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STP US vs Foreign OwnershipU.S. Nuclear power plants and foreign control

In September 2012, the Nuclear Regulatory Commission denied an operating license to Unistar Nuclear Energy for its planned third reactor at Calvert Cliffs in Maryland because it is fully owned by France’s Électricité de France (EDF)-a foreign entity. Federal law prohibits a foreign entity from completely owning or controlling a U.S. nuclear plant. The company was given 60 days to find a U.S. partner, which it has been unable to do in the past two years, and if it fails to do so the license application will be fully terminated.

Federal law is clear that foreign controlled corporations are not eligible to apply for a license to build and operate nuclear power plants. The evidence is that Toshiba is in control of the project and this precludes obtaining an NRC license for South Texas Project 3 & 4.

While foreign investment in U.S nuclear projects is not prohibited; Toshiba is paying all the bills for the proposed STP 3 & 4 project. This makes it difficult to accept that Toshiba doesn’t control the project.

Toshiba North America Engineering, or TANE, has assumed exclusive, principal funding authority for the project, but they are a wholly owned subsidiary of Toshiba America, Inc, a Japanese corporation. Public Citizen contends that this makes them ineligible for licensing.

How did foreign ownership become a problem? New Jersey based NRG announced on April 19, 2011 that it would write down its investment in the development of South Texas Project units 3 & 4. Engineering work and pre-construction activities were halted, and NRG stated that Toshiba North America Engineering – TANE – would be responsible for funding ongoing costs to continue the licensing process.

The upcoming hearing will deal, in part with the issue of STP’s foreign control.

The Atomic Safety and Licensing Board (ASLB) has rescheduled to Jan. 6, 2014, a hearing in Houston involving an application to build two new reactors at the South Texas Project site near Bay City, Texas. The ASLB is the independent body within the Nuclear Regulatory Commission that conducts adjudicatory hearings and renders decisions on legal challenges to licensing actions.

The hearing will start at 9:00 a.m. CST on Monday, January 6, in Room 425 of the Fourteenth Court of Appeals, 301 Fannin St. in Houston. The hearing will continue on January 7 until noon, if necessary. Members of the public and media are welcome to observe the evidentiary hearing, but participation in the hearing will be limited to the parties and their lawyers and witnesses. Those planning to attend the evidentiary hearing should arrive at least 15 minutes early to allow time for security screening, including searches of hand-carried items such as briefcases or backpacks. No signs will be permitted in the courtroom.

The hearing involves Nuclear Innovation North America’s application to build two Advanced Boiling-Water Reactors at the South Texas Project site. The hearing will examine whether the applicant’s planned corporate governing structure and financing comply with the NRC’s rules prohibiting foreign ownership, control and domination.

The board continues to accept written comments from interested members of the public, known as limited appearance statements. These statements are not testimony or evidence, but they may aid the board and/or the parties in considering the issues in the hearing. Statements may be submitted via mail to:, Office of the Secretary Rulemaking and Adjudications Staff, U.S. Nuclear Regulatory Commission, Washington, D.C. 20555-0001; via fax to (301) 415-1101 or via e-mail to hearingdocket@nrc.gov. Copies of the statements should also be submitted to: Administrative Judge Michael M. Gibson, Atomic Safety and Licensing Board Panel, Mail Stop T-3F23, U.S. Nuclear Regulatory Commission, Washington, D.C. 20555-0001; via fax to (301) 415-5599, or via email to carter.thurman@nrc.gov and michael.gibson@nrc.gov.

Documents related to the South Texas Project application are available on the NRC website. Documents regarding this board’s proceeding are available on the NRC’s Electronic Hearing Docket by clicking on the folder entitled “South_Texas_52-012&013-COL” on the left side of the page. More information about the role of the ASLB in the licensing process is available on the NRC website.

UPDATE:  If you didn’t catch the CBS national news report on Tuesday, November 12th on the problems with the Southern Segment of Keystone XL, click here.

Public Citizen Calls for Congressional Oversight Hearings and Delay in Startup 

As the Obama administration considers whether to approve the Keystone XL pipeline’s northern segment, owner TransCanada faces serious questions concerning construction and pipeline integrity issues on the Texas portion of the pipeline that throw its safety into question, Public Citizen said today.

In light of the problems – documented in Public Citizen’s newly released report, “TransCanada’s Keystone XL Southern Segment: Construction Problems Raise Questions About the Integrity of the Pipeline” – citizens and elected officials should call for a delay in startup until an investigation into its safety is completed.

The report documents construction problems and apparent engineering code violations along the Texas portion of the southern segment of the pipeline. The full southern segment, scheduled to be filled with oil by the end of 2013, will run from Cushing, Okla., to refineries on the Gulf Coast of Texas. It traverses 631 streams and rivers in Texas alone (see http://texaspipelinewatch.files.wordpress.com/2013/09/watersheds.pdf).

The apparent problems documented in the report include pipe being installed as part of new construction that had excessive bending or sagging, and peeling patches of field coating applied to cover damage on pipe about to be placed into the ground.

The report also notes more than 125 excavations in 250 miles of possible “anomalies” on pipe that had been buried for months. Those anomalies included dents, sags and other problems that could lead to spills or leakage of toxic tar sands crude.

“The government should investigate, and shouldn’t let crude flow until that is done,” said Tom “Smitty” Smith, director of Public Citizen’s Texas office. “Given the stakes – the potential for a catastrophic spill of hazardous crude along a pipeline that traverses hundreds of streams and rivers and comes within a few miles of some towns and cities – it would be irresponsible to allow the pipeline to start operating.”

Public Citizen also urges President Barack Obama and Secretary of State John Kerry, when deciding on the northern leg of Keystone XL, to consider TransCanada’s record of construction problems and code violations, and the pipeline’s potential impact on the sensitive areas of the Ogallala aquifer, which provides drinking water for millions of people, and the Sand Hills region of Nebraska, which the pipeline route crosses.

The report, available at http://www.citizen.org/documents/Keystone report – November 2013.pdf, encapsulates information gathered by Public Citizen, whose consultant traveled the area from May through June. Public Citizen collaborated with former TransCanada engineer and whistleblower Evan Vokes, who worked for TransCanada from 2007 to 2012 in the division responsible for construction standards.

For the report, landowners were interviewed, excavation sites were observed, video was reviewed and hundreds of photos of damaged pipe and work sites were examined. Observers also flew over the pipeline route several times.

In some areas, observers noticed stakes marked with “anomalies,” placed by TransCanada, with companion stakes marked “welds” and “dents.” One landowner reported that TransCanada contractors said as many as 70 anomalies were found in a 60-mile stretch between the Sulphur and the Sabine rivers in Texas.

TransCanada has claimed that the excavation and replacement of new pipe demonstrates its commitment to implement 57 special conditions of quality assurance and to build a “state-of-the-art” pipeline.However, TransCanada has had a history of problems with pipeline construction and safety for two decades:

  • During the construction of Keystone I, TransCanada pledged to meet 50 special conditions. But more than 47 anomalies along the line in four states had to be retested, and the Keystone I line spilled 12 times in the first year of operation.
  • In July 2011, TransCanada’s Bison natural gas pipeline exploded within the first six months of operation, blowing out an approximate 40-foot section of pipe. TransCanada had been warned of potential quality problems with construction and inspection.
  • In the 1990s, Iroquois Pipeline Operations, a subsidiary of TransCanada Pipelines Ltd., and four senior executives pleaded guilty to knowingly violating environmental and safety provisions of the pipeline construction permit. Iroquois executives had promised a pipeline of exceptional safety.

Public Citizen is calling on the Pipeline and ­­Hazardous Material Safety Administration (PHMSA) to review TransCanada’s construction quality assurance records, determine whether state and federal laws have been violated, and not permit the start of operations on the southern leg of the Keystone XL until the entire line has been hydrostatically retested – a sophisticated process that sends water through a pipeline at a specified level of pressure higher than the maximum operating pressure to test the integrity and strength of a pipeline. The southern segment also should be tested by an inline caliper device called a smart pig to look for integrity problems.

Public Citizen also calls on Congress to hold oversight hearings to ensure that PHMSA investigates and addresses the safety of the pipeline.

“TransCanada’s history with pipeline problems speaks for itself,” Smith said. “I fear we could be looking at another pipeline whose integrity may be in question.”

Citizens can:

  • Call upon Congress to hold oversight hearings to assure that the pipeline is retested and its safety is ensured;
  • Attend one of seven upcoming citizen hearings on the safety of the pipeline in East Texas (see http://texaspipelinewatch.org/calendar/ for schedule and addresses);
  • Meet with local first responders and ask county governments to develop tar-sands-spill- emergency response plan; and
  • Ask legislators to reform Texas common carrier laws pipeline and pipeline safety standards.

 

For  video of pipeline issues, see http://nacstop.org/EastTexasObserver.html.

June 16, 2013 tape

  • sagging, 4.38-4.59 minutes;
  • coating problem, 5.25-6.12 minutes;
  • anomaly mark, 6.24-7.10 minutes.

See May 31, 2013 tape

  • sagging, 26-31 seconds;
  • water, 4.59 minute
  • unsupported pipe, 4.29-6.20 minutes

warning pipelineCitizens in East Texas are becoming alarmed as representatives from ExxonMobil, operator of the Pegasus pipeline, show up to post yellow and black-striped warning markers along the pipeline route running across their land, the same one that ruptured about 320 miles northeast of there in March, spewing at least 210,000 gallons of heavy Canadian crude into neighborhood streets in Mayflower, Ark.  Click here to read the article by the Texas Tribune that documents how normally conservative landowners are turning into activists in defense of their land and their homes.

In response to the disaster in West, Texas, a listening session on chemical safety was held in Texas City with several federal agencies in attendance.  The goal of the listening session was to hear the public and stakeholders’ ideas on how the government should proceed in ensuring the safety of facilities that house dangerous chemicals.  Several groups from Texas were in attendance, including Public Citizen, Air Alliance Houston, TEJAS, labor organizations, local emergency planning committee (LEPC) members, and others.  Concerns were raised about the lack of funding to LEPCs and how the federal government could effectively implement rules on chemical safety.  One speaker lost her father in a workplace accident and called for rules ensuring worker safety.  Another speaker was an LEPC member who raised concerns about chemical plants in her area and their susceptibility to terror attacks.  Concerns were raised about the post-9/11 restriction on online access to information on chemical hazards.

Only one industry representative spoke in opposition, in contrast to over a dozen speakers who spoke in favor of ensuring the security of the homeland, communities, and workers.

This was the first of several listening sessions that will be held across the country.  The last listening session will be held in Houston, Texas, during the week of January 20, 2014 – location and actual date and time to be determined.

Following on the heals of the chemical safety “listening session”, the “Invisible Houston Revisited” conference was held on Thursday at Texas Southern University addressing issues facing the African-American community and communities of color in Houston.  A panel of three environmental experts addressed environmental justice concerns, including Adrian Shelley of Air Alliance Houston.  Results of the Healthy Port Communities Coalition (HPCC) survey of residents in the Houston Ship Channel were presented, piquing the interest of several conference attendees who asked about HPCC’s recommendations for the port and the implications of the port expansion on communities of color.  Other participants on the panel include Dr. Elena Craft of the Environmental Defense Fund and Dr. Robert D. Bullard, long considered the father of environmental justice.

A new report by the American Council for an Energy Efficient Economy (ACEEE) has Texas ranked 33nd in the nation for programs to promote energy efficiency. This unimpressive ranking shows Texas has a wasteful reliance on fossil fuels which contribute to air pollution and global warming and cost Texas families and businesses more and more each year.

While Texas was an early leader in energy efficiency investments, other states have dramatically increased their energy savings programs, leading to Texas’ decline in the overall state rankings. In a December 2008 report, the PUC found vast potential for energy efficiency in the state which, if tapped, could save Texans as much $11.9 billion on their electric bills. As the PUC considers restructuring the electric market, we would urged the commission to develop a plan that incentivizes greater use of energy efficiency and demand response and avoids subsidizing some of the state’s dirtiest power plants.

This summer, President Obama committed the U.S. to be a global leader on curbing climate disruption and proposed that we start by limiting carbon pollution from power plants. Currently, there are no limits on the amount of carbon pollution spewed into the air by power plants. It’s time to change that.

As they prepare to set carbon pollution standards for existing power plants, the EPA is holding a listening session on November 7 in Dallas for community members and stakeholders. This is your opportunity to let your voice be heard and to tell the EPA that our planet and our futures depend on strong, just action to address climate disruption.

RSVP today for the Dallas listening session to take action for climate protection!

Event details:

WHO: You, Public Citizen, Sierra Club, and climate activists
WHAT: EPA listening session on carbon limits
WHEN: November 7 from 10:00 a.m. to 3:00 p.m.
WHERE: 1st Floor Auditorium, J. Erik Jonsson Central Library, 1515 Young Street, Dallas, TX (map)
RSVP: Click here to RSVP

Questions: Contact Kaiba White at kwhite@citizen.org or 512-637-9462.

We’ve known for decades that carbon wrecks our health and our climate, and power plants are the nation’s top source. Their pollution fuels climate disruption — it makes wildfires burn hotter and droughts last longer. Warm summer weekends become scorching heatwaves and floods become disasters. Unlimited carbon pollution means more smog, more asthma attacks, and more climate disruption.
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Community and environmental organizations filed suit today against Louisiana’s Department of Natural Resources (DNR) for illegally approving a coastal use permit for the proposed RAM coal export terminal on the Lower Mississippi River in Myrtle Grove.

The suit, filed in Louisiana’s 25th Judicial District Court, argues that the DNR did not consider potential alternative sites or fully weigh the negative environmental and public health impacts of the proposal against its questionable economic benefits. DNR’s decision to issue the permit “was arbitrary and capricious and in violation of Louisiana law,” the suit says.

The suit – filed by residents near the proposed site for the terminal, Gulf Restoration Network (GRN), Louisiana Environmental Action Network (LEAN), and Sierra Club – also asks the court to vacate the permit and require DNR to conduct a legally sound review.  Click here to read the suit as filed.

LEAN Executive Director Marylee Orr, explained, “By approving the coastal use permit in September, DNR violated its legal obligation to protect the Myrtle Grove diversion project. The diversion is absolutely vital to coastal restoration. The RAM coal terminal would be built right next to the diversion, and it would send coal-contaminated water right into the wetlands that the DNR is supposed to be protecting.”

Adding further support to the legal argument, a document obtained by GRN through a public records request shows that even state agency consultants agree the proposed coal terminal would be detrimental to coastal restoration by lowering the amount of sediment available for restoration and transporting coal pollution into the wetlands. (For the complete report, go to:  https://healthygulf.org/images/PDFs/Ram%20Terminal%20Technical%20Model.pdf )

The report – produced for the Coastal Protection and Restoration Authority (CPRA) by the Water Institute of the Gulf and CPRA’s engineering consulting firm ARCADIS – said the RAM terminal could reduce sediment to the diversion “by nearly 17%,” resulting in a loss of 80,000 to 500,000 tons of sand over a decade.

“Coal terminals dump into the river regularly – painting the riverbank black with spilled coal and petroleum coke,” said GRN coastal wetland specialist Scott Eustis. “The state needs the Mississippi River and sand from the riverbank to restore the coast. Louisiana’s best scientists have demonstrated that the RAM terminal would take much needed sand from the river. Ignoring their findings is a black mark on our entire coastal restoration effort.”

The proposed terminal, which would be used to ship highly toxic coal and petroleum coke to overseas markets, would be near existing coal export terminals – United Bulk terminal in Davant on the east bank and the International Marine Terminal on the west bank. Both facilities produce plumes of coal dust that blow over residential areas, generating air pollution that has created serious respiratory problems for local residents.

“We have had these coal terminals dumped on us,” said Bryan Ernst, a resident of Wood Park in Plaquemines Parish. “The air around here is already filthy with coal dust, and some people get sick because of it. I worry about those who have asthma and other respiratory problems. Sometimes I’m afraid to let my grandkids go outside because of the problems with coal dust.”

“When you pollute the air and water in a community, you degrade the quality of life of the people living in it,” Ernst said. “Families in this area are committed to their communities. We love this place for its nature, for the fishing and wetlands.  But the coal dust pollution is making our home unlivable. The last thing we want is another coal terminal moving in.”

More than 140 local residents showed up for Aug. 14-15 hearings on the terminal, which were held in Davant and Belle Chasse. Everyone who spoke at the hearing was opposed to the terminal and most shared concerns about air and water pollution.

Public Citizen’s Texas office is part of a coalition that is working to stop coal terminal expansions along the US gulf coast.  Our major focus at this time is the RAM terminal and the Port of Houston expansion projects.

Neighbors for Neighbors (NFN), an organization of residents near Luminant Mining’s Three Oaks Mine, filed late Monday for a contested case hearing on an EFH subsidiary’s request to renew the mining operation in Lee and Bastrop counties.

In its filing, NFN asks the Texas Railroad Commission, the agency that administers mining law in Texas, to require Luminant Mining to post cash or an outside bond to cover the estimated  $60 million cost of cleaning up the strip mine. The group points out since EFH, the parent company of Luminant Mining, is expected to file for bankruptcy by the end of this year, there may not be funds to cover the cost of cleanup.  Click here to see a copy of the filing.

“Does a company have to go bankrupt and walk away from its mines in order for regulators to step in?” asked NFN president Travis Brown. “It would be the height of irresponsibility for Texas to allow a company going bankrupt to say, ‘Trust us, we’re good for it.’ We want Luminant Mining to post real bonds to assure that the mining restoration gets done.”

Russel Bostic, a local rancher and NFN member, said “I live next to the mine, and the company has condemned and is planning to use my land. My family wants our land to be restored to its original condition so we can return.”

Lignite coal mined at Three Oaks is used to supply Luminant’s two coal-fired power plants near Rockdale.

Under federal and state law, mining companies are required to restore mined areas to their original condition.  Those companies must also set aside money so resources will be available for the restoration, even if the company abandons the mine.  The law was created because many U.S. mines were abandoned when companies went bankrupt, leading to contamination of surface water and groundwater.

In Texas, Luminant Mining is responsible for the operation and cleanup of eleven active strip mines. If EFH goes bankrupt and sufficient cash has not been set aside for cleanup, taxpayers could end up with the estimated $1.01 billion cost of cleaning up all the mines.

Instead of requiring that $1.01 billion be set aside in cash or a real bond, the Railroad Commission allowed Luminant to “self-bond,” which means the company is relying on a “guarantee” that their own assets will cover the bonds without having real cash bonds set aside that the state can readily access.  In recent years, EFH has shifted to third party guarantee of the bonds, but the third party is another subsidiary of EFH, so still them.

In its current request for a mining permit for Three Oaks, Luminant Mining is again asking to post a self-bond for cleanup.

Brown said, “The company recently said in a community meeting at the mine that they intend to pledge assets for the cleanup bond. They said they need to operate the mines and coal plants to generate revenues to pay the new debt.  But nowhere in their most recent 8K [financial statement to SEC] do they make that commitment.”

Brown added, “This is especially disturbing since the company also says – in the same 8K – that they expect the price of gas to go up and coal to stay low. That’s the same poor business plan that has led to this bankruptcy.”

Michele Gangnes, an NFN member and a bond attorney, said “The law is clear, and Texas regulators should take immediate action to demand a cash bond so taxpayers and the environment are protected.”

Gangnes added, “In many states, Luminant Mining would be required to put up a cash bond before allowing the Tree oaks mine to expand. But EFH has been playing a shell-game, and state regulators have allowed it. We are asking the Railroad Commission to guarantee that EFH has to set cash aside or post a third-party bond specifically for cleanup of the mines in this bankruptcy deal.”

Austin Solar Victories

Many of you probably remember our concern when Austin Energy proposed slashing the solar budget by 42% for fiscal year 2014 – which we’re now in. But public outcry and our meetings with Austin City Council members made a difference. The budget was fully restored and we can expect to have another great year for solar in Austin.  That was back in September.

Sun-in-fistJust yesterday, Austin City Council passed a resolution that expands the city’s commitment to development local solar.  Of our existing solar goal of 200 megawatts (MW) by 2020, half will now have to be locally sited and half of that local solar will have to be distributed systems that are owned or leased by customers.

That’s great news for local jobs, because there’s no way to outsource installation of small, local solar systems.  Someone has to be here to do a site inspection, file the paperwork with Austin Energy and actually install the system on someone’s room or in their yard.

City Council also instructed the City Manager to consider adopting the 400 MW by 2020 solar goal put forth by the Austin Local Solar Advisory Committee (LSAC) into the Generation Plan update next year.

We have Council Members Chris Riley, Laura Morrison and Bill Spelman to thank for leading this effort, but the resolution was adopted unanimously, and I know that others on the Council are eager to see solar thrive in Austin.  Send the City Council a thank you note.

With the help of the many people in Austin who are concerned about climate change, air pollution, water use, creating good local jobs, and keeping electric rates affordable, we’re going to make sure the 400 MW solar goal is included in the Generation Plan in 2014.

In the meantime, we can turn our focus to ensuring that solar owners continue to be credited a fair value for the energy they put out on the grid for the rest of us to use and that more attractive solar financing options are made available.  Better financing, options for solar leasing and a community solar program are all essential for expanding access to solar for lower and middle-income families and all of us who rent.

If you have old medicine taking up your cabinet space, mark Saturday on you calendar for the City of Austin’s  “drug take-back day” where residents can anonymously drop off any prescription drugs they want to throw away.

Representatives from Austin Police Department and the Drug Enforcement Agency will be at several different locations around Austin, collecting and disposing unwanted prescription medicines, no questions asked.

Saturday’s marks the seventh semi-annual “drug take-back day” in Austin and Central Texas. The event is part of a larger effort to help “clean up” the city by making sure prescription drugs are properly and safely disposed keeping them out of our waterways and landfills.

If your community doesn’t have such a program, you may want to ask your local government to consider holding such an event.

Austin Drug Take-Back

Saturday, Oct. 26, 10 am-2pm

  • Northeast: Cornerstone Church, 1101 Reinli St.
  • Southeast: City of Austin Household Hazardous Waste Facility, 2514 Business Center Drive.
  • Barton Creek Square Mall, 2901 S. Capital of Texas Highway.
  • South: Austin Vet Center, 2015 South IH-35.
  • Northwest: Travis County Transportation Commissioner Center, 8656 SH 71 in West Oak Hill.

Instead of taking action to clean Texas air, as requested by the Dallas County Medical Society, Texas Commission on Environmental Quality (TCEQ) Chairman Bryan Shaw and Commissioner Toby Baker voted today to deny the petition for rulemaking and further postpone needed air quality improvements for East Texas and the Dallas-Fort Worth areas.

The DFW area has struggled with unhealthy levels of ground-level ozone pollution – caused emissions from vehicles and power plants mixing in the sunlight – for decades.  While improvements in air quality have been made, they have lagged behind tightening air quality standards set by EPA to protect public health.  Asthma rates – particularly among children – have continued to rise, as well as hospitalizations due to asthma.

Martin_Lake

In addition to contributing to ozone problems in East Texas & the DFW area, Luminant’s Martin Lake coal plant emits more toxic mercury than any other power plant in the nation, ranks 5th in carbon dioxide emissions & is responsible for $328,565,000 in health impacts from fine particle emissions.

Meanwhile, Luminant continues to operate three coal-fired power plants with a total of eight generating units in East Texas that were build in the 1970’s.  These outdated facilities emit nitrogen oxides (NOx) – which is one of the two ingredients in ozone creation – at twice the rate of new coal plants in Texas.  The rule changes recommended by the Dallas County Medical Society would have required those old coal plants to meet the same standards as new coal plants by 2018 – giving the plant owners more than ample time to make the upgrades or arrange to retire the facilities.

Instead of focusing on whether or not reducing NOx emissions from those old coal plants in East Texas would lead to reductions in ground-level ozone in the DFW area, the Commissioners persisted in questioning the science that shows that exposure to ground-level ozone results in increased and worsened incidents of asthma.  Never mind that the research has been vetted by the EPA and reaffirmed by health organizations including the American Lung Association.  The mindset at TCEQ, as at many of our agencies and with far too many of our elected officials, is that Texas knows best and industry must be protected at all costs.

We appreciate the more than 1,400 Public Citizen supporters who signed our petition in support of reducing emissions and protecting public health.  All of those comments were submitted into the record and I read a few of them allowed at today’s hearing.

We will continue to fight for healthy air as TCEQ moves forward with developing a updated State Implementation Plan (SIP) to bring the DFW area into attainment with ground-level ozone air quality standards.  That process will be ongoing in 2014, so stay tuned.

 

The Associated Press is reporting that the World Health Organization (WHO) is declaring – what many of us who spend our days in traffic choking on smog or who live near a power plant or other industrial facility have long suspected but now has finally been scientifically validated – air pollution causes lung cancer.

The International Agency for Research on Cancer (IARC), the cancer agency of the World Health Organization based in Lyon, France, declared  that air pollution is a carcinogen, alongside known dangers such as asbestos, tobacco and ultraviolet radiation. The decision came after a consultation by an expert panel organized by IARC declared air pollution an important environmental carcinogen, more so than passive smoking.

IARC had previously deemed some of the components in air pollution such as diesel fumes to be carcinogens, but this is the first time it has classified air pollution in its entirety as cancer causing.

The risk to the individual is low according to their statement, but main sources of pollution are widespread, including transportation, power plants, and industrial and agricultural emissions, and they are difficult for individuals to avoid.

WHO and the European Commission are reviewing their recommended limits on air pollution. Previously, pollution had been found to boost the chances of heart and respiratory diseases, but the recent analysis of more than 1,000 studies worldwide points to enough evidence that exposure to outdoor air pollution is now considered to cause lung cancer and WHO will review their recommended limits on air pollution based on these new findings.

Click here to read the NBC news story on this new finding.

Energy Future Holdings $1 Billion Bonding for Texas Mines Doesn’t Pass the Smell Test

An exclusive report from Public Citizen and Sierra Club reveals that Energy Future Holdings (EFH) and its subsidiaries have not set aside cash or real assets to cover the $1.01 billion cost of cleaning up its strip mines in Texas.  Click here to get a copy of the full report entitled “Energy Future Holdings and Mining Reclamation Bonds in Texas“.

As a result, taxpayers could end up with the bill if mines are abandoned by EFH, which is expected to file for bankruptcy by year’s end.

“The report shows that Energy Future Holdings has been playing fast and loose with its obligations to Texans,” said Tom “Smitty” Smith, director of Public Citizen’s Texas office.  “The law is clear, and Texas regulators should take immediate action to demand a cash bond so taxpayers and the environment are protected.”

The Public Citizen and Sierra Club report, titled “Energy Future Holdings and Mining Reclamation Bonds in Texas,” was authored by Tom Sanzillo, Director of Finance for the Institute for Energy Economics and Financial Analysis. (Sanzillo previously served as first deputy comptroller of New York State and has thirty years of experience in public and private finance.)

Under federal law, mining companies are required to set aside money for clean-up of mines so resources will be available even if the mines are abandoned. The law was created because many mines were abandoned across the United States when companies went bankrupt, leading to contamination of surface water and groundwater.

In Texas, EFH’s subsidiary, Luminant Mining, is responsible for the operation and clean-up of its eleven active strip mines. The reclamation is estimated to cost as much as $1.01 billion.

In many states, Luminant Mining would be required to put up a $1.01 billion cash bond or other financial assets equal to that amount. But Texas’s Railroad Commission, which administers state mining law, has allowed Luminant to “self-bond,” which means it is relying on a “guarantee” without having real cash bonds set aside that the state can readily access.

Sanzillo’s analysis shows that the Luminant Generation assets that are used to pass the Railroad Commission’s financial tests for the $1.01 billion “self-bond” are already committed to secure other debt incurred by EFH.

“Luminant Generation’s revenue-generating assets, its power plants, are pledged as security for Energy Future Holdings debt,” said Sanzillo. “That means there may not be liquid assets available for the cost of reclamation. The fundamental problem is that there does not appear to be any unencumbered capital obligated to the state.”  Sanzillo added, “EFH has been playing a shell-game, and state regulators have allowed it, Sanzillo said. “If EFH is just now trying to come up with money for reclamation, that confirms it wasn’t there before. Any new financing mechanism that EFH comes up with must be reviewed rigorously. EFH has to segregate the money – set cash aside or post a third-party bond specifically for clean-up of the mines.”

Al Armendariz, senior representative in Texas for Sierra Club’s Beyond Coal Campaign, said, “This billion-dollar bonding should be a wake-up call for future buyers of EFH’s oldest coal plants. It may be that these old EFH coal plants are just too expensive to operate. They’re the subject of enforcement actions by the U.S. Justice Department, and EFH may be required to add  hundreds of millions of dollars in additional pollution controls to meet new ozone, mercury, and  carbon standards.”

Smith pointed out that how Texas handles the EFH financing for clean-up of mines could set national precedent.

“One hundred and fifty coal generating units in the United States have announced they plan to retire, and as a result many of the mines that supply them may end up in financial trouble,” Smith said. “This problem is bigger than Texas and regulators across the nation should take steps to protect consumers and the environment in their states.”

Our climate is changing and action is desperately needed, but that message is not getting through to to many of our leaders. Climate-Com will explore how the media can better present current climate science so that the public and our leaders will be convinced to act.

Lake Buchanan
What: A panel discussion on how we can change the way we communicate climate science and facts to the public through the media, particularly broadcast meteorologists. Featuring Jim Spencer of KXAN-TV and Kris Wilson, PhD of UT School of Journalism.

When: Sunday, October 6, 2013 from 3:30pm to 7:00pm

Where: Scholz Garten, 1607 San Jacinto Blvd., North meeting room

Who: Climate Change Now Initiative, Public Citizen’s Texas Office, KXAN-TV, UT School of Journalism, Forecast the Facts, Texas Drought Project, Austin Citizen Climate Lobby

Cost (suggested donation): $10.00 – Adults, $5.00 for students, 16 and under free **Also, free if you calculate your personal carbon footprint using an online carbon calculator and send the tons of carbon per year with your name to qualitykicks@hotmail.com.**
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The public will soon get a chance to present ideas and feedback to EPA officials on the agency’s plan to require existing power plants to cut their carbon emissions.

The agency will hold a series of 11 public events around the country over the next two months, the agency announced today.

The EPA plans to set guidelines that will allow states to design programs to reduce carbon emissions from power plants, which account for a third of the nation’s greenhouse gas emissions, the agency said in a statement. Those proposals are scheduled to be released in June 2014.

“Before proposing guidelines, EPA must consider how power plants with a variety of different configurations would be able to reduce carbon pollution in a cost-effective way,” the agency said.

The public hearings will be:
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