December 2011

Post image for Cooler Heads Digest 16 December 2011

In the News

Climategate Bombshell
Maxim Lott, Fox News, 16 December 2011

Scientific Communication: Preach or Engage?
Chip Knappenberger, Master Resource, 16 December 2011

Keystone Blue Collar Blues
Lawrence Kudlow, Real Clear Politics, 16 December 2011

Obama’s Justice Department Joins Britain’s Climategate Leaker Manhunt
Chris Horner, Washington Examiner, 15 December 2011

Nipping Jobs in the Bud
Brian McGraw, American Spectator, 15 December 2011

Time to Tell the Green Energy Industry to Grow Up
Jackie Moreau, GlobalWarming.org, 15 December 2011

Obama’s Transparency War Targets Climate Skeptics
David Bier, Open Market, 15 December 2011

Obama’s Regulatory Burden
Rep. Fred Upton, National Review, 15 December 2011

EPA’s Bogus Wyoming Fracking Report
Robert Bryce, New York Post, 14 December 2011

Big Picture Items
World Climate Report, 14 December 2011

New You Can Use

Another Alarmist Myth Debunked

According to an IPS interview with Richard Armstrong, a geographer at Colorado University’s National Snow and Ice Centre and the lead author of the first comprehensive study of the glaciers of High Asia, 96 percent of the water that flows down the mountains of Nepal into nine local river basins comes from snow and rain, and only 4 percent from summer glacier melt. Of that 4 percent, says Armstrong, only a minuscule proportion comes from the melting away of the end points of the glaciers due to global warming. The study debunks a long-held talking point of global warming alarmists, that climate change could incite a resource war between India and Pakistan by melting away Himalayan glaciers.

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Post image for Time to Tell the Alternative Energy Industry to Grow Up

The Senate Finance Committee gathered this week to discuss whether the time has finally come to cut the umbilical cord of tax incentives from the mollycoddled alternative energy industry.  This may sound childish, but many of the witnesses pushing for an extension of expiring tax incentives for renewable energy characterized their allegedly up-and-coming market in such terms.  Venture capitalist Will Coleman for Mohr Davidow Ventures maintained that despite alternative energy’s “rapid growth,” such as in wind, “it is still in its infancy.”  Paul Soanes, President and CEO of Renewable Biofuels, testified: “The industry is like a child that needs some nurturing.”  The question then becomes: will a renewed tax extension fund a future pride-and-joy of profit or a prodigal embarrassment (I.e. Solyndra).

Multiple testimonies that lauded the progress of alternative industries like wind, solar, and ethanol as job creators and strong global competitors were belied by an overwhelming sense of immediacy.  Coleman insisted that without continued subsidies, “We may in fact cripple America’s ability to compete.” Soanes urged, “Congress needs to act now to extend the PTC (production tax credit).”  Martha Wyrsch, President of Vestas-American Wind Technoloy warned, “If the PTC is not extended immediately, we will have to make tough choices…Our future is in jeopardy.”

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Yesterday, CEI’s Chris Horner testified before the Ohio House of Representatives Committee on Public Utilities, on legislation to modify the state’s existing green energy production quota by expanding the number of electricity generators that qualify as clean energy.

Below is his presentation and written testimony.

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Government-enforced environmental protection is often based on the notion that the environment is subject to a ‘tragedy of the commons,’ a famous concept in economics whereby goods that “cannot be privately owned” are abused because no one individual has an incentive to conserve. Therefore, conservation must be forced by a state. Matt Ridley in his brilliant book The Origins of Virtue provides a useful correction to this traditional account.

The Origins of Virtue was released in 1996

Scott Gordon, an economist concerned with fisheries, in 1954 wrote, “Everybody’s property is nobody’s property. Wealth that is free for all is valued by none because he who is foolhardy enough to wait for its proper time of use will only find that it has been taken by another. The blade of grass that the manorial cowherd leaves behind is valueless to him, for tomorrow it may be eaten by another animal; the oil left under the earth is valueless to the driller, for another may legally take it; the fish in the sea are valueless to the fisherman, because there is no assurance that they will be there for him tomorrow if they are left behind today.’ ….

An authoritarian biologist named Garret Hardin rediscovered this idea in preparing a lecture on population growth, and named it the ‘tragedy of the commons,’ which term has stuck. Hardin’s aim was not to try to solve the problem but to argue for the necessity of restrictions on the right to breed. ‘Coercion,’ he wrote, ‘is a dirty word to most liberals now but it need not forever be so.’

To make his point, Hardin chose the example of medieval common land, which was widely believed to have been ruined by overgrazing, in comparison to enclosed land. “The rational herdsman concludes that the only sensible course for him to pursue is to add another animal to his herd. And another; and another… But this is the conclusion reached by each and every rational herdsman sharing a commons. Therein lies the tragedy. Ruin is the destination toward which all men rush, each pursuing his own best interest in a society that believes in the freedom of the commons. Freedom in a commons brings ruin to all.”

In the abstract, this was true: free-for-alls are disastrously vulnerable to free-riding. The problem is, Hardin was wrong about grazing commons. Medieval commons were not disastrous free-for-alls. They were carefully regulated communal property, just like the lobster fisheries of Maine. True, there were relatively few written rights and not many obvious rules about who could graze them or cut coppice-wood on them. To an outsider, they looked like a free-for-all. But try adding your cattle to the common herd and you would soon discover the unwritten rules.

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Post image for California Air Board Plans to Eliminate Gasoline Vehicle Sales — Deja Vu All Over Again

The California Air Resources Board (CARB) proposes to amend its Zero Emission Vehicles (ZEV) program to help the state meet its goal of reducing greenhouse gas emissions 80% below 1990 levels by 2050. Under the proposal, ZEVs — plug-in hybrids, battery-electric vehicles, and fuel cell vehicles — would account for 15.4% of all new cars sold in California by 2025 and nearly 100% by 2040. By 2050, 87% of all vehicles on the road will be ZEVs, CARB estimates.

It’s déjà vu all over again.  [click to continue…]

In October this year, CEI’s Jackie Moreau blogged about victims of EPA’s wetland regulatory regime. “The once lovely face of Lady Liberty,” she wrote, “now wears the quintessential looks of the mean kid on the playground: class bully.” In this excerpt from Mugged by the State: Outrageous Government Assaults on Ordinary People and their Property, Randall Fitzgerald reinforces her point with some more outrageous examples of government environmentalism out-of-control.

Mugged by the State was published in 2003

Most people find the idea of healthy ecosystems and a clean environment to be desirable social goals. After all, the pollution of our collective air, water, or soil resources can potentially affect both our personal health and our individual property values. The broader social question is how do we measure and define environmental harm, and what benchmarks do we use to certify the point at which damage has occurred that adversely affects others. Examples from the regulation of private lands, public lands, endangered species, wetlands, and the record of the Environmental Protection Agency enforcement tactics illustrate how inflexible or misguided policies, relying on warped incentives and enforced by overzealous regulators, can often do more harm than good….

What if a law existed requiring every American who possesses a piece of Revolutionary War furniture to preserve the piece in perpetuity? They cannot actually own it, but they must protect it and care for it, at their own expense, under the supervision of a federal regulatory agency. If they fail to protect and preserve the furniture to the government’s satisfaction, they can be heavily fined and sent to prison. This is the sort of situation confronting who find part of the wetlands, or a plant or animal belonging to an endangered species, anywhere on their land. Under wetlands protection provisions of the Clean Water Act, landowners must sacrifice any use of their property that might impact wetlands or rare species and their habitat. Failing to do so subjects the owner to criminal penalties.

States have enacted similar regulations modeled after the federal laws. Homebuilder Lin Drake got bludgeoned in 1996 by both a Utah State wildlife agency and the U.S. Fish and Wildlife Service when he bought land near Enoch, Utah, for a housing subdivision. Employees from these two agencies found no habitat or holes made by prairie dogs on Drake’s land, but a federal wildlife employee claimed to have seen two prairie dogs scurrying away too quickly for their presence on the land to be documented by a camera. With only the testimony of this one employee about a single instance of prairie dogs being spotted, Drake was charged with violating the U.S. Endangered Species Act by “harming” prairie dogs and their habitat with his home building preparations. He was fined $15,000 in 1998.

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Post image for North America’s Energy Future Is Bright (If Government Gets Out of the Way) — Institute for Energy Research

You have probably heard or read the talking point many times: The United States consumes nearly one-quarter of the world’s oil but we have only 2-3% of the world’s proved reserves (here, here, here), hence we cannot drill our way out of high gasoline prices (here, here, here), and should instead adopt policies (cap-and-trade, biofuel quota, fuel-efficiency mandates) to accelerate America’s transition to a low-carbon future.

A new report by the Institute for Energy Research (IER), North American Energy Inventory (December 2011), demolishes the gloomy assessment underpinning demands for centralized planning of America’s energy future. [click to continue…]

The Billionaire’s Bailout

by David Bier on December 13, 2011

in Blog, Features

Post image for The Billionaire’s Bailout

Billionaire natural gas tycoon T. Boone Pickens says he wants an energy plan that will benefit all Americans. After Senators Harry Reid (D-NV) and Robert Menendez (D-NJ) introduced the NATGAS Act, Pickens praised the effort. “On behalf of the American people,” he said, “I ask the Senate to do what is unquestionably in America’s best interest: seize this unique and powerful opportunity and pass this bill.” While NATGAS is not unquestionably in America’s best interest, it’s definitely in Pickens’s interest.

T. Bone Pickens is major shareholder in Clean Energy Fuels—a natural gas company—that stands to reap a windfall from the bill. The NATGAS Act “would allow consumers purchasing natural gas vehicles or investors developing natural gas refueling stations to claim between $5 billion and $9 billion in federal tax credits over the next five years.” Pickens’ Clean Energy Fuels is counting on the bill’s passage. According to their SEC filing, “Our business plan and the ability of our business to successfully grow depends in part on the extension of the federal fuel excise tax credit for natural gas vehicle fuel, the reinstatement and extension of the federal income tax credit for the purchase of natural gas vehicles and the passage of legislation providing for additional incentives for the sale and use of natural gas vehicles.”

Pickens derides the “special interests that only care about themselves [who] will attempt to create false arguments and false choices to stop this legislation.” Yet this portrayal to a word describes Pickens himself. As the Washington Examiner reported: “Pickens owns options to buy 15 million shares of Clean Energy Fuels at $10 per share…. The NATGAS Act might drive Clean Energy shares to at least $17. Pickens, in that case, could exercise his 15 million options at $10 per share, and make more than $100 million risk-free on the options (plus another nine figures on the shares he already owns outright).

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Post image for WSJ Editorializes Against Cellulosic Ethanol

The Wall Street Journal ran an editorial commenting on the cellulosic ethanol mandate, which CEI has written extensively about in the past. They write:

Most important, the Nancy Pelosi Congress passed and Mr. Bush signed a law imposing mandates on oil companies to blend cellulosic fuel into conventional gasoline. This guaranteed producers a market. In 2010 the mandate was 100 million barrels, rising to 250 million in 2011 and 500 million in 2012. By the end of this decade the requirements leap to 10.5 billion gallons a year.

When these mandates were established, no companies produced commercially viable cellulosic fuel. But the dream was: If you mandate and subsidize it, someone will build it.

Guess what? Nobody has. Despite the taxpayer enticements, this year cellulosic fuel production won’t be 250 million or even 25 million gallons. Last year the Environmental Protection Agency, which has the authority to revise the mandates, quietly reduced the 2011 requirement by 243.4 million gallons to a mere 6.6 million. Some critics suggest that even much of that 6.6 million isn’t true cellulosic fuel. [click to continue…]

Yesterday’s excerpt from Energy & Climate Wars showed why increasing energy consumption in poor nations is essential for any quality of life improvements. In today’s post from Clearing the Air: The Real Story of the War on Air Pollution, Indur Goklany argues that the United States’ economic gains improved not only their wealth, but also their environment, and primarily without government intervention.

Clearing the Air was published in 1999

The real engines for progress on the urban smoke problem in the United States as well as in England were economics and technological change—forces that began in the late 19thcentury and have continued, for one reason or another, to the present day. New, cleaner energy sources such as natural gas, oil, and electricity became increasingly available as substitutes for coal and wood in homes, businesses, and industries. Urbanization, while responsible for many environmental woes, accelerated the process of substitution because higher population densities reduced access to wood and increased cost-effectiveness and economics of distribution systems for natural gas and electricity.

New technologies entered the marketplace that increased the efficiency of all types of combustion equipment, reducing the amount of soot produced and fuel burned for a given amount of usable energy. Those technologies included more efficient and cleaner furnaces and boilers for homes, businesses, industries, and power plants. In some places, underground and street railroads powered by steam were electrified; in others, electrification replaced horse-powered street cars, reducing another, but no less real, form of pollution. The automobile, which would later be viewed as an environmental villain, was still a relatively little-used luxury; in 1910 there were two automobile registrations for every 100 households. In fact, the use of motor vehicles in urban areas served as environmental purpose by reducing the horse population and associated wastes, as did the electrification of street railways.

The realization that smoke signified unburnt fuel led industry, railroads, and even households to make efforts to reduce it. It was thought to be not only good economics but also good citizenship. That notion was clearly incorporated in the Ohio statute, which allowed municipal authorities to “compel the consumption of smoke.” In time, even the Great War would be pressed into service against this foe; as the Pittsburgh Bureau of Smoke Regulation exhorted, “it must never be forgotten that loss of black smoke means loss of heat and that every unit of heat thrown away is so much aid given to the enemy.” On the other hand, the Bureau of Mines, part of the U.S. Department of Interior, suspended  its smoke abatement “campaign” during the war years. At the other extreme in Milwaukee, the war was used as justification to go, literally, full steam ahead; as a result, “smoky” days increased from 47 in 1916 to 212 in 1918.

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