Tag: Rep. Alexandria Ocasio-Cortez

Texas and California are Polar Opposites on Energy Regulation

By Todd Lassa

The Texas legislature has begun a comprehensive investigation on What Went Wrong, a week after a severe winter storm pushed its power grid within “minutes from failing” with three hearings by four state House and Senate committees. 

More than 13 million state residents suffered no heat and electricity in sub-freezing temperatures as the Electric Reliability Council of Texas issued rolling blackouts to prevent a total collapse that experts say could have left the state without power for months.

Critics of Texas’ independent streak blame a policy that prevents the state from “borrowing” energy from neighboring states, in order to avoid federal regulations. Equipment at natural gas, coal and nuclear facilities became frozen and broke down, Time magazine reports, adding that after the last Texas freeze that caused blackouts, in 2011, federal regulators recommended the state weatherize energy equipment, including pipes, valves and other things necessary to keep the grid operating. When power in the state was back up again, many consumers were hit with energy bills of $10,000 and more, the result of unregulated price spikes by ERCOT for energy providers.  

Perhaps trying to divert attention from the real problem that was affecting millions of Texans, Republican Gov. Greg Abbott blamed the state’s wind turbines that failed due to iced-up windmill parts and solar panels that collect no sunlight when it’s not sunny. (34 gigawatts were down in Texas on February 15, with wind representing just 4 gigawatts of that total.) Fox News’ prime time commentators directed blame to the “Green New Deal” proposal by U.S. Rep. Alexandria Ocasio-Cortez, D-NY, to combat climate change, even though it remains only a proposal.

The energy crisis in Texas draws comparison with rolling blackouts in California last summer and fall, which were the result of extreme weather on the opposite end of the spectrum. California’s “first rolling blackouts in nearly 20 years,” according to the Los Angeles Times, affected less than half a million homes and businesses on August 14, for between 15 minutes and 2-1/2 hours at a time, with 321,000 more customers experiencing eight-minute to 90-minute blackouts the next evening. 

Extreme heat and forest wildfires across the state caused the blackouts, and because neighboring states also suffered record high temperatures, California was not able to buy power from them.

California energy officials “didn’t line up the right sources and didn’t take climate change” causing the extreme temperatures “into account,” according to the LA Times.

As usual in politics, it comes down to following the money. Either state could proceed at considerable cost building out renewable energy sources with the hope the burgeoning industry will create new jobs, or continue to protect relatively cheap, relatively reliable fossil fuel sources and maintain that industry’s level of employment.  

It raises the issue of regulation vs. de-regulation – and even the question of what regulation is for a public utility.

Fortunately, we have a left-column pundit from Texas, and a right-column pundit from California, to sort this all out.

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•Read Stephen Macaulay’s commentary on President Biden’s supply chain review — Click on Forum above.

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Business Community Pivots from Trump

By Todd Lassa

General Motors CEO Mary Barra (pictured) has announced that by the end 2025 there will be some 20 electric vehicles available to customers in the U.S. — 40 percent of all products on offer in its showrooms — which will go a long way toward the automaker meeting strict 2026 California fuel economy standards. But Barra waited until Michigan certified its 16 Electoral College votes would go to President-elect Joe Biden, to announce the automaker would separate from President Trump’s three-year plus legal proceedings to end the state’s special waiver allowing its own emissions laws.  

The California standard eases the Obama administration’s federal 54.5-mpg average by 2025, to about 51-mpg by 2026, while the Trump administration has sought a 40-mpg standard instead. GM, Toyota Motor and Fiat Chrysler signed on with the administration. Toyota, which built a reputation for low emissions and high fuel efficiency with its Prius hybrids, had said it joined Trump’s legal efforts because it prefers a single federal standard, no matter what the level.

Historically, until now, the standard set by the California Air Resources Board (CARB) has been tougher than the federal standard. California has had a waiver from the federal government to set its own rules since the late 1960s, and 16 high-population Eastern states long ago signed on. It must be noted that the corporate average fuel efficiency (CAFE) standards, whether 40 mpg or 54.5 mpg, do not literally mean automakers must meet those numbers – there are very complicated formulas for determining each car or truck models’ average. 

But with its fleet of zero-emission EVs on the way over the next few years, GM could reasonably have joined Ford Motor Company, BMW, Volvo, Volkswagen Group (which has aggressive plans for a fleet of its own EV models) and Honda (which is partnering with GM on EV projects) when they signed on with California on its 51-mpg average. 

Legal efforts to lower the future standard undoubtedly will end with Biden’s inauguration Jan. 20, when the president-elect will add a special envoy for climate to his cabinet. Biden has chosen John Kerry, Obama’s second secretary of state, who helped negotiate the Paris Agreement on climate change (another accomplishment that Trump reversed), for the post. 

Trump often attacked Biden as beholden to the Democratic Party’s progressive wing and a commitment to Rep. Alexandria Ocasio-Cortez’s “Green New Deal.” In the second presidential debate, held in late October, Trump predicted that Biden would lose Pennsylvania’s electoral votes for his commitment to turn the United States into a net-zero producer of climate-warming pollutants by 2035, and to cut total emissions to zero by 2050. For the time being, at least, Biden appears to be carving out a middle road between climate change activists and the fossil fuel industry.

Barra’s announcement Monday coincided with the administrator of the General Services Administration, Emily W. Murphy, acknowledging nearly two weeks after the fact that former Vice President Biden had won the election, which in turn allowed the transition process to commence. It also coincided with the efforts of  “160 top American executives” who signed a letter to the Trump asking him to acknowledge Biden’s victory and begin an orderly transition, The New York Times reported Nov. 24. Some of the signatories also threatened to withhold campaign contributions to Sens. Kelly Loefler and David Purdue, two incumbent Republicans seeking re-election in a January runoff in Georgia. If they both lose, the Democrats will gain majority control of the Senate. 

It seems fairly clear that the business world has moved on from Trump and his policies.

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PHOTO CREDIT: General Motors

Can Biden Work with The Squad and Centrist Republicans?

By Todd Lassa

As moderates and traditionalists continue to wrestle the Republican Party from the hands of President Trump and his most faithful populist followers, the Democratic Party is mirroring its cross-aisle rivals with a similar struggle. President-elect Joe Biden and his transition team, though hobbled by Trump’s aversion to conceding the election, are working hard to take the middle road and avoid concessions to The Squad led by Rep. Alexandria Ocasio-Cortez, D-N.Y., as well as voters who would rather have voted for Sen. Bernie Sanders, I-Vt., as the Democratic Party’s nominee. 

Democrats this election season have been uncharacteristically low-key compared with the GOP about infighting between centrists and their respective hardline wings. Biden’s record 79-million-plus votes Nov. 3 certainly includes both an unknown number of centrist Republicans who never would have voted for Sanders, or for Sen. Elizabeth Warren (D-Mass.), for that matter, as well as young Democrats who would have preferred Sanders.

But the 2020 “Blue Wave” never happened. Biden must govern from the White House with Republicans increasing their minority in the House of Representatives by at least six seats and with Senate leadership depending on Georgia’s special January runoff elections for both of its seats. Democratic candidates must win both runoffs for a 50-50 count in the Senate, with Vice President-elect Kamala Harris to serve as the tie-breaker. Even if that long-shot happens, Biden will face a recalcitrant Sen. Mitch McConnell, R-Ky., who infamously vowed 12 years ago to make Barack Obama a one-term president and will undoubtedly lead his fellow Republican senators in key filibusters. 

Already, Capitol Hills pundits are talking about how Biden will have to rule by executive order, where he can, to reverse some of the policies that Trump is rushing to implement in his waning time as president, including efforts to begin the final process of leasing parts of Alaska’s Arctic National Wildlife Refuge to oil companies. 

The future of the fossil fuel industry and potential for alternatives to gain prominence is central to both sides, of course, including traditional pro-business Republicans and Democrats like Ocasio-Cortez, who with Sen. Ed Markey, D-Mass., unveiled the Green New Deal shortly after she took office in early 2019. 

At presstime, President-elect Biden’s cabinet picks were beginning to emerge and they are largely considered centrists. Anthony Blinken will be nominated for secretary of state according to Bloomberg, Linda Greenfield-Thomas will be tapped for United Nations ambassador and Jake Sullivan, former aide to Secretary of State Hillary Clinton, will be national security advisor. The Biden transition team already has confirmed that longtime advisor Ron Klain will be the 46th president’s chief of staff.

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