Climate is a Security Issue
The National Research Council (NRC) has recently released a study called Climate and Social Stress: Implications for Security Analysis. The security implications of climate change have been discussed in other, similar studies in the past, and this one is largely consistent with what has come before. The central message is that the changing climate will affect the United States, not only through weather and climate-related events in this country, but also through even...
CONTINUE READINGCap-and-Trade: Why Auctions are Better than Give-Aways
Earlier this week California began auctioning off greenhouse gas emissions allowances, and the sky has not fallen. But is an auction really the best way to distribute the allowances? The California Chamber of Commerce says no. Its lawsuit—discussed in recent posts by Ann, Rhead, and Sean—doesn’t challenge the State’s authority to limit greenhouse gas emissions, or the selling and buying of emissions allowances. It doesn’t challenge the “cap” or the ...
CONTINUE READINGBreakdown of the $4.5 Billion BP Criminal & Securities Settlements
As Richard noted in an earlier post, today, British oil company and deep water drilling giant, BP, announced that it had reached settlements of all federal criminal and securities claims related to the 2010 Deepwater Horizon oil spill in the Gulf of Mexico with the Securities and Exchange Commission (SEC) and the U.S. Department of Justice (DOJ). The criminal plea agreement and securities violation resolution remain subject to federal court approval before they are fin...
CONTINUE READINGWhat happens if not all allowances are sold at the first cap-and-trade auction?
California held its first cap-and-trade auction for greenhouse gas (GHG) allowances yesterday. The California Air Resources Board (CARB) will announce the results from that auction on Monday, Nov. 19. What happens if not all the allowances are purchased at the auction? The short answer is that unsold allowances will be withheld from the market and eventually offered for sale in a subsequent auction. And the "market clearing price" for the auction would likely be $...
CONTINUE READINGBP Agrees to Plead Guilty to Felony Charges Arising Out of Deepwater Horizon Disaster
The Wall Street Journal is reporting that British Petroleum has agreed to plead guilty to felony charges stemming from the Deepwater Horizon disaster that killed 11 workers and precipitated the worst offshore oil spill in U.S. history. As part of the plea bargain, BP has agreed to pay the federal government $4.5 billion in penalties, including $1.26 billion in criminal fines. BP has reportedly agreed to plead guilty to 11 felony counts relating to the worker deaths abo...
CONTINUE READINGWhy California’s cap-and-trade auction is not a tax
Yesterday, Ann and Cara gave their initial reactions to the California Chamber of Commerce lawsuit against California's cap-and-trade auction. The main thrust of that lawsuit is that the auction (that happens today) is an unconstitutional tax because, according to the lawsuit, AB 32 gave the California Air Resources Board (CARB) no authority to withhold and sell the allowances at auction, as opposed to giving away allowances to industry for free. Ann's first reaction...
CONTINUE READINGWhy Was the Lawsuit Challenging California’s Cap-and-Trade Auction Filed Just One Day Before the Auction?
As Ann posted earlier today, the California Chamber of Commerce has filed a petition for writ of mandate in a California superior court, alleging that the auction of allowances to emit carbon dioxide scheduled for tomorrow constitutes an illegal tax and is not authorized by the California law AB 32. AB 32 requires the state to reduce greenhouse gas emissions, and the Legislature has tasked the California Air Resources Board with making that happen. The ARB has develo...
CONTINUE READINGBreaking News: California Chamber of Commerce Sues over AB 32 Auction
The California Chamber of Commerce has launched the first industry lawsuit against the auction portion of California's cap-and-trade program on the basis that auctioning off allowances constitutes an unauthorized, unconstitutional tax. The complaint was filed today in Sacramento Superior Court and seeks to stop the auction and have the auction regulations declared invalid. The Chamber argues that the Legislature never authorized the Air Resources Board -- the agency...
CONTINUE READINGTime for a California Oil Severance Tax
California's new Democratic supermajority will be sorely tempted to raise taxes and fees across the board, which I have earlier suggested is a bad idea politically. But that hardly means that it should reject new revenues altogether, and the easiest place to start would be an oil severance tax. The oil severance tax works exactly like it sounds: it taxes producers based upon the barrels of oil they take out of the ground. California is one of the few oil producing s...
CONTINUE READINGWhy the GOP Should Embrace Renewable Energy and Energy Efficiency
There's a lot of discussion these days about how the Republican Party should reposition itself in light of last week's election results. Support for renewables and energy efficiency would make sense as part of a package of policy adjustments -- it would strengthen the Party's appeal to swing voters, women, and younger voters, with only limited fallout among current GOP supporters. Here are some key finding from a recent Pew poll: 70% of independents support increase...
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