VIDEO: The Democrat Energy Plan

The Perils of Cap-and-Trade

Thursday April 23, 2009

Posted by: Matt Dempsey Matt_Dempsey@epw.senate.gov (202) 224-9797

This week the House Republican Conference released their latest video highlighting the perils of a cap-and-trade plan to reduce greenhouse gases. The video, titled “The Democrat Energy Plan,” shows the stark contrast between the costly and burdensome Democrat energy plan and the “all-of-the-above” plan supported by Republicans. President Obama is quoted as saying “under my plan of a cap-and-trade system, electricity rates will necessarily skyrocket.” Obama and others seem unfazed by the fact that their policy of restricting clean coal and nuclear energy along with blocking exploration for new oil and gas will destroy good American jobs, raise prices on everything from gasoline to groceries for struggling households, and undermine America’s economic recovery. The GOP video shows that under the Republican energy plan, all forms of energy are considered to help us achieve cleaner energy, create jobs and strengthen our energy security. Which plan would you rather have?

 

Included below is the video from the House Republican Conference:

 

 

 

To celebrate Earth Day, President Obama trekked to Iowa to stump for “green jobs” and the assortment of federal green mandates that will, truth be told, free us from dependence on foreign oil. The President said that protecting the nation's natural resources “not only fulfills a sacred obligation to our children and grandchildren, but also provides an opportunity to stimulate economic growth.” According to the Associated Press, Obama visited “financially struggling Newton, Iowa,” where he touted the Trinity Structural Towers wind energy plant “as a model for job creation and energy production in a town whose biggest employer was sold and then stopped operations.” “The administration contends,” the AP reported, “that the president's plan will create jobs and protect the environment.”

Contact: Matt Dempsey Matt_Dempsey@epw.senate.gov (202) 224-9797

 

In Case You Missed It...

 

The Washington Times 

Inhofe Earth Day Challenge: Focus Scarce Resources on Achievable Environmental Solutions 

By. Sen. James Inhofe (R-OK)

 

Link to Op-Ed

 

Ranking Member of Environment and Public Works Committee

 

The greatest challenges confronting the environment on Earth Day 2009 largely will be ignored by many of the most outspoken green activists. Despite spending enormous sums of money on massive advertising campaigns promoting the false notion that man-made greenhouse gases threaten our very existence, the American public remains unconvinced that climate change is a pressing concern; indeed, the public rightly cares much more about clean water and clean air issues.

 

“Pollution of drinking water is Americans’ No. 1 environmental concern, with 59% saying they worry ‘a great deal’ about the issue,” according to a Gallup poll released last month. “That exceeds the 45% worried about air pollution, the 42% worried about the loss of tropical rain forests, and lower levels worried about extinction of species and global warming.” Gallup observed the results were “notable,” because the last three issues “are widely discussed in the media and public affairs…”

 

A poll released this past January by the Pew Foundation finds similar results, with global warming rating dead last in a list among 20 voter concerns. Only 30 percent of the voters deemed global warming to be “a top priority.”

 

Therefore, the question must be asked on this, the 39th anniversary of Earth Day: at what expense are we ignoring many of the most pressing issues, environment in particular, to advocate for action on extremely costly policies that will have almost no impact on Earth’s climate?

 

Taking into consideration this very question, Bjørn Lomborg, adjunct professor, author, and head of the Copenhagen Consensus Center at Copenhagen Business School, previously gathered a number of the world’s most esteemed economists and policy makers to consider how, with limited resources, to prioritize the numerous problems the world faces. Testifying before the Senate Environment and Public Works Committee at my invitation, Lomborg emphasized, “We have a moral obligation to do the most good that we possibly can with what we spend, so we must focus our resources where we can accomplish the most first.”

 

Notably, devoting resources to “solve” global warming consistently rank at or near the bottom of the list. Using a rigorous cost-benefit analysis test, the experts continue to find global warming “solutions” too costly for the results they may achieve. In fact, Lomborg notes, current global warming solutions would force us to spend $180 billion per year in mitigation for each year of the coming century –which provides a reduction in global temperature of a mere (an almost immeasurable) 0.3 degrees Fahrenheit.

 

In a recent Wall Street Journal op-ed, Lomborg writes, “Especially in the current economic climate, we have to prioritize what we do – we have to coolly look at the costs and benefits of policies.” Consider the numbers, Lomborg writes: “Whatever is spent on climate policies saving one person from hunger in 100 years could instead save 5,000 people today. This same point is true, whether we look at flooding, heat waves, hurricanes, diseases or water shortages. Carbon cuts are an ineffective response. Direct policies -- such as addressing hunger directly -- do a lot more.”

 

As demonstrated by my Senate report, featuring over 700 scientists who are speaking out against global warming alarmism, many, even on the left, are becoming increasingly concerned with the attention and resources devoted global warming solutions—to the exclusion of more pressing issues.

 

Consider Geologist Dr. Robert Giegengack, the former chair of Department of Earth and Environmental Science at the University of Pennsylvania, who publicly announced he voted for Gore in 2000 and said he would do so again. But Giegengack does not agree with Gore’s science views. “In terms of [global warming’s] capacity to cause the human species harm, I don’t think it makes it into the top 10,” Giegengack said in an interview in the May/June 2007 issue of the Pennsylvania Gazette.

 

Another is Denis G. Rancourt, professor of physics and an environmental science researcher at the University of Ottawa, who believes the global warming campaign does a disservice to the environmental movement. As Rancourt wrote on February 27, 2007: “Promoting the global warming myth trains people to accept unverified, remote, and abstract dangers in the place of true problems that they can discover for themselves by becoming directly engaged in their workplace and by doing their own research and observations.”

 

Professor David Noble of Canada’s York University has joined the growing chorus of disenchanted liberal activists. Noble now believes that the movement has “hyped the global climate issue into an obsession.” Noble wrote a May 8, 2007, essay entitled “The Corporate Climate Coup” which details how global warming has “hijacked” the environmental left and created a “corporate climate campaign,” “divert[ing] attention from the radical challenges of the global justice movement.”

 

Now more than ever, as the economy suffers both at home and around the world, we must focus our resources where we can achieve the greatest results. Unfortunately, the Obama administration and the Democrat-controlled Congress seem too narrowly focused on pushing the agenda of the so-called environmental community. That agenda focuses obsessively on global warming and it involves job-killing regulations that would dramatically expand the government’s power, with no impact on climate change. We could do more for the environment and the economy if we set aside global warming alarmism and focus on real issues, real problems, and the lives of the people affected by them. That should be our Earth Day pledge for 2009, and a principle that guides our focus for the future.

 

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As EPA’s proposed endangerment finding filters through the blogosphere, EPW Policy Beat encountered a “live chat” on the issue with David Doniger, policy director of the Climate Center at the Natural Resources Defense Council (NRDC). As Doniger waxed eloquently about the dangers posed by global warming “pollution”—it “leads to killer heat waves, stronger hurricanes, higher smog levels, and many other direct and indirect threats to human health”—a participant queried him about the “absurd” statement from Sen. Inhofe that “EPA’s regulatory reach will find its way into schools, hospitals, and assisted living facilities, and just about any activity that meets certain minimum thresholds in the Clean Air Act.” After confidently dismissing this claim as nothing more than “scare tactics,” Mr. Doniger directed the questioner to his weblog from last year, where he said the following: “What about the president’s claim that he’d have to regulate everything ‘from schools and stores to hospitals and apartment buildings’? Would you be surprised to learn that no one is asking EPA to do this? In fact, EPA has already figured out ways it could avoid sweeping in small sources of CO2.”

Posted by: Matt Dempsey Matt_Dempsey@epw.senate.gov (202) 224-9797

EPA Endangerment Finding Will Destroy Jobs, Harm Consumers  

By Senator James Inhofe

April 20, 2009

 

Link to The Hill Blog

 

Last Friday, the Environmental Protection Agency initiated what could indeed become a very dangerous regulatory process for this country.  EPA proposed an “endangerment finding” that greenhouse gases threaten public health and welfare.  This move by EPA will unleash a torrent of regulations that will destroy jobs, harm consumers, and extend the agency’s reach into every corner of American life.  While such regulations will create another massive burden on the economy, there will be no positive effect on global climate change as a result.

 

A year ago, Representative John Dingell correctly stated that an endangerment finding will produce a “glorious mess.”  EPA now has the power within its reach to regulate emissions from schools, farms, hospitals, assisted living facilities and other sources that meet minimum thresholds in the Clean Air Act.  Need confirmation? Just by looking through the comments filed in the docket to EPA’s Advance Notice of Proposed Rulemaking for greenhouse gas emissions, one is struck by how broadly the Clean Air Act would apply.  Any major economic development could be open to review by the EPA.  The Heritage Foundation’s Center for Data Analysis found that potential EPA greenhouse gas regulations would destroy over 800,000 jobs and result in a cumulative GDP loss of $7 trillion by 2029.

 

Some now claim this is why it is time to pass cap-and-trade legislation.  Unfortunately that would replace one very bad approach with another.  In last year’s debate on the Lieberman-Warner-Boxer climate bill, the enormous costs of cap-and-trade legislation were exposed.  What Congress should pass is a simple, narrowly-targeted bill that stops EPA from implementing regulations that will have a significant negative impact on the American economy and do nothing to affect climate change.

 

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Posted by: Matt Dempsey Matt_Dempsey@epw.senate.gov (202)224-9797

With green jobs being so much in vogue, EPW Policy Beat had occasion to review a recent ad by the estimable “Repower America,” a group whose raison d’être is, as Al Gore urged last July, to “repower” the nation with 100 percent clean electricity within ten years. Repower America is a project of the Alliance for Climate Protection, whose chairman of the board is Al Gore. Here are excerpts of the ad as recounted in a press release from the group, followed at intervals by our critique: 

Repower America: “Let’s talk numbers,” says the ads’ narrator, noting state-specific unemployment and foreclosure statistics.  “We need to turn things around. And we can’t afford to wait. Right now, Congress is debating a clean energy jobs plan that will jumpstart our economy, reduce carbon pollution, and break our dependence on foreign oil.”   

POLICY BEAT: The “clean energy jobs plan” referred to in the ad is the Waxman-Markey draft climate bill.  The bill looks very much like the Lieberman-Warner Climate Security Act rejected by the Senate last year, which, according to the American Council for Capital Formation (ACCF) (http://www.accf.org/media/dynamic/1/media_190.pdf), would destroy up to 4 million jobs and reduce GDP by $669 billion.   

Repower America: “If we repower Ohio with clean energy, it will jumpstart our economy, reduce carbon pollution, break our dependence on foreign oil and create 80,000 clean energy jobs in new industries for Ohio workers. That’s right, 80,000 new jobs that can’t be shipped overseas.” 

POLICY BEAT: As Repower America suggests, let’s talk numbers.  According to ACCF’s analysis, the Climate Security Act would destroy up to 143,000 jobs in Ohio.  Even if one concedes that a carbon mandate would create “80,000 clean energy jobs”—a concession not easily made—there would be a net loss of 63,000 jobs.  This is looks very much like Spain, as recounted in a remarkable new study (http://www.juandemariana.org/pdf/090327-employment-public-aid-renewable.pdf) of the green jobs experience there.  The study, conducted by Dr. Gabriel Calzada, an economics professor at Juan Carlos University in Madrid, found that each renewable job created by the Spanish government destroyed an average of 2.2 other jobs, while each “green” megawatt installed in Spain destroyed 5.39 jobs in non-energy sectors. 

Repower America: The spot concludes, “We’ve got to make a choice: Try our luck with business as usual, or invest in a clean energy future. The smart money’s on clean energy.”

POLICY BEAT: “Smart money”?  The study calculated that, since 2000, Spain spent $774,000 to create each “green job,” including subsidies of more than $1.3 million per wind industry job.  It found that creating those jobs resulted in the destruction of nearly 113,000 jobs elsewhere in the economy, or 2.2 jobs destroyed for every “green job” created.  “The loss of jobs could be greater if you account for the amount of lost industry that moves out of the country due to higher energy prices,” Dr. Calzada said recently in an interview with Bloomberg News.

Repower America: Maggie Fox, CEO of the Alliance for Climate Protection, noted the urgent need for action. “Make no mistake, we have a real opportunity before us to lead the world in a new direction and create jobs. But we have to act now,” said Fox. “Passing comprehensive energy legislation that rewards innovation and job creation, rather than polluters, will jumpstart our economy and create millions of clean energy jobs in manufacturing, trucking, construction and other core industries that are hurting across the Midwest and other states.” 

POLICY BEAT: According to ACCF, Lieberman-Warner, a bill that Al Gore praised (http://www.hillheat.com/articles/2008/06/02/al-gore-praises-boxer-lieberman-warner-bill) but said needed to be “stronger,” would result in the following: “Some major economic sectors will be adversely hit by emission caps. By 2020, primary metals output would be reduced by between 15% and 19%; stone, glass, and clay products would be reduced by between 10% and 12%; motor vehicle manufacturing would be reduced by between 6% and 14%; and paper products would be reduced by between 5% and 7%. In addition the general shift away from coal would result in a 35% reduction in coal production and electricity production would fall around 12%. These losses would be significantly higher by 2030 and would have a lasting impact on the economic base of the US.” 

Posted by: Matt Dempsey (202) 224-9797 Matt_Dempsey@epw.senate.gov

EPW FACT OF THE DAY: INDIA SAYS, ‘HECK NO, WE WON’T GO’ 

 

“If the U.S. acts, the rest of the world will follow.”  This is a common trope asserted by eco-enthusiasts bent on passing cap-and-trade.   No international agreement is possible, they say, unless the U.S. first assumes the burden of mandatory carbon reductions.  We now hear that the U.S. can gain “leverage” in international negotiations in Copenhagen later this year if EPA makes a finding that greenhouse gas emissions endanger public health and welfare under the Clean Air Act.  Presumably, this means such action will coax China, the world’s leading emitter of CO2, and India, the world’s third largest CO2 emitter, into accepting binding emissions cuts.  “Unless we show that we are capable and willing to regulate and limit our emissions, we are not going to get an international agreement,” said David Bookbinder, the Sierra Club's chief climate counsel.  Similarly, Annie Petsonk, international counsel with the Environmental Defense Fund, said, “To the extent that the endangerment finding pushes that process domestically, that's important for our negotiating partners to know.”

 

FACT: Developing countries, particularly India and China, have stated unequivocally that, regardless of U.S. action, they will never impose carbon straitjackets on their economies.  "If the question is whether India will take on binding emission reduction commitments, the answer is no,” a member of the Indian delegation to the recently concluded UN climate conference in Bonn told the Washington Post.  “It is morally wrong for us to agree to reduce when 40 percent of Indians do not have access to electricity.”  As an aside, the Indian delegate added, “Of course, everybody wants to go solar, but costs are very, very high.”  As the Post pointed out, more than 60 percent of India's power is generated from coal.  “As India rapidly climbs the list of global polluters, analysts say coal will continue to fuel the economic demands of the country's 1.1 billion people for two decades.”   But India “has repeatedly said that it will not compromise on growth by committing to emission reduction goals set by developed nations, which it deems bigger culprits when it comes to pollution.”  Rajenda Pachauri, chairman of the Intergovernmental Panel on Climate Change, said India is “very unlikely” to change its official position.

 

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Posted by: Matt Dempsey (202) 224-9797 Matt_Dempsey@epw.senate.gov

 

 EPW POLICY BEAT: THE ‘DE FACTO’ BAN ON NEW COAL PLANTS

From the Inhofe-EPW Press Office 

 

 

Should coal be part of the energy mix in a carbon-constrained world?  It’s not surprising that we think it should.  And we suppose it’s not earth shattering that the Waxman-Markey climate bill answers this all-important question with nuance.   True, the bill supports carbon capture and sequestration technology for new coal plants.  But Congress can’t legislate this technology into existence.  So this “bridge to a low carbon future” is a bridge to nowhere: the bill effectively sends the prospect of new coal plants into oblivion. Why?  In section 116 (beginning on page 60), the bill establishes a New Source Performance Standard (NSPS) for new coal plants that will be, from an economic standpoint, just about impossible to meet.  According to an analysis by ClearView Energy Partners, this amounts to a “de facto ban on new PC [pulverized coal] plants.” 

 

Waxman-Markey establishes performance standards for new coal plants in 3 “tranches”:

 

(1) plants permitted between 1/1/2009 and 1/1/2015 must meet < 1,100 lbCO2e/MWh by

the earlier of either (a) four years after 2.5 GW of nameplate capturing > 5MM tpy CO2 are operating in the U.S; or (b) four years after 5 GW of nameplate capturing > 10MM tpy CO2 are operating worldwide;

(2) plants permitted after 1/1/2015 must meet < 1,100 lbCO2e/MWh; and

(3) plants permitted after 1/1/2020 must meet < 800 lbCO2e/MWh.

 

What does this mean?  ClearView explains: “Using standard industry values of 1850 lbCO2e/MWh for PC combustion emissions (0.83 Mt/MWh) and a 90% capacity factor, the trigger would go into effect at only a 30.5% capture rate in the U.S. or globally, despite the 1,100 lb standard corresponding to a 41% capture rate.”  Moreover, “compliance with 1,100 lbCO2e/MWh standards would imply a maximum capacity factor ceiling of 66.6667%.”  In simple, declarative fashion, ClearView concludes: “We would suggest that this standard will face considerable opposition in the Senate.”  We would agree.

 

Finally, we should mention that we’ve seen this performance standard before…in California.  In 2006, the state passed S. 1368, which requires all baseload generation seeking long-term contracts (5 years or more) with California utilities to meet a GHG performance standard of, yes, 1,100 lbs. CO2/MWh.   According to the bill’s sponsor, “California has not said ‘no’ to coal; rather, we’ve said that we want cleaner coal plants that can provide us energy without producing massive global warming pollution.”  If this is ‘yes’, we wonder what ‘no’ means.

 

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As EPW PolicyBeat continues its walk-through of the Waxman-Markey discussion draft, we found reason to applaud the authors for recognizing, and proposing to rectify, the glorious mess of regulating greenhouse gases under the Clean Air Act. Sections 831, 832, 833, and 834 of Waxman-Markey succinctly preempt regulation under Title I and Title V of the Act, meaning no new source review, no national ambient air quality standards, no MACT standards, and no costly permit requirements for greenhouse gases.

EPW POLICY BEAT: SUING CITIZENS

Wednesday April 8, 2009

Posted by: Matt Dempsey Matt_Dempsey@inhofe.senate.gov (202) 224-9797  

 

EPW POLICY BEAT: SUING CITIZENS

From the Inhofe-EPW Press Office 

 

Over the next few days, EPW PolicyBeat will focus on the Waxman-Markey draft climate change legislation and several of the most interesting provisions therein.  In our view, Section 336 is far and away the most interesting in the 648-page bill.  Here the authors amend the citizen suit provision in Section 304 of the Clean Air Act.  The Waxman-Markey bill authorizes a “person” to “commence an action” who has “suffered, or reasonably expects to suffer, a harm attributable, in whole or in part, to a violation or failure to act referred to in subsection (a).”  Sounds innocuous enough…until one reads on.  For then one discovers how “harm” is defined: “For purposes of this section, the term ‘harm’ includes any effect of air pollution (including climate change), currently occurring or at risk of occurring, and the incremental exacerbation of any such effect or risk that is associated with a small incremental emission of any air pollutant (including any greenhouse gas defined in Title VII), whether or not the risk is widely shared.”  In other words, should the unfortunate happen and Waxman-Markey become law, courts could conceivably be flooded with lawsuits filed by environmental groups who perceive some risk—and they undoubtedly will perceive it—that is “associated with a small incremental emission” of a greenhouse gas—whether from a coal-fired power plant, a manufacturing facility, or some other entity covered by the bill.  This provision will further empower the eco-trial bar to fight the ravages of climate change and the businesses it dislikes, with no effect on the former and disastrous consequences for the latter.

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