Delaware chatter (microblogs)

To keep up with Delaware Chatter and other important activity, follow SAFE on Twitter.  

5/20/12, A1/A6/A7, Debate seeps into Del.: Fracking discovery stirs concern, Jeff Montgomery – Long and involved article elaborates on Governor Markell’s resistance to fracking regs proposed by Delaware River Basin Commission, with DNREC Secretary Colin O’Mara and environmental critics doing the talking.  Sample from O’Mara: “We’ve done a lot of work comparing and contrasting the draft DRBC regulations with those in other parts of the country as with New York’s proposed rules.  In many cases, we believe the DRBC’s proposed regulations fall short.” [Sounds like the idea is that the strictest rules are invariably right.  Who is looking out for the interests of business and of energy consumers?] The only new element versus recent reports is that some fracking wastewater – mixed with other industrial wastes, not fracking wastewater per se – were formerly being treated at DuPont’s Chambers Works plant in NJ and then released in the Delaware River.  The operation was discontinued as of March 30, and DuPont is currently only treating its own industrial waste streams.  Still the prior practice is seen as cause for alarm because (a) NJ has oversight over Chambers Works, and (b) DuPont never told Delaware that treated fracking wastewater were being released in the Delaware River.  It’s been our feeling that the concerns about fracking on Delaware’s part are overblown, and nothing in this article seems to indicate otherwise.  Are four layers of regulation (federal, DRBC, PA or NJ, and DE) really needed for this comparatively benign and economically useful activity?

5/20/12, B1/B3, Study shows pollution jump; Air near Del. City refinery sees rise in chemicals, soot, sulfur, Jeff Montgomery – Predictably, now that PBF Energy has restarted the refinery in Delaware City, which Gov. Markell and others took a big [and in our view deserved] bow for as a job-creating venture, environmental activists are looking for – and to some extent finding – environmental problems.  PBF initially funded localized monitoring within a mile of the plant site; a grant from a polluter penalty fund paid for this year’s monitoring.  “This gives a picture of air quality in Delaware City,” said one of the activists, “that isn’t being captured by the state.”  DNREC officials reportedly “could not be reached for comment late Saturday.”  Why is anyone surprised that refineries are not completely clean?  Sorry, these people want to “have their cake and eat it too,” and that is not possible.   

5/19/12, A6, SEU reforms board, policies; Changes made to procurement, leadership posts, Aaron Nathans – A co-chair will not be appointed to replace Professor John Byrne;  Sen. Harris McDowell will become the unitary chair.  Two new posts were created and filled: Vice chair Randy Day; Secretary-Treasurer Khristopher Knight.  From now on, competitive bids will be sought for contracts over $25K.  So much for the “new leadership elections.”

5/18/12, A19, Wasteful SEU is a tribute to inefficiency, David Stevenson – In a response to the rebuttal (5/8/12) of his original (4/18/12) column, the Caesar Rodney Institute’s energy expert renews a challenge to the charter and record of the Sustainable Energy Utility.  The basic issue is whether the SEU has or has not “burned through more than $100 million in three years with virtually no accountability to anyone,” a charge that Rep. Harris McDowell and Professor John Byrne essentially called a lie in their rebuttal.  This response identifies components adding up to $108M: (1) sale of $73M in tax-exempt bonds (effectively guaranteed by taxpayers, albeit indirectly) for expenditures on public buildings; (2) $20M in federal stimulus money; (3) $15M from electric power consumers via the Regional Greenhouse Gas Initiative.  Source for claim that 980 jobs have been created is examined and found wanting: “only 65 permanent jobs may be created at a cost of $1.1 million each.”  Latest SEU program audit showed $20M in expenditures, of which $8.4M went for “program overhead costs.”  Spending on energy-saving projects for state office buildings “would be better handled routinely by state government, either as state bonds – at a lower interest rate than the SEU can obtain – or as routine operational improvements, which would allow all the savings to be passed on to taxpayers.”  As for the goal of helping Delmarva Power to reach a mandated 15% reduction in electricity demand by 2015 [why should such a goal be “mandated” in the first place], “the SEU is so far behind schedule, Delmarva will not come close to meeting the goal.  Meanwhile, Delmarva is making better progress in Maryland where there is no SEU, and so is the Delaware Electric Co-op, which “is free of SEU involvement.”  CRI does “agree energy projects are a good idea to save energy and money,” but thinks SEU has wasted money and slowed the process down.   We presume the News Journal allowed Stevenson a “second bite at the apple” (this time labeled a “Delaware voices” column) because the McDowell/Byrnes rebuttal was so intemperate and inaccurate. In any case, well done! 

5/17/12, A1/A2, Nuke disaster plans change; Evacuations, drills reduced as part of new response adopted by US nuclear regulators, Jeff Down (AP) – The Nuclear Regulatory Commission (NRC) and the Federal Emergency Management Agency (FEMA) have changed the ground rules that were basically put in place after the Three Mile Island partial meltdown in 1979.  Under the revised rules, there would be fewer drills and less drastic evacuations in case of a problem at a nuclear power plant.  There is a new exercise prompted by the 9/1l terrorist attacks (after over 10 years!), although “some emergency officials say this new exercise doesn’t go far enough.”  And “nuclear watchdogs voiced surprise and dismay over the quietly adopted revamp.”  Sounds like a step in the right direction to us, but look for follow-up stories based on local complaints about the matter.

5/17/12, A1/A6, Payday loan bill headed for debate; Consumer choice weighed vs. risk, Doug Denison – Delaware legislation (HB 289) is pending that would curtail payday lending by permitting no more than five such loans a year for any given borrower.  The idea is to prevent borrowers from being trapped in endless rollovers with sky-high interest rates.  The story points out the counterargument that such a law may steer consumers to illegal loan sharks.  However, even “conservative” Senator Colin Bonini is quoted as supporting the legislation on grounds that payday loans can have unconscionable results for undisciplined borrowers.  Our question: how will this proposal mesh with the requirements likely to be promulgated (http://huff.to/yenDZz) by the federal Consumer Financial Protection Bureau?  The possibilities of regulatory overkill are obvious, and we think the Feds should recede.

5/17/12, A1/A5, State energy-efficiency programs shared with private foundation, Aaron Nathans – Just resigned Sustainable Energy Utility (SEU) co-chair John Byrne (see 5/12 entry) has reportedly raised some hackles with his plans for using a private foundation that he chairs to obtain federal funding and replicate the SEU’s activities around the country – all without consulting with the SEU’s board.  Professor Byrne is quoted to the effect that “the SEU program concepts were his and he was free to do with them as he pleased.”  Also, “any fees collected by the foundation for his own work would stay with the foundation.”  The idea: SEU issues bonds backed by long-term purchase contracts from state agencies and others to finance energy efficiency investments.  The obligations are kept off balance sheet, so the purchase transactions do not count against the government’s fiscal limits even though taxpayers are on the hook.  Byrne said the idea came to him during a brainstorming session in 2006, before the SEU was organized.  We disagree with Byrne’s critics in this instance; the idea of off-balance sheet financing is hardly novel and the SEU should feel flattered that their activities are deemed worthy (by some, but not by us) of imitation.

5/17/12, A8/A10, Offshore wind “backbone” clears a hurdle, Aaron Nathans – In that no competitive interest has been expressed in “ocean tracts being sought by the Atlantic Wind Connection,” the Interior Department has said a 300-mile, $5B underwater project to link up contemplated (but currently nonexistent) offshore wind power projects (aka the “backbone”) can “move directly to an environmental review.” If the results are favorable, a right-of-way to build the transmission line could follow.  David J. Haynes, deputy Interior secretary, said this is “the type of project that will help us stand up a clean energy economy up and down the East Coast.” However, DNREC Secretary Colin O’Mara says “significant questions remain” about how the regional grid would divide up costs, and “that would need to be well-debated.”  One of the key investors (42% stake) in the backbone project is said to be Google.  Construction of the project would reportedly take 10 years.  Much ado about nothing!  The backbone would make no sense without offshore wind power projects that are dependent on massive government support.  When the prerequisite subsidies are eliminated, interest in the projects will evaporate.

5/13/12, E1/E4, Bloom factory won’t rise soon in Newark; Most summer work for grading, utilities; COO predict production by Q3 of ’13, Aaron Nathans – As here reported, the Bloom Energy factory is not yet being built, although Bloom executives say there has been no delay and they are on the planned timeline.  Why all the fuss?  “Delawareans have become especially attuned to construction milestones in the wake of the failed Bluewater Wind contract, and new questions surround the planned Fisker auto plant on Boxwood Road near Newport.” In other words, the Markell Administration does not want another “green jobs” embarrassment.  But the issue is not the construction timeline, says UD economist Ed Ratledge, it is the long-term viability of the plant.  Ratledge reportedly said “it’s unclear where the factory’s business will come from, and whether other technologies will make better use of the low price of natural gas.”  In other news, “the state this week granted a Coastal Zone Act permit for a second electricity generating station using Bloom Boxes, this one near the Delaware River outside of New Castle.”  (See 4/4/12 for previous note on the CZA issue.) 

5/12/12, A6, Co-chair leaves sustainable energy board – Before the upcoming (next week) challenge to the leadership of Delaware’s Sustainable Energy Utility (4/6/12 report), co-chair John Byrne has elected to resign.  Co-chair Rep. Harris McDowell remains at the helm for now. In his letter of resignation to the governor, Professor Byrne reportedly said “the discussion of the SEU reorganization was a good time for him to bow to competing demands on his time and step down from the board.”  Byrnes is also director of UD’s Center for Energy and Environmental Policy; active in the nonprofit Foundation for Renewable Energy & Environment; and “often sought out as a volunteer consultant on renewable energy and efficiency projects.” A prediction: whoever is appointed to replace Professor Byrne at the SEU will have similar views.

5/11/12, A7, Energy revisited, Daniel Anderson ad – Hard hitting and generally on target points, e.g., claim that the US has only 2% of the world’s oil reserves is nonsensical.  Re the anticipated half billion loss on the Solyndra loan, however, it is not correct that this loss amounts to “approximately $46,000 for every American family.” (That would mean there were only about 11,000 American families.) Be careful, this kind of mistake gives critics an easy opening.

5/11/12, A18, letters to the editors – Three good letters today: “Letters overstate claims about global warming” (Ed Hiebsch, Milton); “Taxes are the wrong road to economic recovery” (Richard Lamb, Kennett Square, PA, rebuts 5/2 attack on UD professors Beck & Craig, accusing the writer of “proclaiming irrelevant and spurious facts”); “Bloom investment drags taxpayers into risk pool” (Mike Ricciuto, Wilmington).

5/10/12, A1/A9, Deal to lower electric rates; Markell says agreement with DEMEC will help attract businesses to Delaware, Melissa Nann Burke – Update on “Power play” story, 2/12/12.  The upshot of the governor’s request for lower power rates from Delaware municipal cooperatives is an agreement for a 10% cut over three years plus “economic development” rates for new business investments within municipal borders.  This action will reduce (but not eliminate) existing premiums over Delmarva Power rates.  Also, each of the cities “agreed to cap the amount of revenue that it transfers from its electric utility to its general fund budget at this year’s level for at least five years.”  Policy changes to bring down Delaware electric rates generally are needed; this adjustment is only a modest step in the right direction.  See David Stevenson’s 2/16/12 column.

5/8/12, why no story on this? – Re USPS bill that Senator Tom Carper et al. crafted in the Senate – see 4/26/12,“Senators deliver on postal rescue bill” – we didn’t notice a follow-up report that Postal Service management says the bill because would place too many limits on their ability to run this enterprise like a business. http://wapo.st/K8I7sN

5/4/12, A1/A6, Insults lobbed in fracking dispute; Pa. official says Del. smells like dog’s tail, Jeff Montgomery- This story constitutes an update of sorts on earlier reports (Nov. 18 & 19, 2011) about Governor Jack Markell serving notice of his intention to vote against a fracking-enabling proposal at the next meeting of the Delaware River Basin Commission (DRBC). Thus, a Markell letter to DRBC members (sent while he was en route back from a visit to Afghanistan) “cited unsettled and inadequate terms for state and local environmental safeguards and insufficient public review of recently amended regulatory proposals.” Furthermore, “this commission is simply not able to properly evaluate those regulations based on the science at this time.” Since the proposed drilling area is not located in Delaware, one might Markell would have receded on the issue by now – which obviously matters more to PA than to DE - but evidently he has not. Pennsylvania’s environmental secretary, Michael Kramer (a Republican) recently launched “a bizarre insult” toward Delaware by telling a PA audience that DE does not have a dog in the fight and “smells like the tail of a dog.”  In response, a Markell spokesman (Brian Selander) was quoted that “I’m not sure the governor gives a frack about his comments . . . [which do] little to inspire confidence that his office to inspire confidence that his office has the inclination or competence to ensure that this drilling is done in a manner that protects Delaware’s water resources.” We think Governor Markell is pandering to the environmentalists, not protecting the interests of the First State. As David Stevenson of CRI commented (our paraphrase) in his 11/29/11 column:  “If you think the environmentalists are just calling for a delay until the DRBC regulations can be refined, read their blogs.  They want to prohibit drilling permanently so as to avert economic competition that renewable energy projects cannot meet.”

5/3/12, B1/B3, Campaign reform bills move in Dover; House, Senate aim for transparency, Doug Denison – Three bills are advancing in the legislature, all of them “endorsed by Gov. Jack Markell’s administration and sponsored by Democratic leaders in the General Assembly,” in the name of requiring full disclosure of political advocacy.  House Bill 300 would require any political advocacy group spending more than $500 on “a piece of campaign advertising in support of or opposition to a specific candidate” to include a “paid for” statement in the ad and file a disclosure form with the DE Department of Elections.  Currently, ads that mention a specific candidate but don’t explicitly say “vote for candidate X” may not be subject to disclosure requirements.  The bill would also require groups or individuals who donate more than $1,200 to a candidate in a given election cycle to identify the “actual people responsible for the money.”  House Bill 310 would establish harsher fines and penalties [way more than the $500 threshold for disclosure requirements] for failing to file required disclosure reports in a timely fashion.  Senate Bill 185 would require anyone registered as a lobbyist with the DE Public Integrity Commission to report what pieces of legislation and proposed regulations they talk about with political and administrative leaders.  There would be no corresponding obligation for political or administrative leaders to report what bills and regulations they are interested in.  Senator Colin Bonini (R, Dover South) expressed concern about the chilling effect on small, grass-roots advocacy groups, which often have one or two members registered as lobbyists, but said “the professional lobbyists are going to be fine.”  These “reforms” strike us as problematic at best. The bills will create traps for political amateurs, more existence-justifying work for bureaucrats and lawyers, and little information of genuine benefit to the public.

5/2/12, “we told you so” department – A1/A2, Occupy Delaware protestors defy City of Wilmington eviction order, claim that it violates the agreement previously entered into (as well as the protestor’s 1st Amendment rights).  Action will now proceed in court, as the City does not plan to physically remove the encampment.  As we said in 4/24/12 entry re the eviction order, “expect further reports on this subject because the whole point of the Occupy Delaware movement is to attract attention.”  A15, column rebutting UD professors Stacie Beck & Eleanor Craig’s 4/23/12 column characterizing the president’s focus on the Buffett Rule versus broader issues as evidence that he is not serious about improving the economy or addressing the fiscal problem   The writer (Bill Holt, “an entrepreneur and inventor who was a candidate for the GOP’s US Senate nomination in 2002”) accuse Beck & Craig of being partisan hacks who are “using government teaching posts to advance a line of thought seemingly aimed more at defeating political foes than enlightening students.” Our 4/23/12 prediction: “Look for a quick and sharp retort from the other side.  Beck & Craig’s realistic views are not typical of the UD economics establishment.”  We would add now that there is no way that a similar standard will be suggested for liberals on the UD faculty.

5/1/12, A1/A2, A promising Bloom: State and UD officials hail beginning of work on new factory in Del. (Aaron Nathans); Bloom executives receive a warm welcome from Newark officials (Wade Malcolm) – Instead of an actual “groundbreaking,” Bloom, state and University of Delaware officials pulled the cover off a ceremonial sign.  There was plenty of fulsome rhetoric about the heavily-subsidized Bloom Energy venture that is getting under way, as illustrated by these examples:  #New curriculum focused on industrial processing will focus on “lean” manufacturing.  David Weir, director of UD’s Office of Economic Innovation and Partnerships is quoted that “lean” is “a culture.” It’s “how you interact, how you treat one another.  It’s the whole nine yards.”  #UD is “exploring the idea of using Bloom Boxes as a secure power source for research buildings.”  Mark Marteau, senior vice provost for research and strategic initiatives, says that “for sensitive experiments and instruments, a power device that isn’t affected by disturbances on the grid is incredibly important.”  #“I’d like to see how we can power one-half of the University of Delaware or all of the University of Delaware,” said Bloom CEO KR Sridhar. And maybe the Bloom cafeteria could provide a learning environment for students in the hotel & restaurant management program. #Re the subsidies, CEO Sridhar had this to say: “If we create the jobs, if we create the staff, are you spending money on us.  I would say you’re investing.  You’re investing in yourselves.”  #Governor Jack Markell bragged about the aggressive public support for the Bloom venture last year.  “Delaware is a small state with big ideas and huge potential.”  #Senator Chris Coons drew an analogy between the secret Bloom Box catalyst and the political environment in which the deal developed.  “In the end, I don’t know what the catalyst is in that box, but I do know what the catalyst is in this room.”  In times gone by, similar claims were made for perpetual motion machines.

5/1/12, A11, Occupy Delaware’s mission remains unaltered, Phillip Bannowsky (a participant) -  This column seems intended to (1) stoke envy and resentment (“We see up close those left behind wounded and wandering the streets when bankers and lawyers nightly return to McMansions in the burbs.  We see the results of policies going back fifty years to disempower and impoverish the citizens of Wilmington.”), and (2) slam the City of Wilmington for its supposedly unwarranted eviction notice. (“We’ve nurtured good relationships with the city and police.  We require all who share our site to obey the law.”) In general, the Occupy movement is teaming up with radical labor and Socialist protests around the world. http://bloom.bg/IkmmmL

4/30/12, A1/A6, Delaware’s national park efforts advance; colonial locations would be included in package, Mike Chalmers – Photo of Senator Carper with a portable mike: “[He] has a bill before the Senate that would create a national park within Delaware, the only state lacking a site.”  And according to Carper, “I think it will happen this year.  It’s not out of the realm of possibility.”  His strategy is reportedly to “package” the bill with “other relatively noncontroversial measures so it can gain broad support.” The proposal is supported by, among others, the nonprofit National Parks Conservation Association.  However, “some resistance to the proposal has come from congressional members reluctant to expand the size and expense of government, especially in light of a $7 billion to $9 billion backlog of maintenance projects at the nation’s nearly 400 existing parks.” We will believe Senator Carper is serious about shrinking the deficit when he drops this proposal, which he has been pushing - according to the article - for nearly 10 years.

4/29/12, noted in passing – A15, Daniel Anderson political advertisement predicts that “liberals and their allies in the media” will do everything possible to split the Tea Party from Mitt Romney, but “they will fail.” A30, CO2 danger real; stop denying it, Jeffrey Long, Wilmington, complains of “a number of recent letters” touting the advantages of rising CO2 levels for plants.  Not so, claims the writer, “when increased CO2 is accompanied by higher temperatures, shifts in rainfall patterns, or having sea water encroach on roots.”  In other words, “that’s my story and I’m sticking to it.” B3, more publicity of “cross-state” pollution said to be coming from as far away as Indiana and Illinois.  State of the Air 2012 report of the American Lung Association reports that 40% of the US population “live[s] in areas with dangerous levels of either ozone or particle pollution, which can cause wheezing, coughing, asthma attacks, heart attacks and premature deaths.” And all three counties in Delaware are given an “F” grade for Ozone.  The similarity between this campaign and the global warming scare is obvious.  E1/E5, ground breaking for Bloom Energy facility at the old Chrysler site in Newark is scheduled for Monday, and there is much talk about prospective business along the East coast for Bloom fuel cells.  However, Katie Fehrenbacher, an editor at the California-based tech news site GigaOM, is quoted to the effect that Bloom “has yet to prove it will sell many of its products outside of the handful of states with heavy subsidies.”

4/26/12, A1/A2, Senators deliver on postal rescue bill; Hare’s Corner site would be spared, Nicole Gaudiano – Another in a long series of articles about proposed United States Postal Service “reform.”  The issue has gotten a lot of play because Senator Tom Carper chairs the Senate subcommittee that oversees the USPS and is sponsoring the bill that has been proposed.  However, as the article makes clear, Carper’s bill is something of a mixed bag.  First, it would give the USPS “access to $11 billion it [supposedly] overpaid into a pension fund, aka a bailout.  Second, it would defer action to close at least 100 processing centers and prevent the elimination of Saturday mail for at least two years.  Third, the CBO estimates the bill would cost $34B over the next decade, although Senator Susan Collins insists it would not cost taxpayers anything since “there are no tax dollars authorized or appropriated by this bill”.  One would think the government has a moral obligation to cover USPS deficits since the USPS has never been allowed operating autonomy.  Fourth, a very different bill is being worked on in the House.  Rep. Darrell Issa (R-CA) objects to the Senate bill’s cost and says it would prevent the USPS from taking necessary cost-cutting steps. Fifth, with unconscious irony, the bill would create a commission to help the USPS “develop a more entrepreneurial business model” and create a “chief innovation officer” to oversee development of new postal products and services.  As an example of the need for the USPS to “think boldly,” Carper has suggested that offshore wind farms will be generating a lot of electricity and the USPS could make an economic contribution by storing the intermittent power in batteries of electric vehicles.  Here’s a video; the suggestion was not covered in Gaudiano’s report. http://nation.foxnews.com/united-states-postal-service/2012/04/25/senate-dem-save-us-postal-service-wind-farms

4/24/12, A1/A5, Occupy Delaware evicted; Wilmington mayor declares Spencer Plaza camp is now “public nuisance,” Andrew Staub – It took five months and 18 days to figure things out, but “Wilmington Mayor James M. Baker has finally notified Occupy Delaware “that it has until May 1 to dismantle its tent city” at Spencer Plaza.  “The city does not intend to preclude Occupy Delaware from the legitimate exercise of its First Amendment rights,” Baker said.  “But the indefinite seizure of public property is not protected speech.”  The decision is being protested by Occupy Delaware, and by the ACLU, which is providing them with legal representation.  A notification letter from the City to the ACLU has not been released, ostensibly due to “legal issues.”  Ho hum, expect further reports on this subject because the whole point of the Occupy Delaware movement is to attract attention. 

4/23/12,A1/A10, Dover approves Calpine site plan; Gas-fired electric plant proposed, Doug Denison – Update on 2/20/11 story.  Sounds like the regulatory checks are being met.  DNREC Secretary Collin O’Mara is quoted that “this project is going to reduce energy costs [and] reduce air pollution because it’s so clean.  It will actually displace dirtier units from other states.” [No mention of that well-known “pollutant,” CO2.]  However, some residents who live nearby are concerned about the ammonia catalyst that would be used in scrubbing gases emitted and possible pressure on the area water supply in the event of a severe drought such that people might be told not to water their lawns while the power plant continued to operate.  Some people will never be satisfied with anything.

4/22/12, noted in passing – A1/A16, Times are bad, even for a du Pont; Amid economic slump, family heir (Richard S. DuPont) files for bankruptcy protection, Maureen Milford.  Mr. DuPont’s filing lists assets of $50K or less vs. debts of $1.19M, but apparently there won’t be any major change in his life style.  The property (mansion on a 12-acre tract) where he lives on Pleasant Hill Road north of Newark was bought by the state of Delaware from a family trust in 2000 and leased back to him to insulate it from development. This arrangement will apparently continue. Nevertheless, John Stapleford of CRI is quoted that “It’s getting harder and harder for people of old money to stay extremely wealthy from generation to generation.” A1/A14, Alone among GOP presidential candidates, Newt Gingrich has spent a lot of time in Delaware – which has gained him favorable attention from many Republicans.  In contrast, Mitt Romney is slammed for having “visited the state just once, for an ill-timed April 10 rally in Wilmington that forced the state GOP to delay announcement events for Jeff Cragg, the party’s gubernatorial candidate this fall.”  The primary vote will be next Tuesday, and Gingrich is seen as having a shot at Delaware’s delegates.  A27, Considering that today is “Earth Day” the usual hoopla (article after article) seems to be missing.  Here’s an exception, however, a column by DNREC Secretary Colin O’Mara claiming that environmental policies benefit the Delaware economy because “clean air, clean water, safe soils, and memorable recreational experiences are absolutely necessary to attract visitors and new companies, not to mention retain businesses and their top talent.” Some of the factual claims in the column seem debatable, e.g., every dollar invested in “our brownfields program [cleaning up contaminated sites] returns $17 to the state’s economy.”  Our basic issue with the state’s environmental policies is that government officials don’t seem to know when to stop.  E1/E3, Aaron Nathans reports 5,000 solar panels have been installed at Longwood Gardens, but “collapsed credit market raises doubts on second phase.”  When are the governments in this region going to get it that the solar energy panels being installed are uneconomic?  The energy produced is intermittent, so it must be backed up with new conventional generators (gas, coal, nuclear, etc.) to maintain reliable grid capacity.  http://www.s-a-f-e.org/nwsltr/nwsltr65.htm#Simple

4/18/12, A1/A12, Fisker catches flak on GOP campaign trail; Romney spokesman calls loan “failed investment, Jonathan Starkey – Romney’s campaign compared Fisker to bankrupt solar panel maker Solyndra, and said “this president does not understand how the economy works, does not understand the appropriate role for government.”  He added that “Governor Romney supports renewable energy, but he believes that the right path forward for our energy policy and for our economy is for the government to fund basic research instead of trying to play venture capitalist.”  Frank Benanati, regional press secretary of the Obama campaign, fired back that “if [Romney] has his way, the US auto industry wouldn’t exist, manufacturing wouldn’t be making a comeback nationwide, as it is today, and the growing alternative energy field would take a back seat to more giveaways to Big Oil.”

4/18/12, A10, Eric Ruth – Scott Spencer, one of the Democrat candidates for mayor of Wilmington, has made a suggestion to save the Fisker project.  Get Fisker to contract to make military electric vehicles; the funding support will help lower the costs for Fisker’s consumer cars.  Also, make electric police cars.  Wow, as though there weren’t enough subsidies already for electric cars.  Subsidies are the problem, not the solution.

4/17/12, noted in passing: A1/A2, another front page story re the Fisker Boxwood plant, this one reporting that the plant is “absolutely empty” and 12 more Delaware employees have been laid off; A1/A5, extra, extra, Senate could not muster 60 votes (the tally was 51-45) for the Buffett Rule, although the president “has been campaigning for the legislation across the country.”  Senator Mitch McConnell calls Buffet Rule a political gimmick that would create no jobs; Senator Charles Schumer says Senate Democrats will return to the issue repeatedly, portraying it as a way to pay for items such as R&D tax credits and college aid.  We find it stunning that News Journal would devote so much space to an obvious nonevent in the Senate, while continuing to ignore the deficit reduction budget (Ryan plan) that has been passed by the House.  A8, Letter by Don Taber of CCS expresses frustration with reporting on the Buffett Rule by both liberal and conservative voices.  As Taber sees it, Buffet should pay a lower rate than his secretary because his investment income is subject to risk and her salary is not.  We would add that Buffet’s investment income is taxed at the business entity level, for which reason the tax rate comparison being publicized is erroneous in the first place.

4/14/12, noted in passing: A1/A2, Delaware to offer $10M grant to encourage JPMorgan Chase to add 1,200 new jobs in the next 18 months and spend $50M on capital improvements.  This does not involve a new installation or venture; one wonders why a huge, well-established bank should need the help.  A6, AARP will oppose proposed Delmarva price hike, ostensibly out of concern for the electric bills that senior Delawareans are called on to pay.  Where was AARP in opposing the RPS, the Bloom Energy boondoggle, etc.?  A9, Blind pursuit of renewable energy leads to higher prices, Rep. Jack Peterman.  This column offers sounds criticisms of Delaware’s Renewable Portfolio Standard (RPS) program and participation in the Regional Greenhouse Gas Initiative (RGGI), presenting information provided by Caesar Rodney (David Stevenson).  Peterman muddies the waters, however, with a mushy statement about the Delaware renewable energy policy. “No one would argue that electricity generated from renewable resources is not a desirable thing, but the well-intentioned blind pursuit of it is pushing electricity prices higher in the First State.”  He also references his sponsorship of HB 247, a bill that would have halted the phase-in of the RPS regime, but neglects to mention that he testified against the bill at the recent Energy Committee hearing.  Sorry, but politics is serious business, not a parlor game. 

4/12/12, A10, Mediterranean already showing troubling signs, Gilbert Sloan, Wilmington Bill Morris’s letter of 4/9 (“the more CO2 the better”) drew a sharp response (“one is tempted to assume that the whole letter is an attempt at humor”).  However, Mr. Sloan fails to refute any of Bill’s points; he simply references another alleged catastrophe in the making, namely “the pH of the Mediterranean Sea has dropped, in recent decades, from its historic value of 8.2 to 8.1”.  [A further increase to 7.8 by 2100 has been projected. http://bit.ly/IM5Wo9] This is said to mean a 30% increase in the number of hydrogen ions in the water, increasing acidity, dissolution of shells of shellfish and the disappearance of coral reefs.  “These changes threaten the entire structure of life in the Mediterranean, and ultimately the production of human food.” Yikes! However, studies have shown coral reefs are adaptive to higher CO2 levels, and therefore not likely to disappear.  Global warming, coral reefs and symbiont shuffling, SPPI, 3/21/12. http://bit.ly/HNPEJD (download PDF)  We would suspect the same holds true for shellfish. Whack a Mole, anyone?

4/8/12, A1A21. Revenues keep dropping in key state income source; Corporation fees falling as businesses decide not to go public, Jonathan Starkey – Revenues from corporate franchise taxes – said to be “responsible for Delawareans not paying sales tax” - have represented a declining share of state revenue over the past decade and the trend is expected to continue.  Recent legislation to subject smaller companies doing their initial IPO to less stringent regulatory requirements may encourage more startup companies to go public, certainly Rep. John Carney likes to think so, but this doesn’t sound like a panacea.  Similarly, gambling revenues are waning due to growing competition from nearby states.  And on the state spending side, Medicaid is expected to increase 37% next year due to “reductions in federal dollars.”  One bright note: almost $430M in General Fund revenues from abandoned property, including “abandoned savings accounts, unused gift cards and even uncashed expense checks from businesses.” But there is concern about over-reliance on this unstable revenue source.  Rick Geisenberger, chief deputy secretary of state, suggests Delaware’s slowly growing revenue streams have “implications for spending policy.”  You think?

4/8/12, E1/E3, Rebate program costly; An initiative the SEU supervised spent $4.5 million over budget.  Also, $8.4 million was spent to adminster $11.6 million in rebates, Aaron Nathans –More revelations about administrative problems at the Sustainable Energy Utility. The SEU’s fiscal agent (Belfint Lyons & Shuman) was terminated last year, and the books were reportedly left in a mess. A team of DNREC employees had “to pore over boxes of paper files and hard drives ‘to completely reconstruct the story.’” The job took more than 900 hours of DNREC staff time.  “I think the administration costs using those figures are higher than I would have liked or anticipated,” even if they included startup costs, said Michael Sheehy, state public advocate and a member of the SEU board.  Does Sheehy’s dual role represent a conflict of interest?  We thought he was supposed to advocate for energy consumers vs. administering government programs.

4/6/12, A1/A6, Panel: Education a team endeavor, Nichole Dobo – Report on the Imagine Delaware forum held last night with an audience of about 250.  Some of the points mentioned seem positive, such as the importance of parental involvement, and a question about legislation to encourage parental involvement drew an appropriately negative (“fraught with difficulty”) response.  However, there seems to be a fixation on federal grants as the answer to improving education.  “As the recipient of two major federal grants, Delaware has an extra $119 million meant to improve public K-12 schools and $50 million to boost the state’s early childhood education efforts.  Those efforts have been supported by elected officials, the union and business leaders.”  Dr. Lillian Lowery, Delaware Secretary of Education, is quoted to the effect that “charter schools and school choice are options for Delaware parents,” but no specific changes are discussed in the article.  To us, the forum sounds like “much ado about nothing.”

4/4/12, noted in passing – A1/A12: Big color picture of the lower priced ($47K) hybrid car to be offered by Fisker Automotive.  It will be named Atlantic vs. Nina.  The rollout was marred by Fisker CEO Tom Lasorda’s comment that the Atlantic may be built somewhere other than in Delaware, e.g., in Europe, ostensibly due to the continued freeze on over half of the Department of Energy loan.  A2: Ben Feller (AP) covers the president’s “stirring” speech yesterday to an audience of news executives, in which Republican leaders were accused of being radical and unbending.  The main subject of the president’s ire was the House budget, which the story characterizes as “doomed to die in the Senate.”  The News Journal has provided essentially zero coverage of either (1) the House budget, which is quite constructive, or (2) the House of Representatives’ rejection (414-0) of the president’s budget.  Our 4/8/12 blog entry will provide an update.  A6/A7:  This two-page story of the sinking of the Titanic - on the 100th anniversary of this tragedy under the byline of Reid Champagne, special to the News Journal – is quite interesting.  However, a report on the coming fiscal disaster might be more topical.  A8: Update on Bloom Energy (Aaron Nathans): groundbreaking of factory is tentatively scheduled for April 30, surcharge to help subsidize the project will start appearing on Delmarva bills in May under a line item labeled “renewables charges.”  The smaller of two fuel cell projects, a 3-megawatt generating station at Delmarva’s Brookside station should be in full operation by June 25.  Bloom is awaiting a Coastal Zone Act permit from DNREC for a generating site on River Road north of Delaware City.  We understand there may be legal problems with said permit, which the story fails to discuss. A10: An editorial summarizes three days of coverage of “school reform” as follows: “Will the children in school today make a decent wage tomorrow.”  The statistics cited show that only about 40% of Americans have college degrees, and “those without college educations are falling behind far more quickly than anyone anticipated.”  Attempting to drive up the college degree statistics will not necessarily generate more well paid jobs; a more likely result would be to dilute the quality of education across the board.   B1/B2: Reporter Sean O’Sullivan covers unveiling of the Delaware STEM [science, technology, engineering and mathematics] Council’s report, which took place in a room full of seventh graders at PS du Pont Middle School.  Governor Jack Markell and former US Senator Ted Kaufman did the honors.  The 17-page Stem report was created by a Markell-appointed council of 26 members from the state’s business and higher education communities, along with the state’s public and charter schools.  “Our ultimate goal,” says Kaufman, “is to create a seamless pre-K through higher education STEM system so that our students have every opportunity to succeed and provide the workforce to attract STEM businesses to Delaware.”  We remain unconvinced that top-down programs of this nature will cure what is wrong with the educational system.

4/4/12, noted in passing – A1/A12: Big color picture of the lower priced ($47K) hybrid car to be offered by Fisker Automotive.  It will be named Atlantic vs. Nina.  The rollout was marred by Fisker CEO Tom Lasorda’s comment that the Atlantic may be built somewhere other than in Delaware, e.g., in Europe, ostensibly due to the continued freeze on over half of the Department of Energy loan.  A2: Ben Feller (AP) covers the president’s “stirring” speech yesterday to an audience of news executives, in which Republican leaders were accused of being radical and unbending.  The main subject of the president’s ire was the House budget, which the story characterizes as “doomed to die in the Senate.”  The News Journal has provided essentially zero coverage of either (1) the House budget, which is quite constructive, or (2) the House of Representatives’ rejection (414-0) of the president’s budget.  Our 4/8/12 blog entry will provide an update.  A6/A7:  This two-page story of the sinking of the Titanic - on the 100th anniversary of this tragedy under the byline of Reid Champagne, special to the News Journal – is quite interesting.  However, a report on the coming fiscal disaster might be more topical.  A8: Update on Bloom Energy (Aaron Nathans): groundbreaking of factory is tentatively scheduled for April 30, surcharge to help subsidize the project will start appearing on Delmarva bills in May under a line item labeled “renewables charges.”  The smaller of two fuel cell projects, a 3-megawatt generating station at Delmarva’s Brookside station should be in full operation by June 25.  Bloom is awaiting a Coastal Zone Act permit from DNREC for a generating site on River Road north of Delaware City.  We understand there may be legal problems with said permit, which the story fails to discuss. A10: An editorial summarizes three days of coverage of “school reform” as follows: “Will the children in school today make a decent wage tomorrow.”  The statistics cited show that only about 40% of Americans have college degrees, and “those without college educations are falling behind far more quickly than anyone anticipated.”  Attempting to drive up the college degree statistics will not necessarily generate more well paid jobs; a more likely result would be to dilute the quality of education across the board.   B1/B2: Reporter Sean O’Sullivan covers unveiling of the Delaware STEM [science, technology, engineering and mathematics] Council’s report, which took place in a room full of seventh graders at PS du Pont Middle School.  Governor Jack Markell and former US Senator Ted Kaufman did the honors.  The 17-page Stem report was created by a Markell-appointed council of 26 members from the state’s business and higher education communities, along with the state’s public and charter schools.  “Our ultimate goal,” says Kaufman, “is to create a seamless pre-K through higher education STEM system so that our students have every opportunity to succeed and provide the workforce to attract STEM businesses to Delaware.”  We remain unconvinced that top-down programs of this nature will cure what is wrong with the educational system.

4/3/12, third day re "strategies for world-class schools – This was probably the most interesting day in the series, including (A) Front page story emphasizes empowerment (with a dash of welfare support such as a practice at one school of providing lower income students with clean clothes while the clothes they wore to school were being washed): Parents provide key to student success, Wade Malcolm & Nichole Dobo – Recounts dramatic progress with laggard students (particularly minority and/or lower income kids) at various schools, including Kuumba Academy Charter School, Postlethwait Middle School (Caesar Rodney District), Pleasantville Elementary (Colonial District), and Yes Prep Public Schools in Houston. (B) Editorial (A12) previews forthcoming report from the Delaware STEM Council, which will urge parents to “demand greater support for STEM standards and classes.” • “We’re not just talking about the would-be scientist [an individual], we mean all students.” •“Delaware must expand the number of students who go into STEM careers” and “broaden the participation of women and minorities.” •“More and more workers in all fields must be STEM-literate, and “Delaware needs more content-trained teachers.” • “Gov. Markell deserves credit for forming this council and asking for this report.  It would be an annual effort from now on.” Sounds like more bureaucracy and top down directives, which is NOT what is lacking in the present system.  (C) Charter schools are essential in addressing education’s ills, A13, James Hosley, Caesar Rodney Institute - This column argues that parents deserve a choice in how to spend tax dollars set aside for the education of their children vs. leaving the matter entirely up to government and school officials.  Polls show 59% of Delawareans rate overall performance of the public schools as fair or poor, and 74% agree or strongly agree that charter schools provide better choice options.  Some charter schools have as many as 12 applicants for each vacant seat, so they must be doing something right.  And it’s not the job of charter schools to prop up public schools; the public schools should be learning from the charter schools.  Some charter schools have failed, but that’s a natural consequence of allowing freedom to experiment and giving parents choices.  Teachers are willing to work in private, parochial and charter schools, even with less job security, because they do not want to be trapped in a system that does not work for them.  And given the choice, 2/3 of teachers drop their union membership.  It is not true that charter schools are taking the best students from public schools (they select students by lottery if there is an excess of applicants), nor that they are undercutting public school funding (charter schools get 30% less per student than public schools and no capital money).  In closing, “you have a choice in November: You can vote for a candidate who will transform a failing system or one who will maintain the status quo. [Is this a reference to the governor race?]  It is your choice.”       

4/2/12, day 2 of “Delaware Imagine” series on education – Half of today’s edition is devoted to stories on this topic, or so it seems.  There was also lots of coverage yesterday, and will be more tomorrow.  Then, on Thursday, April 5, there will be a public forum in Clayton Hall, University of Delaware, 6:30-8:00 p.m., re “Delaware’s Race to the Top.”  The panel: David Ledford of the News Journal, moderator; Frederika Jenner, president of the Delaware State Education Association; Dr. Lillian M. Lowery, Delaware Secretary of Education; Jason Bernal, president of Yes Prep Public Schools, Houston, Texas; Tena V. Gladney, community engagement coordinator, Howard High School of Technology. (A4).  Part of the coverage is about school programs such as STEM (science, technology, engineering, and mathematics) education, but the main thrust seems to be a top-down, government-run approach to educational reform.  Thus, an editorial (A12) lauds the president’s decision to permit states to opt out of the mandatory requirements of the No Child Left Behind Law by promising to take “certain steps toward local reform” under the rubric of the “Race to the Top” (same title as the forum) program.  We agree that educational reform is needed.  The key step is to terminate federal involvement (not tinker with the NCLB), minimize the state and school district bureaucracy, and empower principals and teachers – while building parent and student engagement for individual schools.  If kids decide learning is cool, be prepared to be amazed – they are not untalented, merely unmotivated. http://www.s-a-f-e.org/education.htm 

4/1/12, F1/F5, Solar-power reward program to change; auction for credits starts Monday, Aaron Nathans – On Monday, the Sustainable Energy Utility (SEU) will hold its first auction for solar renewable-energy credits (SRECs).  This is a pilot project as the state “gradually moves away from lump-sum rebates, and towards a system in which solar customers get a steady payback over a longer period of time.”  Exactly how the program will work depends on several variables: when one’s business or home solar system was installed, whether Delaware materials and/or labor were used, how much money is available to buy SRECs, and a lottery to select the “winners” if too many people sign up.  It sounds like the intent (or at least probable effect) may be to build a cadre of people who will support expansion of the RPS (and the solar power share thereof) in order to keep their SREC payments going.  Government handouts are inherently addictive!

3/31/12, A8, Global warming is real and disturbing, Chad Tolman, energy chair of the Delaware Chapter of the Sierra Club – Tolman slams a 3/18 letter about global warming threat being fear-mongering, which he attributes to “a Mr. Conte.”  If Conte is “not a little afraid, he doesn’t understand what’s going on.”  Who says so?  As “a scientist who has studied global warming for over 20 years,” Tolman knows that “with more carbon going into the atmosphere every year, the consequences for future generations will be enormous.”  See also “World on the Edge – How  to Prevent Environmental and Economic Collapse,” by Lester Brown, http://amzn.to/H6nU6N; or a 50-minute video by Chuck Kutscher called “Debunking Climate Skeptics,” http://bit.ly/xcqyGP. Give Tolman credit for citing sources, but there are many others that refute his beliefs, including “Global models are wrong again,” a column by Princeton physicist William Happer in the 3/27/12 edition of the Wall Street Journal. “What is happening to global temperatures in reality?  The answer is almost nothing for nearly 10 years,” despite the dire predictions of climate alarmists.  Perhaps it’s a mistake to take this subject so personally. 

3/29/12, B3, Energy purchase standards will stand, Doug Denison – The outcome of the hearing on House Bill 247, which would have paused the phase-in of Delaware’s Renewable Portfolio Standards law at 8.5% of total energy provided, is reported:  “HB 247 did not receive enough support to move it to the floor after the hearing.”  However, we disagree with the statement that the bill died in the Energy Committee “after a lengthy debate,” because – as was obvious to attendees -  there was no debate (reasoned discussion).  As the reporter’s synopsis demonstrates, the two sides simply talked past each other: “Proponents of freezing the RPS percentage say the program has increased the cost of electricity, since utilities have been required to buy energy from more expensive sources. The program’s supporters say it has made alternative energy cheaper and fostered renewable industry growth. Much of the discussion . . . zeroed in on solar energy.”  The story goes on to provide sound bites from: Pro: House Minority Leader Greg Lavelle, the sponsor of the legislation; David Stevenson of the “conservative-leaning” Conservative Rodney Institute.  Con: Tom Ernest, DuPont Co’s solar division; Rep. John Kowalko, chairman of the Energy Committee.  For our take on what happened, see the April 2 entry in SAFE’s weekly blog. 

3/28/123, A1/A5, Del. outlines e-gambling; casinos would get millions in relief as games, lottery tickets go online, Doug Denison  In essence, the proposal is to double down on gambling as a source of state revenue.  Giving Delaware’s three physical casinos “a multimillion-dollar break on their annual licensing fees” (to be used only for certain purposes, e.g., property improvements or debt reduction vs. operating expenses), presumably because the casinos are suffering from competition in other states, would be rendered “revenue neutral” by allowing Delaware’s gamblers to “[play] legal poker and blackjack at the keyboards of their home computers, and [scratch] off lottery tickets from the pocket-sized screens of their smart phones.” This is pursuant to a December opinion of the US Dept. of Justice that “the federal Wire Act, which had been interpreted as outlawing Internet gambling, applies only to interstate sports betting.” We don’t want to sound moralistic, but there are obvious drawbacks to legalized gambling, i.e., these proceeds are not “free money.”  The state needs to control its spending habits.

3/28/12, A1/A2, Community members use demonstration for soul-searching and a call for local activism; more than an outcry for justice at city rally, Esteban Parra -  More than 1,000 rallied in Rodney Square yesterday “to raise awareness about the death of Trayvon Martin, the Florida teen killed by a neighborhood watch volunteer [in Florida].”  Although slanted to the viewpoint of the Hoodie March demonstrators, e.g., by reporting “a national outcry because Martin was unarmed and no one has been arrested [for] his slaying,” this account does include a one-sentence acknowledgment of “allegations that Martin punched Zimmerman and was beating the man when he was shot.” There are additional details in a companion story on A2, “Congress weighs in on Florida slaying,” which however supports efforts to link the killing to “racial profiling” and the supposed flaws of Florida’s “stand your ground” self defense law.  A rush to judgment in this racially charged matter – Martin was black, Martinez is half Hispanic – seems clearly inappropriate.  The facts need to be fully investigated, and Martinez is entitled to the presumption of innocence.  See this Washington Post story. http://wapo.st/GSanzi

3/28/12, A8, Lavelle bill on renewable power gets hearing, Aaron Nathans – Believe it or not, a common sense bill to pause the phase-in of renewable energy requirements for state power companies, albeit without doing away with the requirement has been introduced.  There will be a hearing on it at 4:00 p.m. today, which has been moved to Legislative Hall due to public interest in the matter.  SAFE will be represented at the hearing, stay tuned.

3/28/12, A10, Global-warming threat is just fear-mongering, Jim Conte, Holiday Hills – Re News Journal front page story on rising sea level [3/15/12], which is described as “another attempt to raise the angst level of readers [presumably] under the implied threat of global warming.”  If the sea level rises a foot over the next one hundred years, there will be plenty of time to adapt.  And who knows, global temperatures could start falling with falling sea levels.  The writer’s main concern is the “almost certain financial tsunami that is heading our way if we don’t start restraining our spending in a big way” – including “not wasting resources on funding studies on non-problems.” Well put, but a sharp response is predictable.

3/27/12, noted in passing – (A1/A2) Newt Gingrich was the first GOP presidential candidate to appear in Delaware in the run-up to the 4/24 primary; he focused on energy policies in speaking “to hundreds of New Castle County Republicans in Hockessin. (A1/A2) Fisker is recalling all 2012 Karmas to replace the batteries, another embarrassment for this heavily subsidized startup.

3/27/12, A11, IPO Law will promote job growth and generate revenue, Representative John Carney – This column begins that “President Barrack Obama is expected to soon sign into law legislation I introduced in the House of Representatives to grow and create jobs.”  The provision in question [part of a larger bill that recently passed in the Senate with bipartisan support] would temporarily relax regulatory requirements for smaller companies doing their first IPO, thereby supposedly (a) helping these job creating companies raise equity capital, and (b) generating “additional revenue for Delaware through corporate franchise fees.” The possible merit of PERMANENTLY relaxing the Sarbanes Oxley, etc. requirements for ALL companies is not discussed.  Carney says he is supporting many other job creating ideas, including the Make it in America agenda (subsidies for US manufacturing?),  “a fully funded transportation bill,” expanded job training programs, and “robust investment in clean energy technologies.”  Hopefully, these proposals will not gain traction – the country really cannot afford them.

3/25/12, A28, Dear elected officials: do you get it? – This isn’t the 1950s, when the economy was so good it would “pay the bills no matter what schemes [the politicians] dreamed up.” It’s the second decade of the 21st Century, and “technology and global competition are undermining America’s standard of living.” The editorial goes on to paint a dismal picture: “at best, economic growth will be slow over the next decade” and “at worst, the social mobility that was the American Dream is in trouble.” Both the unemployed and struggling middle-class families get it, but many elected officials may not. Thus, we see members of Congress “fighting a rearguard action to preserve the US Postal Service on old-style staffing levels.”  And members of the Delaware Senate are pushing Senate Bill 34, which would jeopardize a deal for long-term reforms to “the generous [state employee] pension system” by adding union representatives to the review panel.  The complaints in this editorial seem valid, but not the preamble.  Since when did technology represent a threat to our standard of living, and why can’t the News Journal get it that the government could foster robust economic growth by ditching its anti-business policies?

3/23/12, A1/A16, Vote to end debate on postal bill set; motion filed on reform legislation after Md. senator’s protest, Nicole Gaudiano – Sen. Barbara Mikulski (D-MD) is reportedly upset about “a lack of transparency and public input in the US Postal Service’s consideration of a proposal to close a mail-processing center in Easton, Md., and move its functions to the Hare’s Corner facility near New Castle.”  Meanwhile, Senator Tom Carper of Delaware is playing a double game.  On one hand, Carper adroitly pressured the USPS to reconsider its previously announced decision to close the Hare’s Corner facility.  On the other, he is supporting a “postal reform bill” that would combine some added cost-cutting flexibility for USPS management with (A) requirements to delay eliminating Saturday mails by two years, offer buyouts or retirement incentives to 100K employees instead of just laying them off, etc., and (B) a provision to “give the Postal Service access to billions it overpaid into a pension fund [in effect a taxpayer bailout of unspecified magnitude].”

323/12, A3, Positive Growth Alliance (Rich Collins), Daniel G. Anderson - This paid advertisement (the latest in a series) lauds the PGA for its fight against (A) laws & DNREC regulations to control land use at the state vs. county level, (B) rising state spending (“nearly every year the State Budget goes up by more than inflation plus population growth”) that will inevitably lead to “more taxation for Delaware citizens,” (C) excessive burden of regulation, e.g., mandatory recycling was passed in 2010 and “there is a provision that would allow citizens to be charged if they don’t recycle” [on top of a major hike in waste removal fees already imposed by service providers?], and (D) one energy bill after another that push up electricity rates (David Stevenson is quoted that the average Delawarean pays “more than $450 annually from disposable income to pay for hidden costs for alternate energy, i.e., wind power, solar power, grain power (ethanol) and other alternate sources.” Let’s hear it for the PGA et al.

3/23/12, Del. politicians do what unions tell them, John Stapleford (CRI) – The gist is that Delaware unions abuse their privileged position and none of the politicians will stand up to them.  Thus, “the most recent union affront to competition” is HB 180, which would reportedly require “anyone doing electrical contract work in Delaware to be licensed as a journeyperson or apprentice electrician by the state’s Board of Electrical Examiners.”  Under previous regulations, in effect for the past 50 years, “laborers and helpers could dig a trench, glue PVC conduit together, drill holes in studs and pull wiring through them, as long as they were supervised and the work [was] inspected.”  The effect would be to increase the cost of electrical contract work by reducing the supply of “qualified labor.”  Yet the bill was passed, signed by the governor, and will take effect June 30.  Why, asks the writer, “is there no push back” against this kind of thing?

3/21/12, A2, House GOP plan seeks deeper cuts to spending, AP – WASHINGTON – Mixing deep cuts to safety-net programs for the poor with politically risky cost curbs for Medicare, Republicans controlling the House unveiled an election-year budget blueprint Tuesday that paints clear campaign differences with President Barrack Obama.The announcement reignited a full-throated budget battle.  Republicans cast themselves as stepping up to a federal deficit crisis long ignored by both parties, while Democrats and their allies responded with promises to protect the elderly and the poor from drastic cuts they said would harm the most vulnerable Americans.  The GOP plan doesn’t have a chance of becoming law this year – the Democratic-controlled Senate has no plans to even take it up – but it provides a sharp election-season contrast to the budget released by Obama last month.  His proposal would rely on tax increases on the wealthy to curb trillion-dollars-plus deficits but for the most part would leave alone key benefit programs such as Medicare. The Republican proposal, released by House Budget Committee Chairman Paul Ryan, would wrestle the federal spending deficit to a manageable size in short order, but only by cutting Medicaid, food stamps, Pell Grants and a host of other programs that Obama and other Democrats have promised to defend.  This story suggests a disturbing lack of interest in tackling the fiscal problem.  Why not a more prominent story on page 1, solicitation of reactions from interested Delawareans, and maybe even an editorial?

3//20/12, A9, “Dream Accounts” would be a boon to US education, Sen. Chris Coons – The writer touts a bill he introduced in Congress called the American Dream Accounts Act.  As the bill would utilize “existing Department of Education funds,” there would be “no new cost to taxpayers.” Never mind that elimination of the DOE could help to start balancing the budget, which absolutely needs to happen.  Although the details are only vaguely described, the idea is apparently to (1) set up college savings accounts for students, and (2) link them to Web-based “information about academic preparedness, financial literacy and high-impact mentoring.”  In short, the American Dream Accounts would be “Facebook-inspired, personalized hubs of information that engage students in a powerful new way.”  Who pays for the college savings accounts, and what students would be eligible?  Why can’t students and parents locate the relevant information for themselves?

3/19/12, A10, High gas prices a problem for today – Editorial expresses concern that the president has not done enough to assure the public that he has a short term strategy for “coping with soaring gas prices.”  In other words, he is supposed to lie?  But good for him that he is “not ignoring the tea leaves about America’s future dependence on foreign oil” because “the science on how we are destroying the planet through overreliance on fossil fuels and lifestyles that contribute to air and water pollution, along with the savaging of critical green space because of illogical development agendas, can’t be disputed.” We rather think this “science” could be disputed.  For example, building wind farms and solar displays will use up “critical green space” rather than preserving it.  And the “destroying the planet” reference is presumably based on the manmade global warming theory, which at best has been considerably exaggerated.

3/19/12, A10, Carper, Coons err on bill to end redundancies, Rich Shears, Wilmington – The writer takes Delaware’s senators to task for voting against an amendment to Senate Bill 1813 – Coburn Amendment 1738 – to prevent duplicative and overlapping federal programs [hundreds of which have been identified by the GAO].  “An estimated $100 billion per year could be saved just by eliminating this activity.”  Meanwhile, the national debt is climbing rapidly and “Sen. Carper has been more interested in creating a national park for Delaware” than doing anything to stop it.  No wonder “Congress has a historically low approval rating from the American public.” Well said.

3/16/12, A6, Karma credibility hit; Cori Anne Natoli – Nice picture of Fisker Karma in the foreground, but the caption is less encouraging.  “The Karma, an upscale [$107K] gas-electric hybrid from Fisker Automotive, ran into trouble over faulty parts during a Consumer Reports test last week.  The automaker, which intends to build a different [less expensive] model in Delaware, dispatched a repair team.”  Consumer Reports blogged about the incident that “we buy about 80 cars a year” and “this is the first time in memory that we have had a car that is undriveable before it finished our check-in process.” No doubt the defective software will be quickly fixed, but the test failure was embarrassing for a company that hasn’t been doing too well lately as it is.

3/15/12, A1/A10, Rising sea level to affect much in Del. in long term: “everybody” likely to face impact, aide says, Molly Murray – This article reports the release of two papers by a New Jersey-based nonprofit named “Climate Central” that is apparently dedicated to frightening people about rising sea levels.  Thus, according to Ben Strauss, who was involved in authoring both reports, “escalating floods from sea level rise will affect millions of people, and threaten countless billions of dollars of damage to buildings and infrastructure.”  The actual facts – a one-foot rise in sea level over the past century, which alarmists claim is “accelerating” – are prosaic, so the idea is to change the way things are looked at.  For example, “old studies just looked at elevation above [average] sea level” but maps of low lying areas look more ominous if they are based on the elevation above “the normal high tide line.”  Susan Love, a state resource planner with Delaware Coastal Programs, goes further, claiming “everybody in the state of Delaware is going to be impacted by sea level rise.” And the state government is posting this map. http://www.dnrec.delaware.gov/Pages/SLRMaps.aspx.  The current risk assessment activity will be followed by proposals for government-led action programs.  Hold on to your wallet!  

3/15/12, A11, Senate vote denies effort to keep energy tax credit, Aaron Nathans – A proposed amendment to the surface transportation bill pending in the Senate would have extended a renewable energy tax credit to subsidize wind power projects, etc.  It was blocked by a 49-49 vote (60 votes required for passage).  Senator Tom Carper supported the amendment, and says he “will continue to push for smart tax incentives that create jobs while helping to make clean energy and energy independence a reality in our nation.” It is time to end this and countless other tax giveaways to special interests.  The purpose of the tax system should be to raise revenue, not distort the normal functioning of the economy.

3/14/12, A14, US Senate can end “this war” on women – The editorial begins with a reference to the controversy over the Administration’s rule that would force approved healthcare plans to cover “free” contraceptives; critics supposedly oppose the “reproductive rights” of women.  It then lauds Senator Chris Coons for supporting the stalled reauthorization of the Violence Against Women Act,” first authorized in 1994, which has reportedly led to a 51% increase in reporting of violence against women and a 37% increase in reporting by men.” Senator Coons adds that “intimate partner violence against women has declined by 53% and there has been a similar decline in violence against men.”  Also, “intimate partner violence resulting in death has decreased by 29%.” Per the editorial, the “continual wait for VAWA reauthorization is being felt severely in rural Delaware.”  Thus, the Lewes police force “lacks resources to offer comprehensive in-house domestic violence training” and the Sexual Assault Network of Delaware “relies on VAWA funding to pay one full-time counselor for Sussex County, who provides sexual assault counseling for a population of nearly 200,000 people.”  If the VAWA programs are meritorious they can be funded at the state or local level.  We fail to see why federal funding should be needed, or why eliminating federal grants should be construed as a failure “to send the message that gender-related crimes are intolerable.” 

3/12/12, B1/B3, Del. gets a say in Nemours changes; officials can object during restructure, Sean O’Sullivan – There is head shot of the Delaware attorney general with this caption: “Beau Biden said his office will advocate for Delaware residents.” What’s up?  A Florida judge has approved a request by Biden’s office to join a civil action re restructuring the Nemours Foundation trust ($4.6B, set up by the will of Alfred I. du Pont) in Florida.  Under the terms of a January 1980 settlement with Delaware officials, Nemours must spend at least 51% of it annual income from the trust in Delaware.  Trust officials have announced that the proposed restructuring is purely “to achieve more favorable tax treatment, especially as it relates to taxes paid in foreign jurisdictions,” and “nothing is being done to change the purposes of the trust.”  Furthermore, the Delaware AG’s office was notified in advance of what was planned.  Perhaps it is appropriate for the AG’s office to join the proceeding “just in case,” but Mr. Biden’s announcement seems overdone and this is the second News Journal story about the matter.

3/11/12, A26, State’s gambling dependence must end   This editorial complements a front page story by investigative reporter Chris Barrish on a decline in Delaware revenue from gambling as nearby states build competing casinos that are cutting down on out-of-state customers. Currently, as the editorial sums things up, “Delaware gets 7 percent of its general fund dollars from the state’s three casinos,” representing “about $1 in every $14 spent by the state.”  But growing competition from other states “will mean fewer customers at local casinos and, in turn, fewer tax dollars.”  Before long, Delaware’s casinos will be frequented primarily by “local people who want to gamble locally;” they will simply serve to recirculate “local money” and provide only a limited “overall boost to the state economy.” We’re not convinced there will be a boost to the economy  at all. Reliance on gambling revenues is said to be “unhealthy” because it “enables the governor and the Legislature to put off hard questions about the size and cost of government.”  Sounds like said questions may not be put off much longer. 

3/7/12, A18, Go ahead, legalize drugs, then kiss your privacy goodbye, John Sweeney – This column acknowledges an important point: the war on drugs is failing and the attempt to stop drugs from crossing the southern border has caused huge problems.  “Drug gangs will stop killing Mexicans when Americans stop snorting cocaine and methamphetamines and smoking marijuana.”  Vice President Joe Biden is supposedly being asked about the possibility of decriminalization in visits to Mexico and several other Latin American countries this week.  His “there is no possibility the [Administration[ will change its policy” answer leaves much to be desired, but legalizing drugs would spawn issues of its own.  Drug use destroys the lives of users, what are we going to do about that – would there be a truly free market (dramatically lowering drug prices and therefore encouraging more use) or state regulations that would probably spawn a black market – would advertising of drugs be allowed in the name of free speech – expect a lot more employer drug testing (employers would be liable for aberrant employee behavior whether drug usage was legal or not). And here’s a refreshing admission: “If legalization is not a solution and the current drug war policy is failing, what’s the solution?  The honest answer is I don’t know.  I’m not even sure there is a single ‘solution.’  Most likely it would be a combination of several partial solutions.” Lots to think about here, so let’s get to it – but the war on drugs has got to go.

3/3/12, A8, Disability filers deserve fairest review of claims – Editorial re 3/1/12 report that SSA administrative law judges in Dover are approving disability claims at less than the national average and indeed had “the fifth-highest denial rate among the agency’s 170 hearing offices” so far in this fiscal year.  Also, “the Dover judges’ decisions are overturned more often than those of their counterparts across the nation.”  The filers may deserve a fair review – but a “fairest review” implies weighting the scales in their favor.  We would guess that very few decisions granting disability claims are appealed, and if so it stands to reason that ALJs who review these claims conscientiously will have a higher percentage of decisions overturned on appeal.  The path of least resistance for an ALJ is clearly to grant most of the claims considered whether they have any merit or not.

3/2/12, A7, The Young Guns (paid advertisement) – A half page of excerpts from Young Guns, a New Generation of Conservative Leaders by Eric Cantor, Paul Ryan and Kevin McCarthy, Simon & Schuster (2010). Daniel G. Anderson, who paid for this ad and earlier ones in the series, concludes as follows: “Readers and friends, let’s all vote in 2012.  We can take over the Senate and the good Lord willing, the presidency.  Charles Dickens Tiny Tim said it best, “God bless us [every one]!”  The ads began with energy policy, but Anderson (http://www.caesarrodney.org/index.cfm?ref=27151 ) has now broadened his conservative message.

3/2/12, A15, Supporting poultry industry is vital to region’s economy, Sen. Tom Carper, Sen. Chris Coons, & Rep. John Carney – Do the members of Delaware’s Congressional delegation support the Delaware poultry industry?  Their answer is a resounding “absolutely,” and in this column they offer a four-point action program: Lower tariffs. Lauds free trade agreements with South Korea, Panama and Columbia that were finally ratified last year after being signed by the previous president.  We’re also working to reduce barriers to China, Russia and India while improving access to US poultry products in other promising markets. Skilled and reliable workforce.  “We must ensure [how] that employees possess skills to succeed while companies identify how to make this often difficult work more appealing.”  Energy. While recognizing a spike in corn prices, driven in large part by government mandates to blend more ethanol in motor fuel, the writers laud technologies being developed by DuPont et al. that “will dramatically improve corn yields” and help “transition from corn-based ethanol to advanced and cellulosic biofuels not made from kernels of corn.”  Environment. Endorses efforts of “our Nutrient Management Commission, established in 1999, to make Delaware “a national leader in employing shared responsibility to develop and implement best practices to ensure the use of poultry litter as fertilizer is appropriate and safe.” This program is underwhelming.  The biggest thing that should be done is to cancel the ethanol motor fuel mandate and allow the composition of motor fuel be determined by the free market.  Such action would benefit American motorists, currently hard pressed by spiking gas prices, and also reduce the price of corn to more normal levels. 

3/1/12, A1/A2, Feds: Tigani bragged of pull with Bidens, Maureen Milford & Jeff Montgomery – More on the federal prosecution of liquor company executive Christopher Tigani, who pleaded guilty to campaign finance fraud and related offenses last year and may receive a relatively lenient sentence in recognition of his cooperation with investigators.  Among other things, Tigani was accused of illegally funneling $72,700 to Joe Biden’s Democratic presidential primary campaign in 2007, e.g., by reimbursing company employees with company funds for contributions they were asked to make.  Tigani might have avoided prosecution if his evasion of the $5K ceiling on individual contributions had been more subtle.  The practices of “bundlers” in soliciting campaign contributions from others are probably somewhat similar to what he did, albeit without an explicit promise of reimbursement, and they are celebrated rather than being prosecuted.  Also, we have not heard of anyone being prosecuted for attending high priced (e.g., $38K per person) fund raising events.

3/1/12, A1/A6, Delaware legislators push for deep look at denials; Dover office rejects high level of disability claims – Administration law judges of the Social Security Administration (SSA) office in Dover have denied 57% of the disability claims they have heard since October, compared to a national average of 41%.  Moreover, the denial rates of the five individual judges during this period ranged from a high of 75% (Benitz) to a low of 28% (Banas).  The News Journal has reported on the Dover office’s stinginess before, and now Senator Tom Carper, Senator Chris Coons, and Representative John Carney have all asked the SSA Commissioner to order an investigation.  The implication is that claims of disability are being improperly denied, e.g., Rep. Carney said, “the wide disparity of approval rates among the judges justifies a more thorough analysis of whether every claim is getting fair consideration.” And Senator Coons reported receiving more complaints about the Dover judges during his first year in office than about any other issue, including the federal budget and the war in Afghanistan.  People on disability typically drop out of the workplace, and there has been a growing tendency for people reaching the end of their extended unemployment benefits to file disability claims.  New York Post, 2/19/12. http://nyp.st/ApptVx  The members of Congress from Delaware (and this story) seemingly miss the point that the Dover judges may be doing a better job than their peers in other SSA offices rather than the other way around.

2/29/12, A1/A6, New chief executive named at Fisker; Troubled startup turns to US industry vet Tom LaSorda, Jonathan Starkey – Mr. Lasorda, the new CEO, led Chrysler from 2005 to 2007; he replaces Herik Fisker who will assume new duties and “focus on expanding [Fisker’s] business in the Middle East and China.”  One thing that has not changed: production of the new Nina hybrid-electric car at the Boxwood plant in Delaware will depend on securing what Lasorda referred to as “alternative sources of financing” unless the US Department of Energy frees up the rest (over $300M) of the promised federal loan.  The funds were frozen due to Fisker operational problems, but “some believe politics also played a part – with Republican presidential hopeful Mitt Romney, among other, railing against Fisker’s loan as an example of irresponsible government spending.”  No mention that the DOE reacted to Solyndra’s default on a similar commitment, which will cost taxpayers over $500M.  Also, why should opposition to wasteful government programs be dismissed as “politics” when the Fisker venture has been a political boondoggle from the start?

2/29/12, A12, A government guide to government duplication – For the second year, as noted in this editorial, the GAO has issued a report on duplicative government programs.  Thus, the agency reportedly “found 51 areas where the federal government could – with a little work – save money and serve the people more effectively.”  Senator Tom Carper, who is said to have “been hammering away at the duplication problem for years,” is quoted that “given our mind-boggling budget deficit, we need to be looking into every corner of our federal budget to find ways to save.” Let’s hope Senator Carper means it, but we cannot recall a single instance in which he has ever called for the termination of a government program.  Compare the comments of Senator Tom Coburn last September, when it became evident that the primary reaction to the first GAO report would be an attempt to cut the agency’s budget!).   http://bit.ly/y3iHvu

2/26/12, C1/C3, Former auto plant ready for Bloom to take root; construction set for spring, 1st Del. hire made, Aaron Nathans – Update on this project, which has been out of the news for several months: The first employee is Barry Sharpe, senior director of operations, who will be the Bloom plant’s manager when it opens in 2013.  Gov. Markell’s office reports Bloom has “already made some East Coast sales.”  Former Chrysler factory has been demolished, and UD has removed the concrete and asphalt where the new Bloom plant will go at a cost of $1.4M that will be covered by state economic development funds. Lease agreement between UD and Bloom will reportedly give Bloom a “no-cost ground lease” in exchange for the state providing funds to build the surrounding infrastructure.  Groundbreaking will be by early April.  As previously reported, Delaware will provide Bloom with $18M in direct state support and a surcharge on Delmarva Power bills that will raise more than $100M over 21 years [for which ratepayers will receive nothing].  Bloom will build electrical projects at or near two Delmarva Power substations, selling the power produced to the grid [not Delmarva], thereby [in the writer’s words] “making possible the surcharge that will help finance the factory” [without raising taxes].  Very clever! 

2/26/12, C1/C3, Sticker shock on way to Del. pumps; AAA expects prices as high as $4.25 in spring, Aaron Nathans – Rising gas prices are a national problem, and developments in the Middle East could make things far worse.  Also, as this story brings out, the mid-Atlantic region may fare worse than other areas of the country.  The reason is tightened supply sources, including two idled Philadelphia-area refineries as well a third (Sunoco refinery in Philadelphia) set to close July 1 unless a buyer steps forward.  No mention that the refinery closures are importantly due to tightening emission restrictions of the EPA; it would not be PC to note such a connection.

2/26/12, B1/B4, Medicaid at issue in governor’s meeting, Nicole Gaudiano – More news from the National Governor’s Association (NGA) get together in DC.  Delaware Governor Jack Markell (a Democrat) is vice chair; the chair is Nebraska Governor Dave Heineman (a Republican).  The rising cost of Medicaid became a focus during a press conference they held to kick off the meeting.  Heineman expressed concern about the growth of Medicaid, which is consuming more of state budgets and “potentially resulting in less money for education, transportation or public safety.” Accordingly, governors want more flexibility to use federal funds as they deem necessary in their states.  One might think Markell would have agreed since the rising cost of Medicaid is a major budget threat in Delaware, but instead he quoted the president as saying the governors need to be specific in articulating the flexibility they want.  If the real motive was flexibility to drop people off the Medicaid rolls, said Markell, “I think that would be a problem” for the Administration.  Both governors agreed, however, that the NGA meeting gives governors a bipartisan forum for exchanging policy ideas that work for their states, and Markell said “we don’t care if a good idea comes from a Democrat or a Republican, so long as it puts people to work, helps us improve our schools or helps us be good stewards of taxpayers’ money.” Medicaid is a fiscal disaster in the making, for the federal government and state governments alike, and the only answer is to “block grant” federal funds so states can decide what medical services will be covered and for whom rather than being forced to comply with federal mandates.  See http://www.s-a-f-e.org/healthcare.htm, item 4 of SAFE’s plan for real healthcare reform.  The “pretty please” waivers approach is a poor substitute.

2/25/12, B1/B2, Markell touts business bill at Obama meeting, Wade Malcolm – Gov. Jack Markell & 14 other Democratic governors met with the president in Washington yesterday as part of an annual convention for the National Governor’s Association.  The focus of the conversation was job creation and the economy, Markell told the writer in a phone interview afterwards, and the president spoke (among other things) of a new $500M grant program to help community colleges provide job training.  In recent speeches, the president has been urging that states stop slashing budgets for higher education and colleges stop raising their tuition so fast.  Reportedly, officials at the University of Delaware are planning “a smaller increase” than in previous years.  “Markell also took the opportunity to bend the president’s ear” on a bill being co-sponsored by Rep. John Carney (D-DE) & Stephen Fincher (R-TN) http://bit.ly/vXEyXx that is intended to make it easier for smaller companies to do initial public offerings of their stock by exempting them from otherwise applicable regulatory requirements. Judging from another report, the president did most of the talking and the meeting had a somewhat partisan thrust.  There will be another meeting on Monday with governors of both parties.  Democratic governors discuss bypassing Congress with Obama, Alicia Cohn, The Hill, 2/24/12.  http://bit.ly/wClRU5

2/24/12, Lewes resident files suit re windpower turbine constructed on “preservation of open space” land – The News Journal has previously reported complaints about this facility (turbine sitting on top of a 256-foot power, capable of more than meeting the power needs of the University of Delaware campus in Lewes while the wind is blowing with excess electricity to be sold to the city) by some Lewes residents, notably Gerald Lechliter, a retired US Army colonel.  “Lewes group questions UD wind turbine: Project built without environmental studies, permits,” Molly Murray, 4/27/11.  We have not noted any coverage yet, however, on the pro se lawsuit that Col. Lechleiter filed in federal court last month.  The defendants include the University of Delaware (UD), the Delaware Department of National Resources and Environmental Control (DNREC), and numerous other entities and individuals.  Among the charges: Having purchased a 261-acre tract from UD for the permanent preservation of open space, DNREC was barred under state law from authorizing an inconsistent use of the property without “a subsequent act of the General Assembly,” yet this transaction was authorized by the DNREC director and others on their own authority.  The plaintiff’s statement of facts runs about 35 pages in “blow by blow” style with what appears to be meticulous documentation.  It will be interesting to see how things go!      

2/20/12, A1/A2, Energy firm looks to Dover; initial steps taken to bring $300M plant to tech park, Doug Denison – The proposal is by Calpine (based in Houston, TX), for a 309-MW natural gas (combined cycle) power plant, that would be built in the Garrison Oak Technology Park (Dover, DE).  It would be among the largest generating facilities in the state and produce enough electricity to power over 92K homes; power would be sold to the interstate grid versus, say, Delmarva Power.  According to estimates, the project would reduce wholesale power costs statewide (due to reduced transmission & congestion charges as a result of imports from other states by at least $95M, a decrease of $1-1.25 per month on a typical residential bill. [$95M savings would recover capital costs in three years, which seems “too good to be true.” Could correct figure be $9.5M or is $95M over a period of years?] However, various government permits would be required.  Also, Calpine is (a) asking for up to $6M in city bonds for roads and other infrastructure improvements for the Garrison site (currently only occupied by a 10MW solar power facility) if the project were to proceed, and (b) considering applying for another $6M from the state’s New Jobs Infrastructure Fund. About 7 miles of natural gas pipeline would have to be laid from Cheswold to Dover – for which Calpine is hoping to use part of a $12M city-state funding package.  And the PJM group that controls the regional grid might impose conditions: “the latest PJM estimates list up to $47 million in upgrades to power lines, substations and other grid hardware in Delaware, Maryland and southeastern Pennsylvania that Calpine could be required to pay or contribute to in order to connect in Dover.” This proposal is exactly the sort of energy development advocated by David Stevenson’s column on 2/16/12, but a lot of negotiating remains to make it a reality.

2/16/12, A1/A6, New DNREC division plan stirs debate – During a legislative budget review for DNREC, “climate change skeptics” called for a “showdown vote” on plans for a new Division of Climate and Energy.  DNREC secretary Colin O’Mara has already reorganized the agency to reflect “an emphasis on clean energy, energy efficiency, adaptation to sea level rise and preparation for other consequences of rising global temperatures.”  But the governor’s budget would make the change official, and authorize a division level post earning $95K a year. Carolyn Snyder already holds the post, and she reportedly urged participants at an environmental group summit last week to attend the budget hearing and “counter critics of the Administration’s environmental priorities.”

Recap of discussion: Richard Collins, head of the Conservative Positive Growth Alliance: Requested the committee to separate the new post into a separate bill that could be voted down by the legislature without attacking DNREC’s entire budget.  Colin O’Mara: the procedure being followed by the Administration is normal and “makes sense.”  John Nichols, citizen activist: “I do not think that the Office of Climate and Energy should be established, and further, I’m requesting that the regulatory overreach of his [O’Mara’s] office be investigated.”  Chad Tolman, Sierra Club member: Global warming, sea level rise, etc. are real and will be “a very bad thing for Delaware.”  Therefore, “this [referring to what?] is exactly the wrong thing to do and the wrong time to be doing it.”  No resolution of the difference of opinion is reported.

2/16/12, A13, Markell’s effort to lower electric rates is on the right track, David Stevenson (Caesar Rodney Institute) – For background, see “Power Play” story on 2/12/12.  Stevenson adds that “some industrial customers might save a million dollars a year, making it easier to expand facilities and attract new manufacturing jobs to the state,” if they were not being overcharged by municipal electric suppliers.  As for the perceived need to raise property taxes, he suggests that the municipalities could sell their power plants to the Delaware Electric Co-op (which sells electricity at lower prices than Delmarva).  “We looked at the potential for Dover and found a likely selling price of $125 million.  That is enough money, if set aside in an annuity, to cover the lost general fund revenue for decades.”  Also, the sold facilities would be subject to property taxes or an excise tax; they currently generate no tax revenues. 

Further steps the state could take to reduce energy prices: End the current penalty for causing congestion on the regional electric grid by building 1.5 gigawatts of new electric generating capacity (powered by cheap, reliable natural gas) in Delaware.  Also, put in some new natural gas pipelines, which would not only promote lower energy prices but also create thousands of construction jobs and “possibly thousands of jobs added from a Delaware manufacturing revival.”  We like the way he thinks!

2/15/12, B1/B11, Protestors hit sheriff’s foreclosure auctions; NCCo no longer sells homes for delinquent taxes, Esteban Parra – The immediate story is told by the text below a big picture of an anxious looking couple sitting side by side: “Stephen Thatcher and Amanda Lance wait for their home to be auctioned off Tuesday at the New Castle County sheriff’s sale.  For reasons unknown to them, the house was never called.  As they have been doing since November, Occupy Delaware protestors appeared at the sale.”  The story goes on to say the “foreclosure crisis” is “a main issue” for the Occupy Delaware movement.  Protestor Bernard August is quoted that “we will be here every month because of the travesty of what is going on with the mortgage crisis in this country and our state.”  Evidently, banks are not supposed to foreclose on properties even if all the legal I’s are dotted and all the T’s are crossed.  Why then would anyone bother to pay their housing loans and how would the banks stay in business?

2/14/12, A1/A2, Patients bummed out by Markell U-turn; Governor stops implementing law that legalizes marijuana, Chad Livengood & Doug Denison – U.S. Attorney Charles Oberly has indicated that individuals involved in the distribution of marijuana for medical purposes, albeit acting in compliance with state law, would be subject to federal prosecution.  This might extend to state employees engaged in inspecting and collecting licensing fees from nonprofit medical marijuana distribution centers.  Governor Jack Markell suspended implementation of the program on grounds that state employees should not be exposed to this risk, and now comes the predictable blowback from people who supported the legislation – including patients like Chris McNeely, 48, of Dagsboro, who was looking for an alternative to the opium-based painkillers he has used as the result of a broken neck and back injury and which have degraded his digestive system after years of use.  Karen O’Keefe of the national Marijuana Policy Project says other states, including Maine and New Mexico, have implemented similar laws without interference from federal prosecutors.  “It would be inconceivable that the federal government would actually prosecute a state employee.” Don’t be too sure.  In a growing number of cases, federal authorities have challenged state laws, ranging from an Arizona law to identify illegal immigrants to a South Carolina law requiring voters to have a photo ID. The trend towards federal bullying in areas where legitimate state policies are involved strikes us as pernicious.  Furthermore, the national prohibition of marijuana has probably done more harm than good.

2/13/12, A1/A2, Can Fisker keep its promise?  It started with good feelings and a pledge to bring thousands of jobs to Delaware, Eric Ruth & Chad Livengood – This is a rehash of the 2/7/12 story on Fisker’s slowing of work at the Boxwood Plant due to a delay in promised federal loan funds.  There is little new information, just more sound bites from political figures.  For example:  Former Representative Mike Castle: “I’m just worried they [the Feds] may be throwing out the good with the bad.  If they just shut it down because they’re panicked over Solyndra, that’s a problem.”  Governor Jack Markell: “My fear is the partisan squabbling that too often consumes Washington, D.C., may in fact paralyze the process to finalize the modifications to the loan agreement.” Democrats who defend government-backed green jobs: Reportedly quick to note that the $25 billion program to fund the development of alternative vehicle technologies “was established under a 2007 law signed by Republican President George W. Bush.” GOP state chair John Sigler: “No matter who did what . . . they did have the role of government confused.”  Emily Spain of Senator Tom Carper’s office: “It is disappointing, but not surprising, that some would try to seize on this setback for political gain.”

No doubt the loan funds will be freed up, but Fisker’s prospects will remain uncertain even with massive government support.  Not only is Fisker attempting to develop a product of questionable economic merit, but in doing so it is competing with established auto companies with far greater resources. In short, as we said from the beginning, “Fisker is a risker.”

2/13/12, A1/A2, Can Fisker keep its promise?  It started with good feelings and a pledge to bring thousands of jobs to Delaware, Eric Ruth & Chad Livengood – This is a rehash of the 2/7/12 story on Fisker’s slowing of work at the Boxwood Plant due to a delay in promised federal loan funds.  There is little new information, just more sound bites from political figures.  For example:  Former Representative Mike Castle: “I’m just worried they [the Feds] may be throwing out the good with the bad.  If they just shut it down because they’re panicked over Solyndra, that’s a problem.”  Governor Jack Markell: “My fear is the partisan squabbling that too often consumes Washington, D.C., may in fact paralyze the process to finalize the modifications to the loan agreement.” Democrats who defend government-backed green jobs: Reportedly quick to note that the $25 billion program to fund the development of alternative vehicle technologies “was established under a 2007 law signed by Republican President George W. Bush.” GOP state chair John Sigler: “No matter who did what . . . they did have the role of government confused.”  Emily Spain of Senator Tom Carper’s office: “It is disappointing, but not surprising, that some would try to seize on this setback for political gain.”

No doubt the loan funds will be freed up, but Fisker’s prospects will remain uncertain even with massive government support.  Not only is Fisker attempting to develop a product of questionable economic merit, but in doing so it is competing with established auto companies with far greater resources. In short, as we said from the beginning, “Fisker is a risker.”

Also, the bipartisan energy bill passed in 2007 was a mess – unlikely to promote energy independence or combat global warming either – as was pointed out in our blog at the time. Fiscal visionaries at bay, 12/24/07. 

2/12/12, A1/A11/A12, Power play: Markell, other critics feel 9 Del. towns use high electrical rates as a disguised tax that may hinder business growth, Melissa Nann Burke – What a concept, that high electric costs could discourage business investment in Delaware.  Accordingly, Governor Jack Markell and Development Director Alan Levin are pressuring the nine Delaware cities in the Delaware Municipal Electric Crop. (DMEC) consortium to set their rates at or closer to the Delmarva level with the threat of legislation in their back pocket.  The current spread (9-city average) is shown below:

Rate = ¢ per kilowatt hour; Delmarva rates back-calculated from percentages reported

“At a meeting in Dover last month, Markell challenged municipal leaders to reduce their industrial rates to compete with lower-priced Delmarva or the lowest-priced Delaware Electric Cooperative.  If they don’t, they risk losing businesses looking to expand in or bring jobs to Delaware, he said.”

The flip side is that if the cities dropped their power rates, they would probably raise taxes to make up the difference – which could be particularly difficult in cities (like Newark) where tax exempt entities (like the University of Delaware) are concentrated.  “For us to make up that $3 million in annual income from the university alone, we’d have to double the property tax,” Newark Mayor Vance A. Funk III said.  “I don’t know if I want to be in office if that happens.”

How ironic that the governor has discovered high electric rates are a problem after championing ill-conceived policies (Renewable Portfolio Standard, offshore wind power, Bloom Energy boondoggle, etc.) that will inexorably push up power prices statewide.

2/12/12, B3, Coalition develops ecological agenda; misinformation reversals targeted, Molly Murray – A meeting of environmentalists met in Dover to “come up with short and long term priorities.” Ho hum, they are against House Bill 247 (which would freeze existing renewable energy portfolios at Jan. 1, 2012 levels even though Todd Goodman of Delmarva “expects the utility to be able to meet the renewable energy portfolio requirements set by earlier legislation”).  They also want greater protection of freshwater wetlands, a ban or tax on plastic grocery store bags, and opposition to proposed discharge of treated wastewater into the ocean.  But the big item is working to counter the efforts of a “small-but-vocal group” that reportedly wants to “turn back environmental advances and spread misinformation on critical topics like sustainable energy, sea level rise and climate change.” Anybody we know? Go to it, economic and climate realists!

2/10/12, A1/A5, Banks to fork over $25B; Biden says deal sweeter as state share is $45M, Eric Ruth – In a 1/25/12 story, Delaware was one of a handful of states that had not embraced the settlement.  Now everyone has come aboard except Oklahoma, which made a separate agreement.  Delaware Attorney General Beau Biden claimed the finalized pact is “a much better deal than it was two weeks ago” because, among other things, it will permit criminal investigations of banks to continue.  “We’re going to keep at it until we hold those who broke the law fully accountable.” Also, the settlement only shields the five banks concerned from civil liability associated with shortcuts on mortgage foreclosures (robo-signing, etc.). Other banks will now be muscled into joining the settlement, likely raising the total cost on the banking industry to over $40B. And further claims against all banks are expected re the generation of mortgages and packaging of them into pools with shares sold to investors.

Biden’s views are further expressed by his column in the editorial section – Settlement won’t end mortgage probe, A11 – The column begins by characterizing the probe as a “fight to hold those responsible for the housing crisis accountable,” although said probe did not extend to anyone in government, the Federal Reserve, or even Fannie Mae and Freddie Mac. He goes on to say, “I could not have supported a settlement that would put a stop to our fight to get to the bottom of all of the facts.”  And ends by saying “we cannot allow the housing crisis to go down in history as a manmade disaster for which no person or entity was held accountable.”  While touting the benefits that will flow to Delaware entities and individuals, totaling some $50M, Biden fails to mention that the Bank of America (one of Delaware’s largest employers) will be clipped by the settlement to the tune of nearly $8.6B. 

Some believe this settlement far exceeds the harm caused by faulty foreclosure paperwork.  See, e.g., $25 billion bank job, Wall Street Journal editorial, 2/10/12.  “Rarely have so many politicians cashed in so blatantly on so little wrong-doing.  *** [And] even after this round of political extortion, the banks will be asked to pay again and again [for the other matters that remain under investigation].”  Predictably, the costs involved will be passed on to bank customers in general; there is no such thing as a free lunch.  Bottom line, this settlement is not much of a “victory” for anyone.

An associated editorial – Mortgage deal will not revive economy, A10 – rounds out the picture.  Although saying Beau Biden was right to hold out from the initially proposed settlement, the News Journal says the likely effect of the settlement on the housing market and the economy is “not much.”  The writer also notes that the current freeze on housing foreclosures will now be lifted, which may result in a further drop in housing values. Prices must bottom out before the industry can start recovering; the investigation of foreclosure practices has, of course, impeded the recognition of the losses in economic value that took place.

2/9/12, A1/A8, Corps forges ahead on dredging; $16.9 million designated for Del. River this year, Jeff Montgomery – After a fight that has been in process for over a decade, the proposal to move ahead with deepening the Del. River shipping from 40 to 45 feet seems to be gathering momentum.  A portion of the dredging has been completed, and the $16.9M proposal for the current year would represent “the largest infusion of public cash in several years for the $267 million deepening project.”  Despite public reluctance to speak up in favor of this “controversial” project, the Delaware Congressional delegation and Governor Jack Markell are supporting it behind the scenes.  And the new defense marries trumped-up environmental concerns with the purported dictates of fiscal responsibility – creating an odd alliance between environmental groups (Delaware Riverkeepers et al.) and Taxpayers for Common Sense. 

As the fiscal argument goes, the current moratorium on Congressional earmarks is being circumvented by taking money from “special accounts” that serve much the same purpose. http://bit.ly/zY5DSU One would doubt that the environmentalists are truly concerned about cutting government spending, but they do want the spending to go for their priorities.  Thus, says the New Jersey Sierra Club, “instead of using this money to protect our drinking water and the environment, it is being used to destroy it.” 

Despite many problems with Congressional earmarks, their total elimination would tighten Executive Branch control over the budget – which should be subject to the control or at least influence of Congress. Washington Examiner, 11/22/10. http://bit.ly/xMsrFW Allowing the president et al. to veto projects like this one is not necessarily a good thing.

2/8/12, A1/A7, Szczerba: “We will be doing this”; Wilmington fixes eye on crime-fighting model, Mike Chalmers – Follow-up to 2/6/12 story, Where the streets are now safer, dateline: High Point, North Carolina.  The delegation from Wilmington has reportedly been impressed by what they have heard about the High Point strategy to curb drug-related violence, and is planning to try the strategy in Wilmington.  Police Chief Jim Fealy of High Point made an interesting comment about the law professor who originated the strategy: “David Kennedy and I have become personal friends, and I have incredible respect for him.  But talking to real cops, he’ll turn them off in a heartbeat.  You’ll have to translate for him, but he’s right.” 

An accompanying editorial credits Mike Chalmers for reporting on the High Point, NC success story late last year despite an initially defensive reaction by Wilmington officials.  “From this visit, Wilmington police have gathered enough evidence to plan a “call-in meeting,” possibly next month, to tell a group of repeat offenders that their behavior won’t be tolerated any longer.  Rather than coddling them as hapless victims of a culture of violence, [Wilmington Police Department] will contact them with the kind of social services that acknowledge their personal challenges and assist them in leaving a life of crime.” Good job; let’s hope the program works!

2/7/12, A1/A5, Fisker slows work at former GM site; State officials preach patience as firm hopes to access more of $529 million US govt. loan, Eric Ruth – A cash crunch has forced Fisker to lay off 26 of about 100 workers at the Boxwood Plant, which is being refurbished to produce electric autos (Nina line).  The problem: Dept. of Energy is withholding funds from the previously approved $529M loan because Fisker is behind schedule for producing its first model (manufactured in Finland), the $108,000 Karma sedan.  Negotiations are under way to resolve the impasse, with upbeat statements by Delaware politicians.  Even State Republican Chairman John Sigler is quoted that “all of us want the Fisker project to succeed, although Sigler adds that “this is what happens when the government thinks it can pick winners and losers with our taxpayer money.”  

An earlier story (10/26/11, Romney targets Fisker Loan in Calif. newspaper op-ed) repeated assertions by Fisker and the DOE that none of the DOE loan was being used to make Karma hybrids in Finland, i.e., that activity was supposedly being financed by private capital.  So it is a bit surprising to read a statement by Fisker now that “we have received $193 million of the $529 million Department of Energy loan, mostly for the Karma program.” 

2/6/12, A1/A2, Where the streets are now safer, Mike Chalmers – Highpoint, NC has reported notable success in shutting down street crime and related violence by working with community leaders and refraining from immediate arrest and prosecution of nonviolent offenders (drug dealers and prostitutes).  Police in Providence, RI successfully emulated the strategy “to squash two notorious open-air drug markets (as reported by the News Journal last October), and this week Wilmington Police Chief Michael Szczerba and several other police and social service leaders are in High Point to hear more about the strategy.”  Given Wilmington’s high violent crime rate (3rd highest in similarly sized US cities in 2009 & 2010), the strategy – if it worked here – could offer a big payoff.

Professor David Kennedy, formerly at Harvard and now at the John Jay College of Criminal Justice in New York (http://bit.ly/xaC2CE), is credited with originating the strategy and getting High Point to try it in 2003.  Reportedly, “Kennedy’s main point is drug dealing itself isn’t a violent crime, it’s the [drug] market’s robberies, assaults and chaos that are so corrosive to a community.”  Makes sense, but we are unclear from the article whether the effect of the Highpoint strategy is to (1) actually eliminate drug dealing/usage and prostitution or (2) restructure these activities so as to minimize associated violence.

2/3/12, A14, Working poor hit the hardest on income tax, Paul Enterline, Georgetown – “I favor much less federal spending and federal bureaucracy,” says the writer, “but when it comes to the Earned Income Tax Credit, I take the side of the working poor.”  He claims “the working poor pay substantial federal taxes” because (1) they pay payroll taxes (which partially cover the Social Security and Medicare benefits they have been promised), (2) they pay gasoline taxes, (3) they indirectly pay (through higher prices) for the corporate income tax levied on Wal-Mart & other companies, not to mention the cost of state and federal regulations. Also, the EITC encourages people to work instead of going on welfare and “should be considered as one reason why we do not need to increase the minimum wage.”

All Americans are subject to payroll taxes, gasoline taxes, and higher prices.  And although the EITC encourages work to a point, it also boosts the marginal tax rate on higher income (as the EITC benefit phases out) and thereby discourages lower income taxpayers from seeking to move up the economic ladder.  To the extent welfare payments are necessary, we would favor cash payments that show up in government budgets vs. gimmicks like the EITC that distort the integrity of the tax system. 

2/2/12, A1/A7, Well ahead of primary, Delawareans vote with cash, Nicole Gaudiano – As of 12/31/11, according to a Federal Election Commission analysis of campaign finance reports, individual donors in Delaware had given $304K to presidential candidates: Obama $197K, Paul $34K, Romney $34K, and down from there. 

2/2/12, B3, Carper, Carney in good position; campaigns have plenty of money, Nicole Gaudiano – Again, Democrat incumbents are reported with a big edge over Republican challengers.  Cash on hand as of 12/31/11: Carper $2+M, Carney $515K, Coons (up for reelection in 2014) $519K.  Do the issues matter, or are political contests simply a matter of money?

2/1/12, A3, Report: Govt. to run deficit of $1.1 trillion – This five-column inch story on an inside page, with no byline, is pretty important.  According to a report released yesterday by the Congressional Budget Office, the deficit for fiscal year 2012 (ending Sept. 30) will come in at about $1.1T.  And the CBO foresees deficits in “the $1 trillion range for the next several years if Bush-era tax cuts slated to expire in December are extended, as commonly assumed – and if Congress is unable to live within the tight ‘caps’ the lawmakers themselves placed on agency budgets last year.”  Also, “it’s commonly assumed that President Barack Obama and lawmakers in Congress will be able to accomplish little on the deficit issue during an election year.”

Despite massive deficit spending, the CBO projects continued economic weakness and a 9% unemployment rate in Dec. 2012.  As for the lack of progress in reducing the deficit, the basic obstacle is a standoff between spending cutters and tax increasers. The president’s proposed budget for FY 2013, to be delivered around Feb. 13, is “expected to call for higher taxes on the wealthiest Americans and heightened investments in education, manufacturing and transportation projects to jump-start the economy.” Washington Examiner, http://bit.ly/xQJMM7.

1/31/12, A8, Delawareans mustn’t overlook tax credit – Following up on subject raised by a 1/29/12 column, this editorial laments that “as many as 20 percent of eligible families do not file for the Earned Income Tax Credit” on their federal tax returns.  “Some budget-cutting politicians . . . argue against the credit,” but “they are wrong.”  As proof: “the EITC brought more than $147 million back to Delaware families” last year, and “ultimately those dollars are recycled back into the local economy.”  So call the Delaware Helpline at 211, people, or visit http://eitcdelaware.net/.

The “budget-cutting politicians” seem to be outnumbered, too bad.  We know there is no such thing as a free lunch, so who is paying for the EITC handouts? Is the money taken out of the local economy?

1/31/12, A9, Why the low tax rates for super-rich?  Jan Ting – Column rehashes Mitt Romney’s released tax returns, which show him paying an effective tax rate of “only 13.8%” on his reported income vs. a top federal tax rate of 35% on earned income in excess of $379K.  “How are the Romneys, and other super-rich Americans like them, able to pay taxes at a lower rate than middle and upper-middle income Americans?” 

Ting’s answer: most of their income is from dividends and capital gains, which are taxed at lower rates.  The writer drones on that he can find no warrant for taxing dividends and capital gains more lightly than earned income as he doesn’t buy avoidance of double taxation of business income, encouragement of investment, fact that capital gains to investor are not deductible at the corporate level and include inflation, etc. 

The premise of the question is false.  Lower tier taxpayers pay considerably lower effective rates than the Romneys. http://bit.ly/wPqhQf

1/29/12, A1/A11, Crisis ahead on Delaware roads; borrowed, spending plans on chopping block in effort to fix Trust Fund, Jeff Montgomery – A major (and useful) report on how the transportation trust fund has been “hijacked” to fund operating expenses, thereby concealing a growing debt load.  With about 36¢ of every dollar of trust fund expenditures now going for debt service, the funding for highway spending throughout the state is threatened.  Shailen Bhatt, the new DOT director, is said to be serious about addressing this problem, and various legislators are cited to the same general effect.  It seems apparent, however, that there will no easy fix.

A tougher stand is needed on state spending in general.  For starters, why not cancel those proposed hiking trails and bike paths? Also, let’s revisit the plans for upgrading Route 301; the existing road through the Middletown is not that bad in our opinion.

1/29/12, A23, Too many taxpayers fail to claim credit they’re eligible for, Rep. John Carney & the Rev. Clifford Johnson – This column urges Delaware taxpayers to be sure they claim the EITC benefits they are entitled to under the law and lauds the efforts of the Nehemiah Gateway Community Development Corporation and its partner organizations that operate Volunteer Income Tax Assistance sites.  Located in community centers, churches, etc., “these VITA locations provide free tax help and tax return preparation by IRS-trained volunteers.” Encouragement is also provided for using tax refunds “to start a savings program with an Individual Development Account or US Savings Bonds.”

If the tax laws were simplified, people would not need this help.  And the EITC is a costly giveaway, which should be eliminated along with most of the tax preferences under current law.  See http://www.s-a-f-e.org/the_simple_tax.htm for our suggestions.     

1/27/12, A1/A8, Markell pitches $3.54 billion budget: governor builds in Medicaid cutbacks, Chad Livengood – Overall, the operating budget proposes to spend about 1% more than in the current year, while proposing no tax or fee increases.  Re the Medicaid cutbacks: “Medicaid program administrators assume enrollment . . . will grow by 20,000 . . . to 234,000 residents [so ¼ of Delaware’s population is poor or disabled?].  Markell budgeted $21.7 million to cover the growth in demand.  However, “the Democratic governor built in about $4.3 million in cuts in Medicaid that the budget-writing Joint Finance Committee could vote to stop by slashing spending elsewhere,” e.g., “cutting $2 million in costs [co-pays, holding down reimbursement rates] for physical therapy, and prescription drugs.”  Last year, $5 million in Medicaid cuts were proposed, of which none were made. Comment: the rate of growth in Medicaid spending is unsustainable, and this budget does not reflect a serious attempt to address the problem.

1/27/12, A14, Markell proposal adjusts to new realities – Editorial paints governor’s proposal as a good start towards a “fair, reasonable, tight budget.” The addition of 20,000 people to the Medicaid rolls is characterized as “part of the cost of the Great Recession’s aftermath,” which “it is hoped” may be reversed in time as “many of the people on Medicaid will be able to return to private insurance.”  Still, “the state should start looking for ways to control costs.”  Amen to that last point.

1/27/12, A9, Half-page advertisement addressed to “Dear Reader,” David G. Anderson - The ad homes in on green energy policies including the president’s denial of a permit for the Keystone XL Pipeline, the EPA’s developing investigation of fracking, and the arguments of renewable power advocates that “they are simply trying to make the planet a healthier place.”  Wherefore, the public “should raise bloody hell and shout to the roof tops” in favor of rational energy policies.  We agree with most of the policy points, but the dramatic call for action falls flat.  Unless and until Mr. Anderson can get some political candidates on board, it’s hard to see his campaign bearing fruit.

1/27/12, B1/B2, Minimum-wage hike advances; Senate bill would raise figure to $7.75 on Jan. 1, $8.25 a year later, Doug Denison – Making the Delaware minimum wage $1 higher than the federal standard is a dubious idea, but the arguments against this bill (SB 163) were presented in the course of a “lengthy debate,” the Senate passed it (12-9), and the bill will now go to the House for consideration.

The most telling argument against SB 163 is not that it is “anti-business,” but that it would be a job killer.  Thus, an owner of five IHOP restaurants testified that a higher minimum wage would force him to fire employees and possibly close one of his locations.  And as Senator Colin Bonini observed, “the market is going to function whether you [the Senate] ignore it or not.”  This 4-minute video from Cato Institute supports Bonini’s point. http://bit.ly/cka0zd

1/26/12, A1/A6, Dropouts bill put on hold; opponents cite cost of hiking minimum attendance age to 18, Doug Denison & Chad Livengood – Currently, “20 states require students to attend school through [until?] age 18,” while 30 states (including Delaware) have a lower standard. About 1,442 Delaware students under 18 dropped out of high school last year, representing 3.7% of all high school students in the state. Calculated on the basis of students who entered 9th grade and graduated from the same school, the graduation rate was 87.53%.

A bill (HB 244) has been introduced (it was tabled yesterday after a hearing before the House Education Committee) to raise the age at which Delaware students can lawfully drop out of school from 16 to 18.  Proponents of HB 244 (including sponsor Rep. Debra Hefferman) say the change would contribute to higher graduation rates, with long-term consequences for the students concerned. The president made a similar point in his State of the Union address.  “[When] students aren’t allowed to walk away from their education, more of them walk the stage to get their diplomas.  So tonight, I call on every state to require that all students stay in high school until they graduate or turn 18.”  

(According to the speech transcript published by the New York Times, the president actually said “I am proposing that every state — every state — requires that all students stay in high school until they graduate or turn 18,” implying a federal mandate.  One observer likened the proposal to a “federal truancy law,” and suggested that it was included in the speech as a sop to teachers’ unions. http://bit.ly/wbJen4)

The Office of the Controller General estimated the state cost for HB 244 as $1.6 million in FY 2013 assuming 50% of potential dropouts stay in school, with $528K additional cost for the state’s 19 school districts.  It does not sound like cost is a decisive factor, although Rep. Earl Jacques said the local districts “are already strapped.”

Rep. Joe Miro said some students are not well served by the traditional high school and forcing them to stay in school may not be constructive.  However, HB 244 provides exceptions for students who leave school at age 16 to get a job or transfer to nontraditional educational programs. 

Our reaction is that this bill may be a good idea so long as the aforesaid exceptions are not eliminated. 

1/25/12, A10, Del. rejects settlement with mortgage lenders; accord puts new standards in place, Eric Ruth – There is a draft settlement between nation’s five largest mortgage lenders and the states that would cost the banks $20+B ($17B for principal reduction on loans, $5B would go in a reserve account for “various state and federal programs,” and $3B would be used to help homeowners refinance their mortgages at 5.25%.  Critics see these terms as not punitive enough, and Del. Attorney General Beau Biden seems to be taking that line in refusing to back the settlement although a statement from his office reportedly said “it is too early to discuss specific reasons for the refusal.”  The attempt to demonize the banks will string out the housing crisis and impede the recovery that everyone claims to want.  Bad idea!

1/24/12, A8, Del. should OK popular vote system for selecting president, Paul Baumbach (president of Progressive Democrats for Delaware & a member of News Journal’s Community View Board) – Argues for the National Popular Vote (NPV) proposal on grounds that it essentially makes presidential votes cast in “safe” states like Delaware (Blue) or Wyoming (Red) irrelevant while giving undue influence to voters in “battleground” states like PA.  Thus, “NPV doesn’t help parties, it helps voters, like you and me.”  MD and NJ have approved the NPV proposal; DE should sign up too. “Please consider reaching out to your state senator, and urge them to work for House Bill 55’s passage.  Your voice matters, and your vote can, too.”

The NPV compact (if enough states joined) would motivate candidates to focus primarily on the most populous states. (Del. Chatter, 1/17/12)  It would also increase the possibility of a close presidential election being stolen by voting fraud in a handful of big states.  The Administration’s legal challenge to voter ID laws is worrisome in this regard. http://bit.ly/uJZlXM

1/23/12, A1/A2, Markell’s $1.4M in campaign ammo a record for Delaware, Chad Livengood – The stats (per a campaign finance report filed last week with the Delaware Public Integrity Commission): Started 2011 with $0.3M, raised $1.3M, spent $0.2M, ended year with $1.4M. Governor Markell enhanced his national visibility by chairing the Democratic Governors Association, and some of the money raised was from out of state fundraisers.  Former state Senator Charlie Copeland, who is supporting small businessman Jeff Cragg for governor, asks “why are all of these people out of state giving [Markell] this money he’s not going to use this year.”  In part due to his campaign war chest, Markell is viewed by some, e.g., the Cook Political Report and Governing magazine, as a shoo in for reelection.  Hmm, wouldn’t it be appropriate to withhold judgment until the campaign issues have been laid out? After all, Cragg just announced his candidacy and it’s a long time until November.   

1/21/12, A6, Coons rails against piracy legislation backlash, Aaron Nathans – Senator Chris Coons co-sponsored an Internet piracy bill that attracted the ire of powerful on-line constituencies such as Google & Wikipedia.  In an interview, he reportedly “criticized the rough ride the legislation has received in cyberspace” and claimed the Senate version of the bill “lacked the overreach of the House language.”  Maybe, but we are tired of sloppily drafted bills being rushed through Congress on the assumption that no one is paying attention.  It’s good to see a setback for the “big government” express. 

As for future legislation, we don’t think the government should be granted authority that could be used to shut down opinionated Websites (like ours) based on trumped-up claims of copyright infringement.  It should be legal to discuss, cite, and/or link to any content on the Internet with appropriate attribution, end of story! We also agree with the Washington Times about the already overly broad ambit of copyright law, which can potentially be asserted to keep charging for content (such as the Gettysburg Address or Martin Luther King’s “I have a dream” speech) ad infinitum. http://bit.ly/wQbcEN Why doesn’t Senator Coons sponsor a bill to do something about these problems?

1/21/12, A8, Urbanization has caused rising Del. temperatures, Gregory Inskip (Wilmington) – Re a Jan. 6 story that claimed 2011 was “Delaware’s hottest year ever,” the writer comments that: (1) Rising surface temperatures in Delaware are likely due to the effects of advancing urbanization rather than rising levels of CO2 in the atmosphere; and (2) average global temperatures measured by satellite were slightly higher in 1998 than in 2011.  Ergo, there is no logical basis for Delaware’s policy of forcing ratepayers to subsidize “expensive and environmentally destructive wind power development in the Pennsylvania countryside.”

1/20/12, A1/A2, Markell previews wish list to spend and save; smoke-free area would be expanded, Chad Livengood & Doug Denison – “Gov. Jack Markell wants greater scrutiny of healthcare spending, miles of new hiking and biking trails across the state [capital cost of $13M], and a total ban on smoking outside government buildings.”  His State of the State address called for a new tax credit for businesses that hire veterans and increased disclosure by Dover lobbyists of “what legislation they’re trying to get passed or defeated.”  And the governor expressed concern about high electricity prices that may cause some DE businesses to leave the state, albeit without proposing adjustments of the government policies that are driving up rates such as the Renewable Portfolio Standard.

The biggest growth area in state spending is Medicaid, and it is certainly arguable that promoting more healthy life styles could help to cut expenses.  As the governor quipped: “In essence, we don’t have a health care system; we have a sick care system.”  But the government can go just so far without inappropriately infringing on individual liberty. Banning smoking in public buildings was OK; banning it outside or even in private residences and vehicles would be going too far.

1/20/12, A1/A7, Politicians pitch salvation plan for Hare’s Corner: Proposal would divert mail to Delaware plant, Melissa Nann Burke – At a public meeting (New Castle School), Senator Tom Carper asked USPS officials to consider an alternative to closing the Hare’s Corner processing center and sending all of Delaware’s mail to Bellmawr, NJ.  Under Carper’s proposal, mail currently processed at an Easton, MD processing center (also on the closure list) would be sent to Hare’s Corner rather than being fed into an “already overworked” Baltimore facility.  “We will take this to the highest level,” said Carper, to “the cheers of hundreds in the audience.” And Senator Chris Coons added that he had not seen the USPS study, and “before I ask anyone to schlep 35 miles up the highway, I’ve gotta see the math.” 

Granted that federal legislators are expected to be attentive to local concerns, we still wonder whether Delaware’s senators should be spending so much time and energy on this subject.  Perhaps their time could be better spent coming up with ideas to cut wasteful government spending.  Also, how can the USPS be run like a business when it is under this sort of political scrutiny?  No wonder USPS and FedEx are eating their lunch.

1/19/12, B1/B2, Electoral voting effort stalls; Senate committee tables National Popular Vote legislation, Chad Livengood – A proposal that Delaware’s three Electoral College votes in presidential elections be awarded to the winner of the national popular vote is still in play.  House Bill 55, which passed the House last year, was tabled yesterday by the Senate Administrative Services/Elections Committee after hearing testimony.  Representatives from National Popular Vote, a California-based advocacy group, reportedly said “adopting their proposed law would make Delaware more relevant in presidential contests.”  State Republican National Committeeman Laird Stabler said it would do just the opposite.  “Why would a presidential candidate spend any time in Delaware when they could be in New York, California, Indiana or Pennsylvania?”  Clearly, Stabler is right – it’s time for the legislature to reject this proposal and move on to more important issues.  See also SAFE director Jerry Martin’s comments in last summer’s SAFE newsletter.  http://www.s-a-f-e.org/nwsltr/nwsltr62.htm#National

1/17/12, B1/B2, Winter doesn’t freeze movement; protestors endure cold, expect “explosion” of Occupy events in spring, the News Journal – Why have Brian Davis (a 21-year-old man from Milford) and others been occupying a tent encampment in the Peter Spence Plaza of downtown Wilmington since November?  The stated reasons are along the lines of protesting corporate greed and economic inequality, but one would imagine the real reason is to attract publicity.  One gathers from this story that the News Journal will help. Is this interminable protest truly more newsworthy than the activities of people who are trying to find a job and make their way in the world?  And by the way, who is paying for it?

1/15/12, A1/A11, We’re investing in journalists, equipment and technology, Howard L. Griffin (president & publisher), David F. Ledford (executive editor) – This story begins with an announcement that the News Journal Media Group (including the newspaper, delawareonline.com, and Spark & Signature Brandywine magazines) is about to launch a new full-access subscription model.  As of Feb. 7, nonsubscribers “will be able to view [only] a limited number of stories per month before being asked to subscribe.”  Perhaps this will be a good business move, but with all the free content on the Web we are not convinced people will pay for access to the News Journal’s on-line content – at least on top of paying for the print edition.  Similar efforts by other publishers, e.g., the Wall Street Journal, have mainly limited WSJ’s penetration of global mind share and reduced on-line ad revenue in our opinion.  But the News Journal is under financial pressure, and one can’t blame them for trying to think outside the box.

A second strategy: the News Journal will build on its tradition of “watchdog reporting that holds people in power accountable.” The ensuing self-congratulation is overdone, we think, as the News Journal hews to doctrinaire “liberal” policies and ideas in its news coverage (the editorial section is somewhat more balanced). 

Thus, the News Journal has rarely contacted SAFE about its viewpoints or activities, although we have championed important ideas over the past 16 years and been ahead of the curve on big stories like the down-rating of US treasuries (we foreshadowed it in the summer of 2011, a week before S&P took the plunge) and the “failure” of the Joint Select Committee on Deficit Reduction.  If the News Journal was interested in finding out what Delawareans think versus telling Delawareans what they should think, one might expect them to show more interest.

A full-page advertisement ran on A-10 (just before the continuation of this story) featuring News Journal Reporter Cris Barrish.  Nice big picture, coupled with a message about Barrish being “a seasoned, investigative reporter” who is dedicated to “exposing the evil that corrupts” the “community I live in.”  Readers are invited to e-mail him if they “have a tip or story to share.”  Interestingly, Barrish wrote a story about SAFE when we were just getting started in 1996. http://www.s-a-f-e.org/history.htm

In view of all that SAFE has done since 1996 and its current high level of activity, maybe Barrish or some other reporter on the News Journal staff should do a follow-up story on why we think this country is being misgoverned and how we are trying to fight back.      

1/15/12, A18, Dilly-dallying on port deepening will cost the US dearly, George Will – This column focuses on the controversy of deepening the Port of Charleston by 5 feet (from 45 to 50 feet) to accommodate larger container ships that will come into use after the widened locks in the Panama Canal are opened.  The concern is that the studies of and legal challenges to the port deepening could stretch out interminably, forcing port traffic to go to foreign ports.  What ever happened to the country that built the Empire State Building in 14 months, the Pentagon in 16 months, etc. http://bit.ly/xvc0bT Jim Newsome, CEO of the South Carolina State Ports Authority offers the axiom “that institutions become risk averse as they get challenged [which] is increasingly pertinent as America changes from a nation that celebrated getting things done to a nation that celebrates people and groups who prevent things from being done.” Shades of the longstanding controversy about deepening the Delaware River shipping channel from 40 to 45 feet.

1/15/12, A18, Naysayers of climate change are in denial, Kristine Qualls, Centreville – Response to Bill Day’s 1/8 letter (http://bit.ly/xqbOrC), which rebutted a 1/1/12 column by former Senator Ted Kaufman.  Qualls concedes human behavior may not be “the root of changing conditions,” but says, “we’ve had a healthy contribution” [whatever that means].  She also concedes existence of “scientific reports that argue against the legitimacy of our effect on climate change,” but claims [basis?] “counterarguments outnumber them 97 to 3.”  Therefore, turn down the thermometer, ride a bike, etc. so even though “the Earth is going to get hotter . . . we can reduce human impact on its behavior.” [Oh, please!  And the News Journal compounded the confusion by publishing a “correction” on January 17 that “William Day was the author (target would be accurate) of Sunday’s ‘Naysayers of climate change are in denial’ letter.”]

1/15/12, F1/F5, Perdue biomass boiler operation proposed; plant would use local sources for fuel, create jobs, Deborah Gates  - In Salisbury, MD, Perdue Agribusiness and a PA energy company will build a heat and power biomass boiler operation to provide 10 megawatts of electricity from “poultry litter and other materials.”  Perdue officials call the project another step to create renewable or alternative energy solutions, which would apparently count as “renewable energy” for purpose of Maryland’s Renewable Portfolio Standard.  [Hmm.  Should manure-to-energy projects count as “renewable” energy?  Granted, the fuel is not extracted from the earth.  On the other hand, it’s hard to visualize chicken waste being as clean burning as natural gas – although air pollution concerns are not mentioned in the article.  Maybe chicken waste should be treated and disposed of instead of being burned for fuel.  Has anyone studied the economics?]

1/13/12, A2, Reducing soot, methane may slow warming; scientists say they offer quicker fixes, Seth Borenstein – A split of opinion appears to be developing as to whether to focus on reducing C02 emissions or reducing methane and soot.  The latter approach, according to some scientists, could offer quicker fixes for global warming.  Moreover, according to a report in “Science,” soot reduction could “save between 700,000 and 4.7 million lives each year.”  One reason offered for the saving lives claim is that soot causes rainfall patterns to shift and is therefore contributing to droughts in southern Europe & parts of Africa and monsoon problems in Asia.  Two dozen scientists ran computer models based on use of 14 methods of controlling methane and soot, which if adopted more widely “would reduce projected global warming by 0.9º F [reduce 2.2º increase to 1.3º increase] by the year 2050.” [These numbers should be taken with a grain of salt; past computer projections of climate change have proven quite inaccurate.] Stanford University climate scientist Chris Field worries, however, that officials might be encouraged by these results to delay requiring CO2 cutbacks. [Gasp!] 

1/13/12, B2, Senator proposes raising minimum wage; would hit $8.25 in January 2013 [sic], Doug Denison – Senator Robert Marshall’s bill would increase the minimum wage in DE to $7.75 as of 1/1/13 and $8.25 as of 1/1/14.  He says the recession is thawing so business could afford to pay higher wages and give low-end workers a boost. The resulting loss of jobs by low-end workers is not mentioned; it should have been.  For a more realistic view, check out this Cato video (2010, 4+ minutes). http://bit.ly/cka0zd

1/11/12, A1/A2, Budget, political issues loom as legislators return to work, Chad Lievengood & Doug Denison – Another session of the Delaware legislature has begun, and the leading issues will include: (A) efforts to “contain the $600 million Medicaid insurance program,” which according to Governor Jack Markell is eating up a larger portion of the state budget every year.  However, Rep. Dennis Williams, chairman of the Joint Finance Committee, favors a “hands-off” approach; and (B) a proposal to freeze the phase-in of the renewable [energy] portfolio standards imposed on Delaware electric utilities.  Rep. Greg Lavelle (R-Sharpley, who plans to run for the state Senate in the next election) seek reelection is pushing the proposal on the premise that “our energy policy is flawed . . . and remains on autopilot.”  Rep. John Kowalko, chair of the House Energy Committee, sees an RPS freeze as “a dramatic step back to the dark ages of fossil fuels.” 

1/11/12, A8, Coons discusses downtown tourism; Senator, municipalities trade ideas on how to attract visitors to historic areas, Aaron Nathans – Senator Coons has been conducting “listening sessions” in communities with historic downtown districts, including Delaware City and New Castle.  Apparently, the objective is to gin up “grassroots” support for the Delaware national park that he and Senators Carper have been trying to sell in Washington. [Deficit, what deficit?]  Thus in the meeting with people from New Castle, Coons said: “My sense is you have a generally healthy town” having completed successfully in the past for government grants.  Refreshingly, some of the locals suggested that other measures – such as better Delaware signage for Old New Castle – might be helpful.

1/10/12, A9, For education, encouraging only the best, Marvin N. “Skip” Schoenhals – The writer is chairman of WSFS Bank and heads Vision 2015 study of the Delaware school system.  This column is an edited version of his speech to the Delaware Chamber of Commerce on Jan. 9.

Schoenhals attributes the turnaround he led at WSFS to a culture change, and says, “now we need to help public education do the same thing.”  He envisions an education system that serves “all of our children, all of the time.”  And he suggests that while the school system is working fine in some areas, it is falling down in others.  For instance: (a) 2/3 of children showing up for kindergarten cannot perform at the appropriate level of a 5-year-old; (b) just 12 schools, spread throughout the state, produce over 60% of the dropouts; (c) nationally, 43% of students “meet what SAT defines as college ready,” yet in Delaware the percentage is only 29%; (d) internationally, the US has slipped from 1st to 10th in college attainment.

Delaware has islands of excellence, but some things need to change.  (1) Develop an effective way to evaluate how schools and districts are performing that is independent of political posturing; (2) Establish standards of student performance that are equal to the best international standards; (3) Better recognize and reward high-performing districts and schools, whether traditional public schools or charter schools; (4) Find ways to help subpar school districts, or if necessary force changes (but without withholding funding); (5) Encourage the teacher’s union to support pay variations based on performance (“one size or system of pay does not fit all”) versus insisting on personnel practices that are “more appropriate for a factory floor.”

Interesting talk, but it seems to leave out a crucial point.  Without competition and choice, in our opinion, no top-down driven school system will be truly effective.

1/10/12, B1/B3, GOP candidate fed up with dysfunction, financial woes, Wade Malcolm – Pictures; (A, small on front page) – Kevin Wade in suit with campaign button, holding his one-year-old grandson; (B, medium on page 3) – State GOP Chair John Sigler holds up Wade’s hand after announcement speech. 

Senatorial candidate Kevin Wade will campaign as an anti-Washington candidate up against a long-time DE office holder (treasurer, governor, representative & now senator).  “I wouldn’t be standing here today if Tom Carper had done his job.”  Unlike the previous GOP candidate for the Senate, Christine O’Donnell, Wade is reportedly focused on fiscal issues.  That’s fine by conservatives like Anita Tucker of Middletown, who helped to found the First State Patriots and believes social issues are “not the biggest thing we need to worry about right now.” 

Emily Spain of Carper’s staff says her boss “has been “relentless in his efforts to bring his colleagues together to get things done to help Delaware and the nation.”  The implication: it’s not Carper’s fault that Washington is gridlocked, nor could Wade change things if he was elected.  [What if the GOP captures the Senate?]  For his part, Wade said he could make a difference.  “In America, one man can make a difference.  Steve Jobs made a difference.  Thomas Edison made a difference.”

1/8/12, A1/A11, GOP campaign taking shape; Statewide ticket forms in contests against Democratic incombents, Chad Livengood – “Delaware Republican finally have a slate of statewide candidates assembled to challenge formidable Democratic incumbents.”  The announced candidates are:

Kovach is the only elected official among the slate of Republican candidates for statewide offices, and although he is backed by Republican Party leaders, the story says he “first has to get past Brandywine Hundred resident Rose Izzo in a GOP primary.”

GOP State Chair John Sigler is quoted that “some of [the Democrat] incumbents are not as well-liked as they think they are” and “certainly their policies aren’t as well-liked as they’d like to think.” 

Joe Aronson, executive director of the Delwaware GOP, and Governor Jack Markell professed to be unconcerned.

Although 2012 may offer opportunities for outsiders given voter angst about a weak economy, the GOP candidates must overcome “the nearly 112,000 voter-registration advantage Democrats have over Republicans in Delaware.” [The current registration of DE eligible voters breaks down Dems. 47.4%; GOP 29.0%; Ind. 23.6%. http://1.usa.gov/A0su5i]

Hard to say from the article what issues the campaigns will raise.  [We’d like to see a vigorous challenge to state energy policies, and, in the case of the Congressional races, the huge federal fiscal problem.]

1/6/12, A1/A5, Delaware’s hottest year ever, Jeff Montgomery – According to “federal statistics,” the wild and sometimes destructive weather of 2011 will go into the record books as Delaware’s hottest ever.  Statewide annual temperatures are expected “to reach of top 58⁰ exceeding the “previous all-time high” of 57.8^{0 set} in 1998 and 1990.  The ten hottest years (including ties) are said to be: 1913, 1921, 1949, 1990, 1991, 1998, 1999, 2002, 2006, 2010, and 2011.  Of course, these data only go back to 1895, when recordkeeping began.  Also, these aren’t satellite data, since that series did not begin until much later.  The measurement bias resulting from the location of measurement stations in the vicinity of urban areas is well known.

David Robinson, a Rutgers University professor and New Jersey’s state climatologist is quoted that “you’ve got one underlying factor, and that is, the globe is warming.”  He goes on to assert that “the major portion of the warming that the globe has seen in the last several decades can be attributed to humans impacting greenhouse gases and other parts of the climate system.”

The story acknowledges that “opponents” of the man-made human warming theory “have argued that the ‘green’ energy movement needlessly hobbles economies with government mandates corrupting free market forces.”  Unlike the authors of the 1/1/12 story on the warm winter we are having thus far, however, he does not acknowledge that we may simply be seeing ordinary weather variability.

1/6/12, A14, Leaner, tougher military fits new strategy needs – The president made “a rare visit to the Pentagon” to announce what is called a new strategic review of America’s military policy. “We’re turning the page on a decade of war,” he was quoted.  And as far as the writer is concerned, the change is probably a good idea because (a) “too many deals have been made between Congress, the military and defense contractors,” and (b) “it is time to rethink the Bush Administration strategy of almost constant war.  However, “this doesn’t mean a dividend for non-military programs” because “the military’s mission must be aligned for long-range US interests.”  Still, “a leaner, tougher, wiser military will serve us well.”

We would be inclined to take this announcement with several grains of salt: (1) Note that the president has shown no interest in cutting spending in any area other than defense. The big potential savings reside in entitlement and government grant programs.  See this statement by former Fed Chairman Alan Greenspan. http://bit.ly/zDJ0d6  (2) The abrupt departure from Iraq was a blunder, and the drawdown in Afghanistan is being rushed with results that may negate the benefits of the “surge” there.  (3) War with Iran is a near-term possibility, and we had better be prepared for it.  Cutting the size of the Army forces, stretching out development time for the next generation (F-35) fighter, etc. are not necessarily good ideas right now. Also, the connection between the contemplated spending cuts and the further cuts that would be forced by the upcoming sequester of discretionary spending are not so much as mentioned.

1/4/12, B1/B2, Nuclear plants investigated; security shortcomings found at Salem/Hope Creek complex, Jeff Montgomery – See 12/7/11 article: NRC chief: Nuclear industry has become complacent; special inspections, plant shutdowns are increasing, Matthew Daly (AP).  Now it is reported that inspections findings at the Salem/New Hope complex have resulted in a security citation that was relayed to PSEG in mid-December but “made public only recently” in a document that described the problems as “greater than very low safety significance.”  Although the problem was promptly fixed, the problems are reportedly “being considered for escalated enforcement action.” 

David Lochbaum, the nuclear safety program director for the Union of Concerned Scientists, and Norm Cohen of the Unplug Salem group are quoted as complaining that the NRC should have provided further details. Note the fixation on reporting any unfavorable news about nuclear power plants, no matter how insubstantial.   

1/4/12. B1, PBF will meet with Del. City residents; emergency flaring raises public concern, Jeff Montgomery – State, city, county and public officials will meet with Delaware City area residents tonight to review public notification rules for emergencies at PBF’s nearby 210,000-barrel per day refinery.  The genesis of the meeting: a power outage on Nov. 27 “forced an extended use of open-air incineration towers to burn off gases stranded in pipes and suddenly idled processing units.”  PBF’s community information line also was disabled, “leaving some residents unable to get quick answers about the severity of the problem.” 

The action taken was probably preferable to allowing the refinery to blow up.  And by the way, there should be more concern about the stress being placed on the power grid by increasing reliance on undependable, expensive renewable energy sources.

1/4/12, A9, End of ethanol subsidy may mean higher prices; gasoline could cost 4.5 cents a gallon more very soon, Chris Woodward – Ethanol blenders have been receiving a 45¢ a gallon tax credit for the 10% amount blended into each gallon of E-10 fuel, ergo the 4.5¢ a gallon cited in the headline.  And the higher prices would result if Congress does not renew the credit (costs the Treasury $6B per year), which lapsed at the end of 2011.  Also, Congress may drop the 54¢ a gallon tariff on ethanol imports.  However, never fret, ethanol fans, because “more demand for ethanol is guaranteed by an escalating federal alternative-fuel mandate requiring more use of it.”

Unless the mandate is also eliminated, the ethanol cost penalty will simply be shifted from taxpayers to consumers. 

1/4/12, A10, End of ethanol subsidy shows sign of good sense – This editorial correctly lauds the termination of the ethanol credit [it remains to be seen whether it is truly dead, a lot of expired tax credits may yet be extended]. “Finally, a little bit of common sense emerges in Washington.”  This is a considerable overstatement since, as noted in the previous story, the cost penalty is being shifted rather than eliminated.

1/4/12, A10, Truth of climate change cannot be denied, David Onn (Newark) – The writer lauds Ted Kaufman’s column on January 1, which “finally drew together incontrovertible information on the hundreds of thousands, perhaps millions, of members of professional scientific societies in the US alone who understand and support the concept of present and future climate change brought on by our overuse of carbon-based energy sources.  The ‘deniers’ of such concepts can only summon up a mere ’35,000 scientists disagree’ and present zero evidence to support their utterly untenable position.”

Sorry, we think the evidence points to very different conclusions.  A Delaware Voice column rebutting Kaufman’s column has been submitted to the News Journal – we’ll see whether they publish it.

1/2/12, A8, Scare tactics, inaccuracies taint sea rise coverage, Richard Rogers, Prime Hook Beach – The reported rate of sea level rise for Delaware, 3.35 millimeters per year, works out to one inch every 7.5 years or 13 inches in a century.  Hyping sea level rise has affected property values, scared off visitors, and “provides our politicians and government agencies with an excuse for not maintaining the barrier dunes along Delaware Bay.”  Accordingly, “a closer, more reasoned examination, one that does not rely on scare tactics, rush to judgments and arm wave pronouncements, [may be] warranted.”

Sounds reasonable.  Also, about half of the sea level rise is estimated to be due to subsidence of the land.

1/1/12, A11, Mild weather redefines winter landscape; Flowers are out, lakes unfrozen, snow missing, Darryl Fears & Juliet Eilperin – It’s been a quite mild winter thus far, and this article informatively recaps some of the evidence around the country.  The coverage is refreshingly rant-free, e.g., “both scientists and those who question dire global warming predictions emphasize that one warm season should not be interpreted as a broader sign of climate change.” Among the experts cited in the article is Patrick Michaels of the Cato Institute, who says climate change is happening, but not at the “magnitude” some suggest.

Good, it is not necessary to feel guilty about the absence of snow and ice.

1/1/12, A14, Even an Obama win in Nov. shouldn’t dishearten conservatives, George Will – Without making an outright prediction, Will sets up the scenario in which Republicans retake the Senate but not the White House.  Oh well, Congress could still hold the president accountable. Thus, given the Senatorial power to confirm “many senior officials of the executive branch and agencies, . . . only weakness of Republican will [could] enable, for example, the [EPA] and the [NLRB] to continue being unconstrained instruments of presidential decrees.” [Compare our 1/2/12 blog entry, which concludes that very limited improvement in the currently miserable functioning of the government could be expected in this scenario.]

A big reason for optimism about America’s economic future, says Will, is the dawning realization that this country has a “stunning abundance of fossil fuels.”  This is anathema to the left, because “progressivism exists to justify a few people bossing around most people, and because progressives believe that only government’s energy should flow unimpeded, they crave energy scarcities as an excuse for rationing – by them – that produces ever-more-minute government supervision of American’s behavior.”  No wonder progressives “bent the willowy Obama to deny approval of the Keystone XL Pipeline” and “raised environmental objections to new techniques for extracting gas and ‘tight’ oil from shale formations.”  But “fear of climate change” is a “spent force,” and the latest UN climate change confabulation “signaled the end – probably for decades, if not forever – of a trivial pursuit that began 14 years ago with the Kyoto Protocol.” 

If only things were this easy.  Do not underestimate the tenacity of the other side; the green eco-lobby is not about to go quietly into the night.  See the next column.

 1/1/12, A15, Climate change must be addressed, [former Senator] Ted Kaufman – “We are beginning a new year, and the silence in Congress is still deafening.  Will there ever be a debate about what should be done to deal with climate change?”  For the benefit of those who don’t “believe” in climate change, Kaufman proceeds to cite one organization after another that purportedly support his alarmist views: NASA, National Academy of Sciences, American Association for the Advancement of Science, American Chemical Society, American Geophysical Union, American Institute of Physics, Geological Society of America, and “even the American Medical Association,” which says “scientific evidence shows that the world’s climate is changing and that the results have public health consequences [bad or good?].”  In short, “to not take climate change seriously, you must somehow believe there is a gigantic international conspiracy involving the world’s top scientists, all of whom have agreed to distort their data.”  So let 2012 be “the year our leaders finally listen to the scientific community and begin to fashion solutions to protect our world.”

This is way over the top!  Clearly the climate is changing, it has been changing for billions of years and will continue doing so, but the potential harm has been vastly exaggerated, the theory that human-caused carbon emissions is the prime driver for a warming trend remains unproven, and the efficacy of renewable energy in preventing climate change is dubious at best.  See, e.g., “Even the warmists don’t believe in global warming,” Louis Woodhill, Forbes, 12/28/11.  http://onforb.es/rOTX4n

BEFORE 2012, two predecessor microblogs were maintained.

Global Warming - Coverage of manmade global warming theory & energy policy in the [Wilmington] News Journal. Started in December 2009.   View  2009,   2010,   2011.

Members Microblog  – Views and votes of members of Congress from Delaware, and when applicable their electoral opponents, on SAFE agenda issues.  Started in October 2010.    View 2010, 2011.

4/27/09 – Delaware’s fiscal situation: a case study

top