Climate Bill Is a Misnomer

It’s really a Nuclear Energy-Promoting, Oil Drilling-Championing, Coal Mining-Boosting Gift to Polluters

Via Public Citizen

Statement of Tyson Slocum, Director of Public Citizen’s Energy Program

After half a year of delay, Sens. John Kerry (D-Mass.) and Joe Lieberman (I-Conn.) are set to release their nuclear energy/cap-and-trade bill today. Until we see legislative text, we can comment only on the broad outline made available yesterday and an additional summary being circulated among legislative staff.

It’s not accurate to call this a climate bill. This is nuclear energy-promoting, oil drilling-championing, coal mining-boosting legislation with a weak carbon-pricing mechanism thrown in. What’s worse, it guts the Environmental Protection Agency’s (EPA) current authority to regulate greenhouse gases as pollutants under the Clean Air Act.

Here’s our take on what we know is in the new bill:

Nuclear Power Incentives

At its core, this legislation is all about promoting nuclear power and handing taxpayers the bill. Consider:

- Sections 1101 and 1105 would prioritize the needs of nuclear power corporations over the rights of citizens to have full, public hearings about the risks and dangers of locating nuclear power plants in their communities.

- Section 1102 increases loan guarantees primarily for nuclear power to a jaw-dropping $54 billion. These loans are a terrible deal for the taxpayer, especially considering the high risk of default that even the government acknowledges.

- Section 1103 provides $6 billion in taxpayer-subsidized risk insurance for 12 new nuclear reactors.

- Section 1121 allows nuclear power plant owners to write off their depreciation much faster. Section 1121 provides a 10 percent investment tax credit for new reactors.

- Section 1123 extends the Advanced Energy Project credit to nuclear reactors.

- Section 1124-6 allows municipal power agencies to derive certain tax, bond and grant benefits from investing in nuclear power.

Oil
Apparently oblivious to the ongoing disaster in the Gulf of Mexico, the legislation expands offshore drilling. In fact, all new offshore drilling, leasing and permitting should be halted.

Section 1202 allows states to keep 37.5 percent of oil and gas royalty money. That’s like saying because more rich people live in California and New York compared to Mississippi and New Mexico, those higher-income states should be able to keep more federal dollars raised from income taxes. Royalty revenue sharing is patently unfair – especially because the disaster in Gulf shows that an oil spill does not respect state boundaries.

Coal
Section 1412 establishes a carbon tax paid by ratepayers and collected by utilities to fund carbon capture and storage (CCS) – with no money allocated to rooftop solar or energy efficiency investments. Section 1431 will provide valuable emissions allowances for free to coal utilities pursuing CCS – an untested, risky strategy that benefits the coal industry and is gobbling up a lion’s share of subsidies that otherwise could go to renewable energy development.

Merchant coal power plants (whose rates are not regulated) will get roughly 5 percent of the free allowances, which will provide opportunities for them to gouge consumers.

And while the nuclear and coal industries will receive a lot of taxpayer money and loan guarantees, Section 1604 states that “voluntary” renewable energy markets are “efficient and effective programs” and states that “the policy of the United States is to continue to support the growth of these markets.” This is backward: Renewable energy should be getting the guarantees, rather than the coal and nuclear industries.

Offsets
The legislation allows entities to “reduce” their domestic greenhouse gas emissions by purchasing offsets from projects located in the U.S. and around the world. The recent offset crisis in Europe, where the offset market collapsed due to fraud, underscores the lack of accountability and transparency with offsets.

Consumer Protections
Rather than follow President Barack Obama’s cap-and-dividend plan, which would have required polluters to pay and would have distributed 80 percent of the money directly to families through the Making Work Pay tax credit, or the Cantwell-Collins CLEAR Act, which calls for distributing monthly checks to households, the Kerry-Lieberman approach relies on distributing valuable free allowances to utilities from 2013-2029, then requiring that utilities use the money “exclusively for the benefit of the ratepayers.” But Congress won’t be defining “benefit”; rather, 50 different state utility commissions will. Some will do a great job, but most will allow utilities to structure expensive energy efficiency programs that benefit shareholders more than ratepayers.

Wall Street
It appears that Wall Street may not have gotten everything it wanted – yet. The legislation appears to incorporate elements of S.1399, sponsored by Sen. Dianne Feinstein (D-Calif.), which creates an Office of Carbon Market Oversight at the Commodities Futures Trading Commission (CFTC), giving the agency authority to regulate spot and futures emission markets. It requires all entities seeking to trade emissions derivatives to register and be approved by the CFTC, and all transactions must be cleared through a CFTC-regulated Carbon Clearing Organization. This is a good start to ensure that Wall Street plays no role in gambling on climate policy.

Danger remains, however, in creating carbon trading markets open to non-energy producers. Strong regulations in place today may be easily subverted tomorrow, leaving Wall Street positioned to control our climate future.

Conclusion
The Kerry-Lieberman bill represents a missed opportunity. By meeting behind closed doors, the lawmakers empowered corporate polluters to play an oversized role in influencing the legislation to the detriment of the climate and consumers. President Obama had it right when he successfully campaigned on a theme of making polluters pay and delivering benefits directly to households.

We need a bill that does not incentivize failed and dangerous technologies like nuclear power and does not enrich utilities at the expense of consumers.

Public Citizen is a national, nonprofit consumer advocacy organization based in Washington, D.C. For more information, please visit www.citizen.org.

As citizens and consumers we need to let out legislators know that we need tighter regulation to protect our environment and absolutely no handouts to the oil, gas, coal, nuclear energy or money industries. Let them work for their money as they demand all of us to work for ours.

What You Don't Know About Shrimp

The environmental impact of shrimp can be horrific. But most Americans don't know where their shrimp comes from or what's in it.

Jill Richardson at AlterNet tells us "Shrimps Dirty Secrets: Why America's Favorite Seafood Is A Health And Environmental Nightmare."

Americans love their shrimp. It's the most popular seafood in the country, but unfortunately much of the shrimp we eat are a cocktail of chemicals, harvested at the expense of one of the world's productive ecosystems. Worse, guidelines for finding some kind of "sustainable shrimp" are so far nonexistent.

The environmental impact of shrimp can be horrific. But most Americans don't know where their shrimp comes from or what's in it.

In his book, Bottomfeeder: How to Eat Ethically in a World of Vanishing Seafood, Taras Grescoe paints a repulsive picture of how shrimp are farmed in one region of India. The shrimp pond preparation begins with urea, superphosphate, and diesel, then progresses to the use of piscicides (fish-killing chemicals like chlorine and rotenone), pesticides and antibiotics (including some that are banned in the U.S.), and ends by treating the shrimp with sodium tripolyphosphate (a suspected neurotoxicant), Borax, and occasionally caustic soda.

Upon arrival in the U.S., few if any, are inspected by the FDA, and when researchers have examined imported ready-to-eat shrimp, they found 162 separate species of bacteria with resistance to 10 different antibiotics. And yet, as of 2008, Americans are eating 4.1 pounds of shrimp apiece each year -- significantly more than the 2.8 pounds per year we each ate of the second most popular seafood, canned tuna. But what are we actually eating without knowing it? And is it worth the price -- both to our health and the environment?

What Does This Mean?

Understanding the shrimp that supplies our nation's voracious appetite is quite complex. Overall, the shrimp industry represents a dismantling of the marine ecosystem, piece by piece. Farming methods range from those described above to some that are more benign. Problems with irresponsible methods of farming don't end at the "yuck," factor as shrimp farming is credited with destroying 38 percent of the world's mangroves, some of the most diverse and productive ecosystems on earth. Mangroves sequester vast amounts of carbon and serve as valuable buffers against hurricanes and tsunamis. Some compare shrimp farming methods that demolish mangroves to slash-and-burn agriculture. A shrimp farmer will clear a section of mangroves and close it off to ensure that the shrimp cannot escape. Then the farmer relies on the tides to refresh the water, carrying shrimp excrement and disease out to sea. In this scenario, the entire mangrove ecosystem is destroyed and turned into a small dead zone for short-term gain. Even after the shrimp farm leaves, the mangroves do not come back.

A more responsible farming system involves closed, inland ponds that use their wastewater for agricultural irrigation instead of allowing it to pollute oceans or other waterways. According to the Monterey Bay Aquarium's Seafood Watch program, when a farm has good disease management protocols, it does not need to use so many antibiotics or other chemicals.

One more consideration, even in these cleaner systems, is the wild fish used to feed farmed shrimp. An estimated average of 1.4 pounds of wild fish are used to produce every pound of farmed shrimp. Sometimes the wild fish used is bycatch -- fish that would be dumped into the ocean to rot if they weren't fed to shrimp -- but other times farmed shrimp dine on species like anchovies, herring, sardines and menhaden. These fish are important foods for seabirds, big commercial fish and whales, so removing them from the ecosystem to feed farmed shrimp is problematic.

Additionally, some shrimp are wild-caught, and while they aren't raised in a chemical cocktail, the vast majority is caught using trawling, a highly destructive fishing method. Football field-sized nets are dragged along the ocean floor, scooping up and killing several pounds of marine life for every pound of shrimp they catch and demolishing the ocean floor ecosystem as they go. Where they don't clear-cut coral reefs or other rich ocean floor habitats, they drag their nets through the mud, leaving plumes of sediment so large they are visible from outer space.

After trawling destroys an ocean floor, the ecosystem often cannot recover for decades, if not centuries or millennia. This is particularly significant because 98 percent of ocean life lives on or around the seabed. Depending on the fishery, the amount of bycatch (the term used for unwanted species scooped up and killed by trawlers) ranges from five to 20 pounds per pound of shrimp. These include sharks, rays, starfish, juvenile red snapper, sea turtles and more. While shrimp trawl fisheries only represent 2 percent of the global fish catch, they are responsible for over one-third of the world's bycatch. Trawling is comparable to bulldozing an entire section of rainforest in order to catch one species of bird.

What Can We Do?

Given this disturbing picture, how can an American know how to find responsibly farmed or fished shrimp? Currently, it's near impossible. Only 15 percent of our total shrimp consumption comes from the U.S. (both farmed and wild sources). The U.S. has good regulations on shrimp farming, so purchasing shrimp farmed in the U.S. is not a bad way to go. Wild shrimp, with a few exceptions, is typically obtained via trawling and should be avoided. The notable exceptions are spot prawns from British Columbia, caught in traps similar to those used for catching lobster, and the small salad shrimp like the Northern shrimp from the East Coast or pink shrimp from Oregon, both of which are certified as sustainable by the Marine Stewardship Council. However, neither are true substitutes for the large white and tiger shrimp American consumers are used to.

The remaining 85 percent came from other countries and about two-thirds of our imports are farmed with the balance caught in the wild, mostly via trawling. China is the world's top shrimp producer -- both farmed and wild -- but only 2 percent of China's shrimp are imported to the U.S. The world's number two producer, Thailand, is our top foreign source of shrimp. Fully one third of the shrimp the U.S. imports comes from Thailand, and over 80 percent of those shrimp are farmed.

The next biggest sources of U.S. shrimp are Ecuador, Indonesia, China, Mexico, Vietnam, Malaysia and India. Together, those countries provide nearly 90 percent of America's imported shrimp. Interestingly, Ecuador's shrimp industry exists almost entirely to supply U.S. demand, with over 93 percent of its shrimp coming up north to the U.S. The vast majority of those shrimp (almost 90 percent) are farmed. Sadly, shrimp production is responsible for the destruction of 70 percent of Ecuador's mangroves. Farming practices in other countries range from decent to awful, but there's currently no real way for a consumer to tell whether shrimp from any particular country was farmed sustainably or not.

Geoff Shester, senior science manager of Monterey Bay's Seafood Watch, says that ethical shrimp consumption is a chicken and egg problem. On one hand, the solution is for consumers to show demand for responsibly farmed and wild shrimp by eating it but on the other hand, ethical shrimp choices are not yet widely available. Seafood Watch is working with some of the largest seafood buyers in the U.S. to help them buy better shrimp, but it's currently a major challenge.

The first challenge is that labeling and certification programs do not yet exist to identify which farmed shrimp meet sustainable production standards. The second challenge is that even when such programs are in place, the U.S. demand will likely greatly exceed their supply.

Shester's advice to consumers right now is "only buy shrimp that you know comes from a sustainable source. If you can't tell for sure, try something else from the Seafood Watch yellow or green lists." Knowing that many will be unwilling to give up America's favorite seafood, he advocates simply eating less of it and keeping an eye on future updates to the Seafood Watch guide to eating sustainable seafood.

If you are a vegan or if you are Kosher than this is not a problem. But if you do want to eat shrimp, at least understand the situation. Find out where your shrimp comes from and how they are raised. It will help the environment as well as your body.

Greenhouse Gas Pollution is a Serious Problem

Via NYT:

The Environmental Protection Agency on Friday formally declared carbon dioxide and five other heat-trapping gases to be pollutants that endanger public health and welfare, setting in motion a process that will lead to the regulation of the gases for the first time in the United States.

The E.P.A. said the science supporting the proposed endangerment finding was “compelling and overwhelming.” The ruling initiates a 60-day comment period before any proposals for regulations governing emissions of heat-trapping gases are published.

Although the finding had been expected, supporters and critics said its issuance was a significant moment in the debate on global warming. Many Republicans in Congress and industry spokesmen warned that regulation of carbon dioxide emissions would raise energy costs and kill jobs; Democrats and environmental advocates said the decision was long overdue and would bring long-term social and economic benefits.

The E.P.A. administrator, Lisa P. Jackson, said: “This finding confirms that greenhouse gas pollution is a serious problem now and for future generations. Fortunately, it follows President Obama’s call for a low-carbon economy and strong leadership in Congress on clean energy and climate legislation.”