greenhouse gases

The Environmental Protection Agency sprang two surprises last week. First, EPA asked a federal judge to allow them to delay issuing the boiler MACT (Maximum Available Control Technology) rule until April 2012, which would give EPA time to reconsider and rewrite the proposed regulation.  The rule is designed to cut air pollution from approximately 200,000 industrial boilers, process heaters, solid waste incinerators, etc.  Industrial users of boilers have made a good case that the proposed standards were going to be impossible to meet in many cases.

Next, EPA announced that the ozone or smog rule would be delayed until July 2011, while it reconsidered the scientific and health studies on smog’s effects.  The announcement suggests that EPA has bowed to intense opposition from Congress, state and local governments, and industry and is now going to re-write the smog rule so that it is less economically catastrophic.  EPA nonetheless is going ahead with regulating greenhouse gas emissions from major stationary sources on January 1, 2011.  There is little reason to think that those regulations are any less damaging than the smog rule.

The EPA also announced last week that it was holding its second National Bed Bug Summit meeting in early February. You may laugh, but at least with bed bugs EPA is addressing a real environmental health problem.

A global food crisis is “forecast as prices reach record highs [1].”  “Rising food prices and shortages could cause instability in many countries as the cost of staple foods and vegetables reached their highest levels in two years.”  “Global wheat and maize prices recently jumped nearly 30% in a few weeks while meat prices are at 20-year highs.” “Meanwhile, the price of tomatoes in Egypt, garlic in China and bread in Pakistan are at near-record levels.”

Drought is one factor in the price spikes.  Biofuels and ethanol subsidies and mandates are another major factor.  According to the UN, “large-scale land acquisitions by foreign investors for biofuels is squeezing land suitable for agriculture [1].”

Ethanol subsidies have resulted in forests being destroyed [2] in the Third World, and caused famines [3] that have killed [4] countless people in the world’s poorest countries [4].

These subsidies are expanded in the global warming legislation backed by the Obama administration.  Its ethanol subsidies will result [5] in “damage to water supplies, soil health and air quality.”  The Washington Examiner earlier explained how the global warming bill backed by President Obama would cause deforestation by expanding ethanol subsidies, and thus increase greenhouse gas emissions [6] in the long run.   It was larded up with corporate welfare: 85 percent [7] of its carbon allowances were given away to special interests free of charge, thanks to lobbying that turned the bill into an orgy of corporate welfare.

Earlier, Ron Bailey wrote in Reason magazine about the “global food crisis” that has resulted in food riots across the world [8], in countries like Mexico, Pakistan, Indonesia, Yemen, Haiti, and Egypt.   The crisis, he notes, is caused by “stupid energy policies” in the form of ethanol “mandates” and subsidies, which result in the world’s breadbaskets producing less food and more ethanol.

In 2008, two prominent environmentalists, Lester Pearson and Jonathan Lewis, published a Washington Post editorial, “Ethanol’s Failed Promise [9],” which explained how ethanol subsidies and mandates are destroying the environment and fueling hunger and violence worldwide [9].

Turning one-fourth of our corn into fuel is affecting global food prices. U.S. food prices are rising at twice the rate of inflation, hitting the pocketbooks of lower-income Americans and people living on fixed incomes. … Deadly food riots have broken out in dozens of nations in the past few months, most recently in Haiti and Egypt. World Bank President Robert Zoellick warns of a global food emergency.

Moreover, they noted,

food-to-fuel mandates are leading to increased environmental damage. First, producing ethanol requires huge amounts of energy – most of which comes from coal. Second, the production process creates a number of hazardous byproducts, and some production facilities are reportedly dumping these in local water sources.  Third, food-to-fuel mandates are helping drive up the price of agricultural staples, leading to significant changes in land use with major environmental harm. Here in the United States, farmers are pulling land out of the federal conservation program, threatening fragile habitats. … Most troubling, though, is that the higher food prices caused in large part by food-to-fuel mandates create incentives for global deforestation, including in the Amazon basin. As Time Magazine reported [10] this month, huge swaths of forest are being cleared for agricultural development. The result is devastating: We lose an ecological treasure and critical habitat for endangered species, as well as the world’s largest ‘carbon sink.’ And when the forests are cleared and the land plowed for farming, the carbon that had been sequestered in the plants and soil is released. Princeton scholar Tim Searchinger has modeled this impact and reports [11] in Science magazine that the net impact of the food-to-fuel push will be an increase in global carbon emissions – and thus a catalyst for climate change.

In Human Events, Deroy Murdock explained how rising food prices resulting from ethanol forced Haitians to literally eat dirt [12] (dirt cookies made of vegetable oil, salt, and dirt), caused tortilla riots in Mexico, and fueled violent protests in unstable “powder kegs” like Pakistan and Egypt.

In 2008, finance ministers and central bankers called for end to ethanol subsidies and biofuel mandates [13]. South African finance minister Trevor Manuel called such subsidies “criminal [14].” Earlier, the Indian Finance Minister Chidambaram noted that [14] “in a world where there is hunger and poverty, there is no policy justification for diverting food crops towards bio-fuels. Converting food into fuel is neither good policy for the poor nor for the environment.”

The EPA is now ratcheting up [15] ethanol use, heedless of the fact that ethanol makes gasoline costlier and dirtier [16], increases ozone pollution [17], and increases the death toll from smog [18] and air pollution.  Ethanol production also results in deforestation, soil erosion, and water pollution [19].


This afternoon I attended an informative panel, “Saving the Polar Bear or Obama’s CO2 Agenda?,” on how the Endangered Species Act is easily manipulated by environmentalist lawyers intent on gumming up economic activity. The panel was videotaped, so you can see it for yourself at the Heritage Foundation’s website. If, however, you don’t have an hour, then here are the highlights:

  • Robert Gordon of the Heritage Foundation cited the Iowa Pleistocene snail. Seemingly, the snail is a smashing success story. It was listed as an endangered species in 1978, and after implementing protections, the snail recovered. Indeed, it far-exceeded the criteria first set out to de-list. Nonetheless, the Obama administration upgraded its peril. Why? Because, the Obama administration says, the snail is threatened “in the long term” by global warming! This example supported Mr. Gordon’s conclusion, that the Endangered Species Act is a “tool for those that wish to constrict economic activity.”
  • The Competitive Enterprise Institute’s R.J. Smith questioned which section of the Constitution authorizes the government to favor animals and insects over humans. He joked that the 3rd amendment prohibits the government from forcing Americans to quarter soldiers, yet the Endangered Species Act can force Americans to give quarter to snails.
  • I asked Reed Hopper of the Pacific Legal Foundation to flesh out the regulatory consequences of listing the polar bear as an endangered species due to climate change, and his response was sobering. According to Mr. Hopper, a citizen suit provision of the Endangered Species Act means that anyone could sue anyone for harming the polar bear by emitting greenhouse gases. He said it would be “unprecedented.”

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.

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.