Busted in Bali

U.S. Politicians Duck Energy Challenges


By Richard Martin, 12-14-07

 
 

As the warmest year on record moves down to its last few days, U.S. politicians in Washington D.C. and Bali, Indonesia continued to block any meaningful change in energy policy.

For the second time in a week the U.S. Senate failed to pass the long-delayed energy bill, failing by one vote to shut off a Republican threatened filibuster. The bill crafted by leaders from both parties last summer, which contained provisions to raise MPG levels for cars, reduce dependence on foreign oil, promote cleaner fuel sources and stiff penalties for price-gouging oil companies, will now be hollowed out to a shell of its original form: “Now, if the measure ever reaches President Bush’s desk, it will not be a comprehensive ‘energy’ bill per se,” writes Brian Wingfield of Forbes, “rather, it will be an ‘oil independence’ bill with a few handouts for energy efficiency.”

The main problem: lawmakers like Sen. Pete Domenici of New Mex, R-N.M., the top Republican on the Senate Energy and Natural Resources Committee, called the bill – which would have placed much of the burden for increased development of renewable fuels on fossil –fuel taxes – a “massive tax increase.” Apparently the burden of $100-a-barrel oil from the Middle East doesn’t count.

Even more disgraceful was the performance of U.S. “negotiators” at the global climate-change conference in Bali, where as of Friday morning a final agreement was still being held up by American refusal to countenance any form of mandatory carbon-emission reductions. “Frustration with U.S. negotiating tactics at the climate conference burst wide open Thursday, with countries from Germany to Tuvalu blaming the U.S. for torpedoing a new climate-change deal.” What’s interesting is that a U.S. “shadow delegation,” headed by former Vice President Al Gore and Sen. John Kerry, is also in Bali telling negotiators to just hang on, the Bush Administration has only another year to run and any subsequent U.S. leader will be more realistic, and more flexible, on energy policy.
Bali

In other energy news: food prices hit record levels, mostly due to ethanol subsidies; Silicon Valley venture firm rewards scientist for carbon-capture process; and a bill to research ways to transport and store CO2 gets support from business leaders.

In other energy news:

-- One of the provisions of the stalled energy bill is an expansion of the Renewable Fuels Standard – essentially an ethanol subsidy that more and more analysts are calling foolhardy. The Economist points out (Sub. req.) that “This year biofuels will take a third of America’s (record) maize [i.e., corn] harvest,” leading to the highest level for the influential British newsweekly’s food-price index since it was created in 1845.

-- One of the main problems with so-called “clean coal” projects of the sort favored by Montana Gov. Brian Schweitzer is capturing the carbon produced by all forms of energy production from coal. Seeking to avert this problem, renowned Silicon Valley venture-capital firm Kleiner, Perkins, Caufield & Byers has awarded the first “KPCB Prize for Greentech Innovation” to Dr. Eli Gal for his chilled ammonia-based process, which “is dramatically cheaper and more efficient than alternative and conventional CO2 capture technologies,” according to Kleiner, Perkins.

-- Another problem with capturing CO2 is, what do you do with it once it’s sequestered? A bill introduced by Senator Norm Coleman of Minnesota, the Carbon Dioxide Pipeline Study Act of 2007, would examine ways to solve technological and political obstacles to the large-scale transport and storage of CO2. This week the Western Business Roundtable, a coalition of CEOs and senior executives of large corporations in the Mountain West, threw their support behind the bill.



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By Craig Moore, 12-14-07
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