Friday, October 23, 2015

When "The Solution" becomes "The Problem"...

Visit Clean Line's website touting the reasons Arkansas landowners should be comfortable with the Department of Energy granting this private company the right of federal eminent domain against unwilling sellers, and what do you find? "The Solution":



So, when does "The Solution" become "The Problem"? When Clean Line says things like this:



Opposition to the Plains and Eastern Project has been screaming for months that, should Clean Line (CLEP) get its way at the Department of Energy (DOE), they will be exempt from paying ad valorem taxes to counties within the state on both: 1) the transmission facilities within the state, and 2) the property that would be taken via federal eminent domain by the Southwestern Power Administration (SWPA). Clean Line has been touting the "ad valorem taxes" they would be paying to counties in Arkansas for at least the last year in an attempt to garner support from someone, anyone, in our state. The examples of Clean Line stating this are numerous: Here, here, here, and here. I am sure there are more, but I don't feel like looking for them, honestly.

The truth of the matter: If Clean Line is approved by DOE under their proposed terms, ALL transmission facilities and property obtained by the SWPA via federal eminent domain would, in fact, be tax exempt.


The Problem:

Clean Line has plainly admitted on the first page of the "Agreement" that their facilities will not only be exempt from any ad valorem taxation, but also that any payments that are given to counties are completely voluntary. Unless, of course, each of the twelve counties agrees to the terms of CLEP's agreement that their representatives have been busy bees distributing to them recently. So, given that fact, why is Clean Line still saying that they are going to be providing "tax revenues" to counties in Arkansas along the route? I don't know, but someone with authority should ask them. 

In addition, what happens to the tax revenues on the actual physical property that SWPA "opens up" via federal eminent domain? The portions of the parcels of land that would be owned by SWPA that property taxes are currently collected on would, presumably, become exempt from taxation as well. So, what happens if a large portion of landowners just say "no" in each county, and the SWPA is required to own a significant amount of parcels in those counties? What does that do to county revenues? Hypothetically, the revenues could either be a wash, or even a net negative.



The Problem:

In addition to plainly stating that they would be tax exempt in all counties, Clean Line is asking your county officials (you know, the ones you elected?) to guarantee them that the county wouldn't pass anything to "prohibit or materially burden the development, construction, or operation of the Project, or the enforcement of this Agreement" once it is signed. Read that a couple times for effect. Let's say landowners get really loud about this if it is approved. If your county has signed this agreement with Clean Line, you are powerless as a landowner to peaceably assemble and lobby your local government to do anything on your behalf against them. That seems important.

Further, Clean Line is setting the terms about how and when the "Agreement" can be terminated:


They do this by defining a "Company Default" and a "County Default" on page three: 




So, if a "Company Default" is defined as a "failure of the Company to pay when due the amounts set forth in Section 2" and "such Monetary Breach continues uncorrected through January 15 of the following year", what is the recourse for the county if Clean Line just doesn't pay? Well, Clean Line tells the county that they can break the agreement, or...? Who knows? Take Clean Line to court to enforce the agreement, presumably spending taxpayer money to do so?

Also, who determines that the county has executed a "County Default"? It appears like Clean Line is attempting to define what that would be, too. So, what happens when Clean Line says the county has "Defaulted"? It appears like Clean Line can terminate the agreement with the county. So, what does the county do? Again, take Clean Line to court, expending taxpayer money to try to attempt to enforce a voluntary agreement from this private company, or just not receive any money from CLEP anymore and they become tax exempt again... just as they would have been had the county not signed their agreement and agreed to shut out a sizable portion of citizens of the county in the first place? That seems important, too.

 Fourth Page:



The moral of the story here: if you are an affected party in any of the counties this monstrous private toll road would cross, if your county officials don't agree to shut you out of your right as a citizen to lobby your local government on your behalf, but instead to always side in Clean Line's favor: the county's not getting squat, PERIOD.

All that glitters isn't gold. Read carefully before signing any "solution" that Clean Line is offering... it may end up becoming the problem.


Monday, October 12, 2015

Germany is requiring new HVDC transmission lines to be buried, so why aren't we?

The German Federal Cabinet just required new HVDC transmission lines to be placed underground. Why? Apparently Germans object en masse to 150' tall, 200' wide transmission lines being constructed within a stone's throw from residences and marring beautiful countryside, too. Imagine that, right? According to the German Energy Blog:

On 7 October the Federal Cabinet (Bundeskabinett) approved changes of draft bill amending various laws concerning power line extension. The draft bill inter alia gives priority to underground cables instead of overhead lines in case of new high-voltage, direct current transmission lines (HVDC). 
Yesterday’s decision paves the way for a faster and supposedly more accepted grid expansion. This shall lead to more acceptance, as in many places residents raised major concerns against overhead lines, Federal Minister of Economics, Sigmar Gabriel said.
1. Priority of Underground Cabling for New HVDC Projects
The draft bill changes the provisions in the  Act on the Federal Requirement Plan (Bundesbedarfsplangesetz – BBPlG). Draft Sec. 3 para 1 BBPlG gives priority to underground cables in case of HVDC projects. Close to residential areas overhead lines shall be in general not admissible (Draft Sec. 3 para 4 BBPlG).
These changes concern primarily the major north-south routes as SuedLink (South Link) or South East HVDC. Both lines – originally planned as overhead lines – have faced substantial protest of the public, especially in the Federal State of Bavaria. With the amendments pubic acceptance shall improve.
2.  Extension of Pilot Projects for Three-Phase Electric Power Lines 
In opposition to HVDC lines the DC cable projects retain their character as pilot projects. The reason for this difference is that the risks (technical risks and costs risks) of underground cable are lower for DC transmission. Furthermore less experience exists.
Nevertheless the pilot projects shall be extended. The draft bill lists four projects in the BBPlG where an installation of underground cables is admissible if certain criteria are fulfilled (e.g. short distance to residential buildings: less than 400m in case of a zoning plan, less than 200m in outside areas). The draft BBPlG stipulates that an installation of underground cables is also possible if the criteria for an installation are only fulfilled for a section of the entire power line. 
3. Next Steps
The bill will now undergo the parliamentary process, including readings in the Bundestag. The aim is to conclude the discussions in  autumn, so that the law can enter into force quickly and the necessary planning of the transmission lines can be started or continued swiftly.

I had to use Google Translate to translate the document into English from German, but, according to the legislation directly: 
With the changes in the federal law requirements plan is for the planning and Construction of HVDC lines a priority of underground cabling in the Bundesfachpla- tion introduced. The broad acceptance of the citizens is a key element for the success of the energy turnaround. In particular, described the construction of HVDC lines There are special challenges. The increased use of underground cables can optionally contribute to the acceptance of these urgently needed Strengthening projects. From a technical point of view, between the AC and the DC area to distinguish. In the power transmission over long distances by means HVDC underground cabling has fewer risks in terms of technical implementation and the costs as a relatively underground cabling of rotation power lines over long distances. In addition, more experience is available with DC current underground cables over longer distances than with three-phase underground cables before.
and: 
In DC area, the existing principle that the route planning Overhead lines based vice versa. In HVDC lines underground cabling is the rule. In the vicinity of residential areas of the overhead line is even always un-admissible. This is the highest level of acceptance for this new Created DC lines. 
and: 
§ 3 BBPlG - new - is the central norm, the prioritization of underground cabling will be implemented for the new HVDC lines.
So, as a country, what are we going to do? Germany is already going through this. The people have spoken there, and they will continue to speak here: the status quo is unacceptable. The people will not be mowed over by a massive overhead HVDC transmission line in Germany that is necessary, and they most definitely will NOT be mowed over by a private LLC in the United States for a massive overhead HVDC transmission line that is absolutely NOT necessary.

Listen, I am a progressive. I don't get any money from the Koch brothers, and I sure don't think the Keystone Pipeline would be a fantastic addition to our country, but at least the states have the option of choosing whether or not to give eminent domain to TransCanada. I am in favor of renewable energy expansion, but it's going to have to be done properly. The technology exists to put things like this underground, despite what Clean Line tells you. One of the proposed transmission lines in Germany that caused this is a 500 mile, 500kV, 4,000mW HVDC line, the SuedLink. Sound familiar? Clean Line has only one reason they don't want to put it underground: return on investment for the executives and their billionaire investors.


But, you know what? I don't care about Clean Line's return on investment. What I care about is being treated with respect, my friends and neighbors being treated with respect, and I want to see our future infrastructure be built properly. There are going to be a lot of projects that come along. Some of them will be good ones, and some of them will be bad ones. Clean Line's projects, in my opinion, are bad ones, and they are being developed by, quite frankly, a few arrogant and potentially corrupt people. The people aren't going to accept that.

To any progressive lawmakers who may be reading this, or any others for that matter: If you want to get any of this kind of stuff done, you're going to have to start listening to the people. Bypassing state authority isn't going to do it, Senator Heinrich. The status quo is over. Social media will not allow the Clean Line model to work. It just won't. Take a lesson from the Germans who are a few years ahead of us.

Why are we all still here? I don't have an answer for you.