You probably recall that last month I detailed a study claiming that wind-created energy saved consumers $1 billion in last year’s “polar vortex.” Ironically enough, it was released on the anniversary of the 2014 polar vortex in the midst of more unusually cold weather at a time when the favored energy source of natural gas was serving the twin masters of electricity generation and home heating.
Yet a bone of contention for the wind industry has been the overdue renewal of a production credit of 2.3 cents per kilowatt hour, allowed over the first ten years of a qualifying project’s life. A five-year extension of this credit, sponsored by Senator Heidi Heitkamp of North Dakota, was included in an amendment to the Keystone XL authorization bill in the Senate, but the amendment lost 47-51. One opponent of the credit, Americans for Limited Government, called it:
(J)ust another example of the crony capitalism that runs rampant in Washington, D.C. distorting our nation’s energy markets while encouraging the non-economically sustainable wind farming of America.
Of course, the American Wind Energy Association, while touting the increased capacity put into place last year, lamented the lack of this tax incentive:
2014 saw the completion of 4,850 megawatts (MW) in generating capacity, with cumulative installed capacity increasing eight percent to a total of 65,875 MW. That current wind capacity will avoid over 130 million metric tons of CO2 emissions annually, equal to taking 28 million cars off the road, when the current wind capacity produces generation for a full year.
However, the amount installed in 2014 still falls far short of the record 13,000 MW that the U.S. wind energy industry was able to complete during 2012.
Industry leaders blamed uncertainty over federal policy. The renewable energy Production Tax Credit was only extended for two weeks at the end of last year, and has now expired again.
“Wind is gaining strength, but as recent history shows, we can do a whole lot more,” said AWEA CEO Tom Kiernan. “We’re looking forward to working with Members of Congress from both sides of the aisle so that a reasonable, responsible tax policy is in place that allows the wind industry to continue lowering costs and investing billions of dollars in U.S. communities.”
So is it a “reasonable, responsible tax policy,” or a boondoggle?
As noted above, the tax credit is equal to 2.3 cents per kilowatt hour. According to the Energy Information Administration, the average American home uses just over 900 kilowatt-hours of electricity per month. Rounding down to 900 for ease of math, it means that each month a wind-powered home creates a tax credit of $20.70 – over a year that adds up to $248.40.
In the same AWEA release, they claim that “U.S. wind farms now provide enough power for the equivalent of 18 million typical American homes.” If this is so, then the annual cost of this tax credit would be nearly $4.5 billion. Granted, this assumes that all wind capacity in the country would qualify for the credit, but stick with me.
Yesterday our not-so-illustrious former governor Martin O’Malley blustered in the New York Times that:
(R)enewable-energy businesses still aren’t even competing on a level playing field with fossil-fuel companies, which enjoy more than $4 billion in guaranteed federal subsidies each year.
Yet if you work out the wind power tax credit, that section of renewables could get a tax break exceeding $4 billion per year, not to mention the carve-outs states like Maryland provide for renewables at the expense of less expensive and more reliable fossil fuels. The benefit of having a share of a market worth tens of billions of dollars handed to renewable energy (or, as is more common, the treatment of this rent-seeking as a penalty paid by energy companies) is rarely factored into the equation, but stands as an advantage for the renewables side that traditional sources do not enjoy.
To really get a sense of where wind power can compete, not only should we permanently eliminate the Wind Production Tax Credit, but also do away with the market share requirements for renewables. Only then can we get a sense of where the market really is for that type of energy.
There’s a reason we have cars that run on gasoline, electrical plants which run on coal and natural gas, and fervent exploration for new sources of oil, just as there’s a reason wind turbine construction came to a near-halt in 2013. The market seeks its own level.
In the quest to get America back to making things, it was good news to find that manufacturers added 17,000 jobs in December. That brought the 2014 growth in that sector to 186,000, continuing the steady growth in that sector since the job market hit bottom there in 2009-10. When you consider that 2012 predictions saw the manufacturing sector losing jobs through this decade, having a very positive number nearly halfway through is a good sign.
Naturally Barack Obama tried to take some credit for this during a speech at a Ford plant near Detroit last week. As I noted in a piece I wrote for the Patriot Post, it’s ironic that the plant was idled due to slow sales of hybrids and small cars built there, but the auto industry has played a part in the resurgence of manufacturing jobs in America. This is particularly true in the construction and expansion of “transplant” auto plants in the South by a number of foreign automakers.
But there has been criticism of Obama from his political peers. As a carryover from my American Certified days I often quote Scott Paul, the president of the Alliance for American Manufacturing, because his organization is strongly influenced by Big Labor and presumably supported Obama in both his elections. Yet Paul is none too happy with Obama’s progress:
Manufacturing job growth slowed to 17,000 in December, which portends some of the challenges an overly strong dollar, weak global demand, and high goods trade deficits may bring in 2015. While President Obama is touting factory job gains and our Congressional leaders are looking for ways to rebuild the middle class, what’s missing for manufacturing is good policy.
Congress and the president need to hold China and Japan accountable for currency manipulation and mercantilism, and invest in our infrastructure. New innovation institutes are a good thing, but their presence alone won’t bring manufacturing back. And as the president enters the final half of his second term, he’s falling way behind his goal to create one million new manufacturing jobs.
The innovation institutes Paul refers to are public-private partnerships being created around the country in various fields, in the most recent case advanced composites. But Obama lags behind on his promised 1 million new manufacturing jobs for this term as it nears the halfway mark as he’s created just 283,000. It’s great if you’re one of those newly employed workers, but his policies are leaving a lot of chips on the table. In fact, National Association of Manufacturers economist Chad Moutray frets that:
…manufacturers still face a number of challenges, ranging from slowing global growth to a still-cautious consumer to the prospect of increased interest rates. With the start of the 114th Congress, manufacturers are optimistic that there will be positive developments on various critical pro-growth measures, including comprehensive tax reform, trade promotion authority and a long-term reauthorization of the Export-Import Bank, and focusing on important infrastructure priorities like building the Keystone XL pipeline and addressing the solvency of the Highway Trust Fund.
While manufacturers would like to see these measures, attaining some of them may be tough sledding in a conservative Congress. There are a number of representatives and conservative groups who don’t want to give the President fast track trade authority, wish to see the Export-Import Bank mothballed out of existence, and will not consider increasing the federal gasoline tax – an action for which Moutray uses the euphemism “addressing the solvency of the Highway Trust Fund.” These actions may benefit the large manufacturers but won’t help the bread and butter industries solely serving the domestic market like the 24-employee machining shop or the plastics plant that employs 80.
Turning to the state level, our local manufacturing (so to speak) of poultry has a big week coming up. On Wednesday morning, the final deadline to submit new regulations to the Maryland Register for the January 23 printing will pass. You may recall that the December 1, 2014 Maryland Register featured the new Phosphorus Management Tool regulations as proposed (page 1432 overall, page 18 on the PDF file.) The new regulations were not in the January 9 edition, so January 23 may be the last chance to get these published under the O’Malley administration due to the deadline being set in MOM’s waning days.
Yet I’m hearing the rumors that a legislative bill is in the works, to be introduced in the coming days by liberal Democrats from across the bridge. Doing this legislatively would perhaps buy a few months for local farmers because such a bill would probably take effect in the first of October if not for the almost certain veto from Governor Hogan. If Democrats hold together, though, they would have enough votes to override the veto in January 2016, at which time the bill would belatedly take effect. Still, it will be difficult to stop such a bill given the lack of Republicans and common-sense Democrats in the General Assembly. To sustain a Hogan veto would take 57 House members and 19 Senators, necessitating seven Democrats in the House and five in the Senate to join all the Republicans.
We haven’t received the data yet to know whether the installation of Bob Culver as County Executive was enough to break an 11-month job losing streak year-over-year here in Wicomico County, but his task would be that much tougher with these regulations put in place.
Last week, Mark Green at the Energy Tomorrow blog posted a critique of the proposed fracking regulations Maryland may adopt in the waning days of the O’Malley administration. In his piece, Green stressed that Maryland needed to adopt “sensible” restrictions but feared Maryland would go too far. It was echoed in the Washington Post story by John Wagner that Green cites.
But the money quote to me comes out of the Post:
“In the short term, as a practical matter, the industry will probably choose to frack in other states than Maryland where the standards are lower,” O’Malley said. But in the longer term, he said, “it could well be that responsible operations may well choose to come here.”
Or maybe not, which seems to have been the goal of O’Malley and Radical Green all along. It’s funny that they don’t seem to have the objections to wind turbines dotting the landscape despite their own health issues. Certainly no one studied them to death.
Being a representative of the energy industry, Green naturally argues that “sensible” regulations are similar to those already in place in states which already permit the practice. As he notes:
Hydraulic fracturing guidelines developed by industry – many of them incorporated into other states’ regulatory regimes – offer a sound approach proved by actual operations.
I can already hear the howling from Radical Green about the fox guarding the hen house, and so forth. But is it truly in the interest of industry to foul its own nest?
On the other hand, the success of fracking and other domestic exploration may create an interesting situation. Even back in October, when oil had declined to $90 a barrel from a June peak of nearly $115 a barrel, analysts were speculating on the effects the drop would have on the budgets of OPEC member nations. Now that oil in closing in on $60 a barrel, the economic effects on certain nations will be even more profound, and contrarian economic observers are already warning that the oil boom is rapidly turning into a bust with a ripple effect on our economy.
Even the revenue scheme by which Maryland would collect a sales tax on gasoline depended on gas prices staying somewhere over $3 a gallon. Assuming the price of gasoline stays at about $2.70 per gallon through the first of the year, the predicted 8-cent per-gallon rate will only be 5.4 cents. (The sales tax on gasoline is slated to increase to 2% on January 1.)
In any case, there is a price point at which non-traditional oil extraction such as fracking or extraction from tar sands – the impetus for the long-stalled Keystone XL pipeline – becomes economically non-viable. I had always heard that number was $75 per barrel, which was a number we had consistently hovered above for the last half-decade. Now that we are under that number, the question of exploration in Maryland may be moot for the short-term, although the price of natural gas is only slightly below where it was this time last year so that play is still feasible.
Whether the decline in oil prices is real or a manipulation of the market by a Saudi-led OPEC which is playing chicken with prices to try and restore its bargaining position by outlasting domestic producers, it may be yet another missed opportunity for Maryland as it could have cashed in during a difficult recession and recovery if not for an administration which believed the scare tactics and not what they saw with their own eyes as neighboring Pennsylvania thrived.
Rather than talk about the executive amnesty that I fear the Republican leadership in Washington will find a way to accommodate, I want to show you how the other half lives.
Many months ago I somehow got on the mailing list of a liberal Democratic candidate named Rick Weiland, who ran and lost this month for the Senate seat in South Dakota. Senator-elect Mike Rounds crushed Weiland by 20 points in the election but for some reason Weiland still thinks he’s relevant and decided to take out his frustrations using the Keystone XL pipeline vote as the vehicle. While I took out the fundraising appeal links, this is still fun to observe:
The only crock bigger than the Keystone Pipeline is Senate Democrats dumping on our environment to try to save one of their own.
Talk about business as usual, talk about midterm lessons unlearned, talk about just plain stupid!
You’ve already lost the Senate. Polls show that Mary Landrieu, whose runoff election you hope to influence, has absolutely no chance of winning. So what do you do, backstab your president, our Native Nations and the entire environmental community on behalf of a pipeline that will not only not create jobs or any energy security, but will pour additional billions in profits into the hands of the big money special interests who just spent a fortune to crush your party at the polls.
That’s genius, DC Democrat style. And it is the reason my campaign is not over. In fact, it has just begun. As a political party, and as a country, we have one chance and one chance only. END THE HAMMERLOCK BIG MONEY HAS ON BOTH OUR POLITICAL PARTIES.
If you would be willing to help us, click here.
For 18 months we ran for Senate with little more than my videographer son Nick, myself, a lot of shoe leather, and the help of a handful of friends with more passion and skill than common sense.
I want to keep that team together, retire our small debt, and get back into the fight, right now. If the DC Democrats selling us out on Keystone XL doesn’t show why we can’t wait, what will?
Please, send just a few bucks and stay tuned. We may have gotten washed over by the same wave that drowned so many Democrats. But unlike them, we’re not rolling over, belly up and bloated, we’re fighting on.
We are going to make South Dakota a demonstration project, and a nationwide beacon for the fight against big money.
And if you don’t think that matters to you, think about this. Does Elizabeth Warren’s voice matter beyond the boundaries of Massachusetts, or Bernie Sanders beyond Vermont, or did Paul Wellstone make any difference outside of Minnesota?
If you can help, click here.
We have assembled a merry band of very low maintenance truth tellers out here on the prairie. Keep us going with a buck or two and you’ll get the most entertaining, noisy, truth to power megaphone in America. Maybe you’ll even get a new song or two!
So stay tuned. We are not done yet, and Keystone XL shows why.
The fight for a constitutional amendment and other reforms to drive big money out of politics and put the most constitutionally ignorant Supreme Court in American history back in the jack in the box from which it sprang has got to be won or it will be Keystone XLs and stolen Presidential elections as far as the eye can see.
Yes, this guy is apparently serious. Dude, you didn’t fall victim to a “wave” when you got less than 30 percent in a statewide election. Nor does Weiland admit that there were big-money donors on his side as well – then again, the guy is way out on the edge on some issues, like ethanol, so there will always be some who think he’s the best thing since sliced bread.
While Weiland has a point about the cynical political games being played in Washington, the problem isn’t the Keystone vote, the fate of Mary Landrieu, or any sort of political contribution. In fact, I would argue the Keystone XL pipeline would be the best bet for the environment because Canada is going to extract those tar sands whether environmentalists like it or not. We can pipe the oil underground in a vessel which would provide relatively trouble-free transport or we can ship it by rail car with the inherent safety risks. (Or Canada can pipe it to the Pacific coast and send it by tanker to China, which has its own set of perils.) To me, Keystone XL makes a whole lot more sense than growing corn to be fuel for the family SUV and not food for the dinner plate.
But I suspect Rick Weiland would have found something to complain about besides his dismal electoral record – he’s now lost statewide elections in 1996, 2002, and 2014. His “fight against big money,” though, is truly against the wrong source of that massive pile of cash – after all, we spend more on many other common items than all the 2014 federal campaign spending put together.
But the $3.7 billion spent on the 2014 election is a rounding error that’s a factor of about 1 to 1,000 what the federal government spends each year. THAT is the pile of money which we need to address by shrinking it to a more appropriate Constitutional size. As I see it, less money in Washington would lead to less incentive to spend a lot on campaigns.
The example of Weiland well illustrates how the other side feels. To them, it’s all about the feelgood issue du jour, whether its the Keystone XL pipeline, the Citizens United decision, or one of another hundred things where life is unfair and the only solution is bigger government. Yet we have tried it their way for over 80 years now and problems aren’t being solved. This is the question they need to honestly ask themselves: with their track record, is government the answer to problems or does it perpetuate those issues to maintain a reason for existence? To bring it closer to home, ask yourself what happens to the Chesapeake Bay Foundation if the waterway is ever cleaned up?
We have entered the era of the perpetual campaign, which in and of itself provides a reason for being. If government was truly practiced in the best interests of the people, the big news of the day wouldn’t come from Washington or the state capitals but from the achievements of the common man which still occur throughout our nation. Getting money out of politics isn’t the answer – the solution really lies in rightsizing our government.
It was a fairly packed house at the Veterans of Foreign Wars Post 194 in Salisbury as Congressman Andy Harris held the second of four proposed town hall meetings in the district. After speaking in Easton on Wednesday, many of those same topics came up last night.
But the first order of business was recognition. After pointing out that unemployment among veterans was higher than the average – “I can’t figure that out,” Harris said – Andy presented a Congressional Citation to Chris Eccleston, who operates Delmarva Veteran Builders, a local construction firm which specializes in giving veterans job opportunities upon return to civilian life.
Once that presentation was out of the way, Harris introduced his “three things of great concern.”
As opposed to past negativity about the situation, Andy considered the declining deficit as a piece of good news, noting that federal spending had been fairly level for the last three years. The annual deficit is down $550 billion from its peak, although the aim of the House is to eventually bring the budget back to balance. Andy, however, conceded that the “House’s goal is to balance the budget in ten years.” So while it was still important, Andy wasn’t as concerned about this as he was the following three.
He also said there was “good news on the energy side,” pointing out we now produce more oil than we import and should be the leading world producer of both oil and natural gas by year’s end. The oil production was helped by technology which allowed what he called secondary and tertiary production from existing wells, as opposed to the primary production from new drilling.
On the other hand, Harris believed that, “in terms of immigration, the system is broken.”
“The border is just not being enforced,” he added, noting that Texas Governor Rick Perry has called out his state’s National Guard to assist with border security. In legislation recently passed by the House, added Harris, funding was included for governors who, like Perry, decide to call up their National Guard to address the situation.
“We can’t afford to have a border that’s not secure,” explained Harris.
The news was equally troubling on the foreign policy front. “The world is more dangerous now than it was six years ago (before Obama took office),” said Harris. It wasn’t just the Middle East, either – Andy touched upon the Chinese carriers now patrolling the South China Sea, well outside their territorial waters.
And while we were reaping the effects of our decrease in defense spending, Andy continued, we were also suffering from a lack of trust. Our allies could now doubt our sincerity based on recent actions.
After expressing his main concerns, Andy took questions from the audience. As my editorial license, I’m going to cluster them into areas of concern – on top of the list was our most recent crisis.
Immigration. Many of the questions dealt with various aspects and concerns from those attending about the situation on our southern border and the resettlement of “unaccompanied children.”
Much of the problem could be traced to the passage of a 2008 bill intended to counter human trafficking. Andy noted that the law as written provided the assumption that children from certain Central American countries were being brought for the sex trade, which was a problem at the time. It was estimated that perhaps 2,000 children a year would be affected, with the idea being that these children would get a hearing to ascertain their status.
Unfortunately, the crush of those claiming status under this law and the DACA order signed by Barack Obama in 2012 means that the waiting period for these hearings is anywhere from 18-60 months – and only 46% of those called show up, Andy said. One third of them are “granted status,” he added.
“We should close the loophole,” said Harris. “I don’t see how you get out of the problem without changing the law.” We also needed more judges on a temporary basis to expedite the hearing schedule.
A solution the House could offer to rescind Obama’s order would be that of defunding the executive action, for which there was a bill. And while some were pessimistic about such action given the Senate, Harris stated that the Senate could agree to “a compromise deal over a much larger package.” My concern would be what we would have to trade away.
Andy also pointed out that the resettlement of these children was more or less being done without telling local officials, noting when the Westminster facility was being considered the word came down late on a Thursday afternoon in a week the House wasn’t in session on Friday. It eventually led to the question about those being placed in Maryland.
When asked how many were in the First District, Harris conceded he had “no idea…nobody’s telling us.” But he continued by saying, “your school system will be affected,” adding that many of these children can’t read or write in Spanish, let alone English.
And the fact that these children aren’t necessarily being screened, vaccinated, or quarantined if necessary was also troubling to Harris. “The CDC is cognizant of it,” said Harris, who had spoken himself with the CDC head. Of course, the children are but a small portion of those crossing – perhaps 10 percent, said Harris.
“The real solution is you have to secure the American border,” concluded Harris. Rapid hearing and swift repatriation would send the message to parents in the host countries that it’s not worth the expense and risk to send children northward to America.
The VA situation. Given that the town hall meeting was being held in a VFW hall, there were concerns aplenty about the state of the Veterans Administration and its health care.
As part of a VA reform bill which recently passed and the VA has 90 days to implement, veterans who live over 40 miles from a VA facility are supposed to have the option of a private physician to address their needs. But Harris pointed out there was some interpretation involved based on whether the VA would extend that standard to an appropriate facility for the type of care needed – for example, something only handled in Baltimore. Harris hoped the interpretation would allow veterans on the Lower Shore to use closer local facilities, for which our local regional medical center could be a substitute provider, rather than make them travel to Baltimore because there was a VA clinic inside the 40-mile range but it couldn’t address the need. “They regulate, and we have to watch them,” said Andy.
The ultimate goal was “to make the VA system compete,” said Harris.
Entitlements. On a related note, one questioner asked about protecting Social Security and Medicare.
Andy believed that “you can’t change the law retroactively,” meaning that the status quo should prevail for those 55 and older. On the other hand, those in the younger generation “don’t expect all of it,” so the time was now to begin the discussion on preserving what benefits we can. The question was no longer if we got to zero in Social Security and Medicare, but when – Social Security tax receipts peaked two years ago and were now slowly declining . “We know the figures,” added Andy.
The system is “not sustainable…shame on us” in Congress for not addressing it.
Foreign policy. There were a couple questions which dealt with this topic, one on Ukraine and one on defunding Hamas.
Regarding Ukraine, one piece of “bad news” which could affect us locally was Russia’s decision to halt chicken imports from America. Their preference for dark meat nicely complemented our love of white meat, so while it wasn’t a large market it was an important one.
But in the geopolitical sense, Harris was relatively blunt. “We let it all go too far (and) should have put a stop to this in Crimea.” Andy pointed out that Ukraine gave up its nuclear weapons in the Budapest Memorandum, which we were a party to along with Great Britain, Russia, and Ukraine. As expected, Russia violated its end of the deal, but Harris noted “I don’t know where it ends.”
As for defunding Hamas, the House did so in its FY2015 budget. In it is a provision that states if Hamas is included in a Palestinian Authority government, we would withhold funding from them.
Andy added that he was “disappointed” in the administration’s lack of Israel support, and blasted Hamas for “purposefully aiming (their rockets) into civilian areas – that’s terrorism.” He added, “The war was started by Hamas…Israel has to end it.”
Impeachment/lawsuit vs. Obama. It actually started as a comment from the audience while Harris was explaining his answer to the immigration issue and Westminster situation.
“I think Obama is an enemy of the country,” it was said. And when Andy pointed out he was duly elected as President, stating, “nobody is claiming (Obama) wasn’t elected fair and square,” the audible murmur in the audience indicated otherwise.
But Andy believed suing Obama over his lack of adherence to the Constitution was the best choice. “Let the Supreme Court decide,” he said, as the proper procedure for changing law was supposed to lead through Congress. He would not vote for impeachment, but would rather the lawsuit run its course. I don’t think that was the popular sentiment of those assembled.
Term limits. This was actually the first question out of the chute, and Andy was clear about the questioner’s desire to see them enacted: “I couldn’t agree with you more,” said Harris. He bemoaned the lack of co-sponsors to a Joint Resolution he introduced last year holding both Senators and members of Congress to 12-year limits. “Part of the problem is that people view it as a lifetime job,” said Andy. Most agree term limits are necessary, so Andy held out hope that the 2014 campaign will bring out a new “Contract With America” promising a vote on the issue.
Common Core: It was actually asked as an awareness question regarding the new AP history framework, to which Harris could only promise to “look into this.” But there was language being considered for the appropriations bills which stated the federal government couldn’t provide incentives to adopt Common Core, as they did for Race to the Top federal funding.
Transportation/energy. Answering a question about bringing light rail to this area, Harris opined it was “some of the least efficient ways to transport people.” He preferred a surface transportation system, such as busses, because they’re more flexible – if the development doesn’t follow the rail system, there’s no chance of adjusting it to suit.
On the related subject of energy, Harris believed it was easier to produce fossil fuels while researching the next generation of energy harnessing, such as fusion or hydrogen cells. At this point, “fossil fuels are the coin of the realm,” Harris said.
Maximizing our resources also provides us an opportunity to counter Russia’s “ability to use energy for bad ends.” He also warned that Canada would either send its crude to us through the Keystone XL pipeline or ship it to China.
Manufacturing. Finally, we’ll get to the question I asked about making things in Maryland and America.
Andy began his answer by referring to the practice of tax inversion, which has made news lately. He blamed our “horrendous” corporate tax rates for being an incentive for companies to stray offshore, or even just across the border to Canada (which has a 15% corporate tax rate compared to our 35%.) “We live in a global environment,” said Andy, so the obvious solution was to cut our corporate tax rates.
Rather, Washington was thinking about trying to make the practice more difficult. Harris feared it would encourage more inversions.
Other steps to getting things made in America were to continue promoting cheap energy – as methane is the basis for many plastic products, having an abundant supply would be crucial in that area of production. We could also work on scrapping some of the over-regulation plaguing our job creators.
After the hourlong forum, Andy stayed around for more questions and answers. I thought the give-and-take was excellent, and it’s a shame more local media wasn’t there.
Although Jenna Johnson’s Washington Post piece described Governor Martin O’Malley as “brusque…terse and often lack(ing) patience” during a Board of Public Works meeting, that meeting still netted Dominion Resources another small step toward investing $3.8 billion into upgrading their Cove Point facility by allowing them a tidal wetlands license. O’Malley joined Comptroller Peter Franchot and Treasurer Nancy Kopp in approving the permit, leaving only federal authorities in the way. The permit was for a temporary pier to offload construction supplies for the project, which environmentalists fear will lead to further extraction of natural gas in the region for export.
To me, it wasn’t a vote O’Malley wanted to take, and he really didn’t have to – his vote against would have only made it a 2-1 decision. But to do otherwise would have left another black mark on his administration’s legacy of making Maryland one of the states most unfriendly to business in the nation, even though the permit would have gone through.
And it’s not like environmentalists aren’t winning the war despite losing that battle – the prospect of fracking in Western Maryland is growing dimmer by the day given some market saturation and the outlandish regulations proposed for drilling – never mind the possible benefits that would bring. But O’Malley had to disappoint the few hundred who are passionately opposing the remodeling of the LNG terminal in Calvert County.
At this point, though, it’s all about promoting the legacy and let’s face it: are the environmentalists going to vote for Larry Hogan? Well, there is that slight possibility but when the Washington AFL-CIO and other trade unions support Cove Point, O’Malley can’t afford to alienate that group. That’s hundreds or even thousands of motivated voters he has to keep in the Anthony Brown camp. So Martin O’Malley will hold his nose and vote for Cove Point, all the while hoping that his buddies at the EPA or somewhere else in the federal government will bail him out by turning thumbs-down on the project at a late stage. After all, if they can stall the Keystone XL pipeline for this long, pushing back a project just a few miles outside Washington, D.C. is almost a no-brainer to them.
So when Martin O’Malley acts like a petulant child in a meeting because he knows he has to take an unpopular vote, we shouldn’t feel any sympathy for him. He’s left a whole lot on the table insofar as benefiting from our American energy boom goes and he knows it.
This morning most of my usual rundown of items that, as always, don’t merit a full post but perhaps 1-3 paragraphs, concern the goings-on here in the great state of Maryland. (Note: additional update at bottom.)
I’ve heard so much over the last week about the gas tax: first it was off the table in favor of an income tax hike, and now it’s just being backed up to the end of the General Assembly session. The Senate Republican slate is still pressing the anti-gas tax website, though, also making the point that the Transportation Trust Fund is about the least trustworthy option for placing extra revenue.
And gas prices aren’t just a state issue. The Republican Study Committee, a group of conservative Congressional Republicans, raises a valid argument:
Oil production on private and state-owned land – land beyond the federal government’s grip – grew 14% last year. At the exact same time, production on federal land fell 11%. Gas prices have nearly doubled since Obama’s inauguration, and energy analysts predict that more Americans than ever before will pay $5.00 per gallon this year.
The President’s response to soaring gas prices is to shrug his shoulders and say, “There’s not much we can do.” And his Secretary of Energy Steven Chu has actually called for raising gas prices to European levels. Italians currently pay about $9.00 per gallon!
This isn’t the energy policy Americans deserve. Aggressively increasing our energy production will help lower gas prices and create more jobs. To do it, we must unlock more areas for exploration, cut through the red tape that slows production, and green light common sense projects like the Keystone XL pipeline.
The smart and responsible path to American energy security is clear, and the Republican Study Committee’s Jobs Through Growth Act shows the way. We quite literally cannot afford to wait. (Emphasis mine.)
Read that first sentence again – oil exploration on private land grew, but public lands waned. And the Democrats’ response? They want to once again raid the Strategic Petroleum Reserve rather than admitting their culpability in holding up production for a decade or more – oil which could have already been on the market.
I’m a strong believer in the concept of “highest and best use” when it comes to land, although I adapt it somewhat to consider the resource value. Furthermore, I feel that recreational usage, preservation, and energy extraction need not be mutually exclusive over large tracts of land. It wouldn’t be any worse to see an oil well or fracking operation than to have a wind turbine hovering hundreds of feet in the air, either offshore or land-based, or a field full of solar panels.
As an example of how energy is becoming a national campaign issue, even in local races, I can direct you to Second District Congressional candidate Larry Smith, who both put forth his energy plan and challenged opponent Dutch Ruppersberger to” support the Keystone XL pipeline” and “stand up to President Obama and the special interest groups in Washington. It is time for him to fight for the people of his district and begin taking constructive measures to help end the pain at the pump.”
It’s good that Smith is another Maryland Republican who is taking the fight to the Democrat rather than his primary opponents. We can leave that for the other side, even when they’re correct in pointing it out.
Another race where this is occurring is the U.S. Senate race, where both the leading contenders are hammering the opponent. Dan Bongino recently called Ben Cardin the “milquetoast senator.” Bongino continued, “I like to say that Maryland is missing two senators because they just vote the party line. No reason for Maryland to get any national interest because there is no diversity of political thought.”
Richard Douglas called Maryland “desperate for leaders” and blasted the state’s junior Senator for being out of touch:
For most Americans, longevity brings wisdom. In Congress, longevity brings isolation. Isolation from the people invites tyranny. Such isolation is visible in Baghdad’s fortified ‘Green Zone,’ whose original architect was Saddam Hussein, not the American soldier. America must not tolerate creation of a Green Zone around Congress by politicians-for-life. A Senate leader who is truly concerned about the interests of his state and nation knows this. Like General Washington, he understands the critical value to the nation of a Farewell Address. He leaves on a warhorse, not a gurney.
Ben Cardin has held elected office since 1967. His time is up.
Indeed, it is time for a change, and these two gentlemen lead a group which would do a far better job representing the true interests of Marylanders.
And Free Staters could be well served without the need for tax increases, simply by adopting a more austere budget than the one proposed by Governor O’Malley. But it certainly wouldn’t be bare-bones, says Delegate Justin Ready.
Negotiations are taking place to avoid what liberal interest groups are calling a doomsday budget – one that would reduce approximately $500 million from Governor O’Malley’s proposed $36 Billion budget. A reduction of 1.4% out of the largest projected budget in Maryland history does not sound like doomsday to me, it sounds like a very good idea to get our state’s finances back on track.
It’s important to note that a cut of $500-$700 million out of Gov. O’Malley’s proposed FY2013 budget would still leave Maryland’s state government spending more than in last year’s budget. That’s not an unreasonable request to make of our government in a time when families have seen their budgets reduced dramatically.
So we would STILL spend more, but that’s not good enough for Annapolis liberals. They seem to want the whole enchilada, middle class (and everyone else not on the government teat) be damned.
But before I get to my new links, I wanted to add a quick news update: Mitt Romney won the Washington caucuses, although in truth it doesn’t mean much because the hard work of picking delegates to the national convention comes later on. Of course, I’m waiting for the Ron Paul cult to tell me that he’ll end up with all the delegates despite the fact he finished a distant second.
But there’s a simple truth at play: even if Paul got EVERY delegate from EVERY caucus, he would still be far short of the number needed for nomination. And getting 10 percent of the primary vote in a particular state isn’t going to get it.
I have one new link to share. She’s a California-based conservative who is most famous for the message below.
And to close, another sad note of passing. Fellow Maryland blogger T.J. Grogg (The Grogg Report) passed away last week. She was 68.
Update: I had to add this in because Robert Stacy McCain just destroys Sandra Fluke and her $3,000 for birth control argument.
Yesterday it was announced that the Keystone XL project, an oil pipeline which would have connected the oil sands of Alberta to refineries that could handle the product here in the United States, was shelved again by President Obama. This despite his quest to find “shovel-ready” projects and address the nation’s high unemployment rate.
Reactions? Well, pretty much what I expected. Needless to say, Mark Green at Energy Tomorrow was critical of the decision, stating President Obama wasn’t after jobs but “settled on a different calculus – re-election politics.” The American Petroleum Institute writer also pointed out the Keystone project had been under review for three years, plenty of time to gauge environmental impact. This is particularly true when one considers the Keystone XL pipeline could have run close by the existing Keystone pipeline already in use.
After Congressman Andy Harris heard President Obama’s new proposal for that “one thing – jobs, jobs, jobs, jobs, jobs, jobs, jobs,” as Teamster head James Hoffa would say, his reaction was short, sweet, and direct:
Over Labor Day weekend I met with many small business owners on the Ocean City Boardwalk – a common theme I heard from those potential job creators was their desire to get government out of the way so that they could do what they do best: grow their businesses and create American jobs. President Obama’s newest spending plan is nothing more than a second Stimulus bill. Just like the first Stimulus passed by the previous Congress, it will not create jobs, but instead delay recovery, increase the debt and grow the size of government. I believe that common sense ideas like a balanced budget amendment, elimination of job-destroying regulations and making America energy independent will create American jobs and get us out of this recession.
Well, he’s right, isn’t he? More after the jump.