Robert Bryce On US Energy Policy.

Robert Bryce, a senior fellow at the Manhattan Institute, lays out a cogent "reality-based" analysis of US energy needs and policy in his new book, "Power Hungry."   This book is not a simple-minded, ideological rant.  On the one hand, Bryce opposes mountain top coal mining due to its ecological impact.  But, on the other hand, he is honest enough to recognize the policy implications of the fact that just one coal mine in Kentucky produces the equivalent of 75% of the energy produced by all wind and solar sources in the U.S. combined

Bryce says that energy policy must be based upon four imperatives: "power density, energy density, cost and scale."   Wind and solar power fail due to storage problems and weather.  He points out that Denmark, the poster child for renewable energy, nevertheless imports hydroelectric power from Norway and Sweden, relies heavily upon North Sea oil and coal, and increased its greenhouse gas emissions by 2.1 percent between 1990 and 2006.  Given the environmental cost of hydro-power ("ruining habitats for aquatic life"), oil spills, and coal mining, Bryce makes a strong case for heavier reliance upon natural gas, a relatively clean and readily available carbon fuel, as a bridge technology: "The smartest, most forward-looking U.S. energy policy can be summed up in one acronym: 'N2N'," for "natural gas to nuclear power."

The Democrat leadership in the Congress, which is figuring out where to go with energy legislation, would be well-advised to give Bryce's prescription careful consideration. 

The American Power Act - First Read Re: Coal

The coal provisions of  the Power Act appear to be designed to substantially increase the cost of coal and other forms of fossil fuel-based energy in the immediate near term, and, given the limits of available and anticipated carbon capture technology, to close down coal-fired power plants ten years from now. 

Title I, Subtitle C, titled "Coal" has three key provisions.  First, in Section 1415, it directs the Department of Energy to levy a $2 billion tax on "all fossil fuel-based electricity sold to electric consumers."  In other words, all electricity is taxed unless it is generated by nuclear, wind, solar, or hydroelectric plants. The tax will be paid by utilities but the bill is designed to allow utilities to pass-through the cost to consumers.  

Second, in Section 1441, the Power Act amends the Clean Air Act to set strict performance standards on coal-generated power plants, mandating CO2 emission reductions of either 50% or 65%, based on the date the plant is "permitted," beginning no later than January 1, 2020.   Given the state of carbon capture and sequestration technology, this will require coal-based electricity generating plants to reduce production or shut down, thereby reducing energy supplies and increasing consumer costs.  

Third, the Power Act generally confers EPA with extremely broad powers to regulate coal use in the United States.  Notably, the Power Act, in Section 1413, creates a "Council" to hand out federal funds to "support projects to accelerate the commercial availability" of carbon capture technology.  This "Council" will be a political body.  Its members must include, among others, "nonprofit organizations", "consumer groups", and unions.   Notably, private companies are not eligible for federal research funding, but "nonprofit organizations" are.