The Substitution of Legislation by Regulation
The Proposed Coal-Fired Power Plant in Rogers City, Mi Part 21
The Heavy Hand of the EPA
One of the things that makes America different from other countries is our political system, presumably. I mean to say that we elect leaders to represent us and work in our interest among the political causes of the day. Unfortunately, this is no longer the case in the United States of America.
Under the Obama Administration, what cannot be done through legislation is now being done by decree.
EPA (Environmental Protection Agency) Administrator Lisa P. Jackson said in a press release on Friday, “Business leaders, security experts, government officials, concerned citizens and the United States Supreme Court have called for enduring, pragmatic solutions to reduce the greenhouse gas pollution that is causing climate change. This continues our work towards clean energy reform that will cut GHGs and reduce the dependence on foreign oil that threatens our national security and our economy.”
The fact that the science of global warming has come under serious question and even been shown to be made up, seems not to be an issue for Ms. Jackson.
Since these regulations will most likely ban the domestic drilling of oil, it will in no way “reduce the dependence on foreign oil.”
What does this all mean for the Rogers City Coal Plant? Well, as of this writing, Wolverine has not been issued an air permit or a permit to install. But if it does receive the main permit, it will be a double-edged sword.
With Cap and Trade legislation largely considered dead-on-arrival in the Senate, the EPA means to enact similar, without a doubt, more stringent commands on coal plants. It is not to be ignored that a spokesman for the Edison Electric Institute concluded, “The only certainty is that EPA regulation would be far more expensive than congressional-designed legislation.”
After all, why is the Global Warming bill (Cap and Trade H.R. 2454) in trouble in the Senate? Is it not because a large number of Senators have constituencies that are very much opposed to the bill? In fact, the only way Cap and Trade was passed in the House was in the middle of the night by a vote of 219-212.
The people of this nation have no say in the matter.
This is not how the U.S.A. is supposed to work.
Tom Karas says quit “whining” while he kills our children’s future.
A couple of weeks back, I noticed that Tom Karas, an out-of town environmentalist, was planning to show up at the Presque Isle Electric and Gas Co-op annual meeting to formally demand a complete financial disclosure of Wolverine’s Power Plant proposal. He stated so openly in an editorial in the Advance.
Knowing that he had been actively trying to kill the future of Rogers City by casting aspersions against the financing of the coal plant for almost two years now, I threw his demand back in his face.
Advance (10/29/09) Opinion:
To the editor,
As a member of Presque Isle Electric and Gas Co-op, I hereby introduce a motion demanding Tom Karas’ financial disclosure. By carefully following the coal plant story for the past three years, I know he has started at least three web sites without disclosure to the public of who pays for them. I know he has paid for at least one study that is biased in nature and shares his world view. I also know that he himself has admitted that he gets paid from San Francisco to continue to force Wolverine to spend money to address his concerns. I want to know who he is paid by, how much he is paid, and more importantly, how much money he stands to gain if this coal plant does not go through. I have been writing about this coal plant on my blog. You can read it at http://jennerationx.wordpress.com/rogers-city-coal-plant/.
Jennifer M. Kuznicki
Rogers City(sic)
Hawks
Tom has distastefully responded to my inquiry by leaving an arrogant comment on my website and like a school-yard bully, sent me an email to try to get me to meet him for a photo-op in front of the Advance to accept his tax returns from last year.
I have decided to handle the inquiry in this manner.
As you can see by reading The Proposed Coal-Fired Power Plant in Rogers City, MI Part 5, my inquiry was a result of Karas’ own words.
Part 5--Quoting from the Advance, “Karas, who voiced his disapproval of Wolverine’s project on many levels, said he receives funding for his efforts from the Energy Foundation, based in San Francisco, California. According to its website, the goal of the Energy Foundation is ‘to develop and promote U.S. state and regional policies to reduce global warming pollution in order to build models for, and momentum toward federal global warming policy.’ ‘They want me to do public education, ‘ Karas said.
The Energy Foundation funds 501(c)(3)s to which Karas would have to apply and receive funding for a certain project under a different name.
501 (c)(3) organizations include charitable, religious and educational groups. They pay no taxes on income, and contributions are tax deductible for donors. This is the only category of tax-exempt organizations with this fundraising advantage. One of the conditions for this favorable treatment is that these groups strictly prohibited from supporting or opposing candidates for public office. However, they are allowed to engage in a limited amount of legislative lobbying.
This funding would not show on his individual tax return. I believe his “project” is to kill the Wolverine Clean Energy Venture. The name used could be Co-op Conversations.
I do not “whine” in public, Tom. I see you as a self-serving egotist who stands in the way of my children’s future.
Obama the Dream-Sucker.
Yesterday, I listened to President Obama say these words.
Despite the progress we’ve made, many businesses are still skittish about hiring. Some are still digging themselves out of the losses they incurred over the past year. Many have figured out how to squeeze more productivity out of fewer workers. And that cost-cutting has become embedded in their operations and in their culture. That may result in good profits, but it’s not translating into hiring and so that’s the question that we have to ask ourselves today: How do we get businesses to start hiring again?
From the perspective of an employee of a small business, I can’t tell you how cynical and dream-crushing your perspective is, Mr. President.
I don’t see how you can claim, sir, that your administration has made any progress, economy-wise. Here in Michigan, I’ve been told there were some stimulus jobs in the 83rd congressional district, however, there are only 15 districts in Michigan, and they number 1 through 15.
I don’t like to talk about myself as much as you do, but I’d like to share some of my experience to let you know what types of things you all are doing “in Washington that are inhibiting” me.
I was hired 4 years ago to do a highly-skilled job that I had no idea how to do. With the help of my fellow co-workers, I learned. I learned fast. It wasn’t long before I could see some ways of doing things at work to make the job simpler, and more effective. I became supervisor and was involved in the hiring process. I helped hire people who had the same amount of knowledge of the job as I did when I got hired. I am now helping them to become as successful as I have been.
I can’t tell you how many jobs I’ve had before this that I literally stared at the clock, waiting to go home-where I never did anything either. That’s not living, that is only existing.
You see, when you learn something, a skill or a piece of knowledge, you feel good about yourself. You say to yourself, “Wow, I did that. Maybe there are more things I don’t yet know I can do.”
When you know you are able to do something that you never thought you could, you start to think that what you have been dreaming about doesn’t just happen to lucky people, you start to think that those people who have reached their dreams worked at it, and learned as much as they could to achieve them.
Those people become entrepreneurs, small businessmen and businesswomen.
Every person has a dream of what they really want to do. Some dreams become nothing because of the lack of work involved in making them come true. In Michigan, I believe the back-breaking amount of work involved in holding one’s dream is a direct result of the “inhibiting” effects of Michigan’s current administration and your administration.
Sir, why would any small business person hire someone to do nothing? After they worked so hard to take the chance to reach their dreams, why would they disrespect another human being in such a manner? Who would say to an applicant, “Look, don’t try to get ahead in life, sure I did it, but you can’t.” Not me, never ever.
It takes hard work to reach your dreams, it takes a non-productive existence to suck them away.
For the small business owner out there, I have a few questions that I’d like to ask you to answer in the form of a comment.
Questions:
What do you think are the major contributors, specifically, to the past year’s loss in sales and/or revenue?
Do you believe intrusive government is slowing your recovery? If so, how?
Do you believe the current administration has made progress in the economy?
Are you cutting costs on your workers? If so, how has that resulted in good profits?
When do you plan to hire, and, what needs to happen so you can hire again?
The Proposed Coal-Fired Power Plant in Rogers City, MI Part 20
Carbon Capture and Sequestration
Our congressman, Bart Stupak announced gleefully the week of October 8th, 2009, that $2.7 million of federal stimulus funds from the American Recovery and Reinvestment Act (ARRA)were awarded to Wolverine Power for carbon capture. I wrote about the stimulus bill on this blog and rereading shows me that there was 2.4 billion in the stimulus for carbon capture and sequestration projects.
The Advance quotes Stupak, “This funding will allow Wolverine Power to develop innovative new technologies to reduce carbon dioxide emissions while also creating jobs for our workers. I am pleased Energy Secretary Steven Chu is investing this stimulus money in northern Michigan so we can continue to be a leader in developing and implementing green technology here in Michigan and across the nation.”
First of all, Steven Chu didn’t invest anything, we have to pay for it with future taxation, but that aside, it is only a little over 2.7 million dollars. With a little research I found out that because carbon capture and sequestration is not fully developed yet, it is very expensive.
As you can read from the Council for Climate Research’s 2008 NIChE Carbon Capture and Sequestration Conference
Particular focus is given to CO2 capture from coal-fired power plants, because these plants account for about 33% of the total CO2 emissions in the United States – more than the combined emissions from all other large point sources. CO2 capture options for coal-fired plants include post-combustion capture (e.g., using amine or ammonia scrubbing to treat the flue gas from a pulverized coal (PC) plant), pre-combustion capture (e.g., using a physical absorption process to treat the synthesis gas in an integrated gasification combined cycle (IGCC) plant), and oxy-combustion (i.e., combusting coal in pure oxygen and recycled CO2). Pilot- and/or commercial-scale demonstrations of these configurations are in various stages of development; a realistic timeframe for commercial deployment of these technologies is proposed. However, widespread deployment of CO2 capture using today’s best available technologies would have a substantial impact on the nation’s economy and energy supply. Retrofitting a coal-fired power plant with amine scrubbing for 90% CO2 capture can triple its cost of producing electricity and decrease its net electrical output by 30%. A new IGCC plant with CO2 capture can have 50-100% greater capital costs and ≥60% greater cost of producing electricity than a new supercritical PC plant without CO2 capture. Hence, there is a strong need for the continued development of technologies that have potential to reduce the costs and energy requirements associated with CO2 capture. (emphasis added mine)
So, basically, we will be taxed in the future for the project that is so cost-prohibitive and undeveloped, that Wolverine’s cost of doing business will skyrocket. Much like President Obama said would happen and I discuss in Part 8.
Now, all this talk about CO2 has got to be put into perspective, and by doing so, I believe you will understand my opinion on the whole carbon project.
We exhale carbon dioxide and it is needed by plants to grow. Carbon dioxide accounts for .004 % of the atmosphere. The extremist environmental school of thought puts carbon dioxide as a major source of pollution and is what is causing global warming. Remember, Al Gore’s An Inconvenient Truth was based on .7 degrees celcius increase over one hundred years.
The Supreme Court of the United States on April, 2, 2007, ruled in a 5-4 decision that th EPA has the authority to regulate greenhouse gases, an authority the current administration accepts with vigor. Because of the extreme environmentalist view of the current administration, Wolverine, in my view, has to pony up an awful lot of money.
How could so many people buy into falsehoods and “scientific consensus?” I will discuss that later.
Back to the 2.7 million dollar grant. It seems a mere pittance since Wolverine has to prove if it works to be accepted for the second phase of grants. Quoting the Advance, “The remaining ARRA funding will be awarded to the most promising projects during a competitive phase two selection process. Projects that best demonstrate the ability to address their emission needs will be in the final portfolio that will receive additional funding for design, construction and operation.”
So, not only do we have to pay for the competitive research with future tax dollars, Wolverine isn’t guaranteed any more funds, and who knows what may happen if the project fails. From Part 17 about Cap and trade, I discuss how the bill calls for carbon sequestration.
From the October 9th, 2009 post on Varnum Blogs, “The Department of Energy has awarded an initial $3.71 million grant to study whether carbon dioxide from Holland Board of Public Work’s proposed new coal-fired electric generating plant can be safely injected in below-ground sandstone formations. PraxAir Inc. assisted in garnering the funds for the Board’s study. Test wells will be drilled at the location of the plant. The cost of the carbon-sequestration project is estimated to be $150 million in addition to the $240 million cost of the new plant. The DOE has also awarded Wolverine Power Supply Cooperative Inc. $2.7 million to demonstrate the use of advanced amines and additives to capture 300,000 tons of CO2 per year from its proposed 600 MW circulating fluidized bed power plant near Rogers City. Both projects are in the process of negotiating air permits with the Michigan Department of Environmental Quality. Meanwhile the state legislature is working on a bill that would charge a one-time $1 per ton CO2 fee and 15 cents per ton annually in exchange for the state assuming liability for the CO2 storage.”
Like the blog says, on top of it all, the legislators are still working on a way to charge the energy user more.
click here to view Part 21
The Proposed Coal-Fired Power Plant in Rogers City, MI Part 19
Clean Coal = Michigan Jobs
“Put us to work,” was the chant heard in Lansing on October 6th, 2009 when a bus load of Rogers City activists joined a rally on the steps and the lawn of the capitol. Mayor Beach Hall spoke at the rally .

The Advance writes, “The Michigan Building and Construction Trades Council and Protect Michigan, a coalition of the state’s major labor organizations, organized the rally with the support of the Michigan Chamber of Commerce, the Michigan Manufacturers Association, and other members of the Michigan Jobs and Energy Coalition.”
ROGERS CITY mayor Beach Hall, the only speaker from the lakefront town, told the audience of the “overwhelming support” the Wolverine Clean Energy Venture has received, including a “Welcome” ad in the Advance from businesses and individuals, 3,500 petition signatures “in a town of 3,300” and 400 yard signs.
Citing the economic well-being of the region and the future power needs of the state, Hall urged Gov. Jennifer Granholm and the Department of Environmental Quality (DEQ) “to hurry up and approve Wolverine’s air quality permit so people can be put to work now,” Hall said in his speech.
“For Rogers City and the northeast Michigan counties of Presque Isle, Alpena, Cheboygan and Montmorency, a billion dollar project in northeast Michigan is huge. The possibility of up to 1,700 construction jobs for several years is huge. The possibility of over 500 direct and in-direct permanent jobs, including over 200 jobs supplying biomass for the plant is huge, anywhere, but especially in northeast Michigan.” Hall said local and state tax revenue from the project would increase at no cost to the state.
You can read the entire story here, I was not able to be at the rally, but after reading about it, I realized that it is such a significant picture.
The fact that in the most economically depressed state in the Nation, that a town of 3500 has to mobilize and picket the capitol just to get jobs. It’s sad really.
The Advance reports on an interesting poll, “Seventy-four percent of voters say they support Consumers Energy’s plan, while 72 percent said they would support Wolverine’s project. While the strongest support for these new power plants comes from the regions where they would be located, they receive robust support from all areas of the state.”
The Proposed Coal-Fired Power Plant in Rogers City, MI Part 16
Surprise! Michigan doesn’t need Energy!
In Part 13 of this series I covered the governor’s state-of-the-state address where she issued a declaration that the Michigan Public Service Commission (MPSC) would be involved with the DEQ in the issuance of air permits. I mentioned that AG Mike Cox forced Granholm to rescind the order, but in a good faith effort, Wolverine compiled a report and sent it to the MPSC in June.
The Advance reports,
“On April 1, the MPSC entered into a Memorandum of Understanding (MOU) with the DEQ that clarified each participant’s role and responsibility regarding a review process to evaluate electric generation alternatives and provide technical assistance to the DEQ. This MOU answers requirements of an executive order issued on February 3 by Governor Granholm.
In this new directive, the “MPSC is to provide technical assistance to the DEQ on all matters related to the need for electric generation in the state, as it relates to the analysis that looks at alternatives to coal-fired generation.” The MPSC is also to “review the alternatives analysis to assess whether energy efficiency, renewable energy, or other alternatives meet future electricity needs,” states a press release from the MPSC.”
Executive Vice President for Wolverine Craig Borr concluded the story saying, “Think of it as the DEQ using the MPSC as its power supply or electric generation advisor or consultant.”
So even though the report is not necessary since the MPSC cannot approve or deny permits, only the DEQ can, the MPSC came back with an opinion.
The opinion stated that Wolverine did not successfully demonstrate the need for power, and Wolverine offered a scathing rebuttal to the report which you can read here.
I have to admit, when I heard this opinion by the MPSC I was livid because I knew what they had said just a few years previous. This excerpt is from MPSC Issues Summer 2006 Energy Appraisal.
Electricity – This summer’s combined peak demand in the Detroit Edison and Consumers Energy service areas are projected to total 21,365 MW. This demand will be 722 MW above their in-state generating capacity of 19,250 MW, so purchases of power are being made to assure adequate reserves.
It makes me wonder what has happened to the MPSC in three short years?
The Proposed Coal-Fired Power Plant in Rogers City, MI Part 14
Wind Energy Depends on Your Wind
Despite the bad political climate, some leaders of Presque Isle County took a trip to observe a coal-fired plant under construction in Boyce, Louisiana. Read the story here.
In March, another trip, this time to a wind mill gave some insight on the Adam’s Point feasibility of the wind farm proposal by Wolverine discussed in Part 3 of this series. It seems that at this point in the story, Wolverine was not having luck finding enough wind needed to put up windmills. Quoting the Advance, “The Adams Point site was being pursued after initial discussions with Oglebay Norton’s former company president and CEO Mike Lundin, who suggested the location.
“Mike said that it is really windy there,” said Bradstreet. “If you look at a state wind map, where they look at the geography and they make a guesstimate of whether that is going to be a good area, it’s not particularly good. That isn’t based on actual tests.
“Everyone I talk to in Rogers City says this is the windiest place you’ll ever find. We hope that is true, but we need to put some statistics behind that,” said Geiger. In September 2007, a 200-foot meteorological tower was put up. “Its purpose is to get a better understanding of what the wind in that area is like,” said Geiger. “We need to get an understanding of how hard the wind is blowing, and how often. In any case, we’ve had the tower up for some time now.”
Since Adam’s Point is in Pulawski Township, some of the leaders of Pulawski took a trip to the thumb area to learn about wind farms. The Township Clerk of Oliver in Huron County just happened to own a farm on which three wind mills generate power. The windmills on his land are part of the 32 Canadian made windmills of John Deere Wind Energy, whose electricity is bought by Wolverine. It took one month to put the turbines up. He talked about the increased tax base and the fact that the area was exceptionally windy. He added that in the 15 month of operation of the windmills, electric bills haven’t gone down, but they haven’t gone up either. He also said that some utilities were tacking on additional charges for the future development of green energy. The 32 windmills produce a maximum of 52.8 megawatts. The entire project costed 94 million.
What that means to me is that 32 wind turbines in a very windy area can produce almost 53 megawatts of electricity, for 94 million dollars with very little sustainable job creation. Compare that with one clean coal plant bulit in the middle of a limestone quarry that can produce 600 megawatts of electricity, for about the same money and over 1000 temporary jobs and 100 permanent jobs right here in Michigan.
However, that was not the reason the officials went to view the wind farm, it was to understand the pros and cons of having wind turbines as an addition to the coal plant. If Adam’s Point does not generate enough wind to produce electricity, there will be no windmills built. That is what happens when you rely on Mother Nature.
The Proposed Coal-Fired Power Plant in Rogers City MI Part 13
Michigan Blown Away
Governor Jennifer Granholm gave her state-of-the-state address in February adding to the obstacles placed in the way of Presque Isle’s economic recovery. You can read the Advance’s story about it here. She pushed for reliance on solar and wind power and energy conservation. Strong conservation habits will be needed precisely because she wants to rely on solar and wind. She introduced a “bold” new “goal” of decreasing the usage of fossil fuels in Michigan by 45% by the year 2020.

“How will we reach this 45-by-20 goal and get the jobs that come with it? Instead of spending nearly $2 billion a year importing coal or natural gas from other states we’ll be spending our energy dollars on Michigan wind turbines, Michigan solar panels, Michigan energy-efficiency devices….” You read that right, she said “instead of.” Granholm’s plan is to eliminate coal-power. If you are keeping score, that puts Granholm on the side of the people who want Rogers City to lose.
“That’s why I have directed the Department of Environmental Quality (DEQ) to evaluate, in consultation with our Public Service Commission, both the need for additional electricity generation and all feasible and prudent alternatives before approving new coal-fired power plants in Michigan.”
I mention this because it will become relevant later in this series. Granholm’s expectation that Michiganders will be able to conserve our way to economic prosperity is a very laughable stance indeed, unless of course you consider the fact that Michigan is and has been the fastest emptying state ever since she came into office.
She also mentions that part of her four point plan is that new jobs will be created when Michiganders winterize their homes. That is a side-splitter. To think that all of us moronic citizens of Michigan haven’t yet thought to winterize our homes and we need the Governor of the state to tell us to do so.
As for Rogers City, the following week a group of citizens traveled to Louisiana to see how a coal plant in construction impacted a small town.

Bart Stupak, Congressman of the 1st District, is enthusiastic about the idea, and helped suggest his district as a home to the Gitmo prisoners. He first
Abdullah was
In April, during the County Republican Party’s Lincoln Day Dinner,
U.S. Congressman Bart Stupak voiced his approval of the plant in a visit as well. He said he has always been impressed with Wolverine’s up -front and honest approach in presenting both the positives of the project and thing that may cause some concern. Speaking about the proposed plant,