused the review process for decades, she said. "This is pretty muchbusiness as usual," McCarthy told reporters this afternoon. Though somepeople might have expected EPA to go "outside the box" withgreenhouse gases, she added, "there is nothing groundbreaking about thisBACT guidance other than I think it makes it very clear that the Clean Air Actcan apply to greenhouse gases without breaking any barriers."

Two Years Ago, Basra, IraqWas One of the Most Dangerous Cities in the World; Today? We’re ProducingEnergy There – And the Entire Landscape Has Changed.Wall Street Journal (11/11) reports, “This dusty and raggedcity in southern Iraq was notorious a couple years back for its vicious militiawarfare and rampant smuggling. Today Basra has a very different rep: one of theworld’s newest oil boom towns. Some of the world’s largest energy companies areramping up drilling in Iraq. They are focused on a handful of fields clusterednear Basra, the nation’s oil hub, as the government attempts a dramaticexpansion of output that could help moderate world energy prices for years tocome. The drilling frenzy has triggered an investment and building boom inBasra itself. Recently, the investment commission of the local governorate saidit had awarded 11 new investment licenses worth $500 million to local andforeign companies with new projects in the area. Separately, a 65,000-seatsoccer stadium is on the drawing board. Foreign companies are sending inexpatriate managers, hiring Iraqi engineers and laborers and building massivebase camps in the desert in southern Iraq, where the country’s reserves andproduction are concentrated. Freshly imported rigs have started drilling newwells and repairing dozens more older wells near Basra, which is both an oiland port town. Shiny new restaurants and car dealerships are popping up aroundtown—and vanity license plates are fetching north of $10,000.

Tossing His Bolo Into theRing: Rep. Raul Grijalva, of Boycott-My-Own-State Fame, Says He’ll Challenge EdMarkey for Ranking Member Slot on Resources Committee. The Hill (11/10) reports, “Rep. Raul Grijalva (Ariz.) will challengeRep. Ed Markey (Mass.) for the top Democratic spot on the Natural ResourcesCommittee, Grijalva’s spokesman confirmed Wednesday. Grijalva was chairman ofthe National Parks, Forests and Public Lands Subcommittee on the NaturalResources panel this Congress and as a Westerner may be seen as a more typicallawmaker to lead the Democrats on a committee with vast oversight over publiclands. Markey, however, would be a loud mouthpiece for Democrats on issues likeoffshore oil drilling and the need to shift away from fossil fuels. Markey— who currently heads both the House Energy and Commerce’s Energy andEnvironment Subcommittee as well as House Speaker Nancy Pelosi’s (D-Calif.)Energy Independence and Global Warming Select Committee — has been aleading player among House Democrats on energy and climate issues thisCongress. Markey — who is entering his 19th term in the House — isalso far more senior than Grijalva. Markey has not officially said he is seekingthe ranking member post on Natural Resources but was seen Monday and Tuesdayscoping out minority committee offices in the Ford and Longworth House OfficeBuildings.

Meanwhile, Fred UptonFinding Himself All of a Sudden in Tight Race for E&C Chairmanship –Writes Letter to Sec. Clinton Supporting the Keystone Pipeline.E&E News(11/10, subs. req’d) reports, “Rep. Fred Upton of Michigan, currently battlingthree fellow Republicans for the chairmanship of the House Energy and CommerceCommittee, today came out strongly in favor of a high-profile pipeline thatwould ship crude from the Canadian oil sands to U.S. refineries. Upton pressedSecretary of State Hillary Rodham Clinton, whose department must decide on apermit for the $7 billion Keystone XL pipeline, to sign off on the project"as soon as possible" in a letter that subtly invoked hisconservative bona fides. "As my old boss, President Reagan, once said,’Government is not the solution to our problem, government is theproblem,’" Upton wrote. "Government is currently standing in the wayof this $7 billion, privately funded project, which is expected to stimulate$20 billion in new spending for the U.S. economy and spur the creation of118,000 jobs." Those estimates of economic benefits are often cited by thepipeline’s sponsor, Calgary, Alberta-based TransCanada Corp., and major laborunions that support Keystone XL. A final State Department decision on thepipeline is not expected until early next year, although Clinton made headlines– and aroused bipartisan concerns — last month after publicly saying she is"inclined to" let the pipeline go forward.

Memo to Upton: Want to ShowYou Can Think “Outside the Box” on Energy? Support the Effort (We Just InventedIt) to Create an Energy and Natural Resources Cmte in the House. IER president Tom Pyle writes (11/10) onthe IER blog, “It would be difficult to argue that Upton is a sturdychampion of energy production, but similarly challenging to defend Mr. Barton’srecord. On his watch, Barton cleared legislation imposing an ethanol mandate,expanding the power of FERC, banning incandescent light bulbs, and establishinggasoline price controls (a first for Republicans since Richard Nixon). Morerecently, Ranking Member Barton teamed up with current Chairman Henry Waxman(D-CA) on legislation to create a new and destructive regulatory regime foroffshore oil and gas exploration and production as a response to the BP oilspill. A committee with jurisdiction over health care, telecommunications, andenergy has little hope to develop and keep coherent and meaningful expertise onall of it. And thanks to Obama Care, the health care issue alone will take aconsiderable amount of the committee’s time and attention in the next twoyears. The result is that many Members and staff who care about and knowsomething about energy policy tend to reside elsewhere. It is time to create anEnergy and Natural Resources Committee, one whose focus is on the energy thatpowers our economy and the resources that are the shared inheritance of allAmericans. Such a committee would provide accountability, and perhaps moreimportantly, clarity for those who seek to understand and truly reform federalenergy policy.

Producers Rightly SeeOpportunity in President Tip-of-Cap to Natural Gas Last Week – ButQuestion Whether Obama Actually Knows We Have t to Drill for It. Spectra CEO Greg Ebel writes (11/10) in the Houston Chronicle, “In his Nov. 3 press conference, PresidentObama voiced support for the role of natural gas in a forward-looking energypolicy. In his words: “We’ve got, I think, broad agreement that we’ve gotterrific natural gas resources in this country. Are we doing everything we canto develop those?” The answer to the president’s question is no, we are notdoing everything we can to develop our natural gas resources. But with hiswords, we have the making of a bipartisan agreement on the gifts provided bynatural gas: energy security, jobs, investment and environmental benefits. Lastweek, voters spoke loud and clear in terms of their concerns about the economy.Greater use of natural gas means more jobs and economic opportunities. Thenatural gas industry supports more than 2.8 million U.S. jobs and contributes$385 billion annually to the national economy. It’s an industry that’s addingjobs — experiencing a 17 percent increase over the past several years.Thousands more jobs will be created as we capitalize on the vast reserves ofunconventional gas. Achieving common ground begins with common-sense choices.Let’s get to work, Washington.

Here’s Why Shale Gas CanWork: ‘Cuz It Doesn’t Need a Hand-Out; It Doesn’t Need a Bail-Out; It Doesn’tNeed a Tax Break; It Just Needs EPA to Get Out of the Way. OIPA chairman Mike McDonald tells (11/11) The Oklahoman, “Natural gas can no longer be ignored bypolicymakers. The use of horizontal drilling and hydraulic fracturing hasopened vast new natural gas resources across the country, and we must takeadvantage of this American-made source of energy. Crude oil has and willcontinue to be the fuel of choice for our country’s transportation needs, andthe same technological advancements that have opened new natural gas fieldshave spurred increased crude oil production across the country. Our nationneeds a balanced energy policy that supports the production of crude oil andnatural gas. Q: What does the industry need from the government to flourish? A:We need to be left alone. Without government interference, the oil and naturalgas industry has increased production of both oil and natural gas and developednew techniques to extract fossil fuels from areas once thought unreachable.Without burdensome and unnecessary regulatory programs or crippling taxesleveled at the industry, oil and natural gas producers can develop new andbetter methods to extract oil and natural gas from the earth, enhancing U.S.energy security and helping our nation recover from a recession.

Dear Mr. Bromwich, IfYou’re Looking for Cash to Run Your Agency, Here’s a Formula That Works: LeaseSales = Revenue. Drilling = Production = Royalty Revenue. Politico (11/9) reports, “Offshore drilling reforms implemented in thewake of the Gulf of Mexico oil spill may be in jeopardy unless Congressapproves a substantial cash infusion, the administration’s industry watchdogtold a panel of investigators today. Michael Bromwich, director of the Bureauof Ocean Energy Management, Regulation and Enforcement, told the commissioninvestigating the spill Tuesday that efforts to ensure the safety of offshoredrilling operations — including hiring new personnel to scrutinizepermits and inspect rigs — could fail without more funding. “I’m deeplyconcerned that without the resources we requested … the changes and reformsthat we have pursued and continue to pursue will not be realized,” Bromwichtold the oil spill commission. Industry groups and some lawmakers objected toan administration proposal to pass on increased inspection fees throughpermits, Bromwich said. Reaction to that proposal on Capitol Hill was“decidedly mixed, and there was substantial opposition from industry to raisedfees,” he said. BOEMRE was created from the former Minerals Management Servicethis summer, in the middle of the spill that left 4.9 million barrels of oil inthe Gulf of Mexico.”

Energy Finally Getting SomeAttention on the Energy Committee,‘Bout Time, if You Ask Us. Washington Times (10/9) reports, “The chairmanship of theHouse Energy and Commerce Committee is emerging as one of the top prizes of thenew Congress, and a collection of powerful House GOP members already areangling for the post. Florida Rep. Cliff Stearns said in an interview Tuesdayhe was definitely in the race, provided that the panel’s current rankingRepublican, Rep. Joe L. Barton of Texas, does not obtain from the HouseSteering Committee a waiver of term-limit rules to reclaim the gavel he hadbefore the Republicans lost their House majority in 2007. GOP Reps. Fred Uptonof Michigan, a 12-term incumbent, and John Shimkus of Illinois, now in hisseventh term, also are vying to head the influential committee. Minority LeaderJohn A. Boehner of Ohio, who heads the steering committee, has had a tenserelationship with Mr. Barton and is widely speculated to be ready to deny theTexan’s request, potentially creating a lively three-way race for the position."I think Mr. Barton has done a good job … [but] if he does not get awaiver, then I want to offer my hat to the leadership," Mr. Stearns toldThe Washington Times on Tuesday. Mr. Shimkus is considered a long-shot for thechairmanship, particularly since his seniority lags that of Mr. Upton and Mr.Stearns. But some steering committee members may view him as a suitablecompromise candidate if Mr. Barton isn’t granted a waiver.”Note: Politico also reports.

Siren: Politics TrumpsScience Once Again in Obama Admin; Interior IG Finds That WH Tampered With PeerReviewed Report.Politico (11/10) reports, “The White House rewrote crucial sections ofan Interior Department report to suggest an independent group of scientists andengineers supported a six-month ban on offshore oil drilling, the Interiorinspector general says in a new report. In the wee hours of the morning of May27, a staff member to White House energy adviser Carol Browner sent two editedversions of the department report’s executive summary back to Interior. Thelanguage had been changed to insinuate the seven-member panel of outsideexperts – who reviewed a draft of various safety recommendations –endorsed the moratorium, according to the IG report obtained by POLITICO. “TheWhite House edit of the original DOI draft executive summary led to theimplication that the moratorium recommendation had been peer-reviewed by theexperts,” the IG report states, without judgment on whether the change was anintentional attempt to mislead the public. The six-month ban on offshoredrilling installed in the wake of the Gulf of Mexico oil spill became a majorpolitical issue over the summer, as Gulf State lawmakers and industry groupscharged the White House with unfairly threatening thousands of jobs. House Republicanshave said they plan on investigating the circumstances surrounding themoratorium when they take power next year.”

Headline Says It All: “China’s energy demand to leap 75%…” That Demand will bePowered by Fossil Energy. The Sidney Morning Herald (10/11) reports, “CHINA willdrive a surge in world energy demand over the next quarter century, asstraining supply enhances OPEC’s oil market share and growing coal useundermines efforts to contain global warming. In its annual world energyoutlook, the International Energy Agency forecasts Chinese demand will jump by75 per cent, accounting for more than a third of the rise in energy use thatwill lift global consumption to 16.7 billion tonnes of oil by 2035. Oilsupplies will be pushed close to their peak, thwarting European Union effortsto limit the rise in global temperature to 2 degrees. ”Oil market developmentsand growth in CO2 emissions are my greatest concern,” the chief economist ofthe IEA, Fatih Birol, said. ”Demand from emerging markets will be strong.There is a lack of united political will to reduce carbon emissions.” Globaloil demand will rise by 18 per cent from 84 million a day in 2009 to 99 millionbarrels a day in 2035, the agency said. It lowered its 2035 estimate for oiluse by 6 million barrels a day because of EU pledges to curtail carbonemissions under the Copenhagen accord signed in December. Oil supply ”comesclose” to reaching a peak by 2035, driving prices up from about $US86 a barreltoday to $US113 a barrel in 2009 terms, the agency said.”

Europe Walkingthe Plank, Again. Top EU Energy Official Pledges $1.4 Trillion in EnergyInvestment – Cash to Come From Increased Taxes, Industry. UPI (11/10) reports, “Europe’s top energy official Wednesday unveileda strategy to spend about $1.4 trillion over the next decade on a common EUenergy network to help blaze a trail into the new energy age. EnergyCommissioner Guenther Oettinger said the investment is needed to ensuresecurity of supply, fair competition and a sustainable energy mix across the27-member body. The strategy will include incentives to save energy inbuildings and infrastructure as well as fast-tracking key infrastructureprojects. "Putting our energy system onto a new, more sustainable andsecure path may take time but ambitious decisions need to be taken now,"Oettinger said in a statement. "To have an efficient, competitive andlow-carbon economy we have to Europeanize our energy policy and focus on a few,but pressing, priorities." The $1.4 trillion would come from a combination of industry cashand taxes, and to a much lesser degree, from EU funding. Brussels is expectedto commit cash to selected transnational pipeline and power grid projects inits infrastructure strategy, to be unveiled next week. Linking the continent’senergy infrastructure is a key priority for the commission, which wants tobetter integrate the fluctuating renewable energy sources into the agingEuropean grid.

Sgamma:Responsible Energy Development and Wilderness, Can, and Do, Co-Exist. Kathleen Sgamma (11/10) writesfor the Denver Post, “The West is blessed withabundant public lands, but decisions are made by a distant bureaucracy. Becausethe federal government controls more than 36 percent of Western lands, statesare often hamstrung when making decisions that directly affect jobs, economicactivity and state revenue. Policymakers’ decisions on how best to balancepublic lands are not helped by the spread of misinformation such as that foundin this Denver Post editorial. The Post is just plain wrong that once anactivity like oil and natural gas development occurs, wilderness qualities aregone forever. Western producers develop 27 percent of America’s natural gas onjust 0.07 percent of public lands, and reclaim the land to such an extent thatthose with prior and even active development are now among those proposed forwilderness designation. By discarding the erroneous notion that development andtreasured landscapes are mutually exclusive, we can better balance public landspolicies with job and national wealth creation. Americans must be fullycognizant of the tradeoffs when considering proposals to add to the 109 millionacres of existing wilderness. The editorial also totally misrepresents asettlement agreement between the Interior Department and Utah which finallyrecognized that the timeline for the Bureau of Land Management to designatewilderness areas had run out in 1991, as specified by law. That agreement doesnot affect the ability of Congress to pass laws designating new wildernessareas, but merely states that Interior cannot act on its own.”

ObamaAdmin. Touts Job Creation as Number One Priority, Except When They’re EnergyJobs – that’s the Case in Alaska Where Shell has 35,000 Jobs on Stand By.New York Times (11/5) reports, “Eager to win approval forits stalled plan to drill for oil in the Alaskan Arctic, Royal Dutch Shell isbeginning a public lobbying campaign, including national advertising, onMonday. As part of the effort, the giant oil company is promising to makeunprecedented preparations to prevent the kind of disaster that polluted theGulf of Mexico earlier this year. Shell’s plan to drill in Alaska’s Beaufortand Chukchi seas has been snarled in regulatory delays and lawsuits for fouryears. The company has already invested $3.5 billion in the projects, and itwas close to overcoming the final regulatory hurdles to begin drilling whenBP’s Macondo well blew out April 20, killing 11 rig workers and spillingmillions of barrels of oil into the gulf. In response to the gulf accident, theObama administration suspended most new offshore drilling, including in theenvironmentally sensitive waters of the Arctic. But now that the moratorium ongulf drilling has been lifted, Shell is pressing the Interior Department togrant final approval for its Arctic projects by the end of this year so thatthe company has enough time to move the necessary equipment to drill nextsummer, when the waters offshore are free of ice. “Every day we’re delayed,we’re delaying jobs and energy development,” Peter Slaiby, Shell’s vicepresident for Alaska, said in an interview. “It’s a crushing irony that theGulf of Mexico moratorium is lifted and we are not allowed to move forward.”

Meanwhile,In India, Pres. Obama Signs Accord to Assist Host Country in Developing ShaleGas Resources, Jobs; At Home, EPA Still Trying to Shut Down Industry.Reuters (11/8) reports, “India and the United States have agreed tocooperate on energy projects, including shale gas and clean energy, IndianPrime Minister Manmohan Singh and U.S. President Barack Obama told a press conferenceon Monday. The two countries will set up a research and development center forclean energy in India and will provide annual funding of $5 million each forfive years, with matching investment from the private sector, they said in ajoint statement. "We agreed to deepen our co-operation in pursuit of cleanenergy technologies, including the creation of a new clean energy researchcenter here in India, and continuing our joint research into solar, biofuels,shale gas and building efficiency," Obama said. The statement said initialpriority areas for the research center would be "solar energy,second-generation biofuels and building efficiency." The agreementinitially runs for 10 years. India, which has one of the world’s lowest powerconsumption rates per capita, has set a power generation target of 62,000megawatts by March 2012. The agreement on shale gas calls for the United Statesto carry out studies on resources and for cooperation on identifying areas withshale gas potential. Indian personnel will be trained in assessing resources.”

Big Windand Big Solar Looking for “Guaranteed Market” to Force Consumers to PurchaseTheir Product; Never Mind that It’s Expensive and Unreliable. New York Times (11/8) reports, “Michael Polsky’s wind farmcompany was doing so well in 2008 that banks were happy to lend millions forhis effort to light up America with clean electricity. But two years later, Mr.Polsky has a product he is hard-pressed to sell. His company, Invenergy, had acontract to sell power to a utility in Virginia, but state regulators rejectedthe deal, citing the recession and the lower prices of natural gas and otherfossil fuels. “The ratepayers of Virginia must be protected from costs forrenewable energy that are unreasonably high,” the regulators said. Even as manypoliticians, environmentalists and consumers want renewable energy and reduceddependence on fossil fuels, a growing number of projects are being canceled ordelayed because governments are unwilling to add even small amounts toconsumers’ electricity bills. Electricity generated from wind or sun stillgenerally costs more — and sometimes a lot more — than the power squeezedfrom coal or natural gas. Prices for fossil fuels have dropped in part becausethe recession has reduced demand. In the case of natural gas, newer drillingtechniques have opened the possibility of vast new supplies for years to come. Thegap in price can pit regulators, who see their job as protecting consumers fromunreasonable rates, against renewable energy developers and utility companies,many of which are willing to pay higher prices now to ensure a broader energyportfolio in the future.

RentSeeking Corporations Who Lined Up for $16.8 Billion in Expensive EnergyHandouts Worried That the Trough May Run Dry in Months Ahead.CNN(11/5) reports, “Companies in renewable energy industries are trying to figureout how to navigate the swing rightward from the midterm elections. Startingwith the worst casae scenario, projects that received some of the $16.8 billionin stimulus funding allocated to the Office of Energy Efficiency and RenewableEnergy in 2009 could now be left to wither, without getting the chance toreturn the promised green megawatts per dollar invested. Right now, though,It’s unclear how renewables funding will play out. Here’s what we know:Republicans took the House but lost the Senate. Harry Reid, a longtime championof renewables — especially geothermal energy — retained his Senate seat andis all but certain to remain Majority Leader. As with all new legislation, thesplit amongst the two chambers means that every new or reauthorized energyprogram will have to have support from both sides of the aisle to win approval.The end of either tax credit could man that venture capitalists investing ingreen energy could redirect funding away from startups, thanks to thewithdrawal of government support that helps make green energy economicallyviable. "Elections can change the landscape at a time when renewablesdon’t need to change," says Dan Kunz, CEO of US Geothermal, which receivedover $3 million in stimulus funding. "A stable funding environment over along period of time, like four or five years, is far better than these startsands stops."

Keep ThisClip Away from the Ethanol Crowd. New “Study” Out of Europe Finds Bio-Fuels 167Percent Worse for Environment than Gasoline, Diesel.Bloomberg (11/7) reports, “Biofuels targets in the European Union couldraise emissions of greenhouse gases because forests and wetlands will bedestroyed to grow the crops necessary, nine environmental groups said in astudy. Energy targets for 23 of the EU’s 27 members suggest 9.5 percent of thebloc’s transportation energy will come from biofuels by 2020, said the groups,which include Friends of the Earth, Greenpeace and ActionAid. The crops mayneed an area twice the size of Belgium, and clearing the necessary land couldmake the fuels 167 percent more polluting for the climate than sticking withgasoline and diesel, they said. “Biofuels are not a climate-friendly solutionto our energy needs,” Laura Sullivan, ActionAid’s European policy and campaignsmanager, said in the statement. “The EU plans effectively give companies ablank cheque to continue grabbing land from the world’s poor by growingbiofuels.” The EU aims to get 10 percent of its energy for transportation frombiofuels, hydrogen and renewable power by 2020. The target is meant to reducegreenhouse gas emissions by 20 percent by 2020. EU energy spokeswoman MarleneHolzner said the targets require less land than the study suggests and that EUguidelines prevent the use of deforested land.”

This Won’tEnd Pretty. Iran Teams up with Lebanon to Develop Mediterranean Oil/Nat GasResources. One Problem, Israel Owns the Resource. UPI(11/8) reports, “Tehran believes its experience in the energy sector could helpLebanon tap into oil reserves in eastern Mediterranean waters, an officialsaid. Hassan Ahmadian Sahi, a director general of international development atIran’s Oil Ministry, told the semiofficial Fars News Agency that Tehran couldhelp Beirut tap into its offshore oil reserves. "The details and the valueof the contract and other relevant issues are yet to be determined," hewas quoted as saying. "We have not made any commitment in this regard yetbecause the feasibility studies should be conducted before we can involve init." Lebanon and Israel are at odds over the rights to tap into theLeviathan natural gas field. Beirut contends that a portion of Leviathan lieswithin its maritime borders. Hezbollah has told Israel not to touch Lebanon’sresources, spurring threats of force from the Israelis. Iranian legal officialsmaintain their counterparts in Lebanon have the right to exploit the naturalresources that exist in its territorial waters. "No contract has been heldon oil exploration in Lebanon’s joint oil field with the Zionist regime and theissue is merely at the level of a general understanding," Ahmad Khaledi,the deputy oil minister for international affairs, was quoted by Fars assaying.”

Message toMitch and the Senate: Lame Duck Energy “Compromise,” Renewable ElectricityMandate Raw Deal for American People.E&E News (11/5) reports, “President Obama andRepublicans have repeatedly highlighted energy as an area where compromise andprogress can be found over the next two years after the tumultuous and partisanmidterm elections. But the prospects for any progress will land squarely on theshoulders of a few Democratic and Republican senators who can successfullynegotiate and woo allies from the other party. But who will step up? Who hasthe political incentive to fill the leading and supporting roles on energy andenvironmental policy to overcome the fallback position of gridlock? Sen. JeffBingaman (D-N.M.), chairman of the Energy and Natural Resources Committee, andhis GOP counterpart on the committee — whoever that turns out to be — are ashoo-in for major roles. Despite passing a bipartisan energy bill out of thecommittee in 2009, Bingaman largely ended up playing a secondary role this yearto Sens. John Kerry (D-Mass.), Joe Lieberman (I-Conn.) and Lindsey Graham(R-S.C.) as they led the Senate’s efforts on a climate and energy bill. Thebill ultimately fizzled out, along with Kerry and Lieberman’s key roles on theissue. "The type of legislation that Lieberman was involved in in the pastis now fairly put to the left of what the new Senate will tolerate," saidScott Segal, an industry attorney at Bracewell & Giuliani. Alexander alsohas been an author of several bills boosting electric vehicles and nuclearpower, two other areas Obama and McConnell have said could be negotiableissues.

Headline Saysit All, “Memo to new Congress: Don’t take the renewable mandate bait.” Nick Loris and Jack Spencer (11/5) for the Bellingham Herald, “Imagine if the government made you spend20 percent of your family’s food budget on asparagus. It might be costlier thanother vegetables, but Congress and the president say it’s good for you.Asparagus producers are ecstatic – no more competing with other vegetables foryour business. And because there’s a mandate, they don’t even have to worryabout lowering costs. Other farmers respond by replacing their less-expensivecrops with the costlier, mandated vegetable. In the end, consumers are stuckwith less choice and higher prices. Sounds absurd, right? Well, it’s what wouldhappen to our electricity bills if Congress passes a Renewable ElectricityStandard. An RES would force Americans to purchase a pre-determined percentageof their electricity from certain energy sources that Washington bureaucratsdeem acceptable, like wind or solar, which featured prominently in last year’sfailed "cap and trade" legislation. Tuesday’s election likely killedany hopes of Congress passing a cap-and-trade bill anytime soon, but an RES,which has garnered bipartisan support, is still in the cards. Chalk RES up asanother policy that will increase the cost of living and curtail liberty forAmericans. An RES will eliminate competition, drive prices higher, and encouragegovernment dependence.”

Up-ton theAnte. Michigan Rep. Lays out First Order of Business Should he Gain E&CGavel: Get the Architect of the Cap-and-Raid Before the Committee.The Hill (11/4), “A Michigan Republican lawmaker is promising to makethe White House climate czar a familiar face by repeatedly bringing her infront of the House Energy and Commerce Committee. Rep. Fred Upton, who isgunning to chair the powerful panel, vows to end “the free pass ofzero-accountability for Obama czars” such as White House energy adviser CarolBrowner. “Given her extensive influence within the administration, one wouldthink [current Energy and Commerce Chairman Henry] Waxman would want to hearher at some point,” Upton writes in a Nov. 1 column in the conservativepublication Human Events that is being circulated around town by his staff. “Givenher absence from Capitol Hill for the last two years, there is little doubtthat she will surely become a familiar face with Republicans in charge. We havequestions, and the American people deserve answers,” the column adds. Upton’scolumn calls Browner the Obama administration’s “point person for a massiveeconomy-killing national energy tax in the form of a cap-and-trade scheme.” Butmore broadly, it takes aim at Obama’s use of “czars,” or high-level adviserswho are not confirmed by the Senate. Czars are common targets of conservativeire even though presidents from both parties have surrounded themselves withthem.”

Welcome toNamibia, Home to an Estimated 166 Billion Barrels of Oil Offshore. Guess What?They Want to Drill For it Too.Reuters (11/5) reports, “Namibia has potentially huge undiscovered offshore oiland gas fields, but a lack of data is hampering investment into the southernAfrican nation, a senior petroleum official said on Friday. Namibia, largelyknown for its uranium deposits, has the same geological formations as Brazil,where recent oil finds has raised hopes for similar finds across the Atlantic. "Asfar as we are concerned the recent estimates suggest offshore Namibia containsabout 166 billion barrels of original oil in place, the mean prospectiveresources are about 42.6 billion barrels of oil, and 128.8 (trillion cubicfeet) of gas prospective resources," Immanuel Mulunga, petroleumcommissioner at the Ministry of Mines told an African oil conference. However,only 16 wells have been drilled along the country’s vast coastline, half ofthem in the Kudu gas field, Mulunga added. Mulunga said Namibia had thepotential to become a major African oil producer, where big finds in Uganda andGhana have spurred investors to frontier markets not usually associated withoil production. "Recent results could locate offshore Namibia as one ofthe larger oil and gas resources contained in the west African coast,"Mulunga said.”

RefineriesRunning at Full Capacity, Record Levels, to Fuel Robust Economy, in China.Shanghai Daily (11/5) reports, “CHINA’S two State-ownedoil refiners are boosting crude processing to record levels as the nationbattles a diesel shortage in some regions amid higher-than-expected demand. Seasonalconsumption is being triggered by farmers and fishermen. Exceptional demandcomes after government power restriction on the industrial sector — a move tomeet national energy efficiency targets — prompting some factories to usetheir captive diesel generators, analysts said. Sinopec, China’s largestrefiner, said yesterday it plans to increase oil processing 9.9 percent to583,000 tons a day this month from a year earlier, exceeding the October recordby 5,900 tons a day. It will reward units that beat their diesel productiontargets. It’s also limiting kerosene output to spare capacity for diesel andhas arranged immediate imports of 200,000 tons of diesel to regions sufferingtight supplies. Rival China National Petroleum Corp said today it will continueprocessing crude at a record high level — 400,000 tons a day reached onWednesday– for the remainder of the month. CNPC plans to expand daily dieseloutput to 168,000 tons in November from 158,000 tons in October. Sinopec saidit’s "sparing no effort" to ensure market supplies while CNPC calledthe measures to boost diesel production both a "politicalresponsibility" and "social responsibility."

You EverHear of the “UN High-Level Advisory Group on Climate Change Financing?” UsEither. Just Know that Soros and Summers Have a Seat at this Table. Bloomberg (10/5) reports, “At least $65 billion could be raised bytaxing foreign-exchange transactions and auctioning pollution permits, a UnitedNations panel recommending ways to finance aid for fighting global warming willconclude today, according to a draft of its report. The panel, which includesbillionaire George Soros and Larry Summers, director of President BarackObama’s National Economic Council, estimated that selling carbon emissionspermits could generate $38 billion and a financial transactions tax anadditional $27 billion, according to the draft dated Oct. 4 and obtainedyesterday. The UN will release the study in New York today. The findings areintended to guide envoys at UN climate talks that start this month in Mexico asthey seek ways to pay for $100 billion in climate aid that was pledged to poornations by 2020 at last year’s summit in Copenhagen. The draft report foundthat the goal is “challenging but feasible” to achieve. UN Secretary GeneralBan Ki-moon appointed the panel, called the High-Level Advisory Group onClimate Change Financing, in February. It’s led by Ethiopian Prime MinisterMeles Zenawi and his Norwegian counterpart Jens Stoltenberg. The 21-membergroup also includes Soros, Summers and Deutsche Bank AG Vice Chairman CaioKoch-Weser. “

Cap-and-Spayed: Real SimpleMessage Emerges from 2010 Elections: If You Voted for Cap-and-Raid in aDistrict Where Folks Were Actually Awake, You Lost. Politico (11/3) reports, “Democrats who voted for the controversialHouse climate bill were slaughtered at the ballot box, including Rep. RickBoucher, the 14-term Virginian who helped broker some of the key dealsinstrumental to its June 2009 passage. In the Senate, several reliable green advocatesalso went down to opponents who derided tough new environmental policies.There’s no hiding the House Democrats’ bloodbath, with more than two dozenmembers who voted for the Pelosi-led climate bill losing their seats, and morelikely to fall as the final tallies come in. The outcome sends a strong signalto moderate lawmakers as they consider any risky votes in future Congress’ onenergy and environmental issues. "It’s going to be cap and tax forevermore, and I don’t think any of these guys are ever going to touch itagain," said Linda Stuntz, an industry attorney who held a top EnergyDepartment spot during the George W. Bush administration. "I think anyonewho thinks there’s vitality left is kidding themselves." "I don’t thinkthere’s any question about it, cap and trade was the issue in thecampaign," Andy Wright, a former Boucher chief of staff, told POLITICO."If Rick had voted no, he wouldn’t have had a serious contest."

God Bless ‘Em: EnvirosStill Completely Clueless About What Went Down Last Night; Still PredictingCongress Will Pass Mandates In Support of Expensive Energy. E&E News(11/3, subs. req’d) reports, “Environmental groups refused to speculate lastnight on what the election results mean until the polls closed and races weredecided. But they would say that there are some areas where progress can bemade through incremental legislation and at the state level — a change oftactic that was already in the making before the House switched hands. TonyMassaro, senior vice president for political affairs and public education forthe League of Conservation Voters, said LCV is going to push for new renewableelectricity standards, increased appliance and building efficiencies, andincreased automobile efficiencies. "Those are the kind of things we aregoing to push through the next Congress regardless of what the makeup lookslike," he said. Whatever the makeup of the new Republican-led Congress,REP President Rob Sisson said the party cannot afford to abandon theenvironment, and he conceded that his group must do more to give voice toRepublican environmentalists around the country. In the next two years, Sissonsaid his organization plans to build a grass-roots effort of environmentallyfriendly Republicans so that the issue is not ceded to the Democrats.

Meanwhile, These SolarLobbyists Ain’t No Dummies – Work Quick to Congratulate GOP on Win,Remind the Press They’ve Got Plenty of Cash to Grease Them Too.The Hill (11/2) reports, “With big GOP gains looming on election night,the solar-energy industry’s main trade group put out the word that they’reeager to work with both parties. In a prepared statement Tuesday evening, SolarEnergy Industries Association CEO Rhone Resch noted that, “No matter who winsTuesday’s midterm elections, we stand ready to work with them to continueadvancing solar energy.” His statement steers clear of calling forcontroversial policies like climate legislation or a nationwiderenewable-electricity standard. And it notes that key industry tax credits werecreated during a GOP Congress and later extended under President George W.Bush’s watch. Solar-industry officials from around the country will be in D.C.next week for a summit to hammer out the industry’s policy goals for the comingyear, a SEIA spokesman said. “SEIA looks forward to working with the newCongress and leaders from both parties, just as we have for the past 36 years.We also hope that the 111th Congress closes on a positive, bipartisan noteduring the lame duck session by passing policies that have helped drive solar’sdynamic growth this year,” Resch said.

LA Times FinallyAcknowledges “Pure Spin” Peddled by Backers of A.B. 32 – Was Never CA vs.TX; Was Always Greens vs. Greeners. LA Times (11/3) reports, “The fight over Proposition 23, the ballotinitiative to suspend California’s global warming law, "will definitely bea David versus Goliath battle," Steve Maviglio, spokesman for theopponents told a reporter in September. "Our slingshot versus their oilyclub." From the get-go, that’s how environmentalists characterized theirstruggle against Prop. 23 which, based on early returns, appears to beresoundingly defeated. But it was pure spin. As they say in the movie, "Followthe money." Two Texas-based oil refiners, along with California businesstrade associations and anti-tax activists thought they could halt the nation’smost ambitious effort to curb greenhouse gas emissions. But they were able toraise only $10.6 million. Most of California’s biggest companies, includingChevron, Pacific Gas & Electric and Sempra Energy, stayed neutral oractively opposed the initiative. Celebrities such as Edward James Olmos,Leonardo DiCaprio, Robert Redford and "Avatar’s" James Cameron urgeda "no" vote. And Gov. Arnold Schwarzenegger stumped across the stateattacking the "self-serving greed" of Valero Energy Corp. and TesoroCorp., the two San Antonio-based refiners that were the principal funders.

Sante Fe Surprise: N.M.Enviro Board Knows It Has 2 Months to Install Cap-and-Raid Program Before NewAdmin Comes In – And Boy, Are They Moving Fast. ClimateWire(11/3) reports, “New Mexico regulators approved a state plan yesterday toestablish a cap-and-trade program to cut greenhouse gases. The 4-3 decision bythe New Mexico Environmental Improvement Board (EIB) authorizes New Mexico’sparticipation in the Western Climate Initiative, making it the second stateready to join the carbon market created by a group of U.S. states and Canadianprovinces. Opponents immediately vowed to appeal the decision. DeborahSeligman, spokeswoman for the New Mexico Oil and Gas Association, said hergroup and others that sued the EIB this year challenging its jurisdiction willdecide on a course of action within the next two weeks. "There were a lotof missteps on the part of the Environment Department or the EIB that areappealable," she said. She indicated that legal action might focus onwhose air the state could control or on the lack of a standard for greenhousegas air concentrations. Sandra Ely, environment and energy policy coordinatorfor the Environment Department, said the state would immediately beginimplementing the plan. "We’ll move forward on this until we’re told notto," she said.

Remember That Cap-and-RaidProgram Known as “RGGI” Back East? May Go the Way of the Dodo Owing to theResults of the Election Last Night. ClimateWire(11/3, subs. req’d) reports, “The fate of state cap-and-trade programs,renewable energy programs and coal plant permits rests with the incoming groupof governors. They also will play a major role in determining which lawmakershead to Congress as part of the once-a-decade redistricting process in the wakeof the 2010 census. That could determine who casts votes for climate and energylegislation in coming years, if global warming returns to the top of thecongressional agenda. Governors can influence the review process by choosingappointees to attend negotiations, among other things. Additionally,Massachusetts, New York and Connecticut hold the majority of the initiative’scarbon allowances, so what happens with the rest of New England holds lesssignificance, said Stacy VanDeveer, a professor at the University of NewHampshire. "If Maine were to try and pull out of the program, it wouldn’tmatter as much, because it’s small in comparison to the other threestates," he said. Maine’s Republican candidate for governor, Paul LePage,did not outline his position on RGGI, but did sign a "no climate tax"pledge from Americans for Prosperity.

EPA Pushes Back New OzoneRules to Give Some Relief to Beleaguered Supporters in Congress – ButToday’s Nov. 3, and the Game Is Back On.NY Times/Greenwire (11/2) reports, “Though the Obama administration wasinitially expected to issue stricter smog standards this summer, U.S. EPA nowsays it may not be ready to release a final rule until New Year’s Eve. EPA iscurrently reconsidering the George W. Bush-era changes to the National AmbientAir Quality Standards for ground-level ozone, which is the main component insmog. A final decision is now scheduled to come by Dec. 31, the agency told afederal court yesterday. "Completing this rulemaking has taken longer thananticipated," the filing says. "EPA expects that this process will takean additional two months." It is the second time EPA has taken anextension on the smog standard. This summer, as the August deadline neared, theagency told the court it was planning to issue a final rule "on or aboutthe end of October." Some close observers suggested that the agency wouldwait until after the election to avoid a political backlash. The revisionprocess has prompted a war of words between businesses, which would need tospend billions of dollars on new pollution controls, and advocacy groups, whichare urging EPA to issue rules that protect the public from respiratory problemsand heart disease.

Working WITH MarcellusProducers in PA (Imagine That!), DEP Launches New Site with Information onEvery Single Thing You’d Ever Want to Know About Wells, Water, Etc.Scranton Times-Tribune (11/3) reports, “Those interested ingetting public information about a well in their neighborhood, for example,used to need internal information, such as a permit number, she said.Violations often were not associated with the well or permit number or aspecific well. The gas exploration industry is pleased with the site as well.It helps insulate them from accusations that they are keeping information fromthe public, industry leaders said. Violations also are more detailed. Once,violations were often maintained under broad categories that gave few or nodetails about the violation. The public had to request an in-person file reviewto see the violation reports. The new site makes available violationspreadsheets that include inspectors’ notes, which often include details aboutthe type and severity of the violation. Kathryn Klaber of the Marcellus ShaleCoalition, an industry trade group, said her group supported the legislationthat led to the higher-level reporting. She said the data, particularly theproduction data, is also a valuable planning tool for the industry. Beyondthat, she said the transparency also may increase the level of trust betweenthe public and the industry.

Bifurcation Station: GreensAlready in Spin Cycle Pre-Butting Election Results Tonight – InsistVoters Aren’t “Thinking About” Cap-and-Raid, Just the Economy (!)ClimateWire(11/1, subs. req’d) reports, “President Obama was still trying to motivate hisbase on the eve of elections. He has campaigned hard to turn out the vote forweeks. Yesterday, he gave campaign-themed interviews to radio stations inFlorida, Ohio, Pennsylvania and Wisconsin — all battleground states whereDemocrats could lose seats. Republican Senate candidate Christine O’Donnell, onthe other hand, is using anti-climate messaging to drive her own base to thepolls in Delaware. O’Donnell, who beat cap-and-trade supporter Rep. Mike Castlein a Republican primary, is warning voters that Democrat Chris Coons couldsupport a similar carbon plan this fall. Still, the midterm elections areunlikely to pivot on climate issues. The stubborn economy and unemployment holdpriority with voters. Joshua Freed, director of the Clean Energy Initiative atThird Way, a think tank for centrist Democrats, cautions about reading too muchinto the nation’s attitude on climate change through the election results."They’re voting on the economy," he says of voters. "People arenot flocking to the polls thinking about the president’s energy policy one wayor another."

In Retirement, Veritas:Outgoing House Dem Who Voted for Cap-and-Raid Says Bill “Didn’t AccomplishMuch, Was Enormously Complicated and Expensive.” John Fund reports (11/2) for the Wall Street Journal, “When President Obama was elected in 2008,Mr. Baird was again optimistic that Democrats could bring real reform. Butfierce Republican partisanship and the White House decision not to focus on jobcreation as its "number one, two and three" priority dashed thathope. "Obama decided we weren’t going to have a highway transportationbill because it might have required a gas tax increase," he recalls. Afterpassing a misdirected stimulus bill, Mr. Obama made the fatal error of pushingforward with other priorities: cap and trade, financial services reform, ObamaCare.Each became compromised quickly. "You don’t get real reform by panderingto every special interest. With cap and trade we wound up with a bill thatdidn’t accomplish much, was enormously complicated and expensive." Mr.Baird is especially upset that "good solid members will lose this fallbecause they took a tough vote for a cap-and-trade bill that never made itthrough the Senate." He has told environmental groups that they lost sightof the goal of reducing carbon emissions by focusing on the minutia of regulationto achieve it.

What Might a GOP Wave Meanfor the House Resources Cmte? Well, Might Mean that Rahall Doesn’t Have to BeJohn Lawrence’s Errand Boy Any Longer.Politico (11/2) reports, “Republicans and energy lobbyists say thatshould change should the GOP take control. “The Republicans have got to decidewhether that committee should continue to be a parks and recreation committeeor whether they should get their s—- together and be a powerhouse,” saidan energy lobbyist close to the panel. West Virginia Democrat Nick Rahall, thepanel’s chairman since 2007, has won kudos from the environmental community forhis efforts to shepherd a host of wilderness bills through the committee and tooverhaul federal onshore oil and gas and geothermal stream leasing systems. Buthe’s come under fire from the right for being too subservient to theenvironmental community and House leadership – namely Speaker NancyPelosi. Rep. Rob Bishop of Utah, in line to chair the Parks, Forests andPublic Lands Subcommittee, said Rahall is a decent person, but he always gotthe feeling that the chairman “had limitations placed on him coming from thespeaker’s office.” Pelosi’s chief of staff, John Lawrence, was staff directorof the Natural Resources Committee under former Chairman George Miller(D-Calif.) and a former Republican committee aide suggested that he may bepulling the strings of the committee from Pelosi’s office.

Bode In Motion: AWEA ChiefFuming Mad that Big Wind’s Association with Chinese Manufacturers AttractingAttention Outside Washington Beltway.Wall Street Journal (11/2) reports, “At least a dozen adsportray stimulus spending on wind power or renewable energy as an example ofwaste. Another dozen or more allege the stimulus sent jobs overseas to China.None explicitly calls for ending the tax breaks for the wind-power industryonce they expire this year, but the wind association fears the criticism willmake them harder to renew. The Republican campaign committee claims it hasidentified 11 U.S. wind farms that used stimulus grants to buy wind turbines,with 695 of the 982 total coming from overseas suppliers. The Republican groupis calling for more stringent Buy American provisions throughout the stimuluspackage. General Electric Co., the largest wind turbine maker in the U.S., with40% of installed capacity, said orders dropped by 30%, or $600 million, in thethird quarter. The company, which has roughly $5 billion in wind turbinerevenue each year, wants to expand by selling more units in China and the U.K.GE’s chief wind turbine rival globally, Vestas Wind Systems A/S of Denmark,said Tuesday it could cut 3,000 jobs at three plants in Denmark and one inSweden to stay competitive.

Fig Leaf Is Gone: Facingthe Re-Elect Fight of His Life, Rep. Hinchey Panders to Most Radical Elementsof the Anti-Marcellus Set in NY – Gets Huge Influx of Cash from TheirPAC. Binghamton Press & Sun-Bulletin (11/1) reports, “Hinchey has been a criticof fracking — a drilling technique where a water, sand and chemical mix isblasted underground to break shale and release gas — and has authored federallegislation that would require greater chemical disclosure for gas companies.Phillips, meanwhile, has offered praise for the industry and pointed to thepotential economic benefits it could bring to the state. An article in the NewYork Times on Friday said the vote "could become the first publicreferendum on shale-gas drilling and hydraulic fracturing." Drilling inthe Marcellus Shale formation, which stretches across the Southern Tier andmost of Pennsylvania, has been on hold in New York since 2008 as the statefinalizes its permitting guidelines. "I believe we can do it safely,"Phillips said at a GOP rally in Vestal on Saturday. "I think it’s justcritical for our area here when it comes to jobs and we can move forward withsafe environmental standards. I intend to be an advocate, and I think the statecan handle it." Addressing the media Monday before the film, Hinchey saidhe would not support gas drilling until any toxic chemicals used in the processare eliminated, though companies have said the chemical mix used is crucialduring the fracking process. "We need to make sure that this dishonest,irresponsible drilling does not take place in New York," Hinchey said."This drilling for natural gas is dangerous and completely dishonest.

Here’s One for You: NYIsn’t Interested in Revenue that Marcellus Could Provide – Even ThoughIt’s So BROKE It Had to Scrap Its Superfund Program This Week. Albany Times-Union (11/1) reports, “Iwanowicz, who was namedto the top spot Thursday after Gov. David Paterson fired Commissioner PeteGrannis Oct. 21 over a leaked DEC memo on the dire impact of planned layoffs,also faced another major environmental downsizing during his first day on thejob. He offered few details on Paterson’s decision last week to eliminate thestate’s 30-year involvement with the federal Superfund pollution cleanupprogram. New York state is home to the nation’s largest Superfund project, thedredging of toxic PCBs from a 40-mile stretch of the Hudson River that startedin 2009 and is expected to run for years to come. He could not say how muchmoney Paterson hopes to save by pulling the state from Superfund, which is runby the Environmental Protection Agency. There are currently 114 federalSuperfund cleanup sites in the state. General Electric Co., which dischargedPCBs into the Hudson from its plants in Fort Edward and Hudson Falls, is payingfor the Hudson cleanup, which is overseen by EPA and DEC. Dave King, EPAproject administrator for the Hudson River cleanup, said no one from DEC talkedwith him about Superfund. "We hope to have some kind of workingrelationship with DEC on this project," he said

Here’s What Happens WhenYou Let Companies Look for Energy Offshore: They Find It. Just Like XOM DidThis Week Off the Coast of Nigeria.Houston Chronicle (11/1) reports, “Exxon Mobil Corp.’sNigerian unit said it made a “rich gas condensate” discovery off the southeastcoast of the West African nation. The Pegi discovery in the company’s OilMining License 104, 75 kilometers offshore, forms part of exploration effortsaimed at expanding output capacity and meeting growing domestic demand forfuel, the subsidiary said in an e-mailed statement today. Condensate is alow-density mixture of hydrocarbon liquids. President Goodluck Jonathan inAugust announced a plan to end the state power monopoly and allow privatecompanies to build gas-fired, coal-fueled and hydroelectric plants to end thecountry’s power shortages. Nigeria has natural gas reserves of 185 trillioncubic feet, the world’s eighth-largest, according to the U.S. EnergyInformation Administration. Exxon Mobil holds a 40 percent stake in a jointproject it operates for state-owned Nigerian National Petroleum Corp. Theventure produces 700,000 barrels a day of oil, condensate and natural gasliquids, according to the statement.