October 8 Colorado Energy Cheat Sheet: Ozone rule and Colorado; ‘ban fracking’ resurfaces in Denver; ‘Fossil Fuel Free Week’ proves a challenge
Filed under: CDPHE, Environmental Protection Agency, Hydraulic Fracturing, Legal, Legislation, New Energy Economy, regulations, renewable energy
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Let’s open with a great piece from Lachlan Markay at the Free Beacon on the ways proponents of the Environmental Protection Agency’s raft of new policies, especially the Clean Power Plan, went on the offensive before the regulation was even finalized:
Supporters of a controversial Environmental Protection Agency regulation commissioned Democratic pollsters to plot ways to attack the motives and credibility of the regulation’s critics, documents obtained by the Washington Free Beacon reveal.
Aides to a dozen Democratic governors and the Democratic Party’s gubernatorial advocacy arm circulated talking points and political messaging memos on EPA’s new power plant regulations that laid out ways to “sow doubts about our opponents [sic] motives,” in the words of one of those memos.
The previously unreported documents, obtained by the Energy and Environment Legal Institute through an open records request and shared exclusively with the Free Beacon, provide a window into the Democratic messaging machine’s approach to an issue that its own pollsters acknowledge is a hard sell among its target voter demographics.
In what was certainly intended as a launching point for
local national anti-energy, “ban fracking” advocates, last weekend’s confab in Denver–no doubt brought to us in no small part by fossil fuels–ramped up their efforts, as Energy In Depth’s Randy Hildreth writes:
National “ban fracking” groups descended on Denver this afternoon to protest oil and gas development as part of the “Stop the Frack Attack National Summit.”
For anyone still wondering if this was a Colorado effort, EID was on hand to note that when a speaker asked the crowd, “How many of you are from out of state?” attendees erupted into cheers. And while the group managed to draw roughly 100 participants, judging from the cheers of out of state folks, we’re guessing the showing was pretty sparse from Colorado (which, of course means they all got into planes and cars burning fossil fuels to get here).
Plenty of photos of the protestors at the link.
So what are they amping/ramping up?
Although Colorado-based environment groups such as Conservation Colorado didn’t participate; the demonstrations drew support from national groups, such as the Sierra Club, and impassioned “fractivist” residents. A group called Coloradans Resisting Extreme Energy Development has declared the COGCC illegitimate and is developing ballot initiatives including a statewide fracking ban.
“Local control” just means “ban fracking” and all other oil and gas development, using a few local fractivists for cover, a pattern of political posturing since at least the 2013 off-year election cycle, when national anti-fracking groups enlisted or created local branches to push ballot measures at the municipal level.
How big an economic driver is oil and gas development? Energy In Depth took a national look:
While these cities lie in different geological regions, they do have one thing in common: shale development. Oil and gas development in these cities was the biggest economic driver throughout 2014. For instance, take a look at the Greeley, Colorado metropolitan area, which encompasses Weld County, where a large percentage of shale development is taking place. It grew its GDP by 9.9 percent in 2014 and ranks fourth in the nation in terms of percent growth. According to a BizWest.com article:
“Greeley’s 2014 growth was dominated by the mining sector, which includes oil and gas extraction, growing by 24.6 percent from the previous year.”
Some early analysis on the EPA’s recently announced ozone rule, set at 70 ppb. Colorado’s unique geographical and topographical situation mean that even at a higher level (original discussions for the ozone rule included possibly lowering the target to 60 ppb from 75), the state will face plenty of difficulties, including some entirely out of the state’s control:
“We don’t expect that the non-attainment areas will expand geographically,” said Will Allison, the director of the Colorado Department of Public Health and Environment’s air pollution control division.
But state officials do have concerns about the new standard’s impact on the state, and they will be talking to the EPA about issues unique to Colorado and other western states, such as the fact that the Rocky Mountains can act as a trap for air pollution flowing across the Pacific Ocean from Asia, Allison said.
The state’s high altitude and pattern of lightning storms also contribute to ozone levels — but there’s very little Colorado officials can do to interfere with Mother Nature.
Heritage Foundation–4 Reasons Congress Needs to Review the EPA’s Ozone Standard
Institute for Energy Research–EPA Finalizes Costly, Unnecessary Ozone Rule
In 2010, EPA reconsidered the 2008 standard and EPA’s delay means that implementation of the 2008 standard is now behind schedule. But instead of waiting until localities are complying with the 2008 regulation, EPA is imposing a newer, stricter standard that puts more counties out of attainment even though ozone levels are decreasing. Below is a map depicting the areas that are projected to be out of compliance under a 70 ppb standard.
National Association of Manufacturers–New Ozone Rule Will Inflict Pain on Manufacturers, Finalized Regulation Still Feels Like a Punch in the Gut
“Today, the Obama Administration finalized a rule that is overly burdensome, costly and misguided,” said Timmons. “For months, the Administration threatened to impose on manufacturers an even harsher rule, with even more devastating consequences. After an unprecedented level of outreach by manufacturers and other stakeholders, the worst-case scenario was avoided. However, make no mistake: The new ozone standard will inflict pain on companies that build things in America—and destroy job opportunities for American workers. Now it’s time for Congress to step up and take a stand for working families.”
According to the National Journal, the new ozone rule has pretty much ticked off everyone concerned, including those on the side of the current administration:
After a banner second term that has seen the most aggressive action on climate change from any administration, the Obama administration just opened up a new fault line with environmentalists.
The Environmental Protection Agency today released its new air-quality standards for ground-level ozone, lowering the allowable level from 75 parts per billion to 70 ppb. That’s well short of what environmentalists and public-health groups had been pushing and a level they say wouldn’t do enough to protect public health.
Industry groups and Republicans, meanwhile, are not likely to be any happier—they have been long opposed to any standard lower than the status quo because of the potential cost of compliance.
The EPA’s shady procedural efforts appear to have killed natural resource development in Alaska, using hypotheticals and possibly in collusion with environmentalists, according to a new report, writes the Daily Caller’s Michael Bastasch:
The EPA may have rigged the permitting process in the Alaskan copper mining project, possibly hand-in-hand with environmentalists, to defeat the Pebble Mine before it even had a chance, a new report by an independent investigator suggests.
“The statements and actions of EPA personnel observed during this review raise serious concerns as to whether EPA orchestrated the process to reach a predetermined outcome; had inappropriately close relationships with anti-mine advocates,” reads a report by former defense secretary William Cohen, who now runs his own consulting firm.
The Pebble Partnership hired Cohen to review the EPA’s decision not to allow the Pebble Mine to seek a permit for mining copper near Alaska’s Bristol Bay. Cohen’s report only looked at the process the EPA used to pre-emptively veto the Pebble Mine. He did not make any conclusions on the EPA’s legal authority to do so or whether or not the mine should even be built.
Cohen found that the EPA’s “unprecedented, preemptive” use of the Clean Water Act to kill the Pebble Mine relied on a hypothetical mining project that “may or may not accurately or fairly represent an actual project.”
“It is by now beyond dispute that the Environmental Protection Agency went rogue when it halted Alaska’s proposed Pebble Mine project. And yet, there’s more.
The more comes via an independent report that criticizes the agency for its pre-emptive 2014 veto of Pebble, a proposal to create the country’s largest copper and gold mine in southwest Alaska. Under the Clean Water Act, the Army Corps of Engineers evaluates permit applications for new projects. The EPA has a secondary role of reviewing and potentially vetoing Corps approval. Here, the EPA issued a veto before [emphasis in original] either Pebble could file for permits or the Corps could take a look.”
Mountain States Legal Foundation’s William Perry Pendley on the latest private property battle vs. federal land managers–”The U.S. Supreme Court on Friday is scheduled to consider whether to take up a case from Utah that could determine whether federal land managers can steal a citizen’s private property.”
Native American energy production faces Democrat opposition:
House Democrats are expected to oppose legislation this week that would remove regulatory burdens for energy production on Native American land that tribes say have cost them tens of millions of dollars.
The Native American Energy Act would vest more regulatory authority over tribal energy production with the tribes themselves, rather federal regulators that have recently sought more stringent regulations on oil and gas production on federal land.
The bill passed out of the House Natural Resources Committee last month with just a single Democratic vote. Among its provisions is language that would exempt tribal land from new Interior Department regulations on hydraulic fracturing, an innovative oil and gas extraction technique commonly known as fracking.
Last but not least, the Western Energy Alliance’s “Fossil Fuel Free Week” concluded last week, and it was a tough challenge (if you’re reading this right now, you’ve failed:
Fossil Fuel Free Week, organized by Western Energy Alliance, has concluded and succeeded in getting people to think about the role of oil and natural gas in their daily lives. The campaign was designed in response to numerous anti-fossil fuel protests in recent months, such as the Keep It In The Ground Coalition, various anti-fracking rallies, demonstrations against Keystone XL and other pipelines and rail transport, the divestiture movement, and kayaktivists against arctic drilling.
The key lesson from the campaign is environmental groups, when directly challenged, fail to provide workable alternatives that replace the full spectrum of products provided by fossil fuels. Instead they respond by being predictably dismissive and offer vague visions for the future, as President Tim Wigley of the Alliance explains:
“As we’ve seen with recent protests, environmental groups incite anger amongst their supporters while dangling fossil fuels in effigy. Yet not accustomed to being poked fun of themselves, environmentalists reacted reflexively to the Challenge, offering weak observations by calling it ridiculous, snarky and a ploy. Well…yes!
For the last two and half years, the Independence Institute along with other free market energy policy advocates have pounded the drum of transparency and exposed the federal government’s infamous Department of Energy (DOE) loan guarantee program that rewarded the politically well-connected while costing taxpayers billions of dollars with high profile bankruptcies such as Solyndra and Colorado’s own Abound Solar.
Without the work of the Independence Institute’s investigative reporter Todd Shepherd, the Energy Policy Center, and Michael Sandoval now with the Heritage Foundation, Abound Solar’s history is little more than a footnote in failure in the grand scheme of the DOE. We covered it. The mainstream media did not…until we shamed them into doing so.
Now the Government Accountability Office (GAO) has released a report on its audit of the DOE loan guarantee program that finds negative publicity surrounding the embattled program has left billions of taxpayer dollars untouched in the public trough.
More than $51 billion in unused loan guarantee authority and $4.4 billion in unused credit subsidies…remain available under the DOE’s Loan Guarantee Program (1703) and Advanced Technology Vehicles Manufacturing (ATVM) loan program.
According to the report,
Some applicants noted that the Solyndra default and other problems have created a negative public image and political environment for the program, which has made its future less certain and the DOE more cautious about closing on loan guarantees.
Good news for taxpayers, the DOE has not closed a loan since September 2011, the month that Solyndra shuttered its doors. The GAO conducted the performance audit beginning in June 2012 (the date Abound Solar went bankrupt) to February 2013.
Most impressive is that taxpayers are making their voices heard and companies themselves are feeling the negative public pressure of socializing risk while privatizing profit:
“Most applicants and manufacturers noted that public problems with the Solyndra default and other DOE programs have also tarnished” other programs such as ATVM. They believed the negative publicity makes the DOE more risk-averse or makes companies wary of being associated with government support.”
We would be remiss if we didn’t mention by name the excellent work of Paul Chesser of the National Legal and Policy Center exposing the DOE’s corporate welfare program for Big Green projects such as electric vehicle manufacturers to the stars Fisker and Tesla and battery maker A123 Systems.
The Independence Institute’s Todd Shepherd, along with this blog, have spent two years covering, and ultimately exposing, what is now the Abound Solar scandal. Understandably, much of the focus is now on Weld County District Attorney Ken Buck’s criminal investigation as well as a Congressional Oversight Committee inquiry into the bankrupt solar panel manufacturer.
Recently released emails on Complete Colorado indicate that, despite statements to the contrary, the White House politicized the Department of Energy (DOE) loan guarantee process for politically well-connected Abound.
But something else within those emails caught my attention reminding me of free market economist and Nobel Prize winner Milton Friedman’s famous quote, “there is no such thing as a free lunch.” In other words, even things that appear to be free have an associated cost.
This basic economic concept is lost on Colorado State Representative Max Tyler’s (D-Lakewood) who in a March 23, 2010, press release bragged about a government-dictated increase in Colorado’s renewable energy mandate:
With HB 1001 we will manufacture and install panels and turbines all over Colorado to capture free energy….The sun will always shine for free, the winds will always blow for free, and our energy production will be cleaner. Renewable energy, green jobs, and a cleaner future — what’s not to like?
At roughly the same time that Tyler publicly fantasized about “free energy,” a credit advisor for the Department of Energy (DOE) loan guarantee program James McCrea was concerned about “major issues” with Abound Solar’s marketability. In an email dated April 1, 2010, just seven days after Tyler’s press release, McCrea explained:
Another issue is the very limited supply of telluride, its potential price trajectory and other demands for it. Related to this is a question of the viability of the Abound panels as compared to other panels and whether there is sufficient benefit to allow the panels to be profitable if Te [telluride] prices really increase. If the price really rises will there be alternative uses that can afford it basically turning it into a non available input for Abound?
I don’t believe we have ever worked with an input material that is so limited. We need to think that through carefully.
Before going bankrupt this summer, Abound produced cadmium telluride (CdTe) thin-filmed photovoltaic solar panels. Cadmium and tellurium, used in the manufacturing of Abound’s panels, are two of the world’s 17 “rare earth elements” that are needed for everything from smart phones to solar panels to high tech weapons systems. My former colleague Michael Sandoval, now an investigative reporter with the Heritage Foundation, and I have written several columns on general issues with rare earth elements.
This email highlights the problem specific to Abound, and McCrea was right to be concerned. According to the December 2011 DOE Critical Materials Strategy the price of tellurium has been going up since 2007:
The price dropped in 2006, but in 2007 resumed its upward trend owing to increased production of cadmium telluride (CdTe) solar cells.
Furthermore, China controls the vast majority of rare earth elements. In August 2012, the Chinese announced an ambitious plan to increase its stranglehold on the world’s available supply of rare earths. According to China Daily the country:
launched a physical trading platform for rare earth metals as part of its efforts to regulate the sector and strengthen its pricing power for the resources.
As the world’s largest producer of rare earth metals, China now supplies more than 90 percent of the global demand for rare earth metals, although its reserves account for just 23 percent of the world’s total.
The article reiterated what Michael and I have said on numerous occasions, mining rare earths comes with a significant environmental cost that green zealots like Tyler completely ignore when claiming solar energy is free and clean:
Mining the metals greatly damages the environment. In recent years, China has come down heavily on illegal mining and smuggling, cut export quotas and imposed production caps, stricter emissions standards and higher resource taxes to control environmental damage and stave off resource depletion.
However, these measures have irked rare earth importers, who complained about rising prices and strained supplies.
But China did exactly what it said it would do in 2009. It drove up prices with reduced output as global demand increased.
China’s rare earth output fell 36 percent year on year to 40,000 tonnes in the first half of the year. Prices of major rare earth products in July remained twice as high as prices at the beginning of 2011, although down from the beginning of the year.
In July 2009, about a year before President Barack Obama announced a $400 million loan guarantee for Abound, Jack Lifton, an expert on sources and uses of rare minerals, wrote a lengthy article for Resource Investor about the availability of tellurium for First Solar, a global leader in cadmium telluride solar panel manufacturering. Lifton’s conclusion should have served as a prophetic warning for Abound and any hope of profitability:
A company such as First Solar, which is critically dependent on a secure supply of tellurium to exist and on an unsustainable growth in the supply to it of tellurium for it to grow and achieve competitive pricing is a big risk for short-term investors. The maximum supply and production levels attainable of tellurium are quantifiable even if the actual production figures are murky, and they do not bode well for the future of First Solar if it must make profits to survive.
The next time you hear a politician like Max Tyler tout the benefits of “free” and “clean” energy, remember Abound Solar because there is no such thing as a free lunch.
No one read a press release from the Environmental Protection Agency stating that drinking water in Dimock, Pennsylvania is safe to drink and not contaminated by hydraulic fracturing because the EPA didn’t issue one. Instead it sent an email to Dimock residents.
-Original Message—– From: Taylor.Trish <Taylor.Trish@epamail.epa.gov>
To: Cc: Polish.David <Polish.David@epamail.epa.gov>
Sent: Fri, Dec 2, 2011 6:34 am
Subject: Follow-up status re: Nov 10, 2011 visit with Dimock PA residents
Dear Dimock Residents,
This email is a follow-up to the visits to Dimock area homes by EPA on November 10, 2011 and the subsequent review of well sampling data for wells impacted by the Cabot Oil and Gas Company drilling activities. EPA has conducted a preliminary review and screening of the data provided by the Pennsylvania Department of Environmental Protection and residents. While we are continuing our review, to date, the data does not indicate that the well water presents an immediate health threat to users. EPA will continue to review available information related to the concerns of Dimock area residents. We are continuing to work with the Commonwealth of Pennsylvania going forward on this issue.
Please feel free to call me or David Polish, Community Involvement Coordinator, at (215) 814-3327, if you have further questions.
Trish Taylor, Community Involvement Coordinator
Hazardous Site Cleanup Division (Mailcode 3HS52)
U.S. Environmental Protection Agency,
Region 3 1650 Arch Street, Philadelphia, PA., 19103
phone: (215) 814 – 5539 fax: (215) 814 – 3015
Thanks to Heritage Foundation blog The Foundry for making it public:
Federal authorities have ruled that the drinking water in Dimock, Pennsylvania, which some claimed had been contaminated by nearby natural gas drilling efforts, is safe to drink. The statement lends some factual weight to a political debate wrought with emotion and more than the occasional doom-and-gloom proclamation.
Dimock has become a lightning rod in the fight against the natural gas extraction technique hydraulic fracturing. Anti-natural gas activists have used the town in a years-long campaign to prevent the practice, which they insist contaminates drinking water supplies.
But the Environmental Protection Agency says otherwise….
EPA’s findings comport with administrator Lisa Jackson’s previous statements regarding the effects – or lack thereof – of hydraulic fracturing on drinking water. Earlier this year, Jackson told a House committee that she was “not aware of any proven case where the fracking process itself has affected water.”
Scott Perry, director of the Pennsylvania Department of Environmental Protection’s Bureau of Oil and Gas Management, echoed that position. “There has never been any evidence of fracking ever causing direct contamination of fresh groundwater in Pennsylvania or anywhere else,” Perry said in April.
This is a stark contrast to how the EPA and the media responded to a “draft finding” regarding ground water in Pavillion, Wyoming.