March 2010

Green Jobs Fantasy

by Iain Murray on March 4, 2010

in Blog

I have a piece in National Review Online today outlining the fantasy behind Sen. Lindsey Graham’s latest attempt to keep cap-and-trade alive. Here’s the beginning:

After declaring energy cap-and-trade “dead” in the Senate, the Left’s new favorite Republican, Sen. Lindsey Graham (R., S.C.) has been working hard to resurrect it under another name. Working with Senators Kerry (D., Mass.) and Lieberman (I., Conn.), along with lobbyists for the major electric utilities (and, err, Big Oil), Senator Graham appears to have come up with a new boondoggle that would institute a cap-and-trade scheme for utilities only, thereby creating a carbon cartel. The plan would impose a carbon “fee” on transportation fuels, driving up the price of gas, that would be rebated in the shape of funding for highway projects — which the Big Oil lobbyists appear to believe would help offset the rise in gas prices. All of this, of course, amounts to a new tax on energy, so Senator Graham and his cohorts are cloaking their smash-and-grab raid in the mantle of investment in “green jobs.”

Read the whole thing here.

Instead of exercising its “judgment,” as required by Sec. 202 of the Clean Air Act, to determine whether greenhouse gas (GHG) emissions endanger public health and welfare, EPA largely deferred to the judgment of an external agency not subject to U.S. data quality and freedom of information laws — the United Nations Intergovernmental Panel on Climate Change (IPCC).

The IPCC developed three lines of evidence for its conclusion that GHG emissions are causing dangerous global warming. The first is based on the IPCC’s understanding of the physics of the climate system. The second is the claim that recent decades are unusually warm compared to previous centuries during the current interglacial period known as the Holocene. The third line of evidence is the asserted agreement between observations and computer model simulations.

Peabody Energy’s 240-page petition for reconsideration assesses these lines of evidence in light of new information not in EPA’s possession when it drafted the endangerment finding. Much of this new information is contained in the thousands of emails and other files that produced the Climategate scandal. The files and emails provide an insider’s look at the professional (or unprofessional) behavior of leading climate scientists at the UK’s Climate Research Unit and their colleagues in the United States. This scandal has led to the resignation (allegedly temporary) of Dr. Phil Jones as director of the CRU and an official determination that the CRU violated the UK’s freedom of information act

Peabody concludes that the Climategate files undermine each of the IPCC’s principal lines of evidence, and confirm what many climate “skeptics” had long suspected:

The CRU information reveals that many of the principal scientists who authored key chapters of the IPCC scientific assessments were driven by a policy agenda that caused them to cross the line from neutral science to advocacy. Indeed, they went far beyond even what is acceptable as advocacy, as they actively suppressed information that was contrary to the “nice, tidy story” that they wished to present, they refused to disclose underlying data concerning the studies in which they were involved to third parties who might use the information to critique those studies, they engaged in a wide variety of improper and indeed unethical tactics to manipulate the type of scientific information that appeared both in the IPCC reports and in the peer-reviewed scientific journals upon which the IPCC largely relied, and they relied on inaccurate and unverified information from secondary source material that was included anyway to advance the authors’ advocacy agenda. Moreover, the Information Commissioner’s Office of the United Kingdom (“U.K.”), the agency that oversees and enforces the U.K.’s freedom of information laws, after investigation, recently concluded that CRU broke those laws in refusing to respond to information requests.

EPA’s only reasonable course of action, Peabody argues, is to reopen the endangerment proceeding:

EPA has effectively delegated its judgment under section 202(a) of the CAA to an international body that acted contrary to basic U.S. standards of information quality, integrity and transparency. In the interests of good science and policy, and as required by law, EPA must now reconsider its Endangerment Finding in light of the CRU revelations. The importance of low-cost, reliable energy to the economy is too high for EPA to begin regulation based on such an uncertain foundation.

Duke Energy advises its customers to prepare for the ravages of global warming.

Duke Energy advises its customers to prepare for the ravages of global warming.

While Duke Energy’s Chairman, CEO, and President, James Rogers, spends millions of dollars of his customers’ money lobbying for cap-and-trade on Capitol Hill, the company’s web page for its South Carolina customers is passing along tips on how to handle cold weather.  Shouldn’t Duke Energy be warning its customers how much more they are going to have to pay to Duke Energy in higher electric rates if Congress passes the cap-and-trade legislation that Duke Energy supports?

In recent weeks I have penned four columns debunking the smear campaign against Sen. Lisa Murkowski’s (R-AK) Congressional Review Act (CRA) resolution of disapproval to stop EPA from dealing itself into a position to make climate and energy policy for the nation — a power Congress never delegated to EPA when it enacted the Clean Air Act.

Climate Politics: When Will the Sanctimony End? (MasterResource.Org, Mar. 2) debunks the calumny that the Murkowski resolution is “polluter-crafted,” and shows that this pejorative accurately applies to the Waxman-Markey cap-and-trade bill — legislation that many Murkowski detractors such as Climate Progress and MoveOn.org enthusiastically support.

MoveOn’s Triple Whopper (Pajamas Media, Feb. 10) shows that MoveOn.org’s TV ad campaign against the Murkowski resolution piles falsehood on top of falsehood on top of falsehood. MoveOn claims the Murkowski resolution would “roll back” the Clean Air Act (it wouldn’t), making it harder for EPA to clean the air (it wouldn’t). We should all be in a panic , MoveOn suggests, because “many Americans smoke the equivalent of a pack a day just from breathing the air.” An outrageous falsehood. According to peer-reviewed scientific research, smoking just one cigarette a day delivers anywhere from 12 to 27 times the daily dose of fine particulate matter (PM2.5) that non-smokers inhale in cities with the highest PM2.5 levels.

The aforementioned piece and two others — Resolution Would Protect the Economy (National Journal, Jan. 27) and Move Afoot in the Senate to Can EPA CO2 Regs (Pajamas Media, Jan. 23) – clarify what the Murkowski resolution is and isn’t.

Contrary to Sen. Barbara Boxer (D-CA) and other critics, the resolution is not a referendum on EPA’s science. Rather, it is a referendum on the constitutional propriety of unelected bureaucrats, courts, and eco-litigation groups setting climate and energy policy for the nation. The resolution is not an attempt to veto the scientific content of EPA’s endangerment finding. Rather, it would veto the finding’s legal force and effect.

Thus, there is no valid analogy, as Sen. Boxer claims, between the Murkowski resolution and Congress vetoing the Surgeon General’s finding that cigaratte smoking causes cancer. The Surgeon General’s finding was simply that — an assessment of the scientific literature. It did not even presume to offer policy recommendations, much less trigger a host of new regulations Congress never approved, as EPA’s endangerment finding will do if allowed to stand.

The Obama Administration warns that the Murkowski resolution would thrust the distressed U.S. auto industry into regulatory limbo, because the endangerment finding is the trigger for the combined greenhouse gas/fuel economy standards rulemaking scheduled to go into effect later this month or early April.

The National Auto Dealers Association (NADA) respectfully disagrees. In this letter, released today, NADA argues the Murkowski resolution would benefit the auto industry because there would be one less redundant yet potentially conflicting standard (EPA’s) regulating fuel economy and GHG emissions from new motor vehicles.

I’ll have more to say about NADA’s analysis in a later post.

Richard Morrison, Jeremy Lott and Brooke Oberwetter unite to bring you Episode 82 of the LibertyWeek podcast. In addition to our other stories, we cover Christopher Booker’s recent column on how Climategate has produced a perfect storm for the IPCC (segment begins ~10:20 in).

[youtube:http://www.youtube.com/watch?v=KKubO8T-1zg 285 234]

The Wyoming House and Senate have passed the nation’s first tax on wind energy and sent the bill to Governor Dave Freudenthal.  The Democratic Governor proposed the new tax to the Republican-dominated legislature last month and so is almost certain to sign the bill into law.

The new excise tax of one dollar per megawatt hour will begin in 2012 and will apply  to windmills that have been generating electricity for three years or more.  Revenues are to be split 60-40 between counties and the State.

Amusingly, Denise Bode, CEO of the American Wind Energy Association, complained about the proposed tax on the grounds that it would discourage wind power production:  “It is very disturbing to hear that one of the great States for resources wants to tax the industry and discourage the development of jobs in their State.”  She did not mention that Wyoming already taxes oil, natural gas, and coal production, which is why it doesn’t levy a personal income tax.  Nor did she mention that wind power receives huge subsidies from federal taxpayers.  The Department of Energy’s Energy Information Agency estimated in 2008 that wind receives $23.37 in federal subsidies per megawatt hour.  So Wyoming has quite a ways to go before it captures the entire federal subsidy.

It will be interesting to watch how quickly other States follow Wyoming’s example.

It’s not clear what Al Gore has been doing the past three months since the Climategate scientific fraud scandal broke–perhaps doing a bit of interplanetary travel or hanging out in a remote cave discussing how to de-industrialize America with his fellow global warming alarmist, Osama bin Laden.  No matter, Gore has returned to his global warming crusade with an op-ed in the Sunday New York Times.  And what an op-ed!   “We can’t wish away climate change” is 1896 words, or about three times the length of most op-eds.  Unfortunately, the leader of the forces of darkness hasn’t learned a thing during his mysterious sabbatical.

Gore begins by claiming that “it would be an enormous relief” if global warming turned out not to be a crisis.  This is undoubtedly true for most people, but Gore can’t resist piling on: “I, for one, genuinely wish that the climate crisis were an illusion.”  Oh, really?  Can anyone believe that the man who has remade himself from a losing presidential candidate into the savior of the planet wants it all to go away?  And who stands to make hundreds of millions or even billions of dollars from investments in green technology if energy-rationing policies are enacted?  Would he give back his Oscar and his Nobel Peace Prize?

Gore then summarizes Climategate as “the discovery of at least two mistakes in the thousands of pages of careful scientific work over the last 22 years by the Intergovernmental Panel on Climate Change.”  Yes, at least two mistakes.  One that he doesn’t mention is the systematic manipulation of data in order to make the 1930s and ’40s appear cooler and the 1990s and 2000s warmer in the surface temperature record.  Another is the conspiracy to cover up the Medieval Warm Period with the infamous hockey-stick graph.  Nor does Gore mention that Professor Phil Jones, the central figure in Climategate, conceded in a recent interview that there has been no statistically significant global warming since 1995.

For Gore, the scientific case for alarmism is exactly as it was before Climategate, except that it’s “clearer and clearer” that things are actually worse than scientists thought.  This is a refrain Gore trots out every few months, and it is  the main reason he continues to lose credibility.

From misrepresenting the science Gore moves on to describe the political obstacles to global energy rationing.  He correctly summarizes the obstacles as formidable, but can’t resist telling another tall tale.  He claims that China “had privately signaled last year that if the United States passed meaningful legislation, it would join in serious efforts to produce an effective treaty” in Copenhagen.  But when the Senate failed to pass cap-and-trade, “the Chinese balked.”  This “private signal” is sheer fantasy.  The Chinese government have made it clear in the most direct, undiplomatic language at every international global warming pow-wow for years that they will not commit to mandatory emissions reductions.

Gore concludes with a long, incoherent rant about why he and his fellow doomsters have so far failed.  It all started with the fall of Communism.  This allowed “market fundamentalists” to convince ignorant voters that, “Laws and regulations interfering with the operations of the market carried a faint odor of the discredited statist adversary we had just defeated.”

So what is to be done?  Here Gore becomes totally unglued.  “…[W]hat is at stake is our ability to use the rule of law as an instrument of human redemption.”  The point about a regime of laws in particular and politics in general is that they cannot be instruments of human redemption.  Gore’s global salvationism (to use English economist David Henderson’s insightful term) is not far removed from the totalitarianism of Communism and National Socialism, as he makes clear in his 1992 book, Earth in the Balance.

And where does Gore put his hopes for human redemption?  Hilariously, Gore is counting on Senators John Kerry (D-Mass.), Lindsey Graham (R-SC), and Joseph Lieberman (I-Conn.), who may release a draft energy-rationing bill this week that Gore hopes “will place a true cap on carbon emissions.”

This shows that Gore can still get a laugh now and then, but he’s become another illustration of the old adage that even the best vaudeville acts eventually wear out.  It’s time for Al Gore to hang up the soft shoes and shuffle off the stage.