William Yeatman

Post image for Massachusetts in Danger of Being Markeyed…

Markey [mar-kee] intransitive verb, mar-keyed, mar-keying

  1. To be sold a false bill of goods

Origin:  1976-present; after Rep. Ed Markey (D-Massachusetts), ironic rhetorician

On a routine Google News search, I encountered the headline: “Mass. Bill Aims to Ease High Cost of Electricity.” At first glance, this seemed like welcome news. After all, electricity rates in Massachusetts are among the highest in the country.

According to news accounts, however, the method by which State Senate President Therese Murray’s legislation would lower electricity bills is…to make electricity more expensive! Specifically, the legislation would double the amount of costly, intermittent “green” energy that must be provided by utilities serving the State.

I’ve no idea how Sen. Murray will rationalize the discrepancy between her expressed intent (lowering electricity costs) and her preferred means to this end (raising electricity costs). I’ll update this blog when I find out.

Post image for Good Guys Win Big Battle in EPA’s War on Appalachian Coal Production

Last week, property-rights advocates were ecstatic with the Supreme Court’s ruling in Sackett v EPA that citizens subject to EPA Clean Water Act “compliance orders” can have their day in court. Before, EPA had interpreted its power in a Kafkaesque fashion, whereby the Agency could levy fines for alleged Clean Water Act violations without any recourse for the accused. (My colleague Hans Bader wrote an excellent blog on the case here).

Because that high profile case captured all the attention, it was little noticed last Friday when property rights advocates won a similarly consequential victory. That afternoon, United States District Court for the District of Columbia Judge Amy Berman Jackson ruled that EPA overstepped its authority when it vetoed a Clean Water Act permit that had already been issued to the Mingo Logan Coal Company, a subsidiary of Arch Coal, for a mountaintop removal mining project in Logan County, West Virginia. The profound matter at hand was whether EPA could revoke a Clean Water Act permit, after it became the possession of the applicant. Had EPA carried the day, permit (i.e., property) owners nationwide would be subject to the cessation of business, depending on EPA’s whims.

Here’s the background: The Clean Water Act prohibits the discharge of pollution into navigable waters of the United States, unless the polluter has a permit. There are two kinds of permits: (1) Section 402 permits for “point-sources,” which are basically any singular discharge outlet for pollutants (like a pipe); and (2) Section 404 permits for “dredge and fill” activities, like mountaintop removal mining*. The former permits are issued by States after their permitting regimes are approved by EPA. The latter permits are issued by the U.S. Army Corps of Engineers, in accordance with guidance established jointly with EPA. Importantly, the Clean Water Act affords EPA a veto over the U.S. Army Corps of Engineers decision to permit.

The case that was decided last Friday pertained to a Section 404 permit that was issued in late 2009 by the U.S. Army Corps of Engineers to Mingo Logan Coal Company for the Spruce No 1 Mine in Logan County, West Virginia. EPA retroactively vetoed this permit on January 2011. Mingo Logan Coal Company then sued in the U.S. District Court for the District of Columbia. The coal company argued that the Clean Water Act only authorizes EPA to veto a pending Section 404 permit (i.e., while the Army Corps deliberates). EPA countered that the veto power was everlasting. Judge Jackson agreed with the petitioners. She wrote,

“Based upon a consideration of the provision in question, the language and structure of the entire statutory scheme, and the legislative history, the Court concludes that the statute does not give EPA the power to render a permit invalid once it has been issued by the Corps. EPA’s view of its authority is inconsistent with clear provisions in the statute, which deem compliance with a permit to be compliance with the Act, and with the legislative history of section 404.”

Notably, the Court did not rule on EPA’s scientific rationale for the permit veto. If Judge Jackson had ruled that EPA has the authority to retroactively veto a Section 404 permit, next she would have considered whether the veto itself was reasonable. In a 2011 study, I argued at length that the “science” behind EPA’s veto was unacceptably shoddy. In a nutshell, EPA claims that the Spruce No. 1 Mine would significantly harm wildlife up and down the food chain—including fish, salamanders, and birds–while in fact the Agency only presents evidence of harm to a single order of insects (Ephemeroptera, a.k.a. the mayfly). Moreover, the scientific literature suggests that overall insect biodiversity isn’t adversely impacted by surface coal mining in Appalachia. That is, hardier species readily thrive in the wake of the mayfly’s decline.

Judge Jackson’s ruling will no doubt come as a relief to the people of West Virginia. In May 2010, I attended EPA’s public hearing on its proposed veto at the civic center in downtown Charleston. The floor was packed with hundreds of people. Conservatively, I’d estimate that the crowd was 99 percent outraged by EPA’s “jobs for bugs” permit veto. I wrote about that experience here.

This is the second consecutive victory for the Appalachian coal industry over EPA in the U.S. District Court for the District of Columbia. Last October, Judge Reggie Walton ruled that EPA had overstepped its authority when it implemented an extra-layer of oversight over Clean Water Act permitting deliberations by States and the U.S. Army Corps of Engineers for applications from the coal industry in Appalachia.

*Pursuant to the 1977 Surface Mining and Control Act, mountaintop removal mining practitioners must recreate the approximate original contour of the mining area. To put it another way, they have to replace the mountaintop as best they can. However, it is an engineering impossibility to recreate the mountaintop perfectly. There is always leftover dirt and spoil. This “overburden” is deposited at the base of the mountain, becoming a “valley fill.” Invariably, valley fills bury intermittent streams that form in valleys whenever it rains. As such, a valley fill requires a Section 404 dredge and fill permit (because it “fills” intermittent streams).

Here’s a headline from today’s Energy & Environment News PM (subscription required):

…and here’s a Wall Street Journal headline from 1978:


Today, solar power accounts for a small fraction of one percent of U.S. energy needs.

Post image for Dim Duo Done in by Dimock Data [updated 6:46PM with comment from Pennsylvania DEP]

Last Thursday, the Environmental Protection Agency conceded that preliminary lab results from samples taken from wells in Dimock, Pennsylvania indicate that drinking water there has not been contaminating by hydraulic fracturing drilling.

The news is embarrassing to both agit-prop film director Josh Fox and EPA.

For the fabulist Fox, the Dimock lab results are yet another official rebuke of his terrible, fact-free, Oscar-nominated documentary Gasland. Already, Colorado state officials debunked Fox’s false claims that groundwater in Colorado had been poisoned by hydraulic fracturing. Now, a federal agency is suggesting that Fox again misidentified the cause of one of his fracking cause-célèbres—he has long accused the gas industry of contaminating well water in Dimock with toxic chemicals.

For EPA, the Dimock results are egg on the face. That’s because the Agency had decided to test the Dimock water over strong* objections from Pennsylvania officials. In early January, Pennsylvania Department of Environmental Protection Secretary Michael Krancer wrote a letter asking EPA not to second-guess the State’s handling of allegations that gas drilling had contaminated well water in Dimock. Secretary Krancer warned EPA that it would be acting despite the Agency’s possessing only “rudimentary” knowledge of the situation. In a critical response to the letter, EPA Administrator Lisa Jackson insinuated that Pennsylvania was failing to ensure the protection of its own citizens. EPA’s preliminary results suggest that Pennsylvania is capable of ensuring safe, responsible drilling, without the Agency’s oversight.

*[Updated 6:46 PM--I received a nice email from the Pennsylvania Department of Environmental Protection informing me that the situation is more complex than I had thought. While the DEP does feel EPA has overstepped its bounds, the Department is very much willing to work with EPA to ensure that Dimock water is safe to drink. I've crossed out the word "strong" in the second sentence of the paragraph above because it is too strong a modifier: They disagree, but it's not combative. Here's the official DEP press statement, which demonstrates the nuance of the matter.

DEP just received EPA’s voluminous package today and we are reviewing it. We will take more time to fully evaluate all the information and data that EPA has presented, which it says is behind the action it proposes taking and the requests it is making. Our review, so far, tells us that EPA does not seem to have presented any new data here. More than a year ago, DEP’s enforcement action addressed this issue and ensured funds were set aside to resolve the water quality issues for these homeowners. Funds were set aside for each homeowner to have a water treatment system installed. The system would address parameters EPA references here, including arsenic and manganese, and would provide water that meets and exceeds safe drinking water standards. We agree that additional sampling should be conducted in Dimock and we are actively working with EPA to conduct additional sampling at the affected homes and at 57 other residences.]

[click to continue…]

The title above was my boss’s (CEI President Fred Smith’s) funny reaction to the email solicitation below, for a conference call held by the biofuels lobby, on how the biofuels industry can help meet the Commander-in-Chief’s goal of powering the U.S. military with 25% renewables by 2025.

It doesn’t, according to this excellent blog by Heritage’s David Kreutzer, from which the graph below is excerpted.

 

Post image for Coalition Letter to the Senate: Reject Subsidies to Big Wind, T. Boone Pickens!

March 13, 2012

Dear Senator:

The Senate is scheduled to finish voting on amendments to the highway bill, S. 1813, on Tuesday. We are writing to urge you to:

  • Vote Yes on amendment #1589 (DeMint) to end all special-interest tax preferences for renewable energy, conventional energy, and alternative fuel vehicles;
  • Vote No on amendment #1812 (Stabenow) to extend tax credits for wind, solar power, a variety of biofuels, coal, oil and gas, energy efficient buildings and appliances, and plug-in electric vehicles; and,
  • Vote No on amendment #1782 (Burr/Menendez) to create massive new tax preferences for natural gas vehicles, fueling stations, and motor fuel.

The American people are fed up with corporate welfare. They view the Solyndra debacle as an object lesson in the folly of government trying to pick energy-market winners. Above all, they want Congress to put the nation’s fiscal house in order.

How you vote on the aforementioned amendments will determine whether or not you are serious about curbing political influence in energy markets, ending crony capitalism, and halting the nation’s slide towards bankruptcy.

The wind energy production tax credit (PTC) is a wealth transfer from States that do not establish renewable electricity mandates to States that do. The PTC props up these Soviet-style production quotas by masking their full cost from ratepayers. Congress should pull the plug on this deception: Vote No on amendment #1812, and let the PTC expire.

Amendment #1782, which proposes tax credits up to $64,000 for purchases of natural gas-fueled 18-wheelers, could add billions of dollars to the national debt. With natural gas industry profits soaring and prices at historic lows, there is no justification for Congress to rig the market in favor of natural gas producers, purchasers of natural gas vehicles, or investors in natural gas infrastructure.

The best energy policy is one under which consumers decide winners and losers and politicians can’t stick taxpayers with the bill when an energy company fails. The DeMint amendment (#1589) would eliminate tax favoritism in the energy sector. Equally important, it would not raise the overall tax burden, because it would use the savings from rescinded tax credits to lower general tax rates.

Sincerely,

Freedom Action
Americans for Tax Reform
Council for Citizens Against Government Waste
Club for Growth
Taxpayers for Common Sense Action
60 Plus Association
Americans for Prosperity
American Energy Alliance
Competitive Enterprise Institute
National Center for Public Policy Research
Energy Integrity Project (Idaho)
Citizen Power Alliance (New York)

Post image for What’s Wrong with This Picture?

The front page of this morning’s RealClearEnergy, a screenshot of which sits above, features an illuminating juxtaposition.

On the left column, there are six news stories about how the natural gas industry and other engines of capital investment are putting their own money into expanding the market for gas into the transportation sector. Thanks to the technolution in oil and gas drilling known as hydraulic fracturing, or fraking, gas production is booming, and prices are down. At the same time, geopolitical instability is pushing the price of gasoline to $5 a gallon. The upshot is that gas now makes for an attractive motor fuel. To that end, the industry is investing in infrastructure (natural gas powered engines for trucks and fueling stations), in order to grow and thereby seize market share from the oil industry. Whether the gas industry succeeds or fails in its competition with the oil industry, the consumer can only win.

On the right column, the first story is an oped by T. Boone Pickens, in favor of H.R. 1380, the New Alternative Transportation to Give Americans Solutions Act (a.k.a., the NAT GAS Act, a.k.a.,  the “T. Boone Pickens Earmark Bill,” a.k.a., the “Pickens-Your-Pocket Boondoggle Bill,” a.k.a. the “Billionaire’s Bailout,” a.k.a. the “Pickens Payout Plan”). As its many nicknames would suggest, this legislation was written by billionaire T. Boone Pickens, in order to makes himself even richer. Pickens purveys in natural gas, and the legislation would have taxpayers throw money at infrastructure (natural gas powered engines for trucks and fueling stations), in order to facilitate the gas industry’s growth into the transportation sector, at the expense of the oil industry. Pickens proposes these subsidies (to himself), DESPITE THE FACT THAT THE INDUSTRY IS ALREADY DOING SO WITH ITS OWN MONEY!!!!! Alas, Pickens already has won over the President. If he succeeds in per$uading enough Members of Congress to get his Billionaire’s Bailout passed, then the taxpayer will suffer an egregious loss.

Post image for Green Stimulus Spending: A Litany of Failure

An ongoing theme of this blog is that green energy spending in the Stimulus was a gigantic waste of money. This is for one of two reasons: Invariably, either (1) a Members of Congress tried to influence Stimulus spending as a constituent service or (2) the Obama administration steered investments to friends and campaign contribution bundlers. Whether it’s parochial politics or crony capitalism, the results are the same—bad bets and taxpayer losses.

It takes a while to spend scores of billions of dollars, so the returns of the Stimulus are only now coming in…And they are terrible for proponents of venture socialism. Nary has a week gone by without another green Stimulus beneficiary hitting the skids. In previous posts, I’ve addressed these failures in real time, as they’ve happened. I’ve compared this depressing litany of bankruptcies, layoffs, and production cutbacks to a green albatross burdening President Barack Obama‘s 2012 electoral prospects.

Last week, for example, we learned that engineers at Tesla Motors, which makes Brad Pitt’s favorite green car and also received Stimulus largesse, overlooked a fatal design flaw that easily renders the engine a “brick,” and therefore useless. This is what happens when the Energy Department operates an investment bank.

Yesterday, another government-picked “winner” announced it is “losing.” Reports Paul Chesser of the National Legal & Policy Center,

Yet another solar company that received loan guarantees from the Department of Energy has dismissed factory workers, lopping off 70 percent of its U.S. employees. Loveland, Colo.-based Abound Solar announced Tuesday it would lay off 280 workers at its production plant near Longmont, leaving 120 still employed. The start-up (2009) company attributed the cutbacks to the need for upgrades at the plant to manufacture more efficient solar panels, with plans to restore production levels and rehire most employees within six to nine months.

Mr. President, are you still sure that you want to “double down” on green energy?

Post image for Reps. Waxman and Markey Make Nonsensical Cap-and-Trade Pitch in WaPo

In Friday’s Washington Post, Reps. Henry Waxman (D-Beverly Hills) and Ed Markey (D-Massachusetts) pitched cap-and-trade as a means to balance the budget. According to the Congressmen,

“The debate over how to reduce our nation’s debt has been presented as a dilemma between cutting spending on programs Americans cherish or raising taxes on American job creators. But there is a better way: We could slash our debt by making power plants and oil refineries pay for the carbon emissions that endanger our health and environment.”

This statement is absurd. By design, a cap-and-trade policy makes conventional energy more expensive. It is, therefore, functionally equivalent to a tax on a commodity—energy—that is fundamental to every act of economic production. It’s an economy wide tax. In effect, Reps. Waxman and Markey are claiming that a broad consumption tax (cap-and-trade) avoids “the difficult dilemma” of raising taxes, which doesn’t make any sense. Fortunately, these two Congressmen are in the minority party in the House, so their policy idea is a non-starter.