Post image for Posting: Little-Known Documents Pertinent to Assessing the Legality of EPA’s Clean Energy Incentive Program

The public comment period for EPA’s proposed rule titled Clean Energy Incentive Program Design Details closes on September 2, 2016. I intend to submit comments on behalf of the Competitive Enterprise Institute and other free-market groups. We will argue that EPA has once again exceeded its statutory authority. The gist of the argument is available here and here.

Among other evidence, we will cite regulatory comments that no longer exist on agency Web sites. To ensure those sources have active links, I post several below. But first some background. [click to continue…]

Post image for Kyoto-Financed Cook Stoves Fail as Health/Climate “Intervention”

Researchers from Canada, the United States, and India measured the indoor air quality impacts of providing modern “clean cook stoves” to families in southern India. The Kyoto Protocol’s Clean Development Mechanism (CDM) subsidizes the distribution of such devices.

The effectiveness (or lack thereof) of CDM-supported cook stoves to reduce indoor air pollution is a big deal. As the researchers explain:

Burning solid fuel (wood, dung, agricultural residues, and coal) in traditional stoves for cooking and heating negatively affects the health and welfare of nearly 3 billion people, mostly in low and middle-income countries. Household air pollution (HAP) emitted from solid fuel combustion contributed to an estimated 2.9 million premature deaths and 81.1 million disability adjusted life-years in 2013.

The researchers examined indoor air pollution concentrations and fuel use in 187 households in a village in Karnataka, India. About half the households received “clean” stoves, and half–the control group–did not.

Clean Cook Stoves

 

 

 

The study, published in Environmental Science & Technology, is paywall protected. The online journal Phys.Org accurately summarizes the results: “Actual indoor concentrations measured in the field were only moderately lower for the new stoves than for traditional stoves.”

Part of the reason was that “40 percent of families who used a more efficient wood stove as part of the intervention also elected to continue using traditional stoves, which they preferred for making staple dishes such as roti bread. That duplication erased many of the hoped-for efficiency and pollution improvements.” Those households “stacked” new and old stoves instead of replacing the old with the new. See the image at the top right corner of the page.

The climate benefit of the CDM-financed “intervention” was also nil. As Phys.Org reports:

Laboratory studies suggested that the more efficient, cleaner-burning stoves could reduce a family’s fuelwood consumption by up to 67 percent, thereby reducing household air pollution and deforestation. In practice, there was no statistically significant difference in fuel consumption between families who used the new stoves and families who continued to cook over open fires or traditional stoves.

Moreover, the “clean” cook stoves actually “increased the proportion” of household emissions composed of black carbon, a strong warming agent that darkens and melts Arctic ice.

black-carbon-ice-melt-c

 

 

 

 

 

[click to continue…]

Post image for CEQ Finalizes NEPA Guidance for Greenhouse Gases: Will Pointless Keystone XL Controversy Become ‘New Normal’?

The White House Council on Environmental Quality (CEQ) today released its final guidance on how federal agencies should consider climate change effects in National Environmental Policy Act (NEPA) reviews of their proposed actions.

NEPA is the landmark 1969 statute requiring federal agencies to consider the environmental impacts of “any major project—federal, state, or local—that involves federal funding, work performed by the federal government, or permits issued by a federal agency.”

This being the Age of Global Warming, when all things are to be measured by their carbon footprints and all policies judged by their conformity to the climate agenda, the Obama administration’s push to elevate climate concerns in NEPA reviews was a foregone conclusion.

CEQ’s fact sheet claims the final guidance “provides a level of predictability and certainty by outlining how Federal agencies can describe these impacts by quantifying greenhouse gas emissions when conducting NEPA reviews.” On the contrary, the NEPA process already empowers NIMBY (not-in-my-backyard) and anti-energy activists to delay and block development projects with immense economic benefits and immeasurably small, hypothetical climate effects. The guidance will increase the role of climate politics, with all their irrationality and rancor, in NEPA reviews. [click to continue…]

The Democratic Party officially adopted their 2016 platform at their national convention in Philadelphia on July 25th. The energy and environment section is titled “Combat Climate Change, Build a Clean Energy Economy, and Secure Environmental Justice.” It begins with this statement: “Climate change is an urgent threat and the defining challenge of our time.”

The challenge doesn’t actually seem to be much of a challenge, because the platform claims that tackling it by producing “50 percent of our electricity from clean energy sources within a decade, with half a billion solar panels installed within four years and enough renewable energy to power every home in the country” will create “millions of good-paying middle class jobs” and “save families and businesses money on their energy bills.”

“Democrats believe that carbon dioxide, methane, and other greenhouse gases should be priced to reflect their negative externalities, and to accelerate the transition to a clean energy economy and help meet our climate goals.” However, putting a price on emissions does not mean a carbon tax, which is not mentioned, although the platform does say that they “support using every tool available to reduce emissions now.” These steps include the so-called Clean Power Plan, fuel efficiency standards for automobiles and heavy-duty trucks, and higher energy efficiency standards in building codes and appliances.

As for environmental justice, Democrats “will work to expand access to cost-saving renewable energy by low-income households, create good-paying jobs in communities that have struggled with energy poverty, and oppose efforts by utilities to limit consumer choice or slow clean energy deployment.”

Although renewable energy apparently saves us money, “Democrats believe the tax code must reflect our commitment to a clean energy future by eliminating special tax breaks and subsidies for fossil fuel companies as well as defending and extending tax incentives for energy efficiency and clean energy.”

Democrats vow to prohibit oil production in the Arctic and off the Atlantic coast and to “phase down extraction of fossil fuels from our public lands,” while working “to expand the amount of renewable energy production on federal lands and waters.”

The platform pointedly mentions twice that Republican presidential nominee Donald Trump has called climate change a “hoax.” Trump has also promised to stop funding the UN Framework Convention on Climate Change and withdraw the U.S. from the Paris Climate Treaty. Democrats, on the other hand, “are committed to a national mobilization, and to leading a global effort to mobilize nations to address this threat on a scale not seen since World War II.” Mobilization will begin in the first 100 days of the next administration when “the President will convene a summit of the world’s best engineers, climate scientists, policy experts, activists, and indigenous communities to chart a course to solve the climate crisis.”

In addition to supporting corporate disclosure of climate risk, “Democrats also respectfully request the Department of Justice to investigate allegations of corporate fraud on the part of fossil fuel companies accused of misleading shareholders and the public on the scientific reality of climate change.”

Compare and contrast this line in a speech at the Democratic National Convention last night:

“Democrats don’t alienate, isolate, exclude or demonize; and we don’t manufacture fear.”   —California Senate President Pro Tem Kevin De Leon, in a speech at the Democratic National Convention, 25th July 2016, https://www.youtube.com/watch?v=qKhNWIPmfcM

With a few quotes from the “Web of Denial” speeches by Senate Democrats on the Senate floor two weeks ago:

“Welcome to the web of denial. Thank you to those who are working to expose it. It is a filthy thing in our democracy.”  —Senator Sheldon Whitehouse (D-RI), in a speech on the Senate floor, 11th July 2016, Congressional Record, page S4952

“These front groups are paid to spin a web of denial wrapped in ideology with the aim of purposely deceiving the public about the dangers of climate change.”   —Senator Jeanne Shaheen (D-NH), in a speech on the Senate floor, 12th July 2016, Congressional Record, page S4987

“So it seems that while CEI has changed its client, it is still in the exact same business of selling lies and selling out the health and the future of ordinary Americans.”  —Senator Jeanne Shaheen, 12th July, Congressional Record, page S4989

“But this past May, William Happer was a signatory on a misleading, full-page ad in the New York Times.  The ad, placed by another thread in the web of deceit, the Competitive Enterprise Institute, attacked the reasonable efforts of New York attorney general Eric Schneiderman and a coalition of other attorneys general united for clean power who are investigating more than 100 businesses, nonprofits, and private individuals to see if they misled the public about climate change.”  —Senator Edward Markey (D-Mass.), in speech on the Senate Floor, 12th July 2016, Congressional Record, page S5012

 

The Republican National Convention on 18th July officially adopted their 2016 party platform.  Senator John Barrasso (R-Wyo.) chaired the platform committee; and the co-chairs were Oklahoma Governor Mary Fallin and Representative Virginia Foxx (R-NC).

Notably, the GOP platform states that the Paris Climate Treaty cannot bind the United States unless it is ratified by the Senate.  The party also demands immediate defunding of the UN Framework Convention on Climate Change in accordance with Public Law 103-236.  It opposes a carbon tax and subsidies for politically-favored types of energy.

On regulations, the platform says Republicans will prohibit EPA from regulating carbon dioxide and repeal the “Clean Power” Plan.  It also vows to block the hydraulic fracturing rules, end the misuse of the Endangered Species Act to stop resource production, and reform the National Environmental Policy Act permitting process.

Perhaps most interestingly, the Republican Party now officially supports dismantling the Environmental Protection Agency: “We propose to shift responsibility for environmental regulation to the states and to transform the EPA into an independent bipartisan commission, similar to the Nuclear Regulatory Commission, with structural safeguards against politicized science.”  In addition: “ We will strictly limit congressional delegation of rule-making authority, and require that citizens be compensated for regulatory takings.”

On energy production, the platform contrasts its support for more domestic production of all types of energy (that don’t require subsidies) with the Democrats’ call to “keep it in the ground.”  It states that the “Democratic Party’s campaign to smother the U. S. energy industry takes many forms, but the permitting process may be its most dangerous weapon.”  Permitting delays for oil and gas production on federal lands are cited as the prime example.

Further in regard to federal lands, for the first time, the Republican Party supports transferring federal lands (which comprise over 640 million acres or nearly 30% of the country) to the states.

The Philippine Daily Inquirer reported that President Rodrigo Duterte announced on 18th July that the Philippines would not ratify the Paris Climate Treaty.  According to the story by Marlon Ramos, “the president said a foreign ambassador recently reminded him of the country’s commitment to limit its carbon emissions.”  Duterte continued that he was angry and wanted to kick the ambassador.

President Duterte explained why: “We have not reached the age of industrialization. We’re now going into it. But you are trying to stymie [our growth] with an agreement that says you can only go up to here.  That’s stupid. I will not honor that.”

He continued: “Now that we’re developing, you will impose a limit?  That’s absurd.  That’s how very competitive and constricted our lives [are] now.  It’s being controlled by the world, it’s being imposed upon us by the industrialized countries. They think that they can dictate the destiny of the rest of the [world].”

The Philippines’ Nationally Determined Contribution to the Paris Treaty is to reduce emissions by up to 70% by 2030.  That commitment was made by the previous administration, which also approved building 29 new coal-fired power plants over the next decade.  Duterte was elected president on 9th May 2016 by an overwhelming majority and took office on 30th June.

Fifteen Republican state attorneys general led by West Virginia AG Patrick Morrisey sent a letter to House and Senate leadership on 11th July that calls on Congress to eliminate “burdensome and illegal regulations by strengthening the Administrative Procedure Act (APA).”  The letter received very little attention in the press when it was sent, but on 19th July there was an article in the West Virginia Record and another by Michael Bastasch in the Daily Caller.

The first paragraph summarizes the AG’s objections to federal regulatory overreach:

“As the chief legal officers of our States, we are concerned about the mounting costs that unlawful federal regulations—advanced in violation of the Administrative Procedure Act—impose on citizens, businesses, and state and local governments.  With seemingly increasing frequency, federal agencies are: (1) issuing guidance documents as a way to circumvent the notice and comment process; (2) regulating without statutory authority; (3) failing to consider regulatory costs; and (4) failing to fully consider the effect of their regulations on States and state law.”

The letter continues with a summary of their request:

“We are encouraged that the U. S. House of Representatives and the U. S. Senate recently have considered legislation directed toward resolving some of these concerns.  We write today to urge Congress to go further and take concrete action to ensure that federal agencies are in fact providing opportunity for notice and comment for all binding agency requirements, acting within their delegated authority, and always rigorously assessing the costs of their regulations.”

The letter notes that guidance documents, interpretive rules, and policy statements are not subject to the APA because in theory they are not binding.  But in practice, many of these quasi-rules are binding.  Wayne Crews, my CEI colleague, wrote a significant study, Mapping Washington’s Lawlessness, published last December that catalogues the extent of these binding non-rules.  And here is a recent interview with Wayne on what he has named “regulatory dark matter.”

By Jennifer Montazzoli

Representative Louie Gohmert (R-Tex.), chairman of the House Natural Resources oversight and investigations subcommittee, charged in a hearing on 14th June that the Ivanpah solar facility in California’s Mojave Desert has received special treatment from the government.  While Gohmert and others at the hearing pointed out legal and financial disparities, the witness from the Bureau of Land Management, Mike Nedd, Assistant Director of Energy, Minerals, and Realty Management, showed his lack of knowledge through his inability to answer most questions.

Chairman Gohmert pointed out that the Ivanpah plant was intended to create electricity from solar energy in order to replace natural gas plants and thereby reduce carbon dioxide emissions. But Dr. David Kreutzer of the Heritage Foundation in his testimony showed that a large percentage of the electricity produced by Ivanpah comes from supplemental burning of natural gas.  Kreutzer estimated that if the gas used at Ivanpah were instead used to run a combined-cycle gas plant, it would provide over 25% of the electricity being produced by Ivanpah.

Mr. Daniel Simmons of the Institute for Energy Research in his testimony stated that the owners of Ivanpah—Google, NRG Energy, and BrightSource Energy—have a market capitalization of over $500 billion and could easily have paid for the $2.2 billion project themselves.  Instead, $1.6 billion came from federal loan guarantees.  Thus the owners risked little of their own money, but stand to make huge profits.  PG&E is paying Ivanpah up to $200 per kilowatt hour, which is far above the national average for solar of $57 (which is higher than conventional sources).

Rep. Jody Hice (R-GA) asked Mr. Nedd whether BLM would have issued permits for the project if they were not aware of the federal loan guarantees. He hesitantly responded that he did not know the answer to the hypothetical question—even though it had everything to do with his department. Nevertheless, other companies that request funding from the Department of Energy must pay for their projects themselves if they have the ability to do so.

Rep. Raul Labrador (R-Colo.) pointed out that Exxon violated the migratory bird treaty act and paid a fine of $600,000 for 85 birds killed on its property. Meanwhile, 1,000 migratory birds have been killed at the Ivanpah facility and a fine was not charged. When asked why there were no consequences for the Ivanpah bird deaths, Nedd claimed he did not know enough about the program to talk about it and had no specifics. When asked if he knew why solar companies were getting preferential treatment, he brusquely responded, “I don’t know if they’re getting preferential treatment, so therefore I cannot respond to that.”

By Jennifer Montazzoli

EPA Administrator Gina McCarthy testified for over two hours at a House Science Committee hearing June 22 on Ensuring Sound Science at EPA. Not much has changed since the last hearing on this topic in July 2015.  The committee revisited the scientific unreliability of the EPA’s views of climate change, while McCarthy stuttered in response to the committee members’ demonstration of the facts.

Several members of the committee offered convincing evidence against the EPA’s claims, which often left Administrator McCarthy looking as foolish as the EPA’s scientifically unsupportable proposals. Throughout the intense questioning about climate change issues, the “Clean Power” Plan, and the Waters of the U.S. rule, McCarthy repeatedly stressed the importance of protecting the health of American children and the wellbeing of future generations.

After being questioned by Representative Ami Bera (D-Calif.) on the effects of climate on human health, McCarthy claimed that the EPA saves children from asthma and that EPA programs have reduced air pollution by 70%. Nevertheless, Rep. Ralph Abraham (R-La.) explained that while ozone levels may contribute to the occurrence of asthma, there are other factors that cause asthma including dust, mold, eggs, preservatives in foods, and pollen. He also noted that while ozone levels have gone down, asthma has continued to go up. Mr. Abraham cast serious doubt on McCarthy’s theory that reducing ozone levels will decrease childhood asthma. He finally asked McCarthy to be honest to families through accurately reporting what will cause and prevent asthma. Perhaps the EPA should do some scientific research before assuming their regulations will guarantee health improvement.

In response to McCarthy’s assertion that EPA regulations do not kill jobs, Rep. Gary Palmer (R-Ala.) showed a video in which several coal-mining families told their stories of what they suffered when the Obama administration’s war on coal destroyed their jobs. Losing your job poses major health risks for families.  Mr. Palmer also explained that higher utility bills as a result of the EPA’s rules means that “households are forced to make choices that carry serious health risks” such as foregoing medical and dental care.

Speaking to a much friendlier audience at the annual Energy Efficiency Forum in Washington, DC the next day, Administrator McCarthy returned to her claim that EPA rules do not cost jobs or harm the economy.  She said, “If someone’s making that old, tired argument that what’s good for the environment is bad for the economy, can you remind them that that’s so yesterday?”  Environment and Energy News PM reported that the audience reacted with laughter to her sarcastic question.