Hello Folks
Welcome to all those who have recently signed up. This newsletter is dedicated to raising the level of awareness of environmental issues, making sure environmental issues are a part of public discourse, and making sure that we elect candidates that will address these issues.
ISSUES:
Two of the greatest challenges that face our country, and indeed the world, in the 21st century are associated with the use of fossil fuels.
As the of standard of living in emerging economies such as those of India and China continue to rise, the demand for the world's dwindling resources such as oil and gas will continue to increase. Prices will continue to increase. And, the future will belong to those who can find sustainable energy solutions.
After eight years of denial and retrenchment, by the Bush administration the next president will have much to do to make up for lost opportunity.
NASA scientist, Dr.James Hansen, considered the U.S.' leading climate
scientist, is concerned about the consequences of climate change due to
global warming and has been vocal about the Bush Administration's efforts
to restrict his public comments on global warming. He says,
We have ten years - not ten years to decide upon action, but ten years
to alter, fundamentally, the trajectory of global greenhouse emissions.
SOLUTIONS: (held up by obstructionist Republicans)
(1) Global Warming
In the second week of June, the Lieberman-Warner Climate Security Act was brought to the Senate floor for discussion (S3036). The bill is a major piece of global warming legislation that sets up a cap-and-trade system for reducing greenhouse gas emissions. Environmentalists are luke-warm on this bill but they were urging Congress to debate the issue and encouraging Senators to strengthen the bill and pass strong climate legislation. There is widespread agreement that Global Warming is a problem that we cannot afford to ignore. Even if you have doubts about global warming, there are a whole host of other reasons why we need to wean ourselves off of fossil fuels. Accepting this challenge will spur innovation and create good jobs in growth industries here in America.
John Cornyn says he is for clean air and sort of thinks that we should consider doing something about global warming (maybe someday). But he continues to make the argument that doing so will increase costs at a time when gas at the pump is about $4.00 per gallon. Perhaps under the influence of Texas oil lobbyists, or, perhaps under his own cognition, he seems to believe that we can drill our way to energy security.
Watch Cornyn video here:
http://youtube.com/watch?v=Z3pP0PUDJss
This would not be true even if the run-up of oil prices in the last year was due to supply vs demand. According to the EIA, the United States produces 10% of the world's supply of oil and consumes 24%. This should tell us that we have a lot more leverage on the demand side than on the supply side. And with only 5% of the worlds population, we certainly can't claim to be doing our part to conserve.
But in fact, the recent run-up in oil prices has less to do with supply vs demand than it has to do with the falling US dollar and with runaway speculation in commodity markets. It has more to do with corporate investments in emerging markets, consumer appetite for imported goods, Bush borrow and spend economics (war in Iraq), and Congress' failure to close the Enron loophole that allows excessive low-margin trading in commodities.
Washington Post: Investor's Growing Appetite for Oil Evades Market Limits
Financial Post: Top U.S. oil market regulator on hot seat
Dubuque Iowa Telagraph Herald: Public paying high price for deregulation
Meaningfull discourse on the Lieberman-Warner global warming bill never happened. Republicans used delaying tactics to suppress meaningful discussion. As usual Texas Senators were a part of it. Senator Hutchison voted against the cloture motion to proceed. Senator Cornyn was absent but indications are that he would have voted against it as well.
Sierra Club Statement: Shameful Obstructionism Stymies Climate Bill
We can have disagreements about solutions but refusing to acknowledge problems or refusing to talk about them will not make them go away. Instead of being part of the solution, Texas is forced to remain part of the problem. In the meantime 38 other states have either taken action to develop their own carbon trading markets or are participating in regional efforts to do so. Most likely there will eventually be some federal action on carbon trading. These other states will have gained experience, developed the companies that make the markets work, and we will be playing catchup.
(2) Consumer Relief and Incentives for Renewable Energy:
The next week there were two bills introduced in the Senate that attempt to address these issues - the Consumer First Energy Act (S 3044) and the Renewable Energy and Job Creation Act of 2008 (H.R. 6049).
The first was to repeal tax breaks for oil and gas and to divert some of the "windfall profits" to renewables and consumers.
Just as we can't borrow our way to financial security, we can't drill our way to energy security. Environmentalists have been saying for years that its not the "economy or the environment" but the "economy and the environment". There are many reasons why we need to shift from a highly polluting unsustainable fossil fuel economy to a clean, renewable energy future. There are numerous studies that show that fostering the growth of clean, renewable energy industries will be a net benefit to the economy, both in the short and the long term. In doing so, we will also have a better chance to dodge the most egregious consequences of the global warming bullet should it come our way.
The second was to extend tax breaks for renewables and attempt to close some loopholes regarding hedge fund investments.
One way to stimulate renewable energy production would be to extend existing tax credits the renewables industry says are critical to sustain its growth this year and next. While wind energy related construction in Texas has been on the rise, some wind and solar power producers are now seeing investors pull back and they expect many projects to be canceled if the tax credits passed in 2005 are not extended soon.
Unfortunately bringing these bills to the floor required 60 votes. Our Senators both voted against bringing these up for discussion. The following articles tell the story
Gristmill:
"No renewal for renewables"
Sierra Club Statement:
Senate Minority Sides With Big Oil Amidst Skyrocketing Gas Prices
There is still a chance that Congress will extend the credits in time to keep things going, but according to the following article in the silicon valley newspaper, the San Jose Mercury news, things don't look too promising.
SanJose Mercury News:
"Tax credit stalemate in Congress"
Best regards
Bob Fusinato
[Send questions, comments, or suggestions to BobFusinato@tx.rr.com]
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