William Yeatman

Over the weekend, Atlantic/MSNBC pundit Ronald Brownstein wrote an atrocious column on energy policy for National Journal. It was so bad that he usurped Thomas Friedman at the top of my shit list for awful commentary on energy.

In instances such as Brownstein’s A Mayday Manifesto for Clean Energy, wherein every sentence is either dross or wrong, there is only one way to set the record straight: Brownstein must be Fisked*.

* Fisk [fisk]

an Internet argument tactic involving a reprinting of an article or blog post, interlarded with rebuttals and refutations, often intended to show the original is a sandpile of flawed facts, unfounded assertions, and logical fallacies. Named for English journalist Robert Fisk (b.1946), Middle East correspondent for the “Independent,” whose writing often criticizes America and Israel and is somewhat noted for looseness with details. Related: Fisked ; fisking .

Online Etymology Dictionary, © 2010 Douglas Harper

Mr. Brownstein is Fisked in the footnotes to each paragraph of his piece.

Ronald Brownstein, A Mayday Manifesto for Clean Energy
National Journal, 12 May 2010

The horrific oil spill staining the Gulf of Mexico is an especially grim monument to America’s failure to forge a sustainable energy strategy for the 21st century1.

1 By the same token, hospitals and schools are especially cheerful monuments to America’s conventional energy strategy of the 19th and 20th century. Yes, the Gulf spill is horrific, but so is a life of immobility. Let us remember, oil is good.

But it is not the only one.

Another telling marker came in a jarring juxtaposition this week. On June 10, a group of technology-focused business leaders — including Microsoft co-founder Bill Gates, prominent Silicon Valley venture capitalist John Doerr1, and the current or former chief executives of General Electric2, DuPont3, Lockheed Martin, and Xerox — issued a mayday manifesto urging a massive public-private effort to accelerate research into clean-energy innovations. Without such a commitment, they warned, the United States will remain vulnerable to energy price shocks4; continue to “enrich hostile regimes” that supply much of the United States’ oil5; and cede to other nations dominance of “vast new markets for clean-energy technologies6.” At precisely the moment these executives were scheduled to unveil their American Energy Innovation Council report, the Senate was to begin debating a resolution from Sen. Lisa Murkowski, R-Alaska, to block the Environmental Protection Agency’s plans to regulate the carbon dioxide emissions linked to global climate change.

1 According to USA Today, Doerr’s firm placed “big bets” on green technology, so it’s not terribly shocking that he would endorse public policies that force consumers to use green energy.
2GE is a world leader in the manufacture of green energy technology, and spends millions of dollars every year lobbying for government policies to force consumers to use green energy.
3Due to business as usual decisions on manufacturing processes, DuPont stands to make hundreds of millions of dollars in “early action” carbon credits under a cap-and-trade energy rationing system.
4Green energy is more expensive than conventional energy! By forcing consumers to use expensive energy, government imposes a green energy price shock.
5I hate this jingoistic blather, but if Brownstein wants to play this game, then the obvious solution to “energy dependence” is “drill, baby, drill.
6Of all the pseudo-facts proffered by green energy advocates, the idea that we are losing a global, mercantilist race for green energy supremacy is the stupidest. There is only one source of demand for green energy technologies–first world governments–and inefficient, statist markets are never the subject of global great games.

However the Senate vote turned out (after this column went to press)1, the disapproval resolution has virtually no chance of becoming law because it is unlikely to pass the House2 and would be vetoed by President Obama if it ever reached him. But the substantial support that Murkowski’s proposal attracted highlights the political obstacles looming in front of any policy that aims to seriously advance alternatives to the carbon-intensive fossil fuels that now dominate the United States’ energy mix. Her resolution collided with the Innovation Council report like a Hummer rear-ending a hybrid.

1The resolution failed, 47 to 53, with 6 Democrats joining the entire Senate Republican Caucus in support.
2Not true; a companion disapproval resolution offered in the House by powerful Reps. Colin Peterson (MN) and Ike Skelton (MO) already has been cosponsored by 23 other Democratic Representatives. If the Senate had passed the Murkowski Resolution, all the tea leaves point (Blue Dog support, an upcoming election year, the need for many Reps. To atone for last summer’s “aye” vote on cap-and-tax) to a close House vote.

It’s reasonable to argue that Congress, not EPA, should decide how to regulate carbon1. But most of those senators who endorsed Murkowski’s resolution also oppose the most plausible remaining vehicle for legislating carbon limits: the comprehensive energy plan that Sens. John Kerry, D-Mass., and Joe Lieberman, ID-Conn., recently released2. Together, those twin positions effectively amount to a vote for the energy status quo in which the United States moves only modestly to unshackle itself from oil, coal, and other fossil fuels.

1 Yes, it is. After the Supreme Court ruled in Massachusetts v EPA (2007) that greenhouse gases could be regulated under the Clean Air Act, Michigan Rep. John Dingell, who authored the Act, said that, “This [regulating greenhouse gases] is not what was intended by the Congress.” Moreover, the Congress considered but ultimately removed emissions requirements from a 1990 Clean Air Act update. Despite the absence of a Congressional mandate, Obama’s EPA is pressing ahead with greenhouse gas regulations. For many Senators-including 6 Democrats-this is an unacceptable power grab by the executive branch.
2Doesn’t this stand to reason? Cap-and-trade repeatedly has failed to pass through the Congress-why would legislators vote down a policy and then stand pat while unelected bureaucrats enact that policy?

The Innovation Council proposes a more ambitious course. (The Bipartisan Policy Center, the centrist think tank where my wife works, provided staff support for the group.) The council frames the need for a new energy direction as being as much of an economic imperative as an environmental one. It calls for a national energy strategy centered on a $16 billion annual federal investment in energy research — as much, the group pointedly notes, as the United States spends on imported oil every 16 days1.

1Blah-we’ve already wasted billions of dollars on government-funded energy research. Sad to say, but $16 billion is but a drop in the bucket.

Equally important, the group urges that government catalyze the development of energy alternatives by sending “a strong market signal” through such mechanisms as mandates on utilities to produce more renewable energy or “a price or a cap” on carbon emissions1. Such a cap is precisely what the Senate resolution sought to block. But the business leaders said that it is one of the policies that could “create a large, sustained market for new energy technology.”

1ARE YOU KIDDING ME!!!?? Renewable energy mandates (a.k.a. soviet style productions quotas) and “a cap” on carbon emissions (a.k.a. Soviet style energy rationing) ARE NOT “market signals”!!!! They are tools with which the government picks and chooses winners in the enrgy industry.

One of the council’s key insights was to recognize that expanded energy research and limits on carbon (or other mandates to promote renewable power) are not alternative but complementary policies: One increases the supply of new energy sources; the other increases demand for them1. Earlier this month, the nonpartisan Information Technology & Innovation Foundation echoed this conclusion in a report warning that the United States is already faltering in the race for new markets. With the world readying to spend $600 billion annually on clean-energy technology by 20202, the group noted, the United States is now running a trade deficit in these products and facing “declining export market shares” virtually everywhere.

1Indeed, all statist market machinations are complimentary.
2 Again, this supposed $600 billion demand is wholly derivative of first world governments. Absent government supports and mandates, the renewable energy industry is not viable.

Other nations are seizing these opportunities faster. In China, stiff mandates to deploy renewable sources domestically are nurturing local companies capable of capturing international markets1. It’s revealing that even as venerable an American firm as California-based Applied Materials, which produces the sophisticated machinery used to manufacture solar panels, opened a research center last fall in Xian, China. “If the U.S. becomes a bigger market for us, definitely we’d have to readjust our strategy,” general manager Gang Zou recently told visiting journalists. “But today, our customer market is in Asia.” Like the devastation in the Gulf, that stark assessment underscores the price that the United States is paying for the debilitating energy stalemate symbolized by this week’s Senate showdown2.

1 This is hogwash. China is building 3 coal fired power plants every two weeks, and the government is aggressively locking up oil and gas reserves in other countries.
2
Brownstein finally gets it right-Americans will pay a steep price for last week’s Senate vote. The EPA is trying to dictate its own regulatory pace, but it doesn’t have a choice. According to the text of the Clean Air Act, the feds must regulate all sources larger than a mansion. That would include YOUR small business, YOUR apartment, or YOUR office. Naturally, the EPA wants to avoid such an onerous regulatory regime, and it has devised a legal strategy to that end. The courts, however, have little leeway when it comes to interpreting the statutory text of the law. As a result, the EPA will be forced to regulate virtually the entire economy. The Senate could have stopped a runaway regulatory nightmare by voting for the Murkowski resolution, but Senate leadership is beholden to environmentalists, so it engineered an 11th hour defeat of the legislation. Now there’s nothing standing between you and the green police.

Here are headlines from two stories about the same peer-reviewed study.

Reuters: “Melting mountains put millions at risk in Asia: study

Nature: “Global warming’s impact on Asia’s rivers overblown

I’ll go with Nature on this one.

In the News

Senate Surrenders to the EPA
Washington Examiner editorial, 11 June 2010

Italian Green Jobs: Where’s the Meatball?
Carlo Stagnaro, MasterResource.org, 11 June 2010

No, It’s Not about Oil, But Oil Is Good
Marlo Lewis, OpenMarket.org, 10 June 2010

BP Is Asking for Punishment, Literally
Chris Horner, Daily Caller, 10 June 2010

Michigan Senators Sell Out
Henry Payne, Planet Gore, 10 June 2010

Barbara Boxer’s Upside
William Yeatman & Jeremy Lott, American Spectator, 8 June 2010

The Spill, the Scandal, the President
Tim Dickinson, Rolling Stone, 8 June 2010

Tapping the Well of Freedom
Iain Murray, National Review, 7 June 2010

News You Can Use

Biomass: Not So Green

Because forests absorb greenhouse gases much more slowly than previously thought, it takes a biomass burning power plant 20 years to realize emissions savings over a coal fired power plant, and 90 years if it replaces a natural gas power plant, according to a new study commissioned by the Massachusetts government.

Inside the Beltway

Myron Ebell

Murkowski Resolution Defeated

The Senate on Thursday defeated the Murkowski Resolution by a vote of 47 to 53.  Six Democrats joined all 41 Republicans in voting for S. J. Res. 26 to block the EPA’s finding that greenhouse gas emissions endanger public health and welfare and therefore must be regulated by the Clean Air Act.  The six Democrats were Blanche Lincoln (Ark.), Mary Landrieu (La.), Ben Nelson (Neb.), Jay Rockefeller (WV), Evan Bayh (Ind.), and David Pryor (Ark.).

Opponents had to work overtime to defeat Senator Lisa Murkowski’s (R-Alaska) Resolution.  Environmental pressure groups spent millions of dollars in the last few weeks on radio and television advertising and on grassroots mobilization.  The White House issued a sternly-worded veto threat on Tuesday.  I even heard that an appeal for phone calls to the Senate was sent to President Obama’s Organizing for America e-mail list of 13 million names.

Reid’s Last Second Machinations

But by Wednesday, it was clear that all of their efforts were not going to be enough to defeat the Resolution.  So Majority Leader Harry Reid (D-Nev.) promised to hold a vote later in the year on a bill introduced by Senator Rockefeller that would delay the implementation of Clean Air Act regulations for two years.  That was enough to peel away the votes of Senator Jim Webb (D-Va.) and several others.

Although I doubt that anyone in the Senate is counting on Reid to keep his promise, it was a remarkable concession to have to make.  It reveals that the Democratic leadership and the White House realized that they were in deep trouble if the Senate passed the Murkowski Resolution.  My guess is that House Speaker Nancy Pelosi (D-Calif.) told the White House and Reid that she would have a hard time preventing a House vote if the Senate voted yes.  That’s because 170 House members, including 25 Democrats, have already co-sponsored identical resolutions and there are a number of Democrats who voted for the Waxman-Markey energy-rationing bill who think that a vote against energy rationing now might help them save their seats in the November elections.

What’s Next?

This was therefore not just a symbolic vote, as opponents have claimed for months.  It was a very important vote that will reverberate through the election campaign.  Nor is it the end of efforts to block EPA from implementing regulations that will suffocate the economy.  There is clearly majority support in the Senate and House at least to delay EPA implementation of emissions regulations.  A vote on the Rockefeller bill, S. 3072, may or may not occur, but there are a number of other avenues still open: the lawsuits filed against the Endangerment Finding; a House discharge petition to bring the Resolution of Disapproval to the floor; a rider to the EPA appropriations bill could be offered this fall to remove funding for implementing any greenhouse gas regulations; and next year the new Congress may be much more hostile to the Endangerment Finding and to energy-rationing policies in general.

Highlights and Lowlights

I listened to much of the six hours of Senate floor debate on C-Span.  Anyone who missed it who would like to hear some of the speeches can find them archived here.  Senator Murkowski did an excellent job explaining the issues and what was at stake and why even supporters of energy-rationing legislation (as she is herself) should vote to block EPA.  The speeches of the Chairman and Ranking Republican of the Environment and Public Works Committee provided a sharp contrast in intellectual seriousness.  Ranking Republican James Inhofe (R-Okla.) gave a cogent and factually accurate speech that summarized the whole issue.  Chairman Barbara Boxer (D-Calif.), on the other hand, let loose with howler after ridiculous howler.  I shouldn’t be unfair to Senator Boxer, however.  Many of the other Senators opposed to the Resolution spoke just as much foolish nonsense.  I should single out Senator John Kerry (D-Mass.) as one of them.  Kerry is the chief sponsor of the two Senate cap-and-trade bills, but is as clueless as Boxer.

Three other floor speeches should be mentioned.  Senator John McCain’s (R-Az.) speech was made possible by his Republican primary opponent, J. D. Hayworth.  I expect we will hear many other good conservative speeches from McCain between now and 24th August.  Senator Webb gave an excellent analysis of what was at stake: “I do not believe that Congress should cede its authority over an issue as important as climate change to unelected officials of the Executive Branch….  Without proper boundaries, this finding could be the first step in a long and expensive regulatory process that could lead to overly stringent and very costly controls on carbon dioxide and other greenhouse gas emissions.  Congress – and not the EPA – should make important policies, and be accountable to the American people for them.”  Then, of course, Webb voted No.  I guess there wasn’t time to re-write his speech after he switched his vote.

Senator Rockefeller summed up his reasons for voting Yes: “I don’t want EPA turning out the lights on America.”  Fifty-three of his Democratic colleagues disagreed.  They now bear full responsibility for the dire economic consequences of EPA’s regulatory onslaught.

Around the World

Bonn

The United Nations Framework Convention on Climate Change today finishes two weeks of testy climate treaty negotiations in Bonn. The Bolivian representative kicked off the conference by accusing wealthy nations of bad faith for inserting loopholes into their voluntary pledges to reduce greenhouse gases. Then, a block of developing countries in Bonn moved to lower the UNFCCC’s official target for a maximum temperature increase, from 2 degrees Celsius to 1.5 degree Celsius, despite two decades of diplomatic failure to achieve a legally binding treaty for any emissions reductions. However, this effort was scuttled by Saudi Arabia and other OPEC states. Finally, outgoing UNFCCC chairman Yvo de Boer concluded the Bonn talks with a warning that a climate treaty is impossible until 2011, thus implying the 16th Conference of the Parties to the UNFCCC, this December in Mexico (for which the Bonn conference was preparatory) will fail.

The Cooler Heads Digest is the weekly e-mail publication of the Cooler Heads Coalition. For the latest news and commentary check out the Coalition’s website, www.globalwarming.org.

In the News

UVA’s Defense of Mann: Back-off, He’s a Scientist
Chris Horner, Pajamas Media, 4 June 2010

EPA Puts Ideology ahead of Common Sense
Washington Examiner editorial, 4 June 2010

Carbon Offsets Deal Hit by Bribery Allegations
Michael Peel & Fiona Harvey, Financial Times, 4 June 2010

Another Reason To Nix the Endangerment Finding
Marlo Lewis, OpenMarket.org, 3 June 2010

Sinking Climate Change
Cal Thomas, Washington Examiner, 3 June 2010

Kerry’s Big Business Buyoff
William Yeatman & Jeremy Lott, American Spectator, 3 June 2010

The Death Spiral for Climate Alarmism Continues
Kenneth P. Green, MasterResource.org, 2 June 2010

The Lessons of the GM Bankruptcy
Paul Ingrassia, Wall Street Journal, 1 June 2010

The West’s Wrong Turn on Natural Resources
Joseph Sternberg, Wall Street Journal, 1 June 2010

UVA, Cuccinelli: Chilling
Richmond Times Dispatch editorial, 30 May 2010

News You Can Use

Tuvalu Is Growing

Tuvalu has been the face of small island nation states during international negotiations for a climate treaty. In 2003, for example, Tuvalu’s prime minister earned headlines by presenting the United Nations with a bill for the damages caused to small islands by rising sea-levels. So it should come as a great relief to the people of Tuvalu that 86% of the islands that comprise the country are growing thanks to sediment and coral accretion, according to a study this week from the New Scientist.

Inside the Beltway

Myron Ebell

President Pitches a Climate/BP Bill

President Barack Obama renewed his call for comprehensive energy-rationing legislation in a speech Wednesday in Pittsburgh.  The President argued that BP’s leaking deep sea oil well in the Gulf of Mexico was another compelling reason for passing such legislation in order to get the country off foreign-sorry, domestically-produced-oil.

Obama admitted that “the votes may not be there now, but I intend to find them in the coming months” in the Senate to pass the Kerry-Lieberman bill.  “I will continue to make the case for a clean energy future wherever and whenever I can.  I will work with anyone to get this done. And we will get this done.”

Politico then reported Thursday morning that the White House is planning a big push for energy-rationing in the Senate after the financial regulation bill is signed into law, which they think will happen around the Fourth of July.  Mike Allen, Jake Sherman, and Tim Alberta further reported that “the strategy now will be to include climate provisions in a BP SPILL BILL tightening industry controls, on the theory the bill will be hard to oppose.”

This is interesting, if true, but adding unpopular cap-and-trade or similar provisions to reduce energy supplies and raise energy prices is going to be a heavy weight on any bill, no matter how popular it is.  One problem with trying to take political advantage of the BP oil leak is that the worse it gets, the more it makes Obama look like an ineffectual leader and thereby weakens him politically.

This is not to say that I think this is fair to the President.  The leak is BP’s fault, and BP’s unpreparedness to stop it before it became a disaster is shameful.

Murkowski Update

Congress has been away on the Memorial Day recess this week.  On Thursday, June 10, the Senate is scheduled to debate and vote on Senator Lisa Murkowski’s (R-Alaska) Resolution of Disapproval of the EPA’s Endangerment Finding.  I still think it’s going to be a very close vote, although the numbers may shift after it’s clear whether it’s going to pass or fail.  How a number of Democratic Senators from heartland States are going to vote is still unknown.  It was reported this week that a consortium of environmental pressure groups was going to run several hundred thousand dollars of radio and television advertising opposing S. J. Res. 26 in the States of some of these Senators.

Across the States

Connecticut

Connecticut Governor M.Jodi Rell (D) this week vetoed a “green” energy bill, the ironically titled Act for Reducing Electricity Costs and Promoting Renewable Energy, because she feared it would raise electricity costs thereby further weakening and already weak economy. The Governor also expressed displeasure with the process by which the bill passed in the state Legislature. The Democratic-controlled House introduced the bill at 3:00 A.M on the last day of the legislative calendar, and it passed at 6:00 A.M.

The Cooler Heads Digest is the weekly e-mail publication of the Cooler Heads Coalition. For the latest news and commentary check out the Coalition’s website, www.globalwarming.org.

In the News

Energy Regulation in the States: A Wakeup Call
Daniel Simmons, MasterResource.org, 28 May 2010

It’s Not a Good Season for Al Gore’s Fan Club
Mark Landsbaum, Orange Punch, 27 May 2010

Lost in the Gulf: Perspective
Ron Ross, American Spectator, 27 May 2010

Climategate and the Scientific Elite
Iain Murray, National Review, 26 May 2010

NASA Accused of Climategate Stalling
Stephen Dinan, Washington Times, 26 May 2010

Push To Balance Climate Debate in Classroom Heats up in Colorado
Nancy Lofholm, Denver Post, 26 May 2010

Americans Are Becoming Global Warming Skeptics
Mary Kate Cary, US News & World Report, 26 May 2010

The Green Dog Isn’t Barking at the NYT
Chris Horner, BigGovernment.com, 24 May 2010

Obama’s Choice: Pests over People
William Yeatman, Washington Times, 24 May 2010

Europe’s Climate Chief under Pressure over ‘Missing’ Emissions Traders
Felicity Carus, Guardian, 24 May 2010

News You Can Use

Climategate Is Changing Public Perception of Global Warming

  • In April, a Rasmussen poll showed more than 40 percent of voters say global warming is not serious, which is a new high
  • A survey in February by the BBC found that only 26 percent of Britons believed that “climate change is happening and is now established as largely manmade,” down from 41 percent in November 2009.
  • A poll conducted for the German magazine Der Spiegel in March found that 42 percent of Germans feared global warming, down from 62 percent four years earlier.

Inside the Beltway

Myron Ebell

Murkowski Resolution Vote Set for 10th June

A vote on the Senate floor on Senator Lisa Murkowski’s (R-Alaska) resolution of disapproval of the EPA’s endangerment finding was delayed once again this week, but a definite date has now been set.  Senator Murkowski obtained a unanimous consent agreement to hold the vote on S. J. Res. 26 on Thursday, 10th June.

My CEI colleague Marlo Lewis’s latest article on why the endangerment finding should be overturned was published on Pajamas Media this week. Americans for Prosperity’s Phil Kerpen also wrote an excellent article in support of the Murkowski Resolution on Fox Forum. Those wishing to contact their Senators in support of the resolution may do so at Freedom Action.

Protesters, described as Tea Party activists, rallied in front of Senator Jay Rockefeller’s (D-WV) office in Charleston this week in favor of the Murkowski resolution.  Senator Rockefeller quickly released a statement that said, “Senator Murkowski and I have been working to find a way to suspend EPA climate regulations because we believe that Congress – not an unelected federal agency – should decide these enormous economic issues.”  Of course, Rockefeller, has his own bill to delay EPA regulations for two years, but it sounds like he is now leaning toward voting for the Murkowski resolution.

Casey and Carper Plan to Thwart Murkowski Resolution

Senators Bob Casey (D-Penna.) and Tom Carper (D-Del.) are putting together legislation designed to defeat the Murkowski resolution.  Their plan is to legislate the EPA’s proposed tailoring rule that exempts small sources of greenhouse gas emissions from regulation under the Clean Air Act (at least for a few years).  The tailoring rule as issued by EPA is likely to be overturned in federal court simply because the Clean Air Act doesn’t give EPA the flexibility to regulate some sources and not others.  The Act states that sources emitting more than 250 tons per year of the regulated pollutant are to be regulated.  Not many sources emit more than 250 tons of air pollutants such as sulfur dioxide, but millions of sources produce more than 250 tons of carbon dioxide a year.

By enacting the tailoring rule, Casey and Carper can argue that they are protecting millions of small businesses and farms while still retaining regulation of greenhouse gases.  This might appeal to Senators in the middle who favor government control of energy use, but realize that doing so using the Clean Air Act is going to lead to a regulatory trainwreck.  However, enacting the tailoring rule would also have the effect of enacting the endangerment finding and the Clean Air Act regulations that follow from it.  This would quash the lawsuits that have been filed challenging the endangerment finding.

There have been rumors that Majority Leader Harry Reid (D-Nev.) would like to attach the Casey-Carper language to a bill on the Senate floor as soon as possible.  However, it now looks as if no bill to which Casey-Carper would be a germane amendment will come to the floor before the 10th June vote on the Murkowski resolution.  Thus if the Murkowski resolution passes, the Senate will be unlikely to pass Casey-Carper as well.

Across the States

Oklahoma

In an effort to help close a $1.2 billion budget deficit, the Oklahoma legislature this week passed S.B. 1267, which would suspend 30 state credits, including one for wind power generators. According to Chuck Hodge, the Vice President of DMI Industries, Oklahoma’s only wind power manufacturer, S.B. 1267 would cause wind developers to avoid the State, which means that this legislation is doubly good for Oklahomans: It would help cut the state’s deficit, and it would spare electricity consumers from expensive and unreliable wind power.

Climategate Update

Last Friday, the Competitive Enterprise Institute filed a request seeking records from the University of Virginia under that state’s Freedom of Information Act (FOIA). In particular, CEI wants to know why UVA is resisting the request by Virginia Attorney General Ken Cuccinelli for the files of former Associate Professor Michael E. Mann, author of the debunked “hockey stick” global temperature reconstruction, at the same time that the University is complying with a FOIA request from Greenpeace for the files of former Professor Patrick Michaels, a prominent skeptic of catastrophic climate change. AG Cuccinelli has begun an investigation of possible misuse of state funds by Mann. To learn more, read this piece by CEI’s Chris Horner in Sunday’s Richmond Times-Dispatch.

This week, CEI  filed a lawsuit to force NASA to produce records related to last year’s “ClimateGate” scandal. The lawsuit arises out of three CEI Freedom of Information Act (FOIA) requests, initiated in August 2007 and originally seeking internal documents about NASA improperly boosting U.S. temperature data in this decade.  Five months after the first request, CEI sought documents concerning Dr. Gavin Schmidt, a taxpayer-funded NASA researcher who spends working hours running and writing for a third-party website (RealClimate.org) that was created to defend the now-debunked “Hockey Stick” temperature graph. After CEI submitted this FOIA request, timestamps were retroactively removed from Real Climate posts.  CEI is presenting the Court with original website postings that establish how NASA facilities and staff, at taxpayer expense, are being employed to push a specific policy agenda. Click here to read the legal brief.

A Kerry Kerfuffle

Last week, Senator John Kerry wrote a fact-free opinion piece in The Hill claiming that global warming is a clear and present danger to American national security. To set the record straight, CEI’s William Yeatman wrote a letter to The Hill detailing Kerry’s exaggerations and misstatements. Clearly, the letter got under the Senator’s skin, because within hours, the Senator published a response in the Huffington Post, in which the Senator opted for ad hominem attacks rather than explain the shoddy reasoning behind his original opinion piece. Kerry’s tortured response, in turn, drew the attention of the Wall Street Journal’s James Taranto, who wrote a very witty rebuttal, with a particular focus on the Senator’s hypocritical relationship with military authority.

The Cooler Heads Digest is the weekly e-mail publication of the Cooler Heads Coalition. For the latest news and commentary check out the Coalition’s website, www.globalwarming.org.

In the News

States Divided Over New EPA Rules
Shannon Goessling, Washington Times, 21 May 2010

Cap-and-Trade Magic Show
James Valvo, Washington Times, 21 May 2010

Inequitable in Ecuador
Quin Hillyer, American Spectator, 21 May 2010

Electric Dreamin’
Henry Payne, Planet Gore, 21 May 2010

Scientists Scramble To Address Radio Campaign
Stephen Dinan, Washington Times, 20 May 2010

The Green Jobs Myth
Investor’s Business Daily editorial, 20 May 2010

The EPA’s Shocking Power Grab
George Allen & Marlo Lewis, Forbes, 18 May 2010

UVA’s Dishonorable Double Standard
Barbara Hollingsworth, Washington Examiner, 18 May 2010

Climate Policy Needs a Team “B”
David Schnare, MasterResource.org, 18 May 2010

News You Can Use

Maybe It’s the Sun

Despite the absence of anthropogenic greenhouse gas emissions, Jupiter’s climate changed drastically this month when a giant belt of clouds circling the planet mysteriously disappeared. As noted by the BlogProf, this follows recent discoveries that Triton, a moon of Neptune, is rapidly warming and that Mars’s polar ice caps are evaporating.

Inside the Beltway

Myron Ebell

Murkowski Resolution Debate Heats Up

In a story in Environment and Energy Daily (reprinted on the NY Times’s web site), Darren Samuelsohn reports that Senator Lindsey Graham (R-SC) predicts the Murkowski resolution of disapproval of the EPA’s endangerment finding will pass the Senate when it is brought to the floor for a vote next week.  “I think it will pass,” said Sen. Lindsey Graham (R-S.C.). “There are a lot of people who will be in the camp of, ‘We should do it, not the EPA.'”

I think that is a sensible observation.  Senator Lisa Murkowski (R-Alaska) is among those who favor reducing greenhouse gas emissions, but who do not want it to be done by using the Clean Air Act.  That is because she has concluded that applying the Clean Air Act to carbon dioxide emissions will result in a regulatory nightmare and wreck the economy (which is also sensible).  This conclusion is gaining ground as Members of Congress look at the issue.  Therefore, I do not think the Senate vote is merely “symbolic,” as political commentator Norman Ornstein of the American Enterprise Institute told Evan Lehmann and Jessica Leber of Climate Wire (also reprinted on the New York Times’s web site).

My guess is that Murkowski’s resolution, S. J. Res. 26, will pass narrowly and that pressure will then build on House Speaker Nancy Pelosi (D-Calif.) to schedule a House vote.  One of the interesting results of the congressional primary elections so far is that strong opponents of cap-and-trade in both parties are doing well.  Steve Milloy of JunkScience.com has noticed the trend, as has the Huffington Post.  Democratic House Members worried about their re-election may plead with Pelosi that they need a vote against EPA regulation to take back home. An indication that Pelosi may already be feeling some heat is that this week she said, as reported by Bob Cusack and Ben Geman in the Hill, that Congress should legislate global warming policy rather than let EPA regulate.

This week nineteen free market and conservative non-profit groups sent a joint letter to Senators in support of the Murkowski resolution.  It was written and organized by my CEI colleague, Marlo Lewis.  Marlo and former Virginia Governor and Senator George Allen also published an excellent op-ed on the Forbes Magazine web site that explains why stopping EPA from using the Clean Air Act to regulate carbon dioxide emissions is a constitutional as well as economic imperative.

Several environmental groups have been running ads against the Murkowski resolution.  Americans for Prosperity has held a bunch of rallies in support of the resolution in the States of key Senators over the past few weeks.  This week Freedom Action (of which I am director) started running radio ads in six States-Virginia, West Virginia, North Dakota, New Mexico, Montana, New Mexico, and Alaska-which tie the ClimateGate scandal to the EPA Endangerment Finding and urge listeners to e-mail their Senators.

Obama Wants To Raise CAFE Again

President Barack Obama today issued a memorandum directing federal agencies to develop tougher new fuel economy standards for cars and light trucks beginning in the 2017 model year and to develop fuel economy standards for medium and big trucks for the first time. This follows the new standards announced in April that will begin with the 2012 model year.  It’s not clear to me that consumers are going to want to buy the models that the Congress and the Obama Administration have decreed will be offered in 2012, but the automakers are now resigned to taking orders from their federal masters rather than their customers. My prediction is that another massive bailout of the automakers is inevitable.

“Invaluable” Climate Reports Released

The National Academies of Science this week released three reports prepared by the National Research Council that endorse the scientific case for global warming alarmism and claim that it is urgent that the federal government adopt mandatory reductions in greenhouse gas emissions.

Former New York Times environment reporter Andrew Revkin on his New York Times blog called the reports “invaluable.”  Yeah, I’ve got a lot of invaluable junk stored in my basement, too, that perhaps I can interest Andy in buying.

The fact is that these three reports are put-up jobs arranged by NAS President Ralph Cicerone to counter the damage done by the Climategate scandal.  I have seen enough of Dr. Cicerone in action to know that he is a political conman first and a scientist second.  I wouldn’t trust him to give a straight answer on the time of day.  The carefully-chosen members of the NRC committees that wrote the reports are mostly committed advocates of alarmism and energy rationing policies.  Mark Landsbaum of the Orange County Register agrees.

4th International Conference on Climate Change

I was one of 700 people attending the Heartland Institute’s fourth International Conference on Climate Change this week.  As with the first three conferences, Joe Bast, James Taylor, Nikki Comerford, and the Heartland staff put together a well-run conference with many outstanding speakers.  All of the keynote and panel presentations are available on video here.

There are a number of famous names among the speakers who gave excellent talks-Richard Lindzen, Bob Carter, Steve McIntyre, Nils-Axel Morner, Ian Plimer, and others whose talks I missed (which is the problem with having four concurrent sessions).  One less famous speaker, whose talk I recommend watching, is Willis Eschenbach.

Across the States

West Virginia

On Tuesday night, the Environmental Protection Agency held a public hearing in Charleston, West Virginia, on its proposed veto of a Clean Water Act permit for Spruce Fork 1 coal mine in Logan County, which is already operating. The EPA is exercising this authority for the first time ever, in order to protect an insect that isn’t even an endangered species. More than 800 people attended, and scores of miners, small businessmen, and community activists gave testimony urging the EPA to spare their livelihoods. The EPA’s veto would result in the direct loss of 250 jobs paying an average of $62,000, and would also deprive the Logan County school system of more than $17 million annually.

Around the World

Spain

Since becoming President, Barrack Obama has cited the “success” of Spain’s green energy policies eight times, most recently in Illinois, three weeks ago. So it was major news when Professor Gabriel Calzada, an economist at King Juan Carlos University, released a study in 2009 concluding that Spain’s ultra-wasteful green energy subsidies were killing 2.2 jobs for every job they created. After CEI’s Chris Horner broke news of the study in the U.S., the Obama administration commissioned a hatchet job analysis to discredit Calzada’s work. This week, Professor Calzada was vindicated when a government report was leaked conceding that the green energy subsidies are unsustainable. The headline of the Spanish daily La Gaceta says it all: “Spain Admits That the Green Economy as Sold to Obama Is a Disaster.”

UNFCCC

Bloomberg reported this week that Christiana Figueres, a Costa Rican diplomat, will succeed Yvo de Boer as the head of the United Nations Framework Convention on Climate Change on July 1st. Soon after the announcement, she told reporters that she is confident that a legally binding, international greenhouse gas emissions reductions treaty can be reached in 3 years. We’ve heard that before. In 2007, de Boer championed the “Bali Roadmap,” which was supposed to lead to a climate treaty at the 15th Conference of the Parties to the UNFCCC last December in Copenhagen, Denmark. Of course, the Copenhagen Climate Conference foundered amid recriminations over how to share the $45 trillion price tag for a global climate treaty.

The Cooler Heads Digest is the weekly e-mail publication of the Cooler Heads Coalition. For the latest news and commentary check out the Coalition’s website, www.globalwarming.org.

Nineteen free-market groups have signed a letter urging Senators to support S. J. Res. 26, the bipartisan legislation sponsored by Sen. Lisa Murkowski (R-Alaska) to overturn the legal force and effect of EPA’s endangerment finding with respect to greenhouse gases (GHGs).

If allowed to stand, the endangerment finding will trigger a regulatory cascade, making carbon dioxide (CO2) emissions “subject to regulation” under several Clean Air Act (CAA) programs. America could end up with a regulatory regime more costly than any climate bill or treaty the Senate has declined to pass or ratify, yet without the people’s representatives ever voting on it.

Under Senate rules, the vote must take place before June 7th, and it is expected to be very close.

Click here to view the letter.

Click here for commentary on S.J. Res. 26 by CEI’s Marlo Lewis and former Virginia Governor George Allen.

Click here to listen to a nation-wide radio campaign in support of S.J. Res. 26 launched by Freedom Action.

Click here to urge your Senators to vote for S.J. Res. 26.

After 7 months of negotiations, Senators John Kerry and Joseph Lieberman last week unveiled a major climate bill to a chorus of…silence. On the day after the rollout, the American Power Act failed to make the front page of a single paper with a national scope. The Sunday political talkies also ignored the bill. I didn’t hear a single mention of the American Power Act on Fox News Sunday, ABC’s This Week, NBC’s Meet the Press, the McLaughlin Group, or the Chris Matthews Show.

What gives? The mainstream media LOVES global warming as an issue, because it’s divisive and it’s yellow. So why would they ignore it? The only explanation I can think of is that the media believes the bill is dead. My only evidence is anecdotal. Last Thursday I did a taped interview with a very pro-cap-and-trade reporter from Al Jezeera, and the first thing out of his mouth was, “So this bill is dead, right?” I’m not so sanguine, because I once thought the same thing about health care “reform.” Nonetheless, the media’s evident apathy is curious.

In the News

How To Buy Corporate Support for Kerry-Lieberman
Chris Horner, Planet Gore, 14 May 2010

Cap-and-Scam
David Harsanyi, Denver Post, 14 May 2010

Renewables Versus Conventional
John Droz, Jr., American Spectator, 14 May 2010

The Bootleggers Are the Baptists’ Last Hope
Iain Murray, Washington Examiner, 13 May 2010

Thomas Friedman, Phone Home
William Yeatman & Jeremy Lott, Real Clear Markets, 12 May 2010

A Climate Dud
Chip Knappenberger, MasterResource.org, 12 May 2010

The Price of Wind
Wall Street Journal editorial, 12 May 2010

Kerry-(Graham)-Lieberman: A Monstrous Payoff To Big Businesses
Myron Ebell, New York Times, 10 May 2010

Shelving of California’s Climate Law a Lot Closer
Tom Tanton, OC Register, 10 May 2010

Sale of Chicago Climate Exchange Reinforces Weak Carbon Market
Joel Kirkland, ClimateWire, 3 May 2010

News You Can Use

Costs & Benefits of Kerry-Lieberman American Power Act

Potential cost: $70 billion to $145 billion a year
Benefit: By 2100, Kerry-Lieberman would reduce global temperatures by .2 degrees Fahrenheit, if the mandatory emissions targets are achieved (and the sensitivity of the climate to CO2 levels is as high as the IPCC claims)

Inside the Beltway

Myron Ebell

EPA Releases “Tailoring Rule”

The EPA released the final version of its “tailoring rule” this week, but it hasn’t been published in the Federal Register yet.  The tailoring rule ignores the clear language of the Clean Air Act that stationary sources that emit more than 250 tons per year of the regulated pollutant must be regulated.  EPA proposes to regulate sources above 75,000 tons of greenhouse gas emissions per year, at least for the first few years. CEI’s Marlo Lewis explains the tailoring rule and its consequences here and here.

At last: Kerry and Lieberman Introduce Their Bill

Senators John Kerry (D-Mass.) and Joseph Lieberman (I-Conn.) on Wednesday finally released a draft energy-rationing bill.  It’s 987 pages.  The text and short and longer summaries may be found here. They boasted that it has wide industry support and have made no secret of the fact that large parts of it were written by the companies that support it.  Several heads of big companies stood with Kerry and Lieberman at their press conference, although BP and Goldman Sachs were not there.

The targets and timetables for reducing greenhouse gas emissions are similar to those in the House-passed Waxman-Markey bill, H. R. 2454, but the methods to achieve those reductions are somewhat different.  Kerry and Lieberman begin their bill with nuclear loan guarantees and offshore oil provisions.  There is a cap-and-trade system, but it applies only to electric utilities.  The price of ration coupons has lower and upper limits.

The bill summary claims that, “Consumers will come out on top.  The American Power Act sends two-thirds of all revenues not dedicated to reducing our nation’s deficit back to consumers from day one.”  I wonder how long that promise will be kept by the Congress.

I don’t think the bill is going anywhere and said so here.  Surprisingly, Senator Lindsey Graham (R-SC), who helped write the bill but pulled out three weeks ago, sent out a press release that makes a similar prediction. Kerry claims, correctly in my view, that it is not an environmental bill.  Rather it is a collection of payoffs to big companies to pass a bill that will put the federal government in charge of controlling how much and what type of energy people can use.

Barrasso Offers Amendment to Ban Carbon Derivatives

Senator John Barrasso (R-Wyoming) this week filed an amendment to the financial regulation bill currently being debated on the Senate floor that would ban trading in carbon derivatives if a mandatory cap-and-trade scheme is enacted.  The text of Senate amendment 3940 may be found here.  Those who want to e-mail their Senators in support of (or opposition to) the amendment may do so at Freedom Action.

Unless Majority Leader Harry Reid (D-Nev.) manages to cut off debate on the financial regulation bill, S. 3217, it is expected that Senator Barrasso will offer his amendment early next week.  It should attract strong support from the left as well as the right.  The purpose of the amendment is to try to limit opportunities for market manipulation and fraud if an artificial market is created by government in carbon credits.  EUROPOL has said that up to 90% of the volume of trades in the European Union’s Emissions Trading Scheme involve fraudulent activity.  That’s not because there is anything wrong with derivatives.  In fact, various derivatives are necessary for the efficient working of markets.  It’s because carbon credits are phony pieces of paper.  Anything that can be done to limit this colossal scam should be done.

Update on Murkowski Resolution

Senator Lisa Murkowski (R-Alaska) is nearing D-Day to bring her resolution disapproving the EPA’s finding that greenhouse gas emissions endanger public health and welfare to the Senate floor for a vote.  I expect her to do so late next week or perhaps early in the week after next.  Under the Congressional Review Act, she needs only fifty-one votes.  The resolution, S. J. Res. 26, has forty-one sponsors, including three Democrats.

As I said last week, I think it’s going to be a very close vote.  Those who want to e-mail their Senators in support of (or opposition to) the Murkowski resolution may do so at Freedom Action.

If the Senate passes the resolution, then the House could take it up at any time.  Clearly, Speaker Nancy Pelosi (D-Calif.) is dead set against allowing a vote on the resolution.  And if the House passed it, then President Obama could veto it.  However, pressure continues to build in the House to do something.  The latest step in that direction is a bill introduced this week by Representatives Dennis Rehberg (R-Mont.) and Stephanie Herseth Sandlin (D-SD), which would prohibit any regulation of greenhouse gases under existing laws.  This is similar to an amendment that Senator George Voinovich (R-Ohio) released a few weeks ago.  The text of H. R. 5924 may be found here.

Rehberg and Herseth Sandlin are reacting to the Bureau of Land Management’s decision last month to suspend oil and gas leases in their States while it considers the effects of more oil and gas production on global warming.  BLM’s action is just the tip of the iceberg, so I expect many more Members of Congress will soon become interested in the Murkowski resolution and the Rehberg-Herseth Sandlin bill.

Around the World

Iain Murray, from The Corner

UK’s New Anti-Energy Policy

The new coalition government in the United Kingdom has made public its list of environmental policies, and it reads like a national charter for economic suicide.  The Rt. Hon. Chris Huhne, MP, a Liberal Democrat on the left of that party, has been made Secretary of State for Energy and Climate Change, although it is quite clear that the order of priority is the reverse of that.  Mr Huhne has been an environmental activist for many years and is therefore unlikely to listen to voices telling him that the lights will go out and energy prices rise if he implements these policies fully.  Meanwhile, the new government’s hostility to air travel is obvious, something that will no doubt dismay Britain’s tourist industry.  The Taxpayers’ Alliance, one of several groups in Britain that understands the implications of these policies, has issued an initial reaction that would be devastating if anyone in the new government was willing to read it.  Unfortunately, the environment section is such a cornerstone of the coalition agreement that it will likely be clung to as long as the coalition has life. Click here to read the agreement in full.

The Cooler Heads Digest is the weekly e-mail publication of the Cooler Heads Coalition. For the latest news and commentary check out the Coalition’s website, www.globalwarming.org.

In the News

Are We Listening Yet?
Chris Horner, American Spectator, 7 May 2010

Drill, Baby, Still
Investor’s Business Daily editorial, 7 May 2010

A Positive Human Influence on Global Warming?
Robert Bradley, MasterResource.org, 6 May 2010

A Sudden Acceleration of Regulation
Henry Payne, Planet Gore, 6 May 2010

A Gush to Judgment
Iain Murray, Washington Examiner, 5 May 2010

EU Investigates Cap-and-Trade Fraud
Leigh Phillips, EU Observer, 5 May 2010

Keep The Lights On
Peter Ferrara, American Spectator, 5 May 2010

The Costs of Carbon Controls
Marlo Lewis, GlobalWarming.org, 4 May 2010

Gore: From Sanctimonious to Ridiculous
Victor David Hanson, PJM, 2 May 2010

News You Can Use

CEOs: California Has Worst Business Climate

American CEOs consider California to be the worst place to do business in the country, according to a new poll by Chief Executive Magazine. Not coincidentally, the Golden State is also the national leader in onerous environmental regulations, including AB 32, and high energy prices.

Inside the Beltway

Myron Ebell

Update on Murkowski’s Disapproval Resolution

Senator Lisa Murkowski (R-Alaska) has at least until the Memorial Day recess to offer her resolution under the Congressional Review Act to disapprove the Environmental Protection Agency’s finding that greenhouse gas emissions endanger public health and welfare.  S. J. Res. 26 has 41 co-sponsors, including three Democrats-Lincoln (Ark.), Landrieu (La.), and Nelson (Neb.).  Nine more votes are needed to get to the 51 needed for passage.

It appears likely that Republican Senators Olympia Snowe and Susan Collins of Maine will vote against the resolution and that Scott Brown, the new Republican Senator from Massachusetts, will vote for it.  That means Murkowski needs to find eight more Democrats.  The most likely are from coal and manufacturing States.  If the White House sees it as a threat, then they may lean pretty hard on some of these Democrats to vote no.  On the other hand, Murkowski has been assiduously lobbying her colleagues for months.  My guess is that it will be very close, but the resolution will pass.  The vote could occur any time in the next three weeks.

If the Senate passes S. J. Res. 26, then the House can take up the resolution at any time.  The House Democratic leadership will not bring it to the floor, which means that the only way to get it to the floor for a vote is through a discharge petition signed by a majority of House Members.  There are two identical House resolutions of disapproval.  H. J. Res. 76 was introduced by Rep. Ike Skelton (D-Mo.) and now has 47 co-sponsors.  H. J. Res. 77 was introduced by Rep. Joe Barton (R-Tex.) and now has 115 co-sponsors.  That’s a start, but still a long way from 218 signatures on a discharge petition.

Graham Clears Everything Up

The picaresque saga featuring Senators John Kerry (D-Mass.), Lindsey Graham (R-SC), and Joseph Lieberman (I-Conn.) grows ever more farcical.  Kerry this week once again promised to release a draft of their energy-rationing bill next Wednesday, with or without Graham’s support.  Graham’s comments have been all over the map.  He said that there was still a chance this year to get the sixty votes necessary to pass the bill.  Then he said that the bill was dead for this year.  Most recently, he said this in an interview with Environment and Energy Daily: “There is no bipartisan support for a cap-and-trade bill based on global warming. There is bipartisan support in the future, at the right time and in the right circumstances, for an energy independence legislation, green job creation and clean air.”

BP’s big oil spill off the Louisiana coast complicates the issue.  On the one hand, Senator Bill Nelson (D-Fla.) announced that he would oppose any bill that included more offshore oil production.  Several other Senators on the left would probably do the same.  On the other hand, several Senators in the middle have said they will not support an energy-rationing bill unless it has more offshore oil production in it.  What I think Kerry should do is what he did with cap-and-trade, which he renamed “pollution reduction and investment,” and the gasoline tax, which he renamed “linked fee.”  He should call it the Offshore Wind, Solar, and Other Energy Title.  That way no one will know that it’s about offshore oil.

Across the States

Anti-AB32 Initiative Will Proceed to November Ballot

California voters will have the choice whether to proceed with costly carbon controls in the midst of an economic depression. On Monday, The California Jobs Initiative submitted 800,000 signatures of support for a ballot initiative that would delay implementation of AB 32, California’s 2006 global warming law, until the State’s unemployment declines to 5.5% (it currently stands at 12.8%). That’s more than double the number of signatures required to get on November’s ballot.

Coal State Democrats Protest the EPA Coal Crackdown

Representatives Nick J. Rahall (D-WV), Alan B. Mollohan (D-WV), and Rick Boucher (D-Va.) yesterday sent a letter to EPA Administrator Lisa Jackson expressing their concerns over the EPA’s plans to shut down surface coal mining in Appalachia (and the leading revenue generator in West Virginia) in order to protect the mayfly, an insect that isn’t even an endangered species. In fact, the EPA established bug-protections so stringent that they would outlaw almost all construction near an intermittent or ephemeral stream, but the EPA is trying to target the regulations solely on Appalachian coal mining. Reps. Rahall, Mollohan, and Boucher asked Administrator Jackson why “a hardrock mining operation in California, or a shopping mall construction project in New Jersey…should not be held to the same standard.” Good question.

Around the World

Obama Loses a Clean Energy Talking Point

Chris Horner, from The Daily Caller

Spain’s socialist Zapatero government has laid the groundwork for abandoning its vaunted “green jobs” schemes, admitting in an official if not yet released document the damning criticisms levied by an academic team. This is very bad news for the Obama administration whose leader on eight separate occasions instructed us to “think about what’s happening in countries like Spain” if we wanted to see his model and vision for a “green economy.” He would launch America into a new era of prosperity premised in “new technologies” like windmills-yes, he actually said that. Read more here.

UK Elections: The Greens Gain, a Nation Loses

Iain Murray

Britain’s inconclusive election merely reaffirmed that the nation is going to go further down the road of unsustainable energy policy.  Not only was the Green party leader, Caroline Lucas, elected to be the party’s first ever MP in the former Conservative stronghold of Brighton, but millionaire playboy Zac Goldsmith was elected nominally under the Conservative banner but stressed he was in Parliament to work on green issues.  Goldsmith has proved extremely influential on party leader David Cameron, and the Conservatives’ manifesto (platform) took a very alarmist line on climate and energy issues.

At time of writing, there are also suggestions that David Cameron’s outreach to the Liberal Democrats to join a coalition government includes further concessions on a low-carbon economy, although it is hard to see how much further the Conservatives can go.  With a mounting public sector debt crisis the size of Greece’s, a Prime Minister David Cameron and his adviser Goldsmith might well see their dreams of emissions reduction realized through the simple expedience of economic collapse.  It is certainly hard to see how Britain can recover economically with the albatross of decarbonization hanging around her neck.

Green China?

Proponents of cap-and-trade have taken to arguing that climate change legislation is an economic necessity because the U.S. risks falling behind in a global, zero-sum competition for green industrial supremacy. The influential columnist Thomas Friedman, for example, has prophesied that future historians will associate the 21st century’s first decade with China’s “Green Leap Forward.” He also has warned that the Chinese are going to “clean our clock” unless the Congress passes a cap-and-trade energy-rationing scheme. This is ridiculous: Green energy is mere window dressing in China, which is building a new coal fired power plant every week to meet its growing energy needs. This reality was reinforced today, when the New York Times reported that China’s “surging demand for power from oil and coal has led to the largest six-month increase in the tonnage of human generated greenhouse gases ever by a single country.”

Subprime Carbon

Julie Walsh

The European criminal intelligence agency (Europol) has said that as much as 90 percent of the entire market volume on emissions exchanges was caused by fraudulent activity.  Examples of fraud abound.

Worse, Mark Shapiro in a Harper’s Magazine article entitled “Conning the Climate” details the factors in carbon trading that make fraud inherent in the system:

If cap-and-trade in the United States were to become reality along the lines of proposals now before Congress, up to 2 billion of the new credits would be drawn from carbon offsets, potentially increasing the worldwide supply of such credits by a factor of seven.

The United Nations has certified twenty-six firms worldwide-in U.N. lingo, Designated Operational Entities (DOEs)-to “validate” emissions offsets and then to “verify,” often years later, that those reductions actually occurred.

The developers of emissions-offset projects are by and large funded or owned outright by multinational firms, particularly financial houses such as JP Morgan Chase, which owns the biggest developer in the world, Eco-Securities, and Goldman Sachs, which has a significant interest in the largest U.S.-based developer, Blue Source.

Far from being independent third-party auditors, the DOEs get paid by these very developers and have to compete vigorously to win business.

But only 4 percent of requests for verification of offsets since 2005 have been rejected.

A Berlin think tank, the Öko-Institut, conducted a  review of the validation process on behalf of World Wildlife Fund International and concluded that none of the top five validations scored higher than a D in an A-to-F grading scale.

Mark Shapiro met with Mark Trexler, the director of Climate Strategies and Markets for DNV (one of the two main companies in the carbon offset-verification business), who said that the reality is that everyone- emitting businesses, carbon-project developers, entrepreneurs in the developing world, and governments-has a vested interest in validating as many projects as possible.

The Cooler Heads Digest is the weekly e-mail publication of the Cooler Heads Coalition. For the latest news and commentary check out the Coalition’s website, www.globalwarming.org.