[youtube:http://www.youtube.com/watch?v=UGt3YheyE4E 285 234]
January 2012
In the Politico today, there’s a story about how the Natural Resources Defense Council is advising the White House Correspondents’ Association on how to “go green” with their annual dinner. They seem to be taking this very seriously:
Every two weeks, the greening team — including [NRDC senior scientist Allen] Hershkowitz and representatives from the Hilton — held a conference call to make sure every procurement decision and operation at the event would be as green as possible.
The story goes on to explain that they will be offsetting all of the energy use associated with the dinner – including the private jet to fly host Jay Leno out from L.A. and back. With advice from the Portland-based nonprofit the Bonneville Environmental Foundation, they’ve purchased an undisclosed amount of carbon credits. According to Politico‘s Lisa Lerer, “Credits purchased for the dinner will help fund the Tatanka Wind Farm on the North Dakota-South Dakota border.”
So far, so good. Except that the Tatanka Wind Farm is already up and running – it went online in July of 2008. The project’s $381 million budget was financed by GE Energy Financial Services and Wachovia. And it’s operated by Acciona Energy, a multi-billion dollar Spanish conglomerate with 40,000 employees and operations in 30 countries.
So, my question is, who is getting the White House Correspondents’ Association’s money? The shareholders of Acciona? GE and Wachovia (now Wells Fargo)? It’s one thing for carbon offset money to, for example, fund a nonprofit organization in the developing world to manage a reforestation project, but how does it make any sense to pay money to a Spanish corporation for operating a wind farm that’s already been privately financed and has been producing energy for almost two years? Am I missing something here?
If you work for the Department of Energy’s Federal Energy Regulatory Commission, a regulation requires you to keep records of your off-the-record communications.
Which means off-the-record communications aren’t really off the record.
In fact, 18 CFR 385.2201(b) requires FERC to post a notice in the Federal Register whenever this happens. There was one today, for example. It’s public!
Which brings up the following conundrum: if FERC policy is that off-the-record communications are actually on the record, then there are no off-the-record communications. Therefore, regulations applying to off-the-record communications are at best redundant , because there are no off-the-record comments.
Oh, never mind.
“Representatives at three levels of California government were quick to call for economic measures against neighboring Arizona this week in the wake of its passage of a tough new immigration law. . .On Tuesday, seven members of the Los Angles City Council signed a proposal for a boycott that urged the city to ‘refrain from conducting business’ or participating in conventions in Arizona. Also on Tuesday, San Francisco Mayor Gavin Newsom imposed an immediate moratorium on city employees traveling to Arizona. And California Senate leader Darrell Steinberg said the state should consider a boycott of Arizona. He sent a letter to Gov. Arnold Schwarzenegger, asking which Arizona businesses and government agencies California does business with.”
California officials are being hypocritical to attack Arizona, given that Arizona’s new immigration measure is actually far less sweeping than one California adopted in 1994, which was invalidated by the federal courts. (That California law, Proposition 187, would have barred illegal-immigrant children from the schools — something Arizona has not done.) Even liberal law professors like Jack Balkin who vehemently dislike the Arizona law admit that it may be constitutional, and that it “was deliberately written” to comply with the standards laid down by the Supreme Court’s 1976 De Canas v. Bica decision, which upheld a state’s ban on hiring illegal aliens. Arizona’s law was drafted by a noted legal scholar and former Bush administration official, and while it contains some unwise provisions and furthers a misguided political agenda, that does not make it illegal.
These boycott calls by California officials are unprincipled and have nothing to do with any belief in freedom of movement. Mexico has far more onerous immigration restrictions than Arizona does, including harsh prison sentences for illegal immigrants (most of them fleeing the much poorer countries to the south of Mexico, which make Mexico look rich by comparison), and bans on political activity by legal and illegal aliens alike. But California officials don’t care about those immigration restrictions, and have no problem conducting business with Mexico or visiting it. They reserve their vitriol and boycotts for fellow Americans.
Moreover, for California to impose sanctions against residents of a sister state like Arizona may well violate the Constitution. As Justice Cardozo observed in Baldwin v. G.A.F. Seelig, Inc. (1935), “the Constitution . . . was framed upon the theory that the peoples of the several states must sink or swim together, and that in the long run prosperity and salvation are in union and not division.”
A variety of constitutional provisions restrict discrimination against residents of other states in various contexts. In cases like United Building and Construction Trades Council v. Mayor of Camden (1984), the Supreme Court has said that the Privileges and Immunities clause of Article IV of the Constitution generally forbids states from discriminating against the residents of other states in things like employment on public works. (Aliens, by contrast, are not entitled to the protections of this provision.)
The Equal Protection Clause also sometimes forbids states to discriminate against residents of other states. (See Metropolitan Life Insurance Company v. Ward (1985)).
The dormant-commerce clause limits state discrimination against businesses and commerce from other states (see, e.g., Baldwin v. G.A.F. Seelig, Inc. (1935)), and although there is a limited exception to that rule for government contracts, that exception does not allow state or local governments to use its power of the purse to pursue essentially regulatory measures aimed at other states (like attempts to meddle inside another state), as opposed to merely promoting a state’s own economic development (see South Central Timber Development, Inc. v. Wunnicke (1984)).
CEI Weekly is a compilation of articles and blog posts from CEI’s fellows and associates sent out via e-mail every Friday. Also included in the Weekly newsletter is a brief description of CEI’s weekly podcast and a feature on a major CEI breakthrough made during the week. To sign up for CEI Weekly, go to http://cei.org/newsletters.
CEI Weekly
April 29, 2010
>>CEI Urges Senate to Reject Ruinous Financial Reform Bill
This week CEI joined a coalition of think tanks and activist groups in sending a letter to Republicans urging them to filibuster the financial reform bill known as the “Restoring American Financial Stability Act.” The letter was posted on National Review and The American Spectator. Read the letter here.
>>Shaping the Debate
Free the Data, Save the Science
Chris Horner’s citation in the Wall Street Journal Europe
“In the U.S., where last year’s Recovery and Reinvestment Act stimulated climate-change research to the tune of $35.7 billion, there exist few enforcement mechanisms for those seeking to examine the fruits of that investment. That helps explain why it took Competitive Enterprise Institute scholar Christopher Horner more than two years, and the threat of legal action before he finally received temperature information as requested from NASA’s Goddard Institute for Space Studies.”
FTC Should Green-Light Google-AdMob Deal
Ryan Radia’s op-ed in Forbes.com
Andy Stern’s Debts
Vincent Vernuccio’s op-ed in the Washington Times
Wall Street Shuffle: Their ‘Huge Playground’ is Safe
Chris Horner’s op-ed in the Daily Caller
Fly the Free Skies
Iain Murray and Roger Abbott’s article in the Washington Examiner Opinion Zone
Beware the Financial Trojan Horse
Hans Bader’s op-ed in the Daily Caller
How Cap and Trade was ‘Trashed’
CEI cited in NPR.org
>> [Video]CEI’s Marlo Lewis Appears on RT Alyona Show
CEI’s Marlo Lewis appeared on RT’s The Alyona Show to talk about Earth Day and its link to global warming alarmism. Watch the interview here.
>>Best of the Blogs
ObamaCare Will Raise Insurance Premiums and Health Care Costs, Perhaps Bankrupt Hospitals, Federal Officials Admit
By Hans Bader
FDA Salt Statement Leaves a “Mistaken Impression”
By Dan Compton
>>LibertyWeek Podcast
Episode 90: Jerry Brito’s Surprisingly Free
Richard Morrison, Jeremy Lott, and Jerry Brito bring you episode 90. We take a look at immigration in Arizona, expanding finance regulations, myths about green energy, porn at the SEC and Jerry’s Mercatus Center technology project, Surprisingly Free.
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The clever video trailer for Matt Ridley’s soon-to-be-released book The Rational Optimist: How Prosperity Evolves, has the theme that “everybody is working for everybody else” to provide enormous choices that kings couldn’t command.
Here’s an excerpt from the description of the book:
Yet Matt Ridley does more than describe how things are getting better. He explains why. Prosperity comes from everybody working for everybody else. The habit of exchange and specialization—which started more than 100,000 years ago—has created a collective brain that sets human living standards on a rising trend. The mutual dependence, trust, and sharing that result are causes for hope, not despair.
This bold book covers the entire sweep of human history, from the Stone Age to the Internet, from the stagnation of the Ming empire to the invention of the steam engine, from the population explosion to the likely consequences of climate change. It ends with a confident assertion that thanks to the ceaseless capacity of the human race for innovative change, and despite inevitable disasters along the way, the twenty-first century will see both human prosperity and natural biodiversity enhanced. Acute, refreshing, and revelatory, The Rational Optimist will change your way of thinking about the world for the better.
On Bankstocks.com Thomas Brown has a clever piece about why a new consumer financial protection agency doesn’t make any sense. He describes a commercial bank he visited where six FDIC consumer protection people were sent to examine the bank’s consumer loans.
Here’s the problem: the bank that the six regulators were planning to camp out in for two weeks doesn’t make consumer loans. It’s a business bank, whose consumer loan book consists of all of 20 loans that add up to a grand total of . . . . $1.3 million.
Do the math, and, per regulator, that works out to just over three loans of around $217,000 each. Two weeks! Thus you see the bureaucratic mindset at work. What in the world can those people be thinking?
I can’t think of a better illustration of why a new regulatory bureaucracy would be totally pointless.
As Brown notes, the U.S. financial system already has a myriad of regulators — and did that do anything to avert the financial crisis?
He cautions policymakers about hurrying to create a new regulatory watchdog:
But more regulation doesn’t equal better regulation-particularly when, under the current system, some bureaucrat somewhere thinks it’s a great idea for six people to spend two weeks poring over 20 loans. Before Congress creates any new agencies, it ought to have confidence that the existing ones are effective.
Check out his earlier piece on the same topic.
H/T Carl W.
Well, it’s not really so old. I’m referring to a March 10, 2009 letter by atmospheric scientist John Christy to EPA Administrator Lisa Jackson. I post it on Open Market and GlobalWarming.Org because it is hard to find on the Internet, and Dr. Christy makes a key point that will need to be made again and again in the upcoming Senate battle over the Murkowski resolution of disapproval to veto EPA’s endangerment finding.
The endangerment finding is the statutory prerequisite for the joint greenhouse gas/fuel economy standards rule that EPA and the National Highway Traffic Safety Administration (NHTSA) finalized on April 1, 2010. Veto the endangerment finding, Murkowski foes warn, and NHTSA will have to ”de-couple” its portion of the joint GHG/fuel economy rule, which could delay by a year implementation of model year 2012 fuel economy standards.
Well, boo-hoo! Keeping the model year 2011 standards in place for an extra year would make no perceptible difference in atmospheric CO2 concentrations, average global temperature, weather patterns, or public health, even if one assumes that climate change is a big problem.
Christy’s letter puts this in perspective. For the sake of argument, Christy adopts the IPCC’s warming projections for its mid-range (A1B) emissions scenario. Even if the United States were to adopt immediately a 43 mpg fuel-economy standard, the net reduction in average global temperature would be 0.01°C in 2100. Such a change would be too small to detect. Even more microscopic would be the impact of the 34.1 mpg standard that NHTSA and EPA want to phase in by model year 2016. Whether that standard is delayed for a year or implemented on schedule is climatologically irrelevant.
In contrast, the economic and safety benefits of a one-year delay could be substantial. The distressed auto industry would not have to spend an estimated $5.9 billion in incremental technology investments (Table 4A.5-6) in model year 2012.
In addition, slower implementation of economy standards would slow the pace at which automakers decrease average vehicle size and weight. Reducing vehicle weight and size is a vintage method of improving fuel economy — but it also negatively affects vehicle safety. NHTSA’s 2002 fuel economy report concluded that regulatory-induced vehicle downsizing contributed to 1,300-2,600 fatalities and 13,000 to 26,000 serious injuries in 1993, a typical year.
EPA and NHTSA struggle to belittle the size-safety tradeoff in their joint rule. However, they do include a “worst-case” scenario in which the new standards cause an additional 493 deaths in model year 2016 (see p. 144). Slowing the pace of fuel economy regulation would save lives.
In a splintered ruling, the Supreme Court ruled that a trial judge erred in issuing an injunction against a cross honoring veterans. It left open the possibility that the judge could issue an injunction all over again if he makes certain findings, although it suggested that the cross could probably remain in the midst of public land as long as the parcel of land immediately around it is transferred to private hands. (The trial judge had found unconstitutional a federal law transferring the parcel of land immediately around the cross to private hands, since that parcel was surrounded by public land, in Salazar v. Buono.)
Five of the nine justices seem ready to affirm a federal appeals court ruling in Doe v. Reed that opponents of gay marriage cannot invoke First Amendment-based privacy rights to keep their identities confidential after signing a ballot petition to prohibit gay marriage. (The Institute for Justice discusses the case here.)
President Obama has nominated the controversial Judge Robert Chatigny to the U.S. Court of Appeals for the Second Circuit. Chatigny unsuccessfully attempted to block the execution of serial murderer and rapist Michael Ross, the “Roadside Strangler,” saying that his “sexual sadism” should be a mitigating factor barring his execution — even though Ross himself did not claim that his death-sentence was in any way inappropriate. Yet Democrats and even a few Republicans are likely to vote to confirm Chatigny.
Obama has also nominated the radical lawyer Goodwin Liu to the Ninth Circuit Court of Appeals. Liu is hostile to “’free enterprise, private ownership of property, and limited government.’ According to Liu, these are ‘code words for an ideological agenda hostile to environmental, workplace, and consumer protections.’” Liu also believes in “a constitutional right to welfare.“ Liu is also a big user of politically-correct psychobabble, writing that a judge is supposed to be a “culturally situated interpreter of social meaning” rather than an impartial umpire who interprets the law in accord with its plain meaning or its framers’ intent.
Bar association standards say lawyers are supposed to have practiced law for at least 12 years before being nominated to a judgeship, and should also have “substantial courtroom and trial experience.“ Liu has no trial experience, and had not even been out of law school for 12 years at the time he was nominated, meaning he was by definition unqualified under ABA standards. But a liberal ABA committee, showing ideological bias, rubberstamped his nomination anyway, ignoring his lack of the required qualifications, since its members shared his extreme political views.
The Ninth Circuit, to which Liu was nominated, already contained a lot of left-leaning judges. The Wall Street Journal criticizes a recent 6-to-5 ruling by the Ninth Circuit allowing six atypical female employees to bring a multibillion dollar class action lawsuit against Wal-Mart in the name of 1.5 million female employees. The plaintiffs’ lawyers sought at least $450 billion! The intellectually dishonest ruling allowed just six employees to bring a national class-action even though Wal-Mart’s hiring and promotions are decentralized and not done on a company-wide basis, and national class-actions are supposed to challenge a company-wide practice. I have explained why the Ninth Circuit’s earlier 2-to-1 ruling against Wal-Mart was an abuse of basic legal principles.
Although the lawsuit will affect employees and managers across the country, a verdict will be rendered by a left-wing jury drawn heavily from San Francisco, since the plaintiffs sued Wal-Mart in one of the most anti-employer judicial districts in America, the Northern District of California, which is based in San Francisco. My relatives, (relatively) moderate Democrats, live in San Francisco. They lament the fact that to San Francisco juries, lawsuit defendants are presumed guilty. The gender-based chip on the shoulder of many San Franciscans is exemplified by the legion of bumper stickers saying that “a woman needs a man like a fish needs a bicycle” and “I believe you Anita.” (My classmates at Harvard Law School were a liberal bunch, but when law professor Richard Parker asked them if they knew whether Anita Hill was telling the truth, 80 percent of them confessed that they did not. But San Franciscans, unlike law students, aren’t troubled by conflicting evidence, since they know that the defendant is always guilty in a sex discrimination case.)