Brexit’s energy lesson for California, et al

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.”

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.

Obama’s green energy plans kill jobs, hurt consumers, and cost taxpayers

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.

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.

Under a new name, the same old ruse

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.

More hidden costs of climate compliance

June 17, 2016 · Posted in Business and industry, Delmarva items, Radical Green · Comment 

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.

Who wants wind turbines?

Commentary by Marita Noon

why would they do this

 

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 Energywhich expands on the content of her weekly column. Follow her @EnergyRabbit.

Finally, courage to counterpunch the green bullies

June 7, 2016 · Posted in Business and industry, Marita Noon, Radical Green · Comments Off 

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.

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.

On modern-day tyranny

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.

Another climate alarmist’s predictions don’t match real-world data

May 31, 2016 · Posted in Marita Noon, National politics, Politics, Radical Green · 2 Comments 

Commentary by Marita Noon

Whenever there is a new record set, whether rain, hurricane, drought, etc., those in the climate change alarmist camp seem to be quick to point to global warming as the cause and make more dire predictions regarding the future – even when there are other documented reasons and even when hard data (not models) disputes the claim. Such is the case with Lake Mead. On May 20, the federal Bureau of Reclamation announced that the nation’s largest reservoir, located near Las Vegas, NV, reached an all-time low. The current level slipped below the previous record set in June 2015.

Despite reports of the mismanagement of the important water resource, USA Today responded to the news by proclaiming: “Due to a long drought and climate change, Lake Mead’s water levels continue to fall.”

Brad Udall, a senior water and climate research scientist at Colorado State University, and brother to former Colorado Senator Mark Udall and cousin to New Mexico Senator Tom Udall, declared: “This problem is not going away and it is likely to get worse, perhaps far worse, as climate change unfolds.” According to the Desert Sun, he added: “Unprecedented high temperatures in the basin are causing the flow of the river to decline.”

Udall previously stated: “Climate change is water change. The two go hand in hand. Heat drives the water cycle. …You have to invoke temperatures to explain the current drought.”

Back in 2010, the Smithsonian magazine, cites Udall when it says: “Climate change will likely decrease the river’s flow by 5 to 20 percent in the next 40 years. … Less precipitation in the Rocky Mountains will yield less water to begin with. Droughts will last longer. Higher overall air temperatures will mean more water lost to evaporation. Udall said: ‘You’re going to see earlier runoff and lower flows later in the year’ so water will be more scarce during the growing season.”

While Udall’s statements are dramatic and coincide with the climate crisis narrative his better-known family members espouse, they do not, according New Mexico hydrologist Mike Wallace, reflect actual temperature and stream flow records in the Colorado River Basin. (I highlighted Wallace’s work on ocean acidification in December 2014.)

Both Wallace and Udall claim to be experts in the hydrology and climatology of the western U.S. Wallace has more than 30 years of experience in the field. He is currently working on his Ph.D. in nanosciences at the University of New Mexico. Under his advisor solar physicist Harjit Ahluwalia, Wallace researches solar connections to the earth’s climate with an emphasis on hydrology – the topic of his dissertation. Udall’s undergraduate degree is in engineering and he holds an MBA from Colorado State University.

However, Wallace told me: “I’m the only hydrologist who is publishing moisture and temperature forecasts in reaches of the Upper Colorado River, years in advance, with consistently high accuracy.”

Regarding Udall’s comments in the Smithsonian, Wallace, who looks at streamflow records going back to the early twentieth century, finds that streamflows have actually been going up in recent years – correlating to ocean and solar drivers.

Wallace, who counts the city of Santa Fe as one of his forecasting business clients, pioneered the discovery that moisture patterns in his area of study – which overlaps Udall’s – are deeply anchored to ocean indexes and sunspot numbers. He boldly asserts: “There is no correlation of CO2 emissions history to the moisture time series that I have evaluated. Also, for the same stations that I review there is little or no correlation of temperature to streamflow. Rather, ocean drivers can account for changes in temperature and moisture in this region, and those drivers appear to be driven themselves by solar cycles.”

While Udall believes temperatures are rising and causing reduced streamflow into Lake Mead, Wallace disputes the premise. Wallace says he has three years of successful forecast exercises to back up his claim that, in his study areas, “temperatures are hardly trending in any direction and, in any case, those temperatures are not correlating to streamflow.”

Wallace’s work focuses on streams charged by high mountains – above 9000 feet. His study regions include many of the tributaries of the Colorado River such as the San Juan River and the Green River – both of which are sourced in the Rocky Mountains. He says: “There haven’t been any unusually low streamflow rates or unusually high temperatures in my area of focus. In fact, flows are going up, not down, compared to two and three years ago and some temperatures are actually trending down over the same recent time frame.”

MWA_Projections for the Animas River Leading to the end of 2022

Using his proprietary method (patent pending) with more than 200 accurate forecasts, and applying to areas near the nexus of the Upper Rio Grande and the Upper Colorado Rivers, Wallace is projecting 3-4 years of generally increased water flows, followed by 3-4 years of generally decreasing moisture (drought). He posits that his innovations help municipalities, flood control authorities, irrigation districts, and resource management agencies better plan for future moisture and temperature conditions.

An example of real science at work without political interference, Wallace explains: “Research suggests that as the Sun’s radiant energy increases and decreases in sync with its sunspot cycles, the planet’s hydrosphere (all of the water) responds accordingly.  Others have suggested this, but I’ve taken that several steps further. First, I’ve discovered reproducible, high correlations between sun spot numbers and a few key features of Earth’s climate.  Second, I’ve developed a series of unique calculations, which additionally consider global hydroclimatological patterns, the site location and elevation, and latency effects, to produce my forecasts. A majority of those forecast exercises have turned out to be far more accurate than any competing method, including any or all of the global circulation models (GCMs) endorsed by the UN IPCC – which I believe is what Mr. Udall must be using for his assertions.”

Wallace has written and presented several papers on his discoveries. But he continues to experience resistance from major peer-reviewed journals to publish any of his findings. The troubles likely lie in his demonstrations that emissions are uncorrelated to climate in his study regions. In any case, scientific papers are often considered as precursors to actual applications, and Wallace already has a working, proven application. Even without peer journal-publication panache, Wallace is receiving steady and growing recognition from the hydroclimate community. In April, he was an invited presenter to the 30th Annual Rio Grande Basin Snowmelt Runoff Forecast Meeting, sponsored by the USDA SNOTEL network and attended by top regional hydroclimate scientists from agencies including the National Weather Service (NWS), the U.S. Geological Survey (USGS), and the National Oceanic and Atmospheric Administration (NOAA).

If Wallace is correct, and he has a successful climate forecast record to back up his projections, Udall can’t also be right. Wallace believes most of Udall’s climate assertions, such as the claim that regional temperatures explain everything about the drought, are too simplistic.  He also expresses concern regarding Udall’s use of the term “drought.”  ”To accept those Lake Mead statements as factual,” Wallace said, “anything short of an epic flooding event, must be an epic drought event.”

After all is said and done, the natural processes that Wallace has distilled down to a working forecast system, don’t, in any way, appear to fit the crisis narrative that the Udall and many climate “authorities” perpetuate. You should ask if we really need more funding, bigger departments, and greater public anxiety to fix something that, at least, in the western U.S., appears to wholly be explained by natural cycles.

(Wallace’s forecasts, profiled at www.abeqas.com, provide a sobering perspective—perhaps an antidote to the ongoing “drought” hysteria.)

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.

A lack of ink in the veto pen

I have generally associated Friday afternoon before a holiday weekend news dumps with the party of our current President, but Governor Hogan took advantage of the impending holiday weekend to announce he’s allowing 39 Senate and 45 House bills to become law without his signature. Hogan is vetoing just six bills at the end of this session, with two of them being crossfiled versions of a bill that would increase renewable energy mandates that will be featured on my monoblogue Accountability Project. In his veto letter for HB1106/SB921, Hogan conceded the idea was sound but that this measure took things too far when ratepayers are already shelling out a collective $104 million in compliance fees in 2014, the last year for which data was available.

The renewable portfolio standard wasn’t the only mAP bill Hogan vetoed – two other ones had to do with transportation and the fallout from Hogan’s decision to pull the plug on Baltimore’s Red Line. Back in April, Hogan vetoed the infamous Maryland Open Transportation Investment Decision Act of 2016 only to have General Assembly Democrats rise up and override him. The veto vote was the one I used for the HB1013 slot of the mAP.

Hogan also chastised General Assembly Democrats for their support of SB907, which would have mandated a $75 million annual payment toward a replacement for the Harry W. Nice Memorial Bridge, which carries U.S. 301 over the Potomac River between Maryland and Virginia. Hogan noted that this project is already in the pipeline, calling the legislation “absolutely unnecessary.” This will also be an mAP vote.

A third bill that I didn’t use as an mAP vote – but which also deals with transportation – was HB1010, which would have created the Maryland Transit Administration Oversight and Planning Board. Governor Hogan called it “a sophomoric attack on sound transportation policy,” noting also that the board would be stacked with members from the urban counties.

The other two bills Hogan vetoed were comparatively minor. One dealt with a proposed mixed-use project at Morgan State University in Baltimore, while the other claimed the proposed Maryland Education Development Collaborative ran afoul of the state constitution by placing General Assembly members in a position where they would be doing executive functions.

I’m sure some part of the equation whether Hogan vetoed the bills or not had to do with the likelihood of a veto being sustained, so here are the margins of passage for each of these bills:

  • HB1106: House 92-46, Senate 32-14. Override possible by 11 votes in House, 5 in the Senate.
  • SB921: Senate 31-14, House 91-48. Override possible by 5 votes in Senate, 9 in House.
  • SB907: Senate 33-12, House 90-50. Override possible by 7 votes in Senate, 7 in House.
  • HB1010: House 87-51, Senate 28-19. Override possible by 6 votes in House, but Senate can uphold veto if all 19 maintain their votes.
  • SB540 (Morgan State): Senate 41-0, House 113-22. Override likely: Senate would need to find 19 votes and House 35.
  • SB910 (MEDC) passed without objection in both houses, but will likely have GOP support for a veto. If so, they need 5 Senate Democrats or 7 House Democrats to join them.

Given those results, I’m quite disappointed Hogan didn’t veto more bills. Not only does it put Democrats on record opposing a popular centrist governor, but it also slows down the General Assembly and hopefully makes the more centrist members of the majority rethink their support of bad legislation. It was pointed out to me recently that Hogan won 71 legislative districts but only 50 Republicans were elected to the House – thus, in theory the GOP can get a majority for the first time in generations in 2018. Dream big. (Sometime I should look into this claim.)

One other issue with this is that Hogan’s slow veto deliberations removed any opportunity to petition the most egregious legislation to referendum. However, I say this knowing that we aren’t taking advantage when opportunity knocks – I honestly believe felon voting should have been petitioned to referendum (as an act this year thanks to the veto override vote, it could have.)  Let’s see if 80 percent really oppose it.

So it will turn out that the vast majority of bills on my mAP – all of which I opposed for the floor vote – will become law anyway. I think we’re reaching way too far across the aisle in this state considering how little we get in return, so in my view Hogan should have really played hardball. At some point a number of these bills are going to bite us, but now we won’t even get the luxury of a repreieve for a few months. Thanks, Larry.

Fixing the folly of food for fuel?

May 24, 2016 · Posted in Business and industry, Marita Noon, National politics, Politics, Radical Green · Comments Off 

Commentary by Marita Noon

(Editor’s note: since Marita was “not in love with” the original title and encouraged those who run her work to rename this piece, I changed it to what you see above.)

The Renewable Fuel Standard (RFS) – also known as the ethanol mandate – was passed by Congress in 2005 and expanded in 2007. Regardless of market conditions, it required ever-increasing quantities of biofuel be blended into the nation’s gasoline supply – though the Environmental Protection Agency (EPA) does have the flexibility to make some adjustments based on conditions, such as availability and infrastructure.

At the time of its passage, it was unfathomable that a decade later Americans would be consuming less gasoline, not more. Instead of requiring a set, or even growing, percentage of ethanol be used, the law called for an increasing amount of gallons – which has created unforeseen complications.

Since the law was passed, due to increased fuel efficiency and a generally sluggish economy (meaning fewer people are driving to and from work every day) we’ve been using less gasoline, not more. Requiring more and more ethanol in less and less gasoline is not what the original law intended.

It was believed that the RFS would help achieve energy independence and reduce CO2 emissions – both ideas from a different era.

The RFS was passed at the low point of a decades long decline in U.S. oil production. At the time, no one knew that the trend line would totally reverse due to American ingenuity and the innovations of horizontal drilling and hydraulic fracturing that have unleashed the new era of abundance. Additionally, it was believed that corn-based fuel (which is the primary source for ethanol in the U.S.) would reduce carbon dioxide emissions – though the results have been questionable at best.

Since the RFS became law, numerous studies have been done to determine the environmental benefit of ethanol over gasoline – many of which conclude that ethanol is actually more detrimental than gasoline. At a recent House Oversight Committee hearing, John DeCicco, a research professor at the University of Michigan’s Energy Institute, said, according to Morning Consult, “the studies assuming biofuels are carbon neutral are flawed.” Morning Consult reports: “he has found ethanol’s net emissions to be as much as 70 percent higher than traditional gasoline.”

Ethanol has an unlikely collection of opponents. Addressing ads put out by the ethanol lobby positing that only “big oil” wants to end the ethanol mandate, FactCheck.org disputes the claim: “Several environmental groups oppose it as well. So does a wide coalition that includes restaurant owners concerned about upward pressure on food prices and boat manufacturers upset at the problems that ethanol can cause in marine engines.”

Despite the controversy, the EPA claims the RFS is a “success.” Janet McCabe, acting assistant administrator for EPA’s Office of Air and Radiation, says: it “has driven biofuel production and use in the U.S. to levels higher than any other nation. This administration is committed to keeping the RFS program on track, spurring continued growth in biofuel production and use, and achieving the climate and energy independence benefits that Congress envisioned from this program.”

With this in mind, it is no surprise that the biofuel industry – which wouldn’t exist without the ethanol mandate – was unhappy when, on May 18, the EPA released its biofuel blending requirements for 2017. Using its ability to make adjustments, the EPA announcement was less than the law required, but more than the market demands. The Wall Street Journal (WSJ) states; “EPA officials said they were seeking to strike a balance between Congress’s goal of using more ethanol and the realities of the current fuel market and infrastructure.” Instead, no one was happy.

In Biomass Magazine, McCabe defends the action: “The fact that Congress chose to mandate increasing and substantial amounts of renewable fuel clearly signals that it intended the RFS program to create incentives to increase renewable fuel supplies and overcome constraints in the market. The standards we are proposing would provide those incentives.”

Chet Thompson, president of American Fuel & Petrochemical Manufacturers, which represents refineries regulated under the standard, responded: “EPA’s proposal threatens to force consumers to use more biofuel than vehicles, engines and fueling infrastructure can handle.” He says: “the proposed volumes still go beyond marketplace realities.”

In contrast, a statement from Chip Bowling, president of the National Corn Growers Association said: “In the past, the EPA has cited a lack of fuel infrastructure as one reason for failing to follow statute. Our corn farmers and the ethanol industry have responded. Over the past year, we’ve invested millions of dollars along with the U.S. Department of Agriculture’s Biofuel Infrastructure Partnership to accelerate public and private investment in new ethanol pumps and fuel infrastructure. The fact is, today’s driver has more access than ever to renewable fuel choices.”

Regarding the EPA’s May 18 decision, DeCicco told me: “The EPA is trying to pick an economic middle road between the proponents and the opponents. But, through the RFS, the environment has been run off the road. Contrary to what has been promoted by the Department of Energy and some other government agencies, biofuels make CO2 emissions worse rather than better.”

At the aforementioned House hearing, Representative Jim Jordan’s (R-OH) opening statement called the RFS “a classic example of what happens when you get a bunch of politicians together who think they’re smarter than the marketplace.”

Frank Macchiarola, downstream director at the American Petroleum Institute, is calling on Congress to “repeal or significantly reform the RFS.” He asserts: “Members on both sides of the aisle agree this program is a failure, and we are stepping up our call for Congress to act.”

Proving Macchiarola’s point, before the 2017 requirements were released, on May 10, U.S. Representatives Bill Flores (R-TX), Peter Welch (D-VT), Bob Goodlatte (R-VA), Jim Costa (D-CA), Steve Womack (R-AR), and Cedric Richmond (D-LA) introduced bipartisan RFS reform legislation. The Food and Fuel Consumer Protection Act, H.R. 5180, limits the RFS mandate to levels that our nation’s cars, trucks, boats and other small engines can safely accommodate. The bill “directs EPA to consider current market realities and cap the maximum volume of ethanol blended into the transportation fuel supply at 9.7 percent of projected gasoline demand.” Following the news, the bill’s cosponsors issued a statement calling the RFS “unsustainable.”

It is time to get back to allowing the free market – not Congress, not unelected bureaucrats, not mandates, not artificially spurred growth in a chosen industry – to determine our fuel choices. Because ethanol is an effective octane-boosting additive, it will always have market demand. Farmers who’ve invested in it will not be driven out of business. The Food and Fuel Consumer Protection Act, while not repealing the RFS outright (which would be tough to pass), offers a reasonable fix to well-intended, but flawed legislation.

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 Energywhich expands on the content of her weekly column. Follow her @EnergyRabbit.

The stampede for higher rates

Back on Tuesday I promoted Marita Noon’s most recent column on social media with the promise to do a Maryland-centric follow up “If I think about it this week.” (I planned to all along, but sometimes I forget so I figured I better cover myself.) Anyway, the passage that piqued my interest was this one:

In California, where (billionaire and liberal Democrat political backer Tom Steyer) has been a generous supporter of green energy policies, he helped pass Senate Bill 350 that calls for 50 percent renewable energy by 2030. California’s current mandate is 33 percent by 2020 – which California’s three investor-owned utilities are, reportedly, “already well on their way to meeting.” It is no surprise that California already has some of the highest electricity rates in the country. Analysis released last week found that states with policies supporting green energy have much higher power prices.

In doing research for the monoblogue Accountability Project, which I am in the process of completing now, I stumbled across two bills which dovetail nicely with both this article and another recent commentary by Noon regarding solar power mandates and incentives. I’ll tackle the latter issue first.

For several years the state of Maryland has mandated a certain percentage of electrical power be derived from renewable sources, with a proposed new version of the law (HB1106/SB921)retaining the 13.1% share required for 2017 but increasing the carveout for solar energy from 0.95% to 1.15%. This bill also proposed that the share of both renewables and solar power increase at an accelerating rate, eventually ratcheting up the requirements to 25% and 2.5%, respectively. While that would be great news for the solar industry, it would be bad news for consumers – according to the information provided with these bills the increase in monthly electric bills to an average consumer if this measure is enacted could be as much as $3.06 per month by 2020. However, Maryland’s Department of Legislative Services cautions (page 7 of the Fiscal and Policy Note) predicting this increase can only be “for illustrative purposes” because of all the factors involved.

The reason behind the rate increases is the payment to the state called the Alternative Compliance Payment (ACP), which also is affected by the bill. The proposal actually would decrease slightly the ACP for all renewable energy sources except solar from 4 cents to 3.75 cents per kilowatt-hour, or, in a more practical term, from $40 per megawatt-hour (MWh) to $37.50 per MWh. (An average home is considered to use 1 megawatt-hour of electricity per month.) It also gives utilities a temporary break on the solar energy carveout, where the fee for a shortfall would decrease from a scheduled $200 per MWh in 2017 and 2018 to $195 and $175 for 2017 and 2018, respectively. The fee would increase in the out years, however.

When the Fiscal Note predicts that the state itself would incur an additional $2.2 million in electrical costs by 2021, it’s obvious that this proposal would be a costly one for consumers. At this point the bill is in limbo, as it was passed by both the House of Delegates and Senate but has not been signed or vetoed yet by Governor Larry Hogan.

Now let’s turn to the most recent commentary from Noon, where she notes California will mandate 50 percent renewables 14 years hence. Unfortunately, Maryland is not that far behind them as they just enacted SB323, which will take effect in October. Instead of letting this silly notion that our little state can actually do something about climate change by reducing our energy consumption expire – as it would have with no action - this bill instead maintained a 25% by 2020 mandate and increased the mandated energy reduction to 40% by 2030. As an analysis Noon used in her piece shows, Maryland is among the states with the highest electricity bills and follies such as these are a reason why.

Don’t get me wrong: I am definitely for energy efficiency, but it should be in terms of consumer choice rather than government fiat. Those who create and pass the laws rarely embark on any sort of dynamic cost/benefit analysis for their policies, so in this case they’re not considering the effect on ratepayers and job creators in balance with the very dubious pie-in-the-sky notion of affecting our climate. (After all, if it was once warm enough to have the polar expanse of Greenland actually be green, as it was around the turn of the previous millennium – well before the Industrial Revolution or the car-happy society we inhabit now – then how much effect do we really have?) We can hardly predict with any certainly the weather two weeks from now, so why should we trust the accuracy and inerrancy of a climate forecast for 2050 when it’s used as an excuse for confiscatory policy that indirectly benefits those making the forecast?

As I brought up the monoblogue Accountability Project earlier, it shall be noted that the votes on both these bills will be used for this year’s mAP. It’s a shame that just 39 Delegates out of 141 and only two (yes, two!) Senators out of 47 have the potential for getting both these votes correct. Maryland has a relatively powerful environmental lobby thanks to its straddling of Chesapeake Bay, but these were cases where the state’s budding attempt to be more business-friendly and hopefully end its economic reliance on big government should have held sway. While Governor Hogan erred in signing the climate change folly, he can do a more concrete favor for businesses and ratepayers by vetoing HB1106/SB921 and creating a proposal to sunset the ACP for next year’s session.

And while we are at making energy policy, I encourage Governor Hogan to follow the lead of his friend and cohort New Jersey Governor Chris Christie and remove Maryland from the membership rolls of the Regional Greenhouse Gas Initiative. Utilities (and their ratepayers) will thank him from getting us out from under that wealth transfer boondoggle.

Is the green’s “Daddy Warbucks” helping the planet or himself?

May 17, 2016 · Posted in Business and industry, Marita Noon, National politics, Politics, Radical Green · Comments Off 

Commentary by Marita Noon

Any comprehensive review of green energy and its politics and policies has to include the name of wealthy liberal Tom Steyer – who has been called the environmental movement’s new “Daddy Warbucks.”  Having made his billions from his tenure atop Farallon Capital Management – much of it from coal projects around the world – Steyer apparently had an environmental epiphany and now wants to atone for his past sins by trying to save the planet from manmade climate change.

He is using his wallet to try to elect candidates who will promote policies and energy plans that agree with him. And that plan is “green.” As I’ve previously reported, he spent nearly $75 million in the 2014 midterms and intends to top that for the 2016 election cycle. Steyer - a long-time donor to Democratic causes - was a 2008 Hillary Clinton supporter. After her campaign failed, he emerged as a bundler for Obama in 2008 and again in 2012. Additionally, Steyer is a Clinton Foundation donor, and last year, at his San Francisco home, he held an expensive fundraiser for Clinton’s 2016 presidential run.

Along with researcher Christine Lakatos, whose Green Corruption File was recently praised on the Michael Savage Show, I’ve repeatedly addressed Steyer’s involvement through our work on President Obama’s Green-Energy Crony-Corruption Scandal. Anytime there is a pot of government money available for green energy, as Lakatos found, Steyer’s name seems to be attached to it. Some of the most noteworthy include: Sungevity, ElectraTherm, and Project Frog – all funded by Greener Capital (now EFW Capital), which is a venture firm that invests in renewable energy, with Steyer as a known financial backer.

Steyer claims to have “no self-interest” in his political activism. The Los Angeles Times quotes him as saying: “We’re doing something we think is good for everyone.” Yet, as Forbes columnist Loren Steffy points out, he is spending his fortune lobbying for “short term political gains” rather than into research and development “aimed at making renewables economically viable.”

While he may say what he is doing is good for everyone, the policies he’s pushing are good for him – not for “everyone.” The Washington Post called him: “The man who has Obama’s ear when it comes to energy and climate change.” In California, where he has been a generous supporter of green energy policies, he helped pass Senate Bill 350 that calls for 50 percent renewable energy by 2030. California’s current mandate is 33 percent by 2020 – which California’s three investor-owned utilities are, reportedly, “already well on their way to meeting.” It is no surprise that California already has some of the highest electricity rates in the country. Analysis released last week found that states with policies supporting green energy have much higher power prices. In October, Steyer spent six figures for an ad campaign calling for the next president to adopt a national energy policy similar to California’s: “50 percent clean energy mix in the U.S. by 2030″ – which will raise everyone’s rates.

With Steyer’s various green-energy investments, these rate-increasing plans are good for him but bad for everyone else – especially those who can least afford it. And, it is the less affluent, I recently learned, he’s targeting with predatory loans for solar panels through Kilowatt Financial, LLC, (KWF) – a company that listed him as “manager” on corporate documents. KWF recently merged with Clean Power Finance and became “Spruce.” The financing structure used, according to the Wall Street Journal (WSJ), allows “homeowners to get solar systems at no upfront cost and then to pay monthly for the use of the power generated. Homeowners end up saving on their total electricity use, while financing companies get steady revenue over 20 years.” WSJ, points out, the KWF financing can be offered to “people who wouldn’t be approved otherwise.”

In the KWF model, contracted payments come from homeowners and “create a steady and reliable income stream, part of which is owned by its venture investors, including Kleiner Perkins.” About the arrangement, KWF chairman and Chief Executive Daniel Pillmer said: “Kleiner Perkins will make a lot of money.” Apparently, the money to be made is from selling the loans that are then securitized on Wall Street – much like the “sub-prime” mortgage crisis that offered loans to people who couldn’t qualify with “traditional lenders.” KWF’s website brags: “We support financing terms for almost every customer and provide ways for dealers to participate in the pricing process to generate even more approvals and create even lower consumer rates.” KWF offers “Instant Approvals, even for customers with lower credit scores” and “Same-as-Cash and Deferred Payment Offers.” In these types of payment plans, a low rate is usually offered in the beginning and increases retroactively if all the terms of the loan are not met.

In this model, the homeowners don’t actually own the solar systems – which means KWF receives the benefit of the federal tax incentives, such as the 30 percent federal “Investment Tax Credit,” designed to benefit the owner of the solar system.

It is practices like this that have drawn the ire of Congress. Several congressional Democrats sent a letter to the Consumer Financial Protection Bureau that warned about the similarities between the solar industry and what led to the subprime mortgage crisis: “easy initial financial terms, increased demand and a rapidly expanding industry.” These factors create a high risk potential that could, ultimately, be harmful to consumers. Similarly, Republicans sent a letter to the Federal Trade Commission that noted pressure from Wall Street is reportedly leading companies who use “potentially deceptive sales tactics” – which doesn’t sound like it is something that is “good for everyone.”

Yet, it is these very types of finance products, promoted by Steyer’s Kilowatt Financial that Greentech Media reports are “doing well.”

While Steyer claims to want to give everyone a “fair shake,” his pet policies increase costs for everyone, and offer a hand-shake for Wall Street. Steyer and his billionaire buddies win, “everyone” else loses. This is how the green-energy crony-corruption scandal works: the political pals profit while the taxpayers get fleeced.

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.

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