November 11, 2010

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.

 

 

November 10, 2010

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.”

 

November 8, 2010

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.”

 

 

November 5, 2010

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. “

 

November 3, 2010

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.

 

 

November 2, 2010

 

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.

 

November 1, 2010

 

 

Don’t Call It a Comeback:Or Maybe That’s Exactly What You Should Call It; Defamed by Enviros, Media,World Coal Consumption Hits 40 Year High. Bloomberg News (10/30) reports, “Chris Cline foresaw thatthe dwindling Appalachian supply, coupled with what he expected would be rulesto force all power plants to add scrubbers to remove pollutants, would makeIllinois coal attractive. If plants had to clean the coal anyway, Clinereasoned, why not use inexpensive Illinois stock? He was right. Three yearslater, the U.S. Environmental Protection Agency required power plants to addscrubbers to cut emissions. As a result of that and other market forces, thevalue of Illinois deposits quintupled during the next five years, helping Clineraise $1.2 billion to build the mines that he’s now parlaying into a fortune.In an age obsessed with global warming and green energy, coal – a combustiblerock that has generated heat for humanity for 5,000 years – is staging adefiant comeback. Condemned by environmentalists who say that digging it marsthe land and that cleaning it is impossible, coal supplied 29.4 percent of theplanet’s man-made energy last year – the highest level since 1970. Cline sayshe may reach top speed in eight years, when his sons Christopher, 16, and Alex,15, will be old enough to join the firm. He says he has no plans to sell,especially if Foresight becomes a public company that trains his boys. "There’s a good possibility they’ll be the fourth generation," Clinesays. "I’m hoping they will."

 

 

Valero’s Calif. RefineryAmong Cleanest and Most Efficient in U.S. – And Guess What? AB 32 StillWould Zap $170M from It a Year in New Compliance Costs. LA Times (10/31) reports, "Scrubbers can reduce nitrogen oxides,sulfur oxides and particulates," he said. "But there is no scrubberfor greenhouse gas." As for improving the refinery’s energy efficiency,"We replaced an aging boiler two years ago," Faichney said."We’ve put insulation in every application where it’s necessary to retainheat. Any increase in energy efficiency would be very small." In fightingAB 32, Valero officials had suggested in the past that the cost of complyingwith the law could total $170 million a year for its two California refineries,in Wilmington and Benicia. But in the conference call with analysts, Valeroacknowledged that the annual cost might be closer to $80 million. "Wedon’t have the rules or regulations or how it’s all going to work," Klessesaid. Those estimates don’t take into account California regulators’ pledge tointroduce new rules slowly in the early years, and give breaks to firms thatface out-of-state competition from unregulated competitors, such as Asian oilrefiners. But whatever the cost, Klesse said, "it will all be passedthrough to the consumer. The companies aren’t going to able to absorb this orthey’re going to go out of business."

 

 

Say It Ain’t So, Mo: Fmr.Hinchey Supporters Say Rep.’s “Endangering the Planet” By Continuing to OpposeResponsible Development of Marcellus Shale.E&E News (10/29, subs. req’d) reports, “Hinchey isperceived as the anti-drilling, anti-fracturing candidate in the race, whilePhillips’ role is the booster for drillers and fracturing. But the candidatesthemselves seek to add nuance. Phillips wants to move forward"aggressively" but only after state regulators say it is safe.Hinchey has said he wants to "make sure that this frack drilling does notoccur in New York" but clarifies that such a moratorium could be liftedafter a comprehensive study of drilling’s effects on health and theenvironment. Hinchey is a lead co-sponsor of the FRAC Act. Locally, he has alsosigned on to a drive to get Gov. David Paterson (D) to delay drilling in NewYork and start over on a state study and has leaned on the federal representativeon a regional board to slow drilling until a separate study is done. Hisapproach has angered Barbara Hirshfield, who considers herself a dedicatedenvironmentalist but sees Hinchey’s resistance to gas production aswrong-headed. She sees more use of natural gas as crucial to reining in climatechange. "Mr. Hinchey is not going to get my vote, which makes mesad," Hirshfield said, "I’ve been in lockstep with him for manyyears. But I think he’s endangering the planet."

 

 

On Day After Halloween, aQuick Look Back at Some of the Most Ghoulish (and Ridiculous) Predictions fromEhrlich, Holdren, Et. Al on Climate, Carbon, Humanity. Robert Bradley, Jr. writes (11/1) on MasterResource.org, “If I were a gambler, I would take evenmoney that England will not exist in the year 2000.” – Paul Ehrlich, quoted inJulian Simon, The Ultimate Resource 2, (Princeton: Princeton University Press,1996), p. 35. In the name of science, Paul Ehrlich, John Holdren, and JamesHansen (et al.) have made doom-and-gloom predictions about business-as-usual inan attempt to shock humanity into immediate legislative action and lifestylechanges. It did not work. The elapsed predictions have failed to come to pass.Little wonder that new installments of climate alarmism, such as JulietEilperin’s ”25% of Wild Mammal Species Face Extinction: Global AssessmentPaints ‘Bleak Picture,’ Scientists Say, and Figure of Those at Risk Could BeHigher” in the Washington Post (October 7), don’t register with voters. Worsening their predicament, theperpetrators will not renounce their specious predictions. They remain thesmartest guys in the room–versus all of us commoners, we the hundreds ofmillions of market-failure-ites. Here are the Big Three: 1) the dean of modernalarmism, Paul Ehrlich; 2) Al Gore’s influential climate scientist JamesHansen; and 3) Obama’s “dream ‘green’ team” member John Holdren.

 

 

Beats 3rd PeriodFrench: Gas Producers in PA Team Up with Local Schools to Give Kids Up CloseLook at How Natural Gas Is Harvested from Shale.WPXIPittsburgh (10/29) reports, “Experts are predicting the Marcelus Shale industrywill be around in western Pennsylvania for at least the next 50 years andthousands of people will be needed to work here. On Friday, educators met atWaynesburg University to figure out how to give students the education theyneed to get those jobs. “We are talking to the superintendents of schools andcounselors about an energy education looks like," said Barbara Kirby ofWaynesburg University. To educate the educators, a mobile energy classroompulled up at the university. Inside the trailer, videos played, showing everyaspect of the Marcellus Shale process. Channel 11 talked to a senior engineerfrom Range Resources who is already working with local schools, trying to setup a Marcellus Shale curriculum. "We will have them come in and look overthe shoulder of a petroleum engineer and an environmental engineer,” saidMichael Forgione of Range Resources.

 

 

Meanwhile, One State Overin Ohio – They’re Gonna Party This Week Like It’s 1860: Year of the FirstEver Natural Gas Well in the Buckeye State.WKBN Ohio (10/28) reports, “The first natural gas well was drilledin Ohio 150 years ago. To celebrate that milestone, the industry has startedthe Ohio Energy Proud campaign to highlight its importance in the state. Itemploys 75,000 people and supplies billions of cubic feet of natural gas tolocal residents. "In Ohio last year, statewide, we produced over 88billion cubic feet of natural gas, and the great thing about that is almost 100percent of that stays right here in our own backyard," said Rhonda Reda,Ohio Oil and Natural Gas Education. Mahoning County produced more than 7.3billion cubic feet of natural gas, Reda said. Because seven out of 10 homes inthe county use natural gas, this provides a lot of local energy benefits, sheadded. There are more than 2,000 gas producing wells in Mahoning County.

 

 

EPA Decisions NotDetermined by Politics, Right? Except This One: Politico Reports Agency WillNot Release New Smog Rule ‘Til After Election – Avoid Handing GOP“Fodder.” Politico’s MorningEnvironmentalist (11/1)reports, “EPA is unlikely to issue controversial smog standards prior to theelection tomorrow. The agency planned to release the federal ozone limit on oraround the end of October, but may be holding off in order to avoid givingRepublicans last-minute campaign fodder. EPA spokesman Brendan Gilfillan saidthe agency is working hard to finalize the standard. "We will announce thefinal rule as soon as it is ready – this is an important and complex rulemakingand we’re working to ensure we get it right," he said. W. Lafayette (Ind.)Journal & Courier (10/6) reports, “Transportation officialsare raising a red flag over what proposed stricter standards for ground-level ozonewill mean for Tippecanoe County. The U.S. Environmental Protection Agency ispoised to adopt new health-based air-quality standards by the end of the month."I would be surprised if we keep our ‘attainment status’ under the newstandards," said John Thomas, assistant director of transportation forTippecanoe County Area Plan Commission. If the counties are designated"nonattainment" areas, they will be subjected to tougher review forbusiness development and road projects as state and federal officials work toreduce emissions.

 

 

Big Wind “Has SlowestQuarter in Three Years” – But At Least It Knows Exactly What It Needs toTurn the Beat Around: More Taxpayer Loot. E&E News(10/29, subs. req’d) reports, “The U.S. wind industry just had its slowestquarter in three years, and it is using the weak period to ask for moreincentives favoring renewables. The industry added 395 megawatts ofwind-powered electric generating capacity from July through September of thisyear, the slowest growth since 2007. Total installations this year stood at1,634, down 72 percent from last year and the lowest level since 2006, theAmerican Wind Energy Association said today in a market report. The trade groupblames the decline on a lack of long-term energy policies, such as a renewableelectricity standard that would require utilities to source a certainpercentage of their electricity from renewable sources. "We’re increasingour dependence on fossil fuels, impacting our national security, instead ofdiversifying our portfolio to include more renewables," said AWEA CEODenise Bode in a statement. "U.S. wind energy can again lead the world,but if federal policymakers do not act quickly to provide investment certaintythrough a renewable electricity standard and longer-term tax policy like ourenergy-generation competitors enjoy, the U.S. wind industry will stallout." The group says U.S. installation rates are half those of Europe anda third of the rate in China. "This is a global race, and we need a levelplaying field with fossil fuels to stay competitive," Bode said.

 

October 28, 2010

Flashback:Prof. Calzada Sounded Alarm on Out of Control “Green” Subsidies in Spain TwoYears Ago. Today: Spain Set to Rein in Solar Subsidies, Unsustainable. Bloomberg(10/28) reports, Spain may limit the hours during which photovoltaic-powerplants may earn subsidies as part of a plan to rein in electricity costs forconsumers, according to a government official involved in talks with theowners. It’s too early to say how much the cut might cost companies thatgenerate the solar power using photovoltaic panels, said Antonio Hernandez,general director of energy policy at the Madrid-based Industry Ministry. Hesaid the ministry aims to reach an agreement during the next few weeks ofnegotiations. “We want to prevent electricity becoming more expensive as thesun shines more,” Hernandez said in a telephone interview this week. “One ofthe possibilities is that the number of hours that subsidies can be earned wouldhave limits.” Plant operators and trade groups have held talks with ministryofficials for months and threatened to sue the government for as much as 1billion euros ($1.4 billion) should it cut the subsidies. The aid, which isadded to consumer bills, is guaranteed for 25 years under a 2007 law, plantoperator T- Solar Global SA Chief Executive Officer Juan Laso has said.”

LeadingAnti-Affordable Energy Organization Comes Out in Support of HydraulicFracturing; Wonder Who Cut the Check.Washington Examiner (10/26) reports, “InJanuary, the documentary Gasland won a special jury prize at theSundance Film Festival. The documentary attacked the process of “fracking,”which involves pumping a solution that is 99 percent sand and water, plus a fewtrace chemicals, underground at high pressure. This creates fractures in therock formations that allow oil and gas to flow to collection points. The filmclaimed that the process pollutes groundwater with devastating consequences.Multiple EPA studies have shown fracking is safe and effective, but thepropaganda effort got the attention of congress. In March, Rep. Henry Waxman,D-Calif., held hearings on whether the practice should be federally regulatedrather than regulated at the state level. After issuing subpoenas to eightenergy companies, Waxman dropped the probe. Now fracking is being defended by avery unlikely source — the Environmental Defense Fund, one of the biggestand most active environmental non-profits in the country. Appearing on theEnergy and Environment program “On Point” EDF Senior Policy Advisor was utterlydismissive of the concerns about fracking…” Click HERE for E&ETV interview.”

GetThis: Obama Admin. Wants More Electric Cars, Pin Wheels and Sun Catchers, But OpposesMining for Rare Earths in the USA – An Essential to All-Things“Renewable.” Solution? Send Clinton to China, Ask for More Exports. Wall Street Journal (10/28) reports, “U.S.Secretary of State Hillary Clinton said she will press China this week toclarify its policy on the exports of rare-earth minerals amid fears Beijingcould use them as a political weapon. Mrs. Clinton, en route to Asia for a keyregional summit, stressed following a meeting with her Japanese counterpart inHawaii that recent Chinese restrictions on sales of the important commercialinputs must serve as a "wake-up call" for the U.S. and its allies todiversify their sourcing. China is estimated to supply about 97% of the globaldemand for these metals, which are essential for the production of computersand other electronic products. "Because of the importance of theserare-earth minerals, I think both the minister and I are aware that ourcountries and others will have to look for additional sources of supply,” Mrs.Clinton said at a joint press conference with Japanese Foreign Minister SeijiMaehara. Tensions between China and Japan have increased in recent months,fueled by a dispute over islands jointly claimed by the two Asian nations. InJuly, Beijing announced a drastic curtailment of its export quotas for theseminerals, as well as a crackdown on smuggling, which began to be felt insubsequent months. China says the limits reflect its growing environmentalawareness, are perfectly legal and won’t be used as a policy tool. In BeijingWednesday, China’s Foreign Ministry said it wouldn’t use its dominance inrare-earth minerals as a "bargaining tool" with competing nations.”

Can’tSay I Blame Him. Louisiana’s Lt. Gov. Switches from D to R Over Obama’sHandling of Gulf Spill, Moratorium. New Orleans Times-Picayune (10/27) reports, “BATON ROUGE — Lt. Gov.Scott Angelle said Tuesday that he has changed his party affiliation fromDemocrat to Republican because of his dissatisfaction with President BarackObama and the administration’s recent actions on oil drilling in the Gulf ofMexico. Angelle, who has served as Gov. Bobby Jindal’s Department of NaturalResources secretary and chief liaison to the Legislature, said he grewdisenchanted with the Democratic Party’s philosophy of dealing with energymatters, especially the moratorium on drilling that followed the Deepwater Horizonexplosion that claimed 11 lives and spilled millions of gallons of oil into theGulf and sensitive coastal estuaries.He said the scientificstudies and investigations into deepwater exploration have indicated themoratorium should have been lifted weeks before it was. Instead, thousand ofworkers have been left jobless because of the Obama administration’s actions."I felt it was not handled in the right way," said Angelle, who hastestified before investigatory panels and Congress on the accident and itseffects. "Going through the process of the moratorium, I knew I had to dothis," he said. "It was an accumulation of things I was hearing aboutthe oil and gas industry (from the Democrats in Washington, D.C.). Our statecan only prosper with a strong oil and gas industry."

CarbonCriminalization Hot Topic in Alaska Senate Race; One Candidate Outright OpposesCap-and-Trade/Carbon Tax. Fairbanks Daily News-Miner (10/28) reports, “Thedebate over “cap and trade” legislation to curb fossil fuel emissions has beenheating up Alaska’s U.S. Senate campaign. The Alaska Republican Party and thecampaign for Republican nominee Joe Miller have hit GOP write-in candidate LisaMurkowski and Democrat Scott McAdams hard on the cap and trade issue, saying inads that their support for the legislation will result in higher taxes, energyprices and unemployment. Murkowski and McAdams say that is an unfair characterizationof their positions on the issue. Polluters are issued permits for each ton ofcarbon they emit under a cap and trade system, and companies that reduce theiroutput are able to sell permits they don’t need. Critics say the system amountsto a tax on the use of fossil fuels. The basis for cap and trade legislation isgrounded in the belief, shared by most scientists, that fossil fuel emissionsare contributing to climate change. Assessing penalties for burning fossilfuels will spur producers and consumers to find cleaner alternatives,supporters of the concept say. Miller is the most critical of any form of“carbon tax” or cap and trade bill. Miller strongly opposes any suchlegislation, which he believes is unconstitutional. He said the penalties tiedto cap and trade — specifically in a version passed by the House thisyear — will be a devastating drag on the nation’s economy. As a fix for“something that may not even exist,” he says on his campaign website, the costis too steep.”

White House Readying Plans to Implement Energy RationingScheme Through Executive Order; Taxpayer Handouts for “new sidewalks, trolleysand street cars.” Politico(10/27) reports, “The White House doesn’t regret simultaneously pushing healthcare and climate change legislation, despite the ultimate failure to pass capand trade, President Barack Obama’s domestic policy adviser said Wednesday.Barnes said the White House believes the country can still tackle climatechange without Congress passing legislation that caps greenhouse gas emissions,noting the push for executive agencies to curb emissions, coupled with effortsat the state and local government levels. "The president feels that it’scritical that we move forward, and whether or not it’s through legislation,which would set a big comprehensive framework for companies, for the privatesector, for investors and for the rest of the world to see, and obviouslythat’s a priority and that’s why we tried to move it in the first two years,that there’s still other ways that we can advance this energy agenda,"Barnes said during an event hosted by The Atlantic Magazine. We’ve beenabsolutely thinking about this at every level,” Barnes said, citing theEnvironmental Protection Agency and Energy Department programs, as well asfederal grants to help local governments build more sidewalks, light rail linesand street trolleys.”

The Election is Nearly Over, but the Fight Has Just Begun

On Election Day, the polls are pointing towards big changes in the leadership in Congress. Republicans are positioned to take over House of Representatives and will likely narrow their gap in the Senate. And even if the Democrats manage to retain control of the House, several incumbents running for reelection have already publically declared that the will not vote to reelect Nancy Pelosi as House Speaker, which means a change in leadership is certain.

Will this mean AEA can spend less time fighting harmful schemes like cap-and-trade and renewable energy mandates? Not likely. History shows that when it comes to energy, the Republicans, while perhaps not as hazardous as their counterparts, deserve to be watched closely. Just recently, for example, leading Republicans have endorsed a tax on oil imports, cap-and-trade, a gasoline tax, a renewable energy mandate, a carbon tax, utility price caps, and yet another ethanol mandate.

With all the changes in Washington, one thing will remain the same — regardless of who is in charge the American Energy Alliance and the Institute Energy Research will continue to fight against destructive energy policies that lead to higher energy and gasoline prices and increased imports from unstable foreign regimes. Here are just a few things AEA will be advocating the new Congress to get to work on right away:

1. Fight EPA and their economically destructive policies. The Obama Administration’s Environmental Protection Agency (EPA) is out of control. Congress declined to regulate carbon dioxide, but EPA is pushing ahead in spite of Congressional inaction. But that’s just one way EPA is working to harm the economy. EPA has a whole suite of regulations that will increase the price of energy and make it harder to do business in the United States.

2. Fight the Obama Administration’s war on affordable energy. Everywhere we look the Obama Administration is fighting to reduce our ability to make energy in the United States. In the Gulf of Mexico, the Administration has made it next to impossible to drill for new oil. The Administration has cancelled oil and gas leases and EPA is working to shut down coal-fired power plants. A new Congress needs to fight back and allow American to produce energy here in America.

3. End energy subsidies. Many sources of energy receive subsidies from the federal government. In these tough economic times, there is no reason to spend taxpayer dollars to promote politically-connected sources of energy. Now is the time to stop all energy subsidies and return those resources to American taxpayers.


The election may be nearing an end, but our work is just beginning. Thank you for being at our side every step of the way.

Sincerely,

 

Tom Pyle
President


P.S. How changes would you like to see in Washington with respect to energy policy? Leave a comment below.

October 27, 2010

By Hook orBy Crook, Obama Administration Hell-Bent on Bankrupting Coal Industry;Increasing Consumer Energy Prices.Wall Street Journal (10/27) editorializes, “Anyone who caresabout the U.S. economy is breathing easier now that cap and tax appears to beon the political garbage barge, but don’t be so sure. The White House is stillpursuing its carbon agenda through regulation, albeit with almost no publicattention, and a new study shows the damage that is already being done.Yesterday the North American Electric Reliability Corporation, a highlyregarded federal energy advisory body, released an exhaustive "specialassessment" of this covert program. NERC estimates that the EnvironmentalProtection Agency’s pending electric utility regulations will subtract between46 and 76 gigawatts of generating capacity from the U.S. grid by 2015. To putthose numbers in perspective, the worst-case scenario would amount to a reductionof about 7.2% of national power generation, and almost all of it will hitcoal-fired plants, the workhorse that supplies a little over half of U.S.electricity. In a recent research note, Credit Suisse estimates that compliancewill cost as much as $150 billion in capital investment by the end of thedecade. All of this will flow through to rising electricity prices, which isthe same as a tax increase on businesses and consumers. NERC also warns of"deteriorating resource adequacy" and of the logistical reality thatreplacing or upgrading so much capacity so fast may lead to brownouts andshortages. The danger is greatest throughout the Midwest in states like Ohio,Pennsylvania and West Virginia, where the costs will also be concentrated.”

You’ve BeenSpiked! Nicky Joe Taken to the Woodshed Over His Support for CarbonCriminalization, Anti-Affordable Energy Agenda.AssociatedPress (10/26) reports, “U.S.Rep. Nick Rahall and Republican challenger Elliott "Spike" Maynardpummeled each other during a bare-knuckle debate Tuesday night over everythingfrom mudslinging TV ads to coal mining. Maynard fired back, angrily labelingRahall a steadfast supporter of President Obama and House Speaker Nancy Pelosi.Obama failed to carry West Virginia in 2008 and is disliked by many forpolicies aimed at curbing surface coal mining in Appalachia. "You’refriends at the EPA just shut down, vetoed another permit," Maynard toldRahall, referring to the U.S. Environmental Protection Agency. "Go talk tothose 300 coal miners, ask ’em if that’s gloom and doom.” Maynard said Rahallhas voted with Pelosi 98 percent of the time in Congress. "The generals inthe war on coal today are Barack Obama and Nancy Pelosi and the folks at theEPA," Maynard said. "The want to abolish surface mining." Thecandidates are vying in West Virginia’s 3rd Congressional District and thecontest has attracted money and national attention — Tuesday’s debate wastelevised on C-SPAN. Republicans see the seat as vulnerable in what hastraditionally been a staunchly Democratic district.”

Who SaidCap-and-Trade Wasn’t a Campaign Issue? Was it CAP or Third Way? Talk to RickBoucher, Seems to be Only Issue in SW Va. House Race.Martinsville Bulletin (10/27) reports, “Ninth District U.S. Rep.Rick Boucher’s position on cap-and-trade emissions legislation shows he hasbeen in Washington too long, says one of his opponents in the Nov. 2 election. “Weneed new ideas and new energy, a more conservative profile,” said Del. MorganGriffith, R-Salem, a 17-year veteran of the state legislature who ischallenging Boucher, a 28-year congressman, and independent Jeremiah Heaton ofAbingdon. “I think … 28 years on any job” may be too long, Griffith, 52, saidin a recent interview. “If you don’t have the energy levels to continue to talkabout the issues, (and are) complacent to go along, it’s time to go. Thelegislative process is high energy. You’ve got to talk to people. … Sometimesyou have to stand up and fight.” The cap-and-trade clean emissions legislation,which was approved by the House of Representatives and then stalled in theSenate, is the key issue in the 9th District campaign, Griffith said. Boucher,D-Abingdon, has said that in 2007, the Supreme Court declared that greenhousegases are pollutants, which meant they had to be regulated by the EnvironmentalProtection Agency (EPA). The coal industry and coal-fired utilities asked himto write laws to protect it and he agreed, he said. The resulting legislationwill eliminate 56,000 jobs and cost the average household a couple of hundreddollars or more a year in higher electric bills, Griffith said.”

Or Talk to Mr. Ellsworth in Indiana, Seems Like Affordable Energy andCarbon Criminalization are Front and Center in This Race Too.New York Times (10/26)reports, “But Coats’ race against Rep. Brad Ellsworth, a once-rising Democraticstar whom most polls show trailing by at least 16 points, is equally anomalouswhen it comes to environmental policy. With coal and ethanol remaining centraldrivers of the state economy, and both candidates vying to blast broad climatechange legislation more loudly, energy-minded Indianans could see littledifference between a likely Sen. Coats and a long-shot Sen. Ellsworth."This is a conservative state that burns a lot of coal and eats a lot ofcorn," said Vince Griffin, vice president of energy policy at the IndianaChamber of Commerce, in an interview, noting that most of the state’s lawmakers"would look at this in a similar way." Indeed, the energy prioritieshighlighted by both candidates read like veritable mirror images. Coats’ plancalls for doubling the number of U.S. nuclear reactors within 20 years whilepromoting efficiency and maintaining coastal drilling despite the"tragic" Gulf of Mexico oil spill. Ellsworth, meanwhile, calls for"a comprehensive approach that includes domestic drilling, encouragesconstruction of nuclear power plants" and also invests more in efficiency.Despite their closeness on substance, Coats and Ellsworth have spent plenty oftime on the trail vying over whose style is best suited to Indiana. TheDemocratic nominee, initially seen as his party’s best hope to hold onto theseat vacated by retiring Sen. Evan Bayh (D-Ind.), has rapped Coats for lobbyingon behalf of a hedge fund executive who backed cap-and-trade climate measures.”

It WasOnly a Matter of Time; Interior Dept. Dep. Sec. Confirms “Big” Changes on theWay to Further Restrict Offshore Energy Exploration.The Hill (10/26) reports, “Deputy Interior Secretary David Hayesemphasized Tuesday that the department has much more work to do to revampoffshore oil-and-gasdrilling following the Gulf ofMexico spill.“We are in a constant reform cycle, big time,” he told a forumhosted by The Atlantic. “We’re going to have more rules coming out.” InteriorSecretary Ken Salazar late last month announced post-Gulf spill safetyrequirements that prescribe regulations 
regarding the design, cementing and casing ofwells and the use of 
drillingfluids. The rules would also require that blowout preventers — the lastline of defense before a well ruptures and also the mechanism that failed toprevent the BP spill — have to be independently certified. The Bureau ofOcean Energy Management, Regulation and Enforcement is also reorganizing. Thebureau’s leasing andenvironmental review oversightwill be split in two by the end of the year, Hayes said. The revenue collectionwork of the bureau alreadyhas been splitoff.“I’m confident we are in a muchbetter place than we were” before theApril 20explosion of BP’s Deepwater Horizon rig, Hayes said. “There was a shared lackof appreciation” for the risks involved in offshore drilling, he said. “Thathas evaporated.”

GOTV, Philly Style. Rendell Holds Anti-Marcellus Rally in Phila. withRadical Enviros, Signs EO Banning New Leasing of State Lands. FYI, He BecomesIrrelevant in 6 days. New York Times (10/26)reports, “Gov. Edward G. Rendell of Pennsylvania signed an executive order onTuesday effectively banning further natural gas development on state forestlands. Mr. Rendel, a Democrat, said the moratorium was needed in part toprevent the unchecked industrialization of public lands in a state that hasseen a boom in natural gas development unparalleled there. Much ofPennsylvania, along with large swaths of New York and West Virginia, sits atopthe Marcellus Shale, a potentially vast natural gas resource that has onlyrecently proved accessible through the use of advanced but environmentallycontentious drilling techniques. Most gas development in Pennsylvania iscarried out on private lands, but state regulators have permitted drilling onstate forest land since at least 1947. The Department of Conservation andNatural Resources has held 74 lease sales since then, including this year’s. Roughly660,000 of the state’s 2.2 million acres of public forest land have beenleased, according to department data. The Marcellus Shale Coalition, anindustry group, estimates that there are about 160 Marcellus Shale wells onstate lands and about 2,300 on private lands in Pennsylvania.”