Senate GOP tries to gut governor's coal E.O.

by: Eric B.

Thu Dec 17, 2009 at 14:57:00 PM EST

Update! ... Onward, into the House.

What awful, stupid legislation:

(15) IN MAKING A DETERMINATION ON AN APPLICATION FOR A PERMIT
19 TO INSTALL AN ELECTRIC GENERATING FACILITY, THE DEPARTMENT SHALL
20 NOT REVIEW OR CONSIDER ANY OF THE FOLLOWING:
21 (A) THIS STATE'S NEEDS FOR ELECTRICITY.
22 (B) ALTERNATIVE METHODS FOR ELECTRIC GENERATION.
23 (C) ALTERNATIVES TO THE CONSTRUCTION OF ELECTRIC GENERATING
24 FACILITIES.

Passed the Senate, 21-15 (party line with hunter and garcia excused). I hear that someone is saying that the environmental community has gotten behind this ... the  permitting of coal plants to be built in this state wihtout consideration of alternatives or even the associated proections for ratepayers. That would be a most interesting thing for the environmental community to do ... to reverse itself wholesale on its most basic position taken these last two years.

Meanwhile, I hear that this is tie-barred to two other pieces of legislation, one that would essentially privatize the permitting process, and one that would forbid the state from setting tougher environmental standards than the federal government. The first one raises no end to questions about whose interests are primarily served; and the second is just plain batty ... the same people who yell and holler about the 10th amendment and states rights ceding state authority back to the federal government.  There are reasons for that, and they have not a thing to do with political philosophy.

Hopefully this stuff gets held under water in the House until the bubbles stop rising.  Hopefully, Andy Dillon won't see this as a prime opportunity to finally make a break from the Democratic Party while also helping to kill the one burgeoning industry (green energy) we have in this state.

Update! ... In case you're maybe a bit confused by this post, here's what these eight lines of this legislation would do:

The Legislature passed its energy legislation permitting new coal plants on the grounds that we need the energy and also have no other suitable alternatives.  These assessments were carried out for Consumers' proposed Karn-Weadock expansion near Bay City.  Surprise, surprise, surprise ... the increased demand for electricity on which that energy legislation was based turned out to be a Will-O'-the-Wisp. Demand is expected to decrease, not go up, and the coal plant is not needed at this time.  Republicans and conservative Democrats yelled and stamped their feet that the governor was being mean to them, even though the rules according to how they crafted them were followed. Now, they're trying to change the rules and undo what at the time was hailed as a compromise to move Michigan forward.

In the meantime, demand for electricity has continued to decline (even as the energy bill has helped to push electric bills up) and Consumers now finds itself with a coal plant the costs for which would climb even as its customer base and demand for electricity continue to decline, and as the green energy sector has grown.  The Senate bill above would permit Consumers an easier road to build that plant, the costs for which would be passed on to ratepayers.  Again, that base or ratepayers is declining as people leave the state and factories close.  The costs for the plant are continuing to climb.  So, the Legislature is trying to help push Consumers into a spiral where costs for their coal boondoggle go up, customers respond by finding ways to use less energy or shift to alternative means of production, which means fewer sources to spread those costs around to.  Consumers will have no choice but to hike rates (as permitted by the energy law), which will force more customers to find ways to use less electricity or generate their own.  Meanwhile, sometime in the near- to mid-future, carbon emissions will come with a pricetag, which will push costs for ratepayers even higher.

The whole thing is so thoroughly stupid and short-sighted that if it didn't involve the state Legislature, I'd have a hard time believing that it was real.

Update2! (Below the fold)...

Here's a section that is purely punitive and purely aimed at the DEQ.

(11) BY AUGUST 1, 2010, THE DEPARTMENT SHALL PREPARE AND UBMIT TO THE GOVERNOR, THE LEGISLATURE, THE CHAIRPERSONS OF THE STANDING COMMITTEES OF THE SENATE AND HOUSE OF REPRESENTATIVES WITH PRIMARY RESPONSIBILITY FOR ENVIRONMENTAL PROTECTION ISSUES RELATED TO AIR QUALITY, AND THE CHAIRPERSONS OF THE SUBCOMMITTEES OF THE SENATE AND HOUSE APPROPRIATIONS COMMITTEES WITH PRIMARY (S-1) TMV ESPONSIBILITY FOR APPROPRIATIONS 1 TO THE DEPARTMENT A REPORT THAT BENCHMARKS ALL INFORMATION IDENTIFIED IN SUBSECTION (8)(C), INCLUDING THE AVERAGE TIME TAKEN TO PROCESS PERMITS, WITH THAT OF THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION 5 STATES. THE REPORT MAY CONTAIN BENCHMARK INFORMATION FROM ADDITIONAL STATES.

This is basically in response to complaints that the DEQ and MPSC have been sitting on the permits. Of course, since there's really no review taken for the coal plants -- like to determine whether they're really a necessary risk to be schluffed off on rate payers -- then why not issue them immediately?

What God awful legislation this is.