October 5, 2010

UtilityRate Increase for First Family (Taxpayers) Coming Spring 2011; White HouseAnnounces Plans to Increase Use of Most Expensive Form of Electricity.AP(10/5) reports, “Solar power is coming to President Barack Obama’s house. The most famousresidence in America, which has already boosted its green credentials byplanting a garden, plans to install solar panels atop the White House’s livingquarters. The solar panels are to be installed by spring 2011, and will heatwater for the first family and supply some electricity. The plans will beformally announced later Tuesday by White House Council on EnvironmentalQuality Chairwoman Nancy Sutley and Energy Secretary Steven Chu. FormerPresidents Jimmy Carter and George W. Bush both tapped the sun during theirdays in the White House. Carter in the late 1970s spent $30,000 on a solarwater-heating system for West Wing offices. Bush’s solar systems powered amaintenance building and some of the mansion, and heated water for the pool.Last month, global warming activists with 350.org carried one of Carter’s solarpanels – which were removed in 1986 – from Unity College in Maine to Washingtonto urge Obama to put solar panels on his roof. It was part of a global campaignto persuade world leaders to install solar on their homes. After a meeting withWhite House officials, they left Washington without a commitment.”

Calling Obama’s Bluff: Offshore Moratorium will be Lifted BeforeElection Day, Says Sen. Vitter; But De Facto Ban Will Remain in Place.The Hill (10/4) reports,“Sen. David Vitter (R-La.) predicts thefederal freeze on deepwater oil-and-gas drilling could end within two weeks,but fears the Interior Department will block development even afterrestrictions are lifted. “The even bigger question is are we going to have a defacto moratorium on an ongoing basis for many more months to come,” Vitter saidSaturday on Fox News. “I am predicting that the formal moratorium will belifted in October, maybe within two weeks, but again the big issue to me is notthat. It is whether the lay of the land the day after is really any different,or do we have a de-facto moratorium that is 90 percent as bad. Unfortunately Ithink so far the evidence is pointing to the latter,” he added. The Obamaadministration is under immense political pressure to lift or ease the banbefore its scheduled Nov. 30 expiration. But critics of the ban have alsotaken aim at comments last month by Michael Bromwich – Interior’s topoffshore drilling regulator – who said it remains uncertain when projectswill resume as companies seek to show compliance with expanded safetymandates.”

Our Money’s on ThePride of Trucksville, Pa.: GasLand Director Josh Fox set to Debate Chris Tuckeron Merits of Nat Gas Exploration and HF. HuffPost (10/5) reports, “Natural gas is atopic that has been getting tons of media attention — here at HuffPost Greenwe’ve featured dozens of stories on concerns about fracking (the controversialdrilling method), the natural gas boom here in the U.S. and a few frighteningvideos of people lighting their tap water on fire. But as our energy demandsincrease, the world hunts for reliable, non-carbon producing sources of power,and there’s a lot people don’t know or understand about natural gas. That’s whyin November we’re hosting a debate to help illuminate the issue of natural gas,and get to the bottom of a truly burning question: is it really green? We’reinviting two experts on the topic of "Fracking," the controversialmethod of natural gas extraction. Josh Fox is the director of the film"Gasland," which charts his cross-country journey to get to thebottom of natural gas fracking after being asked to lease his land for gasdrilling. He uncovers what he describes as "a trail of secrets, lies andcontamination." Chris Tucker representing a segment of the industry as thecommunications director for Energy In Depth, which is an a education andoutreach initiative by the Independent Petroleum Association of America (IPAA).He will be arguing that natural gas has an important place in our energy futureand that extraction can be done safely."

WeSupport the Troops and Pray for Their Safety, But Wind Powered Tanks and SolarPowered Helicopters? That’s a Stretch. New York Times (10/5) reports, “Withinsurgents increasingly attacking the American fuel supply convoys that lumberacross the Khyber Pass into Afghanistan, the military is pushing aggressivelyto develop, test and deploy renewable energy to decrease its need to transportfossil fuels. Last week, a Marine company from California arrived in the ruggedoutback of Helmand Province bearing novel equipment: portable solar panels thatfold up into boxes; energy-conserving lights; solar tent shields that provideshade and electricity; solar chargers for computers and communicationsequipment. The 150 Marines of Company I, Third Battalion, Fifth Marines, willbe the first to take renewable technology into a battle zone, where the newequipment will replace diesel and kerosene-based fuels that would ordinarilygenerate power to run their encampment. Even as Congress has struggledunsuccessfully to pass an energy bill and many states have put renewable energyon hold because of the recession, the military this year has pushed rapidlyforward. After a decade of waging wars in remote corners of the globe wherefuel is not readily available, senior commanders have come to seeoverdependence on fossil fuel as a big liability, and renewable technologies— which have become more reliable and less expensive over the past fewyears — as providing a potential answer. These new types of renewable energynow account for only a small percentage of the power used by the armed forces,but military leaders plan to rapidly expand their use over the next decade.”

Quick, What Does NJRepublican Cong. Leonard Lance and Frank LoBiondo Have in Common with Barbara Boxer? BothSupport a National Energy Tax and Both Enjoy the Support of the Sierra Club. Politico Morning Energy (10/5) reports, “SIERRA CLUB GETS DOWN TOWORK – The organization yesterday announced a list of 29congressional races it is most focused on this election cycle. The group hasendorsed a total of 220 candidates for the House and Senate but will pour itsresources into organizing volunteers to help out the following candidates:Gabrielle Giffords (D-Ariz.), Jerry McNerney (D-Calif.), Barbara Boxer(D-Calif.), Betsy Markey (D-Colo.), Michael Bennet (D-Colo.) , Alan Grayson(D-Fla.)… “In many of these races, there is a clear choice between a candidatewith a strong environmental record and a candidate who sides with pollutersrather than with the public,” said political committee chair Ken Brame in astatement. “Sierra Club’s thousands of volunteers will be pounding thepavement, working the phone lines, and talking with their friends and neighborsto help get environmental champions elected.” Of the 220 candidates the groupendorsed, only two are Republicans: New Jersey Reps. Leonard Lance and FrankLoBiondo.

Surprised? China Comes out Swinging at Climate Conf., Calls on “Wealthy”Nations (That’s the USA by Definition) to Increase Emission Reduction Targets. The Guardian (10/5) reports,“China today called on wealthy nations to dramatically increase the rate atwhich they plan to cut their carbon emissions at international climatenegotiations in Tianjin. The more forthright rhetoric from the hosts broaches acrucial topic that has been notable mainly by its absence at the talks, whichbegan yesterday. "The emissions reductions goals of developed countriesshould be dramatically increased," said China’s chief negotiator, Su Wei."We can’t discuss other elements and not discuss emissions reductions.It’s unavoidable." Many delegates at this week’s working-levelnegotiations would prefer to leave to a later date this divisive – butfundamental – issue. Following the disappointment of the Copenhagen climatetalks last December, the UN’s climate chief, Christiana Figueres, has called onparticipants this week to focus on achievable goals.This "balancedpackage" – as it is vaguely referred to – would include the commitmentsthat countries made last year to reduce greenhouse gas emissions, but criticswarn that such a deal can only serve as a band-aid. "One of the mainthings here is management of expectations. They are dangerously low," saidLi Yan of Greenpeace. "If countries settle for low ambitions, it willbecome a self-fulfilling prophecy in Cancún."

 

 

October 4, 2010

Your taxDollars, Hard at Work: $700K NSF Grant Awarded to NY Theater Company to ProduceShow on Climate Change – Meanwhile, nearly 1/10 Americans Remain Jobless.New York Times (10/3) reports, “The National ScienceFoundation has awarded a $700,000 grant to the Civilians, a New York theatercompany, to finance the production of a show about climate change. “The GreatImmensity,” with a book by Steven Cosson (“This Beautiful City”) and music andlyrics by Michael Friedman (“Bloody Bloody Andrew Jackson”), tells the story ofPolly, a photojournalist who disappears while working in the rain forests ofPanama. The grant is a rare gift to an arts organization from the foundation, afederal agency that pays for science, engineering and mathematics research andeducation. The company says it plans to spend the money on the development andevaluation of the show, as well as on a tour and educational programs,including post-show panel discussions with experts in related scientificfields. No performance dates have been announced.”

ObamaAdmin. Successful in Shutting Down Domestic Energy Production This Year,Outline Post-November Anti-Energy Agenda for Next Year. Wall Street Journal (10/4) reports, “President Barack Obama,facing at best narrower Democratic majorities in Congress next year, is likelyto break up his remaining legislative priorities into smaller bites in hope ofsecuring at least some piecemeal proposals on energy, climate change,immigration and terrorism policy, White House officials say. In a series ofrecent campaign appearances, Mr. Obama has talked up the stakes in the Novemberelection as he seeks to energize supporters and retain Democratic control ofCongress. At the same time, White House officials have begun revamping theirlegislative strategies. "One of my top priorities next year is to have anenergy policy that begins to address all facets of our overreliance on fossilfuels. We may end up having to do it in chunks, as opposed to some sort ofcomprehensive omnibus legislation. But we’re going to stay on this," hesaid in a recent interview with Rolling Stone. White House officials haven’tlaid out their plan for moving energy legislation. But Rep. Edward Markey (D.,Mass.), an author of the comprehensive climate change and energy bill thatpassed the House but died in the Senate, offered this scenario: Democratsshould be able to muster support for establishing minimum standards for thepercentage of renewable energy that utilities must use to generate electricity,he said.”

Anti-EnergyFlorida Congressman, Who Owns a Diesel-Powered 110-ft. Yacht, Writes Pres. Obama,Requests that he Block Offshore Drilling Plans in CUBA (!)The Hill (10/2) reports, “A Florida Republican congressman on Fridayurged President Obama to take action against a proposed Cuban offshore oildrilling operation. Rep. Vern Buchanan wrote the president, saying that heshould stand in the way of the drilling plan. Media reports this week said thatCuba is considering deep water oil drilling 50 miles from the Florida coastlineas soon as next year. Buchanan said the plan could endanger the Gulf coastbecause a BP-like spill could occur. "We want clean water and cleanbeaches," Buchanan told Tampa-based WTSP. "They’re talking aboutdrilling deeper than BP, which was 5,000 feet, and I have no confidence theywill be able to drill safely at that level." This year’s BP oil spill,which occurred because of an explosion on a deep water rig, caused damage tothe ecosystems in Florida, Alabama, Mississippi and Louisiana and cost thestate’s fishing and tourism industries. "If they had a spill, [it] wouldbe up on our shores in a matter of three days," Buchanan said of the Cubanplan. "I was at the convention when they said, ‘Drill, Baby, Drill.’ Itwas awkward for me but the bottom line is that I don’t agree with them. I thinkthey’re putting too much at risk in Florida."

Osama binLaden, the Environmentalist? Mastermind of 9/11, Most Hated Man in AmericaTurns to Climate Change to Rail Against the West.Washington Times (10/1) Editorializes, "Osama bin Ladenis best known as a jihadist extremist, but he’s lately added"eco-warrior" to his resume. In a new tape posted on a terroristwebsite, the al Qaeda leader waves the emerald banner of ecology alongside thegreen battle flag of Islam. "Massive climate change is affecting ournation and is causing great catastrophes throughout the Islamic world,"bin Laden says, as part of an 11-minute address about disaster relief effortsin Pakistan. Global warming, according to the terrorist mastermind, has killedmore people than war. The bulk of bin Laden’s message concerns reforminghumanitarian assistance programs; here the terrorist adopts the role of GoodSamaritan. "What governments spend on relief work is secondary to whatthey spend on armies," he says, neglecting to note that in the currentrelief effort in Pakistan, as in most such natural-disaster responses, themilitary plays a critical role in providing transportation, food, water andmedical support. It’s fair to say that without military participation, civilianassistance efforts would have a fraction of the impact they do now."

Take Two:As Cancun Conference Approaches, UN Climate Talks Kick Off Today in China; World’sLargest Emitter of Carbon, Home to the Most Robust Economy in the World.Associated Press (10/4) reports, “The U.N. climate chiefurged countries Monday to identify achievable goals for fighting climate changeahead of a year-end meeting in Mexico, after last year’s Copenhagen summitfailed to produce binding limits on greenhouse gas. Christiana Figueres told3,000 delegates at the opening of a six-day conference in China – the world’sbiggest carbon emitter – that they must "accelerate the search for commonground" ahead of December talks in Cancun to make progress toward securinga global climate change treaty. "As governments, you can continue to standstill or move forward. Now is the time to make that choice," she tolddelegates in the northern port of Tianjin. "If you want a tangible outcomein December, now is the time to clarify what could constitute an achievable andpolitically balanced package for Cancun, and what could be subject to furtherwork after Cancun," she said.

Meanwhile,China’s State-Owned Oil Company Invests $7 Billion in Brazil Unit of SpanishEnergy Producer. Morning Money(10/4) reports, “Chinese state oil company China Petroleum & Chemical Corp.(Sinopec) said Friday that it would invest $7.1 billion in the Brazilian unitof Spain’s Repsol YPF S.A. to form one of the largest private energy companiesin Latin America. The investment is the second-largest overseas purchase by aChinese company and drives the market capitalization of Repsol’s Brazilian armup to $17.8 billion. Analysts estimated the company’s value at $10.7 billionearlier this year. Sinopec’s investment gives it a 40% stake in Repsol’s Brazilbusiness, and access to the highly valued Brazilian offshore sub-salt oilfields. The move highlights South America’s importance to China as the Asianpowerhouse goes on a spending spree to meet its fast-growing energy demand."China’s increased reliance on imported oil is prompting state companiesto accelerate the hunt for resources globally," Wang Aochao, head ofenergy research at Shanghai’s UOB-Kay Hian Ltd., told Bloomberg. "Thetrend is set to continue as the country’s fast economic growth won’tstop." The deal is almost as big as Sinopec’s 2009 acquisition ofSwitzerland’s Addax Petroleum Corp. for $7.2 billion, the biggest oil takeoverto date by a Chinese company. The deal gave Sinopec access to fields in Iraq’sKurdistan and West Africa."

September 29, 2010

Follow Us Here: SenateDemocrat Angry at Senate Republican Because Senate Republican Tried to PassSenate Democrat’s Bill to Delay EPA Carbon Criminalization.E&E News(9/28, subs. req’d) reports, “Sen. Jay Rockefeller (D-W.Va.) is gettingfrustrated that his Republican colleagues continue to seek votes on his bill todelay U.S. EPA climate rules without asking him first. Republicans Kit Bond ofMissouri and Lisa Murkowski of Alaska have both sought votes in recent monthson Rockefeller’s bill to block EPA from regulating greenhouse gases fromstationary sources for two years, which Rockefeller says can likely pass theSenate this year. Last night, Bond tried to bring up for a vote Rockefeller’sbill to block EPA from regulating greenhouse gases from stationary sources fortwo years but was thwarted when Senate Majority Whip Dick Durbin (D-Ill.)objected. "He didn’t in any way let me know or our office know, and it’sjust a bad — it’s a bad thing to do," Rockefeller said today. Murkowskilaunched another attempt to bring up the legislation in August as an amendmentto a small business package but was not allowed a vote on the measure. "Iwould have liked to have known about it before she did it," Rockefellertold reporters last month. "But I like her, so I didn’t get mad."

 

 

Boy Who Cried “Gulf”:Sensing His Party’s About to Get Shellacked at the Polls, President Reaches Outto Enviros – Asks for Boots & Birkenstocks on the Ground. Politico (9/29) reports, “Obama’s pitch to tackle energy and climatenext year — “in chunks, as opposed to some sort of comprehensive omnibuslegislation,” he said — marked the first time the president has weighedin on the issue since this summer’s Senate stalemate. Democrats have severalother obvious environment-themed announcements and strategies in the works.Senate leaders still hope to hold a vote for a renewable-energy standard duringa lame-duck session. And the administration is looking at stronger protectionsfor Alaska’s Arctic National Wildlife Refuge and another round of fuel economyplans due later this week. Election observers say there’s an obvious linkbetween the president’s latest round of green policies and the get-out-the-votecampaign that starts and ends at the White House. “He has no choice,” saidJennifer Duffy, a senior editor at the Cook Political Report. “I thinkDemocrats can’t win without these voters, so they’ve got to make a play forit.” Democratic pollster Mark Mellman said Obama’s pitch cuts strongest towardDemocratic voters but also has resonance elsewhere in the electorate.

 

 

But That Support Comes witha Price – Here’s What Enviros Want First: Half of ANWR’s Already LockedAway Forever; Now Lock Up the Rest.E&E News (9/28, subs. req’d) reports, “Environmentalgroups are crowing while Alaska’s congressional delegation is condemning theObama administration’s announcement Monday that it will consider proposing newwilderness designations within the Arctic National Wildlife Refuge. Nearly halfof ANWR has already been declared wilderness, a designation that carries strictrestrictions on human activities to protect high conservation-value lands. TheInterior Department now will consider recommending designations on the rest ofthe area — including land above oil reserves on Alaska’s coastal plain.Interior does not have the power to create any new wilderness areas. That canonly be done through an act of Congress. Instead, Interior can recommendCongress consider certain lands for the designation. Murkowski called thereviews a "blatant political move by the administration" in anAssociated Press interview, and Begich said they were "a colossal waste oflimited resources." "We should use those resources to develop theenormous oil and gas reserves believed to be beneath the coastal plain,"Begich said.

 

 

King Kenneth a Jester in WHCourt: President Tells Rolling Stone that Mustang Sally Didn’t Act Quick Enoughto Rename MMS – WH Advisors Say He’s Gone by December. Politico (9/28) reports, “President Barack Obama isn’t exactly racingto the rescue of Interior Secretary Ken Salazar. In an interview publishedtoday, Rolling Stone editor Jann Wenner asked Obama: “Why does Ken Salazarstill have his job?” Rather than defending his Interior secretary, Obamaacknowledged that Salazar moved too slowly to clean up the scandal-plaguedMinerals Management Service — and said that he got a presidentialtongue-lashing as a result. “We are committed to making sure that that placeworks the way it is supposed to,” Obama told Rolling Stone. “But when I havesomebody like Ken Salazar, who has been an outstanding public servant, whotakes this stuff seriously, who bleeds when he sees what was happening in theGulf, and had started on a path of reform but just didn’t get there as fast onevery aspect of it as needed to be, I had to just let him know, ‘You’reaccountable, you’re responsible, I expect you to change it.’" White Houseinsiders say Salazar has fallen out of favor and speculate that he will be goneafter November’s midterms. Obama didn’t say directly whether Salazar wouldstill have a job, but he acknowledged the overhaul of the former MineralsManagement Service took too long.

 

 

Meanwhile, WH Efforts toBring Landrieu to Heel on Agency Hold Rebuffed – Lift the Ban, Make ItReal, Or You Don’t Get Your OMB Nominee.Bloomberg (9/28) reports, “U.S. Senator Mary Landrieu said she plans toextend her hold on Jack Lew’s confirmation to lead the White House budgetoffice until the administration lifts or modifies its moratorium on deep-waterdrilling. President Barack Obama’s decision to halt exploration after BP Plc’sGulf of Mexico spill is causing more harm in her state than damage from thespill, Landrieu, a Louisiana Democrat, told reporters today in Washington.Landrieu said she met during the weekend with Interior Secretary Ken Salazarand today with Michael Bromwich, director of the U.S. office that overseesoffshore oil exploration. “We’re making slight progress but not enough for meto change my position,” Landrieu said after testifying to a national commissioninvestigating the spill. “I’m getting pushback but I didn’t expect they wouldbe happy about it so I’m not surprised.” Lew’s nomination was approved 22-1last week by the Senate Budget Committee, clearing the way for a vote by thefull chamber. The Senate lets lawmakers block action on presidentialnominations, a power they sometimes wield to get concessions from the executivebranch on unrelated issues.

 

 

Energy In Depth Exec. DirectorHits the Pages of NYT with Some Much Needed Facts, Context, History Related toHydraulic Fracturing. IPAA/EID’sLee Fuller writes (9/29) in The New York Times, “A recent editorial rightly suggests thecontinued development of clean-burning natural gas in America “is vital to ourenergy future.” Unfortunately, it also betrays a shallow understanding relatedto the history of hydraulic fracturing, which has been used for more than 60years to stimulate the flow of oil, natural gas and water, and more recently,geothermal energy. The Times wonders aloud if fracturing can be used “safely,”but dismisses out-of-hand a 2004 EPA study confirming that it can, and is. Itssolution? Another study from EPA. That’s fine with us, actually, so long as thestudy is based on the science and draws on technical insights of experts, notthe political wishes of activists. Hydraulic fracturing has been used safelyin New York State for 50 years. The Marcellus won’t change that. But it mightjust change New York’s economic future for the better.

 

 

You Know It’s Bad When:Even Folks Like Patty Murray and Ron Wyden Tell EPA to Slow Its Roll on NewBoiler Rule – And Yet, Agency Trudges On.E&E News(9/28, subs. req’d) reports, “In a sign of growing bipartisan opposition to aproposed crackdown on air pollution from industrial boilers, 18 SenateDemocrats have joined a slew of Republicans in asking EPA Administrator LisaJackson to scale back the agency’s plans. According to the new letter, whichwas circulated by Sens. Mary Landrieu (D-La.) and Susan Collins (R-Maine), therule could also hold back progress on environmental protection. The boiler rulehas prompted opposition from trade groups for the forestry industry and otherbusiness sectors, who say the rule would be too costly to implement during aneconomic downturn. According to a recent study from the Council of IndustrialBoiler Owners, every $1 billion spent on compliance with the rules for boilerswould threaten an additional 16,000 jobs. "For 40 years we have heardpredictions of doom and gloom from business groups every time EPA proposestougher clean air controls," said Frank O’Donnell, president of advocacygroup Clean Air Watch, in an e-mail responding to the study. "Thesepredictions are invariably exaggerated.” Still, the letter could signal abroader lack of support for the rule among the Democratic base. Many of theDemocratic senators who signed it — Ron Wyden and Jeff Merkley of Oregon;Patty Murray of Washington; Amy Klobuchar of Minnesota; Mark Begich of Alaska– are typically regarded as EPA boosters.

 

 

You Know It’s Worse When:Not Even EPA Can Say How Businesses Will Be Able to Comply with New CarbonRules Slated to Take Hold 3 Months From Now. Bloomberg (9/28) reports, “A panel advising the Obama administration oncarbon dioxide regulations is deadlocked over what pollution-cutting technologypower plants, factories and refineries should be required to use starting in2011. After nearly a year of talks, the work group couldn’t reconcile“divergent points of view,” according to a copy of its report to theEnvironmental Protection Agency. Companies represented on the panel includedutilities American Electric Power Co. and Southern Co. It also includedofficials from national environmental groups and state regulatory agencies. Those programs work for problems like smog and acid rain because there isproven “back-end control technology” that can be fitted to the smokestack of apower plant to capture those pollutants, he said. Equipment that captures andstores carbon dioxide is still being developed, with the Obama administrationspending $1 billion on revamping an Illinois power plant to test the viabilityof capturing carbon dioxide and sending the gas via pipeline to sites where itwill be stored underground. American Electric is also testing carbon-capturetechnology at a coal- fired plant in West Virginia. The Clean Air Act “wasnever intended for an issue like this one” and the EPA should give Congressmore time to pass legislation that includes greenhouse-gas limits whilerecognizing carbon-capture technology isn’t ready yet, McManus said.

 

 

Labor Dept. Finally GetsAround to Defining What a “Green Job” Is – And Guess What? If You’reReading This Email Right Now, Chances Are You Qualify.Pittsburgh Tribune-Review (9/29) editorializes, “The Obamaadministration’s push for hideously cost-inefficient "green" jobs –and its claims of creating nearly 200,000 such jobs — are even more laughablebecause it counts financial advisers, wholesale buyers and (ahem) newspaperreporters among them. Byron York reports for The Examiner that more than a yearago — after hundreds of millions of stimulus dollars had been spent on greenjobs — U.S. Sen. Charles Grassley, R-Iowa, asked the Labor Department justwhat it considers a green job. He’s still waiting for an answer. In themeantime, Sen. Grassley has learned that Labor defines green jobs soludicrously that numerous occupations that don’t involve protecting the environmentqualify. And both stimulus dollars and $125 million spent annually under theGreen Jobs Act of 2007 are going down Labor’s overly broad tubes. Washington"shouldn’t cook the books with how it defines these jobs," Grassleysays. "Taxpayers deserve an honest accounting for the nearly half billionof their dollars being spent on this program." This White House’sdishonest accounting not only has further damaged its tattered economiccredibility, but it has made green jobs — always losing propositions — aneven worse deal for taxpayers.

 

September 28, 2010

EarlyDismissal? Bromwich Hints that Lifting of Obama Offshore Ban Might Come ThisWeek – But Reilly Admits Effect Will Still Be “De Facto Ban.” Politico (9/27)reports, “The Obama administration is edging closer to a decision to end themoratorium on deepwater oil and gas drilling that industry and Gulf Coastlawmakers have attacked since its imposition after the Gulf of Mexico oilspill. Michael Bromwich, director of the Bureau of Ocean Energy Management,Regulation and Enforcement, said Monday he expects to issue interim rules and akey report later this week – a month early – as the Obamaadministration weighs its next move on offshore drilling. "Even when themoratorium is lifted, you’re not going to see drilling come on the next day orthe next week," Bromwich told the administration’s Oil Spill Commission ata hearing Monday in Washington, D.C. "It’s going to take some time and I’djust be guessing." William Reilly, co-chairman of the Oil SpillCommission, told reporters he expects the moratorium to be lifted before theNov. 30 deadline. But he predicted business will stillnot return to normal in the Gulf of Mexico. "It’ll be a de factomoratorium going forward," said Reilly, the former EnvironmentalProtection Agency administrator.

 

 

HailMary: Sen. Begich Applauds Landrieu’s Passion in Fighting Gulf Energy Ban –Decides to Join the Fray Himself, This Time in Defense of Alaska Energy. TheHill (9/27) reports, “Begich said he’s looking at the procedural optionsthat the Senate rules allow too. He wants a clear signal from the Obamaadministration on allowing companies to move ahead with exploratory drilling.The Interior Department has delayed Shell Oil’s plans to drill in shallowArctic waters this year, even though they’re not covered by the drilling ban.Begich now fears that 2011 could also slip away and that industry investmentwill eventually migrate elsewhere. He applied gentler pressure earlier thismonth, sending President Obama a letter urging him to personally help create “reasonabletimelines” for development. Begich said Monday that he hopes to get a responsefrom the administration, but if the soft pressure doesn’t work, he will look attougher measures when Congress returns after the mid-term elections. “If I haveto use procedural measures, we will do it, because it is getting to a point wherewe have a period that is getting shorter and shorter to make decisions,” Begichsaid.  “Mary [Landrieu], in a lotof ways, kind of showed that there are certain avenues that are necessary toget some response,” he later added, although he did not provide any detailsabout his possible efforts.

 

 

EnvirosAre REAL Sensitive to Criticism that Their “Movement” Excludes Minorities –Which Is Why Their New Plan to Oust Obama from WH IsSo Hilarious. Politico (9/27)reports, “Obama’s environmental record has been dismal, especially on climate,oil and endangered species,” said Kieran Suckling, executive director at theTucson, Ariz.-based Center for Biological Diversity. “His early appointment ofKen Salazar as secretary of the interior showed very poor judgment. So yes, apro-environment Democrat might find a surprising amount of support in a primarybattle.” “It pains me to say it, but success will require a new president,”wrote Hurowitz, now a senior fellow at the Center for International Policy. “Andthat means that after the midterm elections, we need to start looking for aprimary challenger who has the heart and soul required to save the planet fromcatastrophe and rescue American [sic] from its economic morass.” Matt Pawa, aNewton, Mass.-based private environmental attorney, said he’s been talking tohis colleagues for six to eight months about the search for a seriousDemocratic primary challenger.  “Weare actively discussing candidates among ourselves and seeking the right personto carry the banner,” he said. “I don’t know if there is someone out there who’swilling to do it, who would be perfect in terms of fitting the bill. I think itshould not be a Ralph Nader-type person. It should be someone with asignificant political base and stature who could make a serious run.”

 

 

Bodesin Motion: Folks in DC Might Think WV Gov. Joe Manchin’s a Swell Dude forOpposing Cap-and-Raid – But Guess What? Manchin Loves Him Some RES. E&E News (9/28,subs. req’d) reports, “West Virginia Gov. Joe Manchin (D) spent the past weekgobbling up endorsements from conservative advocacy groups for his Senate bid,but Republican John Raese is hoping to turn the tide by linking Machin to aliberal environmental agenda. The developments come amid signs that the race isincreasingly competitive — which is bad news for Democrats who are desperatelytrying to hold on to their majority in the Senate. Raese, a business mogul andthree-time Senate candidate, is expected to launch TV ads today that warnvoters that sending Manchin to Washington would help Democrats implementcap-and-trade legislation. Manchin, the two-term governor, opposed thecap-and-trade bill passed by the House last year and similar drafts introducedin the Senate. But Raese is trying to tie Manchin to cap and trade byhighlighting his support for a state law that requires utilities to obtain aquarter of their electricity from renewable sources by 2025. In an interviewSunday with RealClearPolitics, Raese called the law "cap and tradeManchin-style." "Do the people of West Virginia trust a governor inthe state of West Virginia who has already implemented cap and trade here inWest Virginia?" Raese said. "They’re a little concerned about sendinghim to Washington right now."

 

 

“Hippes,” Students Wielding “Mandolins” Arrested inCoal Protest at WH – Jim Hansen Too; Apparently on an Extended Lunchbreakfrom His Gov’t Job. AssociatedPress (9/28) reports, “Around 100 people have been arrested outside theWhite House while protesting against mountaintop removal mining. The protesterswere arrested Monday after refusing orders from U.S. Park Police to leave thesidewalk outside the White House. They staged a rally at nearby Freedom Plazaearlier in the day. The crowd of mostly youthful ralliers carried signs like"Blowing Up Mountains for Coal Poisons People" and "Mountainecosystems won’t grow back." Some carried small white crosses adorned withmessages such as "water pollution" and "corporate greed."The ralliers had a hippie, counterculture vibe, with some sporting facepiercings and many of the young men bearded. Some stood in circles holdinghands, and folk music played from the stage. Jeremy Cherson, a senior atAmerican University in Washington, had a mandolin around his neck and held acarrot and stick in his hand. He said the carrot was a plea for clean energyand the stick was actions like Monday’s rally. He said he skipped a class oncritical social thought to attend the rally. "My professor said that wasfine — this is critical and social," he said. James Hansen was amongthose arrest. Clickhere to see a picture of him wearing a sweet hat.

 

 

NewPush-Poll Intended to Lend Support to Pro-Cap-and-Raid Crowd Produces OppositeResult  — Turns Out Americans DON’TWant to Pay Extra for Enviro Mandates. TheHill (9/28) reports, “The poll also concludes that on average Americanswould pay at most about $20 extra per month in electricity bills if it meantmaking the U.S. less dependent on energy imports, $13 more per month if itwould mean the creation of lots of “green jobs,” and $15 per month if theirenergy use would be more environmentally friendly. The biggest percentage ofthose polled for each scenario, however, would want to pay nothing more toreach those goals. The dollar figures are smaller if those scenarios are notframed within the context of global warming, with still the highest percentageelecting not to pay anything more per month.  The telephone poll was conducted from Sept. 16-19 and polled1,161 adults, with a margin of error of 2.9 percent. Those identifyingthemselves as Democrats outweighed Republicans, 46 percent to 40 percent, with the rest labeled as independents or notleaning toward either party. Clickhere to download the Ipsos poll memo.

 

 

ThisIs Disgusting: Trial Lawyers Looking to Be Selected to Lead the LitigationAssault in the Gulf Cite Experience in Bringing Down Doctors, Rx Drugs,Businesses. WallStreet Journal (9/28) reports, “The chosen few could collect millions ofdollars in attorneys’ fees. Their peers who aren’t selected will be required tochip into a fund to have the committee members represent their points of viewbefore the judge. Louisiana attorneys James P. Roy and Stephen Herman alreadyhave secured the leadership posts of co-liaison counsel for plaintiffs. Inmultidistrict litigation such as this, judges typically cite criteria for leadattorneys, including experience handling mass torts and ability to work well asa team. Because so many attorneys tend to apply for lead roles in big cases,the applications often are laced with hubris.  The deadline for applications in the oil-spill litigationwas Monday, and the federal docket lit up throughout the day with applications."I criss-crossed the country twenty-two times in eleven months and had asubstantial role in fashioning the most complex of settlements" in Vioxxlitigation, noted Los Angeles attorney Thomas Girardi in making his case forwhy he qualified for a lead post. In an interview, Mr. Girardi said, "I’ma lot smarter now," after handling that case. In another application,attorney Scott Weinstein of Fort Myers, Fla., cited his famous clients. "Undersignedis currently Lead Counsel…representing Florida Governor Charlie Cristpersonally," he wrote.

 

 

Howa Bill Really Becomes a Law: Wash Exam Piece Tells the Tale of Wendy Van Asselt’sEffort to Use House Resources Cmte to Lock Up Land Out West. Ron Arnold writes (9/28) in the WashingtonExaminer, “Environmental activist Wendy Van Asselt was at the WorldResources Institute in 2003 when officials from the Wilderness Society made heran offer she couldn’t refuse. They wanted her to lead a huge project to remove26 million acres of federal land in the National Landscape Conservation System(NLCS) from oil and gas production, grazing, timber harvesting, mining forstrategic minerals, off-road recreation, and providing rural jobs. Van Asseltwas a logical choice for the job since she had shown in her position at WRI —and previously at the Mineral Policy Center, with its shrill “No Dirty Gold”campaign — that she had a decided preference for stopping naturalresource development, especially on federal lands. The Wyss Foundation wouldfund the new project, thanks to a Wilderness Society board member, HansjorgWyss, a Swiss entrepreneur whose net worth was estimated at $6 billion. TheHewlett Foundation would also give $1 million to the project.

 

 

ReadThis: LOGA’s Briggs Takes to the Pages of the Shreveport Paper to Provide aQuick History Lesson on the Safety, Performance of Hydraulic Fracturing. LOGA’s Don Briggs writes (9/28) in the ShreveportTimes, “Environmentalists argue that the fracturing process can contaminatewater supplies and should be regulated by the federal government under the SafeDrinking Water Act. Currently, hydraulic fracturing is closely and effectivelyregulated by state agencies. Bob Anthony, Oklahoma Corp. commissioner, said inan address to the National Association of Regulatory Utility Commissioners inJuly, "In my 20 plus years as a commissioner, I can’t think of anythingthat can compare to the all-out assault on hydraulic fracturing by groups thatare obviously using it to put a stop to the tapping of America’s abundantnatural gas supplies." Over the more than 60 years of use and nearly 1million wells that have been drilled in the United States with this process,hydraulic fracturing is a technology that has been proved by experience to besafe and effective. The Environmental Protection Agency and state regulatorshave studied the potential impacts of hydraulic fracturing on undergrounddrinking water sources and have found no confirmed evidence of anycontamination of drinking water wells in connection with hydraulic fracturingoperations.

 

Septbember 27, 2010

Boxer Rebellion: San Fran ChronWill Not Endorse Barbara Boxer in 2010 – Cites Ignominy of Being PushedAside on Cap-and-Raid as Example of Fecklessness. SanFrancisco Chronicle (9/26) editorializes, “It is extremely rare that thiseditorial page would offer no recommendation on any race, particularly one ofthis importance. This is one necessary exception.  Boxer, first elected in 1992, would not rate on anyone’slist of most influential senators. Her most famous moments on Capitol Hill havenot been ones of legislative accomplishment, but of delivering partisan shots.Although she is chair of the Environment and Public Works Committee, it istelling that leadership on the most pressing issue before it – climate change -was shifted to Sen. John Kerry, D-Mass., because the bill had become sopolarized under her wing. For some Californians, Boxer’s reliably liberalvoting record may be reason enough to give her another six years in office. Butwe believe Californians deserve more than a usually correct vote on issues theycare about.  Boxer’s campaign,playing to resentment over Fiorina’s wealth, is not only an example of thepersonalized pettiness that has infected too much of modern politics, it isalso a clear sign of desperation.

 

 

Bees Go After the Queen: Big,Tough, “Anonymously Quoted” Greens Hit Carol Browner Hard for Not DraggingCap-and-Raid Over Goal Line – Want Her Gone. Politico (9/27)reports, “The administration’s so-called energy czar is just about the onlyhigh-ranking official to emerge from the BP oil disaster with an enhancedreputation — making her, some say, the most powerful woman in the WhiteHouse next to Obama’s longtime friend Valerie Jarrett. Yet even as Browner’sstock rises, her rationale for remaining by Obama’s side is declining. Thecollapse of the administration’s comprehensive climate change effort — acareer-long goal for Browner — has stoked rumors that she’ll head for theexit rather than settle for an incremental, vastly scaled-back energyagenda.  And some environmentaladvocates, deeply disappointed that Browner didn’t have enough clout to pushclimate change to the top of Obama’s agenda, blame her for the debacle. “Thereal challenge at the top is, Carol Browner is not a strategic thinker,” gripedone environmental advocate with close ties to the administration.  “It makes a lot of sense for her to go,”said another top environmentalist, who thinks Browner has been pragmatic butalso the most committed friend of the greens in the West Wing. “If you wereher, would you stick around to watch your dream being dismantled?”

 

 

Lots of Folks Talking AboutPassing a Mandates on Expensive Electricity inWashington – But There’s One Dude Who Isn’t: His Name Is Barry. EnergyGuardian (9/27, subs. req’d) reports, “Senate Energy and Natural ResourcesChairman Jeff Bingaman’s renewable electricity standard bill quickly attractedpraise from environmentalists and green energy makers. But one voice wasnotably absent: President Barack Obama. After nearly two years pressingCongress to enact climate and renewable energy legislation, the Obamaadministration has yet to publicly endorse Bingaman’s bill. And that is notlikely to change, at least before the Nov. 2 election. There’s no reason tothink that Obama would not want to see the bill passed this year, even if the 15 percent by 2021 target is considered a weak goal by someenvironmental groups. Still, the lack of visible support means Bingaman,D-N.M. will not rely on Obama to cajole their colleagues to back their bill.Senate aides said they had not seen any White House engagement on the bill. Anadministration official, speaking on condition of anonymity because theofficial was not authorized to speak publicly, said the billis being reviewed by the White House. Bingaman’s spokesman Bill Wickersaid the senator has not sought out Obama’s endorsement. “We’re not expectingto hear from them,” Wicker said, referring to the White House.

 

 

State First: Fresh Off Defeat,Mike Castle Pushes Legislation to Allocate $50 Million to Teach Children How toAdvocate for Cap-and-Raid, Green Pork.E&E News (9/24,subs. req’d) reports, “Sen. Kirsten Gillibrand (D-N.Y.) and Reps. Jared Polis(D-Colo.) and Mike Castle (R-Del.) introduced bipartisan legislation today toensure that young Americans receive an environmental education. The NationalEnvironmental Education Reauthorization Act would modernize legislationoriginally passed in 1990 that created a program within U.S. EPA to educate thepublic about the environment. Gillibrand, a member of the Senate Environmentand Public Works Committee, said the legislation is critical to providing theUnited States’ children with the tools to fight global climate change andcreate energy independence. "This modernization of the National EnvironmentalEducation Act (NEEA) provides the guidance and resources to advanceenvironmental education programs in New York and across the country to give ourchildren the tools to become the innovators and entrepreneurs oftomorrow," she said in a news release. The bill would refocus the officewithin EPA that handles environmental education to concentrate on the greeneconomy, preparing students for jobs in fields like renewable energy, andpromoting low-emissions vehicles and green building design among otherpriorities.

 

 

MSC Prez. Reminds PennsylvaniansThat Marcellus Shale Ain’t the Only Game In Town –If PA Wants These Jobs, Harrisburg Will Need to Step Up. Marcellus Shale Coalition president Katie Klaberwrites (9/26) in the Harrisburg(Pa.) Patriot-News, “Yet as our production expands in Pennsylvania, thecompetition for the critical capital needed to produce a Marcellus well —each requires about $4 million — grows stronger and fiercer by the day.Other shale gas-producing states — particularlyTexas, Oklahoma, Louisiana and Arkansas — want those investments, andthose jobs, just as much as we do. But we’re not just competing with otherstates for these opportunities. Poland, China, Canada and other foreign nationsare working aggressively to secure the capital needed to expand their energyproduction, too. There’s a reason officials at the Kremlin read news clips fromthe Marcellus region every morning — and it’s not because they’re lookingfor coupons.  It’s no secret thatour elected officials in Harrisburg are considering a new tax on shale gasproduction. Unfortunately, some don’t seem to understand that globalcompetition for capital will react to the magnitude of the tax, evidenced bytheir consideration of a tax that would be the nation’s highest and leastcompetitive.  In fact, it would behigher than West Virginia’s, which stands as one of the least competitive inthe nation. And, as of last month, there were 16 horizontal rigs operating inWest Virginia’s Marcellus and more than 60 here in Pennsylvania. That’s not acoincidence.

 

 

Indefatigable: Sen.  LandrieuPrepared to Use Every Means Available to Stop the Insane Offshore Ban in theGulf – Latest Gambit: Block OMB Nominee. HoustonChronicle (9/24) reports, “In a bid to pressure the administration to liftits ban on deep-water drilling before it expires in late November, Sen. MaryLandrieu has vowed to block President Barack Obama’s nominee to head thefederal Office of Management and Budget. The Democrat from Louisiana explainedher single-senator blockade in a letter to Senate Majority Leader Harry Reid,D-Nev., insisting that Jack Lew “lacks sufficient concern for the host ofeconomic challenges confronting the Gulf Coast.” Landrieu and other lawmakersfrom the region have been frustrated with the administration’s ban —which has effectively halted deep-water drilling in the Gulf of Mexico —and the sluggish processing of permits to explore in shallower areas. Landrieusaid she hoped that by blocking Lew’s confirmation, she would spur theadministration to change how it handles drilling. “I do not take this steplightly,” she told Reid. “But the fact is that the administration’s moratoriumon new energy exploration is profoundly impacting the economy of the GulfCoast, while doing nothing to improve safety or environmental performance.”

 

 

Sure, the Trial Lawyers ArePowerful, and Labor Occasionally Shows a Spark – But No Lobby’s Got theMoney that the Enviros Have, or as Expansive an Agenda. Mark Tapscott writes (9/26) for the WashingtonExaminer, “They marshal thousands of volunteers during political campaignsand direct millions of dollars to favored candidates and incumbents at alllevels of government. They help train journalists in covering environmentalissues, teach millions of elementary, secondary, and post-secondary public andprivate school students, and occupy posts throughout government whereverdecisions are made on where people can live, what they drive, how they earn aliving, and virtually every other aspect of daily American life. They are, inshort, Big Green, the green gorillas of American politics and public policy,allied within the Democratic Party with Big Labor, trial lawyers, collegeprofessors, and government dependents. But there is one key difference thatmakes Big Green more powerful than all of the other special interests thatcontrol the Democratic Party. Big Labor can’t tell you where you can and cannotlive. The trial lawyers didn’t turn your daily commute to work into a nightmareof congestion and delay. Similarly, college professors have no power totransform your once-fertile farm fields into a wasteland. Government dependantswill never tell you when you can cut your grass.  Only Big Green can do those things to you. And so much more.

 

 

IPCC Folks Get Set to Give It aGo Again Later This Year in Cancun – One Problem, Though: No NationsReady to Unilaterally Destroy Their Economy, Making Matters Difficult. AssociatedPress (9/26) reports, “Climate ministers and top negotiators from dozens ofnations remain deadlocked over how to cut greenhouse gases less than threemonths before the next major international climate summit. The U.N.’s topclimate official told a high-level gathering Saturday that the key issues"are frankly in a deadlock" and the official negotiating text isbogged down by national interests. Mexican Foreign Minister Patricia Espinosa,who will preside over the December summit in Cancun, told 45 climate ministersand top negotiators that any agreement will require "close guidance fromthe highest levels of government." The meeting here helped to "showthat there are in fact areas, many areas, in which we can reach a significantagreement that would allow the possibility of initiating programs, projects andvery concrete actions against climate change in all countries," she latertold AP. Many of the participants, including Figueres and Espinosa, noted thepredominance of women in leading roles, which helped to set a friendly tone. InCancun, delegates from some 190 nations will seek to break the stalemate over alegally binding agreement on reducing emissions of carbon dioxide and othergases blamed for global warming. "The big bargain that we expected inCopenhagen would probably not be possible," Brazilian Foreign MinisterCelso Amorim told AP, adding that other small gains might be achievable.

 

September 23, 2010

IronyIs the Sincerest Form of Fate: “Green” Stimulus Funds Go Unspent By States– Why? Because They Can’t Acquire Necessary NEPA, CleanWater Act Permits. Energy Guardian (9/23, subs.req’d) reports, “The Energy Department inspector general has found that stateswere ill-equipped to handle stimulus money and have failed to spend the vastmajority of the funds they received to encourage renewable energy andefficiency. The audit released Wednesday found that as of July, states hadspent just 7.2 percent of the $3.1 billion they were sent under the stimulusfor energy efficiency and renewable energy.“Even though the Department hadgranted authority to expend funds as early as May 2009, actual spending at thestate level had been lethargic, adversely impacting planned increases in energyefficiency and economic benefits, both of which are critically important to thenation,” the report said. The stimulus money was supposed to be spent quicklyto spur job growth and lower energy usage, but the audit found that statesweren’t equipped to carry out the mission quickly, a theme echoed in otherrecent audits of stimulus programs that haven’t operated as expected. Forinstance, the IG concluded that states proposed using the money on complexprojects that required lengthy compliance checks with four major federal laws:Davis-Bacon Act, National Historic Preservation Act, Buy American provisions ofthe Recovery Act, and the National Environmental Policy Act.

 

 

Left-FringeEnviro-Crowd in the Senate Grudgingly Goes Along with National Wind Mandates– But Quick Count Suggests They’re Not At 60 Yet. Politico (9/23)reports, “Now, the bipartisan effort is drawing interest from the White Houseand Democrats, who see it as a last-ditch attempt to pass anything on energybefore Republicans swarm Capitol Hill in the midterm elections. Liberalsenators, including Sens. Ben Cardin (D-Md.), Al Franken (D-Minn.) and JohnKerry (D-Mass.), have signed on as co-sponsors. And they’re getting plenty ofhelp from environmental groups and labor and clean energy advocates, who havebeen waging a late-summer advocacy blitz. But Andrew Wheeler, former GOP staffdirector of the Senate Environment and Public Works Committee, sees the measureas a ploy. “I think it’s mostly trying to appease some of the environmentalistsbefore the election,” he said. “It’s a political plot, just like what Sen. Reidis doing on the Senate floor with ‘don’t ask, don’t tell’ and the DREAM Act andcampaign finance. It’s just another way to show the Democratic base thatthey’re trying to accomplish their priorities.” Senate Minority Leader MitchMcConnell also isn’t a fan. “Sen. McConnell does not support an electricityrate hike, particularly in the middle of a recession,” said spokesman DonStewart. “He wasn’t for the president’s job-killing national energy tax, andhe’s not for this utility rate tax hike on Kentuckians either.”

 

 

AndHere’s Why They Won’t Get 60: Even RES Supporters Admit Mandate Has Nothing toDo with Protecting the Environment.ClimateWire (9/22,subs. req’d) reports, “Bingaman’s bill requires utilities to purchase up to 15percent of their power from renewable sources by 2021. About one quarter ofthat can be achieved through energy efficiency programs. One thing it won’t dois deeply slash carbon. An RES requiring utilities to buy 25 percent of theirpower from clean sources would cut power plant emissions 2 percent by 2025, orby 277 million metric tons annually, according to an analysis by the Union ofConcerned Scientists. Compare that to the Senate’s failed climate bill thatcalled for a 17 percent cut in carbon by 2020. Bingaman’s bill would achieve"considerably less" emissions reductions, says Marchant Wentworth,deputy legislative director for the climate and energy program at UCS. "AnRES is an important but relatively small step," Joshua Freed, director ofthe Clean Energy Initiative at Third Way, a centrist Democratic think tank,said of the larger effort to address climate. "But none of this should be looked at through the frame of theenvironment."

 

 

FunnyThing About Wind: It’s Been Around for 14 Billion Years; Folks Have Been Tryingto Convert It Into Something Useful for Just as Long – Here’s Why ItFailed. John Droz, Jr. writes(9/20) for MasterResource.org,“Trying to pin down the arguments of wind promoters is a bit like trying tograb a greased balloon. Just when you think you’ve got a handle on it, itsquirts away. Let’s take a quick highlight review of how things have evolved.Wind energy was abandoned well over a hundred years ago, as it was totallyinconsistent with our burgeoning more modern needs of power, even in the late1800s. Why was a mandate necessary? Simply because the realworld reality of integrating wind energy made it a very expensive option.As such, no utility company would likely do this on their own.They had to be forced to. Interestingly, though the stated main goal of theseRES’s was to reduce CO2, not a single state’s RES required verification of CO2reduction either beforehand or after the fact from any wind project. Thepoliticians simply took the lobbyists’ word that consequential CO2 savingswould be realized. The reality is that saying “wind is an energy source” is atrivial statement, on a par with saying “wind turbines are white.” The fact isthat your cat is an energy source too. So what? Lightning is an energy source.So what? Should we also connect them to the grid (after subsidies, of course)?

 

 

BuffaloMo Hinchey Has Made a Career Out of Shutting Down Development Thousands ofMiles from His District – His Latest Pillage? PAMarcellus Activity. NYTimes/Greenwire (9/22) reports, “Brig. Gen. Peter "Duke" DeLuca,commander of the North Atlantic Division of the Army Corps of Engineers, lastweek declined a request from Rep. Maurice Hinchey (D-N.Y.) to use the federalgovernment’s vote on the Delaware River Basin Commission (DRBC) to seek atemporary ban on gas production in the Delaware watershed. Hinchey wantsdrilling there to wait until the commission completes a "cumulative impactstatement," but DeLuca said that could delay drilling for years. "Thecitizens of the basin are counting on the commission to make smart choices thatallow for environmental protection to proceed together with economicdevelopment," DeLuca wrote in the Sept. 14 letter. The letter was writtena day before Lt. Col. Philip Secrist, representing DeLuca and the Obamaadministration on the commission, voted to continue limited exploratorydrilling in the basin. The vote denied a request by environmental groupsseeking to block the drilling of test wells that were "grandfatheredin" when the commission imposed a de facto moratorium. "Just to be clearhere, Hinchey was trying to use a federal agency to direct the actions of aregional water board for the purposes of preventing the development of naturalgas in a state where he doesn’t even live," said Chris Tucker, spokesmanfor Energy in Depth, a group of independent drillers. "Next thing youknow, he’ll be ordering the Army Corps to build levees around our well sites inWyoming."

 

 

Tortoiseand the Tear: Greens in California Torn Between Massive Solar Project andPotential to Disrupt Habitat of Desert Turtle – So They Decide to OpposeSolar. The (Riverside, Calif.) PressEnterprise (9/22) reports, “A 370-megawatt solar field in rural northwestSan Bernardino County unanimously cleared the California Energy Commission onWednesday, the latest in a string of projects on a fast track to qualify forfederal stimulus money by the end of the year. The development involvesenvironmentally sensitive land and would displace a protected species, thedesert tortoise, which is threatened with extinction. David Lamfrom, Californiadesert field representative for the National Parks Conservation Association,said it will harm desert tortoises and encroach on theneighboring Mojave National Preserve with glare and other spillover effects."Pristine, tortoise-rich habitat … is not the right place for thisproject," he said in an e-mail Wednesday afternoon. "What message arewe sending if we sacrifice lands and species we have legally committed toprotect when we all know a better alternative exists?" That alternative,he said, is "hundreds of thousands of acres of disturbed lands prime forrenewable energy development, close to communities that use the energy anddesperately need the jobs." The company has said that trying to find the5.6 square miles needed for the project on disturbed lands isn’t realisticbecause such properties are scattered and privately owned, meaning thatpotentially several owners would have to be persuaded to sell.

 

 

WhichIs a Problem – Since Later Today, California ARB Is Slated to Vote on a33% RES – Never Mind That It Can’t Meet the Current Mandate. AssociatedPress (9/23) reports, “California environmental regulators are consideringa plan that would require utilities to derive a third of the electricity theysend to consumers from renewable sources like solar and wind by 2020. TheCalifornia Air Resources Board is scheduled to vote on a proposal Thursdaythat, if adopted, would create the most aggressive clean energy standards inthe nation. Gov. Arnold Schwarzenegger favors raising the state’s renewablemandate to 33 percent as one way for the state to meet the requirements of a2006 state law mandating reductions in greenhouse gas emissions. If the boardadopts the new standard, a state office that reviews new regulations has a yearto determine if it complies with the gas emissions law and to certify it.

 

 

September 22, 2010

FudgingIt: LSU Prof., AEA, Walk Through How WH Cooked the Books on MoratoriumAnalysis, Sliced Job Loss Numbers in Half. E&E News(9/21, subs. req’d) reports, "The Obama administration manipulated its data tounderstate the economic impact of its moratorium on deepwater drilling, aneconomist charged today. Joseph Mason, a Louisiana State University professorand critic of the administration’s offshore drilling policies, said theadministration’s own data suggested the moratorium had cost approximately20,000 jobs in the Gulf of Mexico region. But in an interagency report on thematter last week, the administration made an arbitrary adjustment to itsfigures to suggest the policy had cost between 8,000 and 12,000 jobs, Masonsaid. "We’re still not being realistic with the effects of themoratorium," said Mason, whose work on the moratorium is funded in part bythe pro-drilling American Energy Alliance. "There was no justification forcutting [the] effects in half. It was really outside anything that could beconsidered a standard economic analysis." The Interior Department imposedthe moratorium on deepwater drilling in July, saying drilling needed to bepaused while new regulations were crafted to respond to the BP PLC-DeepwaterHorizon oil spill in the Gulf of Mexico. The moratorium is set to expire Nov.30.

ForEvery $92,000 In, One Job Is Created – That’s What Stimulus Backers Told Us;Why Doesn’t Equation Work in Reverse in Assessing Obama Offshore Ban? WallStreet Journal (9/22) editorializes, "According to the analysis, theexpected six-month ban on deep-water drilling will result in 8,000 to 12,000jobs lost. The report crows that "these estimates are lower" thanthose predicted by other studies and that, moreover, the jobs will "not bepermanently lost," but will return when the ban is lifted. For anAdministration that loves to tout stimulus projects that create a handful jobshere or there, it takes some nerve to describe the loss of up to 12,000high-paying Gulf jobs as a triumph. The report’s numbers violate the logicoffered earlier on the stimulus spending. According to the authors of thestimulus, every $92,000 the government injected in the economy was supposed tocreate one job-year. Yet according to the moratorium report, pulling $92,000out of the economy doesn’t result in the reverse. Instead, the authors offerseveral imaginative explanations for why it is important to"discount" that $92,000 by 40% to 60% when estimating how many jobswill be lost because of the $1.8 billion decline in spending. Thus they arriveat 8,000 to 12,000 lost jobs. LSU Joseph Mason, who has penned a rigorouscritique of the report, notes that if the government had not engaged in such"ad hoc" discounting, the estimate of lost jobs would be about 20,000-inline with prior estimates.

ProducingBetter, Cheaper and More Reliable Products Than Competitors Is Hard Work, Solarand Wind Guys Finding Out – Far Easier to Hold Fundraisers for SenateDemocrats.  WallStreet Journal (9/22) editorializes, "In a free energy market, companiessucceed by producing cheaper, better products than competitors. In a"green" energy market, companies succeed by holding Beltwayfundraisers. For more on the distinction, ask Senate Majority Leader HarryReid, who will benefit today from a tony Washington money-raising breakfasthosted by top "renewable energy" industry groups. The companies thatbelong to the American Wind Energy Association or the Solar Energy IndustriesAssociation (among the fundraiser’s hosts) produce costly products that can’tcompete against traditional fuels. Their business plans are written aroundWashington subsidies and mandates. They’re obviously worried a Republicanmajority might pare back the grants, loans and tax credits, in the name ofcutting government waste. One can hope. As the event invitation noted-inrequesting $2,500 to attend-Mr. Reid’s Nevada Senate competition againstRepublican Sharron Angle is an "incredibly important race." Indeed itis if your balance sheets depend on the Democrats’ special way with taxpayermoney.

AddAnother One to the Pile – the Pile of Respected Studies and Academic Journalsthat Find a Low-Carbon Fuel Standard Won’t Reduce Emissions, But Will RaiseFuel Costs. Toronto Globeand Mail (9/21) reports, "In a report released Tuesday, Cambridge EnergyResearch Associates (CERA) calculates that a legislated 10-per-cent reductionin the carbon content of fuels – which California has already mandated andother states and provinces are now considering – would require a one-third toone-half drop in the emissions used to extract and refine crude. Without majoradvances in the adoption of other transportation fuels such as natural gas,that level of reduction will be virtually impossible for industry to achieve,at least in the next decade, CERA concludes. The impact could be even worse foroil sands exports, which are already 6 per cent more carbon-intensive thanaverage U.S. crude, the group calculated in a report entitled Oil Sands,Greenhouse Gases, and U.S. Oil Supply: Getting the Numbers Right. "Even whenyou think about carbon capture and storage or better fuel efficiency in therefinery, it’s very difficult to envision a case where you could take a thirdof your emissions out of that whole process," said Jackie Forrest, IHS CERA’sdirector for global oil, and one of the report’s authors.

1.4Billion: Number of People In the World Without Access to Electricity; SenateMight Love It Some RES, But Folks In Namibia Would Settle for Some Coal RightNow. NYTimes (9/21) reports, "Without electricity, social and economic developmentis much more difficult," Fatih Birol, the energy agency’s chief economist, saidby telephone. "Addressing sanitation, clean water, hunger – these goals can’tbe met without providing access to energy."  The problem of energy inequality mirrors the gap betweenrich and poor countries, Mr. Birol said. "The amount of electricity consumed bysub-Saharan Africa, with 800 million people, is about the same as that used inNew York State, with about 19 million people," he said.  The agency, which produced the reportin conjunction with the United Nations Development Program and the UnitedNations Industrial Development Organization, looked at both the lack of accessto electricity and the reliance on and use of traditional biomass like wood ascooking fuel. In sub-Saharan Africa, the report notes, the electrification rateis 31 percent. About 1.4 billion people around the world lack electricity, andthey are overwhelmingly in rural areas, the report said. In addition tocontributing to deforestation in poor nations, traditional cooking fuelsdegrade air quality, causing serious health problems and premature deaths, theenergy agency report says.

Yes,Virginia, There Is an Exploratory Well: This One Operating Off the Coast ofGreenland – Potentially Massive Oil and Gas Find for Cairn Energy. WallStreet Journal (9/21) reports, "Cairn Energy PLC said Tuesday it foundtraces of oil and gas in a second well drilled off the coast of Greenland, butfailed to make any commercial discoveries from its first well and wrote off $84million in exploration costs. "The presence of both oil and gas confirms an active, workingpetroleum system in the basin and is extremely encouraging at this very earlystage of our exploration campaign," Cairn Chief Executive Bill Gammellsaid in a statement. The Scottish firm’s second Greenland well is continuing todrill deeper, but preliminary tests on that bore revealed the presence of twotypes of oil intermittently over a 400-meter section of volcanic rock, and somereserves of gas, the company said. Cairn’s first well, which found noncommercial volumes of gas last month,has been plugged and abandoned. The company has written off the cost of thewell, in accordance with standard industry accounting practice.  Cairn plans to continue exploring foroil for several years off Greenland’s west coast-a little-explored regionsimilar in size to the North Sea. Before drilling commenced, the company hadgiven itself just a 10% chance of making a significant oil discovery in itsfirst batch of wells.

Don’tSay Calzada Didn’t Warn You: Facing Prospect of Reduced Subsidies, German SolarDevelopers Rush to Lock-in 20 Year Guarantee of Well-Above-Market Prices. Bloomberg(9/22) reports, "Germany is installing 10 times as much solar power capacitythis year as the U.S. Investors are racing to lock in above- market rates for20 years while they can. Germany’s parliament decided July 8 on a 16 percentreduction in solar subsidies, and another reduction in the so-called feed-intariffs is scheduled for January. Mikio Katayama, president of Sharp Corp.,Japan’s biggest solar-panel maker, said last week the Osaka-based company mayboost sales by 50 percent this year, faster than it earlier forecast, onincreased demand in Europe. Sharp today agreed to buy California’s RecurrentEnergy for as much as $305 million. The all-cash deal will be completed by theend of the year, the companies said. Global 2010 sales for photovoltaic panels may more than double to asmuch as 18,000 megawatts and then flatten next year as countries includingGermany, Italy and France cut solar energy subsidies, Bloomberg New EnergyFinance estimated.  Germany meetsas much as 10 percent of its power demand from the sun on some days, AndreasHaenel, chief executive officer of German solar-plant developer Phoenix SolarAG, said in an interview last month. In the southernmost state of Bavaria,solar power contributes as much as 25 percent of total electricity when the sunshines and demand is low, he said.

DarrenSamuelsohn, NRDC’s Writer-In-Residence at Politico, Pens Article on Coal, Oiland Natural Gas Industries – But Forgets to Get Any Quotes From Them. Politico (9/22)reports, "A series of high-profile disasters this year, topped by the country’sworst-ever oil spill, has brought unprecedented attention to the country’s coalmines, oil drillers and natural gas pipelines. Energy industry officials insisttheir safety record is still second to none as the nation’s thirst for theirproducts continues to grow. But they still have an escalating PR disaster ontheir hands thanks to the series of fatal and visually powerful events. "We’renot hearing about wind turbines falling and chopping up chickens on a farm orsolar panels frying somebody’s head," said Daniel J. Weiss, senior fellow atthe Center for American Progress Action Fund. "Fossil fuel production, as wellas combustion, is a dirty business." Congress has kept busy responding to the various disasters, from holdinghearings to writing major safety bills dealing with each of the key industrialsectors. And environmental groups have tried – unsuccessfully – to use theevents as a launching pad for legislation to cap carbon dioxide emissions.Environmentalists also see in the series of accidents a golden opportunity topush for other energy-saving measures, highlight problems with the industry’saging infrastructure and attack government regulators they say are guilty oflax oversight.

September 20, 2010

Nutty:Sen. Feinstein Calls Approps-Led Attempt to Prevent EPA’s Criminalization ofCarbon "Very Squirrelly" – Even Though She Wants to Use Same Approps Bill toBlock Offshore Energy. Politico (9/20)reports, "Just last week, environmentalists and the Obama administration dodgeda bullet when the Senate Appropriations Committee canceled a markup of EPA’sspending bill, in which agency foes could have the votes to cut off climatefunds for at least one year.  "That’sa vulnerability – and a significant one," said an environmentalist of thespending committee’s composition. Sen. Dianne Feinstein (D-Calif.), chairwoman of the subpanel thatoversees EPA’s budget, refused to handicap the prospects for any climate rider."It’s very squirrelly," she said Thursday. "That’s all I’m going to say."Dozens of industry trade groups are leaning on the Senate to clamp down on EPAand leave the legislative heavy lifting on climate change to a future sessionof Congress. "A vote to delay pending EPA greenhouse gas emissions [rules] willprovide Congress the opportunity to develop sound policy approaches to addressgreenhouse gas emissions, rather than default to a poorly designed EPAregulatory approach," Michael Morris, CEO of American Electric Power and arepresentative of the Business Roundtable, said last week in a letter tosenators.

Enviros’Chili Already Running Hot Thanks to Downfall of Cap-and-Raid – Now Those SameDems Who Couldn’t Deliver Want Greens to Knock Doors for ‘Em. Politico (9/20)reports, "Stung by a series of recent legislative setbacks and facingemboldened and financially flush opponents, environmentalists are hunkeringdown in the lead-up to November’s midterm elections. The focus on playingdefense is a distinct shift from past years, when greens and like-mindedprogressives poured their resources into knocking out industry-friendlyincumbents in a bid to clear the way for a sweeping energy and climate victorythat never happened. Environmentalists refute the idea that they’re no longerplaying offense. They point to a number of competitive races across the countryin which they say they can pick up seats, such as in Missouri, where DemocratRobin Carnahan hopes to fill the Senate seat of retiring Republican KitBond.  But ask environmentalists toname their top priorities for this fall, and they sound very much like adefensive-minded team.  "Our toppriority is defeating Proposition 23," said Tony Massaro, senior vice presidentof political affairs for the League of Conservation Voters.

16Months After National Ozone Limits Were Slashed by 15%, EPA Wants to Slash ‘EmAgain by Another 20% — With Absolutely ZERO Science to Back It Up. WallStreet Journal (9/20) reports, "In 2008, the George W. Bush administrationtightened the ozone standard from 84 ppb to its current level of 75. The EPAnormally waits at least five years before revising the standards. A spokesmanfor Ms. Jackson says the standard set by the Bush administration doesn’tsufficiently protect public health and that the administrator "isdetermined to set a standard that protects all Americans."  Congressional Republicans have attackedthe new standard as a threat to economic growth and job creation.  Two of the top Republicans on the HouseEnergy and Commerce Committee-Reps. Joe Barton and Michael Burgess, both ofTexas-called the proposal "extraordinarily expensive and unworkable."A group of senators led by George Voinovich and Evan Bayh recently urged Ms.Jackson in a letter to reconsider the proposal, saying it would "have asignificant negative impact on our states’ workers and families and willcompound the hardship that may are now facing in these difficult economictimes." West Virginia Gov. Joe Manchin, the party’s candidate for the U.S.Senate seat long held by Robert Byrd, wrote to Ms. Jackson last month andaccused the EPA of "adding an unnecessary element of confusion" byproposing to change the standards "prematurely."

Meanwhile,In the Senate, Tom Carper’s "3E’s" Emissions Bill Laid to Rest – Turns Out ItHad Liability Protections, Which Made the Trial Lawyers Balk. E&E News (9/20,subs. req’d) reports, "Sen. Tom Carper (D-Del.) is no longer asking the SenateEnvironment and Public Works Committee to vote on his proposal to setnationwide limits on air pollution from coal-fired power plants, he announcedlate Friday. Carper, the chairman of EPW’s Clean Air and Nuclear SafetySubcommittee, had been seeking a markup for a bill (S. 2995) that would setnationwide limits on sulfur dioxide (SO2), nitrogen oxides (NOx) and mercuryfrom coal plants. The bill would require more reductions than U.S. EPA’sproposed Clean Air Transport Rule but would allow more interstate trading thanthe agency’s proposal. And while the Carper-Alexander bill’s emissions caps arestricter than the ones that EPA proposed in July, the legislation would providemore certainty for businesses by fending off potential legal challenges,supporters said. Utilities ended up spending billions of dollars on emissionscontrols to prepare for CAIR before it was struck down in 2008.Environmentalists wanted the emissions limits in the bill to be stricter. Theyalso opposed any amendments that would make the bill weaker than theregulations coming out of EPA.

90%of World’s Largest Businesses See "Significant Opportunity" in Climate Change -And Guess What? All They Need Is Taxpayer Money to Seize On It. Bloomberg(9/20) reports, "More companies foresee business opportunities that may offsetthe market risks of climate change, a survey by institutional investorsfound.  Almost 90 percent of thoseresponding in the survey of 500 of the world’s largest public companiesidentified "significant opportunities" from climate change, up from 80 percentlast year, the Carbon Disclosure Project said in a report today. Siemens AG,Europe’s largest engineering company, and Texas Instruments Inc., the U.S.chipmaker, were among those citing new markets for sustainable products andmore demand for energy- efficient appliances. "We’re seeing a segregation goingon between companies that have a strategy to control costs and to profit from acarbon-constrained world, and other companies — a lot of them are in theUnited States — that are being held back by a government that’s not addressingthis issue," Dickinson said in an interview. Almost half of companies surveyedsaid they are "embedding" climate change and carbon management into theirbusiness strategy, and 85 percent reported senior executives had responsibilityfor climate policy.

ThisIs Why We Love the Greens: With Their Political World Crumbling Around Them,They Decide to Spend Millions on Campaign Targeting Detergent Soap. NYTimes (9/20) reports, "Consumers are not always thrilled about theperformance of environmentally friendly cleaning products. Some consumer andenvironmental organizations even argue that many cleaning products marketed asenvironmentally beneficial are not green enough. One group, Women’s Voices forthe Earth, advocates the use of homemade products because most manufacturersstill use potentially harmful ingredients like dyes, fragrances andpreservatives – their formulas undisclosed, as trade secrets – in productscertified by third-party green labels. "There’s still toxic chemicals in thesesupposedly green products, and unless the company discloses all ingredients,consumers are still in the dark," said Cassidy Randall, program and outreachcoordinator for the group. She said the main concern for many consumers,especially mothers of young children, is "whether the product is safe, not howit’s going to work." Detergents for commercial dishwashers, which operate athigher heat levels than the residential types, are exempt from the new law fornow because manufacturers need time to research how to make those formula workwithout phosphates.

BananaRepublic: Trail Lawyers in Chevron Case Want TRIPLE the Amount They RequestedBefore – $113 Billion for Damages The Gov’t Already Settled on Earlier. WallStreet Journal (9/19) reports, "Plaintiffs suing Chevron Corp. in Ecuadorhave increased their damages claim to a possible $113 billion, raising it morethan four times a previous estimate. Pablo Fajardo, the lawyer leading Ecuador’slegal team on behalf of people from the country’s Amazon region, said Fridaythe damages range was now between $40 billion and $113 billion. The newassessment was submitted to the Lago Agrio Court in the Amazon region onThursday, when the 45-day period given by the Lago Agrio court for both partiesto submit their own damages assessment finished. In November 2008, RichardCabrera, a court-appointed expert, told the Lago Agrio Court that the companyshould pay $27.3 billion in compensation for environmental damages in theAndean country. On Thursday, Chevron submitted expert testimony to the samecourt from scientists, "demonstrating that there is no evidentiary basisfor the lawsuit against the company," according to a company statement.  Chevron also has renewed its motion fordismissal of the case, saying there is no evidence of liability.

DanBeard’s Nightmare: Pelosi’s Penchant for Spending Millions on BoondoggleCapitol Greening Initiatives May Come to an End Under New Majority. Politico (9/19)reports, "Boehner has long been at odds with several parts of Pelosi’senvironmental push, calling them "a waste of money." "It reminds me of theCatholic Church in the Middle Ages, when we had indulgences," Boehner said ofPelosi’s initial plan to buy carbon offsets to atone for the House’s energyuse. And when the cafeterias started offering more exotic, healthful fare,Boehner had a laugh. "I like real food – food that I can pronounce the name of,"Boehner told media outlets after the House initiated a three-year diningcontract with Restaurant Associates, which immediately began incorporatinglocally grown and organic foods like bok choy and jicama into the menus. TheHouse’s food contract with Restaurant Associates, which is part of the Greenthe Capitol program, expires this fall, and it would be up to a new regime inCongress to renew it. As it stands, key parts of the Green the Capitol projectare not complete, including a more than $1 million initiative to revamp theCapitol dome with energy-efficient lighting, which could easily be dismissed ina transition to a Speaker Boehner, said aides close to the project who askednot to be identified.

September 16, 2010

Coal MinersStand Up to Obama Admin., EPA; Rally on Capitol Hill to Save Their Jobs.  AP (9/15) reports, "Hundredsof coal miners rallied on Capitol Hill Wednesday against the Obamaadministration’s attempts to rein in mountaintop removal mining, accusing theEnvironmental Protection Agency of trying to wipe out the coal industry."This administration is trying to shut down coal and fire all ofyou," said Rep. Hal Rogers, R-Ky., adding that the EPA was practicing"strangulation by regulation." The industry-backed group Faces ofCoal said it paid for most of the travel and lodging expenses for the coalminers, who came from West Virginia, Virginia, Kentucky, Pennsylvania and Ohio.Speakers included politicians from both parties and country music singer StellaParton. Ralliers wore blue Faces of Coal T-shirts, and some sported hard hats.They hoisted signs that said, "Coal Keeps the Lights on," and"Coal Miners ‘Dig’ Their Jobs." When an opening prayer was given, itincluded thanks to God for natural resources such as coal. "They’re tryingto take our jobs," yelled Haven King, a 65-year-old retired coal minerfrom Hazard, Ky. "We have to stand up." West Virginia Gov. JoeManchin, a Democrat, said that the EPA is blocking jobs. "West Virginiawill fight back and every coal state must fight back," he said.

With CongressBack in Session, Some Call for Offshore Moratorium, Others Bring Facts to theDiscussion. Tom Pyle (9/15)writes for the DailyCaller, "This week, Congress holds hearings to discuss what is widelyseen as a politically-motivated moratorium on deepwater drilling. The Presidentis fully aware that an extended drilling ban would cost thousands of jobs;energy officials within Obama’s own administration have predicted that anextended drilling ban would reduce domestic oil production by 82,000 barrelsper day in 2011. The Louisiana Mid-Continent Oil and Gas Association statesthat nearly 80% of the oil produced in the Gulf comes from wells in the deeperwaters. They estimate that the costs of the exploration suspension rangebetween $8.25 million and $16.5 million per day in rig costs; $1 million perday in costs for support boats; and $165 million to $330 million per month inlost wages for all 33 deepwater rigs. Louisiana Governor Bobby Jindal (R) hasstipulated that the ongoing economic devastation of the spill may be surpassedby the impacts of the moratorium. Sen. Mary Landrieu (D-LA) recently statedthat "the result of this Administration’s decision will still be a substantialloss of jobs – jobs that may not return to the Gulf for years." The expansivedisconnect between voters and their elected representatives is particularlynoticeable with respect to energy policy. A recent Rasmussen poll revealed that61% of those surveyed rank finding new sources of energy as more important thanreducing the amount of energy Americans now consume. Survey after surveyindicates that Americans overwhelmingly support domestic energy development,from oil or natural gas. However, this Administration and its Congressionalallies remain convinced that making domestic energy more expensive and harderto produce is what’s best for American families.

Sure theNatural Gas Industry Created over 44K Jobs in Pennsylvania Last Year; How DoesGov. Rendell Reward the Industry? How ‘Bout a Big Fat Tax. Grover Norquist and Patrick Gleason (9/16) writefor Politico,"Over the next three weeks, the front lines of the energy policy debateare likely to shift from Capitol Hill to Harrisburg, Pa. For Gov. Ed Rendellhas launched an assault on domestic energy production unrivaled by any otherlawmaker or chief executive in the country, President Barack Obama included.Pennsylvania is on the verge of what many policy experts are calling amodern-day gold rush, thanks to the Marcellus Shale formation, a natural gasdeposit that spans most of the state. It only recently, because oftechnological advances, became a viable source of clean-burning natural gas. Infact, Marcellus may turn out to be the second-largest gas deposit in the world.It promises great potential for economic expansion and job creation in a stateand region sorely in need of both. Development of the Marcellus Shale was oneof the few bright spots in Pennsylvania’s economy last year, according to arecent Penn State study, creating 44,000 new high-paying jobs and generatingnearly $1.4 billion in additional federal, state and local tax revenue.

New Poll: 62%of Americans Oppose New Taxes on Oil and Natural Gas; 60% Say Such a Tax WillCost Jobs. Oiland Gas Journal (9/15) reports, "Nearly two thirds of America’s votersoppose raising taxes on the oil and gas industry in the US and believe it coulddestroy jobs, the American Petroleum Institute announced on Sept. 14. API saida telephone survey it commissioned by Harris Interactive found that 62% of therespondents opposed increasing oil and gas taxes, and 60% said it could costthe nation jobs. "Voters fear that raising taxes on an industry that providesmost of their energy and supports more than 9.2 million jobs would hurt themand damage the economy," said API Pres. Jack N. Gerard. "They think it couldcost jobs, and that’s exactly what two recent studies show." Gerard noted thatbased on a Wood Mackenzie analysis in August of production impacts fromeliminating the manufacturing and intangible drilling cost tax deductions forthe oil and natural gas industry, API calculated 58,800 jobs would be put atrisk in 2011 and 165,000 in 2020. A separate study of the impacts of ending themanufacturing tax deduction and increasing taxes on the industry’sforeign-earned income by Louisiana State University finance professor Joseph R.Mason concluded that 154,000 jobs could be lost in 2011, Gerard said. Mason’sstudy, which was released on Sept. 13 by the American Energy Alliance, anInstitute for Energy Research affiliate, also indicated that excluding the oiland gas industry from the manufacturers’ tax deduction and repealing dualcapacity foreign tax credits would reduce US economic output by $341.3 billion,tax revenue by $83.5 billion, and workers’ wages by $67.8 billion between 2011and 2020.

A Win for theGood Guys. Federal Judge Sides with Railroad Industry, Interstate Commerce overGreenies on Emissions in SoCal.  LATimes (9/16) reports, "Air quality watchdogs in Southern Californiacan’t impose limits on emissions from idling trains because they couldinterfere with interstate commerce that the federal government regulates, afederal appeals court ruled Wednesday. The decision dealt a blow to attempts byair quality regulators in the Los Angeles region, who have been attempting tolimit emissions in the densely populated areas around San Pedro Bay ports,through which 40% of the nation’s containerized cargo flows. The U.S. 9thCircuit Court of Appeals upheld a previous decision from the U.S. DistrictCourt for the Central District of California. The lawsuit filed by the Assn. ofAmerican Railroads and the BNSF and Union Pacific railroad companies challengedrestrictions imposed in 2005 and 2006 by the South Coast Air Quality ManagementDistrict, which covers Los Angeles, Orange, Riverside and San Bernardinocounties. In cities along the Los Angeles river corridor, activists have takenaim at diesel pollution from four rail yards, including BNSF Railway’s Hobartfacility, the world’s busiest "intermodal" yard, which transfers 1.2million containers a year between trucks and trains. Diesel exhaust from trainsand trucks is blamed for high cancer rates in several cities along thecorridor. But the air quality district’s rules are preempted by the InterstateCommerce Commission Termination Act of 1995, which says state and local lawscannot unreasonably burden interstate commerce, a three-judge panel of the 9thCircuit said in its ruling.

Rent-SeekingCorporations, Unions, Expensive-Energy Lobbyists Cobble Together 21 Groups toSign Statement in Support of Pinwheel and Sun Catcher Mandate. Newsworthy?ToSome. Reuters (9/16)reports, "Congress must pass a national renewable electricity standard(RES) this fall to stop the dramatic downslide in the American clean energysector, 21 companies, think tanks and trade and advocacy organizations said. Afederal edict would protect thousands of jobs threatened by a sector slowdownand stop capital from flowing out of the U.S. and into China, according to theRES Action Statement, whose signatories include Iberdrola Renewables, theUnited Steelworkers Union, the Union of Concerned Scientists and GE Energy."The jobs and the investment are going to China," said Don Furman, asenior vice president for wind company Iberdrola Renewables, in a conferencecall with reporters. "If we wait another year, we’re going to lose alot." It is the first time such a large cross-sector coalition hasendorsed a specific national clean power standard. The groups, sponsored by theRES Alliance for Jobs, are rallying behind the "Bingaman RES," aweaker option than proposals previously backed by many signatories to theaction statement. Described as "anemic" not long ago, the near-suddenenthusiasm for the policy reveals the dire state at which advocates have arrived,after Congress punted on cap and trade and other climate policies to curtailgreenhouse gas emissions. 

AffordableEnergy Battleground: California and New Jersey. AB32 Campaign Heats up in Cali,NJ Gov. Under Pressure to Drop Out of RGGI. Politico(9/15) reports, "The nation’s premier state-led climate programs are underattack by a growing coalition of industry, tea party and conservativeactivists. Opponents to limits on greenhouse gas emissions see the fights inCalifornia and New Jersey as the next step in the fight over global warmingpolicy after the demise of federal cap-and-trade legislation on Capitol Hill. "Thisis definitely a new battlefield worth reconsidering in light of threat No. 1being shelved," said Clint Woods, energy, environment and agricultural directorat the American Legislative Exchange Council, a free market advocacy group. InCalifornia, Texas oil giants Valero and Tesoro are spearheading a Novemberballot initiative to derail the Golden State’s landmark 2006 law capping itsgreenhouse gas emissions. In New Jersey, conservatives are leaning onRepublican Gov. Chris Christie to drop out of a 10-state regional cap-and-tradecompact and show his true political stripes as he raises his national profilewith an endorsement tour this fall. Similar efforts could follow in otherstates, depending on how November gubernatorial races shake out.

September 15, 2010

SmallWonder: Mike Castle Had Been Winning Statewide Elections in Delaware for 30Years — Then Came Cap-and-Raid; He Said Yes, His Voters Said No. SeattleTimes newswire (9/15) reports, "O’Donnell’s triumph, though, is the moststriking yet, because Castle, 71, has been winning statewide elections inDelaware for 30 years, while O’Donnell was making her third Senate bid in fouryears. She lost badly the other two times. Castle raised about $3.2 million andhad a seasoned staff behind him; O’Donnell had few resources and raised only$376,000. Castle supporters stood in stunned silence as returns rolled in athis election party but erupted into cheers when he took the stage. "Thevoters in the Republican primary have spoken, and I respect thatdecision," he said. The race took a sharp turn for the negative threeweeks ago after the Tea Party Express announced it would come to O’Donnell’said. Castle, a former two-term governor and veteran of 18 years in the House,repeatedly was assailed as a liberal, a Republican in name only. What set meoff was the stimulus bill," said Chris Shirey, a respiratory therapist andthe state’s tea-party coordinator. "I’d be for it if it was muchsmaller." She found like-minded people with other complaints. They wereangry at Castle’s support of the 2008 bank bailout and of the Democrats’cap-and-trade legislation last year. He was one of eight House Republicans tosupport the bill.

Toughto Blame the Corporate Interests for Backing Enviros’ Efforts to CriminalizeCarbon – It’s Good for Business, Especially If You’re in the Business ofSeeking Rents. Amanda Careywrites (9/14) for the DailyCaller, "In the words of Dan Kish, senior vice president at the Institute for Energy Research: "At theend of the day, the stuff they want us to buy is just more expensive." "Energyruns the world," said Kish. "It is directly linked with wealth and economicoutput … The question here is whether these are just good people who happen tobelieve in saving the earth." "They all go to the government to try and changethe underpinning of our economic society," Kish continued. "But at the end ofthe day the dial stops and everybody’s dancing together." Meanwhile, Obama’sgreen industrial complex continues to grow. But as the web of influentialplayers stretches, it is not by accident that environmentalists are usingcorporations to advance their agenda. "GE and others have signed up to be BigGreen’s PR outfits, though they don’t even realize whose pocket they’re in,convinced they’re the ones using the greens," said Horner. "When politiciansand activists not typically fans of private enterprise suddenly boast thatAmerica’s biggest  corporationssupport the green industry lobbying for these schemes, it is quietly assumed tobe virtuous. No one asks the basic question, ‘why is that, precisely?’"

SpeakingOf: Folks Pushin’ for a National Mandate on Expensive, Intermittent EnergyUnleash Unprecedented PR/Lobbying Effort to Sneak It Thru Before Nov. Politico’s Morning Energy (9/15)reports, "You can add a [national unreliable energy mandate – "RES"] to thegrowing list of things the Senate isn’t going to touch this work period. TheCousins Udall, two of the chamber’s strongest advocates for the renewablestandard, told reporters yesterday that, try as they might, their effort haslittle chance of gaining traction in the near term. Tom (D-N.M.): "I don’tthink we’re going to get there. I just don’t hear it on the list." Mark(D-Colo.) went one better: "The clock is running for the next three to four weeksand there’s no realistic chance of an energy proposal coming to the floor."While their concession is a blow to the RES crowd who is in the midst of anadvocacy blitz, Mark Udall was quick to provide them with a glimmer of hope. "Iknow it’s very much in discussion for the lame duck," he said, adding that SamBrownback and a handful of other GOP votes would likely be in play. Brownbackwarned that his vote isn’t guaranteed. "I’m not going to go along with justanything [Reid] throws in there…. I believe in it, I think it’s the right thingto do, but I can’t be cute with it." RES advocates will hold a press call at 10a.m. in order to continue to beat the drum for passage of a renewable standardthis year. Organizers are billing the call as a "major announcement," and oneadvocate tells Morning Energy that environmentalists, the clean energy crowdand labor will show "unified support for a specific, viable RES for the firsttime."

Easyto Offer Up an Amendment Seeking to Raise Taxes on Energy When You’re Not Upfor Re-Elect This Cycle, Right Bill Nelson? Amazed Your Colleagues FeltDifferently. Energy Guardian (9/14, subs.req’d) reports, "The Senate on Tuesday defeated a tax-reporting proposaltargeted at a group of oil and gas producers that could have increased theindustry’s operating costs. The amendment offered by Sen. Bill Nelson, D-Fla.,to the small business jobs bill sought to repeal the Section 199 manufacturingdeduction for oil and natural gas companies. It was defeated 56 to 42, fallingshort of the 60 votes needed to end debate on the proposal. API previouslywarned Senate leadership the tax proposal would kill jobs. "We are pleased theSenate failed to approve this shortsighted amendment that sought to unfairlyrepeal a job-creating tax provision for a handful of oil and natural gascompanies. Had it passed, the provision would have raised taxes and killedjobs, something the nation cannot afford, especially when so many Americans areout of work," said API’s Stephen Comstock. The Section 199 tax law wasimplemented in 2004 to allow companies to deduct a portion of their income fromdomestic production and manufacturing activities. API chief executive JackGerard told reporters on a conference call Tuesday that the oil and gasindustry created two million jobs between 2004 and 2007, which he called anindicator of the industry’s ability to assist in economic recovery.  "We believe at this time it is veryimportant not to do anything to discourage job creation, and to bring energycreation to the marketplace," Gerard said. "Section 199 is a perfect example."

TheUntouchables: Italian Mafia Uses "Green Pork" Hand-Outs, Wind Mandates toLaunder Nearly $2 Billion – US Mafia, Run By GE and Google, Look to Do the SameHere. LondonTelegraph (9/14) reports, "Police in Italy have seized Mafia-linked assetsworth $1.9 billion – the biggest mob haul ever – in an operation revealing thatthe crime group was trying to "go green" by laundering money throughalternative energy companies. Investigators said the assets included more than40 companies, hundreds of parcels of land, buildings, factories, bank accounts,stocks, fast cars and luxury yachts. Most of the seized assets were located inSicily, home of the Cosa Nostra, and in southern Calabria, home of its sistercrime organisation, the ‘Ndrangheta. Investigators said Nicastri’s companiesran numerous wind farms as well as factories that produced solar energy panels.The cupola, or hierarchy, of the Sicilian Mafia has been in freefall since themid-1990s, when police began arresting its most enigmatic and charismaticbosses. Salvatore "The Beast" Riina, who had declared war on thestate and ordered a string of killings, bombings and kidnappings, was arrestedin 1993 after nearly a quarter of a century on the run. His successor, BernardoProvenzano, was captured in 2006 after 43 years on the run. Both Riina andProvenzano hailed from Corleone, the hill town near Palermo made famous by theGodfather movies.

TheLast Thing Rick Boucher Wanted to Hear: Waxman Promises Resurrection ofCap-and-Raid Should Dems Hold Onto the House – Even By a Single Seat. Politico (9/14)reports, "The campaign to pass climate legislation will continue on CapitolHill in 2011 – if Democrats are still in charge, that is. That’s the wordTuesday from a top House Democrat who led the charge over the last two years topass a major cap-and-trade bill. Energy and Commerce Committee Chairman Henry Waxman won narrow passageof his global warming bill through committee and on the floor during the firstsix months of the Obama administration in 2009. But the legislation haswithered in the Senate ever since, with Republicans and many moderate Democratsbalking at a floor vote during an election year.  Republican congressional candidates have pledged to blockcap-and-trade legislation next year if they are in the majority. Democrats havebeen a bit more circumspect about their agenda plans if they can hold on to theHouse, Senate, or both.  Asked ifhe’d push climate legislation next year if he’s still in a majority leadershipposition, Waxman told POLITICO, "If we haven’t done the job completely thisyear, we’ll continue to fight it next year through the House and the Senate."  Some of the House Democrats from heavyindustrial districts who voted for the Waxman-led climate bill are now underfire on the campaign trail, a point that the congressman from Beverly Hillsalso bemoaned.  "I think we’ve gotto get away from looking at this issue as a partisan issue," Waxman said.

Di-FiNeeds Wi-Fi; Maybe Then, Sen. Feinstein Would Know that Her Approps RiderSeeking to Ban Offshore Energy Along Pacific OCS Is Superfluous.  TheHill (9/14) reports, "The Interior Department spending bill slated formarkup in the Senate Appropriations Committee will re-impose oil-and-gasdrilling bans off the Pacific Coast that lapsed after decades in 2008, Sen.Dianne Feinstein (D-Calif.) said. Obama administration offshore leasing plansdo not contemplate oil-and-gas development off the coasts of California, Oregonor Washington. But Feinstein – who chairs the subcommittee that crafts Interiorspending bills – said in the Capitol Tuesday that the measure would re-instatethe bans to provide extra protection. Offshore drilling bans that Congress hadlong imposed on the Atlantic and Pacific Coasts were allowed to lapse in thefall of 2008 during a feverish election-year fight over oil-and-gasoline pricesthat hit record highs that summer. Then-President George W. Bush removedoverlapping White House bans that summer as well. But the measure thatFeinstein has inserted into the fiscal year 2011 spending bill – if successful -will be a sign that the political pendulum has swung away from expandeddrilling in the wake of the BP oil spill. Congressional drilling bans werefirst imposed in federal waters off the central and northern California coastin 1982, and were later expanded to include southern California and the coastsof Washington and Oregon.

ConsiderYourself Bromwich’d: New BOEM Director Says that No New Offshore Reforms WillBe Implemented Unless Congress Appropriates Him a Ton of Cash. DowJones/WSJ (9/14) reports, "Michael Bromwich, the head of the agency thatregulates offshore drilling, pleaded his case Tuesday. "If we don’t getthe additional resources, we won’t be able to do the job effectively," hesaid in a call with reporters. "I think it’s that simple." Mr.Bromwich also said it was "highly unlikely" that the administrationwould extend its moratorium on deep-water oil drilling beyond its scheduledexpiration date of Nov. 30. He said the industry has made progress on measuresto contain and respond to spills. The moratorium is under attack in court fromthe oil and gas industry.  A reportlast week by the Interior Department said the bureau’s inspectors operate"with minimal resources" and noted that the bureau has just 55inspectors in the Gulf of Mexico to inspect about 3,000 oil and gas facilities.While there is broad support in Congress for overhauling Mr. Bromwich’s agency,it isn’t clear whether lawmakers will go along with some of theadministration’s ideas for paying for the reorganization. The White House hasproposed paying for the agency’s budget increase in part by increasing fees onoil and gas companies.  Theproposed fee increases drew criticism Tuesday from the American PetroleumInstitute, which noted that the oil industry already pays the governmentbillions of dollars each year in bids for drilling leases, rental fees,royalties on production and taxes on income.