Constitutionality of Renewable Energy Mandates in Question

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In a potentially crushing strike against advocates for renewable energy mandates, a federal court ruling recently raised the issue of constitutionality of major provisions of many states’ renewable energy mandates.



On June 7, 2013, U.S. Circuit Court of Appeals upheld the Federal Energy Regulatory Commission’s (FERC) position against the state of Michigan (and other petitioners) in a disagreement over FERC’s proposal to distribute costs for new power lines to supply millions of megawatts of wind power in the Great Lakes area.  Michigan believes that this plan would, in essence, require them to pay for expensive new power lines intended for transmitting renewable energy out of the state. Based on the law establishing Michigan’s 2008 Renewable Energy Standard, only renewable energy generated inside its state borders is qualified to fulfill Michigan’s obligation to utilize 10% of eligible renewable energy sources by 2015.



Speaking for the Court, Judge Richard Posner ruled:



“Michigan’s first argument—that its law prohibits it from crediting wind power from out of state in favor of the state’s obligated use of renewable energy by its utilities—trips over an unbreakable constitutional precedence. Michigan cannot, without violating Article I of the commerce clause of the Constitution, discriminate against out-of-state renewable energy (emphasis added).”



Thirty states, including the District of Columbia, have mandates on renewable energy that require electric companies to purchase a certain quota or percentage of renewable energy by a projected year. Just like Michigan which has a clear ban on wind produced in other states from being allowed into their mandate, other states also “discriminate” against out-of-state renewable power. When counting mandate compliance, several states count in-state power at a higher rate than out-of-state power, a practice popularly labelled as “multipliers”:

Delaware has a 300% credit multiplier for customer-sited, in-state photovoltaic (PV), a 350% multiplier for a specific offshore wind project, and a 150% multiplier for all other in-state wind projects;
Colorado applies a 1.25 multiplier for its in-state generation;
Michigan provides an extra 0.1 credit for projects that use state-available components and its local workforce;
Missouri grants a 1.25 multiplier for all in-state generation.
Kansas uses a 1.1 multiplier for all in-state resources;
Moreover, some state renewable policies have a list of renewable energy grades, where certain power sources can only be utilized to fulfill a part of the mandate.  Others have grade levels dedicated particularly to in-state power generation that may now be doubtful in view of the recent decision by the federal court:

New Mexico’s Tier V applies to customer-sited resources;
Massachusetts’ Tier IV exclusively applies to in-state PV projects;
New York’s Tier II covers customer-sited resources.
The new ruling is significant since one of the main points raised by mandate proponents is the creation of jobs in the concerned state.  Certainly, these claims merely consider the overall “green” jobs provided, while totally neglecting the loss of net jobs resulting from increased electricity rates arising from these mandates. The federal court ruling might just end up nullifying the argument for in-state green-job employment since renewable power can be imported out-of-state to comply with the mandate.

Lawmakers in these states with power mandates may now question the value of raising electricity rates on their state power consumers for the purpose of subsidizing “green” job creation in another state nearby. In the end, what this ruling has done is to unravel the problems and complexities with a market for renewables that has been created through government policies.

The State of the Nation’s Air, and Your Lungs

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In most places, the quality of air in America is better than ever.

As China remains blanketed by an ever-thickening haze, we in the United States can be grateful of one thing: The air is getting cleaner in most parts. The American Lung Association reported in its State of the Air 2013 that 18 cities have lower dust pollution compared to previous years, while 16 had their lowest figures ever.


Nevertheless, the improvement is not that widespread. About 25 million Americans live in conditions of harmful levels of ozone and particle pollution. Around 131 million people (42%) live with either type of unhealthful environment. California’s busy and highly-populated metros rank badly in the rankings, consistently topping the five most-polluted metros by ozone, year-round and short-term particulate pollution. Bakersfield, the highest for particulates among 277 metros, fares worst of all although it has already improved.


In general, 119 counties have levels of ozone that affect the health of citizens with "aggravated asthma, difficulty breathing, cardiovascular harm and lower birth weight". Particulate levels in 58 counties are such that they "increase risks of heart attacks, strokes and emergency room visits for asthma and cardiovascular disease".


Cities, such as Salt Lake City and Fairbanks, Alaska, experience more frequent short-term spikes in pollution. Out of 25 cities that had the worst short-term problems, 14 recorded more poor days than in previous reports of the "State of the Air". According to the report, some cities experienced higher pollution arising from increased burning of wood and other fuels for heating during winter, especially with the use of highly-polluting indoor wood-stoves or outdoor wood-boilers.


Of the cleanest cities, New Mexico proudly ranks third and fifth for least particulates (Santa Fe and Farmington), Wyoming has another (Cheyenne), then Prescott, Arizona, and St. George, Utah. To help you determine your city’s ranking, the Lung Association website provides a friendly search function using the zip code.


"State of the Air" utilizes data gathered by the E.P.A. from 2009 to 2011. Its main objective is to promote continued enforcement of the Clean Air Act. Since 1970 when the Act was first amended, population and energy consumption has increased by about 50% while gross domestic product rose 212%, the report shows. Since then, emissions of the six most common pollutants have decreased by 68%. China, on the other hand, can only dream of achieving such a growth-to-pollution ratio.

Sea disputes, N. Korea in spotlight at ASEAN summit

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Concerned about possible escalation of long-seething tensions over certain isles in South China Sea, Southeast Asian officials meeting in Brunei this week are planning to press China to agree to begin talks to draft a new pact aimed at preventing a major military confrontation in one of the busiest waterways in the globe.

Apprehension over North Korea’s recent saber-rattling is also expected to compete for attention over vital economic issues in the annual ASEAN (Association of Southeast Asian Nations) Summit being held Wednesday and Thursday in Bandar Seri Begawan, capital of Brunei.

The 10-nation ASEAN bloc is under time-pressure to try to develop the significantly culture-differentiated region of 600 million people after the European Union model-community before 2016.

First conceptualized in a 2007 master plan, the work to transform the dynamic region into a singular market-and-production hub has reached about 77 percent completion, according to a draft declaration to be released after the summit. No details as to what remains undone have been given.

A copy of the joint statement obtained by The Associated Press on Monday states the ASEAN leaders’ continuing commitment to ensure the peaceful resolution of South China Sea conflicts within the bounds of international law  and “without resorting to the threat or use of force.”

ASEAN stands to call for “the early adoption of a code of conduct in the South China Sea,” referring to a legally-binding agreement it would like to forge with China to replace a 2002 nonaggression accord that has failed to stop territorial conflicts.

China, Taiwan and ASEAN members Malaysia, Brunei, Vietnam and the Philippines have overlapping territorial claims across the South China Sea, which Beijing claims in its entirety. Vietnam and the Philippines, for instance, have been constantly playing cat-and-mouse with China over the region in recent years, with diplomatic squabbles exploding over gas and oil exploration and fishing rights.

A tense standoff last year between Chinese and Filipino naval ships over the resource-rich Scarborough Shoal has remained unsettled.

The Philippine vessels withdrew; but China has adamantly declined from pulling out its three surveillance ships and removing a rope stopping Filipino fishermen from venturing into a Scarborough lagoon.

The Philippines, early this year, protested against China’s extensive territorial claims before an arbitration tribunal of the United Nations Convention on the Law of the Sea in a bold legal action that China has all but ignored. The tribunal is still hoping to appoint three more of five arbiters by Thursday, then begin investigating the complaint whether it has jurisdiction.

A pre-summit conference of ASEAN foreign ministers in Brunei two weeks ago generally revolved around concerns over the territorial disputes and concluded with a demand for an early completion of a nonaggression pact with China, Philippine Foreign Secretary Albert del Rosario stated.

Chinese officials, however, have not specifically signified when they would decide to meet for discussions on the proposed accord.

ASEAN unity has been endangered by the territorial issue. Cambodia, an all of China, rejected moves to have the issue inserted in a post-ministerial statement during last year’s summit. Vietnam and the Philippines protested the snub and the ASEAN summit concluded without issuing an after-conference communique, a first in the bloc’s 45-year existence.

China has vigorously refused to bring the issues to the international forum, opting to deal with each of its rivals on a one-on-one basis. It has also warned U.S. not to intervene in the regional disputes.

Founded in 1967 as a front against communism in the Cold War era, ASEAN has often been caught in the crossfire of major conflicts. As it is, the bloc walks an unsteady tightrope between a growing China and a powerful America that is reasserting its status in Asia-Pacific.

The two giants wield tremendous influence over the developing, small ASEAN nations, whose region has become a battleground for political and security control and export markets as it contains one of the world’s busiest sea lanes.

National Defense Forces from all of members of ASEAN, together with eight other countries that include the United States and China, will conduct, for the first time, three-day disaster preparedness drills in Brunei come June to promote confidence among the multinational troops, the draft summit statement also mentioned.

Sultan Hassanal Bolkiah, Brunei’s media-shy leader, has initiated the tedious ground-work to prevent any major fisaco in the ASEAN summits his tiny but oil-rich kingdom is hosting this year.

Bolkiah has separately met with US President Barack Obama and Chinese leader Xi Jinping prior to this week’s summit. Last week, he flew to Manila, to discuss part of the summit agenda with Philippine President Benigno Aquino III.

When his gleaming Royal Brunei Air plane taxied to a red-carpet welcome in Manila, Philippine officials were surprised to see Bolkiah, who also commands Brunei’s defense forces, at the pilot’s seat.

Jakarta Can Be a ‘New Manhattan’: Tomy Winata

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Jakarta is poised to become a “new Manhattan” according to an ambitious city plan described by Tomy Winata, founder of Artha Graha Group founder, during to an interview with cable TV broadcaster CNBC aired last weekend.

Danayasa Arthatama, a subsidiary of Winata’s company, closed a deal with US firm MGM Hospitality to construct a $2 billion, 638-meter tower — Indonesia’s tallest building in the future — within Sudirman Central Business District, South Jakarta.

Dubbed Signature Tower, the building will claim the world’s fifth-tallest building tag with its 111 stories, dwarfing Kuala Lumpur’s Petronas Towers as the tallest building in Southeast Asia. Based on the ompanies’ program, it will house 70 floors of office space, a six-star luxury hotel and will include conference facilities.

Tomy, 54, told CNBC that the project will anounce to the world that “Jakarta … is not a big village. Jakarta is becoming a new Manhattan.”

Meantime, on his proposed $15 billion Sunda Strait bridge project, the native of West Kalimantan declared, “I haven’t got the rights to do the project.”

Former Finance Minister Agus Martowardojo hesitated to grant the central government support to Artha Graha’s plan as well as the Banten Lampung provincial governments to build a 29-kilometer bridege connecting Sumatra and Java.

Nevertheless, Tomy Winata feels confident the project will push through in the end. “If one day the government gives the opportunity to us, the project financing will come from the private sector, without any guarantee from the government,” he told CNBC.

The government’s public-private partnership program requires state guarantees, considering the major investment risks involved. Agus, who will soon assume as Bank of Indonesia governor next month, has declared that he wanted to avoid a recurrence of the fiasco over the Jakarta monorail project.

Here’s The Argument That The Entire World Economy Is Starting To Go Bad

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Lately, the stock market has weakened with commodities been getting crushed.

Is the global economy slowing down hard? Maybe.

Recent U.S. economic data especially in housing has been disappointing.

And growth in China, a global growth engine, has slowed as it continues to crack down on corruption, property prices, and shadow banking. Its plan to shift its economy from exports to domestic-demand-powered growth has also added to the lower growth rate.

In Germany, Europe’s so-called strong-arm, economic hopes fall.

Let us briefly consider some salient data arising around the globe:



The U.S.

Housing, considered a huge source part of the economic recovery, is also showing signs of faltering. Building permits are decreasing and so is homebuilder confidence while foreclosure procedures are up and capacity limitations among mortgage lenders are also affecting the initial rebound.

America’s manufacturing rebirth also seems off-target. The Empire Fed manufacturing survey went down to 3.05 in April, below expectations. Today, we saw the April Philly Fed fall to 1.3, with the unemployment sub-index going down to -6.8.

In March, retail sales suddenly fell 0.4%. Nomura explained that the decreasing trends in sales in the last two months meant that “consumer adjustment to lower disposable income at the start of the year has begun.” Consumer confidence also missed the mark, falling to 72.3 in April, from 78.6 in March.

Reports regarding employment showed that only 88,000 new jobs were created in March, way below the expected 190,000 goal. The unemployment rate fell to 7.6% only because of a slow down in the rate of labor-force participation.

Topping this somber picture is the sequester, which has just started to move.



China

Chinese GDP fell down to 7.7% in Q1, missing the 8% growth target. Industrial production, manufacturing (as represented through PMI) and exports, likewise, did not make the grade.

The government’s campaign against corruption through ‘gift giving’ has affected retail sales, especially in the catering industry.

Latest surveys also indicated that home prices in China went up in 68 of 70 cities. Top-ranking cities posted a huge rise in home prices. Policymakers will most likely maintain the stringent measures to control the rise in property prices and shadow-banking.

Final assessment: The three major economic regions show clear signs of instability.



Europe

Germany showed some positive signs; but economic sentiment fell down to 42.

In the United Kingdom, joblessness increased by 70,000 to 2.56 million from December through February. Unemployment rate increased to 7.9%. Moreover, retail sales, including fuels, fell 0.7% within March, and 0.5% within the year. And next week’s GDP data will show if the U.K. has entered a triple-dip recession.

Can the New Argentine Pope Save the Catholic Crisis in Latin America

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Can the New Argentine Pope Save the Catholic Crisis in Latin America

There had never been a Latin American pope despite that it is home to nearly half of the world’s 1.2 billion Catholics but between 2000 and 2010, the percentage of Mexicans that identify as Catholic dropped from 88 to less than 83 — the largest fall recorded to date.  Now that the new Pope is the place, can he save his church?  Furthermore, the Vatican had been concerned about the remarkable decline of Catholicism throughout the region in the preceding decade. Vatican had once seen the area as a “continent of hope,” it now thought of it as a “continent of concern.”

Politicians have defied the church in ways, such as in Mexico City, officials legalized euthanasia, and same-sex marriage and adoption, in 2009.  The peril of excommunication did nothing to alter their minds.  Argentinian President Cristina Fernández de Kirchner legalized same-sex marriage in 2010.  She countered to the resistance accumulated by Bergoglio by accusing him a relic from the past “reminiscent of the Middle Ages and the Inquisition.”  Chilean President Sebastián Piñera, of the historically Catholic Christian Democratic Party, enacted an anti-discrimination law that included sexual orientation as a category for protection against the strenuous opposition from Catholic officials in 2012.  And up to this day, Piñera is pushing legislation to legalize same-sex civil unions.

10 Years After: Britain Today

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Prime Minister Tony Blair, addressed the nation: Britons woke to the footage of fireballs over Baghdad on March 20, 2003.  The first cruise missiles were launched from American ships in the Persian Gulf.
“The threat to Britain today is not that of my father’s generation.  War between the big powers is unlikely.  Europe is at peace.  The Cold War already a memory.  But this new world faces a new threat: of disorder and chaos born either of brutal states like Iraq, armed with weapons of mass destruction, or of extreme terrorist groups. Both hate our way of life, our freedom, our democracy.”
The comments wittingly said by Mr. Blair in his speech in Chicago in 1999 in which the prime minister, flush with success in Kosovo, had outlined his doctrine:
“We are all internationalists now, whether we like it or not. We cannot refuse to participate in global markets if we want to prosper. We cannot ignore new political ideas in other counties if we want to innovate. We cannot turn our backs on conflicts and the violation of human rights within other countries if we want still to be secure.”