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Fire Sale of Federal Lands?
November 9, 2005 |
Kill the Bill By Kelpie Wilson Thursday 28 July 2005 If anything merits drawing the filibuster sword out of its sheath, it is the energy bill that came out of a House/Senate conference this week. True, a Supreme Court appointment, especially of a young Federalist Society judge like Roberts who has the potential to occupy the bench for forty years, is a decision with far-reaching implications. By comparison, a ten-year energy policy bill may seem less important and less deserving of the fragile power of the filibuster. But on the other hand, the world and America are at a critical juncture with regard to energy, and there is very little time left to change course. We are about to reach the global peak of oil production. After it peaks, the flow of oil will be less and less every year. Once the oil is gone, it's gone, and there is no direct substitute for it. We have known this day was coming for at least thirty years, but the US has done little to prepare, other than to wage military campaigns in the Persian Gulf with the intent of controlling the world's largest remaining oil fields. We reached our own peak oil production back in the early 1970s. We now import 60 percent of the 21 million barrels of oil we use each day, but the revised energy bill would do nothing to decrease America's dangerous dependence on foreign oil. The Senate version of the bill, while still chock full of pork for the oil and nuclear industries, did have some modest provisions to promote renewable energy and conservation. Most of these are now gone, including: A directive to the President to find a way to reduce oil consumption by 1 million barrels a day by 2015. Though non-enforceable, opponents said it was a back door to higher fuel efficiency standards and that (horrors!) it would force Americans into carpools. A renewable portfolio standard (RPS) requiring that at least 10 percent of the nation's electricity come from renewable sources like wind and solar power by 2020. Gee, just about every country with a decent-sized economy already has an RPS in place, except for us. China passed the exact same RPS - 10 percent by 2020 - back in February. A non-binding resolution recognizing that global warming is a real problem. Global warming remains unmentionable except as an excuse to pour money into so-called "clean" coal and nuclear power. A ban on the groundwater-polluting gasoline additive MTBE. The Senate version would have phased out its use over four years. The final version has no ban. About $5 billion in subsidies and tax incentives to encourage renewable energy and energy efficiency. The Senate version supplied about $10 billion. The conference committee slashed the renewables and efficiency subsidies in half, and increased fossil fuel and nuclear subsidies. There were many regressive provisions in either or both versions of the bill that remain in the final. Some of the worst are: Massive cradle-to-grave subsidies for the nuclear industry. Conferees even piled on extra sweetener: $2 billion in risk insurance for the first six nuclear plants to get built and an expanded production tax credit. Stripping states of the authority to approve LNG (liquefied natural gas) import terminals and handing sole authority to the Federal Energy Regulatory Commission (FERC). Repeal of PUHCA (Public Utilities Holding Company Act) - the New Deal regulation that has kept our electricity cheap and our utilities solvent for 70 years. Without it, every utility in the country is vulnerable to Enron-style financial manipulation. Energy industry exemptions to the Clean Air Act, the Clean Water Act and the Safe Drinking Water Act were all in the House but not the Senate version. Now they are in the final bill. A mandated off-shore oil survey that will use seismic methods (setting off underwater blasts) that are known to harm dolphins, whales and other sea life. Tons of taxpayer money for the filthy rich oil, coal and gas industries, including an extra $1.5 billion snuck into the bill late Monday night AFTER the conference meeting had been gaveled to a close! The money would go to a special oil industry slush fund administered by an industry consortium based in Sugar Land, Texas - part of Tom DeLay's district. A few nasties from the House version were dropped, and they are getting a lot of press, but it is not really such great news. Tom DeLay badly wanted a liability shield for MTBE manufacturers, and he didn't get it. But he did get a provision that allows manufacturers to move cases from state courts to federal. According to Christy Leavitt of PIRG (Public Interest Research Group), that will only benefit the manufacturers, as many MTBE lawsuits are based on state product liability laws. MTBE manufacturers knew for years that their product was polluting ground water and said nothing while continuing to make and sell it. The other deal-killer dropped from the energy bill was authorization to drill in the Arctic National Wildlife Refuge (ANWR). But the Alaska delegation and Big Oil have already figured out the work-around for this one. They added hypothetical oil leasing revenue from ANWR into the federal budget back in March. This fall, there will be a filibuster-proof budget reconciliation process where they can thread in the authorizing language to open the reserve. Voila! ANWR is toast. The danger from this energy bill is huge and unprecedented. Oil we buy after the peak of production is going to get increasingly more expensive. We need to invest the remaining oil and gas in building a new energy infrastructure of renewable technologies like wind and solar power combined with an efficiency makeover for buildings, appliances and the transportation sector. We don't have any time, money, or energy to waste. Every wrong move we make now is going to cost us in the future, leaving us less prepared to live in a post-petroleum world. Americans, despite how little the media tells us about Peak Oil and our energy situation, are aware that we must make a real change. In June, Yale University conducted a national survey that showed that even though Americans are deeply divided on many issues, more than 90 percent agree we are too dependent on foreign oil and we should mandate higher auto fuel efficiency standards. More than 86 percent want increased funding for solar, wind and other renewable energy technologies. This is phenomenal. In a red-blue polarized nation, it shows that there is a strong purple constituency for a new energy future. It shows that, except in the few special interest states like Alaska, there is little risk to senators who vote against this energy bill. The House will pass the bill. It is up to the Senate to stop it. President Bush wants a vote before the congressional recess starts next Monday, and the Senate is scheduled to vote on it either Friday or Saturday. The new bill is now 1700 pages long. Nobody has had time to read it all yet, and it must be read in order to determine if any other oil industry goodies have been illegally buried in it, so what is the rush? Are there 41 senators, from any party, who will listen to their constituents, who will stand up for America and filibuster this energy bill? Are there 41 men and women in the Senate who will put America's national security, economic competitiveness, quality of life, well-being, and long-term survival ahead of the dim-sighted, Gollum-like greed of their corporate campaign contributors? And even more important, are there 51 senators who will kill this bill?
Kelpie Wilson is the t r u t h o u t environment editor. A veteran forest protection activist and mechanical engineer, she writes from her solar-powered cabin in the Siskiyou Mountains of southwest Oregon. Her first novel, Primal Tears, is forthcoming from North Atlantic Books in Fall 2005. |
U.S. Energy Bill Title V Harms TribesU.S. Energy Bill 2005
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** PLEASE FORWARD WIDELY **ENERGY BILL NATIVE ACTION ALERT!
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fact sheet: NATIVE opposition to u.s. senate
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Proposed Energy Bill Includes Provisions to Facilitate Power Siting on Indian LandsFebruary 27, 2002 By WILL McNAMARA Director, Electric Industry Analysis The House and Senate energy bills include a number of provisions that will affect Native American tribes, including language on electricity generation, tax credits and hydropower relicensing. And while most of the proposals are found in the Senate language, a lawyer representing Native Americans on Capitol Hill said she is also targeting the House to clarify regulatory and taxing authority over existing projects on tribal land. Senate Title IV of the Senate bill (S. 1766/S. 517) is titled Indian Energy and includes a section to streamline the federal approval process for siting energy projects on Indian lands, specifically for electric generation, transmission and distribution facilities. The bill would also allow an Indian tribe to grant a right-of-way for pipelines, transmission lines and distribution lines without independent approval of the executive branch, assuming certain criteria are met. Analysis: As the siting procedures for power plants and transmission infrastructure have become extremely complex and time-consuming in more urbanized regions, many energy companies The Senate is debating the rather broad energy bill this week, and the issues related to power projects on Indian land is only one component of the larger legislation. Other, potentially larger issues that also are being addressed include drilling in the Arctic National Wildlife Refuge (ANWR) and competition issues related to the Enron collapse. However, from a production and capacity standpoint, the language in the proposed bill that relates to development on Indian lands could also have a large potential impact on the industry, as it might open up new avenues for generation development. Specifically regarding the issue of tax breaks within the Senate bill, the word circulating is that the Democratic version would give more federal funding to conservation efforts, while the Republican proposals tend to favor additional funding for power producers. Key to the struggle in the emerging energy bill are the different approaches toward policy between the Democratic-controlled Senate and Republican-controlled House of Representatives, and the energy plan that was issued by the Bush administration in the spring of 2001. Based on current information, the tax provision in the proposed Senate bill could encourage Indian ownership of federal energy projects on their land by allowing tribes to use their exemption to offset federal debt, or give it to a taxable entity like an investment partner (often the energy company that is building the power plant or transmission line). The benefit of such a provision in the bill would be that Indian tribes would be allowed to give the full credit of the tax break to the investor assisting with the power project. Presently under existing law, the tax credit is split between tribes, which are non-taxable, and the company investing, which is taxable. Due to the existing split, some energy companies may be dissuaded from building infrastructure on tribal lands from an economic perspective. Nevertheless, as noted, after facing community resistance from more urbanized and rural areas that often block the development of power lines or plants in their areas, energy companies may believe that energy-infrastructure assets (especially power plants) can be built more quickly on Indian land without the oversight of state regulatory commissions. In addition, the appeal of untapped natural resources on reservation land is strong, considering that the Bureau of Indian Affairs estimates that about 90 Indian reservations have energy-resource potential, including oil and gas, coal, coal-bed methane, wind, and geothermal. Only about one-quarter of those resources have been tapped, according to the federal agency. In addition, another advantage that energy companies may seek is the tax break provided for projects that take place on tribal land. Businesses on Indian land get accelerated depreciation on their assets, meaning they can write off the plant from their taxes in the early years and see more cash flow sooner. In May 2001, Calpine Corp. (NYSE: CPN) built the first independent power plant on an Indian reservation when it completed construction on the South Point Energy Center on the Fort Mojave Indian Reservation, located on the border between Arizona and Nevada. Calpine has said that the location of the facility, near the Colorado River that serves as a water source, made the location ideal. Apparently Calpine also found the siting process on the reservation, at least in this particular case, to be easier than other siting attempts in more urbanized areas. Calpine sells power from the plant back to the reservation, with surplus energy being sold into the wholesale markets of Arizona, California and Nevada. In return for use of the land, along with lease payments to the tribe, Calpine is reportedly offering scholarships and job training to tribal members. Moving forward, the latest word was that Calpine was working on additional development plans for power plants on Indian reservations in California, Arizona and Nevada, where Calpine can secure freshwater rights from the tribes. Consider these other examples, gleaned from national headlines, but particularly evident in the Western United States: [July 2001] In addition to the Fort Mojave plant, Calpine has two major projects in the works: one on the Moapa Paiute Reservation near Las Vegas and another on the Torres-Martinez Reservation in southeastern California. The latest word on the projects was that proposals are still in the permitting process with federal agencies, including the Environmental Protection Agency. [August 2001] A proposed natural-gas pipeline that would deliver fuel to Bay Area power plants could have a noteworthy co-owner: the Navajo Nation, the sovereign government of 180,000 residents on the largest Indian reservation in the United States. Kinder Morgan, Inc., which is spearheading the pipeline, has signed an agreement in principle to give the Navajos an ownership interest in the $1.7-billion, 1,200-mile Sonoran pipeline that crosses the Navajo reservation. Calpine Corp. is also involved in the development of the pipeline. ? [November 2001] The Umpqua tribe in Oregon recently became the first tribal electric utility in the Pacific Northwest, a move enabled by a policy set by the Bonneville Power Administration (BPA) that defined tribes as public bodies eligible to buy electricity directly from the federal agency. The Umpqua tribe has signed a power contract with the BPA and now delivers power to the casino and hotel on their reservation. In addition, on the federal level, a bill sponsored by Sen. Jeff Bingaman (D-N.M.), chairman of the Senate Energy and Natural Resources Committee, would establish a "Comprehensive Indian Energy Program" at the Department of Energy to help tribes develop energy resources through grants and loans. The benefit of the proposed bill is that it could potentially cut the red tape imposed by the federal government on Indian tribes that seek to lease land and rights-of-way to energy companies that want to develop power plants or transmission lines on reservation land. However, despite these development advancements, there are also recent examples of existing conflicts between energy companies and Native American tribes. For example, San Diego Gas Electric (SDG) is attempting to proceed with a 500,000-volt, 31-mile transmission line that would connect SCE's Valley Substation near Romoland, Calif., with a future substation to be located in the Rainbow, Calif. area, just south of the Riverside-San Diego county line. In addition to community resistance that SDG received from residents in the southwest Riverside County area, Native Americans in the region that would be impacted by construction of the line have also mobilized to block the development. SDG is reportedly exploring seven options for the route of the pending transmission line. Out of the seven options, six would run through land owned by the Pechanga tribe, some currently protected from condemnation under eminent domain authority and some that is not. It is important to note that the Pechanga tribe considers the Great Oak Ranch to be a sacred burial area. The use of Indian land for infrastructure expansion is a huge undertaking, and the California case on the SDG transmission line illustrates some inherent conflicts that might arise. As in the California case, the conflict often relates to Indian tribes wanting to protect land, either for religious or environmental purposes. Here is another example that speaks to this particular conflict. Members of the Hopi Reservation in northeast Arizona protested Peabody Coal's use of Indian groundwater in August 2001. Peabody Energy, a large private coal company based in St. Louis, purchases about 3,800-acre feet of water from the Hopi tribe and the Navajo Nation each year for about $3.5 million to move coal from two strip mines that company owns in Laughlin, Nev. Mobilization between the Hopi and Navajo tribes appears to be growing against Peabody, which they claim has severely diminished water resources on the reservation. Moreover, as the need for expanded energy infrastructure in the United States increases, energy companies may continue to turn to reservation land as a desirable location for infrastructure development. For those Indian tribes that seek a new source of revenue, partnering with an energy company to own a power plant or transmission line, or at least share in some of the asset's profits, can represent a positive proposition. However, the issues surrounding the sanctity of land can be a major impediment to an energy company's negotiations with an Indian tribe. As the SDG case in California illustrates, siting a transmission line tends to be more difficult than siting a power plant because multiple jurisdictions are involved. This general rule also applies when an energy company is dealing with reservation territory, as most likely the proposed transmission line will extend beyond a reservation and into other territory, meaning that the energy company will need to obtain approval from the Indian tribes and other community groups. SDG's argument may be that the company is left with little choice but to develop the Valley Rainbow Interconnect through the land of the Pechanga tribe. However, from a broad perspective, moving forward we may see more occurrences of energy companies developing power plants on Indian reservations rather than transmission lines. http://www.powermarketers.com/ |
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