Tag: "federal government"

Anti-fossil Energy Groups Lobby Students

Universities and other public institutions throughout America are being targeted in an aggressive climate crisis-premised campaign demanding that they divest themselves of all fossil energy investments and influences. In the process, legitimate funding sources are being sacrificed, objective education and science programs are being compromised, and careers of non-conforming researchers are under assault.

As reported by Kimberley Strassel in The Wall Street Journal, one such sponsoring organization, “UnKochMyCampus,” provides a “campus organization guide” on how to “expose and undermine” any college that works against “progressive values.”

Spearheaded by Greenpeace, Forecast the Facts, and the American Federation of Teachers, its website directs students to a list of universities which have received money from Koch foundations. It also offers step-by-step instructions on how “trusted allies and informants” (including other liberal students, faculty and alumni) can be recruited to demand Freedom of Information legislation record disclosures from offending programs and professors.

The Federation of Teachers and National Education Association even sponsored a day-long March conference devoted to training students on “necessary skill to investigate and expose” any Koch influence. Funding influences of left wing contributors, however, are quite a different matter.

It seems quite okay that billionaire environmentalist Tom Steyer and his wife pledged $40 million to create the TomKat Center for Sustainable Energy at Stanford. Steyer, a prominent climate alarmist, anti-Keystone Pipeline lobbyist and carbon tax proponent, also spent $74 million supporting 2014 congressional candidates who would advance his uber-liberal agendas.

A recent National Association of Scholars report titled “Sustainability: Higher Education’s New Fundamentalism” discusses how universities continue to be co-opted as bastions of progressive ideology. Excerpted by Rachelle Peterson and Peter Wood of the Intercollegiate Studies Institute, the movement can be heavily credited to the former senator, now the secretary of state, John Kerry and his wife Teresa Heinz following her previous husband’s fatal 1991 helicopter crash.

Upon meeting at the 1992 Rio de Janeiro U.N. Earth Climate Summit the two recognized colleges and universities as important seedbeds for a new “sustainable development” initiative. This mantra was hatched by the U.N. under its Agenda 21 doctrine and became smuggled into unwitting American townships and counties through its International Council for Local Environmental Initiatives (ICLEI).

In 1992 Kerry and later-to-become wife Heinz launched the nonprofit “Second Nature” with the mission to “create a sustainable society by transforming higher education.” The organization began soliciting professors including ecologists, scientists, philosophers, and poets who were willing to introduce sustainability content into their courses along with encouraging the creation of new centers of sustainability study.

Second Nature’s primary and most successful targets proved to be college presidents who possess an unparalleled ability to shepherd the movement to adulthood along with financial flexibility to experiment with new technologies and programs. A group of 12 institutional heads initially came onboard, including Arizona State University President Michael Crow, and University of Florida President Bernard Machen.

The group pledged to “recognize the scientific consensus that global warming is real and is largely caused by humans” and to set an example by going “carbon-neutral.” Among other things, they also committed to engage in shareholder activism to pressure the corporations in which the college owned stock to move towards climate neutrality. As of last January, 685 colleges and universities have signed on.

Joined by mega-funded green groups, friendly media and government politicos the movement continues to gain fast-paced momentum. A recent Greenpeace-sponsored New York Times attack on Dr. Willie Soon of the Harvard-Smithsonian Center for Astrophysics accused him of personally failing to disclose research funding, even though those monies were properly processed through official institutional agreements.

Two days after the Times article appeared, ranking Democrat on the Natural Resources Committee Rep. Raul Grijalva, D-Ariz., sent letters to university employers of seven researchers identified as climate crisis skeptics. All were asked to provide details about their outside funding sources.

In addition, Senators Barbara Boxer, D-Calif.; Ed Markey, D-Mass.; and Sheldon Whitehouse, D-R.I., attempted to intimidate climate apostates by sending 107 letters to think tanks, trade associations and companies demanding that they provide the same information.

By extension, this presumably suggests that no scientist who ever accepts research funding from any special interest-linked sponsors should be trusted. Let’s remember, however, that government politicians and bureaucrats wishing to expand authority and budgets are as self-interested as anyone, and that nearly all university-based climate research depends upon federal grants they provide.

Those research conclusions, in turn, influence billions of dollars in regulatory and consumer energy costs. There’s little wonder then about the need for alarmist witch-hunting activists following 18 years and counting of flat global temperatures despite rising atmospheric CO2 levels. When the climate scare goes away, so does that power and money.

Another version of this post appeared in Newsmax.

 

DOE Invests $75 Million to Create Fuel by Artificial Photosynthesis

The U.S. Department of Energy will invest $75 million in the quest to create liquid transportation fuels through artificial photosynthesis.

The funding will renew the Joint Center for Artificial Photosynthesis (JCAP), an Energy Innovation Hub established in the beginning of 2010. The hub, which is modeled after “the strong scientific management approaches typified by the Manhattan Project,” is one of several Energy Innovation Hubs established by the Department of Energy.

According to Under Secretary for Science and Energy Lynn Orr:

Basic scientific research supported by the Department of Energy is crucial to providing the foundation for innovative technologies and later-stage research to reduce carbon emissions and combat climate change. JCAP’s work to produce fuels from sunlight and carbon dioxide holds the promise of a potentially revolutionary technology that would put America on the path to a low-carbon economy.

This commitment of new funding comes on the heels of an announcement from the Government Accountability Office stating that the department’s $28 billion loan program will cost taxpayers $2.21 billion over the lifetime of the loans. The cost skyrocketed by $500 million after several companies defaulted on their loan guarantees.

White House Releases Quadrennial Energy Review for Earth Day

Yesterday, the Obama administration released the first installment of the new Quadrennial Energy Review (QER), a four-year cycle of assessments deigned to provide a roadmap for U.S. energy policy. This first installment focuses on the needs and opportunities for modernizing the nationwide infrastructure for transmitting, storing, and distributing energy. Dr. John Holdren and Dan Utech said:

Today, America has the most advanced energy system in the world. A steady supply of reliable, affordable, and increasingly clean power and fuels underpins every facet of our nation’s economy. But the U.S. energy landscape is changing dramatically, with important implications for the vast networks of pipelines, wires, waterways, railroads, storage systems, and other facilities that form the backbone of America’s energy system.

The administration hopes that careful analysis and modernization of energy infrastructure will promote economic competitiveness, energy security, and environmental responsibility.

This first QER installment comes just in time for Earth Day, which has spurred many sectors of the government into action. Over the past two days, the House of Representatives sent an energy efficiency bill to the president’s desk, the Department of Justice and the EPA levied $5 million in penalties against ExxonMobil for a 2013 oil spill, Democratic House members introduced the “strongest anti-fracking” bill yet brought to the House, which would ban fracking on all federal lands. The president is also doing his part, touting his plans to impact climate change at debates in Florida.

Though Earth Day has a tendency to bring out people’s far-fetched energy plans, it does do some good as well. According to the Annual Energy Outlook, improvements in energy efficiency, increases in energy demand, and the stabilization of energy-related carbon dioxide emissions have all benefited since the first Earth Day 45 years ago.

 

Crowdfunding Oil and Gas

Crowdfunding energy and agriculture initiatives is nothing new. Yet new federal legislation has opened the gates to allow crowdfunding for for-profit companies — and the oil industry is jumping at the opportunity.

Two Texas companies, EnergyFunders and CrudeFunders, are reaching out to investors to fund smaller projects big banks would toss back. While crowdfunding efforts could open up the oil and gas industry to new investors, some experts warn those inexperienced with the industry to proceed with caution.

“I don’t want to pour cold water on what might be a valid new source of funding, but from the investor’s point of view I would say a very strong caveat emptor (buyer beware),” cautioned Christopher Ross, a former BP Plc executive and current finance professor at the University of Houston.

For those without an understanding of drilling technology, mineral leases and royalties, and geology, directly investing in the oil and gas industry could get tricky, he warns.

So far, EnergyFunders is doing its part to remain transparent by posting data on all of its projects, including lease information and seismic data, on its website for investors.

With prices expected to continue at record lows, now could be a great time to get in on the ground floor of an oil project. Potential investors should do their homework before jumping into any project they don’t fully understand.

 

Recognize All HOT Lanes as Fixed Guideways for Transit

Our recommendations for reforming surface transportation policy have been so well received that we want to offer two more ideas. Our latest recommendation focuses on high occupancy toll (HOT) lanes that reduce congestion and provide a virtual guideway for express bus service. My colleague Robert Poole and I recommend that the federal statute be changed so that the Federal Transit Administration (FTA) counts all high occupancy toll (HOT) lanes count as “fixed guideway miles.”

Federal transit policy recognizes that an HOV lane converted to a variably tolled HOT lane provides buses with a “virtually exclusive guideway,” since variable pricing permits buses and cars to travel uncongested even during peak periods. Such HOT lane miles are counted toward a metro area’s total of “fixed guideway miles” for funding purposes, if used by transit buses. But the Federal Transit Administration withholds this designation for HOT lanes added as new capacity, even though such lanes function identically to those converted from HOV lanes. Region-wide BRT/express bus service will be fostered by creating seamless HOT networks. But a large fraction of such networks will be new capacity, since most freeways do not have HOV lanes to convert.

Changing the policy will require two modifications. First, revise the definition of “fixed guideway miles” to include all HOT lanes, whether HOV conversions or new capacity. This would acknowledge the functional identity of priced lanes as virtual fixed guideways, regardless of how they came about. Second, permit transit agencies to use New Starts and Small Starts grant funds to pay for a portion of new-capacity HOT lanes, based on the projected share of passenger miles of travel that will be generated by bus service on the new-capacity HOT lane.

This change would provide travel options and improve express bus service in the U.S. Very few state DOTs or transit agencies can afford to develop bus-only lanes on freeways, since the vast majority of their capacity would be unused even during peak periods. HOV lanes are frequently over-used, providing little or no time-saving advantage for express-bus service. HOT lanes are a proven way to use all the capacity of a specialized lane, with buses and paying vehicles both benefiting from congestion management via variable pricing. Current FTA policy artificially distinguishes between HOT lanes based on how they came about, thereby discouraging creation of seamless networks that require construction of new lanes. Under the second part of this policy, transit agencies could partner with a toll agency or state DOT to jointly develop new HOT/BRT lanes, sharing in any net toll revenues (after covering capital/debt-service and operating costs) in proportion to the agency’s contribution to the capital costs of the project. Thus, in addition to helping create the network of virtually exclusive bus lanes, the transit agency would receive part of any net toll revenue as an additional ongoing source of revenue.

This change would not cost taxpayers a dime, since it would merely create new options to encourage HOT/BRT lanes and networks. It would give transit agencies and highway agencies a new incentive to work together creating HOT/BRT networks, a highly cost-effective way to increase transit infrastructure.

The Case for Lifting the Crude Oil Export Ban

The United States is running out of room in its crude oil storage facilities and the question is ― where does the crude go now? As domestic crude oil production continues to rise, it has no place to go due to an obsolete ban on the exportation of crude oil in the U.S.

The International Energy Agency said in its monthly oil market report that U.S. supply shows no signs of slowing down, an assessment that pushed the price of crude below $57 a barrel and lowered gas prices at the pump. Low gas prices led to record amounts of driving in 2014, culminating in a record-breaking December, new federal data shows.

With the U.S. now producing more oil and natural gas than Russian and Saudi Arabia, over 11 million barrels a day (55 percent increase from five years ago), lifting the U.S. oil export ban would:

  • Add over $1 trillion in government revenues by 2030.
  • Create 300,000 more jobs a year.
  • Increase current U.S. production from 8.2 million B/D currently to 11.2 million B/D.
  • Cut the U.S. oil import bill by an average of $67 billion per year.
  • Lower gasoline prices by an annual average of 8 cents per gallon.
  • Save U.S. motorists $265 billion for during the 2016-2030 period.

Despite the fact that oil imports are at the lowest level since 1985, the U.S. still imports 33 percent of its oil from foreign sources. A broad view by the public is that U.S. oil should stay at home will test export proponents. A majority of voters, 53 percent, opposed exporting oil. At present, the current policy is discouraging additional crude oil supplies from being brought to market, which actually makes gasoline prices higher than they otherwise would be. The increased economic activity resulting from the rise in crude production would support an average of 394,000 additional U.S. jobs over the 2016-2030 period, with a peak of 964,000 jobs in 2018.

Doing away with exports restrictions would also generate added benefits to U.S. household income, gross domestic product (GDP) and government revenues. The average disposable income per household would increase by an additional $391 in 2018 as benefits from increased investment.

The current hydraulic fracturing and American energy boom is reducing oil imports by 22 percent next year. Lifting the crude oil export ban would increase the energy boom. This boom could also reduce the oil imports of European countries. The United States could replace Russia title as “Europe’s gas station” and provide all of Europe’s energy needs.

Federal Land Regulation Continues to Strangle Energy Production…

Federal land ownership in the United States continues to grow despite the federal government already owning more than half of most of the western states. While some have been advocating for the return of this land to the states or protect it from being closed off from oil and gas operations, the Obama Administration has worked just as hard to increase the federal government’s land grab. Contrast:  As President Bush’s second term as president was coming to an end, 4 million acres of land in Alaska was released by the Bureau of Land Management (BLM) for drilling and exploration. Seven years later, President Obama has proposed to set aside 12 million acres in Alaska, designating it as “wilderness” and off-limits to up to 42 billion barrels of oil.

Most recently, the Obama administration has proposed the largest critical habitat designation ever, setting aside 226 million acres of ocean off Alaska’s coastline (an area twice the size of California) to protect the Arctic ringed seals who were listed as “threatened” under the Endangered Species Act in 2012 after environmental activists petitioned the Obama administration.

Even though NOAA says that oil and gas activities have occurred in areas with protected species in the past, designating these Alaskan waters as a critical habitat would mean that all oil and gas activity would have to be evaluated based on how much it would impact ringed seals. Alaska’s outer continental shelf is considered to be one of the world’s largest untapped oil and gas reserves boasting as much as 27 billion barrels of oil and 132 trillion cubic feet of natural gas.

Other federal lands expansion that slipped into the National Defense Authorization Act (NDAA) would add 250,000 acres of new wilderness in western states and put thousands more acres off limits to drilling and mining in states.

In 2011, the U.S. Forest Service originally tried to ban fracking in the 1 million acre George Washington National Forest, but failed. It would have been the first outright ban on the practice in a national forest.

Much of the land targeted for government takeover holds great oil and natural gas resources which could provide jobs in the energy industry and a flow of resources from our own American supply. Once those lands become “monuments,” access to those natural resources is limited and in the hands of the federal government. The government currently owns 650 million acres, or 29 percent of the nation’s total land.

The Omnibus Public Land Management Act of 2009 and the Northern Rockies Ecosystem Protection Act (NREPA). The Omnibus bill was passed with over 100 land grab measures. The NREPA included federal takeover of nearly 24 million acres of land in the American west and northwest; however, NREPA never made it out of the House subcommittee.

The ability of the White House to simply snatch land from under the feet of the American people comes from the Antiquities Act of 1906. The Act was initially intended to set aside small portions of land for monuments and national parks, but has since been abused by lawmakers to control large quantities of property. Federal government land control and land acquisition takes away opportunities for development, particularly when it comes to much needed energy resources. The land designated as “monument” space could have created jobs, boosted the economy and enhanced our energy security.

Sand Dune Lizard and Lesser Prairie Chicken Could Halt Industry

The plight of two species is putting thousands of acres and the future of the oil and gas industries at risk. If put on the endangered species list, the sand dune lizard and the lesser prairie chicken could block off land from oil and gas companies across multiple states.

The lesser prairie chicken was added to the threatened species list after a court ruling in March 2014. The chicken has known habitats in Colorado, Kansas, Oklahoma, Texas and New Mexico, and land management decisions could impact over 100 million acres across the five states.

The sand dune lizard is posing particular problems for the oil industry in West Texas. The lizard’s 800,000 acre habitat spans Southeastern New Mexico and West Texas and just happens to sit right in the middle of Texas oil country.

Given the Obama administration’s recent demonstrations of its willingness to put potentially beneficial land under federal protection, many in the oil and gas industries are concerned that even the potential presence of these species could shut down oil and gas rich areas from exploration or further development.

Shutting down oil-rich areas to protect these species isn’t just bad for the oil and gas industry ― it’s bad for its employees as well. Texas state officials and energy executives have warned that classifying the sand dune lizard as an endangered species could cost thousands of Texans their jobs.

Eliminate Transportation (TIGER) Grants

Approximately every six years, Congress reauthorizes U.S. surface transportation policy. One of these reauthorizations is overdue, providing an opportunity to make U.S. transportation policy more free-market oriented. I have chosen six programs or policies that badly need to be changed. Over the next two weeks, I will summarize each of these programs.

My first recommendation is to eliminate the Transportation Investments Generating Economic Recovery (TIGER) grants. The TIGER program is an executive agency discretionary funding program that supports road, rail, transit and port projects. Started in 2009, as part of the American Recovery and Reinvestment Act (ARRA) also known as the Stimulus, TIGER is supposed to award funding based on merit. Unlike most federal programs, which appropriate money based on a formula set by Congress, the TIGER program is administered and audited by the executive branch.

Unfortunately, the executive branch’s administration of the TIGER program has failed to follow the rules and expectations of the program.

The program is supposed to achieve critical national objectives, yet more than 60 percent of the grants have supported local transit, pedestrian or bicycling projects. While such projects have a role, they are not national projects and should not be funded by a national-oriented program. Several of the road, rail and port projects are also locally oriented.

Projects are supposed to be selected based on “rigorous” criteria, but DOT uses vague metrics. For “livability,” the department’s definition is “Significantly enhance the creation of more convenient transportation options for the traveler,” which could mean almost anything project sponsors want it to mean.

Lower ranked projects are frequently funded while higher ranked projects are not. In the first round of TIGER grants, the agency funded almost as many “recommended” projects as “highly recommended” projects. In the fifth round of TIGER grants, DOT changed the ratings of some projects from “not recommended” and “recommended” to “highly recommended” in order to justify funding them.

The program provides limited information to applicants and the public. Despite three requests from the Government Accountability Office to provide better documentation of the review process and to release more information to applicants who fail to win grants and to taxpayers, USDOT has failed to provide more information as requested about the program.

Democratic districts have received a disproportionate share of the grants. In the third round of grants Democratic districts received 61% of the grants and 69% of the funding, despite comprising 49% of the total congressional districts. Democratic districts were overrepresented as award winners in all six rounds of TIGER Grants.

Since funds would be allocated by Congress we don’t expect eliminating the program will cost taxpayers anything. In fact, staff reductions could follow permitting executive branch employees to engage in other activities.

 

Add Taxpayer Protections to Railroad (RRIF) Program

Over the next few weeks, I will be highlighting six national transportation policies that need to be changed. 2015 provides a great opportunity to seek these changes because the federal bill that governs surface transportation policy is up for renewal. Republican majorities in the House and the Senate should create a more free-market oriented transportation policy.

Today’s recommendation is to add taxpayer safeguards to the Railroad Rehabilitation and Improvement Financing (RRIF) program. RRIF was created by 1998’s TEA-21 legislation. Under its provisions, the Federal Railroad Administration (FRA) can devote up to $35 billion to loans and loan guarantees for freight and passenger railroad infrastructure. Unlike DOT’s Transportation Infrastructure Finance and Innovation Act (TIFIA) loan program, there are few taxpayer safeguards in RRIF, other than a requirement for recipients to pay a credit risk premium. Loans may be extended for 100% of a project’s estimated cost with no explicit requirement for a dedicated revenue repayment stream.

We recommend adding four taxpayer safeguards similar to those in TIFIA. First, restrict RRIF loans to 33% of the project’s budget. Second, require that senior debt of the project carry an investment-grade rating. Third, require that the loan recipient document the existence of a revenue stream dedicated to retiring the RRIF and other loans. And fourth, require that in the event of project bankruptcy, the RRIF loan moves to equal status with the primary debt (called the “springing lien” provision in TIFIA).

Why are these safeguards needed? The current RRIF program in effect invites applicants to apply for loans for risky, speculative projects. RRIF should be reconceived as providing supplemental, gap-closure financing, like TIFIA, rather than being the primary or sole source of a project’s financing. The speculative XpressWest high-speed rail project was ultimately rejected by the FRA, but only after strong objections were raised by Members of Congress. That project had requested a RRIF loan of $5.5 billion, which was between 80 and 100% of the estimated project budget. Limiting RRIF loans to a maximum of 33% (as in the original TIFIA legislation) would make it clear that projects must demonstrate their economic and financial feasibility by being able to attract primary financing (investment-grade senior debt) from the capital markets, with RRIF providing supplemental, gap-closure financing. Together with the requirement for the applicant to document the existence of a dedicated revenue stream, these reforms would provide significant protections for federal taxpayers, akin to those of the successful TIFIA program.

This change could save taxpayers billions. The taxpayer protection provisions would reduce the number of risky, speculative loan applications, thereby saving FRA time and money in processing them, resulting in modest FRA budgetary savings. More broadly, the provisions would protect taxpayers from future defaults that could result in billions of dollars in unpaid RRIF loans.