Archive for the ‘Coal’ Category

Obama’s State of Union will likely hit on a number of energy policy themes: climate change, promotion of offshore drilling, clean energy. The President’s statements on climate change were previewed in his January 21 inaugural address, when he declared “We will respond to the threat of climate change, knowing that the failure to do so would betray our children and future generations.  Some may still deny the overwhelming judgment of science, but none can avoid the devastating impact of raging fires and crippling drought and more powerful storms. The path towards sustainable energy sources will be long and sometimes difficult.  But America cannot resist this transition, we must lead it.”

The 2007 Supreme Court ruled the EPA must regulate greenhouse gasses under its existing Clean Air Act authority if it finds a scientific basis that such emissions pose a danger to public health. This summer, a Republican-led federal appeals court ruled that the EPAs compilation of the science of climate change was overwhelming and compelling, thereby requiring the Agency to act.

Obama has already used this authority to implement ground-breaking greenhouse gas emission rules for cars and trucks, and has proposed rules for new power plants that rule out the construction of conventional coal power plants. Tonight’s State of the Union will likely propose new rules over existing power plants.

And this is where Southern’s $100,000 contribution to Obama’s 2013 Inaguaration may become a factor. Southern Co was the only utility to make a contribution.  Obama’s climate change rules for cars were developed with auto industry support – previewing a framework for how rules over existing power plants may play out. In 2009 Obama was content to let the House take the lead in putting together climate rules to ensure there’d be shared responsibility among the legislative & executive branches on economy-wide legislation that was sure to be controversial in some circles. While Obama quickly abandoned succeeding Senate efforts to draft a companion bill after concluding that the cap ‘n trade approach was too politically risky, Obama pivoted in his 2011 SOTU around a clean energy standard that promoted nuclear and natural gas that had very similar emissions reduction targets as the Waxman Markey bill.

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The following is a repost of my National Journal Energy Experts blog

Electricity policy faces enormous challenges—three different federal agencies (EPA, DOE, FERC) and 10 Congressional committees wrestle with oversight over electricity markets, new generation sources, air and water emissions issues, and energy efficiency initiatives. Resolving the current political stalemate requires an acknowledgement that maximizing investment in a decentralized electricity structure has to be a significant part of policy going forward. And we must recognize that while constitutional rights within our Democratic Republic often clash with companies’ need for efficiency, preserving those rights must be our priority.

Not only are capital cost barriers of proposed new nuclear and coal-fired units significant, but so are the associated transmission infrastructure upgrades needed to move the power from new sources to population centers. Trying to build any new type of large infrastructure system designed to accommodate our centralized power system has traditionally run into NIMBY opposition, which lately has been characterized as Not on Planet Earth (NOPE). Population density in the US has increased 105% from 1950 to 2010—from 42.6 people per square mile in 1950 to 87.4 people per square mile in 2010. With more people living per square mile than ever before, Americans’ Fifth Amendment Constitutional right to due process guarantees that large projects will continue to be delayed. Congress’ unwillingness to grant the Federal Energy Regulatory Commission ultimate authority over transmission siting leaves permitting at the state level, where property owners will continue to hold sway over project developers. Meanwhile, the plummeting cost of solar photovoltaics, advances in micro-wind turbines, and continued permitting successes of geothermal are providing more opportunities for distributed renewable energy generation. It’s more efficient to site millions of rooftop solar systems than permit just a handful of new coal/nuclear stations with hundreds of miles of needed transmission.

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This week National Journal reports that former Senators Byron Dorgan, D-N.D. and Trent Lott, R-Miss “are working together on a blueprint for energy legislation” through their role as co-chairs of the Bipartisan Policy Center’s Strategic Energy Initiative, and plan to release it in January. NJ notes that “their effort could gain traction: Both are held in high regard by their former colleagues, and the BPC is a serious player in the energy debate.

What NJ fails to mention is that both Dorgan and Lott are also lobbyists getting rich taking special interest money from a who’s who of major energy corporations, which raises the question: will their energy blueprint serve as yet another veiled, sophisticated sell for their high priced energy corporate clients? When does their respected “high regard” begin and their shilling for their corporate clients end?

Lott’s Breaux Lott Leadership Group represents ExxonMobilEntergy, GE, energy trader Goldman Sachs, National Propane Gas Association, Plains Exploration and Shell Oil. In addition, the Breaux Lott group is a subsidiary of lobbying giant Patton Boggs, so you should also include PBs list of energy clients: ATP Oil & Gas, the Mining Awareness Resource Group, Oil States International and the oil giant TOTAL.

Dorgan co-chairs Government Relations for Arent Fox, where his corporate energy clients include oil companies Denbury Resources & Noble Energy.

I’m sure there will be some good recommendations in the Lott-Dorgan energy report. And I’m sure there’ll be policies that will be controversial. At the end of the day, we just don’t know what made it into the blueprint because of policy merits or the special interest paycheck.

Tyson Slocum is Director of Public Citizen’s Energy Program. Follow him on Twitter @tysonslocum

http://www.sanders.senate.gov/imo/media/image/oilmoney2.jpgWe have a powerful new tool to take on the fossil fuel industry and level the energy playing field.

Last week, new legislation was introduced by Sen. Bernie Sanders and Rep. Keith Ellison that would repeal $113 billion of tax-breaks, handouts and subsidies for the fossil fuel industry over the next 10 years.

View the list of subsidies the End Welfare Pollution Act, if passed, would repeal.

Federal subsidies and tax credits can be beneficial for short-term support of emerging technologies that help society as a whole.

Unfortunately, the mature fossil fuel industry is subsidized at nearly six times the rate of renewable energy. And unlike renewable energy incentives, which periodically expire and require Congress to approve extending, the fossil fuel industry has dozens of subsidies permanently engrained in the tax code from decades of successful lobbying.

With the burning of fossil fuels increasingly destabilizing our climate, why do we keep subsidizing the problem?

Eliminating fossil fuel handouts will go a long way toward advancing solutions like new innovations in the clean energy sector.

We can’t afford to keep throwing gobs of money at the fossil fuel industry.  Support the effort to end welfare to polluting industries.

The Obama Adminitration’s announcement a while back to “streamline” the permitting process for 7 major electricity transmission lines in an effort to “create jobs” and promote wind energy is proble"power lines"matic. While the projects would benefit proposed wind farms, the fact is that existing coal-fired and nuclear power plant infrastructure appear to be the big winners. And at least two of the projects get to charge consumers hundreds of millions of dollars in rate incentives authorized by the Energy Policy Act of 2005 under the expectation that investors needed the extra money because of the implicit difficulty in getting the necessary approval to build.
A recent analysis by Roger Bezdek in the February 2012 issue of Public Utilities Fortnightly argues that new transmission needs to link proposed new large scale, centralized renewable energy projects (mandated through a proposed federal Renewable Energy Standard, under Bezdek’s assumptions) “could enable expansion of coal-fired generation by the equivalent of about 30 new coal plants by 2020,” mainly because the added transmission, coupled with coal’s continued price advantage, will make more existing coal capacity available, since “utilization of the existing coal fleet is currently about 72 to 74 percent. However, this can be increased to about 85 percent if there’s enough transmission to transmit the added coal generation to the load at nights and weekends.” Now, Bezdek’s analysis is not specifically applied to the “fast-tracked” 7 transmission projects, but you get the idea.
For a swirling debate that often pits the Chamber of Commerce and multinational corporations against Obama on regulations, it seems strange that Obama’s proposed gutting of transmission siting regulations has received a collective yawn from environmentalists and many in the pro-regulation community. These days it appears as though Obama governs through press release, wrapping any initiative with “jobs” or “green energy” no matter how tenuous the claim. Touting transmission line projects as vehicles to “create jobs” is not efficient, and a close analysis of the transmission lines clearly show that coal-burning power plants will be the big winners.
Siting towering, multi-state transmission lines has been the traditional job of states. But with NIMBYism giving rise to NOPE (Not on Planet Earth) – due mainly to millions of new people now living in broad swaths of These United States where once only cows and tumbleweeds reigned, as evidenced by an increase of population density of 105% between 1950 and 2010 (from 42.6 people per sq mile to 87.4), it can get awfully difficult for corporations to build large projects sometimes. Not that that’s a bad thing. Unlike China, which can forcibly remove 1.3 million people to make way for giant energy projects at the drop of a hat, here in America we have the 5th Amendment protecting us.
In contrast, we ought to be focusing on YIMBY (Yes In My Backyard!) microgrid projects serving rooftop solar.
The Energy Policy Act of 2005 supposedly granted the Federal Energy Regulatory Commisison (FERC) new “backstop” authority to site transmission lines, in Section 1221, but only if states “withheld approval for more than one year.” But in 2009 the 4th Circuit rejected FERC’s interpretation of this authority. Courts also struck down FERC’s Section 368 authority to establish National Interest Electric Transmission Corridors that would have usurped existing state authority. However futile FERC’s efforts have been, Section 1221 of EPAct 2005 designated the Department of Energy as the “lead agency for purposes of coordinating” transmission projects on Federal lands. And it is this Section 1221 authority that Obama is utilizing with these 7 projects, as all cross major chunks of the public’s land.

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