June 2011

Post image for California Bunker Fuel Regulations Spur Shift in Shipping Routes

I’ve previously reported (see here and here) on the environmental industry’s movement’s war on bunker fuel, the heavy fuel used by large ships around the world. The modus operandi of the enviros is to pursue and convince regulators, such as the United Nations’ International Maritime Organization (IMO) or California’s Air Resources Board (CARB), to push for a targeted patchwork of prohibitions and/or mandating low-sulfur fuel-switching, enacting stricter speed limits in near-shore shipping lanes, restricting on-ship power generation when in port, and imposing emissions taxes.

A couple of years ago, the U.S. Environmental Protection Agency (EPA) was toying with the idea of calling for strict and extremely costly regulations or a federal ban on bunker fuel -carrying or -using ships within U.S. waters, only to be shouted down by politicians and citizens from states with large maritime sectors. But California, a state not known to back down from adopting stupid environmental regulations, moved forward in the war on bunker fuel and international trade and set its own regulations on fuel use and petroleum conveyance in the maritime industry operating within the state’s waters.

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Post image for More on the Cellulosic Ethanol “Mandate”

We recently posted about the EPA’s decision to reduce the cellulosic ethanol blending requirement from 500 million gallons in 2012 to somewhere between 3.45-12.9 million gallons, which is 0.69- 2.5 percent of the original “mandate.”

Via Greenwire ($ubscription required), we see that refiners are still required to purchase “credits” from EPA indicating that they are complying with the mandate, despite its impossibility:

The proposal fine-tunes blending mandates for 2012 called for by the federal renewable fuel standard, and EPA said yesterday it expects to require a total use of between 3.45 million and 12.9 million gallons of cellulosic biofuels next year. Officials said the final figure could come out to more or less than the 6.6 million gallons required in 2011.

Charles Drevna, president of NPRA, said given that EPA’s own data show the ethanol industry has produced no qualifying fuel in the past year, the requirement for blenders to either use the fuel or pay EPA about $1 per gallon for a credit makes no sense. [click to continue…]

Post image for Energy and Environment News

Energy Policy in California: Turning Gold into Lead
Robert Peltier, Master Resource, 23 June 2011

Reduce Your Carbon Footprint by Recycling Your Past Errors
Willis Eschenbach, WattsUpWithThat, 23 June 2011

NASA Scientist Accused of Using Celeb Status To Enrich Himself
William Lajeunesse, Fox News, 22 June 2011

Global Warming’s Latest Offense: Chair Shortages
James Taylor, Forbes, 22 June 2011

Al Gore Connects Population Control with Climate Change
Los Angeles Times Greenspace Blog, 22 June 2011

Post image for Center for American Progress’s Unfair and Unbalanced Utility MACT Panel

Yesterday morning, the Energy Opportunity program at the Center for American Progress, a leading liberal think tank, held a panel on the Environmental Protection Agency’s proposed “Utility MACT” rule to regulate coal- and oil-fired power plants under Section 112 of the Clean Air Act. This rule, if implemented, would be one of the costliest regulations, ever, and its primary justification is to protect pregnant, subsistence fisherwomen from the deposition onto inland, freshwater bodies of mercury emitted from American power plants. Notably, U.S. power plants contribute 2 percent of total mercury deposition across America, so they are a rather small component of this supposed problem. In future posts, I’ll contend that there are more reasonable methods of protecting the scores (hundreds?) of pregnant women who are also subsistence fishers, other than overhauling the electricity generation industry at a cost of $10 billion annually (EPA’s estimate) to $100 billion annually (industry’s estimate). In this post, I only want to note how extraordinarily unfair and unbalanced was the Center for American Progress’s panel yesterday. Consider the panelists:

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Post image for Does Ethanol Keep Our Gas Cheap?

Under attack from almost everyone these days, the ethanol industry has been digging deep to find ways of convincing America that they really are the best. They’ve been running advertisements everywhere claiming that ethanol (and presumably, federal ethanol policies) have helped to keep the price of gasoline up to $0.89 per gallon cheaper in 2010. They commissioned a report from the Center for Agriculture and Rural Development at Iowa State University. The report itself merely updates similar research from past years, the original study can be found here. The abstract (of the 2010 report):

This report updates the findings in Du and Hayes 2009 by extending the data to December 2010 and concludes that over the sample period from January 2000 to December 2010, the growth in ethanol production reduced wholesale gasoline prices by $0.25 per gallon on average. The Midwest region experienced the biggest impact, with a $0.39/gallon reduction, while the East Coast had the smallest impact at $0.16/gallon. Based on the data of 2010 only, the marginal impacts on gasoline prices are found to be substantially higher given the much higher ethanol production and crude oil prices. The average effect increases to $0.89/gallon and the regional impact ranges from $0.58/gallon in the East Coast to $1.37/gallon in the Midwest. In addition, we report on a related analysis that asks what would happen to US gasoline prices if ethanol production came to an immediate halt. Under a very wide range of parameters, the estimated gasoline price increase would be of historic proportions, ranging from 41% to 92%.

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The House Will Vote To Bring back the Bulb
Henry Payne, The Michigan View, 22 June 2011

Supremes Retreat from Climate Panic
Steve Milloy, The Washington Times, 22 June 2011

Capability, Not Politics, Should Drive DOD Energy Reseach
Jack Spencer, Heritage Web Memo, 22 June 2011

China’s Growing Energy Consumption
Greg Pollowitz, Planet Gore, 22 June 2011

What’s All the Fracking Fuss about?
Larry Bell, Forbes, 21 June 2011

Post image for That Footnote in Yesterday’s Global Warming Ruling

Yesterday’s Supreme Court ruling on carbon dioxide provided some welcome relief to those concerned that the Court might say something, deliberately or otherwise, that would buttress the claims of global warming alarmists.  The Court said no such thing.  In fact, it seemed to step back from the suggestions in its 2007 Massachusetts v. EPA ruling that the scientific debate over anthropogenic warming had largely been settled.  Yesterday’s ruling does mention hurricanes and heat-related deaths and melting ice-caps, but only in characterizing EPA’s view of global warming, not the Court’s.  And the Court quickly distances itself from EPA’s views with an interesting footnote:

“For views opposing EPA’s, see, e.g., Dawidoff, The Civil Heretic, N. Y. Times Magazine 32 (March 29, 2009). The Court, we caution, endorses no particular view of the complicated issues related to carbon dioxide emissions and climate change.”

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Post image for Cellulosic Ethanol “Mandate” Downgraded Again

Today the EPA announced its proposed 2012 Renewable Fuel Standard requirements:

The Energy Independence and Security Act of 2007 (EISA) established the annual renewable fuel volume targets, which steadily increase to an overall level of 36 billion gallons in 2022. To achieve these volumes, EPA calculates a percentage-based standard for the following year. Based on the standard, each refiner, importer, and non-oxygenate blender of gasoline or diesel determines the minimum volume of renewable fuel that it must ensure is used in its transportation fuel.

The proposed 2012 overall volumes and standards are:

Biomass-based diesel (1.0 billion gallons; 0.91 percent)
Advanced biofuels (2.0 billion gallons; 1.21 percent)
Cellulosic biofuels (3.45 – 12.9 million gallons; 0.002 – 0.010 percent)
Total renewable fuels (15.2 billion gallons; 9.21 percent) [click to continue…]

Post image for Rent-Seekers and Environmentalists Lied; Coloradans Pay the Price

In mid-April, I testified before a Colorado Senate Committee that was considering whether to approve a Regional Haze State Implementation Plan (“RHSIP”) to improve visibility at National Parks. The purpose of my testimony was to inform Committee Members that the RHSIP before them violated Colorado’s statutory prohibition on pollution controls pursuant to the Clean Air Act that are more stringent than what the federal government requires. That is, I told them that the RHSIP was illegal. I explained to the Senators that correcting the illegal components of the RHSIP would save Colorado ratepayers more than $120 million. (For background on the RHSIP, click here. Video of my testimony is available here.)

The Committee heard an entirely different story from lawyers representing natural gas producers,  Xcel Energy, and environmentalist ex-Governor Bill Ritter. These lawyers’ clients were staunch proponents of the RHSIP, because it included a strategy to switch fuels from coal to natural gas for almost 1,000 megawatts of electricity. For the gas and utility sector, billions of dollars were at stake; for ex-Governor Ritter, the fuel switching plan enhanced his national profile among environmentalists. These special interest lawyers refused to address my allegations of illegality (because I was right). Instead, they told the Committee that unless the General Assembly approved the RHSIP immediately and without alteration, the federal government would swoop in and usurp Colorado’s air quality planning authority.

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Court Rejects Judicially Mandated Cap-and-Trade
Ken Klukowski, Washington Examiner, 21 June 2011

The Great Resource Debate
Robert Bradley Jr., Master Resource, 21 June 2011

With Climate Change, Life Imitates Art
Ken Green, The American, 20 June 2011

The IPCC Declares Greenpeace in Our Time
Christopher Booker, Daily Telegraph, 19 June 2011

Ethanol: Congress Sacrifices a Sacred Cow
Eleanor Clift, Daily Beast, 17 June 2011