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A cancelled wind park, soybean prices, and coal ash

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This entry was posted on 8/26/2007 10:42 PM and is filed under Tax Shifting.

One cannot turn around without facing another story about the woes of our energy predicament.  Phasing in a federal tax shift from income to non-renewable energy will solve these problems.  Here are three articles from the last three days.

   1) LIPA chief kills wind farm project  (http://www.newsday.com/business/ny-bzwind0824,0,7647935.story) - Newsday

Increasing non-renewable energy via a tax shift would make projects like this more economically viable.  Regardless of some good intentions (see quote), we live in a capitalistic society so it boils down to dollars and cents --> "LIPA chief executive Richard Kessel, while acknowledging cost issues with the project and agreeing with Law's assessment, Thursday challenged opponents to come up with something better.  'If you can find a renewable energy project that's viable, that can be sited and is cheaper than this, then I think LIPA should do it,' he said. 'But if not, than I think LIPA needs to come back to this project and do it.'"

From the consulting firms study - "the 'overall lack of a well-defined national energy policy to support these kinds of projects.'"  This is our main problem - poor leadership from our elected representatives to address these serious problems.


   2) Soybean price jump fueled by biodiesel - USA Today

Soybean prices have increased 55% in the last 12 months - from $5.42 per bushel to $8.42 per bushel.  It's communism"Growth took off after Congress granted a production subsidy that took effect in 2005."  Since when does Congress know better than the market which technologies are the most promising?  What about dealing with unintended consequences?

"The alternative-fuel revolution is driving prices of another energy-producing crop to near-record levels.  ....the percentage of soybean oil production being turned into fuel is expected to be 12% for the fiscal year ended Sept. 30, up from 8% last year and 2% the year before that."


   3) Coal plants' cleanup may create side-effect - Associated Press and The Ledger

A federal tax shift from income to non-renewable energy sources (such as coal) would mean that more energy would come from renewable sources and we'd have fewer serious problems like this -

"As the nation's coal-fired power plants work to create cleaner skies, they'll likely fill up landfills with millions more tons of potentially harmful ash."

"Coal ash naturally contains arsenic and mercury, and if the elements leach into groundwater they can contaminate drinking supplies. The EPA says ash disposed of in landfills could pose significant risks when mismanaged, and there are gaps in state regulation."

"But the EPA is pushing power companies to cut emissions of the sulfur dioxide and nitrogen oxides, which add to smog and acid rain and contribute to thousands of premature deaths, asthma and other respiratory ailments. A large portion of those emissions come from coal plants, the EPA says."

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Comments

    • 9/2/2007 11:33 AM Jim Blair wrote:
      Hi,

      Today's Wisconsin State Journal Sunday Forum (Sept 2, 2007) has a column about how local governments are blocking proposed wind farms by imposing various restrictions that cannot be met. While the state government passes laws requiring ever more energy to be produced from "renewable" sources, local governments act to make that impossible.

      And also, the article has a picture of the largest wind farm in Wisconsin, the 20 turbines in Iowa county. Note that they are all lined up in a row along highway 18 on an east-west axis. Thus they are more for show, easily seen by drivers, than for efficient use. Wind turbines, like sailboats or even bicycles, cast "wind shadows". These are only efficient if the wind is due north or south. For an east or west wind, all but the end turbine is directly down wind of others. Given the variability of the wind here, turbines need to the scattered such that none shadows others no matter the wind direction. This requires a wind farm to cover a much larger area than if the wind direction was predictable.
      Reply to this
      1. 9/3/2007 12:29 AM Paul Riehemann wrote:

         

        Thanks for sharing this info and your comment.

        The problem is that we don't have a federal energy policy that causes the  market to internalize (account for) all the costs of non-renewable energy sources such as fossil fuels and nuclear energy.  For example, are the full costs of global warming, air pollution, two wars for oil, and the long-term storage of nuclear waste included in the price you pay for electricity, gasoline, and natural gas?

        A clear "no" to all four.  My opinion that the Iraq war was started because of oil alone is based on three facts:
          
           1) There was NO Iraq/Al Qaeda connection before we invaded Iraq;
           2) The U.N. and Hans Blix were given UNPRECEDENTED ACCESS to Iraq in their search for weapons of mass destruction just before we started the war;
           3)  Other peoples are worse off in other areas of the world (Darfur for example), yet our government does little or nothing to help them.

        Based on number 3, "Desert Storm" was started because of oil too.  The costs of these two wars:

        Iraq
           -  coalition soldiers lives (as of today, 4,035 including 3,737 Americans);
           -  reported Iraqi civilian deaths (depending on your source either over 600,000 (New York Times article) or over 77,500 (iraqbodycount.net));
           -  loss of limbs and other wounds (physical and mental);
           -  dollars (over $448 b illion and climbing).

        Gulf War
           -  coalition soldiers lives (estimated over 350)
           -  Iraqi civilian deaths (estimated 2,300)
           -  loss of limbs and other wounds (physical and mental);
           -  dollars ($61 b illion).

        Please let me know if you can come up with a way to internalize (account for) the cost of human lives lost, the past pain and suffering, the current pain and suffering, and the pain and suffering that will occur in the future.  I'm getting nauseous just typing this.

        For dollars:
          $448 b illion to-date for the Iraq war  +  $61 b illion for the Gulf War  =  $509 b illion total to-date.

        Divide this by the 303 million Americans alive today........ the cost:  $1,680 for each man, woman, and child.  $6,720 for a family of four.  It will actually be much more than this because of the interest.

        INCLUDE THESE COSTS AND THEN SEE WHICH TYPE OF ENERGY YOU WANT TO USE.

        ****************************

        Unfortunately, I believe that the bumper sticker quote - "Who put our oil under their sand?" rings true for many war supporters, they just won't admit it.

        For nuclear waste disposal, we have NO IDEA what it will cost (since we have no long-term storage) so how can it be included?


        Reply to this
    • 9/3/2007 9:08 AM Jim Blair wrote:
      Hi,

      Two comments:

      WHile Gulf War I was over oil (Iraq invaded Kuwait over its lowering of its oil price), Gulf War II was ideological.

      Bush wanted to transform the Middle East into a showplace for Democracy starting with Iraq. We were already getting oil from them. Remember "oil for food"? Actually "oil for palaces", but we didn't care what Saddam did with the money (or his people), so long as we got the oil

      And you say there is no way to know the cost of disposing of nuclear reactor "waste"? But the "cost" of reprocessing it into new fuel can be estimated by looking at how others (France or Russia for example) are currently doing it. Note that France has the cheapest electricity in Europe.


      At any rate the industry has already collected some 30 billion dollars for that disposal from ratepayers. So its not that nuclear isn't collecting for its disposal problem, unlike coal or gas.
      Reply to this
      1. 9/5/2007 11:54 PM Paul Riehemann wrote:

        Gulf War II was also started over oil (control) - see the three facts above that support this conclusion.


        The nuclear questions raised have already been addressed in several entries and comments.
        Reply to this
    • 9/8/2007 10:22 PM Jim Blair wrote:
      Paul Riehemann wrote:

      "Gulf War II was also started over oil (control) - see the three facts above that support this conclusion.....

      1) There was NO Iraq/Al Qaeda connection before we invaded Iraq;
      2) The U.N. and Hans Blix were given UNPRECEDENTED ACCESS to Iraq in their search for weapons of mass destruction just before we started the war;
      3) Other peoples are worse off in other areas of the world (Darfur for example), yet our government does little or nothing to help them."

      Hi,

      While I agree with your 3 facts, they have nothing to do with the price of, or "control" over oil.

      Before the March 2003 invasion of Iraq, the Iraqi oil was being pumped and sold on the world market under the so-called "Oil for Food" scheme.

      It has been SINCE the invasion that Iraqi oil exports have been reduced. If oil was the motive, we would have let Saddam continue to sell it to us.

      Bush was not content to get the oil, he wanted to transform the Middle-East for ideological reasons. As you say, if the goal had been to "help those worse off" there are plenty of better places to start, including Darfur.

      Note that the "oil addiction" of the West is double edged. Just as we are addicted to buying it, the oil exporters are addicted to selling it. If we someday develop a better energy source (hydrogen fusion for example) and stop buying oil, Hugo Chavez and some Arab sheiks will accuse us of destroying their economy. And they will be right. And it can't happen soon enough
      Reply to this
      1. 9/9/2007 8:28 PM Paul Riehemann wrote:

        Respectfully, I completely disagree with your statement that the 3 facts "have nothing to do with the price of, or 'control' over oil."  It's all about the control of oil.  Regardless of "Oil for Food" in the past...it's about the future.

        Yes, since the invasion Iraqi exports have been reduced.  Let's just say Iraq has not worked out as the Bush administration thought it would.

        Sure, "transform the Middle-East for ideological reasons" - that was a (small) component.  Oil was/is it.

        Yup, there's a double addiction going on.  First one to reduce, "wins."  Truth is....they are working on it and it's taken discipline on their part - it's called OPEC.  Meanwhile our energy policy is akin to a bunch of teenagers that just got the keys to their parents Hummer (with a credit card in Junior's name in the glove box).

        Reply to this
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