Climate Lunacy took Center Stage in Poland

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The unwritten rule seems to be that each successive climate report and news release must be more scarifying than any predecessors, especially during the run-up to international conferences.
Thus Intergovernmental Panel on Climate Change Special Report 15 claims governments worldwide must make “unprecedented changes in all aspects of society,” spend $40 trillion by 2035 on renewable energy, and impose carbon taxes that climb to $5,500 per ton of carbon dioxide (CO2) by 2030. Or temperatures could climb another 1 degree F (0.5 C) and bring utter cataclysm to human civilization and our planet.
Not to be outdone, the 1,700-page 2018 US National Climate Assessment wailed that failure to eliminate fossil fuels and roll back American industry and living standards would send global temperatures soaring 15 degrees F by 2100! Chaos and food shortages would ensue; US economic growth would plummet.
The hyperbole continues in Katowice, Poland – where 30,000 activists and bureaucrats (and a few scientists) are meeting to finalize regulations to implement the 2015 Paris climate treaty and compel wealthy nations to give trillions of dollars in “adaptation, mitigation and compensation” money to poor countries that have been “victimized” by climate change, even as the rich nations de-industrialize.
All of this certainly plays well with those who orchestrated these reports and programs, are ideologically opposed to fossil fuels, or get paid to advance climate chaos and renewable energy narratives. However, a very different response among other audiences is increasingly evident around the world.
People look out their windows and realize the “unprecedented climate and weather chaos” isn’t actually happening, is little different from what they and previous generations experienced, and cannot possibly be attributed solely to fossil fuel use. They know the sun and other powerful natural forces have driven frequent climate changes throughout history, and play equally important roles today.
They understand that the scary headlines are the product of “scenarios” conjured up by computer models that blame climate change on greenhouse gases. They see the boy who cried “fifty 20-foot-tall wolves” far too often. They don’t buy the notion that today’s incredibly wealthy, high-tech, energy-rich societies are somehow less able to deal with climate change than those that lived through the Little Ice Age, for example. They typically put climate change at the bottom of any list of pressing concerns.
More and more people understand that fossil fuels provide 80% of US and global energy – and are essential to lifting billions more people out of crushing poverty. They see Asian and African countries building thousands of new coal- and gas-fired electrical generating plants, and making and driving millions of new cars. They know even Germany and Japan are burning more coal, as they realize that wind and solar subsidies and facilities raise energy costs, kill jobs and hurt poor families the most.
People resent being scammed and get angry when they realize their taxes and energy payments often line the pockets of climate activists, scientists, bureaucrats, politicians, and wind, solar and biofuel cronies.
Above all, a growing number see the proposed solutions as far worse than the wildly exaggerated and even fabricated climate disasters. They won’t tolerate having their livelihoods and living standards disrupted or destroyed by carbon taxes, even higher energy prices or fossil fuel bans – especially when the antipathy toward those fuels is combined with plans to terminate nuclear and even hydroelectric power.
In recent weeks, millions of mostly poor, working class and rural French citizens have joined the Gilets Jaunes (Yellow Vests) movement, protesting and even rioting against President Macron’s proposed carbon tax hikes on their driving and living standards. Even a French police union has sided with the protesters. A shaken Macron finally postponed the tax for six months, then scrapped the plan entirely.
The protests are the first serious backlash against international eco-imperialism. They won’t be the last.
In Africa alone, twice as many people as live in the USA still do not have electricity, or have it only rarely and unpredictably. Can you imagine your life without electricity? And yet they are told by the EU, environmentalists, the World Bank and others that they must restrict their ambitions to what is possible with wind, solar and biofuel energy. Would you accept such carbon colonialism? Can actual, real-world climate risks possibly be worse than the horrid poverty, deprivation and disease that afflicts them now?
The World Bank recently said it would kindly give poor countries $200 billion during its FY2021-25 cycle, for “adaptation and resilience” in the face of manmade climate change. But still nothing for fossil fuel or nuclear power. The White House should read it the riot act, especially if US money is involved.
Poor countries don’t need climate cash. They need to develop: energy, infrastructure, factories, jobs, health, living standards. They need to do what rich countries did to become rich – not what (some) rich countries are doing (or at least saying) now that they are rich. Thankfully, many are doing exactly that.
Abundant, reliable, affordable electricity, motor fuels and factory power creates its own prosperity; its own ability to improve roads, hospitals, schools, homes and so on; its own “drop dead money” to tell carbon colonialists to take a hike. “Green” energy is insufficient, unsustainable and ecologically harmful.
With America likely being joined soon by Brazil in rejecting the Paris climate trap, poor nations are on firm ground. Ontario (Canada), Poland. Australia, China, India and other countries have also rejected carbon taxes and coal use restrictions. The Paris deal is fast becoming a climate Potemkin Village.
But what about that National Climate Assessment? Wasn’t that a Trump White House document? It certainly needed some adult supervision, to ride herd on the 1,000 Deep State scientists and bureaucrats who prepared it. However, the White House let them prove how loony climate alarmism has become.
Indeed, as Nick Loris, Roger Pielke, Jr. and other experts have pointed out, the NCA was based on absurd assumptions (eg, vastly increased coal use and no energy technology advances over the next 70 years) and a ridiculous worst-case global temperature increase of 15 degrees F by 2100. That’s twice as high as even the IPCC’s worst-case projections, and far worse than Garbage In-Garbage Out climate models are predicting. It’s more than 15 times the total warming our Earth has experienced since 1820!
The NCA is also based on rampant cherry-picking of data, to wildly inflate climate risks; an almost total failure to factor in the incalculable benefits of fossil fuels; and a refusal to consider the plant-fertilizing benefits of more atmospheric carbon dioxide. It just depicts the CO2 we exhale solely as a dangerous climate-changing pollutant. The NCA also ignored the fact that actual observations show no increases in drought, no increases in the frequency or magnitude of floods, no trends in the frequency or intensity of hurricanes. It didn’t mention the 12-year absence of Category 3-5 hurricanes making US landfall.
Just as egregious, the Deep State NCA claimed continued fossil fuel use would hit the United States with $500 billion in annual climate related costs by 2090. That’s more than twice the percentage lost during the Great Depression. It’s 10% of the US economy in 1971. Even with modest economic growth, it’s likely to be a trivial 0.6% of America’s GDP in 2090. The NCA bogeyman is a little stuffed bear.
But based on IPCC and NCA fear mongering, America and the world are supposed to keep their fossil fuels in the ground – including what the US Geological Survey says is the “largest continuous oil and gas resource potential ever assessed!!” Over 46 billion barrels of oil, 280 trillion cubic feet of natural gas and 20 billion barrels of natural gas liquids in just part of the Texas-New Mexico Permian Basin.
No one denies that the climate changes, or even that human activities have some effects on climate and weather. But there is no real-world evidence that human CO2 emissions have replaced the sun and other natural forces; that another degree of warming would be cataclysmic; or that humans can control climate changes and weather events by tweaking the amount of carbon dioxide in the atmosphere.
Want some facts and common sense? See what CFACT and Heartland have been saying in Poland, and read books by Dr Roy Spencer, Marc Morano, Anthony Watts and others. They’ll be a breath of fresh air.


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The Sky is Falling!

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A new report from the World Wildlife Fund (WWF) claims humans have killed more than half the all the wildlife in the world since 1970. The report attracted media mass attention, though if you read the entire 145-page essay, it doesn’t really say that, much less prove it. More ironic, the political focus is mostly on countries where the declining wildlife populations do not live, and the solution suggested is so vague it couldn’t possibly address the issue.
The hype about the document, an annual harangue called the “Living Planet Report,” is not surprising, considering the source. This is the same organization that told us a decade ago we would all have to leave. “Earth’s population will be forced to colonize two planets within 50 years if natural resources continue to be exploited at the current rate, according to a… study by the WWF. [The study] warns that the human race is plundering the planet at a pace that outstrips its capacity to support life. The report… reveals that more than a third of the natural world has been destroyed by humans over the past three decades.”
That was a remarkable conclusion, especially considering that 71 percent of the Earth’s surface is water. So humans would have to have destroyed virtually every square inch of land on Earth for the report to be credible.
This year’s diatribe claims almost 60 percent of all the fish, birds, and animals on the Earth have been killed by people in two generations. It proposes “a new global deal for nature,” a companion for the Paris Climate treaty. Except unlike Paris, the proposed “new deal for nature” has no numbers, no specific goals. In fact, there is no definition of what the agreement might entail. Rather, it includes vague suggestions that we’re not locking up enough land from public access, nor creating enough national parks, wildlife refuges, wilderness areas, and other unpeopled places.
The report’s language is decidedly European and American, using policy terms common to the western environmental industry. For example, it discusses the “progress” in removing dams in the U.S., especially criticizing agriculture in the Rio Grande Valley, and cites efforts to designate more wild and scenic rivers. It continues the ongoing criticism of western mining, timber production, and “unsustainable agriculture,” with which we’re all familiar. These people simply want to stop most human uses of land, water, and other resources of the American West.
There is just one major problem with using this report to further that goal. The wildlife it laments does not live in the American West. Keep in mind that the reported declines in wildlife populations are based on computer modeling, not actual counting of actual animals. Still, even if you give such a report the benefit of the doubt, as many will, the dangers cited are from “warming oceans choked with plastic,” toppled rain forests, and dying coral reefs. Thus, populations are said to be tanking worst in the tropics, including an 89 percent decrease in South and Central America. But make no mistake – the U.S. is nonetheless at fault. The report claims “crop failures brought on by climate change” are the reason caravans of Central Americans stream to the U.S. illegally. That’s why we must “urgently transition to a net carbon-neutral society and halt and reverse nature loss — through green finance and shifting to clean energy and environmentally friendly food production.”
In a way, the details in this report may actually disprove its own conclusions. The U.S. and Canada are among countries using the most natural resources, yet the worst wildlife declines are in the Tropics, not in North America. The prime examples cited are African elephants, whale sharks, orangutans in Borneo, wandering albatross near Antarctica, jaguars in South America, gharial crocodiles in India and Nepal, and Chinese giant salamanders.
WWF is not the only Chicken Little constantly warning of a dire future. A similar article, published in the National Academy of Sciences journal last spring, was even more shocking. It claimed that since the dawn of civilization, humans have caused the loss of 83% of all mammals and half of all plants on Earth. That’s because, WWF says, “the vast and growing consumption of food and resources by the global population is destroying the web of life.” So while you stop driving cars and heating your homes, you might also need to stop eating – while you pack for the trip to some other planet.
If we are not Chicken Little, is the sky still falling?

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Confusion, Silence Will Earn Business Higher Taxes

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“I’m not going to get into it unless anybody wants me to.”
So said Kristin Collins, policy development director for the Virginia Department of Taxation, as she neared the end of her November 19 slide presentation on federal tax conformity and its impact on Virginia state taxes. The final handful of slides focused on the business tax issues, and not one member of the legislative panel asked her to get into them.
 
With all the focus and political discussion swirling around individual income taxes and conformity, the business tax issues have received little notice. In the projections on the state’s revenue windfall the higher business taxes produced by conformity play a big role. In 2023 and 2024, the later years in the state’s projection, higher business taxes account for over 40 percent of the new revenue, according to an outside consultant’s study.
Collins was presenting to the Joint Subcommittee to Evaluate Tax Preferences, the closest thing Virginia has to a permanent tax commission in its legislative body. Many key players on the money committees belong. The chair, Delegate Lee Ware of Powhatan, who also chairs House Finance, intends to call the joint panel together again for a deeper discussion and perhaps some decisions before the General Assembly starts in January.
A group I’m working with has already recommended on the individual side that Virginia increase its standard deduction, and on the corporate side we think Virginia should start to cut the corporate income tax rate, from 6 percent now down to 5.5 percent for this tax year and 5 percent for next tax year. The full Thomas Jefferson Institute paper on our proposal is now available.
The business community needs to get its act together and decide what it wants, or it’s going to get the full effect of these business tax increases. Unincorporated businesses – S corporations, pass-throughs, partnerships – do very well under conformity but incorporated businesses get hit. The cut in the corporate income tax rate we propose effectively short-circuits that tax increase in general but does not return the benefit directly to the companies hit with the highest new taxes.
Some in the business community would prefer to leave the tax rates intact but instead get the General Assembly to restore the corporate deductions targeted by Congress. They would have Virginia refuse to conform to those certain aspects of the federal system, which does target the corrective action directly to those facing higher taxes.
Our proposal is full conformity but rate cuts aimed at all corporate taxpayers. It represents general tax reform, not maintenance of the status quo.
A short list of changed business provisions create the big tax hike, and they are spelled out in the Tax Department chart above. You can see that several grow in impact over time, and a major change in the treatment of research and development expenses doesn’t even kick in for three years. Unlike some of the new individual tax provisions, these changes have no sunset date.
What is wrong with that chart – and potentially misleading – is it includes provisions for both unincorporated and incorporated businesses. The two changes producing lower taxes are mainly for the entities exempt from the corporate income tax, and most of those raising taxes are for corporations. It also fails to detail one of the more controversial changes dealing with repatriated international earnings.
That provision, which goes by the wonderful acronym GILTI, is already the subject of a lobbying effort by some Virginia corporate taxpayers, who note some other states (Tax-achusetts included) have already elected to allow that deduction despite the federal action. It stands for Global Intangible Low-taxed Income, and the IRS guidance runs to 150 plus pages. The argument over whether and how to tax intangible income (royalties on patents and copyrights for example) is an old one.
The Section 199 deduction also known as the domestic production activities deduction (DPAD) has been a source of contention in Virginia before, because when Congress expanded it Virginia balked at going along in full. Its purpose was to lower the effective tax rate on manufacturers, and by lowering the tax rate for everybody by 40 percent Congress largely addressed that problem. It then killed Section 199. (Virginia should do the same: accept the change and lower its rates!)
The largest cash impact comes from new limits on the deduction for interest expenses, and here Congress also had reasons for its move. Why subsidize excessive debt? Apparently there is also a push on in Virginia to keep that deduction in place on Virginia corporate returns.
The limits on amortization of research and development expenses have a delayed impact, but eventually a large one. That’s another one where Virginia could stay the course, maintain the old rules, but at the cost of a lost opportunity to lower overall rates.
The business community has some decisions to make, and it may be a handful of companies who have a developed presence at the General Assembly who get to make them. Long-term considerations and discussion of overall economic policy tend to get ignored when lobbyists can angle for their own client’s advantage. That game is now afoot.
(This article first ran in Bacon’s Rebellion on November 26, 2018)

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What Kind of Infrastructure Bill Might Pass a Divided Congress?

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In the wake of the November 6th election results, there is renewed talk of a national infrastructure bill. The day after the election, likely House Speaker Nancy Pelosi (D, CA) announced that major infrastructure legislation will be high on the Democrats’ 2019 agenda. She was seconded by the expected chairman of the House Transportation & Infrastructure Committee, Rep. Peter DeFazio (D, OR), who said he is working on a $500 billion infrastructure proposal.
Any such measure must contend with two key background factors. First, the increased Republican majority in the Senate. Second, the strong support at U.S. DOT for the ideas presented in the White House infrastructure proposal released back in February. That proposal, while including some new federal spending ($200 billion over 10 years) focused much of its attention on providing incentives for state and local governments to come up with additional revenues to support rebuilding their aging infrastructure and adding new capacity where needed. Such measures include incentive grants, reforms to make it easier for infrastructure owners to use long-term public-private partnerships (P3s), and a relatively new concept called “asset recycling.”
With a divided Congress, any infrastructure bill must be developed as a bipartisan compromise that would couple some increased federal spending with policy changes to enable state and local infrastructure owners to invest more, and to invest more wisely. To that end, I think the asset recycling idea holds considerable promise. A new Reason Foundation policy study, released today, provides an introduction to infrastructure asset recycling.
The basic idea is for a state or local government to long-term-lease an existing revenue-producing facility to a well-qualified company, financed by infrastructure investors. The company commits to (1) paying most or all of the lease payments up-front, and (2) rebuilding and maintaining the facility during the term of the lease. After paying off any outstanding bonds on the facility, the government can then use the net proceeds of the lease payments to invest in other, currently unfunded, infrastructure.
In surface transportation, the best U.S. example of asset recycling is the long-term lease of the Indiana Toll Road. Net proceeds of that transaction enabled the Indiana DOT to fully fund a 10-year highway improvement program called Major Moves, in addition to setting up a dedicated fund to maintain the new or rebuilt highways and bridges. Chicago and Puerto Rico have also done long-term P3 leases of existing toll facilities—the Chicago Skyway and PR 22, respectively.
In 2014 Australia adopted a national government policy to encourage its state governments to make use of infrastructure asset recycling. It offered grants to the states, adding 15 percent to the net proceeds of an infrastructure lease or sale, so long as those proceeds were invested in new infrastructure. A$6 billion in federal incentive grants generated A$20 billion in new infrastructure, the majority of it in New South Wales.
The U.S. DOT’s 58-page report on how it hopes to use the White House proposal for transportation infrastructure includes several pages on infrastructure asset recycling, citing Australia’s program and noting the major U.S. surface transportation P3 projects carried out thus far. It highlights policy proposals in the White House plan that would reduce barriers to P3 concessions, including an expansion of tax-exempt Private Activity Bonds to enable them to finance P3s for “brownfield” infrastructure in addition to their existing use to finance “greenfield” infrastructure.
The new Reason policy study draws on long-term P3 leases worldwide to make some ballpark estimates of the value that might be liberated from existing infrastructure such as airports, toll facilities, water & wastewater systems, etc. For example, toll roads and bridges have been valued in recent transactions at between 18.5 times and 35.5 times their annual earnings before interest, taxation, depreciation & amortization (EBITDA), with an average value of 26.2 times EBITDA. For the 42 largest U.S. toll facilities, the net proceeds could total between $175 billion and $230 billion. Three specific facilities are presented as further examples: the Bay Area Toll Authority, the George Washington Bridge, and the Illinois Tollway system.
Infrastructure asset recycling thus offers a double benefit for improving America’s infrastructure. It would shift responsibility for many aging existing facilities to world-class companies that would be contractually obligated to refurbish and modernize them under long-term P3 lease agreements. And it would yield many billions of dollars in asset value that state and local governments could use to develop needed, but unfunded, new infrastructure. Therefore, removing federal barriers to asset recycling and providing federal incentives for state and local governments to make use of asset recycling should be part of any 2019 infrastructure bill in Congress.
And for those who are skeptical that such a policy could be included in a bipartisan bill, remember that in 2014 a bipartisan task force of the House Transportation & Infrastructure Committee issued a landmark report endorsing long-term P3s for infrastructure. In addition, earlier this year the Bipartisan Policy Center announced its support for infrastructure asset recycling.
(This article first ran in the November 2018 issue of Surface Transportation Innovations.)
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CAFO emissions need not be reported

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Environmental groups are again suing EPA over its decision that air emissions from Concentrated Animal feeding operations (CAFOs) do not need to be reported to the public under federal statute.
EPA’s Emergency Preparedness and Community Right-To-Know Act (EPCRA) requires that air emissions (toxic & hazardous) of a certain quantity be reported to EPA. Releases from a normal plant operation or treatment process must be reported to the National Response Center as well as state and local authorities.
EPA has established reportable quantities of between 1 pound and 5,000 pounds. EPCRA requires this notification to the public so that officials can consider releases of toxic air pollutants that might need a response action by local authorities.
EPA decided where there is a release from a CAFO – and the release is continuous more or less, stable in quantity in rate – that there need not be reporting of these to the National Response Center every 24 hours.
This common-sense approach is of course not acceptable to environmental groups.
Getting in on the FARM Act
In April, 2018, the FAIR Agricultural Reporting Method (FARM) Act was passed by Congress. The FARM Act determined that animal air emissions were exempt from reporting under another act administered by EPA. This congressional action had the practical result of excluding the reporting of air emissions from CAFOs to state and local emergency responders. As a result, EPA decided and published on its web page that CAFOs did not have an obligation to report every 24 hours the air emissions coming from a CAFO if there had been an initial notification to the National Response Center before the FARM Act was passed.
Environmental group counterattack
On September 28, 2018, environmental groups filed a lawsuit in the U.S. District Court for the District of Columbia. These groups allege that a few large CAFOs emit dangerous quantities of toxic & hazardous gases sickening communities across the country, causing nasal and eye irritation, headaches, nausea and even death.
It is claimed by the environmentalists that EPCRA protects communities from toxic exposure to CAFO emissions by merely requiring CAFO operators to report their air emissions.
Please realize, all that is required is a report. No action is taken after a CAFO reports.
Environmental groups claim they are bringing their action on behalf of their members, supporters and those who live near CAFOs who live in close proximity to a CAFO that may “…release massive quantities of hazardous pollutants such as ammonia and hydrogen sulfide into the air they breathe.”
The plaintiffs against EPA are an interesting batch. Rural Empowerment Association for Community Help is a North Carolina non-profit that fights air pollution emitted from CAFOs and fights against “North Carolina’s lax regulation of hog waste disposal.” Animal Legal Defense Fund is a non-profit “…whose mission is to protect the lives and advance the interests of animals through the legal system.” This defense fund claims legal advocacy on behalf of farm animals who are directly harmed by air emissions inside CAFOs.
The Center for Food Safety is a non-profit which claims it is “…curbing the proliferation of harmful food production technologies and promoting sustainable alternatives.” It claims 75,000 members and seeks to protect the health and well being of those members and others from harmful air emissions from CAFOs. Another group, Don’t Waste Arizona, is an Arizona non-profit and claims it needs air emission data from EPCRA about CAFOs to protect the health and well being of Arizonans. (Apparently public health agencies at the federal and state level do not protect public health.)
Another environmental group, Environmental Integrity Project, is a non-profit that claims if EPA’s EPCRA non reporting exemption is upheld, it, too, will be denied information about toxic releases from CAFOs which are needed to protect the wellbeing of the rural communities. Of course, Humane Society of the United States (HSUS) is also involved in suing EPA to keep it from engaging in a common sense decision. HSUS has as its goal to “…ensure that its members are aware of, and not injured by, practices related to CAFOs releasing or otherwise discharging pollutants into the natural environment.”
While EPA attempts to help agriculture, and not create more bureaucracy, environmental groups continue to fight EPA in court as it takes a common sense approach to the reporting of air emissions from CAFO’s.
(This article first ran in Farm Future on October 24, 2018.)
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