Comment Period Open for EPA’s Latest Carbon Regulation

Potentially devastating to our state. That’s how we view a new Environmental Protection Agency (EPA) regulation to strictly limit carbon emissions from the nation’s existing coal-fired power plants. This latest proposal comes on the heels of a plan to put in place greater pollution controls for any new power plants.

The President has left no doubt that he is mounting an all-out war against coal. Congress refused to bite on a climate change bill, so he’s spending his second term trying to legislate via the EPA. Smart, necessary regulations make sense, but that’s the opposite of what we have here; it’s entirely unreasonable given our nation’s energy needs.

These EPA regulations also will barely even move the needle toward reducing carbon emissions (not even by 2% according to the U.S. Chamber of Commerce’s Institute for 21st Century Energy), but they will deal a tangible blow to the national and state economies.

The Institute for 21st Century Energy predicts the regulations will result in a whopping $51 billion in annual economic losses through 2030. On top of that, some 224,000 Americans will lose their jobs and consumers will pay $289 billion more for electricity. Separately, the U.S. Department of Energy has estimated the electricity cost increase could be as much as 80%.

Most Hoosier businesses and families can’t afford to pay that, and they certainly can’t afford a slumping economy and job market.

The reality is that Indiana will be hit far harder than most states because it’s the number one per capita manufacturing state in the nation. Over 80% of Indiana’s electric power comes from coal, compared to only 45% for the country. Despite diversification efforts, coal remains Indiana’s primary energy source.

For decades, companies that have located in Indiana have often cited a reliable and affordable supply of electricity among the determining factors, according to site selectors and information gathered by state government. Losing that competitive advantage entirely is now a real possibility with coal coming under attack by the Obama administration.

We encourage you to let the EPA know your thoughts on this latest regulation by visiting www.indianachamber.com/EPA. Also, let your members of Congress know; they need to take action before irreparable damage is done to our economy.

Summer, Sharks and Spielberg

“After seeing Jaws for the first time, I was scared to even get in the bath tub.”
That’s the story a family friend has told me over the years. He’s exaggerating, of course, but there is a grain of truth in what he says. When Steven Spielberg’s Jaws hit theaters in 1975, it freaked people out.

One of my summer highlights is watching Discovery Channel’s Shark Week (I’m counting down the days until it airs in August), which got me thinking about two stories that always have fascinated me and pulled at my heartstrings. Both have a connection to Jaws.

In 1916, four people were killed and one injured after being attacked by a shark along the New Jersey shore. There have been several books written about the events, including one called Twelve Days of Terror: A Definitive Investigation of the 1916 New Jersey Shark Attacks. It’s on my summer reading list.

Two victims were killed while swimming near popular resorts. Two more died in Matawan Creek – yes, a creek! Lester Stillwell, just 11 years old, was enjoying an afternoon of fishing when he was attacked. When 24 year-old tailor Stanley Fischer rushed to his aid after hearing cries for help, he heroically lost his life. Not long after and further upstream, teenager Joseph Dunn was bitten, but survived. These events are said to have inspired Jaws.

Another story hits close to home.

One of the most powerful scenes in Jaws is a monologue by Captain Quint about the USS Indianapolis, which sank on July 30, 1945 in shark-infested waters after it was hit by Japanese torpedoes. The crew was returning from a mission in the South Pacific where they delivered components of the Hiroshima bomb.

There were 1,196 men on board. Only 317 survived. Every time I read about this horrific event, I get goose bumps. The History Channel recounts the story.

Throwback Thursday: Water on the Brain

Many involved in the Indiana environmental community are likely aware of our ongoing work on a survey of Indiana water resources in an effort to gauge future supply and demand.The Chamber actually hired Bloomington-based hydrogeologist Jack Wittman for the effort. In fact, read his recent Q & A with Indy-based NUVO magazine on the issue.

Along these lines, we recently discovered a similar report from June 1953, titled “Water Resources Report to Southern Indiana Inc.” The entire document is nearly 70 pages, but here are a few notes from the general summary:

These points are held to be fundamental guides for conducting future work:

1. Present water conditions – supplies; flood damages
2. Potential long-term supply needs
3. Potential long-term supply opportunities
4. Possible reductions of flood losses
5. General benefits to entire area which may result from improvement projects

The valley-wide approach to the water problem of Southern Indiana is all-important because surface water must be the main source of supply.

It is recognized that there now is a tremendous waste of water resources in Southern Indiana. Much water is lost in flood periods during the heavy rainfall seasons of the spring and early summer while many stream beds are almost dry in late summer and fall months. Equalization of the stream flows, therefore, is taken as the key approach to the problem…

It is impossible to propose a “blanket remedy”  for water problems in Southern Indiana. IN any year, losses from drought may be just as severe as losses from flood, or greater. Any storage of water in small watersheds is of much value to farm operations. The value of farming is on equal status with that of manufacturing and commercial activities in the support of the business system.

Electric Vehicle Charging Station Program Begins in Northwest Indiana

In an effort to encourage more use of alternative fuels in Northwest Indiana, the Northern Indiana Public Service Company (NIPSCO) has partnered with South Shore Clean Cities to launch a pilot program making electric vehicle charging stations available to more public entities.

South Shore Clean Cities is a Crown Point-based public/private organization that promotes the use of alternative fuels and technology.

Through the end of January 2015, the IN-Charge Around Town Electric Vehicle Program offers financial incentives to help defray the costs of putting in charging stations on public buildings. NIPSCO is offering up to $1 million in incentives for the program, according to a press release.

This program is the second part of NIPSCO’s recent alternative fuel push; the IN-Charge at Home Program gave an instant credit for residents to install a charging station on their property. Additionally, NIPSCO will buy an equal amount of renewable energy certificates for every unit of electricity used through the program.

“Electric vehicles are becoming an increasingly popular alternative to gasoline-powered cars,” explains Carl Lisek, executive director of South Shore Clean Cities, in a press release. “They offer fuel cost savings, produce no tailpipe emissions and help reduce reliance on imported oil.”

Charging station owners can choose to charge for using the station, but will operate free of charge for the owners.

Time is Now for Pres. Obama’s Overdue Support for Keystone XL Pipeline

The Indiana Chamber supports the construction of the Keystone XL Pipeline as a means to reduce our national dependence on unstable governments, improve our national security, strengthen ties with an important ally and promote the production of Canadian oil. Based on a recent ABC News/Washington Post Poll, most of the country agrees.

Here’s a recent summary of the Chamber’s position:

Indiana and our country are deeply dependent on foreign oil sources from countries that are typically not our friends. Canada has vast oil reserves and is presently our number one supplier of oil. It is critical that we continue to have a positive relationship with Canada by supporting their oil production and the pipeline that will carry this crude. Many Indiana companies supply various products and materials that will be used to refine this oil and move it through the pipeline.

Additionally, the Chamber agrees with Deroy Murdock’s recent column for National Review Online that President Obama needs to stop wavering and approve this project. Read the full article, but here’s an excerpt:

Five years and five months have passed since TransCanada first asked the State Department to bless KXL. Since the pipeline would cross America’s international border with Canada, it requires presidential approval, typically influenced by the State Department’s guidance. Since TransCanada filed its application on September 19, 2008, State has been very generous with its advice, offering at least five different assessments on KXL:

• On April 16, 2010, State found that KXL would have “limited adverse environmental impacts.”

• On August 26, 2011, State stated that “There would be no significant impacts to most resources along the proposed pipeline corridor.”

• On March 1, 2013, State virtually echoed its previous report when it ruled that “there would be no significant impacts to resources along the proposed Project route.”

• This past January 31, State concluded that “approval or denial of any one crude oil transport project, including the proposed project, remains unlikely to significantly impact the rate of extraction in the oil sands, or the continued demand for heavy crude oil at refineries in the U.S.”

• On February 26, State’s Office of Inspector General rejected charges that the department’s KXL review suffered ethical lapses: “OIG found that the department’s conflict of interest review was effective and that the review’s conclusions were reasonable.”

Obama’s 61-month-long navel-gaze on KXL (atop the four months that State pondered the pipeline late in G.W. Bush’s presidency) is pathetic when compared with American milestones that were achieved in less time:

• NASA needed four years, from 1979 to 1983, to build the Space Shuttle Discovery.

• As OilSandsFactCheck.org outlines in an excellent infographic, it took just two years (1941 to 1943) to build the Pentagon — the world’s largest office building, and home to 30,000 military and civilian employees.

• The Golden Gate Bridge linked San Francisco and Marin County, Calif., after just four years and four months of work over one of America’s most unforgiving waterways. Construction began on January 5, 1933. Pedestrians first crossed the bridge on May 27, 1937; cars followed the next day.

• Hoover Dam required five years of construction (1931 to 1936). It was finished two years ahead of schedule.

• It took one year, three months, and nine days to erect the Empire State Building. Between January 22, 1930, and May 1, 1931, a force of 3,439 men built what became — at 1,454 feet — Earth’s tallest skyscraper.

Obama’s endless “study” of Keystone is disgraceful. If he believes it should be built, he should approve it. TransCanada will invest $5.3 billion to build the pipeline. Taxpayer cost: $0.00. While some 10.2 million Americans officially are out of work, KXL will offer direct or indirect employment to an estimated 42,100 people.

“These jobs are really good-paying jobs,” says Union Business Manager magazine. “They provide not only a good living wage, they provide health care, and they also provide pensions.” Senate Republican leader Mitch McConnell of Kentucky calls KXL “the single largest shovel-ready project in America.”

Beyond the unemployed, all 315 million Americans would enjoy the steady flow of friendly oil from a NATO military ally. Every petrodollar exported to Canada is one less dollar shipped to overseas oil producers — such as terrorist-funding Saudi Arabia, gay-jailing Nigeria, and the Crimea-invading Russian Federation.

Chamber’s Top Legislative Priorities in 2014

Eliminating business personal property tax, allowing employers to screen prospective hires for tobacco use and establishing a work share program are among the top legislative priorities for the Indiana Chamber of Commerce in 2014.

“In many categories of commercial and industrial property tax, Indiana is among the very highest states in the country. That’s largely due to our taxing of machinery and equipment. It’s a remaining black mark on our tax climate – an area where we simply can’t compete,” declares Indiana Chamber President and CEO Kevin Brinegar.

“All of our surrounding states have done away with the tax except for Kentucky, which taxes personal property at a lower rate than Indiana. It’s past time to remove this burden that can greatly hinder business expansion and innovation.”

On the health care front, the Indiana Chamber is seeking to repeal what is termed the smokers’ bill of rights for prospective employees.

“This is an intrusion into the rights of employers in making hiring decisions. Holding smoking up to the same standards as we hold discrimination based upon race, gender, religion and ethnicity seems arbitrary and without justification,” Brinegar offers.

“There are other behaviors (such as substance abuse and having a criminal record) which are also personal choice and over which employers do have discretion in hiring decisions; this reinforces that the state’s protection for smokers is unnecessary and not well founded.”

One policy the Indiana Chamber believes would benefit employers, employees and the state is a work sharing initiative that would allow employers to maintain skilled, stable workforces during temporary economic downturns.

“Employers would be able to reduce hours without layoffs and provide unemployment compensation to partially compensate workers for their lost hours. Then when circumstances improve, employees could return to full-time work status for the company,” Brinegar explains.

“What’s more, a federal grant is available for three years to pay for the cost of the program. It’s a positive scenario for all parties.”

When it comes to K-12 education, Brinegar says the Indiana Chamber will continue to push for the absolute best academic standards for the state.

“That’s the bottom line. We need to improve student learning, meet the essential college- and career-ready requirement and have an appropriate student assessment system. Those elements all currently exist within the Common Core State Standards program, which we continue to fully support.”

Below are the Indiana Chamber’s top legislative priorities. The complete list is also available on the Indiana Chamber web site (www.indianachamber.com).

CIVIL JUSTICE
Support regulating the practice of lawsuit lending, in which a third party provides a plaintiff a cash advance loan while the legal case is pending. In turn, a plaintiff agrees to repay the advance (which is usually at a high interest rate) from the lawsuit proceeds. This practice complicates the legal process by forcing more cases to go to trial because the plaintiffs can’t afford to settle due to their repayment agreement with the lender. In turn, this causes more and more Indiana businesses to pay expensive legal fees. This lending practice is legal in most states, but regulation and transparency do not exist in Indiana.

ECONOMIC DEVELOPMENT
Support a voluntary vehicles miles travelled (VMT) pilot program as a potential replacement for existing fuel taxes. With Indiana’s already insufficient fuel tax revenues for roads/transportation trending down and more fuel efficient and electric/hybrid vehicles on the roads, a new funding mechanism for road maintenance needs to be found. Owners of alternative-fuel vehicles, including electrical vehicles, should pay for the roads they use just like other drivers. Voluntary VMT pilots in other states are currently taking place and Indiana cannot afford to ignore this potential road funding alternative.

Support expanding the patent-derived income tax exemption to the pre-patent phase. This incentive change would allow innovative, high-tech businesses that typically pay high wages to qualify during the earlier patent-pending phase of the (often long) patent application process, thus carrying forward any credit. Many emerging businesses would find this helpful in capitalizing their start-ups and expanding hiring. (Current law states you must have had a patent issued by the federal government before you can apply for the exemption.)

EDUCATION
Support maintaining high-achieving academic standards, such as the Common Core, and allowing the State Board of Education (SBOE) to determine student assessments. Indiana needs standards that improve student learning and meet the college- and career-ready requirement. The testing component of the standards can best be determined by the SBOE.
Support a framework for the future development of publicly-funded preschool initiatives for low-income families. There is critical need for improved preschool opportunities, especially for low-income children whose families may not have the means to provide a high-quality preschool experience or to provide needed learning opportunities in the home. The Indiana Chamber supports publicly-funded preschool programs that are: focused on those families in greatest need, limited to initiatives that maintain parental choice, focused on concrete learning outcomes and integrated with reforms at the elementary school level that will maintain and build upon the gains.

ENERGY/ENVIRONMENT
Support a water policy to stabilize our economic future and effectively compete with other states. A policy/plan is needed in order for the state to effectively manage its significant water resources, as well as to ensure delivery of an adequate, reliable and affordable supply of water.

HEALTH CARE
Support repealing the smokers’ bill of rights for prospective employees from the Indiana Code. The Indiana Chamber believes that all employers should have the right to choose whether or not to screen and/or hire prospective employees who use tobacco products. Since employers are footing most of the bill for health care costs for their employees, they should be able to have some discretion in determining whether new employees use tobacco products or not.

Support reinstating the wellness tax credit. The Indiana Chamber supports this incentive to start a wellness program, which can increase attendance, boost morale and productivity, as well as positively impact health care coverage costs.

LABOR RELATIONS
Support a work sharing program that will allow employers to maintain a skilled stable workforce during temporary downturns. Employers then could reduce hours without layoffs, enabling workers to keep their jobs – which hopefully could be returned to full-time status once economic circumstances improve. Also part of the equation: Unemployment compensation to partially compensate workers for their lost hours.

LOCAL GOVERNMENT    
Support common sense simplification and reforms to local government structures and practices. Creating the option for counties to have a single county commissioner and county councils with legislative and fiscal responsibilities is one that several Indiana counties desire. There should be incentives to reward local government efficiencies and performance in the delivery of services to taxpayers.

TAXATION
Support legislation to reduce the dependence on the taxation of business machinery and equipment. This tax discourages capital investment, places a disproportionate property tax burden on businesses and puts Indiana at a competitive disadvantage with surrounding states that have eliminated it or are moving to do so.

We Want Your (Our) Water

It’s water war time once again — maybe. We’ve reported in the past 18 months on a number of state battles over water resources, while all the time emphasizing the need for a comprehensive Indiana plan to ensure long-term supplies for our citizens and businesses. It’s part of our Indiana Vision 2025 blueprint.

The West and South are the locale of many such skirmishes, but the latest comes from the middle of the country. Namely, it’s the Missouri River and Kansas wanting to “divert” some of the water to irrigate crops in the western part of its state.

Some details, courtesy of the Lawrence Journal-World newspaper:

Missouri Gov. Jay Nixon has asked Kansas Gov. Sam Brownback to back off of a feasibility study of Kansas taking water from the Missouri River to divert to western Kansas.

“The Missouri River is a resource that is vital to Missouri’s way of life and our economy,” Nixon said in a letter to Brownback.

Describing the Missouri River as the “lifeblood” of numerous communities, Nixon said the river provides drinking water and is used to ship goods to markets.

“We have worked for many years, and fought many legal battles, to ensure the River is managed properly,” Nixon wrote. “Thoughtful and reasoned discussion and cooperation, rather than unilateral plans for massive diversions, must be the guiding forces in planning for the River’s use,” he urged.

Nixon’s letter to Brownback was in response to the Kansas Water Office’s plan to commission a study on a proposal to divert water from the Missouri River and transport that water through canals some 360 miles to irrigate crops in western Kansas.

The so-called Kansas Aqueduct Project has been on the shelf for decades, but has recently been re-emphasized by water officials in Kansas.

Tracy Streeter, director of the Kansas Water Office, said the idea is to divert water at high flow or flood times on the Missouri River. That would help Kansas farmers and alleviate downstream flooding on the Missouri, he said. The water office is the state’s water agency, which conducts water planning and helps make state water policy.

But Nixon said while Missourians have suffered through flooding on the Missouri River, they have also depended on the river during droughts.

 

Asian Carp Forums to be Held Around State

You've likely seen the videos of people driving boats down the Mississippi River and other systems as large fish fly into and around the boat. While it makes for amusing video, the introduction of Asian carp into the ecosystem is a concern for many.

The Indiana Catfish Conservation Assocation recently posted the following notice, and the Indiana Chamber is happy to be involved with these education forums:

The Indiana Wildlife Federation in partnership with the Little River Wetland Project, the Indiana Chamber of Commerce and the Northwest Indiana Forum, Inc. announce three educational forums to be held this fall.

The meetings will cover the progress of control efforts to keep Asian carp and other aquatic invasive species out of the Great Lakes. The forums will also provide background information in preparation for the Army Corp of Engineers report expected to publish in January, 2014, which will present alter-natives for stopping Asian carp and all aquatic invasive species transfers between the Great Lakes and the Mississippi River Basins.

All stakeholders and the public are invited to attend.

Registration is not required.

Email info@indianawildife.org or call 317-875-9453 or 800-347-3445 for more information.

November 6, 2013 – PORTAGE
3:00-4:45 pm CST
Northwest Indiana
Forum, Inc.
6100 Southport Road
Portage, IN 46368

November 14, 2013 – FORT WAYNE
6:30-8:30 pm EST
Allen Co.
Public Library
900 Library Plaza
Ft. Wayne, IN 46802

November 19, 2013 – INDIANAPOLIS
3:00-4:45 pm EST
IN Wildlife Federation
708 East Michigan St.
Indianapolis, IN 46202

Pollution Too High or are Standards Too Low?

The recent news that parts of five Indiana counties have been pushed out of attainment for ambient air quality and exceed a new U.S. Environmental Protection Agency (EPA) standard for sulfur dioxide comes as no shock.

Indeed, the U.S. EPA continues to lower the standards, making it increasingly difficult for communities to meet the new requirements.

U.S. EPA officials point to coal-fired power plants as the main contributors to the release of more sulfur dioxide than is permitted in the new standards. Sulfur dioxide is a colorless gas that contributes to acid rain that damages the environment and can worsen breathing problems.

Parts of Marion, Morgan, Daviess, Pike and Vigo counties are the ones that have now been pushed out of attainment. For a number of years, all 92 counties have met the necessary levels for ambient air quality standards. But the U.S. EPA has continued to tighten the belt on standards that measure carbon monoxide, lead, nitrogen dioxide, ozone, particulate matter and sulfur dioxide.

Hoosier regulators now have 18 months to draft a plan telling how the counties will come back into compliance within five years.

So it sounds like Indiana’s air is just dirtier than ever, right?

Nope. In fact – it’s much cleaner than it’s ever been in our lifetimes. This 2011 BizVoice® story on the state of Indiana’s environment points to significant improvement in Hoosier air, water and land quality. But that’s hardly the story everyone hears.

For the story, I spoke with Dr. William Beranek Jr., president of the Indiana Environmental Institute, a third-party forum for analysis and understanding of Indiana’s environmental protection laws, rules and policies.

This is what he told me at the time: “We have been steadily and significantly improving across this timeframe (past 20 to 30 years), by sulfur dioxides, by nitrogen dioxide, by ozone, by lead and by particulates,” he explains.

“One of the challenges we’ve had across this time is that the technical community – for better or worse – has been steadily determining that some of those parameters are actually more harmful to human health than we had thought. Therefore, while we had been steadily improving the quality of the air, the indicator of whether we have good air has been steadily tightening. We’re at a point where we’re just as far from the finish line as we were when we started.”

Another expert on the matter: Bernie Paul, president of B Paul Consulting and former air quality expert for Eli Lilly & Company, also pointed to the federal process used for evaluating and changing air quality standards – starting with the Clean Air Act of 1970. That legislation was written so that all standards are re-evaluated every five years, and that cost implications cannot be taken into consideration when creating air quality standards.

“For a public agency to have to re-evaluate technical information every five years, when it takes 10 years to execute the plans to bring the air quality level down to where they set it, that’s a broken process,” he insists.

“A 10-year or even a 20-year review cycle would make more sense, because it takes so long for all of the implementation to be executed. We really can’t have a system where you’re constantly churning the standard.”

How does this relate to you? If coal-fired power plants are pointed to as the problem with these new regulations and the only way to match the requirements is to add more emission controls (or phase out coal altogether, as some would suggest), that means your electricity rates will go up.

Organizations including the U.S. Energy Information Association (EIA) and the Natural Resources Defense Council (NRDC) provide estimates between 83% and 95% of Indiana’s electricity coming from coal-fired power plants. It affects jobs here too: the EIA ranks Indiana as eighth in coal production in the country.

These are just some things to keep in mind the next time you read a story about Indiana’s “dirty” air.

Don’t Let National Ceiling Fan Day Blow By Without Realizing its Importance

While many homes have ceiling fans, its possible homeowners don't often think about their importance. Our friends at Fanimation in Zionsville are hosting a party on August 17 to celebrate ceiling fan awareness, and have passed along some critical facts you should consider when it comes to keeping your home cool:

On August 17, 2013, Fanimation is hosting an awareness party to promote the first annual National Ceiling Fan Day to be held on September 18, 2013. The purpose of the day is to educate the American public about the benefits of ceiling fan usage. Studies published by the Environmental Protection Agency (EPA) recommend using ceiling fans to reduce or eliminate the need to use air conditioning because ceiling fans consume far less electricity. Many Fanimation ceiling fans consume 30-50 watts during operation while air conditioning systems can use upwards of 5,000 watts. If every American turned off their air conditioning for one day and utilized fans for their cooling needs, the United States would save over three trillion kilowatt hours of energy consumption…

The National Ceiling Fan Day Awareness Party is a free event held at Fanimation’s headquarters and is open to the public. Fanimation has organized fun activities for all ages. There will be live music, prizes, vintage cars and bicycles on display, free food catered by Dashboard Diner, a caricaturist and a Kids Zone with bicycle helmet fittings, energy awareness activities and face painting. Attendees are also welcome to tour Fanimation’s antique fan museum located on site. The party will be held from 11 a.m. to 2 p.m. at 10983 Bennett Pkwy Zionsville, IN 46077.

President of Fanimation, Nathan Frampton says, “Fanimation hopes to inspire the public to turn down their air conditioners and turn on their fans. They will notice immediate impacts on their electricity bills and they will also help the environment.” He adds, “We as a society have grown dependent on air conditioners, we use them in our cars and then continue relying on them at home.  America’s increased reliance on central air and the escalating cost of energy inspired Fanimation to initiate the first annual National Ceiling Fan Day on September 18, 2013.”

Also, here are some key facts to keep in mind:

  • 94 million of the 113.6 million residential homes in the United States use air conditioning equipment and 110.1 million use space heating equipment.* Studies published by the Environmental Protection Agency (EPA) recommend using ceiling fans to reduce or eliminate the need to use air conditioning because ceiling fans consume significantly less electricity.
  • If every American turned off their air conditioning for one day and utilized only ceiling, floor, desk or wall fans the U.S. would save over three trillion kilowatt hours of energy consumption!
  • Energy consumption (data published by General Electric)
    Electric furnace: 17,221 watts
    Central air: 5,000 watts
    Ceiling fan: 30 watts
  • Monthly Energy Cost (based on 15 cents/kilowatt hour)
    Electric furnace @ 5 hrs/day: $392.85
    Central air @ 5 hrs/day: $114.06
    Ceiling fan @ 24 hrs/day: $3.30

For more information on ceiling fans or if you're interested in purchasing one, contact Fanimation business development manager Teal Cracraft at teal@fanimation.com.