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OpenMarket: Energy and Environment

  • Clean Energy Incentive Program: Why It Makes EPA's Power Plant Rule Even More Unlawful

    August 25, 2015 6:24 PM

    EPA’s Clean Power Plan (CPP), which imposes carbon dioxide (CO2) emission rate targets and tonnage caps on state electric power sectors, is unlawful in at least half a dozen ways.

    To mention just one flaw, Section 111(d) of the Clean Air Act, the CPP’s putative statutory basis, authorizes EPA to regulate “particular” “stationary sources,” not the wider marketplace, networked industry, or sector of which a source happens to be a part. Yet the CPP will compel states to revise their laws and regulations on electric dispatch policy, fuel mix policy, and demand-management policy.

    EPA’s final CPP contains a key initiative not mentioned in the draft rule: the Clean Energy Incentive Program (CEIP). EPA added the CEIP to jumpstart investment in wind and solar power, assuring environmental groups and renewable energy interests the CPP won’t trigger a ‘dash to gas’ as it suppresses electric power generation from coal. In other words, the CEIP’s job is to make sure the Clean Power Plan rigs the marketplace against all fossil-fuel generation. 

    The CEIP is an early action credit program. By “early,” EPA means the CEIP authorizes states to award regulatory credits for new renewable power provided before the CPP compliance period (2022-2030). EPA will, in addition, award up to 300 million tons worth of extra credits to ‘early actors’ on a matching basis.

    You might suppose EPA would explain the legal authority for a policy change potentially affecting hundreds of companies’ bottom lines. Yet neither the final CPP, the CEIP fact sheet, nor EPA’s proposed federal implementation plan discusses the CEIP’s statutory basis.

  • Is President Obama's Energy Wish Coming True?

    August 18, 2015 8:19 AM

    In a January 17, 2008, interview with the San Francisco Chronicle, then-Senator Obama said that “electricity rates would necessarily skyrocket” under his plan to fight global warming. He also said that under his plan, “if somebody wants to build a coal-powered plant, they can; it’s just that it will bankrupt them.” 

    His latter wish seems to becoming a reality. Bristol-based coal producer Alpha Natural filed for Chapter 11 bankruptcy protection earlier this month. It follows many other coal companies, such as Walter Energy Inc., Patriot Coal Corp., and James River Coal Co., in filing for bankruptcy.

    For fossil fuels, this may be just the beginning. The Obama administration’s Clean Power Plan is said to “accomplish little in the way of making any significant change in global emissions while simultaneously crippling the oil and gas industry and floating more ‘green energy’ plans which weren’t pulling their own weight.”  

  • Party Bias in EPA's Power Plant Rule?

    August 12, 2015 10:17 AM

    What’s the main difference between EPA’s final rule to regulate carbon dioxide (CO2) emissions from state electric-power sectors—the so-called Clean Power Plan (CPP), released August 3—and the draft rule, published in June 2014?

    “The media have focused on modest tweaks to non-binding national goals—emissions are now expected to drop 32 percent by 2030, versus 30 percent in the draft, and coal is expected to provide 27 percent of our power instead of 31 percent—but those aren’t the changes that matter,” argues Politico reporter Michael Grunwald.

    What does matter? The changes to states’ legally-binding emission-reduction targets, which have “serious political implications.” The final rule is more aggressively anti-coal than the draft rule:

    The original draft took it easiest on states with the heaviest reliance on dirty fossil fuels – states that nevertheless complained the most about Obama’s supposedly draconian plan. The final rule cracks down much harder on those states, while taking it much easier on states that are already moving toward cleaner sources of electricity.

    Check out this excellent chart compiled by my colleague Alex Guillen. North Dakota would have been required to cut emissions just 10.6 percent to comply with the draft rule, the least of any state; it will have to cut emissions 44.9 percent to comply with the final rule, the most of any state except for similarly fossil-fueled Montana and South Dakota. Coal-rich Wyoming, Kentucky, West Virginia and Indiana were also among the biggest losers in the revised plan. Meanwhile, the states that are already greening their grid – led by Washington, Oregon and New York – were the biggest winners in the final rule.

    Is there also a partisan thrust to this pattern? The title of Grunwald’s article calls the CPP a “whack at red states.” The article itself, however, does not use the terms “Red State” and “Blue State.”

    So let’s look at how the draft and final rule targets compare in states won by Mitt Romney (“Red”) and those won by President Obama (“Blue”) in the 2012 presidential election.

  • EPA's Proposed and Final "Clean Power" Plan: Which Is Worse?

    August 4, 2015 6:46 PM

    “Climate Rule Worse than We Thought,” Sen. John Barrasso (R-Wyo.) warned today in an email alert about EPA’s so-called Clean Power Plan (CPP). He explains:

    The final rule cuts coal, which today provides about 39 percent of the country’s electricity, even more than the administration proposed in June 2014. The rule also relies heavily on renewables, which only provide five percent of energy today despite significant investments. And it eliminates the move to natural gas that created thousands of jobs across the country. This all means electricity bills will go up, and jobs will be lost.

  • Green Alarmism about Sunscreen Debunked

    August 4, 2015 7:03 AM

    Often spoon-fed alarmist hype by green activist groups, reporters rarely get the science right about the risks associated with trace chemicals found in consumer products. Accordingly, kudos go to the author of a piece published on Fox News (originally published on Health.com), which debunks activist-generated misinformation about chemicals used to make sunscreens. In the past, I have pointed out that Fox News has blindly reported misinformation pushed by greens, particularly the Environmental Working Group, so this latest report is refreshing. 

    The story explains:

    [T]he skin experts Health talked to were adamant that we should be more worried about shielding our skin from the sun’s harmful UV rays than about the chemical makeup of the products we’re using to do that.

    “Five million Americans are treated for skin cancer each year, and an estimated 9,940 people will die of melanoma”— the deadliest type of skin cancer— ”in 2015,” Steven Wang, MD, head of dermatological surgery at Memorial Sloan Kettering Basking Ridge in Basking Ridge, New Jersey, told Health. “The biggest precaution that you should be taking is using sunscreen. There is enough research at this point from various credible bodies that say sunscreens are safe and, when used appropriately, will reduce skin cancer.”

    This reporter appears to understand that we need to consider the benefits of products and weigh them against the risks. And it should be clear to any honest observer, that avoiding the real and substantial risk of skin cancer from sun exposure, is far higher than any theoretical and unproven risks associated with short-term, trace exposures to certain manmade chemicals.

  • How Markets Benefit Honeybees and Mankind

    August 3, 2015 8:32 AM

    After more than a decade of panicked reports about honeybees disappearing and potentially going extinct because of a phenomenon called “colony collapse disorder,” The Washington Post reported last week that the number of hives in the United States has reached a 20 year high. At the same time, I was making presentation at a meeting of the American Legislative Exchange Council, explaining that globally, there are more beehives today than there were in 1961, according to the Food and Agriculture Organization (FAO) of the United Nations.

    That is not to say that beekeepers haven’t had some challenges related to diseases and other factors that affect hive health. While such issues may raise the cost of keeping hives, they have not led to any serious long-term decline that warrants panic about the survival of this species.

    Honeybees will not go extinct any time soon for the same reason we don’t fear the loss of cows or chickens. All these species have important market value. Honeybees are largely a domesticated species, not completely different from cattle or even the family dog, and their very presence here in the United States has always been driven by the desire for honey or pollination services. In fact, when the colonists appeared in America, there were no honeybees. They had to be imported from Europe so that the settlers could have an affordable supply of honey.

  • EPA Reportedly Will Issue Final Rules on Power Plant Greenhouse Gas Emissions This Week

    August 3, 2015 7:51 AM

    Mainstream media outlets reported this week that the Environmental Protection Agency will release its final rules for limiting greenhouse gas emissions from new and existing power plants today or tomorrow, 3rd or 4th August. The Washington Post and the New York Times both ran stories that contain details of changes in the rules provided by unnamed White House sources. It was also reported that President Barack Obama will join EPA Administrator Gina McCarthy at a White House Rose Garden press briefing to announce the rules.

    According to these reports, the final rule for existing power plants, the so-called “Clean Power” Plan, will differ from the proposed rule released in June 2014 in several ways. The deadline for States to implement their plans to reduce emissions will be moved from 2020 to 2022. The EPA will offer extra credit to States that take early action to increase renewable energy and energy efficiency. Another report suggested that the final rule will give credit for nuclear plants under construction or being planned, rather than including them in the baseline. 

    After the final rules are released, the Cooler Heads Coalition’s web site, GlobalWarming.org, will provide analysis and links to other useful analyses. In addition, the American Energy Alliance has just created a hub for the “latest information on how States and the public are fighting back against the EPA’s so-called Clean Power Plan.”.

  • A Primer on Expected EPA Climate Rules

    July 31, 2015 12:41 PM

    In 2010, during the 111th Congress, Senate Majority Leader Harry Reid shelved a cap-and-trade bill because too many Democrats opposed the bill during caucus meetings. And during his 2012 reelection campaign, President Obama conspicuously dodged speaking about climate change. Despite the failure of climate policy within his own party in the Senate, and after neglecting the issue altogether in 2012, President Obama in the summer of 2013 unveiled a far-reaching executive strategy for addressing global warming, known as the Climate Action Plan.

  • Joel Kotkin's Analysis of Pope Francis's Encyclical

    July 6, 2015 11:58 AM

    Joel Kotkin has written an outstanding analysis posted on the Daily Beast of Pope Francis’s encyclical, Laudato Si’. I would quibble with certain details. For example, I think Francis is more influenced by Liberation Theology than by Argentina’s Peronist economy. And Kotkin’s historical account of the “Middle Ages” is based on outdated scholarship. But he is absolutely correct that the encyclical allies the Pope with radical Greens who hate capitalism and favor de-industrialization.

    Here are several excerpts from Kotkin’s insightful article:

    What makes the Pope’s position so important—after all, the world is rejecting his views on such things as gay marriage and abortion—is how it jibes with the world view of some of the secular world’s best-funded, influential, and powerful forces. In contrast to both Socialist and capitalist thought, both the Pope and the greens are suspicious about economic growth itself, and seem to regard material progress as aggression against the health of the planet.

    Another flash point between papal concerns and those of their new best friends lies in addressing poverty. The Pope is correct in identifying inequality and poverty as major concerns, but it’s hard to say how green strategies—particularly when they make energy, housing, and industry far more expensive—actually alleviate the plight of the poor or the middle class. Ultimately the green platform seeks not to increase living standards as we currently understand them (particularly in high income countries) but to purposely lower them. This can be seen in the calls for “de-development,” a phrase employed by President Obama’s science advisor John Holdren for all “overdeveloped” advanced countries, in part to discourage developing countries from following a similar path.    

    Given the reluctance of still poor countries to further impoverish themselves, the burden of the Catholic-green alliance will necessarily fall on the middle and working classes. As we can already see in California (the state with the most draconian environment laws), long-term economic growth has been tepid, despite the occasional tech and property bubbles. At the same time, the state suffers not only among the highest unemployment rates in the country, but the highest level of poverty, when cost of living is addressed, and has become home to one-third of the nation’s welfare recipients.

    This confluence of private interest, public power and the clerical class is suggestive of a new feudal epoch. Bankrolled by inherited money, including from the oil-rich Rockefellers as well as Silicon Valley, the green alliance has already shown remarkable marketing savvy and media power to promote its agenda. Now that their approach is officially also the ideology of the world’s largest and most important church, discussion of climate change has become both secular and religious dogma at the same time. 

  • Vatican Downplays Political Involvement in Climate Debate While Joining Forces with Radical Leftist Naomi Klein

    July 1, 2015 7:28 PM

    Kathryn Jean Lopez reports on NRO’s The Corner that Cardinal Peter Turkson downplayed the political intentions of Pope Francis’s encyclical, Laudato Si’, when he spoke to a “high level discussion” in New York City Tuesday night (June 30).

    According to Lopez, Turkson said that the encyclical was, “Rather than a political or doomsday document, it’s a call to better stewardship.” Moreover: “He also insisted that Pope Francis is not against business and never puts them down in it or elsewhere but challenges business and technology to always be used to help the poor.”

    Cardinal Turkson, president of the Pontifical Council for Justice and Peace and the Vatican’s point man on climate action, was apparently speaking to a group of prominent Roman Catholics, many of whom were probably concerned about what they had read about the papal encyclical. And apparently the cardinal thought that he could get away with what he said because few in the audience had read the encyclical. 

    But earlier in the day, the cardinal addressed the United Nations’ High Level Meeting on Climate Change, convened by UN Secretary-General Ban Ki-moon. To that very different audience, Cardinal Turkson had a very different message: “Overcoming poverty and reducing environmental degradation will require the human community seriously to review the dominant model of development, production, commerce and consumption…. Such a courageous review and reform will take place only if we heed ‘the call to seek other ways of understanding the economy and progress’ (quoted from paragraph 16 of the encyclical). The political dimension needs to re-establish democratic control over the economy and finance, that is, over the basic choices made by human societies.”

    Much of what Cardinal Turkson said was in the political code used by leftist international bureaucrats. If anyone doubts that Pope Francis’s Laudato Si’ is a political rant that advocates dismantling modern industrial civilization, then consider the climate conference that the Vatican is hosting this week. Cardinal Turkson invited Naomi Klein to co-chair the conference.

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