Monday, May 14, 2007

WRI Report On The Business Case for Community Consent

May 14: A new report released by the World Resources Institute (WRI) and endorsed by a $110 billion coalition of faith-based institutional investors concludes that multinational corporations and financial institutions that seek local community consent for their operations will have a competitive advantage over those that fail to do so. The report, Development Without Conflict: The Business Case for Community Consent, is the first to document the precise financial and operational opportunities and risks a company faces when engaging with communities affected by environmentally sensitive development projects. It provides a roadmap for implementing community consent procedures into project and investment strategies.

The report's four case studies of industrial projects in the Philippines, Argentina, Thailand and Peru demonstrate the financial opportunities of achieving community consent including project cost savings, increased access to international capital and positive reputational benefits. Companies that fail to achieve consent face a range of financial implications including project cost-overrun risks, litigation, increased scrutiny and concern from Wall Street stock analysts, and significant reputational harm.

The report has received the endorsement of the Interfaith Center on Corporate Responsibility (ICCR), a 35-year-old international coalition of 275 faith-based institutional investors, which include denominations, religious communities, pension funds, healthcare corporations, foundations and dioceses with combined portfolios worth an estimated $110 billion. Rev. David M. Schilling, program director of ICCR, said, "Companies that look to the principles laid down in the WRI report and learn from the valuable case studies will be better equipped to work with the communities in which they operate.


The central tenet of free, prior, informed consent (FPIC) is that local indigenous communities have the right to determine how projects that might affect their land or way of life are developed. The principle has been expanded by some companies and financial institutions to all communities impacted by their projects and investments. Jon Sohn, WRI senior associate and a co-author of the report said, "WRI supports companies and financial institutions that mainstream community consent-based policies into their projects and investments. Respecting local community rights makes plain sense from a business perspective and we expect trends towards this practice to increase."

WRI cites, for example, that in April 2007, religious institutional investors, led by Christian Brothers Investment Services, filed a shareholder resolution that required Newmont Mining Corporation (NEM) to produce a report addressing community-based opposition to its operations around the world. In an unprecedented move for a U.S. mining company, Newmont's board of directors supported the proposal. Newmont's shareholders overwhelmingly approved the resolution, with 91% of shares voting in favor. WRI also indicates that on May 15, 2007, the World Bank's International Finance Corporation is hosting a meeting of Equator Principle Banks, export credit agencies and other development banks to explore best risk management practices to achieve "broad community support" in projects they support.

Operationalizing FPIC is an evolving concept in development circles, yet several institutions have recently adopted strengthened consultation procedures and are considering ways to achieve "consent" based development outcomes. The report provides best practice principles to achieve that goal.

Access a release on the WRI report (
click here). Access the complete 70-page report (click here). Access an overview and links to an executive summary and related information (click here). [*All]

Friday, May 11, 2007

Economic Impacts of Global Warming On Insurance

May 3: The House Select Committee on Energy Independence and Global Warming, Chaired by Representative Ed Markey (D-MA), held a hearing entitled, Economic Impacts of Global Warming: Part 1-Insurance. The Committee heard from insurance experts on how a riskier, warming would affect their business and the costs to consider. A recent Government Accountability Office (GAO) report notes that insurers paid more than $320 billion in claims on weather-related losses from 1980 to 2005. Scientists predict that an unstable climate due to global warming will cause more severe and unpredictable weather events.

In an opening statement Chairman Markey said, "Over the last 25 years, extreme weather caused 88 percent of the $320 billion in total insured property losses. Since almost everything that is insured -- from property, to crops, to human life and health -- is susceptible to severe weather, the insurance industry is one of the most sensitive indicators of the economic repercussions of global warming. From a financial perspective, the insurance industry is our canary in the climate coal mine." Witnesses testifying at the hearing included: the Director of Natural Resources and Environment, Government Accountability Office; the Washington State Insurance Commissioner; and the President of the Reinsurance Association of America.

GAO testified that weather-related events in the United States have caused tens of billions of dollars in damages annually over the past decade. A major portion of these losses is borne by private insurers and by two Federal insurance programs -- the Federal Emergency Management Agency’s National Flood Insurance Program (NFIP), which insures properties against flooding, and the Department of Agriculture’s Federal Crop Insurance Corporation (FCIC), which insures crops against drought or other weather disasters. GAO said, "The growth in population in hazard-prone areas and resulting real estate development have generally increased liabilities for insurers, and have helped to explain the increase in losses. Due to these and other factors, federal insurers’ exposure has grown substantially. Since 1980, NFIP’s exposure nearly quadrupled to nearly $1 trillion in 2005, and program expansion increased FCIC’s exposure 26-fold to $44 billion.

GAO recommended that the Secretaries of Agriculture and Homeland Security analyze the potential long-term fiscal implications of climate change for the FCIC and the NFIP, respectively, and report their findings to the Congress. Both agencies expressed agreement with the recommendation.


Access the hearing website for links to an opening statement from Chairman Markey and the witness testimony (click here). [*Climate]

Thursday, May 10, 2007

EPA's 2007 Report on the Environment: Science Report

May 10: U.S. EPA announced in a Federal Register notice [72 FR 26629-26631] a 45-day public comment period for the draft 539-page document entitled, EPA's 2007 Report on the Environment: Science Report (ROE SR) (EPA/600/R-07/045). The public comment period is to precede the formal public, scientific peer review of the document by EPA's Science Advisory Board (SAB) on July 10-12, 2007. The public comment period begins May 10, 2007 and ends June 25, 2007.

EPA's 2007 Report on the Environment compiles the latest and most reliable indicators to help understand critical trends in the environment and human health. Additionally, the report identifies key limitations of the indicators and gaps where reliable indicators do not yet exist. The gaps and limitations highlight the disparity between the current state of knowledge and the goal of full, reliable, and insightful representation of environmental conditions and trends, and provide direction for future research and monitoring efforts. The indicators for EPA’s 2007 ROE SR, which comprise the main content of the report, underwent independent scientific peer review as well as public review and comment during the summer and fall of 2005. In addition to the EPA’s 2007 ROE SR, EPA is also producing the Highlights of Conditions and Trends document (EPA's 2007 ROE HD), which summaries the findings in an easier to understand format. The Highlights Document (HD) is undergoing a separate review under EPA's Office of Environmental Information. After the SAB and public reviews of the draft 2007 ROE SR, the comments and recommendations received from the experts and public will be considered and the resulting revisions discussed within EPA and with EPA’s Federal agency partners. EPA plans to publish the final EPA’s 2007 Report on the Environment: Science Report in late 2007.

The massive report, is written for environmental professionals and consists of five chapters: Air, Water, Land, Human Health, and Ecological Condition. The Air, Water, and Land chapters (Chapters 2, 3, and 4) focus on trends in air, water, and land media, and their effects on human health and ecological systems. The Human Health and Ecological Condition chapters (Chapters 5 and 6) follow with information on overall trends in human health and ecological systems. The latter two chapters address questions that are intrinsically affected by multiple factors across media.

For each of these five chapters, EPA identified a set of priority questions that it considers to be most important and relevant to the Agency’s mission to protect the environment and human health. The report is organized around these questions. The response to each of the questions has three components: An introduction that describes the scope of the question (see below) and provides relevant background information; A set of indicators that answer (or more often partially answer) the question; and A discussion of (1) the "answer" that the indicators collectively provide to the question; and (2) the most critical indicator gaps, limitations, and challenges that prevent the question from being fully answered.

The document concludes with Chapter 7, "Afterword," which discusses the next steps for improving indicators and summarizes the challenges to answering the questions and synthesizing and integrating information across indicators. Appendix A lists acronyms and provides a glossary of terms that have particular definitions within this document or whose definitions are not commonly available. Appendix B describes the process used to develop the 2007 ROE Science Report. Appendix C compares indicators used in the 2003 Draft ROE Technical Document with those in this 2007 version.

Access an overview and links to chapters and related information (
click here). Access the FR announcement (click here). Access the ROE website (click here). [*All]

Wednesday, May 09, 2007

UN Report Evaluates Bioenergy Trade-Offs For Decision Makers

May 8: The fast-growing bioenergy industry offers many opportunities, but also involves a number of trade-offs and risks, the United Nations said in its most comprehensive review of the likely impact of the emerging bioenergy market. The report indicates, “The economic, environmental and social impacts of bioenergy development must be assessed carefully before deciding if and how rapidly to develop the industry and what technologies, policies and investment strategies to pursue." The document, Sustainable Energy: A Framework for Decision Makers, was prepared by UN-Energy, a group of all UN agencies programs and organizations working in the area of energy. It was sponsored by the Rome-based UN Food and Agriculture Organization (FAO).

UN-Energy Chair Mats Karlsson of the World Bank said, “The purpose of the study was to help ensure that the energy needs of people are met and the local and global environment is adequately protected. We hope to use the collective strength of the UN system to affect change”.

The report points out the many benefits of bioenergy systems in relation to poverty alleviation, access to energy services, rural development and rural infrastructure. It reviewed the likely impact of bioenergy in terms of food security, climate change, biodiversity and natural resources, employment and trade. It also identified the vital points decision makers need to consider and stresses that, “Unless new policies are enacted to protect threatened lands, secure socially acceptable land use, and steer bioenergy development in a sustainable direction overall, the environmental and social damage could in some cases outweigh the benefits”. Regarding the use of some grains as a biofuel feedstock, UN-Energy noted, “In general, crops that require high fossil energy inputs (such as conventional fertilizer) and valuable (farm) land, and that have relatively low energy yields per hectare, should be avoided.” It is noted that even “sustainably"-produced energy crops could have negative impacts if they replaced primary forests, “resulting in large releases of carbon from the soil and forest biomass that negate any benefits from biofuels for decades.”


Additionally, the report indicates, that the availability of adequate food supplies could be threatened by biofuel production as land, water and other resources were diverted from food production. Similarly, food access could be compromised by higher basic food prices resulting from increased bioenergy feedstock demand, thus driving the poor and food insecure into even greater poverty.

The FAO also introduced its International Bioenergy Platform (IBEP), a 26-page document, to the international community in the energy, agriculture and environment sectors as a mechanism for organizing and facilitating a multidisciplinary and global approach. IBEP is expected to provide analysis and information for policy and decision-making support; to build and strengthen institutional capacity at all levels; to enhance access to energy services from sustainable bioenergy systems; and to facilitate opportunities for effective international exchange and collaboration.

In a related matter, the Global Bioenergy Partnership (GBEP) unveiled its website on May 9, which was launched at the GBEP’s 3rd Steering Committee meeting, taking place in New York during the 15th session of the UN Commission on Sustainable Development. The site provides information on the Partnership, which was created in May 2006 to promote the use of bioenergy and whose secretariat is hosted at FAO. It also offers links to sources of information on bioenergy and features news and a regularly updated list of bioenergy events.

Access a lengthy release on the report and links to related information (
click here). Access the complete 64-page report (click here). Access the IBEP document (click here). Access a release on the GBEP website (click here). Access the GBEP website (click here). [*Energy]

Tuesday, May 08, 2007

WRI Report On Restoring Nature's Capital

May 7: Ecosystems must be viewed as huge capital assets, affected by nearly all development and investment decisions according to a new World Resources Institute (WRI) report -- Restoring Nature's Capital: An Action Agenda to Sustain Ecosystem Services. The Millennium Ecosystem Assessment (MA), conducted in 2005 by the United Nations, including UNEP, WRI, and 1,300 Assessment participants, found the extent to which economies depend on the capital lying within nature's lands, waters, forests, and reefs. Restoring Nature's Capital presents the results of the earliest concerted thinking about how to address both the stark realities and the enormous potential uncovered by the Assessment. Restoring Nature's Capital draws on the recommendations of its 17 contributing authors from around the world.

Using the Assessment as its backdrop, Restoring Nature's Capital proposes an action agenda for business, governments, and civil society to reverse ecosystem degradation. Drawing on the recommendations of the 17 contributing authors, WRI's own series of World Resources reports, and the good work of many others, it sets out to answer the thorny question of what changes must be made to ensure that ecosystems can meet the needs of today's and future generations.


The authors contend that governance -- who makes decisions, how they are made, and with what information -- is at the heart of sustaining healthy ecosystems. With this as their fundamental tenet, the authors present an action agenda for reversing degradation of ecosystems and sustaining their capacity to provide vital services for generations to come. The action agenda identifies how decisions about development projects and investments can be made in ways that lead to healthy ecosystem services. These decisions, made by local and national governments, corporations, and international financial institutions, involve billions of dollars, affect huge swaths of land and water, and affect millions of people.

Access a WRI announcement (click here). Access an overview and links to related information (click here). Access the complete 101-page report (click here). [*All]

Monday, May 07, 2007

Nuclear Energy: Balancing Benefits And Risks

May 7: The Council on Foreign Relations (CFR) has recently released a Special Report entitled, Nuclear Energy: Balancing Benefits and Risks (April 2007). The report addresses the benefits and risks of nuclear power for the United States and other countries in light of increased concern over energy security and global climate change. As indicated in the report, the debate surrounding nuclear energy also intersects with critical U.S. foreign policy issues such as nuclear proliferation and terrorism. The Council Special Report was produced in partnership with Washington and Lee University and written by the Council’s Fellow for Science and Technology Charles D. Ferguson. CFR says the report provides the factual and analytical background to inform this debate.

According to the foreword to the report, written by CFR President Richard Haass, the report is a "sobering and authoritative lookat nuclear power. Dr. Ferguson argues that nuclear energy, despite its attributes, is unlikely to play a major role in the coming decades in strengthening energy security or in countering the harmful effects of climate change. In particular, the rapid rate of nuclear reactor expansion required to make even a modest reduction in global warming would drive up construction costs and create shortages in building materials, trained personnel, and safety controls. There are also lingering questions over nuclear waste, as well as continued political opposition to siting new plants. Nonetheless, the report points out steps the United States could take -- such as imposing a fee on greenhouse gas emissions -- to level the economic playing field for all energy sectors, which over the long run would encourage the construction of new nuclear reactors (if only to replace existing ones that will need to be retired) and help reduce global warming.


Dr. Ferguson has written a fair and balanced report that brings the nuclear energy debate down from one of preferences and ideologies to one of reality. Nuclear Energy: Balancing Benefits and Risks is useful to anyone who wants to understand both thepotential and the limits of nuclear power to enhance energy security and slow climate change."

Among the report's recommendations are: "Nuclear energy produces one-fifth of U.S. electricity and one-sixth of global electricity; thus, the United States and its partners have a vested interest in ensuring safe and secure operation of the world’s nuclear industry. But the future of domestic and international commercial nuclear energy use faces large uncertainties in financial competitiveness and in external costs such as proliferation risks of the nuclear fuel cycle, safe and secure operation of nuclear power plants, and long-term disposal of highly radioactive waste. Generating electricity from any energy source comes with external costs. Traditionally, the U.S. government and many other governments have relied on subsidies to pick winners and losers among energy sectors. But providing subsidies to mature industries such as nuclear power have hidden the external costs. Governments should strive to identify and factor in as many of the external costs as possible into the price of energy sources." The report makes major recommendations for factoring in external costs and managing the risks.


Founded in 1921, the Council on Foreign Relations is an independent, national membership organization and a nonpartisan center for scholars dedicated to producing and disseminating ideas so that individual and corporate members, as well as policymakers, journalists, students, and interested citizens in the United States and other countries, can better understand the world and the foreign policy choices facing the United States and other governments. The Council takes no institutional position on policy issues and has no affiliation with the U.S. Government.

Access the complete 51-page report (
click here). Access the CFR website for additional information (click here). [*Energy, *Haz/Nuclear]

Friday, May 04, 2007

IPCC Releases "Mitigation Of Climate Change" Report

May 4: The Intergovernmental Panel on Climate Change's (IPCC), meeting in Bangkok, Thailand released its third in a series of three documents comprising its Fourth Assessment Report "Climate Change 2007", also referred to as AR4. The Working Group III, 35-page Summary for Policymakers report entitled, Mitigation of Climate Change, provides a comprehensive synthesis of research and analysis of climate change solutions, discussing measures such as energy efficiency, improved fuel economy and increased use of renewable energy. The Working Group III report follows the release of the Physical Science Basis [February 07, See WIMS 2/2/07] and Impacts, Adaptation and Vulnerability [April 07, See WIMS 4/9/07] reports. A synthesis report, integrating the three reports will be released in November 2007.

The report focuses on mitigation of climate change through limiting or preventing greenhouse gas emissions and enhancing activities that remove them from the atmosphere. It analyzes mitigation options for the main sectors in the near-term, addressing also cross-sectorial matters such as synergies, co-benefits and trade-offs. It also provides information on long-term mitigation strategies for various concentration stabilization levels. The summary report is organized into five sections including: Greenhouse gas (GHG) emission trends; Mitigation in the short and medium term, across different economic sectors (until 2030); Mitigation in the long-term (beyond 2030); Policies, measures and instruments to mitigate climate change; and Sustainable development and climate change mitigation.

The report looks at many key mitigation technologies available now and beyond 2030 by various sectors including: energy supply; transport; buildings; industry; agriculture; forestry and waste management. The report also looks at the various policies, measures and instruments to mitigate climate change. It indicates that a wide variety of national policies and instruments are available to governments to create the incentives for mitigation action. Their applicability depends on national circumstances and an understanding of their interactions, but experience from implementation in various countries and sectors shows there are advantages and disadvantages for any given instrument.

The Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC), Yvo de Boer, issued a statement saying "the worst effects of climate change can be staved off if the appropriate international action is immediately taken." He said, "The third installment of the report presents us with an impressive array of response options to address the results of the IPCC’s first two installments published this year. With these options, we have a chance of preventing some of the most catastrophic scenarios the IPCC has forecast."


A release from the U.S. State Department indicates that, "The United States supports the consensus summary report on climate change mitigation that was reviewed and approved by over 100 countries..." Dr. Harlan Watson, U.S. Department of State Senior Climate Negotiator and Special Representative and head of the interagency U.S. delegation to the Working Group III meeting said, "The United States was an active and constructive participant in the international dialogue among experts and governments meeting in Bangkok. The result of this exchange is a summary document that will help policy makers around the world make more informed decisions in addressing the economic, energy and associated technological implications of global climate change."

Access the WG III Summary for Policymakers report (
click here). Access the webcast of the press conference (click here). Access the IPCC website for additional information including links to previous reports and advance information on the WG III report (click here). Access the statement from UNFCCC (click here). Access the State Department release (click here).[*Climate]

IPCC Releases "Mitigation Of Climate Change" Report

May 4: The Intergovernmental Panel on Climate Change's (IPCC), meeting in Bangkok, Thailand released its third in a series of three documents comprising its Fourth Assessment Report "Climate Change 2007", also referred to as AR4. The Working Group III, 35-page Summary for Policymakers report entitled, Mitigation of Climate Change, provides a comprehensive synthesis of research and analysis of climate change solutions, discussing measures such as energy efficiency, improved fuel economy and increased use of renewable energy. The Working Group III report follows the release of the Physical Science Basis [February 07, See WIMS 2/2/07] and Impacts, Adaptation and Vulnerability [April 07, See WIMS 4/9/07] reports. A synthesis report, integrating the three reports will be released in November 2007.

The report focuses on mitigation of climate change through limiting or preventing greenhouse gas emissions and enhancing activities that remove them from the atmosphere. It analyzes mitigation options for the main sectors in the near-term, addressing also cross-sectorial matters such as synergies, co-benefits and trade-offs. It also provides information on long-term mitigation strategies for various concentration stabilization levels. The summary report is organized into five sections including: Greenhouse gas (GHG) emission trends; Mitigation in the short and medium term, across different economic sectors (until 2030); Mitigation in the long-term (beyond 2030); Policies, measures and instruments to mitigate climate change; and Sustainable development and climate change mitigation.

The report looks at many key mitigation technologies available now and beyond 2030 by various sectors including: energy supply; transport; buildings; industry; agriculture; forestry and waste management. The report also looks at the various policies, measures and instruments to mitigate climate change. It indicates that a wide variety of national policies and instruments are available to governments to create the incentives for mitigation action. Their applicability depends on national circumstances and an understanding of their interactions, but experience from implementation in various countries and sectors shows there are advantages and disadvantages for any given instrument.

The Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC), Yvo de Boer, issued a statement saying "the worst effects of climate change can be staved off if the appropriate international action is immediately taken." He said, "The third installment of the report presents us with an impressive array of response options to address the results of the IPCC’s first two installments published this year. With these options, we have a chance of preventing some of the most catastrophic scenarios the IPCC has forecast."


A release from the U.S. State Department indicates that, "The United States supports the consensus summary report on climate change mitigation that was reviewed and approved by over 100 countries..." Dr. Harlan Watson, U.S. Department of State Senior Climate Negotiator and Special Representative and head of the interagency U.S. delegation to the Working Group III meeting said, "The United States was an active and constructive participant in the international dialogue among experts and governments meeting in Bangkok. The result of this exchange is a summary document that will help policy makers around the world make more informed decisions in addressing the economic, energy and associated technological implications of global climate change."

Access the WG III Summary for Policymakers report (
click here). Access the webcast of the press conference (click here). Access the IPCC website for additional information including links to previous reports and advance information on the WG III report (click here). Access the statement from UNFCCC (click here). Access the State Department release (click here).[*Climate]

Thursday, May 03, 2007

Senate Committee Approves Energy Bill

May 2: The Senate Energy and Natural Resources Committee, Chaired by Senator Jeff Bingaman (D-NM), approved bipartisan legislation designed to improve efficiency, promote renewable fuels diversity and invest in research on carbon sequestration. On a 20-3 vote, the Committee approved a Bingaman-Domenici joint mark that combines measures introduced over the past month. The legislation is now ready for consideration by the full Senate.

Bingaman said, “This legislation is a big step forward in three key areas to three key areas to America’s energy future. It will help dramatically reduce our dependence on fossil fuels by requiring the more efficient use of energy and by putting a much greater emphasis on the use of renewable, homegrown fuels. It also increases our investment in research on the capture of carbon, so we can cut back on the greenhouse gas emissions that contribute to global warming. I appreciate the help and support that Senator Domenici gave in this effort. This bill is a testament to the bipartisan strength that our Committee brings to tough issues.”

Committee Ranking Member Pete Domenici (R-NM) said, “Today, the Energy Committee came together on a bipartisan basis and passed a bill that makes significant strides in a number of areas important to our long-term energy security. In particular, this bill sets the stage for biofuels such as cellulosic ethanol to greatly expand in our fuel supply, and will also save consumers money by improving efficiency standards. I look forward to an open and vigorous debate on the floor of the Senate that will include these and other measures as we tackle our energy challenges.”

According to a release, the bipartisan legislation establishes an escalating requirement to reduce America’s gasoline consumption, beginning with a 20 percent savings target in 10 years -- equivalent to more than 32 billion gallons per year -- and enough to reduce world oil prices by more than $2.50/barrel under current Energy Information Administration assumptions. The bill places a particular focus on the development of advanced biofuels by requiring an increasing portion of renewable fuels to be from unconventional biomass feedstocks beginning in 2016.

The joint mark would also promote biofuels infrastructure development in more diverse regions of the country, so producers and consumers alike can benefit from new and better choices at the gas pump. By increasing funding for bioenergy research and development by 50 percent, it invests in the critical science programs that can propel America to the forefront of global research on bioenergy resources.

In addition, new efficiency benchmarks for appliances included in the bill -- which contribute as much as two-thirds of an average American household’s electricity costs -- would bring consumers more than $12 billion in benefits, according to an American Council for an Energy Efficient Economy analysis. These standards would save more than 50 billion kilowatt-hours per year in electricity, or enough to power 4.8 million typical American households. It would also save 17 trillion BTUs of natural gas per year, and more than 560 million gallons of water per day.

Since the Federal government itself spends more than $14 billion a year on energy costs, leading the way toward energy security can also save money for American taxpayers. Under the bill’s strengthened Federal efficiency requirements, the government alone is poised to save another 220 trillion BTUs of energy and 1.2 million metric tons of carbon dioxide. Among the other efficiency provisions of note are programs that $2.3 billion for research related to automotive batteries; authorize $60 million for DOE to research and develop light-weight materials for vehicle construction; authorize $15 million for advanced lighting technology, and reauthorize the Weatherization Assistance Program at $750 million. Finally, the bill authorizes research and development spending of up to $120 million on carbon sequestration, with the goal of furthering development of this key technology to reduce carbon emissions.

The National Association of Manufacturers (NAM) President, John Engler, issued a statement that commended the bipartisan energy package voted out of the Senate Committee, but said the draft legislation did not go far enough to address the nation’s future energy use. Engler said, "Our nation is starving for a solution to our energy crisis. Any movement toward establishing a sound domestic energy policy is welcome news, but without substantial congressional action, the nation’s manufacturers and our economy will suffer. A foundation for future energy use demands comprehensive and aggressive reforms -- both of which we hope the Senate will take up when legislation moves to the floor.”

According to a release from Sierra Club the Committee voted 12-11 to defeat an attempt to attach an amendment supporting liquid coal to the renewable fuels bill. Sierra Club said, "Liquid coal has no place in a bill about renewable fuels, or anywhere else for that matter. This amendment would have started us down the dangerous and expensive road to establishing an entirely new and massively polluting industry in this country. Liquid coal is nothing but a multibillion dollar swindle of taxpayers in order to fund an expensive boondoggle for energy interests--one that will result in massive increases in air pollution, global warming emissions, and all of the other negative environmental consequences associated with irresponsibly mined and burned coal..."

Access a release from Senator Bingaman (
click here). Access a release from NAM (click here). Access a release from Sierra Club (click here). [*Energy]

Wednesday, May 02, 2007

Supreme Court Defines Flow Control Public Sector Exception

Apr 30: The U.S. Supreme court has issued its opinion in the solid waste "flow control" case of United Haulers Assoc., Inc. v. Oneida-Herkimer Solid Waste Management Authority (Case No. 05-1345) [See WIMS 1/9/07]. The opinion, which must be characterized as a loss for the private solid waste management sector, is sure to precipitate new rounds of litigation on the highly controversial issue of local regulations which direct or control the "flow" of municipal solid waste to specifically designated facilities. The High Court has now ruled that there is a "public" versus "private" distinction when it comes to directing solid waste to designated facilities.

The Justices were divided in their opinions along non-traditional lines. Justice Roberts delivered the opinion of the Court, except as to Part II–D. Justices Souter, Ginsburg and Breyer joined that opinion in full. Justice Scalia filed an opinion concurring as to Parts I and II–A through II–C. Justice Thomas filed an opinion concurring in the judgment. Judge Alito filed a dissenting opinion, in which Justices Stevens and Kennedy joined.

For over a decade the matter local flow control ordinances has been somewhat legally settled with the 1994 U.S. Supreme Court decision issued in C & A Carbone, Inc. v. Town of Clarkstown, 511 U.S. 383, 386 (1994) which deemed local flow control regulations invalid. However, over the last several years the concept of a possible "Public Sector Exception" to the Carbone ruling has been evolving in the lower courts. In the United Haulers case which was appealed from the U.S. Court of Appeals, Second Circuit, February 16, 2006, decision (Case No. 05-2024) the Appeals Court said, "In our view, then, the local benefits of the flow control measures substantially outweigh whatever modest differential burden they may place on interstate commerce." Contrarily, the U.S. Court of Appeals, Sixth Circuit, in the case of National Solid Wastes v. Daviess County KY (Case No. 04-6498), ruled in a similar case saying that a proposed county ordinance was unconstitutional, and said, it refused to adopt what it termed, "the public-private distinction with respect to the dormant commerce clause;" as provided in the United Haulers case.

In the opening paragraph of its opinion the High Court focuses on the public versus private distinction saying, “'Flow control' ordinances require trash haulers to deliver solid waste to a particular waste processing facility. In C & A Carbone, Inc. v. Clarkstown, 511 U. S. 383 (1994), this Court struck down under the Commerce Clause a flow control ordinance that forced haulers to deliver waste to a particular private [emphasis contained in original] processing facility. In this case, we face flow control ordinances quite similar to the one invalidated in Carbone. The only salient difference is that the laws at issue here require haulers to bring waste to facilities owned and operated by a state-created public benefit corporation. We find this difference constitutionally significant."

The High Court continues to define the new exception saying, "Disposing of trash has been a traditional government activity for years, and laws that favor the government in such areas -- but treat every private business, whether in-state or out-of-state, exactly the same -- do not discriminate against interstate commerce for purposes of the Commerce Clause. Applying the Commerce Clause test reserved for regulations that do not discriminate against interstate commerce, we uphold these ordinances because any incidental burden they may have on interstate commerce does not outweigh the benefits they confer on the citizens of Oneida and Herkimer Counties."

Further explaining its decision, the Supreme Court says that in the Carbone decision the majority of Justices did not comment on the "public-private distinction." However, they say, "The parties in this case draw opposite inferences from the majority’s silence. The haulers say it proves that the majority agreed with the dissent’s characterization of the facility, but thought there was no difference under the dormant Commerce Clause between laws favoring private entities and those favoring public ones. The Counties disagree, arguing that the majority studiously avoided the issue because the facility in Carbone was private, and therefore the question whether public [emphasis included in original] facilities may be favored was not properly before the Court.

"We believe the latter interpretation of Carbone is correct. As the Second Circuit explained, “in Carbone the Justices were divided over the fact of whether the favored facility was public or private, rather than on the import of that distinction.” 261 F. 3d, at 259 (emphasis in original). The Carbone dissent offered a number of reasons why public entities should be treated differently from private ones under the dormant Commerce Clause. See 511 U. S., at 419–422 [opinion of Justice Souter]. It is hard to suppose that the Carbone majority definitively rejected these arguments without explaining why. The Carbone majority viewed Clarkstown’s flow control ordinance as 'just one more instance of local processing requirements that we long have held invalid.'” [emphasis included in original]

The Supreme Court said directly, "The flow control ordinances in this case benefit a clearly public facility, while treating all private companies exactly the same. Because the question is now squarely presented on the facts of the case before us, we decide that such flow control ordinances do not discriminate against interstate commerce for purposes of the dormant Commerce Clause... Unlike private enterprise, government is vested with the responsibility of protecting the health, safety, and welfare of its citizens... These important responsibilities set state and local government apart from a typical private business...


"Laws favoring local government, by contrast, may be directed toward any number of legitimate goals unrelated to protectionism. Here the flow control ordinances enable the Counties to pursue particular policies with respect to the handling and treatment of waste generated in the Counties, while allocating the costs of those policies on citizens and businesses according to the volume of waste they generate.

"The contrary approach of treating public and private entities the same under the dormant Commerce Clause would lead to unprecedented and unbounded interference by the courts with state and local government. The dormant Commerce Clause is not a roving license for federal courts to decide what activities are appropriate for state and local government to undertake, and what activities must be the province of private market competition..."

Access the complete Supreme Court opinion (
click here). Access the Supreme Court docket in the case (click here). Access the Second Circuit opinion (click here). Access the Sixth Circuit opinion (click here). Access various parties' briefs in the case posted on the American Bar Association website (click here). Access the WIMS-EcoBizPort Solid Waste issue website for links to additional legal issue resources (click here). [*Solid]

Tuesday, May 01, 2007

The Downside Of Wind Power -- Impacts On Birds & Bats

May 1: The House Natural Resources Committee, Subcommittee on Fisheries, Wildlife and Oceans, Chaired by non-voting, Delegate Madeleine Bordallo (D-Guam), held an oversight hearing entitled, Gone with the Wind: Impacts of Wind Turbines on Birds and Bats. Witnesses testifying at the hearing included: Representative Alan Mollohan (D-WV); Dale Hall, Director, U.S. Fish and Wildlife Service (FWS); Conservation Scientist, Bat Conservation International; Director, Birds and Pesticides, American Bird Conservancy; Partner, Meyer Glitzenstein and Crystal; and the Director of Conservation Policy, National Audubon Society.

Representative Mollohan testified that, "Wind-energy developers have targeted the mountain ridges of my state of West Virginia, and for a number of years I’ve expressed my deep concern about their projects. Among the reasons for my concern are the environmental impacts of these massive projects, including their impacts on the natural beauty of my state, and their impacts on wildlife." As an example he cited the Mountaineer project that consists of 44 turbines, each 340-feet high 50 feet higher than the tip of the Capitol) and spread out over 4,000 acres of mountain ridges.

FWS testified that while there are clear benefits to wind energy development, some facilities, particularly older facilities or those sited in areas with a high presence of birds and bats have the potential to cause deaths due to collisions, with unspecified long-term results. Dale Hall said the Service is focusing its efforts on determining ways to balance wildlife needs when wind energy facilities are sited and constructed. He discussed the publication of interim guidelines relating to siting and evaluating wind power development proposals and establishment of the Wind Turbine Guidelines Advisory Committee to provide advice and recommendations to the Secretary of the Interior on development of measures to avoid or minimize impacts from land-based facilities to wildlife and habitat.

Dr. Fry of the American Bird Conservancy testified that, "Unfortunately, to date, collaborative efforts to successfully address the impacts of wind projects on birds and wildlife have been a failure. He cited the Department of Energy's consensus-based collaborative in 1994, the National Wind Coordinating Collaborative (NWCC) and said his experience with NWCC has been that "there has been much discussion and almost no real action on the part of the wind industry to resolve bird collision issues at wind project areas." He said the wind energy industry has "rejected as either too costly or unproven techniques recommended by NWCC to reduce bird deaths... [and] Federal and state oversight for wind energy projects has been virtually nonexistent."

Attorney Eric Glitzenstein of Meyer Glitzenstein & Crystal, which provides legal representation to non-profit environmental, conservation, and animal protection organizations and President of the Wildlife Advocacy Project testified on the current legal and regulatory framework that applies to the impact of wind turbines on wildlife. He said at present, there is "no comprehensive, effective federal system for avoiding, minimizing, and mitigating the effects of wind power projects on migratory birds, bats, and other wildlife." However he said, "...it is important to stress that wind power facilities, if properly sited, constructed, and monitored, can and should be a part of the answer to the global climate change crisis."

Access the hearing website for links to all testimony and opening statements (
click here). Access the Government Accountability Office (GAO) report entitled, Wind Power: Impacts on Wildlife and Government Responsibilities for Regulating Development and Protecting Wildlife (GAO-05-906, September 2005). [*Energy, *Wildlife]

Monday, April 30, 2007

Supreme Court Denies Hearing Air Equipment Replacement Case

Apr 30: The U.S. Supreme Court has refused to hear an Administration appeal of the March 17, 2006, decision of the U.S. Court of Appeals, D.C. Circuit in State of New York v. U.S. EPA [See WIMS 3/17/06]. The case, EPA v. State of New York, et al (06-736) addressed the Equipment Replacement Provision (ERP), which amends the Routine Maintenance, Repair, and Replacement Exclusion (RMRR) from the Clean Air Act New Source Review requirements. Under the Clean Air Act, sources that undergo “any physical change” that increases emissions are required to undergo the NSR permitting process. The exclusion has historically provided that routine maintenance, repair, and replacement do not constitute changes triggering NSR. The ERP both defined and expanded that exclusion. EPA explained: "[The] rule states categorically that the replacement of components with identical or functionally equivalent components that do not exceed 20% of the replacement value of the process unit and does not change its basic design parameters is not a change and is within the RMRR exclusion."

Equipment Replacement Provision of the Routine Maintenance, Repair and Replacement Exclusion, 68 Fed. Reg. 61,248, 61,270 (Oct. 27, 2003) (Final Rule); see also 70 Fed. Reg. 33,838 (June 10, 2005)(Reconsideration). Hence, the ERP would allow sources to avoid NSR when replacing equipment under the twenty-percent cap notwithstanding a resulting increase in emissions. The court stayed the effective date of the ERP on December 24, 2003. The Appeals Court vacated the ERP saying that "it is contrary to the plain language of section 111(a)(4) of the Act."

The Appeals Court further explained that it vacated the ERP because it violated section 111(a)(4) in two respects: "First, Congress’s use of the word 'any' in defining a 'modification' means that all types of 'physical changes' are covered. Although the phrase 'physical change' is susceptible to multiple meanings, the word 'any' makes clear that activities within each of the common meanings of the phrase are subject to NSR when the activity results in an emission increase. As Congress limited the broad meaning of 'any physical change,' directing that only changes that increase emissions will trigger NSR, no other limitation (other than to avoid absurd results) can be implied. The definition of 'modification,' therefore, does not include only physical changes that are costly or major. Second, Congress defined 'modification' in terms of emission increases, but the ERP would allow equipment replacements resulting in non-de minimis emission increases to avoid NSR."

A release from Natural Resources Defense Council (NRDC) indicated that the loophole argued in the case would have allowed "more than 20,000 power plants, refineries and other industrial facilities to replace equipment with 'functionally equivalent' equipment without first undergoing the required clean air reviews. The exemption would have applied even if a facility's air pollution increased by thousands -- or tens of thousands -- of tons as a result of the new equipment."


The plaintiffs winning the case included Alabama Environmental Council, American Lung Association, Clean Air Council, Communities for a Better Environment, Delaware Nature Society, Environmental Defense, Group Against Smog and Pollution, Michigan Environmental Council, Natural Resources Defense Council (NRDC), Ohio Environmental Council, Scenic Hudson, Sierra Club, Southern Alliance for Clean Energy, and U.S. PIRG. The groups were represented by Earthjustice, the Clean Air Task Force and NRDC. A group of 15 state attorneys general, led by the State of New York, was also part of the successful lawsuit.

Access the Supreme Court denial order (click here, See page 8 of 10). Access the Supreme Court docket for case 06-736 (click here). Access the complete D.C. Circuit March 17, 2006 opinion (click here). Access a release from NRDC (click here). Access a release from Earthjustice (click here). [*Air]

Friday, April 27, 2007

Most Cap & Trade Cost Will Be Borne By Consumers

Apr 25: The Congressional Budget Office (CBO) has released a brief 8-page report entitled, Trade-Offs in Allocating Allowances for CO2 Emissions. The report explores the implications of a “cap-and-trade” program to reduce U.S. emissions of greenhouse gases (GHG), including carbon dioxide (CO2) which is currently being considered in Congress. Under a cap-and-trade program for carbon dioxide emissions, policymakers would set a limit on the total amount of CO2 that could be emitted in a given period -- the “cap”—and would issue rights, or allowances, corresponding to that level of emissions. Entities that were subject to the cap (such as coal mines, oil importers, refineries, or electric utilities, depending on the proposal) would be required to hold allowances for their CO2 emissions. After the allowances were initially distributed, entities would be free to buy and sell them -- the “trade” part of the program—and the price of allowances would adjust to reflect the cost of meeting the emission cap.

The CBO brief focuses only on CO2 emissions and examines how policymakers’ decisions about allocating the allowances would affect the total cost of the policy to the U.S. economy, as well as the distribution of that cost among households in their various roles as workers, consumers, and investors. CBO points out that the emission allowances (e.g. right to emit, say, 1 ton of CO2) would have substantial value -- perhaps totaling tens of billions or even hundreds of billions of dollars per year. Who received that value would depend on how the allowances were allocated. One option would be to have the government capture their value by selling the emission allowances, as it does for licenses to use the electromagnetic spectrum. Another possibility would be to give the allowances to energy producers or some energy users at no charge -- the approach that the U.S. government adopted in the sulfur dioxide program and that the European Union has used since 2005 in its cap-and-trade program for CO2 emissions.


CBO says that, "Regardless of how the allowances were distributed, most of the cost of meeting a cap on CO2 emissions would be borne by consumers, who would face persistently higher prices for products such as electricity and gasoline. Those
price increases would be regressive in that poorer households would bear a larger burden relative to their income than wealthier households would." In the most regressive of the strategies that CBO examined, average household income would fall by 3.0 percent for the lowest quintile and rise by 1.9 percent for the highest quintile.

Access the CBO report (
click here). [*Climate]

Thursday, April 26, 2007

No Progress On Toxic Wastes & Race

Apr 10: Environmental injustice in people-of-color communities is as much or more prevalent today than 20 years ago, according to researchers commissioned to conduct a follow-up to the 1987 landmark study, Toxic Wastes and Race in the United States. The new report, Toxic Wastes and Race at Twenty, 1987-2007: Grassroots Struggles to Dismantle Environmental Racism in the United States, shows that 20 years later, disproportionately large numbers of people of color still live in hazardous waste host communities, and that they are not equally protected by environmental laws.

Robert Bullard, director of the Environmental Justice Resource Center at Clark Atlanta University and the principal investigator for the study said, "People of color across the United States have learned the hard way that waiting for government to respond to toxic contamination can be hazardous to their health and health of their communities." The 160-page report, which was commissioned by the United Church of Christ and produced by scholars at Clark Atlanta University, the University of Michigan, the University of Montana and Dillard University, points to the dismal post-Katrina response in New Orleans as one poignant example of unequal treatment of minorities in hazardous waste emergencies. The findings also show that environmental laws don't protect communities of color any more than they did 20 years ago when the original report was commissioned.

According to a release, the report is the first national study to use a new method of data analysis that better locates people in relation to hazardous waste sites, and uses 2000 census data to show that the racial disparities are much greater than previously reported. Robin Saha, assistant professor of environmental studies at University of Montana said, "We think this study and the findings in it, as well as the case studies that show the human side to the national statistics, make a really strong case for environmental injustice to be on the policy agenda of Congress. It's clear the policies we are trying aren't working and that something else needs to be done."

The report indicates that more than nine million people are estimated to live in host neighborhoods within three kilometers of one of 413 hazardous waste facilities nationwide. Host neighborhoods are typically economically depressed, with poverty rates 1.5 times that of non-host communities. The report makes more than three dozen recommendations for action at the Congressional, state and local levels to help remedy the disparities. It also makes recommendations for nongovernmental agencies and industry.

Access a lengthy release with links to the complete report an Executive Summary and university contacts (
click here). [*All]

Wednesday, April 25, 2007

Stakeholders Recommendations On Climate Change Legislation

Apr 19: Representatives John Dingell (D-MI), Chairman of the Committee on Energy and Commerce, and Rick Boucher (D-VA), Chairman of the Subcommittee on Energy and Air Quality, made public the responses of more than 70 industry groups, non-governmental organizations and labor unions to a letter soliciting recommendations on prospective climate change legislation. Leaders from the energy industry and environmental community responded to questions focusing on the ramifications of greenhouse gas emissions and cap-and-trade policy. The responses comprise an important summary collection of interest group positions on climate change.

Dingell said, “These responses illustrate the challenge we have before us in balancing our environmental and economic needs. As we continue our effort to craft sensible policies to address the matter of rising greenhouse gas emissions, we will take into consideration the variety of concerns that have been expressed to the committee. The responsibility to solve this problem does not lie solely with one industry. Each will be asked to make an appropriate contribution to the collection box.” Dingell said the outreach effort is part of the Committee’s ongoing examination of climate change. The Committee has conducted 11 climate change hearings featuring testimony from more than 50 witnesses, including former Vice-President Al Gore.

Boucher said, "The challenge before the subcommittee is to write a mandatory greenhouse gas control measure with economy wide application that does not dislocate any economic sector. The responses we received from this diverse group of industry, environmental, and other organizations with a strong interest in climate change legislation offer beneficial insight for the subcommittee as we continue to consider the best method to accomplish this goal.”

Access a release with links to both solicited and unsolicited responses (
click here). Access additional information from the Committee on climate change (click here). [*Climate]

Tuesday, April 24, 2007

Senate Hearing On Supreme Court GHG Ruling

Apr 24: The Full Senate Environment and Pubic Works Committee, Chaired by Senator Barbara Boxer (D-CA), held a hearing on, The Implications of the Supreme Court’s Decision Regarding EPA’s Authorities with Respect to Greenhouse Gases under the Clean Air Act. On April 2, 2007, in a 5-4 decision, the U.S. Supreme Court decided the historic case about global warming (Massachusetts, et al. v. EPA, et al., No. 05-1120), and ruled that EPA has existing authority under the Federal Clean Air Act to regulate greenhouse gas (GHG) emissions from motor vehicles. EPA had previously refused to regulate such gases, arguing it lacked statutory authority [See WIMS 4/2/07].

Those testifying at the hearing included: Stephen Johnson, Administrator U.S. EPA; former EPA Administrator William Reilly, Senior Advisor, TGP Capital Founding Partner, Aqua International Partners; former EPA Administrator Carol Browner,Principal The Albright Group, LLC; former EPA General Counsel and EPW Committee Chief Counsel Ann R. Klee a Partner with Crowell and Moring; David Doniger, Policy Director, Climate Center Natural Resources Defense Council; and Peter Glaser, a Partner with Troutman Sanders, LLP who represented the Washington Legal Foundation in the Supreme Court case.


In a brief statement Senator Boxer said, "Mr. Johnson used the word ‘complex’ many times. The Supreme Court case is not complex. It is clear. EPA should grant the waiver to California and the 11 other states who have asked for it, and they should make an endangerment finding that global warming emissions are a danger and will be controlled by law.” Boxer was referring to a waiver that would allow California and eleven other states to limit global warming pollution from vehicles.

In a 19-page testimony, Administrator Johnson commented on what he called "the President’s comprehensive climate change agenda as we consider the ramifications of the Supreme Court’s decision." In commenting on the Supreme Court decision, Johnson said, "Importantly, the Court did not hold that EPA was required to regulate greenhouse gas emissions under Section 202, or any other section, of the Clean Air Act. Rather, the Court merely concluded that greenhouse gas emissions were 'air pollutants' under the Clean Air Act, and, therefore, they could be regulated under Section 202 by the EPA subject to certain determinations. . . The Court held that, on remand, EPA must decide whether or not greenhouse gas emissions from motor vehicles cause or contribute to air pollution that is reasonably anticipated to endanger public health or welfare, or to explain why scientific uncertainty is so profound that it prevents making a reasoned judgment on such an endangerment determination. Importantly, the Court’s decision explicitly left open the issue of whether EPA can consider policy considerations when writing regulations in the event EPA were to make an endangerment finding. Indeed, the Court seemed to recognize that EPA has significant latitude with regard to any such regulations."

Johnson stated further, "The Agency fully recognizes the decision as one of the most important environmental law decisions in years--accordingly, we are trying to assure that the Agency is in the best possible position to address its ramifications. However, given the complexity of the decision and the very short time that has elapsed since the Court issued the opinion, at this early date it is impossible today to understand and explain fully how the decision may have any specific impact. . . the Court left open the question of what procedure EPA is to follow on remand regarding a potential endangerment finding [i.e. whether GHGs emitted by new motor vehicles may reasonably be anticipated to endanger public health or welfare]. Any such process should be public and transparent and based on the best available science. Additionally, there are various procedural options to consider, including whether we should reopen the public comment period on the petition; whether we should hold a public hearing or hearings; and whether we should, or, are required to, use rulemaking procedures to decide the petition."

EPA's former General Council testified, ". . .the decision has changed the regulatory landscape. The determination that greenhouse gases are air pollutants will likely lead EPA to regulate greenhouse gas emissions, and carbon dioxide (CO2) in particular, from new motor vehicles. It also likely will lead to regulation of stationary sources of greenhouse gases since the Clean Air Act’s stationary source provisions are also triggered by an 'endangerment' finding. In this respect, the decision is a significant one -- an endangerment finding under one program will make it very difficult for EPA not to regulate under other programs.


"The decision will not, however, have any meaningful impact in terms of addressing global climate change. Forcing the square peg of greenhouse gas emissions through the round holes of EPA’s existing regulatory tools – tailpipe standards, national ambient air quality standards, new source performance standards, etc. -- may have the effect of reducing U.S. emissions over time, but it will do nothing to reduce atmospheric concentrations of greenhouse gases, which is the true measure of effectiveness of regulation for climate change purposes. Unless our trading partners, China and India in particular, are also part of the effort to reduce global emissions of greenhouse gases, piece-meal regulation in the United States will not only achieve little; it may, in fact, have the unintended effect of leading to increased emissions by encouraging the relocation of U.S. businesses to countries not subject to greenhouse gas regulation."

Access the hearing website for links to all testimony and an archive webcast (
click here). Access a statement from Senator Boxer (click here). [*Air, *Climate]

Monday, April 23, 2007

U.S. v. Atlantic Research Corp. Oral Arguments

Apr 23: The U.S. Supreme Court heard oral arguments in the case of U.S. v. Atlantic Research Corp. (Docket: 06-0562). The case is being appealed from the Eighth Circuit Court of Appeals decision of August 11, 2006 [See WIMS 8/14/06]. The primary questions presented in the case is: "Whether a party that is potentially responsible for the cost of cleaning up property contaminated by hazardous substances under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), but that does not satisfy the requirements for bringing an action for contribution under Section 113(f) of CERCLA, 42 U.S.C. 9613(f), may bring an action against another potentially responsible party under Section 107(a), 42 U.S.C. 9607(a)?"

The arguments included appearances from Thomas Hungar, Deputy Solicitor General for petitioner United States; Thomas Armstrong of Von Briesen & Roper for respondent Atlantic Research; and Jay Geck, the Deputy Solicitor General of Washington State, an amicus party supporting respondent Atlantic Research. An extensive list of amicus parties are referenced in the contacts below. A group of 40 states, Ford Motor Company, General Motors, Natural Resources Defense Council, former EPA officials and others are supporting respondent Atlantic Research. (See link to the complete transcript below).

In the Eighth Circuit opinion, which the Solicitor General says is incorrect, the Appeals Court said, "We agree with our sister Circuit [referring to the Second Circuit decision in Consolidated Edison Co. v. UGI Utilities, Inc., 423 F.3d 90, 100 (2d Cir. 2005], and hold that it no longer makes sense to view § 113 as a liable party’s exclusive remedy. This distinction may have made sense for parties such as Dico, which was allowed to seek contribution under § 113. But here, Atlantic is foreclosed from using § 113. This path is barred because Atlantic – like Aviall – commenced suit before, rather than 'during or following,' a CERCLA enforcement action. Atlantic has opted to rely upon § 107 to try to recover its cleanup costs exceeding its own equitable share. We conclude it may do so."


In its brief, the U.S. Solicitor General indicated, "This case presents the principal question left open by this Court two Terms ago in Cooper Industries, Inc. v. Aviall Services, Inc., 543 U.S. 157 (2004): Whether a party that is potentially responsible for the cleanup of property contaminated by hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), 42 U.S.C. 9601 et seq., but is not eligible to bring an action for contribution under Section 113(f) of CERCLA, 42 U.S.C. 9613(f), may nevertheless bring an action against another potentially responsible party under Section 107(a), 42 U.S.C. 9607(a). In this case, the Eighth Circuit, consistent with an earlier decision of the Second Circuit but in conflict with a later decision of the Third Circuit, held that a potentially responsible party could pursue such an action under Section 107(a).

Access the complete transcript of the oral arguments (
click here). Access a Medill News Service summary of the action (click here). Access the U.S. Supreme Court Docket listing all amici curiae parties for the case (click here). Access the Eight Circuit opinion (click here). Access the SCOTUS Blog preview of the argument (click here). Access links to various media coverage of the argument (click here). [*Remed]

Monday, April 09, 2007

IPCC Releases Impacts, Adaptation and Vulnerability Report

Note: WIMS is on Spring publication break for the next 2-weeks.
We will resume regular publication on Monday, April 24, 2007

Apr 6: At the 8th Session of Working Group II (WGII) of the Intergovernmental Panel on Climate Change (IPCC) meeting in Brussels, the group released its 4th assessment report, Climate Change 2007: Impacts, Adaptation and Vulnerability. The report assesses the latest scientific, environmental and socio-economic literature on "Impacts, Adaptation and Vulnerability." It provides a comprehensive analysis of how climate change is affecting natural and human systems, what the impacts will be in the future and how far adaptation and mitigation can reduce these impacts. The report also contains chapters on specific systems, sectors and regions. The government delegates from more than one hundred countries, together with the WGII Lead Authors, worked through the night to approve its Summary for Policymakers.

The release of the report follows the February 2, 2007, Working Group I report, Climate Change 2007: The Physical Science Basis, that assessed the current scientific knowledge of the natural and human drivers of climate change, observed changes in climate, the ability of science to attribute changes to different causes, and projections for future climate change [See
WIMS 2/2/07]. The Working Group III report on Mitigation of Climate Change, is scheduled to be released on May 4, in Bangkok, Thailand.

In general, the Working Group reports are in two parts -- an underlying technical report, which is a very large, thousand-page or greater document, that is written by scientists around the world and which reflects a compilation, a summary of the existing literature on the topic of the report. And then a second piece, which is a much shorter document, called the Summary for Policymakers which are about 20-25 pages.

The WGII report is organized into five major sections including: A – Introduction; B – Current knowledge about observed impacts of climate change on the natural and human environment; C – Current knowledge about future impacts; D – Current knowledge about responding to climate change; and E – Systematic observing and research needs.

A United Nations release described the report saying, it indicates that warmer global temperatures are causing profound changes in many of the earth's natural systems. Approximately 20-30 per cent of plant and animal species assessed so far are likely to be at increased risk of extinction if increases in global average temperature exceed 1.5-2.5 degrees centigrade. According to IPCC forecasts, the earth is likely to warm by 3 degrees centigrade during this century, a temperature that would have largely negative consequences for biodiversity and ecosystem goods and services, such as water and food supply.

As a result of warmer temperatures, springtime events are occurring earlier, such as increased run-off and peak discharge in many glacier- and snow-fed rivers; "greening" of vegetation; and migration and egg-laying by birds. More animal and plant species have also been observed shifting toward higher latitudes. The report found that while some efforts are underway to adapt to climate change, they are, by and large, insufficient in dealing with the scope of the potential problems.

The new report indicates that changes are affecting regions differently, and in the coming years, the impacts of climate change will be even more dramatic. The IPCC forecasts that by mid-century, the annual average river runoff and water availability will increase by 10-40 per cent at high latitudes and in some wet tropical areas, while decreasing by 10-30 percent in some dry regions at mid-latitudes and in the dry tropics. The number of drought-affected areas is expected to increase, and regions that currently rely on glacier-fed rivers for their drinking water, presently providing water to about one-sixth of the world's population, will likely see reduced availability.


Dr. Sharon Hays, White House Office of Science and Technology Policy and Jim Connaughton, Chairman, White House Council on Environmental Quality held a press briefing and the briefing was released by the U.S. Department of State. Dr. Hays described the report to policymakers highlighting the following:

(1) A section of the report deals with actual observations -- actual observations in terms of climate change impacts. The summary indicates that climate change is having impacts on natural systems - so plants, animals, ecosystems, and human systems - and the example of a human system would be agriculture for example - and that scientists are able to measure and monitor these impacts that are occurring in different places around the world.


(2) A second part of the report deals with projections -- projections of the range of different impacts that scientists believe may happen in the future. These projected impacts are expected to get more pronounced at higher temperatures. Hays said not all projected impacts are negative; and for higher potential future temperatures, the range of projected impacts becomes increasingly negative and there are significant impacts that are possible.

(3) Another key message is that climate change is clearly a global challenge and requires global solutions. But most impacts of climate change will be felt very regionally. Some parts of the world are more vulnerable than others - for example, Africa, small islands, the Polar Regions and so forth. The report contains a review of discussion about going forward, what happens and the key role of adaptation. Societies are going to need to and, indeed, are able to lessen the impacts of climate change through adaptation. Not all regions of the world have the same capacity to adapt.


United Nations Secretary-General Ban Ki-moon, who said called climate change is one of his top priorities, hailed the new report and urged nations to make decisive efforts to alleviate the worst consequences brought on by global warming. He called on States which are party to the UN Framework Convention on Climate Change (UNFCCC) to act quickly to create a plan to tackle future needs in time to replace the Kyoto Protocol -- the agreement requiring 35 industrialized countries and the European Community to reduce greenhouse gas emissions which is set to expire in 2012. He voiced hope that countries will take steps towards creating a new environmental framework at the UN Climate Change Conference to be held in Bali, Indonesia, in December 3-14 (COP 13 and COP/MOP 3).

The UN’s top climate change official pointed to the potential danger of climate change triggering conflicts over water, the spread of diseases and an increase in world-wide migration unless adequate adaptation measures are developed and integrated into long-term development planning. The Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC), Yvo de Boer said, “These projected impacts tell us that we urgently need to launch an agreement on future international action to combat climate change, as well as look for effective ways to generate the funds needed for adaptation. Our current sources of funding are insufficient to cover these adaptation needs. So the international community needs to investigate new and innovative sources of finance, not least through the carbon market, in order to ensure that the most vulnerable communities are able to
cope. In many cases this financing, while addressing adaptation to climate change, will contribute to the economic and sustainable development of the communities."


U.S. Senator Barbara Boxer (D-CA), Chair of the Environment and Pubic Works Committee issued a release and said, “Here in the United States, some of these impacts are already happening, and the report makes clear they will only worsen over time. Our water supplies, particularly in the Western States, are threatened by reduced snowpack. Our forests are at increased risk from pests and fire. And the health effects of severe global warming will be most dangerous to our elderly and children... Our next step will be to call the EPA before the committee, since it is clear the EPA has the authority to regulate greenhouse gas emissions, and the agency has thus far failed to do so..." [Sen. Boxer was referring to the April 2, Supreme Court decision in Massachusetts, et al. v. EPA, (See WIMS 4/2/07)]

House Science & Technology Committee Chair, Bart Gordon (D-TN) said, "For the first time, the world’s top scientists are able to confidently attribute changes in a wide variety of ecosystems in all parts of the world to human-induced global warming. This report, a tremendous scientific achievement, delivers a powerful and sobering message about the current state of our climate system... The Working Group II report discusses impacts over a range of temperature changes in five categories: water and food availability, coastal zones, natural ecosystems and human health. Most of these impacts are negative." Gordon said his Committee would hold a hearing on the report on April 17.

Access an advance release on the IPCC Working Group II report (click here). Access the webcast of the news conference releasing the WGII report (click here). Access the 23-page WGII Summary for Policymakers (click here). Access the IPCC website for additional information (click here). Access a release from the UN Secretary (click here). Access a release from the UNFCCC (click here). Access a release of the press briefing by the U.S. State Department (click here). Access a detailed and lengthy summary of the complete WGII meeting including discussion of language changes in the final summary report from The International Institute for Sustainable Development Earth Negotiations Bulletin (click here). Access the IPCC website for additional information (click here). Access a release from Senator Boxer (click here). Access a release from Representative Gordon (click here). Access links to various media coverage of the report release (click here). [*Climate]

Thursday, April 05, 2007

Fiduciary Guide To Toxic Chemical Risk

Apr 4: According to a release from the Investor Environmental Health Network (IEHN), in the wake of costly litigation, product sales bans, and reputational damage arising from asbestos, toxic materials in cosmetics and toys, and Teflon-related chemicals, U.S. investors are becoming increasingly wary of toxic chemical risks -- in products, in supply chains, and in their own portfolios. The number of companies facing resolutions dealing with toxic product risks jumped from three in 2004-2005 to 17 in 2006-2007, including 13 resolutions introduced for the ‘07 proxy season at such leading U.S. corporations as Apple, CVS, Dow, DuPont, Sears, and ServiceMaster.

In response, IEHN, which represents 20 investment organizations with $22 billion in assets under management, released the 52-page, Fiduciary Guide to Toxic Chemical Risk. The guide for institutional investors examines the financial dimensions of toxic chemical risk, including how to quantify such risk, the theory behind the danger posed by toxic chemicals to the wealth of shareholders, and a comprehensive set of action steps that can be taken by investors to translate the long-term threats and opportunities associated with toxic chemical issues into prudent portfolio stewardship.

The report is authored by Jane Ambachtsheer, Mercer Investment Consulting, Jonas Kron, Attorney at Law, Richard Liroff, Investor Environmental Health Network, Tim Little, Rose Foundation for Communities and the Environment, and Rachel Massey, Global Development and Environment Institute.

The IEHN primer for institutional investors concludes, “Researchers are increasingly detecting scores of these substances in human blood, breast milk, and amniotic fluid, and scientists are increasingly recognizing the particular vulnerability of fetuses and young children to them. These and related findings are contributing to rising awareness that the strategic choices businesses make about managing toxic chemicals in their products can have major financial consequences. As DuPont has been discovering with PFOA, a chemical used to produce Teflon and stain and grease repellants, consumers and industrial customers may abandon product lines over toxicity concerns. At the same time, liability litigation and government enforcement actions may further undermine bottom lines and reputations.”

IEHN is a collaboration of investment managers encouraging companies to adopt "safer chemicals" policies for cosmetics and other products. Members of the network are concerned that companies will be locked out of markets and suffer financial and reputational damage, if they don't systematically identify and eliminate hazardous chemicals in their products.


Access a release from IEHN (click here). Access the complete report (click here). Access the IEHN website for additional information (click here). [*Toxics]

Wednesday, April 04, 2007

House Investigates Honey Bee Colony Declines

Mar 29: Congressman Dennis Cardoza (D-CA), Chairman of the House Agriculture Committee’s Subcommittee on Horticulture and Organic Agriculture, held a hearing to investigate colony collapse disorder in honey bee colonies across the United States. The so-called Colony Collapse Disorder (CCD) is characterized by the sudden die-off of honey bee colonies. The cause of CCD has not been determined, and the Subcommittee heard about the situation and its impact on agriculture from scientists and bee keepers, as well as a farmer who relies on bees to pollinate his crops.

Cardoza said, “I am deeply committed to raising awareness of CCD and its impact on American agriculture. Farmers and beekeepers across the country are dependent on honey bees for their livelihoods. It is imperative that we move swiftly to get to the bottom of this, before the problem becomes even more serious. The insight and perspectives we heard in today’s hearing will be very useful as we consider the next steps in addressing this threat to honey bees, and to the livelihoods of commercial beekeepers and crop producers.”

Subcommittee Ranking Member Randy Neugebauer (R-TX) said, “Honey bee pollination is vital to flowers and many fruit, vegetable, nut and forage crops, as well as forages and flowers. In addition, pollination from honey bees increases yield and food quality and creates billions of dollars of crop value for farmers. Agriculture has a strong interest in maintaining a sound supply of pollinators, and I encourage researchers to work closely with producers to find a solution to the current colony collapse."

A March 27, Congressional Research Services (CRS) report on the subject examines the recent sharp decline in U.S. honey bee colonies or CCD. The phenomenon first became apparent among commercial migratory beekeepers along the East Coast during the last few months of 2006, and has since been reported nationwide. Honey bees are the most economically valuable pollinators of agricultural crops worldwide. Many scientists at universities and the U.S. Department of Agriculture (USDA) frequently assert that bee pollination is involved in about one-third of the U.S. diet, and contributes to the production of a wide range of fruits, vegetables, tree nuts, forage crops, some field crops, and other specialty crops. The monetary value of honey bees as commercial pollinators in the United States is estimated at about $15 billion annually.

CRS indicates that honey bee colony losses are not uncommon. However, current losses seem to differ from past situations in that: colony losses are occurring mostly because bees are failing to return to the hive (which is largely uncharacteristic of bee behavior); bee colony losses have been rapid; colony losses are occurring in large numbers; and, the reason why these losses are occurring remains still largely unknown.

At the Subcommittee hearing it was indicated that a unique aspect of CCD is that there is a significant delay in robbing of the dead colony by bees from other colonies or invasion by pest insects such as waxworm moths or small hive beetles; this suggests the presence of a deterrent chemical or toxin in the hive. It was indicated that researchers have found have found species like Aspergillus and Mucor among the fungi in CCD colonies. These fungi were previously reported to be bee pathogens in the 1930’s and are associated with toxin production; however, since that time, the fungi have been rarely of concern in bee colonies.

The CRS report indicates that another possible causes of CCD being examined, one that has become the subject of debate is whether certain chemicals or combinations of chemicals could be contributing to CCD, including some pesticides and possibly some fungicides. One class of insecticide being studied are neonicotinoids, which contain the active ingredient imidacloprid, and similar other chemicals, such as clothianidin and thiamethoxam. Honey bees are thought possibly to be affected by such chemicals, which are known to work their way through the plant up into the flowers and leave residues in the nectar and pollen.

Access a release from Representative Cardoza (click here). Access a listing of witnesses and links to testimony (click here, See March 29). Access the CRS report (click here). [*Wildlife]