Keystone may seem a bit off topic for this group, but perhaps still worth
thinking about as it really, in a way, influences the seriousness of
addressing the climate change issue and so the potential need for
geoengineering in the future:

What would be an interesting outcome in the Keystone decision, in my view,
would be for the President to, as part of the settlement of the
Environmental Impact Statement analysis (so approving but with conditions),
find the need for remediation for the consumption of the fossil fuels that
is equivalent to the Social Cost of Carbon (SCC). The SCC has been set and
used by the Administration in considering priorities among policies relating
to fossil fuels, efficiency, etc. I realize the value of Social Cost of
Carbon is currently considered low (by a factor of a few to several), so the
charge for importing would need to be indexed to the Social Cost of Carbon
at the time the fuel is transported across the border. This would, in
effect, impose the equivalent of an appropriate carbon tax on the
consumption of at least that segment of our use of these fossil fuels (and
use by others if products are to be exported). To get this covering a larger
share of US fossil fuel use, I have also been suggesting this be done in
other areas‹for example, through the EIS for ongoing leasing of lands for
coal mining from public lands. I would think imposing this requirement as
part of an EIS approval would be possible by the Administration without
Congressional action (of course some would object). In my view, taking such
an action would much more clearly make the case for national action on
climate change policy.

There is also a very interesting provision in Section 526 of the 2007 Energy
Independence and Security Act, which was passed by a bipartisan Congress and
signed by President Bush, so how can this law of the land not be something
that the President should be acting to enforce as bipartisan policy? You can
see the Act at 
http://www.gpo.gov/fdsys/pkg/BILLS-110hr6enr/pdf/BILLS-110hr6enr.pdf  (and
yes, it seems to require the duplication present in the URL). The provision
basically prohibits the Federal Government from buying transportation fuels
with a higher carbon footprint than conventional petroleum (so applies to
fuels from the Canadian tar sands and, interestingly, also from
Venezuela)--the EIS on Keystone actually estimates how much more carbon is
involved, but does not link the calculation to the Act. Thus, technically,
any employee of the USG can¹t purchase such fuels anywhere, which does
complicate its implementation (e.g., if a USAF plane has to refuel in
Canada). There has already been a lawsuit seeking to force the US Dept of
Defense to include this provision in its solicitations for fuel purchase
agreements‹the lawsuit failed to gain standing (very strange when citizens
can¹t get a hearing in the court seeking only an order that a government
agency obey the law), but the DOD did commit to an EIS on the matter (I am
not sure where that matter is at present). Adding the Social Cost of Carbon
to the fuels as a remediating action could, in some sense, be argued to
create a balancing here‹or perhaps this could force Canada to take actions
to sequester a balancing amount of carbon for the products to be exported
into the US.

I¹m not a lawyer, but were I in the position to push such actions (and I¹m
not), I¹d be pushing the limits here, at the very least to force a greater
discussion of the issue. With all of this made clear as a card in the
President¹s hand, one would think that there might be the possibility of a
deal‹though we have heard that type of argument before and no deal has
resulted, so, my view is, impose the SCC where it can be done and then start
talking about how to advance from that point (so play your hand more
aggressively than in the past).

Mike



On 1/11/15 8:31 AM, "Brian Cartwright" <[email protected]> wrote:

> Thanks for weighing in, Andrew. I agree that pricing is the effective signal
> in this market; note that there are not major investments being made in
> infrastructure like refining, because there are not secure long-term new
> supplies. This is an opportunist industry at this point. Saudi pricing
> leverage is having greater effect than activism, unfortunately.
> 
> If I were dictator there would be a tax to level prices, neutralize price wars
> and incentivize clean energy.
> 
> Brian
> 
> On Sunday, January 11, 2015 at 7:06:06 AM UTC-5, andrewjlockley wrote:
>> With my moderator hat on....
>> 
>> If people think this is an appropriate topic for the list, it would be
>> helpful to have some numbers to demonstrate why.
>> 
>> The pipeline would have to make a significant difference to price globally to
>> significantly increase the quantity of FF demanded by the market. Will it do
>> this? I have seen no evidence here, or elsewhere. If not, this is off-topic.
>> 
>> Without my moderator hat on...
>> 
>> My personal view is that carbon taxation or energy-efficiency regulations are
>> far more effective a tool to manage carbon output than what environmentalists
>> call "site battles" (squabbling over this-or-that piece of infrastructure).
>> Site battles lead to haphazard and irrational decisions.
>> 
>> As an aside: The pipeline could potentially be reused in the post-oil age to
>> redistribute hydrogen, biofuels, water, etc.
>> 
>>> 

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