Articles by Adam Stein

The financial meltdown and other considerations for clean energy development

Tom asked earlier what the "anarchic" disintegration of Lehman Brother’s carbon trading desk — taking place within the broader disintegration of the entire company — means in the bigger picture. And the answer, most likely, is pretty much nothing. This is true for a variety of reasons, not least among them that Lehman Brothers was […]

As energy costs rise, supply chains go local

Two articles you should read if you’re interested in eating local, growing local, building local, buying local, or any of the other ways that geography, economy, and environment intersect: The first is an article from a few weeks ago, detailing the destruction of the domestic catfish industry due to rising prices for oil, corn, soybeans, […]

Los Angeles utility starts to squawk as it stares down a $700 million carbon bill

Regulators have won praise for speed and thoughtfulness with which they have laid the groundwork for implementation of A.B. 32, the landmark bill that aims to bring California's greenhouse gas emissions down to 1990 levels by 2020. But even within a single state, climate change legislation creates winners and losers, and regional tensions are starting to show.

California's climate plan consists of a slew of new efficiency standards, regulations, and reduction measures -- as well as a cap-and-trade system to place a lid on total emissions. It's the cap-and-trade system that is part of the present pushback.

At issue in particular are the long-term contracts that the Los Angeles Department of Water and Power (DWP) has entered into for coal-based electricity. Although coal has kept L.A.'s electricity some of the cheapest in the state, the utility will have to pay enormous sums for carbon allowances under the new law.

It's always instructive to unpack some of the distortions that surround the politics of climate change legislation. Officials from L.A. seem to be trying out three different angles in their resistance to the bill. The first is that the steep cost of the allowances will divert money away from energy efficiency and renewable energy programs.

Gas tax revenue falling, feds seek to raid mass transit budget to pay for highways

From The New York Times:

Gasoline tax revenue is falling so fast that the federal government may not be able to meet its commitments to states for road projects already under way, the secretary of transportation said Monday.

The secretary, Mary E. Peters, said the short-term solution would be for the Highway Trust Fund's highway account to borrow money from the fund's mass transit account, a step that would balance the accounts as highway travel declines and use of mass transit increases. Both trends are being driven by the high price of gasoline and diesel fuel.

Got that? High gas prices are shifting people from cars into mass transit. The only appropriate response, clearly, is to rob the mass transit accounts to pay for highway projects.