April 2011

Post image for Arnold Revisits Judgment Day

Depending on where you live, April 21, 2011 may have already faded into yet another non-apocalyptic win for humanity. If not, you may still have about 12 hours to be worried.

Arnold Schwarzenegger has taken to The Wall Street Journal op-ed pages to warn of the potential future termination of humanity:

Today, I have tears in my eyes again, but for a very different reason. Some in Washington are threatening to pull the plug on this success. Since January, there have been more than a dozen proposals in Congress to limit enforcement of our clean-air rules, create special-interest loopholes, and attempt to reverse scientific findings. These attacks go by different names and target different aspects of the law, but they all amount to the same thing: dirtier air.

This is not an abstract political fight. If these proposals are passed, more mercury, dioxins, carbon pollution and acid gases will end up in the air our kids breathe. More Americans will get sick, end up in the hospital, and die from respiratory illness.

Don’t cry, Arnold! Much of this is an abstract political fight. The major push back and political grandstanding against the proposed EPA rules is what, if anything, should be done about the release of carbon dioxide into the atmosphere. The only proposal floated by Congress was found to be horribly ineffective, even by many environmentalists. During that fight, the Obama administration threatened opponents to accept it, because EPA regulations would follow if the legislation didn’t pass, and the EPA wasn’t capable of providing efficient or even effective “solutions.”

And here we are, with the EPA moving forward on costly regulations (during a recession) that, according to their own estimates, will reduce temperatures in 2100 by anywhere from 0.0015 to 0.006 degrees centigrade. Remember, Arnold, whatever your opinion on the historical benefits of the EPA, past performance is no guarantee of future success.

Finally, Arnold points to California as a model economy:

And, as I know from California’s experience, clean-air rules have led to innovation and new technologies that have created hundreds of thousands of new jobs and billions in clean-energy investment.

I’m not sure California ought to be cited as the model of anything, given their inability to budget and the steady exodus of business from the state.

 

Post image for The IPCC and Conflicts of Interest

Via Roger Pielke Jr.

The IPCC has released documents to address policy changes related to concerns over conflicts of interest that may exist for authors of IPCC reports (summary here). They refer to conflicts of interest as mainly financial in nature, though allow for the possibility of significant non-financial COI’s to be considered as well.

They also have an interesting discussion on the difference between a conflict of interest and bias, noting that bias is mostly unavoidable and attempts will be made to balance perspectives:

Conflict of interest policies in scientific assessment bodies typically make a distinction between “conflict of interest” and “bias,” which refers to a point of view or perspective that is strongly held regarding a particular issue or set of issues. In the case of author and review teams, bias can and should be managed through the selection of a balance of perspectives. For example, it is expected that IPCC author teams will include individuals with different perspectives and affiliations.

Unfortunately, as Roger points out, there a number of problems that remain to be addressed. The submissions rely entirely on individual authors to disclose potential COI’s, and many could go unreported. The most glaring problem though is that the committee will work in secret on these issues and will disclose none of this information to the public.

Given the extent to which there have been problems involving IPCC authors, a tilt towards further transparency of these disclosures or deliberations (while respecting an individual’s financial privacy) seems like a good idea. Do they expect people to be satisfied with “trust us, we looked into this” given past issues?

Google “global warming” and “flooding,” and you’ll find 3.96 million sites where these topics are discussed together. The overwhelming majority of sites, it’s safe to assume, warn of global warming-induced increases in the frequency and severity of flooding.

And if you’ve paid any attention to the global warming debate, you know that alarmists predictably predict that climate change impacts are even worse than they previously predicted.

But, as noted in an earlier post, a recent study based on global tide gauge data (Houston and Dean, 2011) found that the rate of sea-level rise over the past 80 years did not accelerate and, in fact, slightly decelerated. Just the opposite of what we usually hear.

A new study (Bouzotias et al., 2011) by scientists with the National Technical University of Athens brings more good news: Discharge records of the world’s river basins show a decreasing trend in floods over the past 50 years.

The researchers examined extreme floods at 119 stations worldwide with records longer than 50 years. In particular, they analyzed “trends and persistence (else known as Hurst-Kolmogorov dynamics), which characterizes the temporal streamflow variability across several time scales.”

Noting the “common belief” that “the severity, frequency and consequences from floods have been increased in recent years,” the Bouzotios team sought to determine “whether there is a general increasing tendency worldwide, especially considering the last climate period (after 1970) when the effects of global warming are believed to be apparent.”

Here’s what they found:

Analysis of trends and of aggregated time series on climatic (30-year) scale does not indicate consistent trends worldwide. Despite common perception, in general, the detected trends are more negative (less intense floods in most recent years) than positive. Similarly, Svensson et al. (2005) and Di Baldassarre et al. (2010) did not find systematical change neither in flood increasing or decreasing numbers nor change in flood magnitudes in their analysis.

“California is experiencing the fastest rate of of companies relocating to out-of-state or out-of-country locations since a specialized tracking system was put into place two years ago,” reports business relocation coach Joseph Vranich. Seventy companies completely or partly moved their operations out of California since Jan. 1, 2011 for reasons other than business expansion. 

Vranich says the 70 “disinvestment events” understate the exodus of capital and jobs from California: “It’s estimated that only one out of five losses becomes public knowledge, if that.”

Why are companies leaving the Golden State? As you might expect, California’s out-of-control spending, high taxes, and burdensome regulations figure among the top 10 reasons. Vranich, however, recently added high energy costs to the list:

The #10 Reason (New!) – Unprecedented Energy Costs: The California Manufacturers and Technology Association states that commercial electrical rates here already are 50% higher than in the rest of the country. However, a law enacted in April 12, 2011 requires utilities to get one-third of their power from renewable sources (e.g., solar panels, windmills) within nine years. Look for costs to increase by another 19% in many places to a whopping 74% in Los Angeles. Such new burdens along with upcoming regulations stemming from the “California Global Warming Solutions Act” set potentially overwhelming obstacles to companies here as they try to meet competition based in other states and in foreign nations.

 For many years, California Democrats — notably Rep. Henry Waxman and Sen. Barbara Boxer — have been at the forefront of congressional efforts to enact cap-and-tax and promote EPA’s greenhouse power grab. Waxman and Boxer have worked tirelessly to export California’s energy (or anti-energy) policies to the rest of the nation. They continue to push the “California model” as the path to a “clean energy future.” Vranich’s report is a sobering reminder of how foolish it would be for the nation to take their advice.

Post image for EPA’s Regulatory Burden

Last week I received a message from someone knowledgeable about both the EPA and the Hill. It speaks for itself:

Shimkus is holding a hearing now on the coal ash rule, which is live on the committee web site.  The assistant administrator for Solid Waste and Emergency Response or someone from EPA just said that EPA always weighed costs and benefits before implementing a regulation and would never implement a regulation when the costs outweighed the benefits.  Whitfield asked him what proposed regulations had been killed when they found that the costs did outweigh the benefits.  The EPA guy said that he couldn’t think of any off the top of his head so would have to get back to him.  Whitfield asked him to provide one example, so that they could see the difference between a regulation that met the cost-benefit test and one that didn’t.  Don’t hold your breath.

EPA is one of the leading agencies burdening us with more and more regulation every year. For instance, at the moment it has these in the pipeline:

  • Rulemaking to address greenhouse gas emissions from motor vehicles
  • Clean air visibility, mercury, and ozone implementation rules
  • Review of National Ambient Air Quality Standards for lead, ozone, sulfur dioxide, particulate matter, and nitrogen dioxide
  • Rulemakings regarding lead-based paint• National drinking water regulations covering groundwater and surface water
  • National emission standards for hazardous air pollutants from plywood and composite wood products, certain reciprocating internal combustion engines, and auto paints
  • Renewable fuels standard program
  • Standards for cooling water intake structures
  • Combined rulemaking for industrial, commercial, and institutional boilers and process heaters
  • Standards for management of electric power producer coal-combustion wastes
  • Control of emissions from nonroad spark ignition engines, new locomotives, and new marine diesel engines

That’s one of the astonishing facts contained in my CEI colleague Wayne Crews’ annual review of the regulatory state, Ten Thousand Commandments, which is released today. I have a more general review of what it contains over National Review Online.

On April 6, 2011, 50 Senators voted for S. 482, the Energy Tax Prevention Act, a bill to stop EPA from ‘legislating’ climate policy under the guise of implementing the Clean Air Act. Supporters needed 60 votes to pass the bill. “Senate Definitively Beats Back Efforts to Restrict EPA Climate Rules,” declared the title of Inside EPA’s column (April 8, 2011) on the vote. That is spin masquerading as news.

Let’s review some not-so-ancient history. In 2003, Sens. John McCain (R-Ariz.) and Joe Lieberman (D-Conn.) introduced S. 139, the Climate Stewardship Act, a carbon cap-and-trade bill. It was defeated by a vote of 43-55. In 2005, McCain and Lieberman introduced a revised version, S. 1151, the Climate Stewardship and Innovation Act. It went down in flames by a bigger margin: 38-60. In 2007, McLieberman introduced yet another iteration (S. 280), which never even made it to the floor for a vote.

In three different Congresses, the McLieberman bill died in the Senate. After these continual defeats, did Inside EPA, the bill’s sponsors, or any environmental group declare that the Senate “definitively” rejected cap-and-trade?

Of course not. Yet S. 482 garnered more votes than any cap-and-trade bill the Senate has ever debated. Sponsors of S. 482 say they will press for other opportunities to hold additional votes. The day after the Senate vote, the House passed an identical measure (H.R. 910) by a vote of 255-172, a large victory margin that should improve prospects for eventual passage in the Senate. 

Another vote could occur as early as next month when Congress debates whether to raise the national debt ceiling. House Speaker John Boehner (R-Ohio) suggested last week that legislation to raise the debt ceiling — a key priority for Team Obama and Senate Majority Leader Harry Reed (D-Nev.) — might have to include curbs on EPA’s regulatory authority (The Hill, April 16, 2011). 

Since reports of S. 482’s demise are greatly exaggerated, it is useful to examine the tactics of leading Senate opponents. Previous posts review California Sen. Barbara Boxer’s tirade against S. 482 and Montana Sen. Max Baucus’s alternative legislation to codify EPA’s ever-growing ensemble of greenhouse gas (GHG) regulations. Today’s post offers a running commentary on New Jersey Sen. Frank Lautenberg’s floor statement opposing S. 482 (Congressional Record, April 6, 2011, pp. S2170-71). If Lautenberg’s rant is the best opponents can do, they have “definitively” lost the debate. [click to continue…]

Post image for This Week in the Congress

House Committee Acts To Stop President’s de facto Drilling Moratorium

The House Natural Resources Committee marked up three bills on Wednesday that would require the Obama Administration to stop its obstructive tactics and start producing more oil and natural gas from federal Outer Continental Shelf areas.  Committee Democrats dragged out the mark-up for nine hours by offering and insisting on recorded votes on a series of amendments to weaken or gut the three bills—H. R. 1229, 1230, and 1231.  None of their amendments was adopted.

It is expected that the House will pass all three bills in May.  Committee Chairman Doc Hastings (R-Wash.) plans to introduce additional bills in the next few months to increase domestic oil and gas production on federal lands in Alaska and the Rocky Mountains as part of House Republicans’ American Energy Initiative.

House Leadership Tacitly Endorses Excellent EPA Strategy

Environment and Energy News reported this week that House Speaker John Boehner (R-Ohio) did not rule out attaching something like the Energy Tax Prevention Act (H. R. 910) to the bill to raise the federal debt ceiling.  H. R. 910 would block the Environmental Protection Agency from using the Clean Air Act to regulate greenhouse gas emissions.  It passed the House last week on a 255 to 172 vote, but failed as an amendment in the Senate on a 50 to 50 vote.

[click to continue…]

Post image for Reviews of the Cornell Natural Gas Study

As was widely reported this week,  a new study has just come out concluding that, compared to coal, shale gas fracking is anywhere from just as bad to much worse in terms of greenhouse gas emissions. Despite the holy-grail of peer-revision, there appear to be some very obvious methodological problems and reliance on very poor data (which the researchers have admitted, and wish they had access to better information).

Here is a piece of a review from Matt Ridley, entitled “Black Propaganda.” (Read the whole thing):

So, in other words, shale gas has greater global warming potential than coal only if you rely on lousy data, misunderstood accounting categories, quadrupled assumptions about methane’s relative greenhouse potential — and then only in the short term, when people like Black are always telling us it is the long term we should worry about.

A review from Michael Levi of CFR (again, the whole thing is worth reading):

First, the data for leakage from well completions and pipelines, which is where he’s finding most of his methane leaks, is really bad. Howarth used what he could get – figures for well completion leakage from a few isolated cases reported in industry magazines, and numbers for pipeline leakage from long-distance pipelines in Russia – but what he could get was very thin. There is simply no way to know (without access to much more data) if the numbers he uses are at all representative of reality.

Second, Howarth’s gas-to-coal comparisons are all done on a per energy unit basis. That means that he compares the amount of emissions involved in producing a gigajoule of coal with the amount involved in producing a gigajoule of gas. (Don’t worry if you don’t know what a gigajoule is – it doesn’t really matter.) Here’s the thing: modern gas power generation technology is a lot more efficient than modern coal generation, so a gigajoule of gas produces a lot more electricity than a gigajoule of coal. The per kWh comparison is the correct one, but Howarth doesn’t do it. This is an unforgivable methodological flaw; correcting for it strongly tilts Howarth’s calculations back toward gas, even if you accept everything else he says.

One last comment: I worry about what this paper says about the peer review process and the way the press treats it. This article was published in a peer-reviewed journal that’s edited by talented academics. It presumably got a couple good reviews, since its time from submission to publication was quite short. These reviewers don’t appear to have been on the ball. Alas, this sort of thing is inevitable in academic publishing. It’s a useful caution, though, against treating peer review as a mark of infallibility, as too many in the climate debate – both media and advocates – have done.

The weak data and unorthodox methodology should make one question its ultimate conclusion, and it doesn’t help that the author is apparently an anti-fracking advocate. The EPA has already called this study an “important piece of information” and it has been reported on without mentioning the critiques in a number of media outlets (and here). Some outlets were better:

Mark D. Whitley, a senior vice president for engineering and technology with Range Resources, a gas drilling company with operations in several regions of the country, said the losses suggested by Mr. Howarth’s study were simply too high.

“These are huge numbers,” he said. “That the industry would let what amounts to trillions of cubic feet of gas get away from us doesn’t make any sense. That’s not the business that we’re in.”

Most business models don’t include plans to allow billions of dollars of your product to escape into the atmosphere.

 

 

Post image for An Assault on Coal Exports

Not content with destroying coal in the United States, there are ongoing assaults on allowing U.S. companies to export coal. It’s one thing to destroy coal in favor of more expensive energy in an advanced economy where consumers have more disposable income to absorb the blow of rising energy costs, but to deny developing countries access to electricity is an absurd form of “liberalism.” See a recent GW.org post on similar plans at the World Bank to discontinue funding coal-fired power plants.

China and other developing countries might be flirting with solar panels and windmills (mostly to sell them to the United States), but these renewables aren’t going to actually power any significant portion of their ever growing demand for energy anytime soon. And remember, despite the fact that you might want to protect the environment, you might not feel that way if you’ve never driven a car or turned on a light switch. As this report notes:

China, on the other hand, has emerged as a leader in developing clean, renewable energy, but its demand for coal is still staggering, and growing, and China is predicted to build 2,200 new coal-fired electric plants by 2030.

The report is full of suspicious economic analysis, like the idea that shutting down coal exports (economic activity) can somehow help our country reach long term prosperity because the funds could be used for investments to focus on diversifying our economy, whatever that means. Ending coal exports would somehow help our economy’s diversification. Note that coal exports would also help lower the trade deficit, which groups like CAP seem worried about.

It’s not completely clear to me that the port being used for exports is being subsidized by any governmental bodies (hopefully its not), but they don’t specifically mention any subsidies, so I suspect its mostly being completed with private sector money. Perhaps the authors think our omniscient government should confiscate those private dollars and pick their own pet project instead.

Finally, we get to the real question:

Though Washington state officials are considering the effects of climate-change-causing emissions stemming from shipping the coal across the western United States, there are no legal requirements to consider the carbon pollution from burning the coal half a world away.

Can we also control the climate policies of other sovereign nations? Liberals have proudly discussed the possibility of a carbon tax on imports from countries that have not adopted emission reductions strategies, but they have yet to publicly propose an export ban or tariff on coal. Perhaps its in the pipeline.

Finally, from a Washington-state based blog:

Certainly not least among our concerns should be the moral decision of whether to feed the growing coal addictions of other countries even as we combat climate change by gradually eliminating large-scale sources of carbon dioxide emissions in the U.S

Breathe easy, Seattle. Coal exports will certainly be helping some of the 1.4 billion people on this earth who don’t have access to any electricity at all.

Post image for More on Energy Department’s Awful Green Bank

Yesterday, I participated on a panel discussion about the Department of Energy’s Loan Guarantee Program for low carbon energy sources. I’ve long been a fierce opponent of the DOE’s green bank—see here, here, here, and here for my take.

In a nutshell, I argue that investment banking is well outside the core competency of Energy Department bureaucrats, so there is no reason to believe that they could start a successful green bank from scratch. Even if they could, political concerns would trump economic reasoning, such that loan authorizations would get funneled to the well-connected, instead of the deserving.

Regarding this last point, consider this recent report by the Center for Public Integrity and ABC News, on the remarkable correlation between the success of DOE Loan Guarantee applications and the amount of money that the applicant raised for Barack Obama’s campaign for the White House.

In addition to the panel, we also organized a coalition letter to the House Appropriations Committee, on the need to excise the DOE’s green bank from the budget. Signatories included CEI, Taxpayers for Common Sense, George Marshall Institute, National Taxpayers Union, and the Nonproliferation Policy Education Center. Click here for a copy of the letter.