The Right View on Environmental & Energy Policy

Leo P. DombrowskiSanchez Daniels & Hoffman LLP

Chicago Bar AssociationSeptember 27, 2012

“Nationally, average ozone levels declined in the 1980's, leveled off in the 1990's, and showed a notable decline after 2002.”

“Nationally, average SO2 concentrations have decreased substantially over the years.”

“Nationally, average PM concentrations have decreased over the years.”

“Nationally, average NO2 concentrations have decreased substantially over the years.”

CHANGES IN AMBIENT AND EMISSIONS LEVELS

Ambient Emissions

Pollutant Ambient Emissions

Carbon Monoxide (CO) -79% -58%

Ozone* (O3) -28% -49%

Lead (Pb) -92% -96%

Nitrogen Oxides (NOx) -52% -40%

Particulates (PM10) -38% -46%

Fine Particulates (PM2.5)

-21% -36%

Sulfur Dioxide (SO2) -83% -56%

* The emission measure here is volatile organic compounds (VOCs), a principal

ozone precursor Source: EPA

AIR QUALITY SUCCESSES

• The improvement in air quality is the greatest public policy success story of the last generation.

• Almost the entire country has achieved clean air standards for four of the six criteria pollutants, with exception of ozone and particulates.

• With ozone and particulates, the areas of the nation with the highest pollution levels have shown the greatest improvement.

AIR QUALITY SUCCESSES

• The chief factor—technology. • Regulations also play important role in

innovations, but many are result of market forces and economic growth.

• EPA’s computer models predict 60% decline in emissions from cars and trucks over next 20 years from fleet turnover.

OBAMA’S EPA

• GHG Regulations—have to use commercially unavailable carbon capture technology.

• Mercury and Air Toxics Rule (Utility MACT) and Cross State Air Pollution Rule

• New Ozone Standards--$90 billion in costs and would force 450 counties into non-attainment

• Boiler MACT.

LOSS OF POWER

OBAMA’S EPA

• Costs too high for little or no benefit.• EPA applies “No-Threshold” Standard—all

emissions cause health effects at any level.• Should use “health-based” standard,

recognizes that a level exists below which exposure does not pose health risk.

ENERGY POLICY

• According to the Congressional Research Service, U.S. has most fossil fuel resources of any country, but most of these resources are off-limits due to federal policies.

• Our energy resources, along with expected future discoveries, have been calculated to last us 400 years at current usage rates.

ENERGY POLICY

ENERGY POLICY

• Restrictions on development of oil, natural gas, and coal have created energy shortage over last 40 years.

• Obama’s/EPA’s War on Coal: “What I’ve said is that we would put a cap and trade system in place that is as aggressive, if not more aggressive, than anybody else’s out there. So if somebody wants to build a coal-powered plant, they can; it’s just that it will bankrupt them because they’re going to be charged a huge sum for all that greenhouse gas that’s being emitted.”

• “Somehow we have to figure out a way to boost the price of gasoline to levels in Europe.” [$9-$11/gal.] Steven Chu—Secretary of Energy

ENERGY POLICY

• Obama rescinded Bush executive order permitting drilling on continental shelf.

• Secretary of Interior Ken Salazar cancelled oil and gas leases on federal lands.

• Restricted offshore drilling leases.• Made more federal land designated

wilderness areas and off limits.• Blocked Keystone Pipeline.

KEYSTONE PIPELINE/SPILLAGE?

NATURAL GAS

• Natural gas production is booming on state and private lands, but total production on federal land has fallen more than 30 percent over the last decade.

• Proportion of gas produced on federal land has fallen from 35 percent in 2003 to just above 20 percent today.

• Fracking regulations after election?

NATURAL GAS

SOURCES OF ELECTRICITY

• COAL 42.2%• NATURAL GAS 24.8%• NUCLEAR 19.2%• HYDROELECTRIC 7.9%• WIND 2.9%• BIOMASS 1.4%• PETROLEUM 0.7%• GEOTHERMAL 0.4%• SOLAR 0. 04%

SOURCES OF ALL ENERGY

ENERGY SUBSIDIES

• Total federal subsidies in 2010 were :• For solar power, $775.64 per megawatt hour• Wind $56.29• Nuclear $3.14• Hydroelectric power $0.82• Coal $0.64 • Natural gas and petroleum liquids $0.64.• Electricity costs around $100 per megawatt hour

TOO MUCH LAND

THE MYTH OF “GREEN JOBS”

• 2011 study by the Brookings Institution—more green jobs, 2.7 million (Clean Economy), than jobs in fossil fuel industry, 2.4 million.

• 24,294 jobs in wind power (0.9%) and 24,152 jobs in solar power (0.89%).

• Two largest categories of “green jobs” are Waste Management and Treatment (386,116) and Public Mass Transit (350,547) (27% of total). Organic Food and Farming adds 129,956.

80 BY 50

• To meet greenhouse gas stability target—80% reduction in CO2 emissions by the year 2050 by the whole world.

• Reduce fossil fuel use in U.S. to 1910 level, when country had population of 92 million, and was about 2% of today’s economy.

• By 2050 U.S. will have 400 million people—meeting emissions reduction target means per capita emissions would be 2.4 tons of CO2.

• Haiti? Somalia?

ENVIRO CRIMES

• Silent Spring by Rachel Carson.• “Chemophobia”; led to ban of DDT in late

1960s.• Complete ban unnecessary; contributed to

deaths of millions from malaria in developing world.

• Never a human carcinogen; damage to wildlife can be mitigated through careful use.

ENVIRO CRIMES

• WHO/ NYT editorial page have called for reintroduction of DDT in the developing world.

• Use of DDT eradicated malaria in U.S. • Why deny the developing world the same

tools?

ENVIRO CRIMES

• NYT’s Tina Rosenberg 2004 article “What the World Needs Now Is DDT”

• Rosenberg: “In her 297 pages, Rachel Carson never mentioned the fact that by the time she was writing, DDT was responsible for saving tens of millions of lives, perhaps hundreds of millions.”

• “DDT killed bald eagles because of its persistence in the environment. Silent Spring is now killing African children because of its persistence in the public mind.”

ENVIRO CRIMES

• WHO: between 250,000 to 500,000 children become blind every year due to vitamin A deficiency, half die within a year of becoming blind.

• Golden Rice—genetically modified form of rice that contains beta-carotene. BC is converted to vitamin A; important for eyesight, immune system, and general good health.

• Developed in 1998; numerous studies show golden rice can eliminate vitamin A deficiency.

ENVIRO CRIMES

• Greenpeace and its allies have successfully blocked the introduction of golden rice, claiming it may have “environmental and health risks.” Pandora’s Box! Trojan Horse!

• Greenpeace co-founder Dr. Patrick Moore called it “Greenpeace's Crime Against Humanity.”