Hillary’s energy policies: enriching Wall Street cronies, while the poor are pawns in their political game
Commentary by Marita Noon
In his less-than-enthusiastic endorsement of Hillary Clinton as the Democrat’s choice for President, Sen. Bernie Sanders decried “Greed, recklessness, and illegal behavior” and declared that we couldn’t let “billionaires buy elections.” Perhaps his opposition research team discovered what we have about Clinton’s connections with the very entities he despises: Wall Street – which he’s accused of “gambling trillions in risky financial instruments;” and “huge financial institutions” that he says: “simply have too much economic and political power over this country.”
Wall Street and its “huge financial institutions” are Clinton allies – supporting both her campaign and donating big bucks to the Clinton Foundation.
In the batch of Democrat National Committee (DNC) emails WikiLeaks made public on July 23, DNC Research Associate Jeremy Berns tells his colleagues: “She [Clinton] doesn’t want the people knowing about her relationships on Wall Street.” He adds: “She wants to achieve consistency and the best way to do that is to keep the people ignorant.”
For the past four years, I’ve collaborated with citizen activist/researcher Christine Lakatos (she’s been at it for six years) on what we’ve called: President Obama’s green-energy crony-corruption scandal. Together we’ve produced the single largest body of work on the topic. In her blog, the Green Corruption Files, she posts her exhaustive research – what I affectionately refer to as the drink-from-the-fire-hydrant version. I, then, use her research to draft an overview that is appropriate for the casual reader.
More recently, our efforts have morphed to include the Democrats’ presidential nominee, as Lakatos found the same people are her “wealthy cronies,” too.
In Lakatos’ most-recent, and final Green Corruption File, released on July 19, she states: “While there are numerous ways you can ‘buy access to the Clintons,’ I’m only going to connect the dots to the Green Gangsters, which we’ve already established are rich political pals of President Obama, as well as other high-ranking Democrats and their allies, who were awarded hundreds of billions of ‘green’ taxpayer cash.”
Her lengthy report is “devoted to proving beyond a reasonable doubt that the Democrat presumptive presidential nominee, Hillary Rodham Clinton, is not on only in bed with Big Money (Wall Street, the Uber-Rich, special interests groups and lobbyists) and Dark Money (Super PACS and Secret Cash), she’s also bankrolled and is in cahoots with – directly and through her husband and her family foundation – the wealthy Green Gangsters, who are robbing U.S. taxpayers in order to ‘save the planet.’”
While the dozens of pages prove the involvement of names you know – like former vice president Al Gore, former Governor Bill Richardson, and billionaire donors Tom Steyer and Warren Buffett, and names you likely don’t know: David Crane, John Doerr, Pat Stryker, and Steve Westly – I’ve chosen to highlight the Clinton’s Wall Street connections that have benefited from the green deals that were cut in the Obama White House and that will continue on if Clinton wins.
Lakatos points out: “Clinton’s ‘ambitious renewable energy plans’ move far beyond Obama’s green mission that has been rife with crony capitalism, corporate welfare, and corruption.” Along with more climate rules, she “wants an open tab for green energy.” Remember the DNC’s official platform includes: “the goal of producing 100 percent of electricity from renewable sources by 2050″ and “a call for the Justice Department to investigate fossil fuel companies for misleading the public on climate change.”
Three Wall Street names of my limited-word-count focus are Goldman Sachs, Citigroup, and Bank of America. Each is a top-contributing Clinton campaign supporter and a Clinton Foundation donor. They have benefited from the hundreds of billions in taxpayers dollars given out for green energy projects through the Obama Administration. All three have expectations that Clinton will continue the green programs put in place by the Obama administration.
As Lakatos pointed out in previous reports, Goldman Sachs is connected, via various roles, to at least 14 companies and/or projects that won green taxpayer cash – a tab that exceeded $8.5 billion. One specific example: Goldman is credited as the “exclusive financial adviser” for the now bankrupt Solyndra ($570.4 million loss). Then there is now-bankrupt SunEdison – an early Goldman Sachs investment. SunEdison received $1.5 billion in federal and state subsidies. And, in 2010, Goldman Sachs handled the IPO of government winner, Tesla Motors that was awarded $465 million from the Department Of Energy (DOE) ATVM program – they got much more if you factor in the state and local subsides: $2,406,805,253 to be exact. Also, according to Goldman, “In May 2013, [they] helped raise over $1 billion in new financing for Tesla Motors.”
Citigroup/Citi Foundation – donated between $1 million to $5 million to the Clinton Foundation.
This big bank is connected to approximately $16 billion of taxpayer money. Lakatos, in 2013, reported that Citi was actively involved in securing the 1703/1705 DOE loans; was a direct investor; and/or served as an underwriter for the initial public offering (IPO) of at least 16 of Citi’s clients that received some form of government subsidies. One green company where Citi is a major investor is SolarCity, which has been subsidized through various stimulus funds, grants and federal tax breaks at the tune equaling almost $1.5 billion. Billionaire Elon Musk is CEO of Tesla and Chairman at SolarCity. He’s a Clinton Foundation donor ($25 million to $50 million) and Hillary supporter, too.
Bank of America/Bank of America Foundation – donated between $500,000 to $1 million to the Clinton Foundation.
Bank of America, amongst other green efforts, participated in Project Amp – a four-year, $2.6 billion project to place solar panels on rooftops in 28 states. At the time, the Wall Street Journal reported: “Bank of America Merrill Lynch unit will provide $1.4 billion in loans for the project,” of which “the financing is part of Bank of America’s plan to put $20 billion of capital to work in renewable energy, conservation and other clean technologies that address climate change.” In the final days of the DOE loan program (September 2011), the DOE awarded a partial guarantee of $1.4 billion loan to Project Amp. According to a press release, Bank of America increased its second environmental business initiative from $50 billion to $125 billion in low-carbon business by 2025 through lending, investing, capital raising, advisory services and developing financing solutions for clients around the world.
It’s important to remember that climate change – which is the foundation of the green agenda – is part of the Clinton Foundation’s mission statement: “In communities across the globe, our programs are proving that we can confront the debilitating effects of climate change in a way that makes sense for governments, businesses, and economies.” Additionally, the Foundation’s coffers were enriched when Clinton and her State Department staff solicited contributions from foreign governments to the Clinton Global Initiative, as we detailed in our coverage of her clean cookstove campaign.
In addition to Clinton’s obvious Wall Street connections, one of the many startling realizations that can be gleaned from the report on Hillary’s Horrendous Hypocrisy, is the fact that these companies – some of which would not be in existence without the grants and tax credits – that received millions in taxpayer dollars, took our money and gave it to the Clinton Foundation and to the Clinton Campaign. As was the case with Clinton Foundation donor/campaign fundraiser George Kaiser, these billionaires are making lucrative profits, at taxpayer expense, from bankrupted green companies like Solyndra.
In short, we, the taxpayers, are subsidizing the well-connected millionaires and billionaires – and Hillary Clinton is part of all of it. Meanwhile, she admonishes the average American to combat climate change by driving less and reducing our personal use of electricity.
Bernie Sanders was right to be alarmed. Huge financial institutions do have too much political power. Wall Street billionaires are trying to buy Clinton the White House. In return, she’ll be sure their green energy investments pay off for them by demanding that America go green.
The author of Energy Freedom, Marita Noon serves as the executive director for Energy Makes America Great Inc., and the companion educational organization, the Citizens’ Alliance for Responsible Energy (CARE). She hosts a weekly radio program: America’s Voice for Energy - which expands on the content of her weekly column. Follow her @EnergyRabbit.
It was awful tempting to jump on into that water, but several thousand people managed to sweat their way through another hot Tawes Crab and Clam Bake. While Republicans tend to have a little more presence in the area, some of the Tawes regulars were absent because the event coincided this year with the Republican National Convention in Cleveland.
That convention minted the GOP Presidential nominee, who seemed to be pretty popular.
That group of signs dwindled little by little, as Trump adorned a number of tents. On the other hand, there were far fewer Hillary signs – but the Democrats also had their crowded space.
Sarah Meyers (in the blue shirt) is a friend of mine, and she was tearing her hair out as the coordinator there because they overbooked the space. (You may see her at the Democratic Convention next week, as she will be there as a page.) By the same token, the Somerset Republicans only went with one tent as well and it was packed, too. So both parties had close quarters.
Yet the businesses seemed to have ample space. I didn’t peek into every tent, but many of them (as well as businesses lining State Route 413 into Crisfield) had a simple message: welcome Governor Hogan.
Even lobbyist Bruce Bereano, who always has the largest space, got into that act.
Yet among those businesses I did pick out I found an odd juxtaposition there, particularly under the auspices of the local economic development commission.
In order, these businesses are Cleanbay Renewables, which is a chicken waste recycling firm, Pinnacle Engineering, which services NASA, the Somers Cove Marina Commission, and Great Bay Solar I. The last is interesting because this project was originally supposed to be wind turbines, but objections to the siting of the turbine towers from the Navy forced the company to go solar, making lemonade out of lemons. With the exception of Pinnacle, the state has sort of forced the market for the other two businesses.
Yet on the other side was a law firm that objects to the approach the state is using to clean Chesapeake Bay through its Clean Chesapeake Coalition. They believe much of the problem comes from the sediment that leaches out from behind Conowingo Dam in severe storms.
I happen to think the CCC has a pretty good case.
Speaking of business, the food business did pretty well there. Almost too well.
According to my cell phone camera, which took all my photos today, I took that picture at 12:01 as I walked over to get in line for food. Here is the end result, 46 minutes and four lines later.
I actually asked for the onion rings as I inched closer to the front of the French fry line. And I certainly don’t fault the crew because they worked hard, even toward the end when I snapped this.
I think the issue is the increasing use of “runners” who get multiple orders of food and slow down the lines. It seemed like every third person in line was one, which meant those who just wanted to fend for themselves had to wait.
The guy who didn’t have to wait in line was Governor Larry Hogan, because I don’t think he ate a bite.
This is a second segment of time lapse. I took this photo above in the area where the food lines were at 1:57 p.m. Now, let me ask you: where’s Hogan?
He’s barely visible in the center of the photo, obscured by Delegate Charles Otto in the pinkish shirt. In 35 minutes he had advanced maybe 80 yards thanks to the crush of well-wishers who wanted to shake his hand, have a photo with him (although he suggested it in a number of cases) and perhaps say their piece. I was in the latter group as I wanted to thank him for his stance on the Presidential election. Larry commented that he had noticed the reception I’ve received on social media a couple times as it echoed a lot of what he had seen on his.
Stay strong, Governor.
The two major-party candidates for U.S. Senator were also there. Now I missed Democrat Chris Van Hollen – perhaps because I didn’t recognize him walking around – but I did get a glimpse of Kathy Szeliga from the GOP.
Of the people I saw and photographed, she was one of the few I didn’t speak to at least a little bit. I don’t blame her – our paths just didn’t cross but once.
Of course, a few locals managed to be in front of my camera, such as Delegate Mary Beth Carozza, who brought her family and a batch of others from Worcester County.
She was speaking to Duane Keenan from Red Maryland.
The other half of Worcester County must have come with Senator Jim Mathias, who had a number of folks with a matching shirt to his. He was a little peaked by the time I took the moment to thank him for his assistance with the school board election bill.
Yet while we had hot and cold running politicians there, we also had a lot of media asking questions. I noted Duane Keenan above, but here’s Ovetta Wiggins of the Washington Post (right) speaking to Jackie Wellfonder. Jackie made the cut in Ovetta’s story.
I also had the pleasure of meeting Mike Bradley, who hosts WGMD’s morning show out of Lewes, Delaware. Since his station covers a fair amount of the lower Shore in its signal, he was interviewing some of the local players. It’s a very good show that I catch once I cross into Delaware on my way to work.
And it could be that the Tawes event is becoming one for the greater Delmarva area. A delegation of elected officials from the First State included Representative Tim Dukes, who covers the Laurel and Delmar areas in his 40th District.
The reason I’m in the photo on the right: it was taken by Dukes’ fellow representative (and Minority Leader in the Delaware House) Danny Short of Seaford. Since we’re neighbors with Delaware it was nice to see some of their elected officials, too.
In that respect, this coverage was a little lacking because I did a lot of walking and talking to a number of nice folks from around the state. I want to say I overheard Jackie Wellfonder say this, but Tawes really is “like a big ‘ol family reunion.” We don’t often see a lot of politicians travel across the bridge but for attending Tawes, so you have to say hello and speak your piece when you can.
Commentary by Marita Noon
Editor’s note: by Marita’s request – and so as not to come in the midst of other upcoming content from her – I’m posting this a day earlier than Marita’s normal Tuesday morning slot.
The name Donald Trump will occupy the news cycle during the Republican National Convention in Cleveland, Ohio. Other than comments from oil entrepreneur Harold Hamm, energy won’t be a huge topic on the stage – though it does hold a spot on the newly approved Republican Platform and has a starring role in Trump’s plan to “make America great again.”
Trump calls it “An America First Energy Plan.” In it, he calls for “American energy dominance,” which he sees as a strategic, economic, and foreign policy goal. Like every recent president before him, he seeks “American energy independence” – which he defines as being “independent of any need to import energy from the OPEC cartel or any nations hostile to our interests.” According to his energy adviser, Rep. Kevin Cramer (R-ND), this acknowledges that we will still use oil from our friends like Canada and Mexico and that, for example, due to refinery configurations, there will likely continue to be oil imports and exports. The thing to note is that we will not need to, not have to, do business with those who are hostile toward America.
He understands that our amazing American energy resources offer the United States tremendous wealth and economic advantage. In his May 26 speech in North Dakota, addressing untapped oil and gas reserves on federal lands, Trump exclaimed: “We have no idea how rich we are. We want to cherish that wealth.” In comparison, he pointed out that Hillary Clinton wants to lock up “trillions in American wealth” while her “poverty-expansion agenda” enriches her friends and makes everyone else poor. (Be sure to read more about Hillary enriching her friends in my column next week.) In the speech, Trump pointed out to the audience, largely made up of people from the oil and agriculture industries: “If Crooked Hillary can shut down the mines, she can shut down your business, too.”
His America First Energy Plan calls for a redirection of our energy agenda. Overall, Trump will move away from government-central planning efforts and return authority back to the states – an idea that has made it into the Republican Platform. His plan has three main components. Under a Trump administration there will be big changes in climate policy, regulations, and the management of federal lands.
While Trump is known to have called climate change “a hoax,” and has declared that he will not allow “political activists with extreme agendas” to write the rules, he is a true environmentalist. Coming from New York City where the only “nature” is Central Park, he has a heart for the environment. Cramer told me Trump holds a typical “Manhattan view of the West:” clean air, green space, and nature are precious. In his energy speech, Trump announced his environmental policy: “my priorities are very simple: clean air and clean water.” A Trump administration “will work with conservationists whose only agenda is protecting nature.”
In his “100-day action plan,” Trump says he’ll rescind the Climate Action Plan – which “gives foreign bureaucrats control over how much energy we use.”
[Note: this foreign control over energy use was a key component in the Brexit vote - as I wrote a few weeks ago. Since then, Theresa May, the UK’s new Prime Minister, who last week announced: "I want to see an energy policy that emphasises the reliability of supply and lower costs for users," has scrapped the Department of Energy and Climate Change and replaced it with a new Department for Business, Energy & Industrial Strategy. With a President Trump, we can expect similar action.]
Trump has pledged to “cancel the Paris Climate Agreement and stop all payment of U.S. tax dollars to U.N. global warming programs.” He says such policies are evidence of America bending to benefit other nations at a cost to the U.S. Once the “draconian climate rules” are eliminated there is no rationale for imposing a “job-killing cap-and-trade” scheme or to keep extending the subsidies for wind and solar. He is not opposed to wind and solar energy, and in fact, wants to “get bureaucracy out of the way of innovation so we can pursue all forms of energy,” but he doesn’t support the idea of “the government picking winners and losers.” Like other energy sources, once the subsidies expire, the wind and solar industry would benefit from typical business tax deductions and deferments.
Trump’s agenda calls for “Regulation reform that eliminates stupid rules that send our jobs overseas.” He knows that “costly regulation makes it harder and harder to turn a profit.”
In his speech, he accused the Environmental Protection Agency of “totalitarian tactics” and pointed out the current enforcement disparity: “The Department of Justice filed a lawsuit against seven North Dakota oil companies for the deaths of 28 birds while the Administration fast-tracked wind projects that kill more than 1 million birds a year.”
Cramer told me we can expect Trump to roll back a lot of Obama’s regulatory overreach and take a different approach toward rules, like the Waters of the U.S. and the Clean Power Plan, that are currently under a court-ordered stay.
Coal miners have come out en masse for Trump because of his promise to “save the coal industry.” I asked Cramer how Trump planned to do that. He told me that while coal-fueled power plants that have already been shut down or converted to natural gas will not likely be reopened, a Trump administration can save what’s left and stop the bleeding by not artificially punishing the industry through regulation.
On July 14, the U.S. House of Representatives passed the 2017 Department of Interior, Environment, and Related Agencies Appropriations Bill. It provides an example of actions we can expect from a President Trump. Cramer says if this bill were to make it to Trump’s desk, he would sign it. Some of the bill’s provisions include:
- Prohibiting the EPA from implementing new greenhouse gas regulations for new and existing power plants,
- Prohibiting harmful changes to the “stream buffer rule” or making changes to the definition of “fill material” negatively impacting coal-mining operations, and
- Requiring a report on the backlog of mining permits awaiting approval.
Additionally, the bill cuts funding for regulatory agencies – “a decrease of $64 million from last year’s budget and $1 billion below the President’s request.”
While the Obama Administration has issued near fatal regulations on the coal industry (which Hillary would take even further), other countries are using more coal. On July 11, the Financial Times announced that prices for coal surged on increasing demand in China.
In short, Trump explained: “Any future regulation will go through a simple test: is this regulation good for the American worker? If it doesn’t pass this test, the rule will not be approved.”
In his speech, Trump reminded people that President Obama has halted leasing for new coal mines on federal lands and aggressively blocked the production of oil and natural gas by closing down leases and putting reserves off limits. He pointed out that these resources are an American treasure and that the American people are entitled to share in the riches.
One of the ways Americans will benefit from the riches of our natural resources is through a designated fund that, much like many natural resource states already do, will put a portion of the revenues directly into rebuilding roads, schools, and public infrastructure.
As a part of his 100-day action plan, Trump has promised to “lift moratoriums on energy production on federal areas.” Instead of slow-walking permits or being passive-aggressive with the permitting process, he’ll order agencies to expedite exploration, drilling, and mining permits.
Trump has said he intends to “trust local officials and local residents.” This idea will be played out in his approach to the management of federal lands – which Cramer explained will be more of a state and federal partnership where states will have a much greater say regarding their land use. This includes the regulation of hydraulic fracturing. In a blow to the Obama administration’s overreach, a federal court recently affirmed that the regulation of the technology is the jurisdiction of the states – not the Federal Bureau of Land Management.
We’ll see this same philosophy played out in the designation of national monuments – something the Obama administration has abused by turning the ability to designate national monuments into a land grab. His monument designations often prevent productive use of the federal lands – such as agriculture or mineral extraction. The GOP platform committee adopted language that empowers states to retain control over lands within their borders. New monuments will “require the approval of the state where the national monument is designated or the national park is proposed.” As a result, Cramer told me: “We will not see a lot of new federal lands.”
There are two additional important energy items to note. First, Trump would “ask TransCanada to renew its permit application for the Keystone pipeline” – which would be built by American workers. Second, Trump has long been a supporter of nuclear power.
Trump’s energy plan is a turn toward realism. It is based on the fact that our American energy abundance can allow for shared prosperity, better schools, more funding for infrastructure, higher wages, and lower unemployment. Isn’t that what making America great again is all about?
The author of Energy Freedom, Marita Noon serves as the executive director for Energy Makes America Great Inc., and the companion educational organization, the Citizens’ Alliance for Responsible Energy (CARE). She hosts a weekly radio program: America’s Voice for Energy - which expands on the content of her weekly column. Follow her @EnergyRabbit.
Commentary by Marita Noon
Death Valley, California, is known as “the hottest place on earth.” But, if you hear the news that the “Hottest Place on Earth Has Record-Breaking Hot June” – when “temperatures exceeded average June temperatures by about 6 °F” – it might be easy to ascribe the heat to alarmist claims of climate change. While Southern California was experiencing power outages due to a heat wave, Death Valley hit 126 °F – though the previous June high was 129 °F on June 30, 2013, and Death Valley holds the highest officially recorded temperature on the planet: 134 °F on July 10, 1913.
Yes, it is a hot summer for most of the U.S. – but that was predicted by WeatherBELL’s Joe Bastardi who, on Groundhog Day, referenced El Niño and said: “we may have the hottest summer since 2012.” Dr. Roy Spencer, Principal Research Scientist at the University of Alabama in Huntsville, explains: “it is usually the second calendar year of an El Niño event that is the warmest.” The current El Niño event made 2015 “the 3rd warmest year in the satellite record” – records, which have been kept for 38 years (all three of the hottest years were during an El Niño event). The 2015-16 El Niño is one of the strongest on record.
El Niño is a natural weather pattern first discovered centuries ago by Peruvian fisherman who noticed that the ocean would often warm late in the year. They called the phenomenon El Niño, after the Christ Child. “Modern researchers,” according to Bloomberg, “came to realize its importance to global weather in the 1960s, when they recognized the link between warm surface water and corresponding atmospheric changes.”
El Niño usually means warmer or milder winters and cooler summers in the U.S. – which has been bad for producers of America’s natural gas, as less has been needed for heating and air conditioning. Describing the winter of 2015-16, one account said: “warm, wet or even ‘what winter?’” This past winter’s milder temperatures coincided with abundant output from shale formations, that continued to grow through last winter, and, as reported by Natural Gas Intelligence (NGI): “collapsed natural gas prices to the lowest levels since 1999.” As a result, wholesale electricity prices also tumbled.
The trend away from coal for power generation has previously helped natural gas producers, as the increased production easily met strengthening demand. However, that demand has slowed as, according to NGI: “most U.S. regions that could switch out of coal on economic terms have already done so.”
While the warmer winter and oversupply condition coincided to drive natural gas prices to their lowest levels in almost 17 years, weather and supply are now driving them back up.
El Niño patterns are usually followed by what is called La Niña – which happens as the ocean temperatures cool. La Niña generally takes place three months, or as much as twelve months, after an El Niño cycle. A report from CNBC, back in January, projected that this year’s El Niño would “fade by May-July” – which is what we are seeing and that is causing the hotter, drier summer. The Browning World Climate Bulletin says: “The factors that cooled so much of North America in April and May are retreating and the hot marine air masses will surge inland.” Likewise, NGI States: “The El Niño event that led to record North American winter temperatures has made way for the transition to La Niña, which usually results in hotter-than-normal summer temperatures.”
Addressing these weather patterns, Bloomberg cites Kevin Trenberth, distinguished senior scientist at the National Center for Atmospheric Research in Boulder, Colorado, as saying: “The cycles occur every two or three years on average and help regulate the temperature of the Earth, as the equatorial Pacific absorbs the heat of the sun during the El Niño and then releases it into the atmosphere. That can create a La Niña: a ‘recharge state’ when ‘the whole Earth is cooler than it was before this started.’”
While experts differ on the exact timing, most expect La Niña to form as early as July or as late as December – or even January. Trenberth explains: “La Niña is more like a strong case of ‘normal.’ If a region is typically dry, it could become arid in a La Niña. If it’s usually wet, there may be floods.” Which translates to a colder, and more volatile, than average winter – though predictions are for drier and warmer in the southwest U.S. Reports indicate that a strong La Niña could push more polar vortexes down into the U.S. and typically a strong El Niño, as we’ve just experienced, is followed by a strong La Niña.
On June 29, the Financial Times announced: “US natural gas prices have leapt 30 per cent this month as hot weather boost demand for air-conditioning and slowing supplies point to a gradually tightening market.” It adds: “After years with prices in the doldrums, US gas output has also begun to level off.”
The hot summer, according to Bastardi, will continue with widespread warmth through the fall – with the Northeast and Midwest possibly hitting 90 °F into October. Then, going from one extreme to the other, when winter hits, it is expected to be, as previously addressed, colder-than-normal across the Northwest, Upper Midwest, and Northeast.
These conditions create higher cooling and heating demand for natural gas. And that, coinciding with reduced supply, will give a boost to U.S. natural gas prices – rebalancing the market and bringing price recovery.
For investors, Bloomberg states: “Seeing as North American Winters are expecting to be stronger with La Niña, SocGen [Societe Generale Corporate & Investment Banking] recommends investing in natural gas.” The Price Group’s Phil Flynn, seen daily on the Fox Business Network, concurs. He told me that in the rush to convert electricity generation to natural gas, we are now in a place, unlike the winter of 2014, where there are not enough coal-fueled power plants to fill the demand gap. The idea was that with global warming, winters would remain mild, but with the naturally occurring La Niña cycle, and the projected cold winter, we are facing high demand at a time when natural gas production is “getting ready to fall off a cliff.” With reduced supply and pipeline constraints, natural gas may not be able to meet all of the demand. He is encouraging his clients into natural gas.
For consumers this may mean that, because wholesale electricity prices strongly correlate to natural gas prices, power supply costs could be impacted – resulting in higher utility bills. Because of low natural gas prices, homeowners have not felt the full hit of higher cost renewables – but that could be changing as we head into a La Niña winter.
The author of Energy Freedom, Marita Noon serves as the executive director for Energy Makes America Great Inc., and the companion educational organization, the Citizens’ Alliance for Responsible Energy (CARE). She hosts a weekly radio program: America’s Voice for Energy - which expands on the content of her weekly column. Follow her @EnergyRabbit.
Commentary by Marita Noon
Throughout the past four years, climate change activists have been secretly coordinating with one another regarding ways to prosecute individuals, organizations, and companies that are their ideological foes. They met to develop a strategy to use RICO (Racketeer Influenced and Corrupt Organizations Act), which was intended to provide stronger weapons for prosecuting organized crime, against those who speak out against the Obama administration’s war on fossil fuels.
More recently, the activists, including Naomi Oreskes and Bill McKibben, have coordinated with Attorneys General (AG) culminating with a March 29 press conference, led by New York AG Eric Schneiderman and joined by former Vice President Al Gore. There the “unprecedented coalition” – as Schneiderman’s press release called it – was announced: the newly formed AGs for Clean Power. Though “vague” on their specific plans, 17 AGs (16 Democrats and 1 Independent) have, as the Huffington Post reported: “committed to pursuing an all-levers approach” to, as Gore said: “hold to account those commercial interests that have been, according to the best available evidence, deceiving the American people, communicating in a fraudulent way.”
ExxonMobil has been the first and most obvious target. While the RICO Act is federal legislation passed in 1970, more than two dozen states have “Baby RICO” laws – which are, according to InsideClimateNews.org, “broader than the federal version.”
Four different investigations claiming that Exxon conspired to cover up its understanding of climate science have been launched. Schneiderman was the first. Last November, he issued a subpoena demanding: “that ExxonMobil Corporation give investigators documents spanning four decades of research findings and communications about climate change.” In January, the Los Angeles Times announced: “California Atty. Gen. Kamala D. Harris is investigating whether Exxon Mobil Corp. repeatedly lied to the public and its shareholders about the risk to its business from climate change – and whether such actions could amount to securities fraud and violations of environmental laws.” On April 19, Massachusetts AG Maura Healey opened an investigation to seek “information regarding whether Exxon may have misled consumers and/or investors with respect to the impact of fossil fuels on climate change, and climate change-driven risks to Exxon’s business.” Just days after the March 29 press conference, Virgin Islands’ AG Claude Walker, in his demand for records, became the first to cite the racketeering law to “probe Exxon over its longtime denial of climate change and its products’ role in it.” Additionally, he listed roughly 100 academic institutions and free market think tanks in his subpoena. The National Review reports that Walker promised a “transformational” use of his prosecutorial powers in the global-warming crusade. Separately, Walker also subpoenaed records from the respected Washington DC think tank, the Competitive Enterprise Institute (CEI). Schneiderman and Healey have also requested records from research and advocacy groups. Harris, who is running for the Senate seat to be vacated by retiring Senator Barbara Boxer (D-CA), “isn’t expected to do much in terms of investigating Exxon,” according to the Daily Caller.
The Free Beacon references “internal documents” stating that the goals of the larger campaign are:
- “delegitimize [ExxonMobil] as a political actor,”
- “force officials to disassociate themselves from Exxon,”
- “drive divestment from Exxon,” and
- “to drive Exxon & climate into center of 2016 election.”
The Wall Street Journal (WSJ) adds:
- “to establish in the public’s mind that Exxon is a corrupt institution that has pushed humanity (and all creation) toward climate chaos and grave harm.”
Despite the attacks on Exxon, WSJ quotes Lee Wasserman, director of the Rockefeller Family Fund – one of the foundations behind the crusade – as saying: “It’s not really about Exxon.” Instead: “It’s about helping the larger public understand the urgencies of finding climate solutions.”
Senator Sheldon Whitehouse (D-RI), who has long advocated that the Department of Justice (DOJ) investigate whether Exxon and other fossil fuel companies violated the RICO statute by disputing the role of fossil fuel burning in global warming, at a recent hearing, asked Attorney General Loretta Lynch if she’d considered using RICO against fossil fuel companies. She replied: “This matter has been discussed. We have received information about it and have referred it to the FBI to consider whether or not it meets the criteria for which we could take action on.”
WSJ reports: “The new legal theory has yet to gain momentum within the Justice Department, according to officials familiar with internal discussions. But after prodding by lawmakers, the Federal Bureau of Investigation is conducting a preliminary review.”
Even legal scholars, such as Columbia Law School professor Merritt B. Fox, who, according to Reuters, agrees with the importance of climate change, expressed skepticism about the legal strategy of the prosecutors: “The market was well supplied with information about climate change from a variety of sources.” Reuters adds: “investors get information on climate change from many sources and Exxon would probably not be able to alter the ‘total mix’ of publically available information.” Similarly, Pat Parenteau, a professor of environmental law at the Vermont Law School, is quoted by InsideClimateNews.org: “Hopefully there is something more than unsubstantiated suspicion to support this.” Parenteau explains: “The most serious question is whether the attorney general [Walker] has any basis to suspect that Exxon has engaged in activities that violate the statutes about obtaining money by false pretense and fraud.” In WSJ, David Uhlmann, a university of Michigan law professor and former federal crimes prosecutor, expressed concern regarding the ability to establish “clear culpability for global warming.” The reporting says: “Millions of individuals contribute with their use of fossil fuels, while national governments have done little despite knowing the risks.” Uhlmann states: “Exxon should have been far more forthright about the risks associated with climate change, but all of us are culpable for our collective failure to change.”
Then there are the opponents. WSJ points out: “Both sides see this as a pivotal moment in a growing campaign by environmentalists to deploy a legal strategy used against tobacco companies in the 1990s by arguing that oil companies have long hidden what they know about climate change.”
Late last month, five Republican Senators sent a letter to Lynch demanding that: “the DOJ immediately cease its ongoing use of law enforcement to stifle private debate on one of the most controversial issues of our time – climate change.”
William Perry Pendley, whose group, the Mountain States Legal Foundation, is named in Walker’s subpoena, told me the effort by environmental groups is: “an abuse of power that we haven’t seen in this country since Woodrow Wilson.” His foundation, according to the Washington Times, has “long acknowledged that Exxon is one of its many funders.” Pendley says: “accepting funding from Exxon and disagreeing with Greenpeace on the causes and extent of climate change are not crimes. What we are accused of saying is: ‘Maybe there isn’t global warming, maybe it’s not caused by man, and maybe your solution won’t work. It will be too expensive and drive us into poverty.’”
Ronald Bailey, science correspondent for the Reason Foundation – also named in Walker’s subpoena – said, according to the Washington Times: “These subpoenas are a huge step in using courts to silence people who hold views that differ from those of powerful government officials.”
CEI, the organization singled out for Walker’s separate subpoena, issued the following statement from president Ken Lassman: “All Americans have the right to support causes they believe in and the CEI subpoena is an abuse of the legal system and an effort to intimidate and silence individuals who disagree with certain attorneys general on the climate debate. Disagreeing with a government official is not a crime; abusing government power to take away Americans’ rights is.”
I know this to be true as my organization, though not featured on Walker’s list, is still a victim. We had some essential funding in place that would have allowed us to continue for months without extreme financial stress. However the DC policy shop that was to provide the support for our efforts, pulled it as a result of the AG’s campaign. I was told that the funding was approved, but that when I wrote my April 25 column on the film Climate Hustle – which questions the science behind the politically correct narrative of manmade catastrophic climate change – the board got cold feet because they, too, are one of the organizations on the list. At first, I wanted to quit, as without the funding I couldn’t continue. But then, I got mad. I realized that if I stopped doing what I do, these AGs would win – which is their goal. Indirectly, they attempted to silence me. I am grateful for individuals and companies who believe in my work and who have stepped up to fill the funding gap - at least for a few months.
Those of us who’ve been attacked are not the only ones who saw the flaw of the AG’s crusade. Exxon and CEI have filed lawsuits against the accusers. Exxon claimed that the subpoenas “violated constitutional amendments on free speech, unreasonable search and seizure and equal protection.” As a result, last week, Walker withdrew his subpoenas and Healey, reports the Daily Caller, has “agreed to an abeyance of the subpoena, meaning her office won’t enforce the subpoena until all legal appeals are exhausted, which may take a couple of years.”
In a big victory for free speech, The Hill states: “The withdrawal closes a major chapter in the drive by liberals and environmentalists to punish Exxon over allegations that it knew decades ago that fossil fuels were causing climate change but denied it publically.”
In response to the “retreat,” Representative Lamar Smith (R-TX), Chairman of the House Committee on Science and Technology said: it “confirms what my committee has known all along – these legal actions were conceived and driven by environmental groups with an extreme political agenda and no actual regard for the law.” His statement added: “Companies, nonprofit organizations and scientists deserve the ability to pursue research free from intimidation and threat of prosecution.”
The Heartland Institute, for which I serve as an “expert” on energy issues, is also on the “list.” Its president, Joe Bast, told me: “because there is a lively debate over the causes and consequences of climate change, this litigation has First Amendment implications.” He added: “It is not the possibility of harm to the public that led the AGs and DOJ to decide to enter into a wickedly complicated scientific debate, but the possibility of harm to the current administration in the White House. Their objective is to silence opposition by ExxonMobil and CEI (and other nonprofit organizations similar to CEI) to this administration’s draconian energy policies.”
Where these attacks on free speech go next remains to be seen. But as Texas AG Ken Paxton said in response to Walker’s withdrawal: “In America, we have the freedom to disagree, and we do not legally prosecute people just because their opinion is different from ours.”
May free speech reign and scientific inquiry prevail. True science welcomes a challenge because it can stand up to it – while political correctness must silence challenge.
Commentary by Marita Noon
“California’s largest utility and environmental groups announced a deal Tuesday [June 21] to shutter the last nuclear power plant in the state.” This statement from the Associated Press reporting about the announced closure of the Diablo Canyon nuclear power plant should startle you. The news about shutting down California’s last operating nuclear power plant, especially after Pacific Gas & Electric Co. (PG&E) had sought a 20-year extension of the operating licenses for the two reactors, is disappointing – not startling. What should pique your ire is that the “negotiated proposal,” as the Wall Street Journal (WSJ) called it, is between the utility company and environmental groups – with no mention of the regulators elected to insure that consumers have efficient, effective and economical electricity.
Who put the environmental groups in charge? Not the California voters. But unelected environmental groups – and their bureaucratic friends in various government agencies – have been dictating energy policy for the most of the past decade. Regarding the “negotiated proposal,” WSJ points out: “The agreement wades deeply into intricate energy procurement, environmental and rate-setting matters that are normally the exclusive jurisdiction of state agencies.”
California has a goal of generating half of its electricity from renewable sources by 2030 and environmental groups are calling for the state officials to replace Diablo’s generating capacity with “renewable power sources.” Realize that this one nuclear power plant provides twice as much electricity as all of California’s solar panels combined.
Bloomberg Intelligence analysts’ research concluded that PG&E “would need 10,500 megawatts of new solar installations to replace all of Diablo Canyon’s output” and that, without including potential costs of new transmission lines or back-up resources for solar, will cost $15 billion – with totals, including decommissioning, estimated at $20 billion.
The Bloomberg report states: “PG&E will ask that customers make up any shortfall.”
Actual costs, Bloomberg says: “could be lower because the company expects to compensate for lower demand and replace only part of the production.” Why will there be lower demand? The WSJ explains: “the plan calls for new power sources to furnish only a portion of the electricity that Diablo Canyon generates, assuming that greater energy efficiency in the future will also curb some power demand.”
All of this is announced while California is experiencing, and expecting more, blackouts due to “a record demand for energy” and because “there just aren’t enough gas pipelines for what’s needed,” according to CNN Money. “Southern California,” reports WSJ, “is vulnerable to energy disruptions because it relies on a complex web of electric transmission lines, gas pipelines and gas storage facilities – all running like clockwork – to get enough electricity. If any piece is disabled, it can mean electricity shortages. Gas is the state’s chief fuel for power generation, not coal. But the pipelines can only bring in about 3 billion cubic feet of working gas a day into Southern California, below the daily demand, which gets as high as 5.7 billion cubic feet.”
California’s Independent System Operator, which runs the state’s power grid, therefore, has warned of “significant risk” that there may not be enough natural gas which could result in “outages for as many as 14 summer days.” CNN Money reports: “Natural gas has played a bigger role for California as the state has tried to phase out coal and nuclear power” – environmental groups oppose the use of all of these three power sources.
It is expected that Diablo Canyon’s generating capacity will, in part, be replaced with more natural gas – which is good news for fracking. Eric Schmitt, vice president of operations for the California Independent System Operator, said: “California needs more flexibility in how it generates power so it can balance fluctuating output from wind and solar projects. Gas plants can be turned off and on quickly.”
As coal-fueled electricity has been outlawed in California, and environmental groups have pushed to close nuclear power plants, and routinely block any new proposed natural gas pipelines, black outs will become frequent. California’s energy demand doesn’t match solar power’s production.
This dilemma makes “energy efficiency” a key component of the environmental groups’ decrees – which parallels the European Union’s (EU) policies that were a part of Britain’s “exit” decision (known as “Brexit”).
When the EU’s energy efficiency standards for small appliances were first proposed, then German EU energy commissioner, Gunther Oettinger, according to the Telegraph, said: “All EU countries agree energy efficiency is the most effective method to reduce energy consumption and dependence on imports and to improve the climate. Therefore there needs to be mandatory consumption limits for small electrical appliances.” In 2014, the EU, in the name of energy efficiency, sparked public outcry in Britain when it banned powerful vacuum cleaners with motors above 1600 watts. It then proposed to “ban high powered kettles and toasters” as part of the “Eco-design Directive” aimed at reducing the energy consumption of products.
The EU’s Eco-design Directive’s specific requirements are to be published as “Implementing Measures” – which, according to Conformance.co.uk, are made “as European Law Commission Regulations.” It explains that this process allows the directives to “enter into force in all the member states without requiring a transcription process in their National Law. Thus they can be issued much more quickly than the usual Directive Process.”
When the EU’s high-powered toaster/tea-kettle ban was announced, it became “a lightning rod for public anger at perceived meddling by Brussels” – which was seen as “intruding too much into citizens’ daily lives.” When the ban was announced, retailers reported a spike, as high as 95 percent, in toaster and electric tea-kettle sales. The European overreach became such ammunition in Britain’s Brexit referendum, that Brussels stalled the ban until after the election and engaged in a now-failed public relations exercise with “green campaigners” to speak out in favor of the toaster and tea-kettle regulations that were believed to have “considerable energy saving potential.”
The Brits didn’t buy it. It is reported that top of the list for “leave” voters were “EU Rules and Regulations.” Matthew Elliot, chief executive of the Vote Leave campaign said: “If we vote remain we will be powerless to prevent an avalanche of EU regulations that Brussels is delaying until after the referendum.”
Brussels’ toaster and tea-kettle ban, which were perceived as an assault on the British staples, has been called “bonkers” and “too barmy to be true.” Specifically addressing the ban, Elliot said: “The EU now interferes with so many aspects of our lives, from our breakfast to our borders.” David Coburn, a UK Independence party MEP from Scotland, who recently bought a new toaster and tea kettle grumbled: “I think I must have bought a euro-toaster, I have to put bread in it five times and it’s still pale and pasty. Perhaps it’s powered by windmills. And the kettle? Watching a kettle boil has never been so boring.”
While energy efficiency directives banning Keurig coffee makers would be more likely to draw similar ridicule from Californians, there is a lesson to be learned from the Brexit decision: too much regulation results in referendums to overturn them. It is widely believed that, with Brexit and new leadership, many of the EU’s environmental regulations, including the Paris Climate Agreement, will be adjusted or abandoned.
More and more Americans are reaching the same conclusion as our British cousins about the overreach of rules and regulations. As Coburn concluded: “What we want is to let the free market reign, not this diktat by bureaucrat.”
Commentary by Marita Noon
Proponents of green energy like to point out how the costs have come down – and they have. Though renewable energy, such as wind and solar, are not expected to equal fossil fuel costs anytime in the near future and recent growth has been propped up by mandates and tax incentives. But there are other, more subtle aspects of the Obama Administration’s efforts that have had negative impacts that are not felt for years after the policies are implemented. By then, it will be too late to do much about them.
We know that the push toward renewables has hurt the coal industry. As Hillary Clinton gleefully exclaimed: “we’re going to put a whole lot of coal miners and coal companies out of business.” We are already seeing this happen all over the country. Dozens of coal mining companies have gone bankrupt since President Obama took office and those that are still functioning are doing so with far fewer workers.
One such mine is in the Four Corners region of New Mexico – the San Juan Mine – which is one of the largest underground coal mines in the world. It has been a “top employer” in the region. Westmoreland Coal Company purchased the mine from BHP Billiton, with the sale completed on February 1, 2016. At the time, the mine employed more than 400 people. Shortly thereafter, 11 salaried staff lost their jobs and on June 16, another 85 workers – both salaried and hourly – were laid off. Which, according to the Albuquerque Journal, were “necessary because the San Juan Generating Station, which uses all the mine’s coal, plans to retire two of its four units as part of a negotiated agreement among plant operator Public Service Company of New Mexico [PNM], the Environmental Protection Agency, the Navajo Nation, and the state of New Mexico.”
The “agreement” to shut down half the power plant – thereby cutting the immediate need for coal – is the result of the EPA’s 2011 Regional Haze Program that, according to a report from the U.S. Chamber of Commerce, “seeks to remedy visibility impairment at federal National Parks and Wilderness Areas.” This, the report states, “is an aesthetic regulation, and not a public health standard” – though the results will be undetectable to the human eye. For this, nearly a quarter of the mine’s workforce has been terminated.
The Albuquerque Journal cites Westmoreland’s executive vice president, Joe Micheletti, as being unwilling to “comment on whether he expected to see more layoffs in the coming months.” It also states that PNM has promised “not to lay off any employees at the stations as a result of the unit closures” – though through attrition employment is down 20 percent from two years ago.
The reality is, anti-fossil fuel groups like the Sierra Club, wanted the entire plant shut down. In 2018, PNM will have to plead their case before the Public Regulatory Commission to keep the San Juan Generating Station functioning past 2022. PNM is currently considering a plan for meeting its needs for electricity without it. If the plant closes, all jobs, approximately 800, at both the mine and the generating station will be gone – greatly impacting the local economy.
Obama’s far-reaching green energy policies are insidious – hurting consumers in ways we don’t even think of. On June 10, Stephen Yurek, president and CEO of the Air-Conditioning, Heating and Refrigeration Institute (AHRI), gave testimony before the U.S. House of Representatives Subcommittee on Energy and Power. He addressed the nearly 40-year old Energy Policy and Conservation Act (EPCA) – which, he said, “has not been updated to reflect new technologies and economic realities” and “has been misapplied by the Department of Energy [DOE].” The Obama Administration has run amuck in its application of EPCA – issuing regulation after regulation. Yurek backs this up by pointing out the difference in the Clinton and Obama administrations: “While the Clinton Administration’s DOE issued just six major efficiency rules during his eight years in office, the Obama Administration’s DOE issued eight major efficiency rules in 2014 alone – a record according to the Office of Information and Regulatory Affairs. And DOE’s Unified Agenda indicate that between 2015 and the end of the administration, 11 additional major efficiency rules can be expected to be issued.”
These rules, Yurek explained, “use unrealistic assumptions” to create “higher efficiency levels than are economically justified for consumers.” He encourages Congress to force the DOE to “consider the real-world cumulative impact of product efficiency standards among agencies, businesses, and consumers” and suggests that “as DOE promulgates rules according to an accelerated regulatory schedule, necessary constructive dialogue falls by the wayside.”
Yurek summarizes: “An endless cycle of efficiency rulemakings continues to have an adverse impact on our global competitiveness and the American jobs we create.” This practice hurts consumers as “When new products and equipment cost more than consumers can afford, they find alternatives, some of which compromise their comfort and safety, while saving less energy or none at all or in some cases using more energy.”
In the name of energy efficiency, on December 6, 2013, Obama issued a memorandum ordering federal buildings to triple renewable energy use. He declared: “Today I am establishing new goals for renewable energy as well as new energy-management practices.” Now, nearly three years later, we get a taste of what his federal building initiative is costing taxpayers.
On June 16, 2016, the Federal Housing Finance Agency’s (FHFA) Office of Inspector General released a report - precipitated by an anonymous hotline complaint - on the 53 percent cost escalation at Fannie Mae’s extravagant new downtown DC building. As a result of the financial crisis, mortgage giant Fannie Mae received a bailout of $116.1 billion in taxpayer funds and FHFA now serves as the conservator over Fannie Mae. The Inspector General found that no one in the FHFA Division of Conservatorship “was aware of the 53% increase in the estimated build-out costs for Fannie Mae’s new office space.”
“Because Fannie Mae is an entity in the conservatorship of the U.S. government,” the report states: “FHFA, as conservator, will need to assess the anticipated efficiencies of specific proposed features against estimated costs of those features and determine whether the efficiencies warrant the costs.” The watchdog report found the ballooning costs created “significant financial and reputational risks.”
Addressing the excessive cost, Rep. Scott Garrett (R-NJ), chairman of the House subcommittee with oversight over Fannie Mae, said: “Like a child with a credit card in a toy store, the bureaucrats at Fannie Mae just couldn’t help themselves. After being forced to bail out the GSE’s [Government-Sponsored Enterprises] to the tune of nearly $200 billion [which includes Freddie Mac], American taxpayers now get the news that they are underwriting lavish spending at Fannie Mae’s new downtown Washington, D.C. headquarters. So while Americans around the country are living paycheck to paycheck, Washington insiders are blowing through budgets by designing glass enclosed bridges and rooftop decks.”
In response to the call for “immediate, sustained comprehensive oversight from FHFA,” Melvin L. Watt, FHFA director, defended himself. In the face of the Inspector General’s caustic criticism, he claimed that many of the upfront investments would save money over time. Watt’s memorandum only offers two such examples and one is more efficient lighting. He claims: “upfitting space with more expensive LED lighting instead of less expensive fluorescent lighting would result in significantly cheaper operating costs.” The other example he provided was window shades.
These are just three recent examples of Obama Administration policies that were put in place years before the resulting job losses and costs to consumers and taxpayers are felt. Gratefully, for now, the Supreme Court put a stay on one of his most intrusive and expensive programs – the Clean Power Plan. But there are plenty of little rulemakings, programs, and memorandums that will still be impacting jobs and increasing costs long after he is out of office.
Back in 2013 I wrote about a company called Ethical Electric, noting that the electricity supplier was charging a premium to help out progressive causes. Well, the other day I received a solicitation from a group called Clean Energy Option and after a little digging I found out it was Ethical Electric that was doing business as (d/b/a) Clean Energy Option. Seems to be less than ethical to change their name, but it’s likely a marketing thing.
Yet thanks to that 2013 piece I wrote for Watchdog Wire, I found out that Ethical Electric was charging 10.14 cents per kilowatt-hour (kWh) at the time, which was a fair-sized premium over the 8.89 cents per kWh Delmarva Power (my utility) was charging back then. That 14% difference meant the average bill would be about $12.60 higher per month for an average home that used 900 kWh monthly. I don’t know about you, but I’m sure I would cry foul if my electric bill was going up $150 a year, since that’s what it translates to.
It just so happened that the Clean Energy solicitation followed my latest Delmarva Power bill by a couple days so my bill was handy. Over the last two-plus years, my Delmarva Power rates haven’t changed a whole lot as the “rate to compare” was 9.01 cents per kWh. In 2 1/2 years I’ve endured an annual rate increase far less than 1% as the total hike was 1.35%. (I also found out in researching this piece that I can get even lower rates by switching my supplier to another of several companies that are in that business. Some are “green” companies like Clean Energy Option, most are not.)
On the other hand, the teaser rate for Ethical Electric’s Clean Energy Option has swelled to 11.6 cents per kWh, which is a rate hike of 14.4% overall and about 6% per year. Most likely this rate will jump again after the three-month special rate ends – after all, what business would promote a higher initial cost? The premium that was once 14% has now doubled to 28%, despite the fact people are bending over backwards to install new solar farms and wind turbines around the region. As Clean Energy Option euphemistically puts the answer to the question “What will happen to my electricity bills?”:
In short, supporting new renewable energy development costs a little more than delivering polluting energy. That’s because the energy you are choosing is better for you and the planet.
(“Better for you” may not be true for a person within sensing range of the low-frequency sound emitted by wind turbines, but I digress.)
There’s obviously something at work here to drive the cost of “regular” electricity down while wind and solar continue to increase. I suspect that something is the low cost of natural gas, which is used more frequently as an energy source to create electricity and is relatively cheap. Ironically, this economic fact is doing almost as much damage to the coal industry as Obama’s EPA regulations.
So don’t be fooled to the tune of $23 a month or nearly $280 a year. Keep the money in your pocket and stick with what is most reliable. Or, if you really want to put that money to work, use it to support elected officials who will stand up to the environmentalist lobby and remove these silly mandates and carveouts for the otherwise unsustainable green energy racket.
In the interest of not letting good writing go to waste, allow me to direct you to the Patriot Post today. I truly enjoyed writing on my assigned topic this week, but wanted to share a couple other thoughts with you. It’s a good time for some reminders.
Over the years I have done this website, I have made the energy industry somewhat of a focus. It began with a friendship with Jane Van Ryan, who used to work for API before she left there a few years back. She encouraged me to do a little bit of research on the topic and quickly I was reminded that oil was the economic lifeblood of our country and the better and cheaper energy would be, the better off our economy would be. Being the logical sort of person I am, it was easy to figure out that coal, oil, and natural gas were definitely more reliable than wind that may not blow or sun that only shines between 9 and 15 hours a day – assuming, of course, a cloudless sky. So I believed in the idea that our future could be more secure if we use our natural resources we were blessed with.
On the other hand, there are those who want to tilt the playing field toward what they consider “renewable” resources. Green energy has been the beneficiary of not just direct subsidies, but carveouts in the market designed to make sure there is a place for these (otherwise useless) solar panel fields and wind turbines to send their energy. The market has been bent every which way for decades, although I’m sure many would argue that the oil industry got the initial benefits when we built thousands of miles of highways. For the most part, though, the pathways were already there – we just improved them to allow goods and people access from coast to coast in a matter of three to four days. It was as easy as stopping at the gas station every few hundred miles.
My columnist Marita Noon gets it too, which is why I run her column weekly. She was talking about wind turbines this week, which led one of my more liberal readers to note that there are a lot of places which welcome wind turbines. He mentioned Germany, but the love for wind turbines there is far from universal and the subsidies still won’t make offshore wind palatable.
I just look at things through a logical lens. A century ago, windmills powered individual farms but they were scrapped once rural electrification took hold in the 1930s - that was a more reliable source. So why are we going back to that less reliable technology when we have the reliability of coal, oil, and natural gas? Seems to me that “free” electricity in the form of solar or wind power costs a lot more than we think.
Commentary by Marita Noon
Last month’s wind-turbine fire near Palm Springs, CA, that dropped burning debris on the barren ground below, serves as a reminder of just one of the many reasons why people don’t want to live near the towering steel structures. In this case, no one was hurt as the motor fire was in a remote, unincorporated area of Palm Springs. But imagine if it was located just hundreds of feet from your back door – as they are in many locations – and the burning debris was raining down into your yard where your children were playing or onto your roof while you are sleeping.
Other reasons no one wants them nearby include the health impacts. Last month, Dave Langrud, of Alden, MN, sent a six-page, detailed complaint to the Minnesota Public Regulatory Commission. In it, he states: “Wisconsin Power and Light constructed the Bent Tree Wind Farm surrounding my home. There are 19 turbines within one mile and 5 within ½ mile. Both my wife and I have had difficulty sleeping in our home since the turbines started operating. If we leave the area, we don’t have this problem. The turbines have also caused severe headaches for my wife. She didn’t have this problem before the turbines, and this isn’t a problem for her when we spend time away from our home and away from the turbines. When we are home, the problems return.”
In response to another recent ongoing complaints at multiple Minnesota wind projects about the proximity of the turbines to residences, commissioners from the Minnesota Department of Health, Department of Commerce, and Pollution Control Agency acknowledged that regarding permitting and setbacks, “the noise standard was not promulgated with wind turbine-like noise in mind. It addresses audible noise, not infrasound. As such, it is not a perfect measure to use in determining noise-related set-backs between wind turbines and residences.” Yet, it is the “measure” that is used. The Commissioners also acknowledged: “At present there is no available funding to conduct such studies.”
Langrud’s letter addresses property values. He asks: “How do we get a fair price if we sell in order to save our health?” But recent studies prove that it isn’t just those forced to live in the shadows of the turbines whose property values are diminished. Waterfront properties that have offshore wind turbines in their viewshed would have a “big impact on coastal tourism,” according to a study from North Carolina State University. The April 2016 report in Science Daily states: “if turbines are built close to shore, most people said they would choose a different vacation location where they wouldn’t have to see turbines.” The economic impact to the coastal communities is estimated to be “$31 million dollars over 20 years.”
A similar study done in Henderson, NY, found a proposed wind project could have “a total loss in property value of up to about $40 million because of the view of turbines.” An interesting feature of the NY study, not addressed in the NC one is how the loss in property taxes, due to reduced values, will be made up. The Watertown Daily Times points out that most of the homes whose values “would fall sharply due to the view of turbines” are “assessed above $1 million.” It states: “homes in the $200,000 range without a view of turbines would probably see an increase in property taxes to make up for the overall drop in property values.” Robert E. Ashodian, a local resident is quoted as saying: “If property values go down and the town isn’t going to spend less money, the tax rate is going to go significantly up for all of the homeowners who aren’t impacted.” Henderson Supervisor John J. Calkin expressed concern over the “devastating impact” the wind project would have on the town and school district.
Offshore wind turbines were supposed to offer a visual benefit, but they, obviously, bring their own set of problems.
The Financial Times reports: “Building wind farms out at sea, rather than on land where critics say they are an eyesore, has made these power stations a less contentious form of clean energy … But it also makes them dearer than most other power stations and many EU governments face pressure to cut green subsidies that opponents say raise electricity prices and make some industries uncompetitive.” The higher cost argument is what has caused Denmark – known as the international poster child for green energy and the first to venture into offshore wind power – to abandon the policies that subsidized the turbines. Cancelling the coastal wind turbines is said to “save the country around 7 billion Krones ($1 billion).” According to Bloomberg: “The center-right government of [Prime Minister] Lars Loekke Rasmussen wants to scrap an electricity tax that has helped subsidize wind turbines since 1998.” The Danish People’s Party, the largest group in the ruling bloc, is part of the “policy about-face.” Party leader Kristian Thulesen Dahl says: “You have to remember this is a billion-figure cost that we’re passing on to the Danes.” She added: “We also have a responsibility to discuss the costs we impose on Danes over the next 10 years.”
Germany is facing similar problems with its green energy policies. Energy Digital magazine points out that Germany’s rapid expansion of green energy has “driven up electricity costs and placed a strain on the grid.” As a result, Germany has capped wind power expansion. In fact, subsidies – which drove the growth in renewable energy – are being cut throughout Europe. Bloomberg states: “Europe is falling out of love with renewables.”
Then, there are the U.S. utility companies who are forced to buy the more expensive wind-generated electricity due to an abused – but little known in the public – 1978 law that was intended to help the U.S. renewable energy industry get on its feet. The Public Utility Regulatory Policies Act (PURPA) was designed to give smaller power players an entry into the market. If wind-turbine projects meet the guidelines, utilities must buy the electricity generated at “often above-market” costs. Instead, in many cases, big projects, owned by one company, get divided up into different parcels with unique project names, but are still owned by the major developer. Energy Biz magazine reports: “PacifiCorp, for one, estimates that such abuses will cost its customers up to $1.1 billion in the coming decade by locking the company into unneeded electricity contracts at rates up to 43-percent higher than market price.” It quotes John Rainbolt, federal affairs chief for Wisconsin-based Alliant Energy: “Our customers essentially pay for PURPA power at 20-percent higher-than-market-based wind prices.” Led by Senator Lisa Murkowski (R-AK), Rep. Fred Upton (R-MI) and Rep. Ed Whitfield (R-KY) a move is underway in Congress to review the nearly 40-year old legislation.
So, residents who live near wind turbines don’t want wind turbines. Nor do residents and renters who have them in the viewshed, governments looking to cut costs, utility companies, or ratepayers. And we haven’t even mentioned those who want to protect birds and bats. Scientific American just addressed the concern that “Bat killings by wind energy turbines continue.” It claims: “wind turbines are, by far, the largest cause of bat mortality around the world” and this includes three species of bats listed – or being considered for listing – under the Endangered Species Act. Bats are important because they eat insects and, therefore, save farmers billions of dollars in pest control each year. Scientific American reports that in addition to dead hawks and eagles found under the wind turbines are thousands of bats.
Who does want wind turbines?
Wind turbine manufacturers, the American Wind Energy Association, and the crony capitalists who benefit from the tax breaks and subsidies – which Robert Bryce, author of Power Hungry and Smaller Faster Lighter Denser Cheaper, reports total more than $176 billion “given to the biggest players in U.S. wind industry.” He states that the growth in wind energy capacity has “not been fueled by consumer demand, but by billions of dollars’ worth of taxpayer money.” To address those who defend rent-seeking wind turbines and squawk about the favorable tax treatment the oil and gas sector gets, Bryce points out: “on an energy equivalent basis, wind energy’s subsidy is nearly three times the current market prices of natural gas.” Even billionaire Warren Buffett acknowledged that the only reason his companies are in the wind business is: “We get a tax credit if we build a lot of wind farms.”
If no one but the rent-seeking crony capitalists want wind turbines, why must people like Minnesota’s Langrud have to endure them? Because the wind energy lobby is powerful and “green energy” sounded good decades ago when the pro green-energy policies like PURPA were enacted. However, as the Bloomberg story on Demark points out: wind power is “a mature industry that no longer needs state aid.” Unfortunately, in December 2015, Congress extended the wind energy tax credits through 2021. But tweaks, such as reforming PURPA, can take place and a new president could totally change the energy emphasis – which would be good, because, it seems, no one really wants wind turbines.
The author of Energy Freedom, Marita Noon serves as the executive director for Energy Makes America Great Inc., and the companion educational organization, the Citizens’ Alliance for Responsible Energy (CARE). She hosts a weekly radio program: America’s Voice for Energy – which expands on the content of her weekly column. Follow her @EnergyRabbit.
Commentary by Marita Noon
When the name Resolute was chosen in 2011, after the merger of Bowater and Abitibi-Consolidated, the Canadian company, a global leader in the forest products industry and the largest producer of newsprint in the world, likely didn’t know what a harbinger it was. Today, it stands alone, set in purpose, with firmness and determination. Displaying the rare courage to stand up to the typical environmental extremists’ campaign of misinformation and shaming designed to shut it down, Resolute Forest Products is fighting back.
Many people are probably unaware of the shakedown tactics used by groups whose touchy-feely names belie their true goals.
Like most companies, Resolute originally went along. As Peter Foster explains in the Financial Post: “a cabal of radical environmental non-governmental organizations, ENGOs – including Greenpeace, ForestEthics and the David Suzuki Foundation – agreed to stop their campaigns of customer harassment in return for the members of the Forest Products Association of Canada, FPAC, agreeing to sanitize a swathe of the Canadian Boreal forest, and to ‘consult’ on development plans. Astonishingly, governments played no part.” The result was the Canadian Boreal Forest Agreement. The ENGOs ultimately aspired to put the majority of the Boreal forest off limits – ending economic development. Regarding the Greenpeace-promoted concept of “intact forest landscape protection,” Laurent Lessard, Quebec’s Minister of Forest, Wildlife and Parks, says it threatens “absolutely devastating” economic implications.
Resolute had been a major supporter of the Agreement and has participated in other efforts between ENGOs and industry to work out differences. Despite that, using a campaign of lies and intimidation, ENGOs have constantly attacked Resolute. At one point, in 2012, the false claims were so egregious, Resolute threatened legal action against Greenpeace – which garnered an unprecedented apology and retraction from Greenpeace. However, they came back with vengeance. Greenpeace continued to publicize the same false statements and dubbed Resolute a Boreal forest “destroyer.”
Engaged in a war without violence, Greenpeace has since attacked Rite-Aid Pharmacy for “getting millions of pounds of paper from controversial logging giant Resolute Forest Products,” calling Resolute: “a company with a history of environmental destruction.” Greenpeace was successful with a similar harassment campaign against Best Buy. Resolute was the company’s primary paper supplier, but due to the shaming, Best Buy announced it would seek other sources. Greenpeace has no plans to stop the tactic. Other targeted companies include Canadian Tire (a retailer with more than 1700 outlets), Home Depot and Office Depot, Proctor & Gamble and 3M. Foster reports: “Greenpeace itself has calculated that its campaigns have cost Resolute at least $100 million.”
Somewhere between the Greenpeace retraction and May 2013, an epiphany – similar to what occurred between the president of the U.S. and the space alien in the movie Independence Day – must have taken place. In the clip, the captured alien is choking someone with its tentacle and the president is trying to negotiate with it. He tries to reason with the alien and suggests that they could “coexist.” He asks the alien what it wants them to do. The alien simply responds: “die.” Resolute must have realized that no matter how many agreements it might sign, the global network of ENGOs come back with more and more rigid requirements until the tentacles choke the company out.
On May 23, 2013, Resolute filed a lawsuit against Greenpeace claiming it damaged the company’s “business, goodwill and reputation.” The suit asserts defamation, malicious falsehood and intentional interference with economic relations and seeks damages of $5 million as well as punitive damages of $2 million, plus costs. Greenpeace says the suit “is an effort to subdue Greenpeace into silence and send a message to other groups that they should stay quiet.” It believes the suit should have been thrown out, but despite several attempts, the Judge has disagreed and allowed unflattering accusations about Greenpeace’s global law-breaking activities to remain.
While the Canadian lawsuit makes its way through the courts and the appeals process, Resolute has just taken another bold step to defend itself against the green bully’s attacks.
On May 31, Resolute took a page from the ENGO’s playbook and, in the United States District Court for the Southern District of Georgia, filed a civil RICO (Racketeer Influenced and Corrupt Organizations) suit against Greenpeace and a number of its associates who, though they claim to be independent, act cooperatively. The RICO Act intended to deal with the mob as a loose organization, or “enterprise,” with a pattern of activity and common nefarious purposes, such as extortion. (Greenpeace has asked the Justice Department to use the RICO Act to investigate oil companies and organizations that sow doubts about the risks of climate change.)
The 100-page complaint alleges that Greenpeace and its affiliates are a RICO “enterprise.” According to the Resolute news release, it describes the deliberate falsity of the malicious and defamatory accusations the enterprise has made and details how, to support its false accusations, “Greenpeace has fabricated evidence and events, including, for example, staged photos falsely purporting to show Resolute logging in prohibited areas.” The suit also calls Greenpeace a “global fraud” out to line its pockets with money from donors and says that “maximizing donations, not saving the environment, is Greenpeace’s true objective.” Additionally, it cites admissions by Greenpeace’s leadership that it “emotionalizes” issues to manipulate audiences.
In the U.S. lawsuit, Resolute is seeking compensatory damages in an amount to be proven at trial, as well as treble and punitive damages.
Patrick Moore, one of the original founders of Greenpeace, is disappointed that the group that originally wanted to help, is now an extortion racket. He told me: “I am very proud to have played a small role in helping Resolute deal with these lying blackmailers and extortionists.”
Discovery in both the Canadian and U.S. lawsuits will open up records and could well peel back the moralist tone to expose a global job-destroying, anti-development agenda. For too long ENGOs have been allowed free rein over regulating natural resources in what is really economic warfare on workers.
At a recent meeting, the Canadian Council of Forest Ministers, according to Foster, “acknowledged that it was time to stand up and recognize ‘the significant economic implication of misinformation’” – though one has to wonder what took them so long.
Resolute is counter-punching the green bullies – and it’s about time. Just ask the coal miners in West Virginia or the farmers in Central California who are wild with enthusiasm for the Trump candidacy that promises to end the regressive regulations and return the U.S. to economic strength.
Hopefully other companies will now tune into the public’s change in attitude and, with firmness and determination, will, also, fight back to protect shareholders and workers.
By Cathy Keim
In the last few years, I have frequently pondered what it must have felt like to live in the 1930s. As much as people might have tried to ignore what was happening around them, the signs were there that a major upheaval was coming with shifts of power and subsequent grabs for land, resources, and control. As a baby boomer, I grew up with the USA being at its zenith of power. There were uneasy episodes along the way such as the Vietnam War protests, the hippie drug culture, the gas lines in 1973, and the Nixon Watergate scandal, but we were a superpower and no one thought otherwise.
However, the world seems a much less certain place today. As in the 1930s, one can see signs of global shifts of power. Which miscalculation by a diplomat or a politician will be the event that triggers an avalanche from which there is no turning back?
The totalitarian impulses which propelled the world into World War Two are showing up all around us. The difference between authoritarian control and totalitarian control are immense. A banana republic is authoritarian where the generalissimo forces people to do his will, but he does not control their thoughts. A Hitler or a Stalin demands that not only you conform to his will, but that you agree with him also. Obedience is not enough: you must like doing what you are told to do.
The progressive movement in the USA has reached this point of totalitarian control. We must conform to their demands not only outwardly, but we must inwardly accept their premises. Those of us that refuse are reviled as homophobes, bigots, racists, misogynists, haters, Islamophobes, etc. The progressives believe that they are pure of heart. They really do want what is best for us, so it is their duty to force us to do their will. Since they are pure of heart, they cannot do anything that is bad. Even if things turn out poorly, their pure motives mean they never have to say they are sorry.
In addition, you must remember that the issue is never the issue. The issue is always the revolution. The run of the mill progressives may really be pure of heart useful idiots, but the powerbrokers understand that everything is about power.
It is only when you put the events of the day in this rubric that you are able to make sense of the insane situations that you regularly confront in daily news. Occasionally you may have to pinch yourself to remember that you still live in America.
The Washington Times states: The Portland Public Schools board unanimously approved a resolution this week that bans textbooks and other teaching materials that deny climate change exists or cast doubt on whether humans are to blame.
If a mom or dad questions a book that they feel is inappropriate for their child to read in a school library, they are ridiculed for wanting to ban books, but here we have a school board denying skeptics the right to question anthropogenic global warming. So much for encouraging critical thinking.
Of course, the precedent was already set when a group of 16 state Attorney Generals announced on March 29, 2016, “an unprecedented campaign to pursue companies that challenge the catastrophic climate change narrative, raising concerns over free speech and the use of state authority to punish political foes.”
Now if we deny climate change, we can be punished for not thinking correctly. Orwell wrote about thoughtcrime in a work of fiction, but this is getting scarily close to a totalitarian state and climate change is by no means the only issue which demands the correct viewpoint.
Child abuse is considered to be a bad thing, but now it is hard to know what is considered child abuse. If I expect a male child to use the boys’ bathroom and a female child to use the girls’ bathroom, then this qualifies as child abuse if the child in question thinks that he is a girl. If I try to help this child to understand his gender, then I am a horrible person. However, if I teach little children that their gender is fluid and that they can choose whether they are a girl or a boy, then I am a progressive, pure-of-heart caring person and all is well. The chaos and destruction that will come from this pure-of-heart nonsense is not their problem. The pure-of-heart are never called to account when things go awry.
The key factor in all of this is the turning of the world upside down and ridiculing those that resist. I realize more and more that every issue I address has me sounding like a hateful, bitter clinger to the old ways. This was pressed home to me vividly when I collected signatures to defeat gay marriage in Maryland. I was moved by Christian values that place the family at the center of society. As I talked to people, I watched the tide turn against marriage between one man and one woman because the progressives used the gambit that every person has the right to marry the one that they love. Why would I deny a man the right to marry the man that he loved?
Those of us that stand for the ultimate child protection that is a stable family with a mother and a father raising their children were washed away by the lie that “love” is more important. This is the same kind of upside down thinking that progressives promote when they say that it is better to abort a child than to have them enter the world unwanted. How is murder better? Who is to say that nobody wants the child, even if the mother does not?
When the world reaches the current state of affairs where there is no right to dissent from the progressive’s agenda, then it is time for people of courage and conviction to dig in and refuse to bow the knee to their self-proclaimed masters. The cognitive dissonance that surrounds us will overwhelm us and our children unless we clearly and bravely state the truth to ourselves, our families, and our communities.
Hope dies when the truth dies. People cannot live without hope. All tyrants everywhere seek to squelch the truth because then they can truly control those around them. As a free people it is our duty to speak out against the insanity that the progressives are pushing upon us. State the truth clearly and often. To do less is to acquiesce to tyranny.