Arkansas Delegation Rolls Out the APPROVAL Carpet for Secretary Perry

I'm late. I meant to have this posted yesterday, but... life. Anyway, we're gonna keep this simple because some things don't need a lot of chatter...

On Monday afternoon, the Arkansas delegation filed the APPROVAL Act. 

On Tuesday, they sent a letter to newly confirmed Department of Energy Secretary Rick Perry. And it really perfectly distills the core issue with the Department of Energy's proposed participation in Clean Line Energy Partner's Plains & Eastern HVDC line:

Our objection to Clean Line’s application should not be viewed as a fight against renewable energy; we each understand the importance of having a reliable electricity grid and are strong advocates of a diverse energy portfolio, including wind, solar, hydropower, renewable biomass, and nuclear energy. Likewise, we do not take issue with the building of national infrastructure; robust infrastructure investments, including the enhancement of the electrical grid, are often productive undertakings.

Instead, our objections relate to the vast overreach the Obama Administration employed, allowing this project to skip the necessary protections which exist to protect state sovereignty and private property rights.

Throughout the history of electric transmission, factors for the approval of these lines have been reviewed and decided at the state level. As the nonpartisan Congressional Research Service has noted:

“The location and permitting of facilities used to transmit electricity to residential and commercial customers have been the province of the states (with limited exceptions) for virtually the entire history of the electricity industry. State and local governments are well positioned to weigh the local factors that go into siting decisions, including environmental and scenery concerns, zoning issues, development plans, and safety concerns”[1]

The rejection of the transmission line by Arkansas’s (PSC) forced DOE and Clean Line to resort to using Section 1222. This is the first time DOE has used Section 1222 to authorize the development, construction, or operation of transmission facilities, and the only partnership the Department has (to date) with an entity to do so.

Sigh. It's so good, right? Love those guys when it comes to this stuff... my Clean Line BFAPs. As to whether 1222 actually does give the DOE room to use eminent domain... I guess we'll wait and see what a judge has to say.

For a deeper dive into all of this stuff, please check out Keryn Newman's most recent blog post. She hits it as only Keryn can.

I should stop right here, but I can't. I promise I'm only going to address one of the reported responses to this legislation, though... And it actually didn't come from Clean Line (because we've all heard everything they say before. I read it and in my head I hear the noises grown ups make when they talk on Charlie Brown).

It actually came from the IBEW... Guys. C'mon.

Let me preface my comment by saying I am a freak for unions. I'm a Utah Phillips listening, Union Thugs following, right-to-work disdaining, union lover. However, "the IBEW strongly disapproves of politics getting in the way of American job creation"... Please. I'm assuming politics are fine as long as they actually create jobs then? It's just a problem when they get in the way?

Seriously, unions have got to stop allowing themselves to be used as corporate pawns. The whole concept of lifting and protecting the middle class goes out the window when you allow yourselves to be manipulated into strong arming regular people. You want jobs, we want you to have jobs... But we want to be kept whole, too. Is that not fair? We want bread, yes... but we want, what? What?? Roses too. Cripes.

 

Fake Newsiness

"A pre-inaugural list of top infrastructure projects, attributed to the transition team of President Donald Trump, doesn't reflect the administration's official views, White House officials say. 

In emails to the Arkansas Democrat-Gazette late Tuesday, presidential spokesman Sarah Huckabee Sanders said the list isn't a White House or a transition team policy document."

In my last solo blog post, I promised I would only write again if something really egregious

happened.

Guess what?

In the grand scheme of things, the 50 project infrastructure document "leaked" last week is not a big deal. Don't get me wrong, it's dubious as all get out. But the more that comes out about it's origins (consulting group= lobbyists), the clearer and clearer it becomes that this is more of a Governor's Association/Industry boner list than a well thought out proposal. If you're interested in reading more about the history of the list and don't have a subscription to Politico Pro, try these:

http://www.dallasnews.com/business/economy/2017/01/24/report-trumps-infrastructure-priorities-include-two-big-texas-projects

http://politics.blog.ajc.com/2017/01/25/donald-trump-tweets-a-motive-for-voter-fraud-claim/

http://m.dailykos.com/story/2017/01/25/1624695/-First-hints-of-just-what-might-be-in-Trump-s-infrastructure-bill-released-maybe-Or-not

Yes, you would expect some of these projects to be under consideration regardless of who was looking, but no... consideration doesn't equate to an action item. And in a time where "fake news" has become the rallying cry for anything one disagrees with, the fact remains (true, not alternative) that some of the reporting on this issue was grotesquely optimistic... I'm lookin' at you Arkansas Times ;) (P.S. If you're gonna quote a girl, call a girl) That witty, snarky banter makes for a nice echo chamber noise, but it's more truthiness than truth, Ernie. Why? Oh, because the truth is boring... and hard to get at... and maybe, just maybe, a little gray.

So, just for fun, let's talk a smidgen about permitting. I'm going to run defense for the entire Arkansas delegation for a minute here. Hold my coffee, Mr. Koch. Just kidding...

Ok, so both of the aforementioned Times articles push the idea that the delegation's support of the Keystone XL is evidence of their hypocrisy in terms of their stance on Clean Line. I understand. I get it. I cried for days after the election and I went to the Women's March in Little Rock. This last weekend was both heartbreaking and inspiring. We all approach issues from our own worldview. I believe there are valid reasons to challenge the delegation's general support of pipelines. And, honestly, if you want to go after them for taking money from the Koch brothers? Have at it. Just make sure you're publishing Clean Line's lobbying expenditures, too (Like you did on the $400 lunch)... And the AWEA... And every other moneyed special interest group that actually moves politics in this country.

If you want to go after them because of eminent domain, I'll pull your collar just a little, even though that's my primary area of interest. Same thing with permitting. Why? Because different types of infrastructure projects have different permitting requirements. Some happen at the state level (like transmission lines) and some happen at the federal level (like natural gas and some aspects of oil lines). Before we let our snark monsters rage at these guys, it's helpful to understand what's going on.

Keystone XL, DAPL, and Diamond require some level of federal permitting to build. Transmission lines, with a very few exceptions, are the providence of the state. Clean Line lost their bid for a CCN at the state level. Why? Because our state laws are not set up to permit merchant transmission lines without instate assets and with no mandate from an Regional Transmission Organization (RTO). This is not necessarily a bad thing depending on which side of the bench you're sitting on. If you're on Clean Line's side, it's a hindrance to development. If you're on the side of landowners, states rights advocates, and existing utilities, it protects the state and its residents from fly by night operations with no real intention of making a positive local impact. Mr. Dumas has no problem with Clean Line running to the Department of Energy (DOE) to kiss their CCN rejection boo-boo. Whatever, that's his prerogative, but the state legislature had a problem with it. So did the impacted landowners... And the federal delegation... because it's a valid complaint. Keep in mind that the legislation Dumas referred to was passed after Clean Line applied to the DOE, not before. They didn't try to fix it instate. They should have.

Now, if the argument is that the "balkanization" (they love that word, and all that it implies) of processes makes permitting huge projects like Plains & Eastern hard, there is every reason to have that discussion as a country, but you better bet your bottom dollar that the states aren't going to just roll over and hand the power that ensures their people are treated fairly to the feds. Especially if that means the feds use that authority to permit private projects that can't demonstrate necessity. Something tells me the RTO's won't be dancing in the streets about it either.

If anyone out there ready to rage against the delegation for their support of Keystone XL and DAPL... or Diamond for that matter, wants to help effectively (instead of just screaming into the abyss) they need to refocus their attention on the laws that govern regulatory agencies and the permitting processes that allow these projects to go through the way they do. Yelling at the delegation, the Corps of Engineers, or the PSC is like trying to put spilled milk back in a cup with a toothpick. If you want to effect change, you've got to change the laws. Bottom line... Or be ready to spend a lot of money on legal. The Diamond Pipeline is a four-hundred mile, 20" crude oil pipeline that was permitted without a comprehensive EIS because it didn't trigger a NEPA process and there is NO STATE LEVEL REQUIREMENT for one. If you're going to be pissed about something, be pissed about that.

Back to Clean Line... To be clear, both Keystone and DAPL were lacking permits that they needed to finish. In other words, there was a clear path the new administration could take to give those projects a push. How is that different from Clean Line? Well, for all intents and purposes, the Plains & Eastern project has been "approved" by the Department of Energy. Whether that "approval", or the process they used to get there, holds up in court is one thing, but the fact that they haven't started construction yet has nothing to do with the feds holding up their project and everything to do with the fact that Clean Line just can't seem to get it done. The Department of Energy set up specific requirements Clean Line has to meet before they will give them the go ahead to start construction on the line... These requirements (Conditions Precedent) for financing, subscription, etc... were established to protect the people of Arkansas, the SWPA, and the taxpayers in general. So what steps exactly could a new administration take to push P&E? Well, I don't know, but they'd have to be pretty creative. (By the way, if the new administration tried to get creative like that with a pipeline, the same people getting all warm and toasty over the possibility it could happen for Clean Line would be losing their marbles). And with all Skelly's bellyaching about changing the rules mid-process regarding the APPROVAL Act, they should be ready for a pretty significant backlash should they try anything sketchy.

While all these things seem kind of academic, it's pretty clear from Mario Hurtado's interview with NewsOK that the truthiness of this list isn't going to stop Clean Line from spinning it in a way they can use to preen (beg?) for financing and to pressure landowners.

"When the Trump campaign was looking at infrastructure, we thought it was a good thing to mention. We're just happy to be part of the conversation."

Like, when did you just happen to mention it? Did you run into them in the grocery store? How much did that conversation cost?

I'm not going to get into the potential psychological damage that comes from all these "nice" conversations my friend Mario claims to be having with people. I'm sure some of them probably are. Some of them probably aren't... and as I mentioned to an acquaintance the other day, we have a word for people who repeatedly contact you in spite of a clear request to be left alone. Who call you all the time and show up at your work and home uninvited. Who pressure you repeatedly into something you don't want to do, threatening you with financial harm. Who contact your family members to try and get in touch with you. Who make you feel alone and at risk... They're called "stalkers" and there is no other situation in society in which this kind of behavior is acceptable. By the way, is a "fair deal" an easement "option"?

This is already too long and I have other things to do today, but... in closing. There are three things everyone needs to remember in this somewhat surreal situation:

1. There is still an outstanding federal lawsuit against the Department of Energy regarding this project.

2. The Department of Energy has yet to announce that Clean Line has met the Conditions Precedent they need to move forward.

3. Lobbyists are constantly working on behalf of their clients. At the federal level and at the state level. So this kind of stuff... this "newsiness" is only the beginning. As the new administration settles in and establishes its goals, the swamp ain't going anywhere without a fight. And you can bet that whatever infrastructure plan, commission, or law finally takes place, it's going to have their greasy little fingerprints all over it. The ONLY way for people to get adequate representation in that process is for them to engage and fight for it. My generation was asleep and at war when the 2005 Energy Policy Act was passed. We've woken up. Stay awake.

My last blog post… Well, so I hope.

This is my last blog post.

At least it is barring some extreme Clean Line shenanigans. I’ve been meaning to write one for a while now. Ever since the Department of Energy’s Record of Decision/Participation Agreement with Plains & Eastern made it absolutely clear this project would end up in a courtroom instead of ending on Moniz’s desk. I don’t really blame the DOE for that decision… How many federal agencies stand up and say, “No, we really don’t have the power or authority to do XYZ”? It doesn’t happen. And in a way, this is better: Congress proposes, an administration acts, and judges rule. Is a law really a law before it’s been tested by fire? There’s this great line from Robert Graves' I Claudius: 

"Let all the poisons that lurk in the mud hatch out."

Courtrooms and the discovery process are pretty good places for the hatching out of poisons… And of redacted financial information.

So anyway, what prompted me to finally take up the keyboard for this quasi-final farewell was Clean Line’s self-aggrandizing press release following the defeat of Senator Boozman’s energy bill amendment (thank you, Senator) earlier this week. Don’t worry if you haven’t seen it. It’s not getting much exposure at this point. Maybe it will later. But either way, I promise you... you’ve heard Clean Line say everything in it before. Ad nauseum.

I mean… where to begin? Well, let’s start with the biggest shock. Where is Louis Schmoll? Louis, the landowner from Atkins who gets trotted out and quoted every. single. time Clean Line needs to show how Arkansans support their project. Not enough space to include him and/or Bob AND industry reps perhaps?

Instead, how about we begin with Micheal Skelly’s pleasure at the “bipartisan” nature of the vote? Guess what other big vote was bipartisan? Go on... Guess...

If you were thinking of the 2005 Energy Policy Act, you'd be correct. It passed by an almost 3/4ths majority mix of D&Rs. Compared to that vote, this week’s vote, a.k.a. the “vote to say no” (gag), looks a little weak. And pretty clearly, there are a number of senators ready to tug the reins at the DOE. Is that partisan? Meh, maybe somewhat. But “partisan” isn’t the answer to everything and, if there’s anything we’re learning from this election cycle, it’s that where the politicians are is vastly where the people aren’t.

Now, if you had actually read Clean Line's press release, depending on your point of view, you could have interpreted just a whiff of desperation. A kind of… “Look at us! We won! Pleeeeeeease look at us!” sorta thing. But what exactly did Clean Line “win”? Not much. Legally, this changes nothing. Not the vagueness or contradictions in 1222. Not the attempted application of the law by the DOE. And certainly not the applicability of Plains & Eastern to that law.

They got the adamant support of New Mexico Senator Heinrich (wonder why... WAPA territory, maybe?) and the support of Senators Lankford and Inhofe- yes, he of "snowball on the floor" climate change denying fame- (R-OK) and McCaskill (D-MO). Oh, if only us little people had had an extra $400k to spend in DC last year…  

So, I ask again, what did they win? Besides the chance for the continued confidentiality of certain financials? Well, they won the opportunity to have a senator get up and argue, on the record no less, that Boozman’s amendment… this little report to ensure transparency and fiscal responsibility… is a "job killing amendment". (@3:15:00) Really? Because Plains & Eastern is so vulnerable a report could kill it?

0.o

Yikes. With friends like that, who needs enemies?


Arrivederci


P.S. Omg- I didn't expect to be back so soon. I wrote this on Friday morning. It's now Saturday and all I can say is... clearly, nothing quite has the power to draw the poison out like another proposed amendment. This one, announced by Senator Cotton yesterday afternoon, blocks funding for 1222 projects (thank you, Senator). The response from "Clean Line" was truly breathtaking. Take a look at the sky above you, folks, because if this amendment passes, that sucker is coming down! D.O.W.N! Down! I think they covered just about every threat in the capitalist handbook: Hostile business environment? Check! Harder to build infrastructure? Check! Job KILLER? Check! Higher energy bills? Check! 

Except that... Well, in the interest of time, just read this.  And this. Or, like, open the business section of the Democrat Gazette.

The thing that really grinds my gears, though... The one thing in that statement that doesn't make me snicker into my coffee even a little is the argument that this is going to cause higher energy bills. And to me, it's kind of a perfect example of what I don't like about Clean Line. It assumes we'll pay a higher rate than what they say they can provide for us and presents that as if it were already a reality. The bottom line is that you can't lose what you don't already have.

Finally, this is it I promise, we have this gem: 

The company said the amendment is “a clear example of political meddling targeted at one company and changes the rules in the middle of the game, after tens of millions of private dollars have been invested. The Cotton amendment hurts American consumers and business by undermining the law that was passed under a Republican administration with bipartisan support. 

I have been very careful never to curse on this blog, but oh, how I want to... Instead I'm going to put on my cleanest Battlestar Galactica uniform and say... Frack you, buddy. Frack you.

How about this instead:

Clean Line spending hundreds of thousands of dollars on lobbying efforts in Washington D.C. in direct opposition to the APPROVAL Act is a clear example of big business meddling targeted at a small group of landowners and changes the rules in the middle of the game, after those landowners have spent their lives building sweat and financial equity in their properties, paying their taxes and living like decent human beings. The Cotton amendment is yet another attempt to protect those individuals and their state by bringing attention to a vague and contradictory section of a law that was passed in the era of Cheney's Energy Task Force with a glut of lobbying dollars spent on behalf of industry to provide them with a "piñata of perks".

Meddling.  Phooey.