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“California is experiencing the fastest rate of of companies relocating to out-of-state or out-of-country locations since a specialized tracking system was put into place two years ago,” reports business relocation coach Joseph Vranich. Seventy companies completely or partly moved their operations out of California since Jan. 1, 2011 for reasons other than business expansion. 

Vranich says the 70 “disinvestment events” understate the exodus of capital and jobs from California: “It’s estimated that only one out of five losses becomes public knowledge, if that.”

Why are companies leaving the Golden State? As you might expect, California’s out-of-control spending, high taxes, and burdensome regulations figure among the top 10 reasons. Vranich, however, recently added high energy costs to the list:

The #10 Reason (New!) – Unprecedented Energy Costs: The California Manufacturers and Technology Association states that commercial electrical rates here already are 50% higher than in the rest of the country. However, a law enacted in April 12, 2011 requires utilities to get one-third of their power from renewable sources (e.g., solar panels, windmills) within nine years. Look for costs to increase by another 19% in many places to a whopping 74% in Los Angeles. Such new burdens along with upcoming regulations stemming from the “California Global Warming Solutions Act” set potentially overwhelming obstacles to companies here as they try to meet competition based in other states and in foreign nations.

 For many years, California Democrats — notably Rep. Henry Waxman and Sen. Barbara Boxer — have been at the forefront of congressional efforts to enact cap-and-tax and promote EPA’s greenhouse power grab. Waxman and Boxer have worked tirelessly to export California’s energy (or anti-energy) policies to the rest of the nation. They continue to push the “California model” as the path to a “clean energy future.” Vranich’s report is a sobering reminder of how foolish it would be for the nation to take their advice.

On April 6, 2011, 50 Senators voted for S. 482, the Energy Tax Prevention Act, a bill to stop EPA from ‘legislating’ climate policy under the guise of implementing the Clean Air Act. Supporters needed 60 votes to pass the bill. “Senate Definitively Beats Back Efforts to Restrict EPA Climate Rules,” declared the title of Inside EPA’s column (April 8, 2011) on the vote. That is spin masquerading as news.

Let’s review some not-so-ancient history. In 2003, Sens. John McCain (R-Ariz.) and Joe Lieberman (D-Conn.) introduced S. 139, the Climate Stewardship Act, a carbon cap-and-trade bill. It was defeated by a vote of 43-55. In 2005, McCain and Lieberman introduced a revised version, S. 1151, the Climate Stewardship and Innovation Act. It went down in flames by a bigger margin: 38-60. In 2007, McLieberman introduced yet another iteration (S. 280), which never even made it to the floor for a vote.

In three different Congresses, the McLieberman bill died in the Senate. After these continual defeats, did Inside EPA, the bill’s sponsors, or any environmental group declare that the Senate “definitively” rejected cap-and-trade?

Of course not. Yet S. 482 garnered more votes than any cap-and-trade bill the Senate has ever debated. Sponsors of S. 482 say they will press for other opportunities to hold additional votes. The day after the Senate vote, the House passed an identical measure (H.R. 910) by a vote of 255-172, a large victory margin that should improve prospects for eventual passage in the Senate. 

Another vote could occur as early as next month when Congress debates whether to raise the national debt ceiling. House Speaker John Boehner (R-Ohio) suggested last week that legislation to raise the debt ceiling — a key priority for Team Obama and Senate Majority Leader Harry Reed (D-Nev.) — might have to include curbs on EPA’s regulatory authority (The Hill, April 16, 2011). 

Since reports of S. 482’s demise are greatly exaggerated, it is useful to examine the tactics of leading Senate opponents. Previous posts review California Sen. Barbara Boxer’s tirade against S. 482 and Montana Sen. Max Baucus’s alternative legislation to codify EPA’s ever-growing ensemble of greenhouse gas (GHG) regulations. Today’s post offers a running commentary on New Jersey Sen. Frank Lautenberg’s floor statement opposing S. 482 (Congressional Record, April 6, 2011, pp. S2170-71). If Lautenberg’s rant is the best opponents can do, they have “definitively” lost the debate. [click to continue…]

Post image for This Week in the Congress

House Committee Acts To Stop President’s de facto Drilling Moratorium

The House Natural Resources Committee marked up three bills on Wednesday that would require the Obama Administration to stop its obstructive tactics and start producing more oil and natural gas from federal Outer Continental Shelf areas.  Committee Democrats dragged out the mark-up for nine hours by offering and insisting on recorded votes on a series of amendments to weaken or gut the three bills—H. R. 1229, 1230, and 1231.  None of their amendments was adopted.

It is expected that the House will pass all three bills in May.  Committee Chairman Doc Hastings (R-Wash.) plans to introduce additional bills in the next few months to increase domestic oil and gas production on federal lands in Alaska and the Rocky Mountains as part of House Republicans’ American Energy Initiative.

House Leadership Tacitly Endorses Excellent EPA Strategy

Environment and Energy News reported this week that House Speaker John Boehner (R-Ohio) did not rule out attaching something like the Energy Tax Prevention Act (H. R. 910) to the bill to raise the federal debt ceiling.  H. R. 910 would block the Environmental Protection Agency from using the Clean Air Act to regulate greenhouse gas emissions.  It passed the House last week on a 255 to 172 vote, but failed as an amendment in the Senate on a 50 to 50 vote.

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Post image for Reviews of the Cornell Natural Gas Study

As was widely reported this week,  a new study has just come out concluding that, compared to coal, shale gas fracking is anywhere from just as bad to much worse in terms of greenhouse gas emissions. Despite the holy-grail of peer-revision, there appear to be some very obvious methodological problems and reliance on very poor data (which the researchers have admitted, and wish they had access to better information).

Here is a piece of a review from Matt Ridley, entitled “Black Propaganda.” (Read the whole thing):

So, in other words, shale gas has greater global warming potential than coal only if you rely on lousy data, misunderstood accounting categories, quadrupled assumptions about methane’s relative greenhouse potential — and then only in the short term, when people like Black are always telling us it is the long term we should worry about.

A review from Michael Levi of CFR (again, the whole thing is worth reading):

First, the data for leakage from well completions and pipelines, which is where he’s finding most of his methane leaks, is really bad. Howarth used what he could get – figures for well completion leakage from a few isolated cases reported in industry magazines, and numbers for pipeline leakage from long-distance pipelines in Russia – but what he could get was very thin. There is simply no way to know (without access to much more data) if the numbers he uses are at all representative of reality.

Second, Howarth’s gas-to-coal comparisons are all done on a per energy unit basis. That means that he compares the amount of emissions involved in producing a gigajoule of coal with the amount involved in producing a gigajoule of gas. (Don’t worry if you don’t know what a gigajoule is – it doesn’t really matter.) Here’s the thing: modern gas power generation technology is a lot more efficient than modern coal generation, so a gigajoule of gas produces a lot more electricity than a gigajoule of coal. The per kWh comparison is the correct one, but Howarth doesn’t do it. This is an unforgivable methodological flaw; correcting for it strongly tilts Howarth’s calculations back toward gas, even if you accept everything else he says.

One last comment: I worry about what this paper says about the peer review process and the way the press treats it. This article was published in a peer-reviewed journal that’s edited by talented academics. It presumably got a couple good reviews, since its time from submission to publication was quite short. These reviewers don’t appear to have been on the ball. Alas, this sort of thing is inevitable in academic publishing. It’s a useful caution, though, against treating peer review as a mark of infallibility, as too many in the climate debate – both media and advocates – have done.

The weak data and unorthodox methodology should make one question its ultimate conclusion, and it doesn’t help that the author is apparently an anti-fracking advocate. The EPA has already called this study an “important piece of information” and it has been reported on without mentioning the critiques in a number of media outlets (and here). Some outlets were better:

Mark D. Whitley, a senior vice president for engineering and technology with Range Resources, a gas drilling company with operations in several regions of the country, said the losses suggested by Mr. Howarth’s study were simply too high.

“These are huge numbers,” he said. “That the industry would let what amounts to trillions of cubic feet of gas get away from us doesn’t make any sense. That’s not the business that we’re in.”

Most business models don’t include plans to allow billions of dollars of your product to escape into the atmosphere.

 

 

Post image for An Assault on Coal Exports

Not content with destroying coal in the United States, there are ongoing assaults on allowing U.S. companies to export coal. It’s one thing to destroy coal in favor of more expensive energy in an advanced economy where consumers have more disposable income to absorb the blow of rising energy costs, but to deny developing countries access to electricity is an absurd form of “liberalism.” See a recent GW.org post on similar plans at the World Bank to discontinue funding coal-fired power plants.

China and other developing countries might be flirting with solar panels and windmills (mostly to sell them to the United States), but these renewables aren’t going to actually power any significant portion of their ever growing demand for energy anytime soon. And remember, despite the fact that you might want to protect the environment, you might not feel that way if you’ve never driven a car or turned on a light switch. As this report notes:

China, on the other hand, has emerged as a leader in developing clean, renewable energy, but its demand for coal is still staggering, and growing, and China is predicted to build 2,200 new coal-fired electric plants by 2030.

The report is full of suspicious economic analysis, like the idea that shutting down coal exports (economic activity) can somehow help our country reach long term prosperity because the funds could be used for investments to focus on diversifying our economy, whatever that means. Ending coal exports would somehow help our economy’s diversification. Note that coal exports would also help lower the trade deficit, which groups like CAP seem worried about.

It’s not completely clear to me that the port being used for exports is being subsidized by any governmental bodies (hopefully its not), but they don’t specifically mention any subsidies, so I suspect its mostly being completed with private sector money. Perhaps the authors think our omniscient government should confiscate those private dollars and pick their own pet project instead.

Finally, we get to the real question:

Though Washington state officials are considering the effects of climate-change-causing emissions stemming from shipping the coal across the western United States, there are no legal requirements to consider the carbon pollution from burning the coal half a world away.

Can we also control the climate policies of other sovereign nations? Liberals have proudly discussed the possibility of a carbon tax on imports from countries that have not adopted emission reductions strategies, but they have yet to publicly propose an export ban or tariff on coal. Perhaps its in the pipeline.

Finally, from a Washington-state based blog:

Certainly not least among our concerns should be the moral decision of whether to feed the growing coal addictions of other countries even as we combat climate change by gradually eliminating large-scale sources of carbon dioxide emissions in the U.S

Breathe easy, Seattle. Coal exports will certainly be helping some of the 1.4 billion people on this earth who don’t have access to any electricity at all.

Post image for More on Energy Department’s Awful Green Bank

Yesterday, I participated on a panel discussion about the Department of Energy’s Loan Guarantee Program for low carbon energy sources. I’ve long been a fierce opponent of the DOE’s green bank—see here, here, here, and here for my take.

In a nutshell, I argue that investment banking is well outside the core competency of Energy Department bureaucrats, so there is no reason to believe that they could start a successful green bank from scratch. Even if they could, political concerns would trump economic reasoning, such that loan authorizations would get funneled to the well-connected, instead of the deserving.

Regarding this last point, consider this recent report by the Center for Public Integrity and ABC News, on the remarkable correlation between the success of DOE Loan Guarantee applications and the amount of money that the applicant raised for Barack Obama’s campaign for the White House.

In addition to the panel, we also organized a coalition letter to the House Appropriations Committee, on the need to excise the DOE’s green bank from the budget. Signatories included CEI, Taxpayers for Common Sense, George Marshall Institute, National Taxpayers Union, and the Nonproliferation Policy Education Center. Click here for a copy of the letter.

Post image for Video: Climate of Corruption

On Friday, April 8, in the Longworth House of Representatives office building, the Cooler Heads Coalition hosted Professor Larry Bell, author of “Climate of Corruption: Politics and Power behind  the Global Warming Hoax,” for a Congressional briefing on his new book.

Video of Professor Bell’s excellent presentation is available here.

For a Washington Times review of Climate of Corruption by climate scientist Anthony J. Sadar, click here.

Some Comments about Larry Bell’s book:

“Larry Bell has cut through the heavily funded bad science of global warming advocates, the outrageous claims of politicians and scare threats from extreme environmentalists to explain the truth about Earth’s climate and the man-made and natural forces that change it … [H]e has done an amazing job of sorting it out and putting it in proper perspective.”

—John Coleman, meteorologist and founder of The Weather Channel

“Larry Bell connects the dots between indisputable scientific frauds, carbon regulation and marketing scams, and bogus green energy charades. He makes a convincing case that alarmist climate crisis rhetoric is far more political than scientific.”

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Post image for Senate Committee Passes Energy Efficiency Standards

Today the Senate Energy and Natural Resources Committee marked up and approved S. 398, a bill that establishes new efficiency standards for a variety of consumer products: air conditioners, refrigerators, freezers, washers, dryers, outdoor drinking water dispensers, dishwashers, and a number of other appliances. You can certainly trust Congress to micromanage the optimal amount of energy used by hundred’s of complex small appliances across different industries.

This bill saw national media coverage earlier this year when Senator Rand Paul ranted about efficiency standards that have effected toilets and will soon effect light bulbs. It’s infuriating that energy bureaucrats can claim that they are in favor of allowing consumers to choose whichever bulb they want, when they are setting bulb efficiency standards that will ban the traditional incandescent bulb. At least be honest about your desire to restrict the choices of consumer and our freedoms.

Politico covered today’s hearing and Paul was unsurprisingly one of the few dissenters. This time Senator Paul offered an amendment that would make the energy efficiency standards voluntary, which failed 16-6 in committee. Here is a short video from Paul’s office covering the hearing.

Consumers should be wary when business gets together and supports these types of standards, though the environmentalists often use this as evidence that only ‘crazies’ oppose such bipartisan, “sensible” legislation. These regulations will increase the cost of these appliances (and the profitability of them), create new competition-crushing barriers to entry, and often bring unexpected consequences (and here). Recall that a number of oil and energy companies supported the Waxman-Markey bill after it went through the Congressional pork factory.

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If Reps. Henry Waxman (D-Calif.) and Ed Markey (D-Mass.) in the House, or Sens.  Barbara Boxer (D-Calif.) and Harry Reed (D-Nev.) in the Senate, were to introduce legislation authorizing EPA to use the Clean Air Act (CAA) as it sees fit to regulate greenhouse gases (GHGs), would the bill have any chance of passing in either chamber of Congress?

No. Aside from a few diehard global warming zealots, hardly any Member of Congress would vote for such a bill. Most lawmakers would run from such legislation even faster than the Senate last year ditched cap-and-trade after its outing as a hidden tax on energy. 

Now consider what that implies. If even today, after nearly two decades of global warming advocacy by the United Nations, eco-pressure groups, ‘progressive’ politicians, left-leaning media, corporate rent-seekers, and celebrity activists, Congress would not pass a bill authorizing EPA to regulate GHGs, then isn’t it patently ridiculous for EPA and its apologists to claim that when Congress enacted the CAA in 1970 — years before global warming was a gleam in Al Gore’s eye — it gave EPA that very power?

These simple questions cut through the fog of sophistry emitted by the likes of Waxman, Markey, and Boxer to defend EPA’s hijacking of legislative power. As I have explained elsewhere in detail (here, herehere, and here), EPA, under the aegis of the Supreme Court’s poorly-reasoned, agenda-driven decision in Massachusetts v. EPA, is using the CAA in ways Congress never intended and never subsequently approved. EPA is defying the separation of powers. It should be stopped. [click to continue…]

♫ Well my dog died just yesterday and left me all alone.
The finance company dropped by today and repossessed my home.
That’s just a drop in the bucket compared to losing you,
And I’m down to seeds and stems again, too.
Got the Down to Seeds and Stems again Blues. ♫

Commander Cody’s lament, poignantly twanged by Telemaster Bill Kirchen, harks back to a bygone era, before medical marijuana and the electrification of indoor victory gardens. Things are different now. Tea leaves are harvested in abundance.

But potheads, or at least those who worry about the “climate crisis,” may still need to sing the blues. A new study by Evan Mills of the Lawrence Berkeley National Laboratory finds that indoor Cannabis production has a very large carbon footprint. If you’re too far gone to read the study, man, then, like, just look at the picture:

Reporter Colin Sullivan summarizes the study, titled “Energy Up in Smoke,” in yesterday’s E&E News (subscription required): [click to continue…]