climate-change

William S. Becker: Children v. Dirty Business

by William S. Becker on April 11, 2012

Huffington Post…

On May 11, a group of children will face off against the Obama administration and the National Association of Manufacturers for the latest round of a David vs. Goliath battle in federal court. The kids filed a lawsuit last year against the administration, arguing that common law requires governments to protect critical natural resources on behalf of current and future generations. In this case, the kids argue, the government has an inherent duty to protect the atmosphere from greenhouse gas emissions, and all of us from the impacts of global climate change. In their lawsuit, a group called Our Children’s Trust filed against a who’s who of administration officials including EPA Administrator Lisa Jackson, Interior Secretary Ken Salazar, Agriculture Secretary Tom Vilsack, Commerce Secretary Gary Locke and Energy Secretary Steven Chu. Earlier this month, U.S. District Judge Robert Wikins ruled that the National Association of Manufacturers (NAM) and several California businesses could intervene against the kids, based on the argument that limiting greenhouse gas emissions would lead to a “diminution or cessation of their businesses” — in other words, jeopardize their profit margins. Now, NAM and the administration have asked the judge to dismiss the case. That’s the motion to be considered in May. Blogger Ben Jervey has done a good job describing the lawsuit’s background , including who the kids are and why they’re doing this, so I won’t go into it here. But I am curious about an argument attributed to one of the attorneys for the businesses, that companies have a “legally protected cognizable interest to freely emit CO2.” Of course, what is legal is not necessarily moral, but morality is the province of the clergy, not the courts. More to the point, it would seem that the public — present and future — has a “cognizable interest” to live without the natural disasters, health hazards, humanitarian tragedies and threats of war that are the likely results of climate change and that already are in evidence today. Further, as unofficial co-plaintiffs in this case, we might all point out that while companies can resolve this problem by installing better emission controls, or using cleaner fuels, or changing the nature of their operations, the damages from greenhouse gas emissions are not so easily avoided. In fact, scientists tell us that some of the damages are irreversible. At the heart of this case, it seems to me, is not whether current law permits corporations to willfully alter the atmosphere with their wastes. If we depend solely on political bodies to protect the climate, for example, then we will politicize the atmosphere as well as polluting it. The health of oceans, forests, fresh water supplies and soils — and consequently human beings — all will be subject to the whims and prejudices of politicians. The real issue is whether the health of the natural systems and resources that all of us “own” is protected by a doctrine that transcends the interests of any one industry, the statutes of any one Congress, the actions of any administration, or the abdication of responsibility by any of them. As a 65-year-old, I must admit some embarrassment that our children now feel obligated to face off against the giants of industry and government and all their lawyers. These kids are stepping in where their elders in Washington and the international community have feared to tread. But it’s also heartening and none too soon. What could be established as a result of this lawsuit is that protecting a global life-support system from irreparable harm is a higher priority than corporate profits — profits derived in part from making the rest of us pay the god-awful price of greenhouse gas emissions. It’s our kids who will have to live with the court’s ultimate decision, but it’s in the interest of all of us for Judge Wilkins to allow the lawsuit to proceed.

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William S. Becker: Children v. Dirty Business

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Karen Steuer: Where Have All the Farms Gone?

by Karen Steuer on March 27, 2012

Huffington Post…

During the past 50 years, animal agriculture has gone through a seismic shift in the United States. Long gone are the iconic scenes of American landscapes dotted with family farms and red barns. Most of these have been replaced by industrialized facilities controlled by large corporations that rely on concentrated animal feeding operations (CAFOs). In this system, cavernous warehouses crowded with thousands — even tens of thousands — of animals form the equivalent of an agricultural assembly line. And independent farmers, once the cornerstone of rural America, struggle to compete in a marketplace dominated by a few big corporations. As large corporations (known as integrators) have applied an industrial model to farming, they have also generated a host of new problems. The CAFO model relies on three interlinked practices in order to increase profits: Maximize the number of animals squeezed into the least amount of space and require the fewest number of employees to provide care. Administer continual doses of antibiotics to the animals to prevent the diseases prevalent in their close-quarters housing. Minimize the disposal cost for the substantial volume of animal waste produced by the facilities. These practices may turn a profit for the big corporations, but they are disastrous for human health and the environment. Up to 1 billion tons of manure is generated by livestock operations every year, much of it from CAFOs. In some cases, the waste is stored in large lagoons or open piles that can leak or spill into adjacent land and water. In other cases, manure is liberally spread on fields in such overwhelming concentrations that soil and crops often cannot impede all of the nitrogen, phosphorus, and pathogens from reaching public waterways. The mishandling of manure has resulted in contaminated drinking water sources for 40 percent of the U.S. population in recent years, according to Environmental Protection Agency estimates. Tainted drinking water, destruction of fish and other aquatic life, and polluted recreation areas, however, are just part of the damage caused by CAFOs. Countless independent farmers have been pushed out of business. Millions of animals have been confined to crates or cages and subjected to inhumane practices. The human health threat of antibiotic-resistant infections continues to rise. And the corporate integrators have largely been insulated from regulation, transparency, and requirements many other industries must follow with regard to pollution. Shortly after the Pew Commission on Industrial Farm Animal Production released a groundbreaking report on this topic in 2008, the Pew Environment Group launched a campaign aimed at reforming this sector of agriculture. Pew is working to address these challenges by securing effective, sensible government oversight to protect water resources and human health; urging the industry to change its practices; and building public awareness of the problems. During the next several months, I will use this series to describe the environmental concerns associated with CAFOs, the impact on independent farmers, the industry’s resistance to change, and how this issue affects our quality of life in the United States. For more information and to take action, please click here .

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Karen Steuer: Where Have All the Farms Gone?

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Daniel Souweine: GM’s CEO Needs to Draw a Line on Climate Change Denial

March 26, 2012

It’s time for GM CEO Dan Akerson to show his customers, and the country, exactly where GM stands on climate change. One month ago, leaked documents revealed that General Motors was one of numerous corporations funding the Heartland Institute , a leading “think tank” for climate change denial. Forecast the Facts immediately launched a campaign calling on GM to pull its funding. Since then, more than 20,000 people, including 10,000 GM owners, have signed on. In response to the growing public pressure, GM CEO Dan Akerson told an audience of hundreds at San Francisco’s Commonwealth Club that he would review the matter personally. That was nearly three weeks ago. Since then: silence. But while GM’s public pronouncements have stopped, there has been much discussion of Heartland at General Motors HQ. GM insiders have told our campaign that Mr. Akerson did ask for a review of the Heartland funding, the review was completed, and the company does not plan to fund Heartland in the future. Let me repeat that: the decision has been made. Heartland will not get another dime of GM’s money. This is a real victory and a testament to the thousands of people who spoke out about their disappointment with GM. But our campaign is in no way over. Because those insiders also say that GM refuses to publicly disavow their Heartland donation. GM officials explained their reticence by saying they didn’t want to “flog” anyone in public. Which, of course, sounds quite respectful and proper. Except when you consider what the Heartland Institute is: a big-oil funded political operation that spends most of its time and money denying the existence of climate change, despite the overwhelming international scientific consensus. And it’s not just scientists who are convinced (as if they weren’t enough). The military is predicting a massive increase in wars fueled by climate change. The insurance industry says that climate change is the single greatest risk factor of the 21st century. Billions of people will have their lives drastically altered for the worse by unprecedented food shortages, waves of severe weather and rising seas that could drown whole metropolitan areas. Again, the primary reason that Heartland exists is to pretend that none of this is even happening. Given the irrefutable nature of the science and the incredible stakes of the issue, what Heartland does should lie completely outside the confines of reasonable political debate. Lying to the American public about climate change should be seen as equivalent to promoting eugenics or arguing that smoking does not increase the chances of lung cancer. And in most countries it is. But not in the U.S., where uncertainty about climate change remains a widely held view, and (sadly) a standard talking point for the Republican Party. That’s where GM comes in. The fortunes and identity of GM, more than any other company, are intertwined with America. What they do, and say, about climate change is singularly important — which is why quietly backing away from Heartland is simply not enough. For their decision to defund Heartland to mean anything, it must be made public. Because as long as it is considered politically and socially acceptable to say that climate change isn’t happening, or that it’s not caused by humans, or that we shouldn’t do anything about it, then, well, we won’t. This is not about “flogging” a prospective charity. It’s about taking a stand for the truth. Dan Akerson seems like he should be up to this task. He is certainly not shy in touting GM’s recent environmental achievements, including high MPG cars, the electric Chevy Volt and major manufacturing waste reductions. So why can’t he be equally vocal about pulling away from Heartland? All he has to do is say: “I found out that GM was funding a group that not only doesn’t believe in climate change, but is actively trying to convince schoolchildren that it doesn’t exist. That’s not what GM stands for, and it’s not what America should stand for, and so I want everyone to know that we won’t be giving that group any more money?” When Dan Akerson addressed the Commonwealth Club audience and pledged to review the Heartland funding, he said, “I always say, actions speak louder than words.” We couldn’t agree more. The fact that Akerson has quietly moved to cut GM’s funding of Heartland is an important step. But the question remains for Mr. Akerson — if you take an action and no one knows about it, does it even make a sound?

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Coal Mining Company Settles Lawsuit Over Deadly Flood

March 9, 2012

LOUISVILLE, Ky. (AP) — A Kentucky mining company settled a lawsuit Friday that blamed mountaintop mining for stoking a 2010 flood that ravaged a tiny Appalachian community. The lawsuit filed in August 2010 in Pike County said rainwater runoff from Cambrian Coal Corp.’s surface mine during a July 17, 2010, storm turned nearby Harless Creek into a “raging river.” The flooding engulfed homes and carried away cars and other property. Ned Pillersdorf, a Prestonsburg attorney representing the plaintiffs, said the terms of the settlement reached Friday with Cambrian Coal are confidential. A trial had been scheduled for Monday. No one answered the phone Friday at Cambrian’s office in Belcher, Ky. Residents argued that the surface mining activity on the mountaintop, which stripped away trees, topsoil and vegetation, caused “excessive water flow that resulted in damages upon all of the plaintiffs’ property,” the lawsuit said. A hydrological analysis by a Virginia consulting firm said mining in the area increased the peak stormwater runoff by 44 percent during the rains. The study said the company’s mining and failure to restore the area directly caused the increased flow of water down the valley and into Harless Creek. Video posted on YouTube by a resident during the storms showed cars and a shed being carried away by the creek, which had swelled into a swift-moving muddy river. “It rained some but not that long and it didn’t rain that hard,” said Harold Thacker, a lifelong resident of the area who filmed the flooding. “That water came up like a tidal wave.” The 2010 storm caused flooding throughout Pike County, killing two people and knocking out water service to thousands of residents. Federal officials declared a major disaster in the area. Pillersdorf said Cambrian’s mining permit had expired the year before and state officials had not enforced reclamation laws that require mining companies to return the land to its original shape, plant trees and restore vegetation. Flyover video recorded by Pillersdorf showed a brown, treeless landscape directly above the Harless Creek area after the flood. Pillersdorf said he has three other pending eastern Kentucky cases that are similar to the Pike County suit, in which surface mining is blamed for causing or intensifying flooding. “I do not think it’s a coincidence that the worst damage occurs in areas directly below unreclaimed strip mines,” he said. The Harless Creek suit also originally named a second mining, company, AEP Kentucky Coal, but residents settled with AEP in October, Pillersdorf said. The residents had sued both companies for damage compensation, punitive fines and the replacement of water supplies. ___ Follow Dylan Lovan on Twitter: www.twitter.com/dylanlovan

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Feds Announce Charges For Deadly Utah Mine Collapse

March 9, 2012

SALT LAKE CITY (AP) — The operator of a Utah coal mine where a 2007 collapse led to the deaths of nine people agreed on Friday to plead guilty to two misdemeanor criminal charges and pay a $500,000 fine. Six miners died at Crandall Canyon in central Utah in the August 2007 collapse so powerful that it initially registered as a 3.9-magnitude earthquake. Another cave-in 10 days later killed two rescuers and a federal inspector. The operation was eventually called off after drilling into the mountain found no sign of the trapped men. Their bodies remain deep in the mine’s catacombs. In documents filed in federal court in Salt Lake City Friday, attorneys for Genwal Resources Inc. noted that while it agreed to plead guilty to two counts of violating mandatory health and safety standards and pay the fine, the company can withdraw the agreement should the court not accept the plea. The company still maintains it’s mine was safe but said the plea agreement “avoids Genwal putting its former employees, their families, and members of the community at large through the ordeal of reliving the tragic events,” according to a statement Friday from company lawyers. “Significantly, the agreement reflects the lack of evidence that any conduct by the company caused the accidents,” the statement said. Genwal, based in Pepper Pike, Ohio, is an affiliate of Murray Energy Corp. U.S. Attorney David B. Barlow said the charges support their case. According to the two counts filed Friday, Genwal “willfully violated a mandatory health and safety standard” by failing to report the initial accident to federal authorities within 15 minutes. The second charges the company violated approved roof control plans. “These are the charges that we felt we could prove beyond a reasonable doubt,” Barlow said. Relatives of the victims only heard about the charges Friday morning, and were surprised because they had previously been told there wouldn’t be any charges filed, said Alan Mortensen, an attorney representing eight of the families. While there were mixed reactions, Mortensen said Genwal’s guilty plea brings some closure. “It put Genwal in a position where they had to admit there were willful violations,” Mortensen said. However, he added, the company’s steadfast denial of fault “shows a continuing pattern of them not taking responsibility. It’s very arrogant and unapologetic.” The company and its insurers had previously settled with family members of the dead miners or rescuers, but the terms of that agreement were never disclosed publicly. Lawyers on both sides have said it exceeded the more than $20 million paid to families of 27 victims of a 1984 fire at the closed Wilberg mine in the same Utah coal district. The method of mining used at the Genwal site where the deadly collapse occurred has a history of being disproportionately deadly, according to federal safety studies. The Crandall Canyon mine collapse happened while miners were engaged in a method called “retreat mining,” in which pillars of coal are used to hold up an area of the mine’s roof. When that area is completely mined, the company pulls the pillar and grabs the useful coal, causing an intentional collapse. Tony Oppegard, a former top federal and state of Kentucky mine safety official who is now a private attorney in Lexington, Ky., has called the technique “the most dangerous type of mining there is.” According to the American Society of Safety Engineers, retreat mining requires very precise planning and sequencing to ensure roof stability while the pillars supporting the roof are removed. The reason the practice is used is that it pays off: The last bit of coal taken from pillars is pure profit, Oppegard said. Plus, if someone violates rules during pillar removal and there is a collapse, the evidence of rule violations are gone, he added. Retreat pillar mining is one of the biggest causes of mine roof collapse deaths, according to studies done by the National Institutes of Occupational Safety and Health. “We recognize that nothing we can do will ever bring back the miners who perished, restore the health of those who were injured during the rescue, or erase the nightmares that still haunt those who were firsthand witnesses to these tragedies,” Barlow said. “It is this office’s intent that these charges send the message to mining companies everywhere: obey the safety laws.” ___ Associated Press writer Paul Foy contributed to this report. AP Science Writer Seth Borenstein also contributed from Washington.

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Exxon CEO Speaks Out Against Federal Regulations

March 9, 2012

* Complex regulation hinders energy development, economy * State, local regulation sufficient * Shell, Statoil CEOs more conciliatory about regulations By Kristen Hays HOUSTON, March 9 (Reuters) – State and local regulations in shale oil- and natural gas-rich plays across the United States provide sufficient oversight, compared to the “dysfunctional” federal layers that could hinder development as well as the economic recovery, Exxon Mobil Corp Chief Executive Rex Tillerson said on Friday. Tillerson, addressing an audience of energy executives at the annual CERAWeek conference in Houston, said layers, complex regulatory processes in oil and gas development “has become an obstacle to getting anything done.” “This type of dysfunctional regulation is holding back the American economic recovery, growth, and global competitiveness,” he said. Tillerson said state and local governments needed protections sufficiently to oversee oil and gas activity while collaborating with producers. “They provide us the road map with how to get something done,” Tillerson said. “Today the regulatory process is now so complicated and so involved with so many different agencies, it’s a road map of how to not get anything done.” White House spokesman Clark Stevens said in an email to Reuters that the Obama Administration is developing “sensible standards to protect air and water quality” with input from the industry and others to ensure continued production. CEOs of two other European major oil and gas producers appeared more conciliatory about regulations when they addressed executives at the conference earlier this week, but they didn’t overtly differentiate state and local regulations from federal oversight. Peter Voser, CEO of Royal Dutch Shell said the industry can handle environmental and operational challenges of tight and shale gas production, particularly when governed by “well-targeted and robustly enforced regulations.” And Helge Lund, CEO of Norway’s Statoil, said public trust and confidence in the industry’s ability to maintain safe operations is crucial. “There is a huge upside for working to ensure we have the right regulations, rather than being perceived as the industry that fights regulations,” Lund said. Tillerson cited as an “unfortunate decision” President Barack Obama’s rejection of a federal permit to allow TransCanada to build its proposed $7 billion Keystone XL pipeline from Canada to Texas to transport Canadian oil to U.S. Gulf Coast refineries. Environmental groups and some states had opposed the pipeline on integrity concerns and whether it would increase U.S. dependence on emissions-heavy Canadian oil production. Tillerson called the rejection “a product of political calculations in Washington.” He also said the industry learns from mistakes, such as the 2010 blowout of a BP Plc deepwater well in the Gulf of Mexico that spewed more than 4 million barrels of crude into the basin. “It reminded all of us that the failure to manage risk effectively carries enormous consequences, in terms of loss of life, significant financial impact, and environmental harm,” Tillerson said.

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Officials Say Fracking ‘Almost Certainly’ Caused Earthquakes

March 9, 2012

COLUMBUS, Ohio — A dozen earthquakes in northeastern Ohio were almost certainly induced by injection of gas-drilling wastewater into the earth, Ohio oil and gas regulators said Friday as they announced a series of tough new regulations for drillers. Among the new regulations: Well operators must submit more comprehensive geological data when requesting a drill site, and the chemical makeup of all drilling wastewater must be tracked electronically. The state Department of Natural Resources announced the tough new brine injection regulations because of the report’s findings on the well in Youngstown, which it said were based on “a number of coincidental circumstances.” For one, investigators said, the well began operations just three months ahead of the first quake. They also noted that the seismic activity was clustered around the well bore, and reported that a fault has since been identified in the Precambrian basement rock where water was being injected. “Geologists believe it is very difficult for all conditions to be met to induce seismic events,” the report states. “In fact, all the evidence indicates that properly located … injection wells will not cause earthquakes.” Northeastern Ohio and large parts of adjacent states sit atop the Marcellus Shale geological formation, which contains vast reserves of natural gas that energy companies are rushing to drill using a process known as hydraulic fracturing. That process involves freeing the gas by injecting water into the earth, but that water needs to be disposed of when companies are done with it. Municipal water treatment plants aren’t designed to remove some of the contaminants found in the wastewater, including radioactive elements. A common practice is to re-inject it into the ground, a practice banned in some states. The improper placement of the Youngstown well stemmed in part from inadequate geological data being available to regulators, the report states. New rules would require a complete roll of geophysical logs to be submitted to the state. “These logs were not available to inform regulators of the possible issues in geologic formations prior to well operation,” the document says. Requiring well operators to submit more comprehensive geologic data is just one of the added regulations the department will either impose immediately or pursue through legislative or rule changes. Among other changes: _ Future injection into Precambrian rock will be banned, and existing wells penetrating the formation will be plugged. _ State-of-the-art pressure and volume monitoring will be required, including automatic shut-off systems. _ Electronic tracking systems will be required that identify the makeup of all drilling wastewater fluids entering the state. “Ohio has developed a new set of regulatory standards that positions the state as a national leader in safe and environmentally responsible brine disposal,” Natural Resources Director James Zehringer said in a prepared statement. “Ohioans demand smart environmental safeguards that protect our environment and promote public health. These new standards accomplish that goal,” he said. The U.S. Environmental Protection Agency gave Ohio regulatory authority over its deep well injection program in 1983, deeming that its state regulations met or exceeded federal standards. The new regulations would be added to those existing rules.

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Bill McKibben: Another Keystone XL Victory

March 8, 2012

Today was… quite a day. The bell that people struck last August when they sat in at the White House to block the Keystone Pipeline was still resonating. Not loudly — the oil money in Congress muffled the sound. But loudly enough that we squeaked through by a 4-Senator margin, defeating a Republican amendment mandating the pipeline’s construction. A year ago almost no one had heard of the pipeline. Even four months ago, a poll of 300 “energy insiders” still found 97 percent predicting it would get its permit. But it didn’t — TransCanada can of course re-apply, but that will be another battle, down the road. For now, people power (the largest civil disobedience action in 30 years, 800,000 messages to the Senate in a single day, bodies encircling the White House shoulder to shoulder five deep) overturned the odds. And though most Americans don’t know it, today is also International Women’s Day, appropriate in this case because many of the very strongest fighters against this project right from the beginning were women of unusual distinction. I was reminded of that earlier this week, when Debra White Plume was arrested on the Lakota reservation for blocking trucks carrying giant equipment up to the tar sands. She’s an eloquent fighter, part of the large crew of indigenous leaders who were the first to sound the alarm about the tarsands and have been at the center of the battle ever since. But this time she wasn’t outside the White House or at a Congressional hearing — she was on a lonely reservation road with a small crowd of other people facing down giant semis and tribal police. You need to read her full account of what happened, both because it’s powerful and because she’s a great writer. My favorite passage: On the ride home from jail, I shared with my children my jail time, they were curious what the cell looked like and what I did in there for 3 hours. I told them it was empty, nothing in there but a toilet, not even drinking water. I told them I just paced back and forth, and read the grafitti scratched into the walls that said “this cell is 11 by 6,” “Tristan loves Luke,” “Angel and Wildflower have outlaw love,” and “I used to work here, now I am IN here.” My teens were sad, but understood why this happened, and they were glad me and their Poppa were coming home. I thought of Women’s Day again in the afternoon, when the votes in the Senate were being tallied and we were all doing the digital equivalents of biting our nails (refreshing Twitter, mostly). After the drama of the arrests and of encircling the White House had died down some, the hard work of maintaining this victory in the oil-soaked Congress fell to a small corps of Capitol Hill environmentalists. A few were men — Jeremy Symons from National Wildife Federation, Jason Kowalski from 350.org — but at the center were several indefatigable women, like Tiernan Sittenfeld of the League of Conservation Voters, Susan Casey-Lefkowitz from the National Resources Defense Council, and Lena Moffitt from the Sierra Club. The work they did was not glamorous — it was absolutely necessary, however.Day after day they tracked how each Senator was leaning, figured out which arguments would persuade which staffer, carted around briefing books, gave powerpoints, convinced donors to call the pols they’d funded. I don’t think I could do it — the constant match of their conviction against the cynicism that rules so much of Washington seems tougher for me to endure than my three days in Central Cell Block. But they did it with quiet grace, and they won And in the end, the two events — on the Lakota Reservation, and on the Hill — were the perfect summation of the whole Keystone campaign. The most grassroots of activists meshed easily and powerfully with the most entrenched of Washington enviros; there was no bickering or infighting — people seemed naturally to take the parts they were good at and trust others to do likewise, from Jane Kleeb running the Nebraska fight to Kenny Bruno coordinating the funders. Everyone worked toward a common goal with the resources they had at hand, and together we made them enough. Just enough, mind you, and our victory may not last forever. But today big oil actually lost something big. If you want to understand how, all those women are the place to start.

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Senate Fails To Stall EPA Measure

March 8, 2012

WASHINGTON (AP) — An attempt to stall environmental curbs on toxic boiler emissions has failed in the Senate. The bipartisan measure failed 52-46 Thursday, falling short of the 60 votes needed to pass. It would have forced the Environmental Protection Agency to rewrite a rule requiring boiler operators to install modern emissions controls. Boilers are the second-largest source of toxic mercury emissions after coal-fired power plants. The vote showed the Democrat-controlled Senate’s resistance to limiting the EPA, even on a regulation that covers more than 200,000 large industrial boilers used in different industries. Seven Democrats and one independent sided with all but one Republican in favor of the stalling measure. The EPA had sought more time to draft the rule, to replace one thrown out in 2007, but the court denied its request.

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Robert Alvarez: No Nuclear Nirvana

March 6, 2012

Nuclear power remains expensive, dangerous and too radioactive for Wall Street. March 5, 2012 — Is the nuclear drought over? When the Nuclear Regulatory Commission (NRC) recently approved two new nuclear reactors near Augusta, Ga., the first such decision in 32 years, there was plenty of hoopla. It marked a “clarion call to the world,” declared Marvin S. Fertel, president of the Nuclear Energy Institute. “Nuclear energy is a critical part of President Obama’s all-of-the-above energy strategy,” declared Energy Secretary Steven Chu, who traveled in February to the Vogtle site where Westinghouse plans to build two new reactors. But it’s too soon for nuclear boosters to pop their champagne corks. Japan’s Fukushima disaster continues to unfold nearly a year after the deadly earthquake and tsunami unleashed what’s shaping up to be the worst nuclear disaster ever. Meanwhile, a raft of worldwide reactor closures, cancellations, and postponements is still playing out. The global investment bank UBS estimates that some 30 reactors in several countries are at risk of closure, including at least two in highly pro-nuclear France. And Siemens AG, one of the world’s largest builders of nuclear power plants, has already dumped its nuclear business. Recently, Standard and Poor’s (S&P) credit rating agency announced that without blanket financing from consumers and taxpayers, the prospects of an American nuclear renaissance are “faint.” It doesn’t help that the nuclear price tag has nearly doubled in the past five years. Currently reactors are estimated to cost about $6 to $10 billion to build. The glut of cheap natural gas makes it even less attractive for us to nuke out. How expensive is the bill that S&P thinks private lenders will shun? Replacing the nation’s existing fleet of 104 reactors , which are all slated for closure by 2056, could cost about $1.4 trillion. Oh, and add another $500 billion to boost the generating capacity by 50 percent to make a meaningful impact on reducing carbon emissions. (Nuclear power advocates are touting it as a means of slowing climate change.) We’d need to fire up at least one new reactor every month, or even more often, for the next several decades. Dream on. Meanwhile, Japan — which has the world’s third-largest nuclear reactor fleet — has cancelled all new nuclear reactor projects. All but two of its 54 plants are shut down. Plus the risk of yet another highly destructive earthquake occurring even closer to the Fukushima reactors has increased , according to the European Geosciences Union. This is particularly worrisome for Daiichi’s structurally damaged spent fuel pool at Reactor No. 4, which sits 100 feet above ground, exposed to the elements. Drainage of water from this pool resulting from another quake could trigger a catastrophic radiological fire involving about eight times more radioactive cesium than was released at Chernobyl. Ironically, the NRC’s decision to license those two reactors has thrown a lifeline to Japan’s flagging nuclear power industry (along with an $8.3-billion U.S. taxpayer loan guarantee). Toshiba Corp. owns 87 percent of Westinghouse, which is slated to build the new reactors. Since U.S.-based nuclear power vendors disappeared years ago, all of the proposed reactors in this country are to be made by Japanese firms — Toshiba, Mitsubishi, and Hitachi — or Areva, which is mostly owned by the French government. According to the Energy Department, “major equipment… would not be manufactured by U.S. facilities.” For Southern Co., which would operate the Vogtle reactors, the NRC’s approval is just the beginning of a financial and political gauntlet it must run through. Over the strenuous objections of consumers and businesses, energy customers will shoulder the costs of financing and constructing this $17-billion project, even if the reactors are abandoned before completion. If things don’t turn out, U.S. taxpayers will also be on the hook for an $8.3-billion loan guarantee that the Energy Department has approved. The Congressional Budget Office and the Government Accountability Office estimate that nuclear loan guarantees have a 50/50 chance of default. Nearly four decades after the Three Mile Island accident, nuclear power remains expensive, dangerous, and too radioactive for Wall Street. The industry won’t grow unless the U.S. government props it up and the public bears the risks.

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EPA Heightens Scrutiny of PA Fracking

March 5, 2012

DIMOCK, Pa. (AP) — Tugging on rubber gloves, a laboratory worker kneels before a gushing spigot behind Kim Grosso’s house and positions an empty bottle under the clear, cold stream. The process is repeated dozens of times as bottles are filled, marked and packed into coolers. After extensive testing, Grosso and dozens of her neighbors will know this week what may be lurking in their well water as federal regulators investigate claims of contamination in the midst of one of the nation’s most productive natural gas fields. More than three years into the gas-drilling boom that’s produced thousands of new wells, the U.S. Environmental Protection Agency and the state of Pennsylvania are tussling over regulation of the Marcellus Shale, the vast underground rock formation that holds trillions of cubic feet of gas. The state says EPA is meddling. EPA says it is doing its job. Grosso, who lives near a pair of gas wells drilled in 2008, told federal officials her water became discolored a few months ago, with an intermittent foul odor and taste. Her dog and cats refused to drink it. While there’s no indication the problems are related to drilling, she hopes the testing will provide answers. “If there is something wrong with the water, who is responsible?” she asked. “Who’s going to fix it, and what does it do to the value of the property?” Federal regulators are ramping up their oversight of the Marcellus with dual investigations in the northeastern and southwestern corners of Pennsylvania. EPA is also sampling water around Pennsylvania for its national study of the potential environmental and public health impacts of hydraulic fracturing, or fracking, the technique that blasts a cocktail of sand, water and chemicals deep underground to stimulate oil and gas production in shale formations like the Marcellus. Fracking allows drillers to reach previously inaccessible gas reserves, but it produces huge volumes of polluted wastewater and environmentalists say it can taint groundwater. Energy companies deny it. The heightened federal scrutiny rankles the industry and politicians in the state capital, where the administration of pro-drilling Gov. Tom Corbett insists that Pennsylvania regulators are best suited to oversee the gas industry. The complaints echo those in Texas and in Wyoming, where EPA’s preliminary finding that fracking chemicals contaminated water supplies is forcefully disputed by state officials and energy executives. Caught in the middle of the state-federal regulatory dispute are residents who don’t know if their water is safe to drink. EPA is charged by law with protecting and ensuring the safety of the nation’s drinking water, but it has largely allowed the states to take the lead on rules and enforcement as energy companies drilled and fracked tens of thousands of new wells in recent years. In Pennsylvania, that began to change last spring after The Associated Press and other news organizations reported that huge volumes of partially treated wastewater were being discharged into rivers and streams that supply drinking water. EPA asked the state to boost its monitoring of fracking wastewater from gas wells, and the state declared a voluntary moratorium for drillers that led to significant reductions of Marcellus waste. Yet a loophole in the policy allows operators of many older oil and gas wells to continue discharging significant amounts of wastewater into treatment plants, and thus, into rivers. The state’s top environmental regulator, Michael Krancer, says Pennsylvania doesn’t need federal intervention to help it protect the environment. He told Congress last fall that Pennsylvania has taken the lead on regulations for the burgeoning gas industry. “There’s no question that EPA is overstepping,” Katherine Gresh, Krancer’s spokeswoman, told the AP. “DEP regulates these facilities and always has, and EPA has never before shown this degree of involvement.” The American Petroleum Institute urged the Obama administration last week to rein in the 10 agencies it says are either reviewing, studying or proposing regulation of fracking. “The fact is that there is a strong state regulatory system in place, and adding potentially redundant and duplicative federal regulation would be unnecessary, costly, and could stifle investment,” API Vice President Kyle Isakower said in a statement. EPA says public health is its key focus and insists it is guided by sound science and the law. “We have been clear that if we see an immediate threat to public health, we will not hesitate to take steps under the law to protect Americans whose health may be at risk,” said Terri White, an EPA spokeswoman in Philadelphia. The EPA investigations are being conducted amid reports of possibly drilling-related contamination in several Pennsylvania communities. In recent years, methane migrating from drill sites into private water supplies has forced scores of residents to stop using their wells and rely on deliveries of fresh water. Some residents complain the state agency has failed to hold drillers to account. In heavily drilled Washington County, near the West Virginia border, EPA staff are inspecting well pads and natural gas compressor stations for compliance with water- and air-quality laws. In Dimock, a village about 20 miles south of the New York state line, EPA stepped in after a gas driller won the state’s permission to halt fresh water deliveries to about a dozen residents whose wells were tainted with methane and, the residents say, heavy metals, organic compounds and drilling chemicals. Dimock holds the distinction of being Pennsylvania’s top gas-producing town, yielding enough gas in six months to supply 400,000 U.S. homes for a year. Some residents contend their water wells were irreversibly contaminated after Houston-based Cabot Oil & Gas Corp. drilled faulty gas wells that leaked methane into the aquifer 7/87/8— and spilled thousands of gallons of fracking fluids that residents suspect leached into the groundwater. Cabot first acknowledged, then denied responsibility for the methane it now contends is naturally occurring. It also asserts that years of sampling data show the water is safe to drink. The EPA looked at the same test results and arrived at a different conclusion. The well water samples “led us to conclude that there were health concerns that required action,” White said. EPA said its tests showed alarming levels of manganese and cancer-causing arsenic and that Cabot’s own tests found minute concentrations of organic compounds and synthetic chemicals, suggesting the influence of gas drilling. Cabot says its drilling operations had nothing to do with any chemicals that have turned up in the water. It points to a Duke University study last year that found no evidence of contamination from fracking. Yet the company racks up state violations at a far higher rate than its competitors in the Marcellus — 248 violations at its wells in Dimock alone since late 2007 — most recently last month, when the company was flagged for improper storage, transport or disposal of residual waste. State regulators levied more than $1.1 million in fines and penalties against the company between 2008 and 2010. And it is still banned from drilling any new wells in a 9-square-mile area of Dimock. While EPA agreed last month to deliver water to four homes along Carter Road, the agency said the tests did not justify supplying water to several other residents who had been getting their water from Cabot and who have filed suit against the company. The plaintiffs still don’t trust their wells, instead relying on water from the nearby Montrose municipal supply. Twice a day, six days a week, Carter Road resident Ray Kemble drives about eight miles to a hydrant in Montrose, fills a 550-gallon tank strapped to the back of a donated truck, and delivers water to as many as five homes — including his own. Anti-drilling groups are footing the bill, estimated at $500 per week. Kemble said his well water turned brown and became unusable in 2008, shortly after the gas well across the street was drilled and fracked. At his home, he filled a large plastic container dubbed a water buffalo from the tank on the truck. “Never had a problem before until Cabot came in,” Kemble said.

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BP Strikes Settlement Over Gulf Oil Spill

March 3, 2012

NEW ORLEANS — BP PLC has agreed to settle lawsuits from thousands of fishermen who lost work and others who claimed they were harmed by the oil giant’s 2010 Gulf of Mexico disaster, in the worst offshore oil spill in U.S. history. The oil giant said Friday it expects to pay out at least $7.8 billion dollars as part of the settlement. It says it expects the money to come from the $20 billion compensation fund that it previously set out. BP still has to resolve claims by the U.S. government, Gulf states and its partners in the doomed Deepwater Horizon project, in which pressure from a well a mile below the ocean’s surface blew up a massive drilling rig, killing 11 men and spewing oil into the sea for nearly three months.

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Iowa Criminalizes Recording Animal Abuse

March 3, 2012

DES MOINES, Iowa (AP) — Iowa became the first state Friday to make it a crime to surreptitiously get into a farming operation to record video of animal abuse. Republican Gov. Terry Branstad signed the law despite protests, letters and campaigns launched on Twitter and Facebook by animal welfare groups that have used secretly taped videos to sway public opinion against what they consider cruel practices. But Branstad’s action wasn’t a surprise. Iowa is the nation’s leading pork and egg producer, and the governor has strong ties to the state’s agricultural industry. He signed the measure in a private ceremony and issued no statement about his decision. Legislatures in seven other states — Illinois, Indiana, Minnesota, Missouri, Nebraska, New York and Utah— have considered laws that would enhance penalties against those who secretly record video of livestock, though the efforts have stalled in some states. Iowa’s law makes lying on a job application to get access to a farm facility a serious misdemeanor, punishable with up to one year in prison and a fine of up to $1,500. A second conviction carries harsher penalties. It won overwhelming approval in the Iowa Legislature on Tuesday. Animal rights groups had called on Branstad to veto the bill, saying it ignores strong public sentiment that favors proper treatment of animals and methods of oversight that ensure safe food. “Iowans deserve to know where their food is coming from, they deserve to know how the animals they’re consuming have been treated, they deserve to have the farms held accountable for the conditions in these facilities,” said Suzanne McMillan, spokeswoman for the American Society for Prevention of Cruelty to Animals. “He’s really going against all those concerns and priorities that Iowans hold.” But John Weber, who grows grain and raises hogs near Dysart, about 100 miles northeast of Des Moines, said most farmers don’t abuse or mistreat their animals and there are systems in place to deal with mistreatment when it’s reported. He called the new law a good piece of legislation. “It will give some protection for farmers from people who enter their facilities fraudulently,” he said. Iowa farmers have felt under attack since activists distributed a series of videos that they claimed showed the mistreatment of animals, from pigs being beaten to chicks being ground up alive. The state typically has more than 19 million hogs and 54 million egg-laying chickens in barns and confinement buildings. Sen. Joe Seng, a Davenport Democrat and veterinarian who sponsored the bill, said the measure strikes a balance by discouraging animal activists from sneaking into livestock facilities but not prohibiting someone who legitimately works there from reporting animal abuse. The bill that passed was changed from an earlier version due to concerns that language making undercover video recording illegal could violate free speech protections in the U.S. Constitution. Craig Hill, president of the Iowa Farm Bureau Federation, has said he hopes Iowa’s action can lead the way for other states to pass similar legislation. The Utah House has approved a bill that would make it a misdemeanor to film on private agricultural property without the owner’s consent, and the measure is now awaiting debate in the Senate.

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Texas Rice Farmers Face Water Shortage

March 2, 2012

AUSTIN, Texas (AP) — A Central Texas river authority said Friday that Hill Country lakes fell short of levels sufficient to provide irrigation water to downriver rice farmers. That makes 2012 the first year in which the farmers will not get the water from the Lower Colorado River Authority. As of Friday morning, lakes Travis and Buchanan were about 3,200 acre-feet, or more than 1 billion gallons, short of the level they’d need to reach for the farmers to receive water. LCRA spokeswoman Clara Tuma had said Thursday that the authority did not expect to reach the 850,000 acre-feet lake levels needed to provide water to the farmers. Rice farmers have been preparing for such a situation for months. They’ve known the worst 1-year drought in Texas history had so severely depleted the Highland Lakes it was unlikely it could rain enough for them to plant their crops. Texas is one of the six largest rice producers in the country. The farmers in the Colorado River basin make up almost three-quarters of the state’s total rice acreage. At current lake levels, a small percentage of farmers, those with senior water rights along the river, will get about 20,000 acre-feet of water. The rest will not get any. The drought has eased in recent weeks with some significant winter rains. But most of the state still remains under some level of drought.

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Will Utah Law Destroy Agriculture Industry Transparency?

February 27, 2012

SALT LAKE CITY (AP) — Filming on farms, ranches and dairies could be prohibited in Utah by a bill moving to the Senate this week, despite concerns that animal abuse will go unreported. The prohibition is needed because “national propaganda groups” are hiding cameras on agricultural property and using the footage as part of their larger agenda of shutting down the operations, said Rep. John Mathis, R-Vernal, the sponsor of House Bill 187. The bill, which passed the House 60-14 Friday, would make it a misdemeanor to film on private agricultural property without the owner’s consent. Allowing the groups to continue to film on private property is “akin to a neighborhood watch group that goes into your home and hides cameras because you may one day do something to your kids,” Mathis said. Multiple animal rights groups have launched national campaigns against the bill, which they said will penalize people who uncover animal abuse. Among those groups is People for the Ethical Treatment of Animals, which has sent a letter from actress Cloris Leachman to lawmakers. “Citizens’ right to document cruelty to animals_wherever it occurs_is crucial in helping local, state, and federal officials enforce anti-cruelty laws,” Leachman wrote in her letter. The bill will protect businesses to the detriment of animals, said Suzanne McMillan, director of farm animal welfare for The American Society for the Prevention of Cruelty to Animals. “Bills like this only serve to heighten suspicion that the agricultural industry has something to hide,” McMillan said. “Americans deserve to know how their food is produced, and responsible farmers should welcome that transparency.” The proposed law is also overly broad and could limit the ability of whistleblowers to document illegal actions, said Rep. Brian King, D-Salt Lake City. Last year, similar bills failed in Iowa, Florida, New York and Minnesota. The involvement of national groups will likely hold little sway over Utah lawmakers, however. Rep. Mike Noel, R-Kanab, who is a cattle rancher, said opponents of the bill want to control agriculture but have no understanding of how hard farmers and ranchers actually work. “Nobody wants to go slop around in cow manure in the middle of the night or at six in the morning, and they certainly don’t want some jackwagon coming in and taking a picture of them,” Noel said.

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Lucy Lawless Arrested In Oil-Drilling Ship Protest

February 27, 2012

WELLINGTON, New Zealand — Police on Monday arrested actress Lucy Lawless and five Greenpeace environmental activists after the group spent four days protesting aboard an oil-drilling ship docked in New Zealand. Police removed the group from their perch atop a 174-foot (53-meter) drilling tower on the Noble Discoverer in Port Taranaki. Lawless and six activists climbed the tower early Friday in an attempt to raise awareness about oil drilling in the Arctic and prevent the ship from leaving. One of the activists left the tower Saturday and was initially charged with unlawfully boarding a ship. All seven activists, including Lawless, have now been charged with burglary, a more serious charge. All have been released and are due to appear in a New Zealand court Thursday. Chartered by oil company Shell, the ship had been due to leave over the weekend for the Arctic to drill five exploratory wells. Lawless, 43, a native New Zealander, is best known for her title role in the TV series “Xena: Warrior Princess,” and more recently for starring in the Starz cable television series “Spartacus.” Lawless spoke to The Associated Press from atop the tower Friday, where she said wind gusts were making it difficult for the group to stay put. She said she felt compelled to take a stand against oil-drilling in the Arctic and against global warming. “I’ve got three kids. My sole biological reason for being on this planet is to ensure that they can flourish, and they can’t do that in a filthy, degraded environment,” she said. “We need to stand up while we still can.” In a series of tweets over the weekend, Lawless described some of the challenges of staying on the tower. “I found last night pretty darn scary,” she wrote. “Not for sissies.” In a release, Rob Jager, Chairman of Shell New Zealand, said the protest had put people in danger and he was pleased it was over. He said he remained disappointed that Greenpeace hadn’t taken up the company’s offer to engage in a “productive conversation.” Shell spokeswoman Shona Geary said she thought the ship would leave port within the next few days. Bunny McDiarmid, the chief executive of Greenpeace New Zealand, said she thought the protest had gone “brilliantly” and that more than 100,000 people had sent messages to Shell to oppose the company’s Arctic plans.

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WATCH: Oil Man’s Son Fights Pipeline And ‘Decline Of A Civilization’

February 23, 2012

Lee Brain may claim to be “no one in particular,” but after a speech delivered last weekend to a pipeline review panel, many identify him as the oil man’s son who “does not see eye to eye” with his father. Brain delivered his stirring speech in Prince Rupert on February 18 to Canada’s Northern Gateway Pipeline Joint Review Panel. As the Vancouver Observer highlighted , it was “the most moving moment” of the hearings. The proposal to run a pipeline from Bruderheim, Alberta to Kitimat, British Columbia has been fought by many environmental and aboriginal groups. According to their website , the government-mandated Joint Review Panel is working to “assess the environmental effects of the proposed project and review the application under both the Canadian Environmental Assessment Act and the National Energy Board Act.” Growing up in Prince Rupert as the son of an EPCM contractor, 26-year-old Brain is an unlikely pipeline opponent. A few years ago, his father sent him off to experience the oil industry first-hand. His month-long experience on one of the world’s largest oil refineries in rural India gave him serious doubts about the future of the oil industry. “It’s time for us to dismantle the institutions that are beginning to imprison us,” he said. Brain told the panel he witnessed villages that had slowly become impoverished — he believes this occurred after a refinery project arrived carrying a slew of troubles, from a pipeline break to cheap labor issues. Brain said that his experiences left him believing that “those who work in industry can get excited about growth and yet subsequently, can turn their eyes off towards any adverse impacts they are creating as a result.” Looking to the future, he suggested moving away from fossil fuels, and focusing on a new energy economy. Although Brain was interrupted for presenting an argument over oral evidence of his personal experience, his speech was met with loud applause and a standing ovation, according to the YouTube description . Brain concluded his speech by asking whether people will choose to embrace a new way of life or “a predictable path that leads to the slow, inevitable decline of a civilization.” The Enbridge Northern Gateway Project Joint Review Panel describes the panel’s mission on its website, stating they are “an independent body, mandated by the Minister of the Environment and the National Energy Board. The Panel will assess the environmental effects of the proposed project and review the application under both the Canadian Environmental Assessment Act and the National Energy Board Act.” According to Reuters, many groups that oppose Keystone XL are also against Northern Gateway : They say the route of the pipeline is too dangerous, owing to seismic activity, frequent landslides and other natural hazards that could lead to oil spills. They also say the chemical makeup of the diluted bitumen that would flow through the pipeline is more corrosive than conventional oil, a contention that has not been proven by independent study. Enbridge claims their pipeline follows a safe route and uses new technologies which will cut down on rupture risks.

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Fixing A ‘Gaping Hole’ In Fracking

February 22, 2012

PITTSBURGH (AP) — A nonprofit group has opened an office in western Pennsylvania to help the public with health concerns over Marcellus Shale gas drilling operations. The Southwest Pennsylvania Environmental Health Project opened an office last week in McMurray, southwest of Pittsburgh, and says its mission is to support people “who believe their health has been, or could be, impacted by natural gas drilling activities.” “The state lacks enough resources to really address this,” Director Raina Rippel said Tuesday. “There is this gaping hole for the community.” Rippel said the project has several paid staff members, including a nurse. Other medical and research experts are consultants. The onsite nurse will make house calls in Washington County, but phone calls or emails from other parts of the state are welcome, Rippel said. The nurse will provide referrals, help clients navigate the health care system and consult with environmental health specialists. All the project services are free, she said. Rippel said her group has met with local public health officials, and will work with them. The group also is setting up a network of physicians to refer people to, and has been in contact with the U.S. Environmental Protection Agency. Timothy Kimmel, director of the Washington County Department of Human Services, was out of the office Tuesday afternoon and could not immediately be reached. The Marcellus Shale Coalition, an industry group, said it supports a thorough, unbiased health assessment. “We live, work and raise our families in these communities, and are absolutely committed to ensuring that our air, water and public health are protected,” coalition President Kathryn Klaber told the Pittsburgh Post-Gazette. “There is no higher priority, and to the extent this initiative can advance objective, fact-based research, we welcome it.” Rippel acknowledged that some people who worry about gas drilling could have been exposed to pollutants from another industry or have medical conditions that originated before the drilling boom of the last five years. Old coal mines and oil wells have been identified as possible sources of methane gas in drinking water wells. “You don’t necessarily have clear data,” she said, of possible links between recent gas drilling and health problems. But she said the only way to better understand these issues is through outreach and research. Dr. Helen Podgainy, a pediatrician who has treated children from Washington County, said more studies need to be done on the health risks for those living near gas wells. “It’s difficult for those in the medical community to know what we should be on the lookout for, and how to address problems that we might see,” Podgainy told the Post-Gazette. “I do not want my patients to become ‘the canaries in the coal mine.’ A proactive approach is to everyone’s benefit.” The Health Project office is open Tuesday through Friday. It is funded by the Heinz Endowments, the Pittsburgh Foundation and the Claneil Foundation. ___ Online: http://www.environmentalhealthproject.org

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Can Vermont Meet Its Ambitious Renewable Energy Goals?

February 22, 2012

MONTPELIER, Vt. (AP) — Two key state lawmakers said Tuesday that Vermont won’t meet its goal of getting 20 percent of its electricity from renewable sources by 2017, and they’re withdrawing their support for setting a new goal of 30 percent renewable power by 2025. Reps. Tony Klein and Margaret Cheney, the chairman and vice chairwoman of the House Natural Resources and Energy Committee, also said legislation passed three years ago to offer premium prices to renewable energy project developers had fallen far short of its goal of bringing 50 megawatts of new renewable power onto the Vermont electric grid. Cheney said just 7.1 megawatts worth of such projects had been built. The two Democrats said they were surprised to learn recently from the state Department of Public Service, which regulates utilities, that the state likely would fall short of its 2017 goal. Of backing away from the more ambitious 2025 goal, Cheney said, “We don’t want to put out a percentage because it sounds good and not be able to meet it.” “You have to balance ambition and what’s doable,” Klein said. Citing a DPS report, the lawmakers said renewable energy projects already operating and in the pipeline currently add up to 16.5 percent of Vermont’s retail electric sales. Five years is not long enough to plan and build enough new projects to reach the 20 percent goal, they said. And development is expected to slow in part because two key federal incentives for renewable power development are expiring. The energy committee has been working since early January on legislation that had set the new 2025 goal. Klein said he was putting that bill aside to work on legislation to move the state toward mandatory recycling of solid waste. He said he had asked DPS officials to appear before the committee next week to make a new proposal regarding renewable energy. Klein and Cheney said they had been hearing a groundswell of concern voiced by business lobbyists that getting more power from renewable sources, which are usually more expensive than electricity generated with nuclear or fossil-fuel-fired power, would drive up electric rates and make Vermont less competitive economically. Scaling back the drive for renewable power is a big change for a Legislature and administration that have been pushing to close the Vermont Yankee nuclear plant and had touted wind, solar, biomass and other renewable energy sources as keys to fighting climate change tied to burning fossil fuels. A long-term energy plan issued by Gov. Peter Shumlin’s administration in the fall calls for Vermont to get 90 percent of its energy — for electricity, transportation and space heating — from renewable sources by 2050. Elizabeth Miller, commissioner of the Department of Public Service and Shumlin’s point person on energy issues, agreed there is doubt about the state meeting its 2017 renewable power goal. If all projects now in the planning stages are built — and that’s uncertain — Vermont would be getting about 18 percent of its power from renewable sources by 2017, she said. Renewable energy advocates said they would continue to push for a more ambitious agenda. Gabrielle Stebbins, executive director of the industry group Renewable Energy Vermont, rebutted business concerns about harm to Vermont’s economy by saying her industry had the potential to add many jobs in the state. Ben Walsh, energy advocate with the Vermont Public Interest Research Group, said his group would push Shumlin and lawmakers to keep campaign promises about supporting renewable energy. “We live in a state where people elected an administration and legislature that … said they were going to build a future of clean energy for Vermonters,” Walsh said. “We’re still very hopeful that’s what will happen in the end.”

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Companies Allegedly Return To Testing Makeup On Animals

February 20, 2012

From MNN blogger Starre Vartan: Seems like 2012 is already the year of repeats; debates long-considered settled are rearing their contentious heads once again. From birth control making headlines, to the prevalence of fur at fashion week, its seems like it’s the Revenge of the Past coming back to haunt us. And so it is with animal testing, which for many of us who love both animals and makeup, is another issue that’s come full circle. Turns out all that the time spent in the late ’80s and ’90s signing petitions was just a stay of execution for the nefarious practice of testing “beauty” products on defenseless animals (like the bunnies above; rabbits are used for testing because they are such docile creatures). While I always hear people disparaging the group, People for the Ethical Treatment of Animals ( PETA ) is once again on the front lines , making sure that we all know this is happening. (I would argue that PETA and Greenpeace have done more for animals in the past 20 years than all the other animal-advocacy groups put together, but that’s fodder for another post.) But like any old story with a modern twist, this one involves China. Turns out that currently, the Chinese government requires animal testing for beauty products sold in China, and PETA reports that while Mary Kay has been trying to work with the government to come up with new testing solutions for cosmetics that don’t involve animals, Estee Lauder and Avon have gone along with the government requirements without complaint. Since the companies are all currently doing animal testing, none of these companies’ products can bear the “cruelty free” designation (indicated by the leaping bunny logo) , and have been removed — after long standing — from PETA’s “Don’t Test on Animals” list to the “Do Test” list . What to do? (Besides pull your hair out in frustration and swear a lot? No, please don’t.) Of course it’s always a good idea to let your thoughts be known to companies — so all that consumer energy can push them to do the right thing. Sometimes employees want to make changes from within an organization but are stymied by upper management, and they need consumers to help them. If you are a vegetarian or vegan, you’ll probably have to stop buying these companies’ products. (Buying beauty and personal care products from small, all-natural, health-conscious brands is a great way to “protest” too — while smelling better than ever. This is my choice!) But in terms of actually correcting this problem, the solution lies in training Chinese scientists and getting them up to date with non-animal safety testing. Turns out PETA’s on that, too. From a PETA news release: “PETA is financially supporting the efforts of the Institute for In Vitro Sciences (IIVS), which is putting together a coalition of corporate experts, providing training for scientists in China in the use of non-animal test methods, and working with officials there to promote the acceptance of non-animal methods that are used in the U.S., the European Union, and much of the world.” What do you think is the best form of protest to help animals? Signing petitions, boycotting products, gabbing about issues in social media, or buying from ethical companies instead?

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Dozens Pack Hearing On Wisconsin Mining Bill

February 17, 2012

MADISON, Wis. (AP) — Opponents of a proposed iron mine in northwestern Wisconsin seized what might be their last official chance to sound off on a contentious bill to jumpstart the project Friday, jamming a public hearing on the measure before the Legislature’s powerful budget committee. Tensions were high. Legislative aides roped off seating sections to keep the crowd away from committee members’ dais and police ringed the room. Spectators held up signs that read, “stop plundering Wisconsin,” ”stop the mine” and “AB 426 Sux,” a reference to the bill’s number. The measure’s authors, Rep. Tom Tiffany, R-Hazelhurst, and Sen. Pam Galloway, R-Wausau, plunged ahead undaunted, telling committee members the mine would provide an economic boom for the entire state. “What you have in front of you is a 21st century mining bill,” Tiffany said. “It honors Wisconsin’s high environmental standards.” The crowd snickered. A Florida company called Gogebic Taconite wants to dig a huge open-pit mine in the Penokee Hills just south of Lake Superior. Company officials have promised the project will create hundreds of jobs for economically depressed northern Wisconsin but they’ve put their plans on hold until lawmakers can guarantee a stopping point in the state’s open-ended mining permits. Eager to deliver on job creation campaign promises, Republicans have been working for most of the last year to develop legislation for Gogebic Taconite. In the meantime, conservationists have rallied against the project, warning it would pollute one of the most beautiful natural areas in the state. Now lawmakers and environmentalists are locked in one of the most intense debates over how to balance business and the environment that Wisconsin has seen in years. Assembly Republicans passed a bill in January that would require a permitting decision within a year, eliminate contested case hearings and cap application fees at $2 million. The measure is now in the state Senate, but its chances there look murky. Republicans hold a 17-16 Senate majority but Sen. Dale Schultz, a moderate Republican from Richland Center, has said he can’t support the measure. Senate Majority Leader Scott Fitzgerald, R-Juneau, has forwarded the bill to the budget committee anyway. Time is running out for lawmakers; the legislative session ends next month and Gogebic Taconite President Bill Williams has hinted that the company might pull up stakes if permit changes don’t solidify by then. The panel’s co-chairman, Rep. Robin Vos, R-Burlington, said he would allow uninvited speakers to talk for two minutes, saying he planned to end the hearing at 5 p.m. Democrats on the committee complained that the panel should listen until everyone has had a chance to speak. At a news conference before the hearing Sen. Bob Jauch, D-Poplar, a committee member whose district would include the mine, accused Vos of treating the public like pawns. Republicans have already held two public hearings on the bill, one in Milwaukee and one in Hurley, near the mine site.

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West Virginia Mine Safety Bill Aims To Respond To Coal Mine Disaster

February 17, 2012

CHARLESTON, W.Va. (AP) — West Virginia would require random drug testing of all coal mine employees, and not just certified miners, after the House Judiciary Committee amended and endorsed Gov. Earl Ray Tomblin’s mine safety legislation on Thursday. Other changes included: Increasing the maximum civil fine for a safety violation from $3,000 to $5,000, and doubling the potential jail time to one year. Another provision would make violating safety standards a felony that carries a prison term of up to five years. Affected miners or their survivors would be allowed to attend interviews and hearings when a mine accident is investigated. Many of Thursday’s changes borrow from a mine safety bill introduced earlier this session by Speaker Rick Thompson, D-Wayne, and other House members. The committee otherwise kept Tomblin’s various provisions aimed at increasing mine safety. Both bills seek to respond to Upper Big Branch, the worst U.S. coal mining disaster in four decades. Several investigative reports have concluded that the Raleigh County mine’s then-owners allowed a build-up of highly explosive methane gas and coal dust. Worn coal-cutting machines ignited the blast, and broken and neglected water sprayers proved ineffective, investigators say. The 2010 disaster killed 29 miners. The governor’s provisions would require methane gas detectors on mining machines, and embrace a tougher standard for diluting coal dust with crushed rocks. The provisions also would increase state oversight of plans meant to ventilate mines, and require more routine training for masks that help miners breathe during emergencies. The legislation would aim to bolster an anonymous whistleblower hotline, and make it a state crime to announce when inspectors enter a mine. Such alerts are already illegal under federal law, and investigators believe they were routine at Upper Big Branch. As amended, the bill would also require mining machines to shut down and cut off power when nearby methane reaches a dangerous level. Another Thursday change would require mine superintendents to sign off on the mine’s log book entries. The legislation advances to the full House of Delegates. West Virginia’s Office of Miners’ Health, Safety and Training is scheduled to release their report on Upper Big Branch next week, the final expected findings from the disaster. Earlier reports came from the U.S. Mine Safety and Health Administration, the United Mine Workers Union, and special investigator J. Davitt McAteer. Each blamed then-owner Massey Energy for creating the conditions that led to the explosion, and also faulted the since-acquired company’s attitude toward safety laws and regulators. MSHA and its state counterpart were criticized as well.

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Tonics Company Blasted For Gruesome Bear Bile Extraction Methods

February 17, 2012

SHANGHAI (AP) — A storm of criticism in China over share listing plans by a company that sells tonics made with bear bile is highlighting the increasingly affluent country’s changing attitudes toward the environment and wildlife. Reports Friday said dozens of well-known entertainers, writers and other celebrities signed a petition to the China Securities Regulatory Commission urging it to withhold approval for the initial public offering by Guizhentang, a Chinese medicines maker. The company is awaiting approval for a share listing in Shenzhen. Hundreds of thousands of comments on “weibo,” the Chinese version of Twitter, blasted the company for extracting bile from bears. Animal rights groups contend the practice of bear bile farming is cruel because the animals are confined to small cages and milked of bile through catheters inserted into fistulas, or permanent wounds, in their gall bladders. They say that antibiotics used to counter chronic infections from the practice, and other contaminants in the bile, also pose a hazard to human health. A photo on the front page of the state-run newspaper China Business News on Friday showed a satirical photo montage of a caged bear, its muzzle bloodied, with a picture of the head of the China Association of Traditional Chinese Medicines, Fang Shuting, quoted as saying that bears are “very comfortable” while the bile is extracted. News reports cited Fang as saying China has 68 licensed bear farms and more than 10,000 bears farmed for their bile, which can cost up to 4,000 yuan ($635) a kilogram. A spokesman for Guizhentang, who gave his surname as “Xu,” refused comment. “It is not the right time for an interview now. We will let you know when we want to do an interview,” Xu said. Officials at the CSRC said they could not comment on an IPO plan under consideration. Animal rights are gaining increasing attention in China, with public figures like basketball star Yao Ming and actor Jackie Chan speaking out against eating shark fins and other customs that many view as cruel or a threat to endangered species. The change reflects both a growing awareness of the need to protect the environment and wildlife and also increasing affluence among many ordinary Chinese who now keep pets, travel overseas and have changing attitudes toward traditions they may not have questioned in the past. In recent years, for example, animal protection groups have staged mass releases of cats and dogs caged for shipment to restaurants and markets, where they are slaughtered for dishes considered to be delicacies or especially nourishing. The petition to the stock watchdog from more than 70 celebrities and environmental protection groups seeks to block the IPO and urges the use of synthetic substitutes for bear bile, which is a digestive substance made in the liver and stored in the gall bladder. The main active ingredient in the bile is ursodeoxycholic acid, or UDCA, which is thought to act as an anti-inflammatory and is used to treat gall stones and liver ailments. It is mainly taken from the Asiatic Black Bear, a protected but not endangered species in China. Chinese media reports cited Fang as defending Guizhentang’s bile collecting practices in a news conference in Beijing, after visiting its facilities in southeast China’s Fujian province. “Collecting bile is like turning on a tap. It’s painless, natural and simple. I didn’t see bears suffering in the process,” Caijing magazine quoted Fang as saying. “After the bile is extracted, bears can still drink milk and honey and have fun in the farm.” Fang argued that bear farms helped to protect wild bears by discouraging poaching, and that China must preserve its unique, ancient medicinal practices. Animal rights groups contend that poaching continues because buyers view wild bear bile as more potent. Farmed bears live about four or five years, while those in the wild live up to 30, according to the Animals Asia Foundation, which has been working to close down bear farms and rescue the animals. ___ Researchers Zhao Liang in Beijing and Fu Ting in Shanghai contributed to this report.

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Fishermen Meet Amid Potentially Disastrous Cod Prospects

February 11, 2012

PORTSMOUTH, N.H. (AP) — Fishermen and federal officials grappled Friday with the increasingly bleak prospect of finding some way for the historic New England industry to avoid collapse amid troubles with the health of Gulf of Maine cod. Their meeting came in the week after regional regulators bought fisherman a yearlong reprieve from what would have been devastating cuts in 2012. But projections discussed Friday showed fishermen still face disastrous cuts in 2013 that most won’t survive. “It’s going to be hard to preserve the industry at those low numbers (in 2013) and that’s something that concerns us a great deal,” said Sam Rauch, the head of the National Oceanic and Atmospheric Administration’s fisheries arm, who led the meeting of fishermen, scientists and regulators. “This truly is one of the iconic fisheries,” he said in an interview after the meeting. “When you think of what the U.S. fisherman is, it’s an inshore Gulf of Maine cod fisherman. That’s why we are so devoted to working through this process to try to overturn every possibility we can. But the future, 2013, does not look rosy.” The cod in the Gulf of Maine has been crucial to New England fishermen from Cape Cod to Maine for hundreds of years, and four years ago, after a major assessment, it was thought to be one of the region’s strongest species. It brought in $15.8 million in 2010, second highest amount behind Georges Bank haddock among the region’s 20 regulated bottom-dwelling groundfish. But data released last year indicated the fish was so severely overfished that even if all fishing on it ended immediately, it wouldn’t rebound by 2014 to levels required under federal law. As a result, fishermen were looking at an 82 percent cut in what they were allowed to catch in 2011, a catastrophic reduction that would have wiped out fishermen around the region — not just those who rely on cod. That’s because major restrictions on cod severely limit fishing on the other key groundfish species, such as flounder and haddock, in order to protect the cod they swim among. Last week, regional regulators at the New England Fishery Management Council asked NOAA to adopt a one-year emergency rule that would enable regulators to avoid the massive cut. And they recommended allowing fishermen to catch either 6,700 metric tons or 7,500 metric tons of Gulf of Maine cod in 2012. On Friday, Rauch signaled that NOAA would allow the 6,700 catch limit in the 2012 fishing year, which starts in May. That would mean a tough 22 percent cut from what they were allowed to catch in 2011, though not nearly as deep a reduction as first feared. The problem, according to new projections discussed Friday, is that after the emergency rule expires in 2013, fishermen are again looking at a cut in cod catch just as severe as the huge reduction they were originally facing. From the first indications of cod trouble, fishermen and their advocates have questioned the science behind the new data and Friday was no exception. “We don’t trust your data,” New Hampshire charter boat fisherman Bill Wagner told regulators. “We don’t believe there’s a shortage of codfish. We don’t believe there’s a crisis in codfish.” Massachusetts Rep. Ann-Margaret Ferrante, who represents the port of Gloucester, criticized what she characterized as the constant, massive swings in scientific assessments on the size of fish populations. “We’re always in the same dilemma and I don’t understand why,” she said. Gloucester fisherman Al Cottone said the new assessment has put the fishing industry “on death row.” “The anxiety the industry feels is unprecedented,” he said With so much doubt about the science behind the new data, Cottone said, regulators should give fishermen as much fish to catch as possible while they try to remove uncertainties in the numbers. “To basically flip the switch on the industry with so much reasonable doubt would be irresponsible,” he said. Rauch said the verifying and improving the science is a top priority, and no one can predict if the new work can find something in the next year that significantly improves the assessment of cod health. “It’s always possible we’ll find something there, but even if we don’t, this year allows us time to better plan … for where this industry may end up,” Rauch said. “Fishermen are resilient, they figure out ways to adapt. But this will be hard to adapt to.”

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BP Wins Ruling To Keep Old Accidents Out Of Gulf Spill Trial

February 10, 2012

* Evidence of Texas, Alaska incidents excluded * Judge: Older cases too dissimilar from Gulf spill * Feb. 27 trial expected By Jonathan Stempel Feb 9 (Reuters) – BP Plc won a court order to keep references to some previous accidents out of this month’s trial to assess blame for the 2010 Gulf of Mexico oil spill, the oil company’s second victory in as many days to bar potentially damaging evidence. Thursday’s ruling by U.S. District Judge Carl Barbier in New Orleans followed a ruling Wednesday by U.S. Magistrate Judge Sally Shushan to keep out some emails questioning some of BP’s activities before and after the spill. Barbier blocked the introduction of evidence related to two accidents involving BP facilities: a 2005 explosion at a Texas City, Texas refinery that killed 15 people, and a 2006 rupture of a corroded pipeline at Prudhoe Bay, Alaska. In the Texas case, BP pleaded guilty to violating the Clean Water Act and accepted a $50 million fine. BP pleaded guilty to a criminal Clean Water Act violation and was fined $20 million in the Alaska case. Barbier, however, ruled that the prior incidents were “not sufficiently similar” to the April 20, 2010 explosion of the Deepwater Horizon drilling rig and blowout of the Macondo oil well, which BP mainly owned. “The prior incidents were all land-based, while the Macondo incident occurred in the Gulf of Mexico,” Barbier wrote. “Additionally, the circumstances of oil refinery disasters and (an) exploratory drilling disaster are vastly different.” James Roy, a lawyer for some of the plaintiffs, who include people and businesses harmed by the accident, did not immediately respond to a request for comment. BP was also fined a record $87 million by the federal Occupational Safety and Health Administration for safety problems at the Texas refinery. Barbier is scheduled on Feb. 27 to preside over a non-jury trial to assign blame for the Deepwater Horizon accident, which killed 11 people and caused the largest offshore oil spill in U.S. history. Other corporate defendants include rig owner Transocean Ltd and Halliburton Co, which provided cementing services for the well. Plaintiffs also include the U.S. government, Alabama, Louisiana and Mississippi. BP has set aside roughly $42 billion for spill costs. Chief Executive Bob Dudley this week said the London-based company is preparing for trial, but willing to settle on reasonable terms. The case is In re: Oil Spill by the Oil Rig “Deepwater Horizon” in the Gulf of Mexico, on April 20, 2010, U.S. District Court, Eastern District of Louisiana, No. 10-md-02179.

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The Greenest Car Of 2012 Is…

February 9, 2012

From Mother Nature Networks’ Melissa Hincha-Ownby: The American Council for an Energy-Efficient Economy (ACEEE) has published its 14th annual Greenest Cars List and for the first time an electric vehicle takes the number one spot. The new Mitsubishi i-MIEV bested the Honda Civic Natural Gas , which held the number one spot for eight straight years. A variety of environmental criteria are assessed when evaluating a vehicle’s green score, including the emissions created by the power plant used to provide electricity to the i-MIEV and other electric vehicles . The changing face of the eco-friendly automotive scene actually led to a few changes in the ACEEE’s methodology this year. “This year, a number of updates were made to the Green Book® methodology to more accurately estimate vehicles’ environmental impacts. These include improved emissions estimates for the vehicle manufacturing process, changes reflecting current natural gas extraction practices, and consideration of upcoming shifts in the generation mix for the electricity used to power electric cars.” Source: ACEEE One very prominent electrified vehicle is missing from this list, the Chevy Volt . According to CNNMoney.com , “That’s because the ACEEE uses vehicle weight as a criterion for scoring, under the assumption that a heavier vehicle causes more waste in production.” Unfortunately for General Motors, the Chevy Volt was their best chance for inclusion on the list. Instead, the Greenest Cars of 2012 list is dominated by Japanese imports. General Motors and other Detroit-based automakers are receiving unfavorable recognition on the Greenest List’s companion, the Meanest Vehicles for the Environment in 2012 . Both the Chevrolet G3500 Express Cargo van and its GMC cousin, the G3500 Savana tied with the Ford E-350 Wagon for the Meanest Vehicle of 2012 with a Green Score of 17. For those that cry foul, there are electric cargo vans on the market that are a viable alternative to these gas-hogging beasts. The 2012 Greenest List and each vehicle’s corresponding Green Score follows:

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Federal Official: ‘We’ve Got To Stay Focused On Mine Safety’

February 6, 2012

CHARLESTON, W.Va. (AP) — If there’s one lasting cultural change Mine Safety and Health Administration Director Joe Main wants to make in both the federal agency and the industry it regulates, it’s ending the cycle of intensity and complacency. After every high-profile disaster, regulators step up their enforcement and most coal operators take a second look at safety. Then, over time, both grow complacent. Until the next disaster. “You look away for a second, you let your guard down for a second, and bad things can happen here,” Main said in an interview with The Associated Press. “We’ve got to stay focused on mine safety. It has to be the priority every minute of every day, and we have to be out there with a find and fix mentality — find it and fix it before it hurts somebody.” When the Sago Mine exploded near Buckhannon, W.Va., in 2006, trapping and killing 12 men, MSHA had a different leader and a shortage of inspectors. It’s since hired and trained hundreds, and it was about to begin retraining them when Massey Energy’s Upper Big Branch mine exploded near Montcoal in 2010, killing 29 men. “You can’t go through these phases where enforcement intensifies and then slacks off. You pay for those things,” Main said. “These past events have happened when there’s been a slacking off, and it takes time to reset the stage.” Though MSHA has been criticized for its handling of Upper Big Branch before the blast, Main insists inspectors used the tools they had and were trying to correct problems. In the year before the blast, MSHA issued more violation orders there than at any other U.S. mine. It shut the mine down 48 times but had to let it reopen when problems were fixed. Main said his agency has made many changes since then, including creating an impact inspection system for mines with a history of violations, and he plans to make more once an audit of MSHA’s performance at Upper Big Branch is completed. He’s also hoping for tougher tools from the three mine-safety bills pending in Congress. MSHA helped craft the one proposed by Rep. George Miller, ranking Democrat on the House Education and Workforce Committee. Whatever version ultimately passes, Main wants it to address critical issues such as: giving workers a voice and protecting them when they use it; giving MSHA federal subpoena power in investigations rather than forcing it to rely on state laws; and holding people accountable for criminal conduct. “I do not believe in treating people who are not criminals like criminals,” Main said. “But I do believe that people that engage in that kind of activity need to be dealt with accordingly. And we have to have a law in place that contains that kind of respect.” Ultimately, keeping a mine safe is the operator’s responsibility, and Main said he’s disappointed by those who didn’t get the wakeup call from Upper Big Branch, the nation’s worst coal mining disaster in four decades. “It’s like people passing a wreck on the highway: Just how does that impact folks? And this should have impacted folks bigger,” he said. Even shortly after the tragedy, his inspectors found mines with so much explosive coal dust hanging in the air that they could barely see the cutting machines. “It goes to show we have a serious problem here,” he said. Preliminary data for 2011 show signs of at least short-term improvements: The total number of mining citations and orders were down, and there was progress at 14 mines notified in 2010 that they might be designated potential pattern violators. Main said his agency is also in the process of rewriting the inspectors’ handbook, consolidating and clarifying policies that may be confusing or contradictory “to say exactly what we mean.” That, he said, should help them do their jobs better and make enforcement efforts more consistent.

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GOP Lawmakers Seek Vote On PA Natural Gas Drilling Bill

February 5, 2012

HARRISBURG, Pa. (AP) — A final framework is at hand on sweeping legislation to impose an impact fee and update safety regulations on Pennsylvania’s booming natural gas industry, top Republican state lawmakers say. Republicans notified rank-and-file lawmakers Saturday night that they hope to hold votes this week on a framework reached by negotiators from the House, Senate and Gov. Tom Corbett’s office during closed-door negotiations over the past six weeks. Pennsylvania is the only major gas-producing state that doesn’t tax natural gas production. “These discussions have progressed rapidly over the course of the last two weeks,” House Speaker Sam Smith and House Majority Leader Mike Turzai said in a letter to lawmakers. “In fact, staff have been working throughout the weekend and will be working tomorrow in order to have a proposal that we can consider as early as this week.” According to summaries of the framework distributed to lawmakers, the impact fee would rise and fall with the price of natural gas and inflation. Counties that host the drilling would have the option of whether to impose the fee, but a critical mass of municipalities could override a refusal. Details of the exact fee were not included in the summaries. The bill would increase the required distance between drilling and public water sources such as reservoirs, but not to the extent sought by Democrats, and it would require the state to develop regulations for transporting drilling wastewater and enforce qualifications of treatment plant operators. Money from the impact fee and state forest drilling royalties would be distributed to a wide range of purposes, including bridge repairs, water and sewer plant improvements, statewide environmental cleanup programs and purchases of natural-gas fleet vehicles. Local governments would get 60 percent of the money from an impact fee, with 40 percent going to state programs or agencies. It also would address a top priority of the natural gas industry and set limits to prevent municipal officials from imposing zoning ordinances that effectively prevent drilling there. A drilling operator could ask state utility regulators to review a local ordinance to determine whether it allows for “the reasonable development of oil and gas.” If the Public Utility Commission or a state court decides that a local ordinance fails, the municipality would be unable to receive impact-fee money until it changes it. Pennsylvania lawmakers have talked about whether to tax the natural gas industry since it arrived in earnest in 2008 to tap into the Marcellus Shale natural gas formation, considered the nation’s largest-known natural gas reservoir. The drilling has drawn opponents who fear it is polluting the water supply. The Marcellus Shale lies primarily beneath Pennsylvania, New York, West Virginia and Ohio. Pennsylvania is the center of activity, with more than 3,000 wells drilled in the past three years and thousands more planned as shale emerges as an affordable, plentiful and profitable source of natural gas.

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Should Utilities Be Cheering For Clean Air Rules?

February 5, 2012

NEW YORK — Instead of complaining about clean air rules, maybe utilities should cheer them. Sometimes, the rules lead to big gains. First Energy, a utility based in Ohio, got such a boost Thursday, a week after the company announced it would close six coal-fired plants, blaming new federal rules aimed at slowing emissions of mercury and other toxins. Without these plants, electricity prices in parts of Ohio dominated by First Energy are expected to nearly double at a power auction scheduled for May. The reason: There will now be a smaller fleet of power plants available to meet potential power needs. This smaller supply means the price to coax companies like First Energy to make their plants available will rise. Julien Dumoulin-Smith, an analyst at UBS, predicted rates would rise from $126 for every megawatt available per day to $200. For the 8,000 megawatts of power plant capacity owned by First Energy in the region, that would be an extra $216 million for the year covered by the auction. Jonathan Arnold, an analyst at Deutsche Bank, said there’s a chance prices could approach $500, which would be an enormous windfall for First Energy. First Energy shares rose 3.3 percent Thursday on a day in which the Dow Jones Industrial Average fell slightly. Electric utilities have complained about a raft of new and tightening environmental standards. They argue that the rules are too stringent and that utilities are not being allowed enough time to prepare for them The rules address several environmental issues: Emissions of toxins harmful to human health, pollutants that lead to smog and acid rain, the amount of water used to cool plants and disposal of power plant waste products. Utilities argue that the cost of complying with the rules is too high, that electric power supplies could be constrained in certain regions and that electricity bills will rise. What they don’t generally say, however, is that the rules can lead to higher earnings in some cases. Electric utilities are regulated differently in every state, so the way utilities can benefit differs too. Here’s how: _ In states where power prices are set by market forces, fewer plants means lower electricity supply, and higher prices. Companies that have plants that comply with the new rules stand to benefit from higher prices. First Energy has nuclear and modernized coal plants that meet the new standards. _ In states that are regulated, utilities have to ask public utilities commissions for permission to install new equipment or build new plants. But the utilities are allowed to earn a higher return on these big-ticket investments than they are for selling power to customers. To the extent that the new environmental regulations allow regulated utilities to build new equipment, they will likely lead to higher earnings. But some companies will suffer. For example, utilities in unregulated states that have to pay for upgrades themselves and cannot benefit from higher prices won’t be able to offset the cost of the equipment. Similarly, if state regulators refuse to allow utilities in their state to pass the cost of the upgrades or new plants to customers, those companies could suffer too. The industry also argues that higher prices could also lead to lower power demand and profit. First Energy chose to close plants that likely would have been unable to operate under the new rules on toxins. These plants are generally older and inefficient, so installing emissions control equipment would have cost the company too much money. These plants were already seldom used, so by closing them the company does not stand to lose much revenue from the small amount of power they generated. But in the markets First Energy operates, plants earn money two ways: by selling power, and by making power plants available for use during peak periods, even if they are never actually needed. With the closure of four plants in Ohio, there will be less power available to meet demand. That is expected to drive prices for capacity higher. “First Energy’s nuclear plants and baseload coal plants with environmental controls are the primary beneficiaries of the EPA rules,” says Hugh Wynne, an analyst at Sanford Bernstein. Power prices have been driven lower in recent years by low natural gas prices, which in many markets set the price of electricity. Because of this, prices for capacity have become more important to company earnings. Customers in northern Ohio will pay higher prices than they otherwise would have in the coming years. The final prices they pay, however, will depend on several other factors, including the price of coal, the price of natural gas, and power demand.

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WATCH: Josh Fox On Why He Was Arrested

February 4, 2012

Documentary filmmaker Josh Fox and his crew on Wednesday walked into a congressional hearing on hydraulic fracturing, or “fracking,” a controversial natural gas drilling technique. Fox left in handcuffs, charged with unlawful entry. The meeting of the House Subcommittee on Energy and Environment was focused on the Environmental Protection Agency’s Dec. 8 draft report on links between fracking and water contamination in Pavillion, Wyo. Fox, working on the sequel to the HBO documentary ” Gasland ,” planned to attend the hearing because the EPA investigation highlights subjects from both “Gasland” and the sequel. Thus, he told HuffPost, “we were not really going to be told ‘no.’” “Since the change in Congress when Republicans took over, we have been getting a lot of flack trying to get into the public hearings,” Fox said. Fox asked to attend when the hearing was announced on Monday. By Tuesday morning, he had been refused by Republican leadership on the committee. Fox appealed to the chairman, but did not hear back before the hearing. His crew, he said, was told, “If you’re working for ‘Gasland,’ just forget it.” Any credentialed reporter working on the documentary “will have their credentials jeopardized,” he said the crew was told. Fox said he sent emails and posted his struggles to attend the hearing on Facebook . As a result, the committee’s Republican leadership “knew what was going on,” he said. “It seemed there was someone there prepared to meet us.” Fox was unable to get official filming permission, and as he set up his camera tripod in the Rayburn building room on Wednesday, Fox said he was asked to turn off his camera. He refused. “The word from the chairman comes back — ‘He can stay, but his camera has to leave.’ And I said, ‘I don’t believe that’s the law, I’m within my First Amendment rights.’” Capitol Hill police arrested and handcuffed him. While a committee has the right to prohibit cameras at a hearing, it is rare . Fox later reflected, “It was my understanding that my credentials are my American citizenship.” As the events unfolded, others began filming, Fox said. “Congressional staffers are actually coming in to watch what’s going on and they start videotaping! That’s why you have a videotape of me getting arrested — congressional staffers all had their iPhones out. And the only one being threatened with arrest is me.” The committee’s leadership directed Capitol Hill police to detain Fox and his crew. He was taken to the Capitol Hill police station. “If it weren’t for the campaign contributions going to the Republican party on behalf of the oil and gas industry, I would not have been arrested,” Fox said. The hearing resumed after the film crew departed. Jim Martin , the EPA administrator for the region that includes Wyoming, said the agency’s analysis of geologic conditions in the Pavillion gas field shows “groundwater in the aquifer contains compounds likely associated with gas production practices, including hydraulic fracturing.” Subcommittee Chairman Andy Harris (R-Md.) refuted the study, saying, “In a remarkable display of arrogance and disregard for the plain facts, the president last week proclaimed his support for expanded shale gas production, while at the same time allowing every part of his administration … to attack these practices through scientific innuendo and regulatory straight-jacketing.” During his State of the Union speech, President Barack Obama said companies should disclose the fracking fluids they use, but in nearly the same breath declared, “We have a supply of natural gas that can last America nearly 100 years. And my administration will take every possible action to safely develop this energy.” “It was a painful moment for myself and a lot of the people who are concerned with fracking,” Fox said of the president’s speech. “He’s wrong that there’s a way forward in the future.” Ultimately though, “It doesn’t really matter who the president is,” Fox said. “The people make the change … I don’t think anyone is ever going to be challenged, at least in the near future, about walking in to a congressional hearing with a camera.”

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Feds: Offshore Wind Power Will Not Cause ‘Major Environmental Damage’

February 2, 2012

BALTIMORE (AP) — Offshore wind farms from New Jersey to Virginia took a big step closer to reality with the completion of a review that showed the renewable energy source would not cause major environmental damage, officials said Thursday. Obama administration Interior Secretary Ken Salazar also said his department also was trying to speed up the process for issuing renewable energy leases. Wind projects off the coasts of Maryland, Delaware, Virginia, and New Jersey are being studied. “There are a number of developers who are very interested in developing offshore wind here and our goal is to hold the auctions and be able to issue the leases now, in 2012,” Salazar said. “So, this is not something that’s going to be waiting around.” The Mid-Atlantic lease proposal follows the Cape Wind project in Massachusetts that was given the go-ahead in 2010 after years of federal review. That project is still in development and Salazar said the department had learned from that experience. “No developer should have to wait nine or 10 years,” for approval, Salazar said. Dominion Virginia Power said that it is interested in building up to 400 wind turbines in waters about 20 miles off Virginia Beach, but the cost of the power was an issue. The 2,000 megawatts the turbines could produce would generate enough power for 500,000 households. “If everything aligns and it makes good sense and we have our regulators on board, yes, we would be moving forward on a wind farm,” senior vice president Mary Doswell told The Associated Press. The Interior Department said before the waters would be opened, the public would have a chance to comment on the projects. Maryland Gov. Martin O’Malley, who appeared at the announcement with Salazar, said his administration had contacted Defense Department officials to discuss the possibility of the military using offshore wind energy. O’Malley, a Democrat, and Salazar both described the decision as a major step forward for offshore wind, and environmentalists agreed. Environment America Clean Energy Advocate Courtney Abrams said “tapping into the power of offshore wind along the Atlantic coast is vital to getting the region and the nation off fossil fuels without creating more pollution.” Sen. Tom Carper, D-Del., said the decision “just makes sense.” “It is a reliable, clean energy resource that will reduce our dependence on fossil fuels, curb harmful air pollutants, and create good paying American jobs in manufacturing and construction,” Carper said. Jim Lanard, president of the OffShore Wind Development Coalition, said the decision means that a lengthier environmental impact assessment for offshore power along the mid-Atlantic won’t have to be conducted, although reviews for individual projects will still have to be done. Lanard said that could shave two years off the review process. Michele Siekerka, the Assistant Commissioner of Economic Growth and Green Energy in New Jersey’s Department of Environmental Protection, said Thursday’s announcement will speed the building of offshore turbines by a year or more. Eleven developers have submitted proposals totaling 12,000 megawatts and are expected to be able to bid later this year for leases. The companies will still have to do environmental studies of their own areas, but could be producing power by 2016 or 2017, she said. “The key is the federal government is not doing another one,” Siekerka said. Lanard said legislation pending in the Maryland General Assembly could do a lot to entice developers. “If there’s a revenue stream, you’ll see a great deal of interest,” Lanard said. Lawmakers killed a bill last year that would have required utilities to enter into long-term power purchase contracts and O’Malley said it wasn’t clear how a toned-down bill would fare this year. Kit Kennedy, Clean Energy Counsel at the Natural Resources Defense Council, said offshore power holds the promise of clean energy that could also provide jobs, but it would watch the process carefully to make sure the environment is protected. Dominion’s Doswell said absent tax credits, power generated by towering wind turbines costs about 28 cents per kilowatt hour, while the state’s largest electric utility’s rates are now in the range of 11 to 12 cents per kilowatt hour. “So that’s what we’re battling,” Doswell said. “Wind is a great resource and you can do it with scale, but we’ve got to work on this cost equation.” ___ Associated Press writer Steve Szkotak in Richmond contributed to this report..

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Michael P. Owens: How Newt Gingrich Can Win the Nomination by Coming Clean About Climate Change

January 24, 2012

And just like that… Newt Gingrich is suddenly the front-runner for the Republican nomination. It is not surprising Gingrich’s win of Saturday’s primary in South Carolina was due to his strong backing by conservative voters in the state. While Gingrich is no pauper, voters already alienated by Romney’s wealth, appear to be balking at his reticence to produce his tax returns. Perhaps, the 99% movement is not just a liberal thing after all? Though I can’t say whether Gingrich will be able to maintain this momentum through the upcoming primary in Florida, I do have a suggestion that I believe would improve his chances significantly: Gingrich should come clean about his well Documented beliefs on climate change! Now, before you suggest that this would be political suicide for a “conservative” presidential candidate in 2012, I ask that you please hear me out. The United States is lagging behind China and Europe in the clean energy race! The U.S. is the only developed nation where believing in climate science is a political issue. Meanwhile, the rest of the world agrees that climate change is real; and has focused on finding innovative, profitable solutions to mitigate its effects. When it comes to global investment in clean energy, the U.S. now ranks third, behind China and Germany (respectively). But those numbers understate the issue. In fact, China has actually invested three times more than us. This statistic is even more alarming when combined with the Pew Center study that predicts that the global market for clean energy will reach $2.3 trillion by 2030. Since reviving the sluggish economy and restoring our nation’s competitive edge remain key election issues, why are none of the candidates talking about these alarming statistics? Gingrich’s View on the Environment In 2007, Mr. Gingrich authored a book titled, A Contract with Our Earth , which called for “bipartisan environmentalism” to save the planet. In 2008, he starred in a commercial alongside Nancy Pelosi, for Al Gore’s Alliance for Climate Protection, in which he acknowledged that despite obvious political differences, “we do agree our country must take action to address climate change.” For the past year, revelations like these about Gingrich have been used by his rivals to label him a moderate. Unfortunately, in an effort to appeal to conservative voters, Gingrich has pulled an about-face. According to a recent survey by The Pew Research Center, only 31 percent of Republicans believe in global warming (compared with 77 percent of Democrats). This capitulation was never more evident than when Gingrich cut the chapter on climate change from his soon to be released book. How the U.S. Can Grab a Slice of the Estimated $2.3 Trillion Global Market for Clean Energy Republicans have been led to believe that the only way to address climate change is through a combination of higher taxes and new regulations that would burden business owners. This is shallow thinking from the party that touts the merits of free markets and capitalism above all else. If there were a tax on carbon emissions, the market would step in to provide alternatives. In turn, the country would develop new industries and jobs — putting us on the fast track to grabbing a slice of the estimated $2.3 trillion global market. To quote the same Pew Center survey: “America’s entrepreneurial traditions and strengths in innovation — especially its leadership in venture capital investing — are considerable, giving it the potential to recoup leadership and market share in the future.” My suggestion to Mr. Gingrich is that he simply come out and declare that if we want to be serious about reviving our economy, we must have an honest conversation about climate change. After all, the rest of the world is. Gingrich can state honestly that he has reservations about a cap-and-trade system and a carbon tax, but that he believes capitalism and American ingenuity can find a solution. The words Conservative and Conservation come from the same root. If Gingrich properly demonstrates these connections to his base, and highlights the risk of losing more economic ground to China, Germany and others, I believe he would gain additional supporters. Honesty Trumps All Poll after poll illustrates Americans’ intense distrust of government. The people want honesty, not political pandering. If Gingrich were to come clean about his true beliefs on climate change, he may just win the nomination and more.

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INFOGRAPHIC: Millionaire Pets

January 19, 2012

These pets are millionaires, and they have the diamond collars and mini-mansions to prove it. The fortune recently left to Tommaso, a cat in Rome owned by an heiress, sparked a newfound interest in wealthy pets. Tommaso’s rags-to-riches life made his story even more compelling. ABC News reported in December that Tommaso’s $13 million inheritance makes him the third richest pet in the world, and he is left also with properties in Rome and Milan. But while some pets may be rolling (sniffing, gnawing, napping) in money, millions of other pets around the world are struggling to survive. The Humane Society estimates that 3-4 millions pets are euthanized each year in the U.S. alone. If you’re interested in helping a pet in need of a home, consider adoption and visit Petfinder.com or ASPCA’s website to learn more. Check out the infographic below provided by visualy.ly of millionaire pets : by visually via

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Fuel Transfer Runs Smoothly For Iced-In Alaska City

January 18, 2012

ANCHORAGE, Alaska (AP) — A Russian tanker that went on an ocean odyssey of 5,000 miles to deliver fuel to the iced-in city of Nome was offloading the gasoline and diesel in what officials say is smooth sailing so far, with one possible problem avoided. Two parallel hoses, 700 yards long each, are stretched between the tanker Renda and a pipeline that will deliver 1.3 million gallons of fuel to storage tanks near the harbor of the iced-in city. The offloading began with gasoline, and then both gasoline and diesel were being transferred separately. Jason Evans, board chairman of Sitnasuak Native Corp., the company that arranged for the fuel delivery, said Tuesday the tanker’s two hoses are pumping between 30,000 and 40,000 gallons of gasoline and diesel an hour. One section of hose had to be switched out early Tuesday morning when a suspected bubble occurred in the line, Evans said. The change-out went smoothly and there have been no spills since the pumping operation began Monday evening. This is the first time petroleum products have been delivered to a western Alaska community by sea in winter. The mayor said festivities were planned, including a Coast Guard helicopter landing on the beach so children can look inside. They also set a basketball game between residents and Coast Guard crew members, and the city invited the crew to a pizza dinner. “It is our way to show our appreciation and how grateful we are and what they did for us,” said Mayor Denise Michels. The transfer could take from 36 hours to five days. It started near sundown Monday, after crews laid the hoses along a stretch of Bering Sea ice to the pipeline that begins on a rock causeway 550 yards from the tanker, Evans said. Sitnasuak owns the local fuel company, Bonanza Fuel, and has been working closely with Vitus Marine, the supplier that arranged for the delivery of the 1.3 million gallons of fuel. State officials said the transfer had to start during daylight, but can continue in darkness. Nome has just five hours of daylight this time of year. The city of 3,500 didn’t get its last pre-winter barge fuel delivery because of a massive November storm. Without the Renda’s delivery, Nome would run out of fuel by March or April, long before the next barge delivery is possible. Alaska has had one of the most severe winters in decades. Snow has piled up 10 feet or higher against the wood-sided buildings in Nome, a former gold rush town that is the final stop on the 1,150-mile Iditarod Trail Sled Dog Race. The Renda began its journey from Russia in mid-December, picking up diesel fuel in South Korea before heading to Dutch Harbor, Alaska, where it took on unleaded gasoline. It arrived last week off Nome on Alaska’s west coast, more than 500 miles from Anchorage. A Coast Guard icebreaker cleared a path for the 370-foot tanker through hundreds of miles of a slow journey stalled by thick ice and strong ocean currents. In total, the tanker traveled an estimated 5,000 miles, said Rear Adm. Thomas Ostebo, commander of District Seventeen with the Coast Guard. “It’s just been an absolutely grand collaboration by all parties involved,” said Stacey Smith of Vitus Marine, the fuel supplier. Smith said the effort is a third of the way over with the arrival of the Renda near Nome. Pumping the fuel from the tanker will be the second part. The third part will be the exiting through ice by the two ships. Personnel will walk the entire length of hosing every 30 minutes to check for leaks, Evans said. Each segment has its own containment area, and extra absorbent boom will be on hand. The Coast Guard is monitoring the effort, working with state, federal, local and tribal representatives, Chief Petty Officer Kip Wadlow said. The fuel participants had to submit a plan to state environmental regulators on how they intended to get the fuel off the Renda, he said. “We want to make sure the fuel transfer from the Renda to the onshore storage facility is conducted in as safe a manner as possible,” he said.

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Remote Alaska Town ‘On The 5-Yard Line’ Waiting To Reconnect With World

January 15, 2012

ANCHORAGE, Alaska — The ice that has cut off a remote Alaska town for months will connect it to the world again when crews build a path over it to carry fuel from a Russian tanker that was moored a half-mile from the town’s harbor Sunday morning. Workers were waiting for disturbed ice to freeze again so they could create some sort of roadway across the 2,100 feet from tanker to the harbor in Nome, upon which they’ll rest a hose that will transfer 1.3 million gallons of fuel. A storm prevented Nome’s 3,500 residents from getting a fuel delivery by barge in November. Without the tanker delivery, supplies of diesel fuel, gasoline and home heating fuel Nome are expected to run out in March and April, well before a barge delivery again in late May or June. The tanker began its journey from Russia in mid-December and has slowly made its way toward Nome, stalled by thick ice, strong ocean currents and one Alaska’s snowiest winters in memory. It picked up diesel fuel in South Korea, then headed to Dutch Harbor, Alaska, where it took on unleaded gasoline. Late Thursday, the vessels stopped offshore and began planning the transfer to Nome, more than 500 miles from Anchorage on Alaska’s west coast. A Coast Guard cutter cleared a path through hundreds of miles of Bering Sea ice for the tanker. Now, residents await the journey’s final leg, which comes with its own hurdles: In addition to waiting for the ice to freeze, crews must begin the transfer in daylight, a state mandate. But Nome has just five hours of daylight this time of year. “It’s kind of like a football game. We’re on the 5- yard line and we just want to work into the goal line,” said Sitnasuak Native Corp. board chairman Jason Evans, whose hometown is Nome. Sitnasuak provides fuel and other services to the region. Despite the complicated logistics of delivering fuel by sea in winter, Sitnasuak opted for the extra delivery after determining that it would be much less costly and more practical than flying fuel to Nome. A Coast Guard spokesman didn’t know how long it will be before fuel flows as crews must wait 12 hours, or until about 5 a.m. local time Sunday (6 a.m. Pacific), to ensure that the disturbed ice has refrozen. “We were able to successfully navigate that last bit of ice,” Coast Guard spokesman Kip Wadlow said. “We were able to get it pretty much right on the money, in the position that the industry representatives wanted to start the fuel transfer process.” The crew of the 370-foot tanker Renda was working to ensure the safe transfer of the fuel through a segmented hose that will be laid on top of the ice to the harbor, located about 2,100 feet from the ship, Wadlow said in a telephone interview from Nome on Saturday night. Once crews create a suitable path for the hose to rest on, its segments will have to be bolted together and inspected before the fuel can begin to flow. Though the transfer must start during daylight, it can continue in darkness, Betty Schorr of the Alaska Department of Environmental Conservation has said. It could be finished within 36 hours if everything goes smoothly, but it could take as long as five days, she said. Earlier Saturday, Evans gave details of the transfer process. Once the hose is laid down, he said personnel will walk its entire length every 30 minutes to check it for leaks. Each segment of hose will have its own spill containment area, and extra absorbent boom will be on hand in case of a spill. Evans said he hopes the crew will begin unloading Sunday. Evans, however, cautioned that delivering the fuel is only half the mission. “The ships need to transition back through 300 miles of ice,” he said. “I say we’re not done until the ships are safely back at their home ports” in Seattle and Russia. ___ Online:

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Palin Blasts Romney For Not Releasing Tax Returns

January 12, 2012

Former Alaska Gov. Sarah Palin suggested Wednesday that Republican presidential candidate Mitt Romney should release his tax returns, as well as records from his time at Bain Capital. “What I heard was a little bit what’s going on today is some inoculation of the candidate himself, the frontrunner, and what it is that he’s going to face when he comes up against Barack Obama. Nobody should be surprised that things about Bain Capital, and maybe tax returns not being released yet, and maybe some records not being as transparently provided to the public as voters deserve to see right now, don’t be surprised that’s all coming out today,” she told Sean Hannity Wednesday on Fox News. “Let’s get it out there, let’s hear the defense of the candidates who are being charged with some of this. It’s kind of like some come-to-Jesus moments for these candidates, and that’s good, that’s healthy.” In a December interview with NBC News , Romney said he has no plans to release his tax returns. “Never say never, but I don’t intend to do so,” he said. Though not required by law, most recent presidential and vice-presidential nominees have chosen to made their tax returns public, including Palin. Romney told the Des Moines Register editorial board that all of his income in the past 10 years is from dividends, interest and capital gains — all of which are taxed at a lower rate than personal income. Romney did not take a salary as governor of Massachusetts from 2003 to 2007. His wealth is estimated to be between $190 million and $250 million, according to financial disclosure reports. The Obama campaign has attacked Romney for not releasing his tax returns. “Why won’t Mitt Romney release his tax returns?” tweeted the @BarackObama account recently, liking to a DNC video. Palin also asked for more proof of Romney’s claim that he added ” over 100,000 jobs ” at Bain Capital. “I think what Gov. Perry is getting at is that Gov. Romney has claimed to create 100,000 jobs at Bain, and people are wanting to know, is there proof of that claim, and was it U.S. jobs created for U.S. citizens?” she said . Romney’s campaign says the figure comes from three companies Bain invested in: The Sports Authority, Staples and Domino’s. The figure does not include jobs lost at other companies Bain invested in. But more critically, it’s difficult to know what role Romney personally played in creating jobs, as opposed to the the role companies played themselves since the Bain investment.

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Don Tapscott: 20 Big Ideas for 2012, Part Four

January 12, 2012

What will happen in 2012? In the spirit of the aphorism “The future is not something to be predicted, it’s something to be achieved,” let me suggest 20 transformations (which The Huffington Post will publish in four groups of five; one, two and three can be found here , here and here ). We need to make progress on these issues now to prevent next year from being a complete disaster. These ideas are based on the research I did with Anthony D. Williams to write our recent book which comes out in early 2012 as a new edition entitled Macrowikinomics: New Solutions for a Connected Planet . All 20 are based on the idea that the industrial age has finally run out of gas and we need to rebuild most of our institutions for a new age of networked intelligence and a new set of principles — collaboration, openness, sharing, interdependence and integrity. These big ideas will be the focus of much of my writing next year. 16. A next step for social media: social business? How is Social Media changing business? Companies everywhere are using platforms like enterprise social networks, micro-blogging, wikis, digital brainstorms, challenges and ideation tools to collaborate internally. These are becoming a new operating system for a business improving its metabolism-capacity to collaborate. However, recent examples illustrate that social media is becoming a new mode production that changes the way economies and firms innovate, create wealth and compete. Beginning years ago with Wikipedia and the Linux operating system and extending today to entire industries like the manufacturing of motorcycles in China. Closed, hierarchical corporations that once innovated in secret can now tap and contribute to a much larger global talent pool — one that opens up the world of knowledge workers to every organization seeking a uniquely qualified mind to solve their problem. Scientists can accelerate research by open-sourcing their data and methods to offer every budding and experienced researcher in the world an opportunity to participate in the discovery process. Social media are becoming social production. How can companies benefit rather than being harmed? 17. New models for the music and entertainment industries The music industry was the canary in the mineshaft for the entertainment industries. Digital music offers a historic opportunity to place artists and consumers at the center of a vast web of value creation. But these novel dynamics have turned the record industry on its head. Rather than build bold new business models around digital entertainment the industry has sought legal solutions to disruption. (The third-greatest source of revenue for U.S. labels is lawsuits against customers.) Arguably, an obsession with control, piracy, and proprietary standards on the part of large industry players has only served to further alienate and anger music listeners. With artists now increasingly turning against the record industry’s lawsuits, however, momentum may be shifting in favor of a better way forward. How can customers share music while ensuring that musicians, composers and promoters are fairly paid for their work? How could labels develop Internet business models with the right combination of “free” goods, consumer control, versioning, and ancillary products and services? Could music become a service where consumers have access to online streaming audio of any song for a monthly fee? What new platforms for fans’ remixes and other forms of customer participation in music creation and distribution are required? How could new approaches apply to other aspects of cultural content like film, television, books and even art? 18. New models for higher education: collaborative learning and content creation Without fundamental reform, universities will not be able to compete with cheaper and more effective online education providers. While many young people are still going to university, a growing portion of the best and the brightest students have given up attending classes, because the information is available in a more easily ingested form online. Universities must shift their business model from the centuries-old notion that a professor lectures students, to a more collaborative, interactive model. Instead of being the “sage on the stage,” teachers should be the co-pilot for students as they explore and collaborate online to acquire knowledge. We also need an entirely new modus operandi for how the content of higher education — the subject matter, course materials, texts, written and spoken word and other media — is created. Rather than the old textbook publishing model, which is both slow and expensive for users, universities professors and other participants can contribute to an open platform of world-class educational resources that students everywhere can access throughout their lifetime. How can leaders create a Global Network for Higher Learning? If universities open up and embrace collaborative learning and collaborative knowledge production, they have a chance of surviving and even thriving in the networked, global economy. 19. The new demographic revolution: Embracing the Net Generation as young adults The world is becoming younger with over half the population under the age of 25. With many having grown up bathed in digital bits, they are adept with interactive media and completely comfortable with technology. Research shows that those with access to the Internet are the first-ever global generation — with strong norms for freedom, customization, collaboration, integrity and innovation. As they enter the workforce and marketplace, they are a huge force for transformation in every institution. But are we ready? How are they different? What do firms, governments, and educational institutions need to do to embrace them? What can we learn from them when redesigning our institutions for the new realities? 20. The New power of the commons Increasingly it’s becoming difficult or even impossible for companies to achieve breakthrough success without changing their entire industry’s modus operandi. In particular it increasingly makes sense for all the companies in an industry to cooperate for success by sharing intellectual property — placing important assets in the commons. Pharmaceutical companies are about to drop off what’s called “the patent cliff.” They will lose 25-40 percent of their revenue as the patents for many blockbuster drugs expire. There is little individual companies can do to recover from this crisis. They need an industry-wide solution that rethinks how they work together as an industry — to restructure industry practices and share some pre-competitive basis research or sharing their clinical trial data, such as results from failed trials or from control groups. Banks need to share information about risk management. Manufacturers need to take a page from Nike and share information, software and other assets for sustainable business practices. The auto companies should place fuel cell development in the commons. We need a new intelligent power grid for the production and distribution of energy. Co-development and collaboration within the industry and sharing is necessary. But industry leaders need to wake up and step up. This article originally appeared on Reuters.com Don Tapscott is the author of 14 books, including (with Anthony D.Williams) MacroWikinomics: New Solutions For a Connected Planet . He is an Adjunct Professor at the Rotman School of Management, University of Toronto.

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Mini Apple Stores Coming To Target

January 12, 2012

NEW YORK — Target says it will team up with owners of specialty shops to create affordable, limited edition merchandise for sale online and at its stores in a bid to attract more customers and distinguish itself from rivals. Target Corp. said Thursday it will start featuring products from five shops starting May 6. The shops will be open for six weeks and then be replaced with another slew of shops in the fall. The initial group includes The Candy Store in San Francisco, The Privet House home accessories shop in Connecticut; The Webster House, a clothing store in Miami; Polka Dog Bakery in Boston; and The Cos Bar, a cosmetic shop in Aspen. The items will be sold both at Target stores and online. With prices ranging from $1 for a nail file to a $159.99 online only ottoman for the home, the five collections total nearly 400 products. “This puts Target at the frontier of what’s next in retail,” said Brian Robinson, director of fashion and design partnership at Target. Separately, Target says will testing creating mini-Apple shops in 25 Target stores. It provided no details. Target pioneered the concept of offering designer merchandise at affordable prices starting with its Michael Graves launch of home accessories in 1999. It says rivals have copied its cheap chic mantra. Target shares rose 17 cents to $49.20 in morning trading Thursday. Its shares have traded in a 52-week range between $45.28 and $56.44.

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PA Residents With Tainted Water Scramble After Delivery Plans Reportedly Canceled

January 8, 2012

ALLENTOWN, Pa. — The U.S. Environmental Protection Agency abruptly changed its mind Saturday about delivering fresh water to residents of a northeastern Pennsylvania village where residential wells were found to be tainted by a natural gas drilling operation. Only 24 hours after promising them water, EPA officials informed residents of Dimock that a tanker truck wouldn’t be coming after all. The about-face left residents furious, confused and let down – and, once again, scrambling for water for bathing, washing dishes and flushing toilets. Agency officials would not explain why they reneged on their promise, or say whether water would be delivered at some point. “We are actively filling information gaps and determining next steps in Dimock. We have made no decision at this time to provide water,” EPA spokeswoman Betsaida Alcantara said in an email to The Associated Press. It’s not clear how many wells in the rural community of Dimock Township were affected by the drilling. The state has found that at least 18 residential water wells were polluted. Eleven families who sued Houston-based Cabot Oil & Gas Corp. expected water from the EPA to arrive either Friday or Saturday. They say they have been without a reliable source of water since Cabot won permission from state environmental regulators to halt deliveries more than a month ago. Cabot, which was banned in 2010 from drilling in a 9-square-mile area around the village, took legal responsibility for the Dimock methane contamination, but contends water wells in the area were already tainted with methane long before the company arrived. The company also says it met a state deadline to restore or replace Dimock’s water supply, installing treatment systems in some houses that have removed the methane. But homeowners say their wells are tainted with methane gas and toxic chemicals that are used in hydraulic fracturing, a technique in which water, sand and chemicals are blasted deep underground to free natural gas from dense rock deposits. Dimock resident Craig Sautner said an EPA staffer in Philadelphia told him Saturday the water delivery was canceled. He said the EPA staffer, on-scene coordinator Rich Fetzer, would not explain why. “You can’t be playing with people’s lives like this,” said Sautner, whose well was polluted in September 2008, shortly after Cabot began drilling in the area. Sautner and the other homeowners had been relying on deliveries of bulk water paid for by anti-drilling groups, but the last delivery was Monday, and some of them ran out. After the EPA delivery fell through Saturday, the environmental group Water Defense, founded by actor Mark Ruffalo, said it would send a tanker from Washingtonville, N.Y., on Sunday to replenish the residents’ supply. Dimock has become a focal point in the national debate over the so-called fracking method, which has allowed energy companies to tap previously inaccessible reservoirs of natural gas while raising concerns about its possible health and environmental consequences. The industry says the technique is safe. Gas drilling companies have flocked in recent years to the Marcellus Shale, a massive rock formation underlying New York, Pennsylvania, Ohio and West Virginia that’s believed to hold the nation’s largest deposit of natural gas. Pennsylvania has been the center of activity, with thousands of wells drilled in the past few years. The latest twist in the three-year-old Dimock saga left residents with plenty of questions, but no answers. “What happened? Who had the power here? Who had the power to change their minds? Was it the governor? Was it somebody from Washington? Was it Cabot? What happened? We don’t know. We’re really confused,” said Wendy Seymour, an organic garlic farmer. Seymour said an EPA official in Philadelphia told her Friday that she could expect a delivery. On Saturday, another EPA official called her and “apologized for the confusion” and said EPA was still assessing the situation. Claire Sandberg, executive director of Water Defense, said the EPA owed them an explanation. “It’s tragic to see the EPA raise these people’s hopes and then dash them, to see the EPA suggest they were beginning to accept their responsibility to protect the public, and then back out a few hours later when these people are so desperate,” she said.

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Crucial Info Women Don’t Know About Money: LearnVest Survey

January 5, 2012

There’s a familiar but grating stereotype that women are frivolous when it comes to money (here’s looking at you “Confessions of a Shopaholic,” Lily Aldrin of “How I Met Your Mother” and many, many others). But new evidence suggests that women care a lot about managing their finances effectively — they just aren’t sure of the best way to go about it. On Wednesday, LearnVest, a personal finance website tailored to women, published the results of a survey it commissioned of over 600 women, conducted by business consultancy Maddock Douglas. The results showed that the majority of participants are uncertain about what financial steps they should be taking, and that many of them lacked confidence in their ability to make key financial decisions. Ninety percent of women surveyed, ages 21 to 59, weren’t sure how much to save for retirement, what types of retirement accounts to open, how much money to invest, and what types of investment accounts to open. Eighty-four percent were not very comfortable in their ability to set specific financial to-dos. To explain these fairly distressing numbers, HuffPost Women spoke with LearnVest CEO Alexa von Tobel: The survey found that six in 10 women are stressed out about their finances: where’s the majority of that stress coming from? It’s credit cards — they were at the top by a majority. The next one was health insurance decisions, but credit cards were three times more stressful than that. Credit card debt builds, and it grows. You know it’s bad for you. You know it’s hurting your credit score. If it’s debt across three cards, you’re not sure which dollars should go where first. I hear this all day long from people writing in saying, “I have $20,000 of credit card debt. I’m ashamed about it.” I think it’s helpful that people recognize that it’s not okay to have that much debt, but it’s better if you’re not ashamed — it empowers you to take action when you set being ashamed aside. Of all of the “pain points” the survey identified in women’s financial landscape, which is most problematic on a macro scale? Twenty-seven percent of women did not have a retirement account of any kind. Of those that had them, 48 percent had less than $10,000 in savings and 57 percent had less than $20,000. That is so daunting when you consider that it’s critical for women to have ample retirement because their life expectancy is shown to be longer. Social security is running out, and pensions barely exist. We are funding ourselves through retirement. Which should individual women tackle first? It’s not impossible to generalize, it just requires people to answer some questions. I could always say, “Pay down your credit card debt” — and it’s really important you pay that down — but if your employer has a 401k-matching program and you can sign up for that, that’s a big priority. If you’re going to lose your job, you might need to start your emergency savings plan. But paying down credit card debt as quickly as possible is always a good thing to do. Why do 76 percent of respondents think it’s hard to be in control of their money? The majority of [respondents] feel out of control because they don’t know how to think through their priorities. You may have credit card debt and student loans, and you’re trying to fund an emergency savings account and fund retirement. Eighty-four percent of women are not comfortable setting their own specific financial to-dos [because] they don’t know what they’re supposed to be doing. Sixty-six percent feel like it’s very hard to get financial information, and they don’t know how to get information tailored to their specific situations. Do you think this lack of information and accumulated financial knowledge is in any way unique to women, or do you believe it’s true for men, too? I would say there’s a knowledge gap for everyone because this information isn’t taught in high school, in college, or in graduate schools. We make six to 10 financial decisions every day. Should I take a cab? Am I going out? Can I go to a party? Should I pay cash or use a credit card? But we’re given no formal guidance on how to think these decisions through. From women who work at investment banks to women who have no education at all, they have the same questions. A great education doesn’t necessarily mean you have money education. What the survey did show is that women were interested in learning. Eighty-seven percent said they’d love to talk to a financial advisor. They’re actually quite proactive, but they weren’t sure where to go. Fifty-four percent of women have credit card debt averaging $9,000. Doesn’t that suggest that the recession has had virtually no impact on women’s spending habits? I do think people are getting more thoughtful about spending. A lot of the people we hear from say, “I’m not wasting money, and I’m not shopping.” But once you get under this pile of burdensome debt and your yearly financial salary isn’t dramatically getting bigger, you just can get stuck. You can be doing the right things, but still not getting your head above water. The $9,000 of credit card debt — though it makes my stomach sick — does not surprise me. What’s the easiest, quickest way to give your financial life a makeover? One of the best things I’ve learned is that 50 percent of income should go to essentials: food, shelter and transportation. Twenty percent every month always should go to what we call “priorities”: paying down debt or student loans and retirement. And 30 percent goes to choices: that’s eating out, gym membership, shopping, gifts, travel — anything that’s not critical. One of the things that we feel strongly about is, if you get to the point that you really know you can’t use a credit card the way its best designed to be used, go on a cash diet and only spend cash. It really can help you reset your spending habits, and protect you while you’re trying to get out of major debt.

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Groupon Stock Tumbles As Main Street Merchants Pull Back

January 4, 2012

Perhaps Wall Street is listening to Main Street after all. Daily deals site Groupon, which went public in early November, is seeing its stock price tumble after a recent report found that most business owners who previously offered a daily deal have no plans to do so again in the next six months. Groupon’s stock slipped 9.1 percent in the two days of trading following the report’s release on Tuesday. That’s Groupon’s largest two-day drop since it went public, excluding a rough week in late November, signaling that Main Street’s concerns over the daily-deals model continue to weaken public investors’ demand for the industry leader’s shares. The study, by Susquehanna Financial Group and daily-deal aggregator Yipit, found that merchants were most concerned about how much deal sites require participating vendors to discount their goods, as well as the low rate of repeat business gained from consumers who purchased the offers. As such, 52 percent of merchants said they had no plans to offer a daily deal in the next six months, and 24 percent intend to feature only one deal during the same period. As for the market’s harsh reaction to the survey, which collected data from only 100 merchants, “it’s almost as if investors were looking for a reason to dump the [Groupon] stock,” All Things Digital’s Tricia Duryee noted, citing that the study was largely positive . Notably, the study found that 80 percent of merchants said they enjoyed working with daily deals sites — such as Groupon, Living Social and the growing list of competitors — which shows that “the vast majority of merchants who have run deals are happy with their experience,” Brendan Lewis, a Living Social spokesman, told Bloomberg . “You’d be hard-pressed to find an 80 percent satisfaction rate among merchants for any other marketing channel in use today,” he added. But recent data show that, for Groupon at least, the local-deals business is declining , a sign that while merchants may “enjoy” working with deal sites, fewer small businesses are signing up to offer daily deals through the industry leader, whose stock is suffering as a result.

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Online Casinos: Not So Fast

January 4, 2012

The Justice Department may have paved the way for Internet gambling, but that doesn’t mean everything will come up aces for online poker players. Those envisioning a boom in virtual casinos and card rooms can expect several obstacles. That’s the word from legal experts following the department’s about-face announcement Dec. 23. The DOJ said it was reversing its stance that the Wire Act of 1961 prevents online lottery sales and, by implication, other Internet gambling except sports betting. The move could allow states to implement their own intrastate virtual casinos and card rooms, tapping yet another gambling revenue stream in a stale economy. With states desperate to close a combined $95 billion 2012 deficit, gambling has emerged as a possible quick fix. The payoff from Internet casinos, however, won’t be automatic. “No one can assume that it’s a free ride to Internet poker, said attorney Anthony Cabot , a gaming specialist at the Lewis and Roca firm in Las Vegas. Among the hurdles: Sparsely populated states may lack enough gamblers: Most states are too small to support an in-state online casino. The cost of software and monitoring is too great for less-populated states to justify Internet casino play, especially poker, which requires a certain amount of players at the “table.” “You have to have enough players to populate that ecosphere,” Cabot said. “Little states don’t have enough to make it work.” Cabot wondered whether his state, the nation’s casino capital, would have enough resident gamblers to support a virtual gaming site. Both the casino-affiliated computer servers and players presumably would have to be inside the state for any transactions to be legal, so states must be staked with a sufficient pool of gamblers, he said. One state could team with another to form a larger casino entity, according to authorities. Games played against the house, such as blackjack and roulette, wouldn’t be a problem for smaller states, others said. Who gets the money? Lotteries, Native American-run casinos and brick-and-mortar card rooms will all be vying for a share of the profits. In California, all three are in the mix. I. Nelson Rose , a Whittier College law professor who specializes in gambling, predicted that California would issue as many as three licenses to keep all parties happy. But he added that the lottery would likely be the loser in this scenario, with powerful Indian interests getting a hefty chunk of the action. “The tribes see [online gambling] as inevitable and something that must be shared,” he said. Online gambling hasn’t been approved in most states. Only Nevada and the District of Columbia already have legalized (but do not yet host) intra-regional casinos online, leaving 49 states to push through an online gambling law if they want it. That’s no sure thing, according to attorney Stephen Schrier , head of the gaming practice at the law firm Blank Rome and a former regulator for the New Jersey Division of Gaming Enforcement. Schrier said it’s possible that at least one state will implement online gaming this year — most likely Nevada as it already is entertaining bids from software makers and operators. New Jersey could be next if an aggressive campaign by State Sen. Raymond Lesniak (D) succeeds in pushing through a bill before the Jersey legislature adjourns Jan. 9. Another early adopter could be Iowa , a relatively prosperous state that has eyed online gambling for years. One study determined the state could net as much as $13 million in tax revenue annually as a result. Iowa began the riverboat casino trend in 1991. “Iowa likes being the first on these things,” Rose said. Nuances could be a nuisance. Every state will have issues interpreting the legalities. In Jersey, for instance, an existing law permits casino gambling only within Atlantic City, Schrier pointed out. So the conundrum is: If the computer server is in Atlantic City but the online gambler is in Trenton, where is the betting taking place? Jersey’s most recent bill has decided it’s where the server is. Stay tuned. Other states might also wrestle with what constitutes an in-state gambler. Software can already let the host and law enforcement know whether a player is actually in the approved state at the time, Schrier said. A smartphone application, for example, could cut off a gambler in New Jersey as soon as he or she steps into New York. And if the host should misinterpret the law or be lax in applying it, a slew of other federal statutes, including the Travel Act, are still on the books, according to legal eagles. While authorities agree that the Justice Department’s decision is significant, it is a mere first step on the road toward legalizing casino gambling in cyberspace. This opinion could even be challenged or jettisoned, as Howard Stutz of the Las Vegas Review-Journal observed. Rose called the development a gift from the Obama administration to debt-ridden states. But it might not be a gift that starts giving as fast as many might hope.

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Brendan McMahon: Unemployment Is A Lifestyle For Actors, And Now Too Many Others

January 4, 2012

Recently, I was hired by a family friend to remove the walls and flooring of a house he needed to sell. This family friend is as nice as you can get. I got the feeling he normally would have done the work himself, but he knows I’m an actor. Like most actors and many Americans, I’m unemployed. Right now, the country is running an 8.6 percent unemployment rate. At the same time, the average unemployment rate for actors, according to the Actor’s Equity Association , hovers around 90 percent. Whereas being unemployed is a rather new phenomenon for most of the workforce, it is a way of life for actors. Every day I hear or read about folks looking for work. “With my experience, I just still don’t understand why I’m not being picked up quickly by a permanent job someplace,” said Ray Meyer recently on a National Public Radio report regarding unemployment. Meyer had a 30-year career in Banking before being laid off in 2008. He has since had a series of temporary assignments. This kind of uncertainty is typical fare for Actors who “endure long periods of unemployment, intense competition for roles, and frequent rejections in auditions,” states a report by the United States Department of Labor Bureau of Labor Statistics. According to the same report, with Acting jobs typically lasting from ” between 1 day and several months ,” Actors ” must hold other jobs in order to make a living .” This is becoming commonplace for many workers, including those who are college graduates. It is generally accepted that training for an occupation and becoming a contributing member of society is why we attend college. For actors, attending University for a degree in performing has become a practice in absurdity. There is not enough work for most of them to pay the debts they’ve incurred. Unfortunately, this seems to be becoming a truth for many professions. According to FinAid.org, about two-thirds of all college students graduate with debt, borrowing between $27,000 and $114,000 . Increasingly those who can find work often find work in jobs that don’t require a college degree. A report from the Center for College Affordability and Productivity states “Total college graduate employment in below college level jobs increased from 953,000 in 1967 to 5.06 million individuals in 1990.” The report goes on to show that this trend has grown exponentially in the current recession, from 16.6 percent of college grads working such jobs in 1998 to 35.3 percent in 2008. Again, for actors this situation is an old hat. In a 2005 New York Times article , Scott L. Steele, the executive director of the University/Resident Theater Association, a consortium of graduate theater programs and professional theaters stated: “We’re producing too many people… many of them poorly trained or moved into the field without the connections or relationships necessary to make their transition to a career possible. It’s as if medical school were graduating people without giving them internships at a hospital.” In the same article, Alan Eisenberg, the executive director of Actors Equity followed a similar train of thought: “These schools are just turning out so many grads for whom there is no work.” Such sentiments were echoed throughout: “How do we effectively prepare our students for a career that has no interest in them being part of it?” The idea of paying off the loans for our expensive educations seems like it might take some kind of miracle, especially while working in temporary jobs with low wages. Again, this is sadly becoming true for graduates of higher education in all fields. Certainly, a Master’s Degree qualifies one to teach at the College level, but with the above figures and testimony, there’s something rather unsettling about taking students money for an education that will not help them find work. Loaded with college debt, and without steady work, anxiety and depression are becoming prevalent among the ranks of the unemployed. “I am so down,” states Jennifer Barfield, an out of work IT professional, also interviewed recently by National Public Radio . “I am just questioning everything from spiritual issues to what’s the point of living life if this is all it is.” These sentiments are commonly revisited in my conversations with other performing arts professionals, but now hopelessness seems to be a prevailing theme for all of the unemployed. According to the online journal Live Science : “The primary issue the unemployed are dealing with is the loss of identity.” Doing a job we have trained for and are good at makes us feel as though we have meaning and purpose in our lives, and as though we are contributing to our society. For many actors, indeed for many artists, the sense that what we have to offer isn’t necessary in our society leads to lifestyles dogged by the depression and anxiety that many outside the arts are now experiencing through lack of work. For all of the suffering unemployment causes, it is amazing how little it takes to reverse some of the effects. Working on the house, it felt great to engage in the work at hand, to know that it would help me to buy Christmas presents, buy groceries and pay bills. Sadly, the job was finished in one day. Short term. Itinerant. Unskilled. This is an old story for many actors, and unfortunately also the story for many of the currently unemployed.

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Could Ohio Earthquakes Incite A Fracking Policy Shift?

January 3, 2012

COLUMBUS, Ohio — In Ohio, geographically and politically positioned to become a leading importer of wastewater from gas drilling, environmentalists and lawmakers opposed to the technique known as fracking are seizing on a series of small earthquakes as a signal to proceed with caution. Earthquakes caused by the injection of wastewater that’s a byproduct of high-pressure hydraulic fracture drilling, aren’t new. Yet earthquakes have a special ability to grab public attention. That’s especially true after Saturday’s quake near Youngstown, at magnitude 4.0 strong enough to be felt across hundreds of square miles. Gov. John Kasich, a drilling proponent, has shut down the wastewater well on which the quake has been blamed, along with others in the area, as the seismic activity is reviewed. “Drilling’s very important for our economy and to help us progress as a state, but every single person in the Mahoning Valley felt this earthquake,” said state Sen. Joe Schiavoni, a Youngstown Democrat who on Tuesday called for a public hearing. “I wouldn’t deem it as an emergency, but when you live in a place that you’re not used to earthquakes and you have 11 earthquakes, you’re concerned,” he said. “We need to give them some sort of confidence or security that this is going to be OK.” Fracking involves blasting millions of gallons of water, laced with chemicals and sand, deep into the ground to unlock vast reserves of natural gas, a boon both for energy companies and a public hungry for cheap sources of fuel. That process, though, leaves behind toxic wastewater that must be expensively treated or else pumped deep into the earth. The wastewater is extremely briny and can contain toxic chemicals from the drilling process – and sometimes radioactivity from deep underground. The practice of dumping underground has been controversial in light of scant research done on potential environmental dangers, highlighted by reports of contamination of aquifers in some communities in Pennsylvania and Wyoming. Some states are reconsidering it. A coalition of environmental groups is preparing a protest for next week’s return of the Ohio Legislature. Activists opposed to increased oil and gas drilling activity across Ohio, Pennsylvania, New York and West Virginia – where the Utica and Marcellus Shale formations are believed to hold vast quantities of gas – see trouble with the Ohio injection well. It took wastewater from fracking, as well as other forms of drilling. “What other business or industry isn’t held accountable for its full cradle-to-grave processes?” said Deborah Nardone, director of the Sierra Club’s Natural Gas Campaign. “They need to be responsible for the waste stream that they’ve created.” Ohio’s closure of the well will have little to no impact on drilling, said Travis Windle, a spokesman for the Marcellus Shale Coalition, an industry group based in Pennsylvania. Four of the five wells that Ohio shut down were not operational, Windle said. Pennsylvania’s drillers have turned in recent months to deep-well injection of millions of gallons of wastewater because of a voluntary state moratorium last year on dumping of waste at treatment plants where the partially treated liquids are discharged into rivers and streams that drinking water is taken from. Most drillers in Pennsylvania accepted a voluntary state moratorium last year on dumping of waste at treatment plants, which had discharged the partially treated mix into rivers and streams that supply drinking water. Many drillers now recycle the drilling fluid, and some turned to deep-well injection of millions of gallons of the wastewater. Pennsylvania has six deep injection wells that currently accept fracking fluid, said Amanda Witman, a spokeswoman for the Department of Environmental Protection. But some of its waste is trucked into Ohio, where the geology allows for more injection wells. Ohio’s willingness to accept the fracking leftovers amid a drilling boom in states to the east, south and west worries some residents and environmental advocates who say the science isn’t proven – and point to the earthquakes as evidence. The Ohio Petroleum Council, an industry group, says any public anxiety is misplaced. “Injection wells have worked well to protect public safety for decades, and a situation like the one in question near Youngstown is very rare,” executive director Terry Fleming said in a statement. Kasich told reporters over the weekend that he doesn’t believe the energy industry should be blamed for issues arising from disposal of their byproducts. That would be like blaming the auto industry for improper disposal of old tires, the first-term Republican said. Scientists have known for decades that drilling or injecting water into areas where a fault exists can cause earthquakes, said Paul Hsieh, a research hydrologist with the U.S. Geological Survey in Menlo Park, Calif. “That’s widely documented and accepted within the science community,” he said. “It’s seen all over the world.” Injection wells have also been suspected in quakes in Arkansas, Colorado and Oklahoma. Oklahoma’s sharpest earthquake on record, of magnitude 5.8 on Nov. 5, was centered on a county that has 181 such wells, according to Matt Skinner, a spokesman for the Oklahoma Corporation Commission, which oversees oil and gas production in the state and intrastate transportation pipelines. However, a study by the Oklahoma Geological Survey released earlier in 2011 found that most of the state’s seismic activity didn’t appear to be tied to the wells, although more investigation was needed. “It’s a real mystery,” seismologist Austin Holland said in November. “At this point, there’s no reason to think that the earthquakes would be caused by anything other than natural” shifts in the Earth’s crust. New York state’s Department of Environmental Conservation is wrapping up an environmental impact review and proposed new regulations for gas drilling. Permitting for new gas wells has been on hold since the review began almost four years ago. While the proposed permit guidelines do mention injection wells as a possible means of wastewater disposal, any shutdown of such wells in Ohio would have no effect on New York’s regulatory process, department spokesman Emily DeSantis said Tuesday. James Smith, spokesman for the Independent Oil & Gas Association of New York, said he knows of no drillers in the state who are shipping waste to Ohio and whether they would in the future is a matter of speculation. ___ Associated Press writers Kevin Begos in Pittsburgh, Mary Esch in Albany, N.Y., and Justin Juozapavicius in Tulsa, Okla., contributed to this report.

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Evidence Links Fracking To Ohio Earthquakes

January 3, 2012

CLEVELAND — A northeast Ohio well used to dispose of wastewater from oil and gas drilling almost certainly caused a series of 11 minor quakes in the Youngstown area since last spring, a seismologist investigating the quakes said Monday. Research is continuing on the now-shuttered injection well at Youngstown and seismic activity, but it might take a year for the wastewater-related rumblings in the earth to dissipate, said John Armbruster of Columbia University’s Lamont-Doherty Earth Observatory in Palisades, N.Y. Brine wastewater dumped in wells comes from drilling operations, including the so-called fracking process to extract gas from underground shale that has been a source of concern among environmental groups and some property owners. Injection wells have also been suspected in quakes in Ashtabula in far northeast Ohio, and in Arkansas, Colorado, and Oklahoma, Armbruster said. Thousands of gallons of brine were injected daily into the Youngstown well that opened in 2010 until its owner, Northstar Disposal Services LLC, agreed Friday to stop injecting the waste into the earth as a precaution while authorities assessed any potential links to the quakes. After the latest and largest quake Saturday at 4.0 magnitude, state officials announced their beliefs that injecting wastewater near a fault line had created enough pressure to cause seismic activity. They said four inactive wells within a five-mile radius of the Youngstown well would remain closed. But they also stressed that injection wells are different from drilling wells that employ fracking. Armbruster said Monday he expects more quakes will occur despite the shutdown of the Youngstown well. “The earthquakes will trickle on as a kind of a cascading process once you’ve caused them to occur,” he said. “This one year of pumping is a pulse that has been pushed into the ground, and it’s going to be spreading out for at least a year.” The quakes began last March with the most recent on Christmas Eve and New Year’s Eve each occurring within 100 meters of the injection well. The Saturday quake in McDonald, outside of Youngstown, caused no serious injuries or property damage. Youngstown Democrat Rep. Robert Hagan on Monday renewed his call for a moratorium on fracking and well injection disposal to allow a review of safety issues. “If it’s safe, I want to do it,” he said in a telephone interview. “If it’s not, I don’t want to be part and parcel to destruction of the environment and the fake promise of jobs.” He said a moratorium “really is what we should be doing, mostly toward the injection wells, but we should be asking questions on drilling itself.” A spokesman for Gov. John Kasich, an outspoken supporter of the growing oil and natural gas industry in Ohio, said the shale industry shouldn’t be punished for a fracking byproduct. “That would be the equivalent of shutting down the auto industry because a scrap tire dump caught fire somewhere,” said Kasich spokesman Rob Nichols. He said 177 deep injection wells have operated without incident in Ohio for decades and the Youngstown well was closed within 24 hours of a study detailing how close a Christmas Eve quake was to the well. The industry-supported Ohio Oil and Gas Association said the rash of quakes was “a rare and isolated event that should not cast doubt about the effectiveness” of injection wells. Such wells “have been used safely and reliably as a disposal method for wastewater from oil and gas operations in the U.S. since the 1930s,” the association’s executive vice president, Thomas E. Stewart, said in a statement Monday. Environmentalists are critical of the hydraulic fracturing process, called fracking, which utilizes chemical-laced water and sand to blast deep into the ground and free the shale gas. Critics fear the process itself or the drilling liquid, which can contain carcinogens, could contaminate water supplies, either below ground, by spills, or in disposed wastewater. Permits allowing hydraulic fracturing in Ohio’s portion of the Marcellus and the deeper Utica Shale formations rose from one in 2006 to at least 32 in 2011.

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Ray A. Rothrock: Venture Capital and Energy In the United States: Where To From Here

January 1, 2012

Six or seven years ago the broader venture capital community took an interest in energy as a category for venture capital investing. Storied venture capitalist like John Doerr and Vinod Khosla began to give speeches, raised lots of capital and put down some bets. Many firms were already making sizeable investments but not the headliners. The idea that energy might be “cool” began to percolate into the ethos of Silicon Valley. So why did this begin to happen, where are we today, and most importantly, where do we go from here. How did energy become a hot investment area? Hard to recall exactly what were the hot investment sectors six years ago, but for venture capital technology was not a hot investment sector. Healthcare was still hanging on as a good market for investments but not going gangbusters, either. Entrepreneurs and some VCs noticed the rising public discussion about climate change. In the news, for example, was the Kyoto Protocol adopted by the world was now in force in February 2005. The IPCC, a world-based organization founded in 1988, which few people knew or cared much about issued a report in 2007 sounding the alarm bell on climate change. This brought the concern for climate change to the world’s scientific community and the topic above the crease on the front page of every major newspaper and media outlet, and on the lips of every politician. Entrepreneurs are quick studies of hot trends and opportunities. In the Silicon Valley many successful IT entrepreneurs with VC relationships from the decade of the 1990s took an interest. They quickly concluded that a change in the American energy landscape was an opportunity in the making and thus began to team up with the scientists and engineers in energy, many from the 70s revolution in solar innovation. Together they put out business plans all along Sand Hill Road seeking capital. I recall one year Venrock saw over 80 solar investment opportunities. VCs are nothing if not recognizers of patterns. Entrepreneurs were forming up new energy companies and so the VCs quickly followed suit rationalizing there would be a big payoff because the markets were huge and new technology was emerging. What was driving the energy investment opportunity? During the 2000s, the Bush Administration mostly turned a blind eye to the discussion of climate change. After all, it was fighting a significant war that many would argue was about energy, in particular oil. Also during this decade the world watched the rise of China’s economy and its energy-consuming middle class. This new demand on energy impacted world energy prices practically over night. In 2010, China’s total energy output equaled that of the United States for the first time ever even though its economic output was still about 25 percent that of the United States. During this decade the world saw oil prices hit an all time high of $145 per barrel in July 2008. It was amazing how quickly Americans changed driving habits; some even bought Priuses as fast as these new hybrid cars could get to our shores. Of course the world economic crisis of 2008 revealed the fact that every country had too much debt. The governments of many major countries enacted emergency legislation when they realized they could not pay their debt but had to keep their countries afloat and productive. Nonetheless, the Great Recession set in. As the decade came to a close, the personal pain of high unemployment and recession unsettled most of the developed world. All of the drivers for new energy solutions — recognized climate change by the authoritative IPCC, economic prosperity and rising energy consumption of the world’s most populous country, China, and the daily reminder that the United States was in a protracted war where it gets 22 percent of its oil supply signaled that business as usual in energy was not acceptable. So where are we as 2011 closes out and 2012 begins? Here are some facts to consider. In March of 2011 the world witnessed a colossal nuclear power disaster at Fukushima, Japan resulting from nearly the worst earthquake and tsunami ever. The outcome is likely a significant delay in the nuclear renaissance in the developed world and the outright abandonment of nuclear energy in Germany. The developing world has no choice in the matter if they want to grow. They are and will continue to deploy nuclear power. Oil and gas exploration is booming since the U.S. figured out that shale gas was essentially everywhere, cheap to extract, and domestic. Rig counts are up and unemployment in O&G is at an all time low. Oil on the world market fluctuated wildly from about $70 to $120 a barrel as the Arab Spring happened this last year and has now settled at just over $100 a barrel. No one thinks it will go below that price for the foreseeable future. Most of the progressive countries in the Middle East completely depend on oil prices above $80 to support their government programs. Letting the price drop puts those governments at risk. Here in the United States the price of gasoline is 70 cents lower than its high in the spring of 2011 citing reduced demand. It appears that $3.50 to $4.50 a gallon for gasoline evokes behavior change in Americans to cut back their demand. Unfortunately a vocal minority continues to challenge climate change. They say that recent data suggests that the some glaciers are not melting quite as fast once thought and some not at all. The same data also suggests that the polar ice cap is melting enough to open shipping routes over the top of the Earth in the coming years. CO2 is a main culprit. It is both naturally produced and man-made. We must step in now with technologies to reduce the use of fossil fuels, a key contributor to CO2. Not doing something about CO2 production and risking the known dire consequences of that decision would not be a wise choice for the planet. In 2011 the world population surpassed 7 billion. General consensus is population will top at about 10 billion a few decades from now. The real impact on the planet of this growth in population is the transformation going within the societies of the world’s developing nations. For fifty years North America and Europe, with some Japan, dominated the world’s output and consumption based on their stable middle class populations. That is changing before our eyes. The OECD in 2010 estimated the world’s middle class in 2009 to be about 1.8 billion and projected it to grow to 3.2 billion in 2020 and 4.9 billion in 2030. Almost all of the growth, 85%, is projected to come from Asia. As a percentage of the total middle class, the world’s consumers from the developed world will decline and the world’s consumers from the developing world will dominate. We know from history that energy is a fundamental driver of this growth and prosperity. The result is massive increase in energy demand for the world, perhaps as much as 50 percent higher from today’s levels by 2035. In 2012 the United States will have a presidential election. All the candidates on the Republican side largely poo-poo climate change science and essentially advocate “drill baby drill” to address the United States’ energy needs for the coming decades. President Obama, who came to office with energy as one of the legs of his policy stool, seems to have abandoned energy as a platform position, yet he was so close to a national energy policy in late 2009. And then you complicate the alternative energy discussion with the spectacular California-based venture capital flameout of Solyndra, which had also been backed by the U.S. Government to the tune of $535 million. No national politician is going to go any where near alternative energy as exemplified by solar. They will all say let’s do more of what we are currently doing since it appears to be the least risky course. This all translates to “do nothing!” This is nonsense and fool hearty and is the most risky of choices. Where to from here? The forces that put the United States at a crossroads in 2005 — climate change science, economic needs for new industry, and desire for national security — are as real as ever and must be addressed by our body politic. The world will not stand still waiting for America. In the Silicon Valley and around the country, the entrepreneurial spirit of the great United States went to work over night in the last decade. It is still hard at work on these problems. In the recent past, optimistic entrepreneurs started thousands of energy companies across the spectrum of energy opportunities. These companies were backed by venture capitalist who invested billions of dollars. To date, 23 venture-backed energy companies have gone public and many more are making themselves ready. While some companies do not survive, of course, there are many spectacular examples of winners. Tesla, the electric car company, appeared out of nowhere demonstrating that in America a new car company can indeed be built. Bright Source Energy is building huge utility scale solar power plants on U.S. soil. A123 is building batteries capable of industrial and grid-scale applications. The list goes on and on. America needs to keep doing what it does so well — innovate. Innovation costs money. Venture capital must keep investing in energy startups that make economic sense. Public investors who provide the real growth capital for young companies need to come to the capital markets and buy those stocks. As a key source of innovation funding, the U.S. Government must keep putting R&D dollars into the market through its many programs including ARPA-E. It is this partnership of entrepreneurs, investors, and the U.S. Government that will keep the United States a leader in new energy technologies. My hope is that the new generation of political leaders, young entrepreneurs, and venture capitalists with long-term points of view can rally to the cause of changing America’s energy future. It’s not about being green or not being green. Such labels are deceiving and simple. It’s about being smart, making good investments and working hard. It’s about painting a vision of the future and then investing in that vision and seeing it through. Where do we go from here? My bet is up and to the right.

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Steven Cohen: Sustainability, Politics, and Consumerism

December 28, 2011

As 2011 ends and we find some time for reflection, I am thinking a lot about the issue of material consumption and sustainability. Many of my students believe that a key answer to the crisis of planetary sustainability is for individuals to reduce their material consumption. When they say this, they are not thinking of the planet’s poorest people, but the planet’s richest people. There is a case to be made for seeing the issue of sustainability in these terms, but I’m not sure the issue can or should be confined to a focus on individual consumption. In any case, there is a strong argument for learning how to measure and assess the sustainability of all forms of economic consumption. It is important to understand the power and seductiveness of material consumption and our modern technological way of life. In America, less than one percent of our population works on farms as compared to 40% at the start of the 20th century. Most of us are no longer directly involved in a daily struggle for food, water and shelter. Cheap and plentiful energy has helped make many of us mobile, comfortable, entertained, educated and well-fed. Those at home and around the world who do not share in this bounty, want it. And the root cause of much of the political turmoil in the world can be found in the gap between economic aspirations and realities. America’s wealth and its level of political stability are closely connected phenomena. Presidential elections are won and lost on the degree to which candidates can convince voters that they can create economic growth. During Bill Clinton’s 1992 campaign for president his political advisors constantly reminded him, “it’s the economy, stupid!” Political power and economic growth are closely connected in our system. A great threat to political stability is a situation where young people receive an education and then are unable to find a meaningful way to use what they have learned. They are wide open targets for cynical political manipulation by unscrupulous political leaders. All unemployment is politically destabilizing: of the educated or uneducated, of those young and those no longer young. People without work have less of a stake in society and are less concerned with its breakdown. Work is not simply a source of sustenance in the modern world, but a key part of an individual’s identity. With the population increasing on the planet, reduced consumption could lead to increased unemployment. So in order to assure full employment we need to increase rather than decrease economic consumption. Of course all consumption is not equally sustainable. Downloading an application on your smartphone uses fewer nonrenewable resources than driving to the mall. Borrowing a book from a library uses fewer nonrenewable resources than buying the book from a book store. Moreover, creating an “app” and operating a library both require people and enable them to hold jobs. More and more of our economic production relates to ideas, knowledge and entertainment. Still, we all consume food, clothing, shelter and transportation and those goods require the use of material resources. Material economic production and consumption is non-optional and is growing quickly in China and India and throughout the developing world. How do we ensure that the material consumption we require is sustainable? Is there a chance that we can move from an ecologically destructive, fossil fuel and resource intensive economy to something else? Do people understand the crisis before us? Judging by the American presidential campaign, the answer has to be no. The Obama Administration keeps throwing environmental protection and renewable energy development under the political bus. The Republicans are worse and want to end EPA and continue to outdo each other in thinking of new ways to increase our reliance on fossil fuels. It is a truly terrifying moment when you realize that our political leadership completely misunderstands the connection between environmental protection and economic growth. To these folks, regulations are “job killers” and scientific evidence does not seem to make much of a difference in the national political dialogue. It is difficult to have a meaningful public conversation on the issue of consumption and sustainability when the national political class in the United States still debates environmental issues like it’s 1969. I think that a reduction of economic consumption would destabilize our politics and society. But I think if we do not make the transition to a renewable energy and material-based economy, the reduction in the planet’s ability to produce goods is only a matter of time. The planet’s productive systems are powered by the sun. Ultimately, human productive systems must mirror the planet’s, either through processes powered by the sun such as photosynthesis or through artificial or nuclear suns we create for ourselves. Polluting our air and water to keep the economic machine moving is a short-run and ultimately self-defeating policy. But even if shutting down that machine was politically feasible (and it is not), a shrinking world economy would cause massive human misery. The inevitable conclusion is that the issue of sustainability will eventually reach and even dominate the American political agenda. It will not be defined by a smaller economy, but a different sort of economy: With more resources devoted to preserving the planet and its productive capacity. There is a paradigm shift underway toward a sustainable, renewable economy. You see it in many cities, communities and in a growing number of corporations. Support for sustainability is more common among young people than old people, and it is as much a cultural and social mindset as it is a political motivation. In fact, at this point, the political force of sustainability is latent rather than manifest. But it is coming. At its core will be a new form of consumerism and new modes of production. Production will be more efficient and renewable. Consumers will resist goods and services that are not sustainable. Our political and regulatory institutions will both lead and follow these new realities. Unfortunately, this will not happen during the presidential election year about to start. But it is in our future.

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What’s Causing House Fires From Lightning Strikes?

December 22, 2011

WESTERVILLE, Ohio (AP) — Reports of lightning-related fires and gas leaks in at least a dozen states have raised concerns about the use of flexible gas lines made of corrugated stainless steel tubing and have led to lawsuits, studies and efforts to better track the incidents. Manufacturers have defended the plastic-coated metal tubing, known as CSST, which has become increasingly common in new homes since it was introduced domestically more than two decades ago. Fire officials and researchers are trying to determine whether to blame a faulty product, unsafe installation or something else for the blazes. Four homes caught on fire in central Ohio over a stormy 12-hour period this summer. Genoa Township Fire Chief Gary Honeycutt said he believes lightning struck at or near the homes, and the electrical charge traveled along the CSST before jumping to a less resistant pathway nearby such as a metal ventilation duct. It then punctured a hole the size of a pencil tip in the tubing and created a gas leak that could ignite, he said. One of the fires charred the ceiling in the lowest level of Michael Wagner’s dream home, a two-story property near a country club and golf course in an area where farmland has been turned into neatly manicured neighborhoods of newer homes. “It had been burning the joists much like a blowtorch,” said Wagner, whose family moved into the home a few weeks before the fire and has been displaced for months because of smoke damage. The home passed inspection without problems, they said, but they later learned lightning had struck it and created a gas leak in 2004. Firefighters and gas providers point out that the fires seem to occur with an unusual combination of factors — a newer building that has CSST, a lightning strike in just the right place, the puncture of the tubing and the spark to ignite the gas. Most of the Ohio fires were in the central part of the state, though it’s possible there are others that haven’t been linked to the tubing because the reports didn’t include that detail. “I’d say we’ve got a problem with that product, but it’s very anecdotal evidence that we have,” said state Fire Marshal Larry Flowers, who recently started collecting information about such fires around Ohio. A class-action lawsuit filed in Arkansas against several manufacturers claimed the tubing posed an unreasonable risk of fire from lightning strikes, leading to a 2006 settlement that was worth up to about $29 million, according to a copy of the settlement agreement provided by an attorney not affiliated with the case. Lawyers involved in the case did not respond to messages for comment. And an unresolved wrongful death lawsuit blames a CSST failure for a 2008 blaze that killed three children and their grandmother in rural Jefferson, S.D. “For a homeowner or a business owner, really the problem with the product is it’s very unpredictable when it’s going to fail, and it’s a very difficult product to make safe,” said Mark Utke, a lawyer with the Cozen-O’Connor firm in Philadelphia, which is working on the South Dakota case and dozens more it connects to CSST. Manufacturers say the flexible tubing was developed in Japan as an alternative to rigid gas piping that could break during an earthquake, and hundreds of millions of feet of tubing have been installed in U.S. homes and other buildings. It can cost significantly more than black metal pipe, with one recent estimate putting the cost at 65 cents for a foot of rigid pipe in Ohio and about a dollar more for standard CSST. But the tubing is easier to install and can bend around corners, appearing much like a garden hose affixed to ceiling joists. Both types of lines meet existing product and code requirements, but manufacturers say that CSST is the safer option and that it’s less likely to crack, leak or cause a gas explosion because it doesn’t require as many joints to follow the shape of a building’s interior. “Of course we would like everything in the house to be safe from lightning, but that’s not a requirement,” said Bob Torbin, the director of codes and standards for Exton, Pa.-based Omega Flex Inc., one of the producers targeted in lawsuits. “And so we have to ask ourselves: Does this represent an unreasonable risk compared to other risks that you take when you occupy your home?” That’s a measurement that’s tough to quantify, he said. In response to concerns, Omega Flex stopped offering its earlier CSST product this fall and instead is promoting tubing wrapped in a special covering intended to make it more resistant to lightning strike damage. Some manufacturers and builders say there may be other contributing factors in the tubing fires, including whether gas lines are correctly grounded and bonded, meaning they’re linked into a system that would direct energy from a lightning strike into the earth. The president of the Ohio Home Builders Association said he has used the tubing and has no doubt that it’s a safe product when installed properly. “We have it in our home,” said Bill Owens, who’s also founder and president of Owens Construction in suburban Columbus. “A lot of it is just paying attention to the actual installation requirements and the code requirements associated with safe installation.” In Indiana, officials increased code requirements for bonding and grounding in new homes and expanded the required gap between gas tubing and other metal items to help decrease the risk of a problem. The research foundation affiliated with the National Fire Protection Association, which sets national codes that pertain to construction, is studying how to mitigate any lightning-related dangers of CSST and has sought information from various stakeholders in the discussion, including manufacturers and insurers. “Now that it’s out there, how do we make it safe?” said Mitchell Guthrie, an engineering consultant from Blanch, N.C., who has researched CSST and lightning protection and worked with a panel studying concerns. Iowa Fire Marshal Ray Reynolds said people in the insurance industry have linked the tubing to more than 200 fires in his state over the past two years, and he doesn’t believe proper grounding and bonding is the only solution. He said Iowa has seen some problems with properly bonded systems, and he decided to replace the tubing in his own home with the updated, extra-protected CSST. Wagner, the Ohio homeowner displaced by a fire, said he decided to replace his flexible tubing with rigid lines to help his family feel safer. The American Gas Association, which represents gas providers, doesn’t think CSST is a defective product, but it has helped develop product standards and has supported the industry’s effort to educate the public about concerns and to minimize any dangers. “It’s just a situation that could occur, just like lightning could penetrate a home and damage wiring,” said Jim Ranfone, the AGA’s managing director of codes and standards. “It’s not a panic situation, but it’s one that I would sort of keep tabs on to make sure the system was properly bonded,” he said. ___ Associated Press writer Doug Whiteman contributed to this report. ___ Kantele Franko can be reached at http://www.twitter.com/kantele10.

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Feds Approve New Solar Energy Project

December 21, 2011

PHOENIX — The federal government has approved the Sonoran Solar Energy Project, which will be built on public lands in Arizona’s Maricopa County. Bureau of Land Management officials say it’s the first solar energy project approved on federal public lands in Arizona. The 300-megawatt project is expected to provide enough energy when operating at full capacity to power 90,000 homes. The 2,013-acre project is smaller than what was originally proposed (3,620 acres) and will use a fraction of the water (33 acre/feet a year) than originally envisioned (about 3,000 acre/feet a year). The project site is in the Rainbow Valley east of State Route 85 and south of Buckeye. The area contains wildlife habitat and authorities say burrowing owls will be relocated to other BLM lands.

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Barbara Boxer’s Transportation Bill Would Drop Environmental Criteria In Much-Touted TIFIA Loan Program

December 21, 2011

NEW YORK — A bipartisan transportation bill sponsored by Sen. Barbara Boxer would dramatically expand a federal program that finances “innovative” transportation projects. But in order to secure the expansion of the Transportation Infrastructure Finance and Innovation Act (TIFIA), Boxer had to introduce new rules that would strip away current criteria favoring environmentally sustainable projects, progressive transportation advocates say. Boxer’s transportation bill sailed through the Senate Environment and Public Works committee in an 18-0 bipartisan vote on Nov. 9. But critics say it came at a price for the TIFIA program, which would no longer give environmentally sustainable projects a leg up in the selection process. “At a time when the nation’s transportation system is starved for funds and there is a consensus that dollars need to be spent more wisely, it is outrageous that the one program that would be massively increased would no longer try to deliver the best bang for each buck,” said Phineas Baxandall, a senior analyst at US PIRG, a nonprofit public interest advocacy group. TIFIA has recently been touted by both Democrats and Republicans as an example of how to prop up infrastructure financing in a time of budget deficits. About $110 million a year in federal funds is turned into $1.1 billion in federally-supported loans, which then go a third of the way toward leveraging loans from private sources. Because TIFIA is a loan program, projects have to find some way of paying back the federal government. The revenue stream is most often a toll or other “user fee,” but sometimes it’s something like Los Angele’s 2008 Measure R sales tax . Although TIFIA is run through the Federal Highway Administration, its loans have been used to support everything from toll roads in Texas to light rail in Denver. The only problem: At a time when private financing is hard to come by, everybody wants in on the action. This year there were 34 requests for $14 billion in loans — 14 times more than what the program could support. A lot of cities and states wound up empty-handed. So when the Senate’s Environment and Public Works Committee met to hammer out a deal on a new transportation bill, consensus was quickly reached on vastly expanding the size of TIFIA’s annual funding from $122 million to $1 billion a year. That money could in turn support up to $10 billion in federal loans. It was something of a breakthrough in the transportation world. For years Congress has patched together short-term extensions of the transportation bill. The EPW proposal sponsored by Boxer offers a way out — and, she hopes, a way to finance LA Mayor Antonio Villaraigosa’s dream of building 30 years of transportation projects in a decade. But the bipartisan consensus on the transportation bill appears to have come at a price. One apparent sticking point for Senate Republicans, led by outspoken climate change denier James Inhofe (R-Okla.), the ranking member on EPW, was the 20 percent weight TIFIA puts on “the extent to which the project helps maintain or protect the environment.” That criterion, introduced by the Obama administration, gives mass transit a leg up against toll roads and highways. But it’s anathema to critics like the libertarian Reason Foundation’s Robert Poole, who argued that the emphasis on environmental sustainability “has apparently led to toll projects that add highway capacity getting aced out.” “Senator Boxer’s working in an environment where she’s got to get support from people on the other side of the aisle, and these are the types of issues she’s hammering out,” said Raffi Hamparian, director for federal affairs at the Los Angeles County Metropolitan Transportation Authority. Phineas Baxandall, a senior analyst at U.S. PIRG, said he thinks Boxer may have cut a bad deal. He argues that doing away with TIFIA’s selection criteria means the U.S. Department of Transportation will be forced to give money to any transportation project that meets bare-bones financial eligibility requirements. Under this rolling selection process, when the $1 billion annual federal credit support is gone, it’s gone for the year. Toll roads, backed by private investors looking to make a buck off of “public-private partnerships,” will be first in line, he argued, since they have plans that are “just ready to go off the shelf.” “Those companies are going to likely get the lion’s share of TIFIA funds. And those companies have a lot of power on Wall Street and make a lot of campaign donations, and just have a lot of power,” he said. Los Angeles hopes it will get some of that TIFIA money. Not so fast, Baxandall said. “Places like Atlanta and L.A. are hoping that the new bounty of TIFIA will allow them to finance public transit expansions, but they are likely to find the money already claimed by private toll road projects in places like Florida and Texas.” Others aren’t so sure that mass transit and toll roads are mutually exclusive. Although the selection criterion will be gone, environmentally friendly transportation secretaries will still find ways to make sure sustainable projects head to the front of the line, they argue. A spokesperson who is a staff member of the Senate EPW committee said, “This provision continues to enable the secretary to ensure that each project receives careful consideration. We believe that strong projects will succeed in the new program.” Roy Kienitz, who was until recently the Department of Transportation’s under secretary for policy, said he thought the program’s vastly expanded size might mean there will be plenty of space for all of the projects that meet the eligibility requirements. Although TIFIA was vastly oversubscribed this year, Kienitz said, not all of the applications were truly eligible. “Of the people who are applying, I would say at least half of them fall into the criteria of either a) they just don’t have a realistic idea of a project for a whole host of reasons or b) they may have realistic criteria for a project, but they just haven’t done their homework.” Hamparian, of LA’s Metro, is sure that his city’s project, at the least, will win if TIFIA is expanded. “We’re pretty confident that we’re in a good position to present our project for consideration for TIFIA loans,” he said. “Our bottom line is that we’ve worked very closely with Senator Boxer and we’re very supportive of the final product.” Boxer’s bill is still far from passage. More Senate committees will take a shot at the transportation bill soon, and then the GOP-controlled House will also have its say. Some observers predict the long-awaited arrival of a new transportation bill could simply get pushed off for an additional year in favor of another short-term extension.

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