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GRANT COOKE: CBR permit denied and new Green Inudstrial Revolution developments impact Benicia

Repost from the Benicia Herald

Grant Cooke: CBR permit denied and new Green Inudstrial Revolution developments impact Benicia

By Grant Cooke, September 22, 2016
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Grant Cooke

History, or at least precedence, was made Tuesday evening when the Benicia City Council denied Valero a land use permit to bring in volatile Bakken and Tar Sands crude oil from North Dakota and Canada by train.

In what appeared to observers to be a stunning change of heart, the council unanimously agreed with the Planning Commission’s earlier recommendation to reject Valero’s project permit.

With other Northern California cities —and San Luis Obispo—watching carefully, the council’s action set a precedent and reaffirmed a city’s right to regulate local land use and protect the health and safety of its citizens.

The decision may have marked the first significant rejection by a California small town of a fossil fuel company’s proposed major business expansion, and probably notes the diminishing power of the industry in local and state politics.

Interestingly enough, the most prominent rejection by a small town of an oil company’s intended expansion occurred in Denton, Texas. Denton, a quiet and prosperous suburb of Dallas, in the middle of America’s oil patch, banned fracking (a method of shale gas extraction that uses large amounts of water pumped at high pressure into channels drilled into rock to release gas) within the city limits in 2014.

Benicia council’s decision has signaled the city’s first steps away from its past dependence on the fossil fuel industry and its Company Town identity, and marks a tentative step toward a new reality. While local, the decision was significant and reflects the growing momentum of the megatrend known as the Green Industrial Revolution, which is replacing carbon dependent economies with those powered by renewable energy.

Despite the decision, and for years to come Benicia’s tax revenue will still be highly dependent on fossil fuel, and so the developments of the Green Industrial Revolution with its twin drivers of carbon emission reduction and non-carbon energy expansion will have enormous consequences. As the Green Industrial Revolution expands, it will lead to the decline of the fossil fuel industries and correspondingly to the reduction of Benicia’s tax base and carbon-dependent economy.

Here are some other recent events furthering this expansion, and while not local, all have a bearing on Benicia’s future.

The first event happened at the recent G20 meeting in Hangzhou, China. The G20 meeting, which occurs annually, brought together the world’s 20 major economies to discuss international problems and potential policies and solutions. Leaders from the U.S., the European Union, China, Japan and Russia among others, came together for the two-day summit. Next year’s meeting is in Germany.

Woodrow Clark, my writing/business partner, is a member of the B20, a G20 subgroup that focuses on international business and economic issues. As a member of the group that delivered a policy report at the Hangzhou meeting, Woody had a front row view of the historic G20 meeting. Among the policy discussions that the meeting generated, there were some remarkable initiatives. One was that Russia agreed to join the US and China, along with the EU in addressing climate change. I imagine that India will also commit to GHG reductions next year at the G20 meeting in Germany.

This is an expansion of the initial US/China agreement from December’s UN Climate Conference in Paris. It increases the pressure on the fossil fuel industry, which is already beset by plunging oil prices, corrupt and chaotic politics, and furthers the rapid development of non-carbon renewable energy. Its impact on Benicia is indirect, unlike a report from Japan’s Eneco Holdings, LTD, which was part of the G20 Executive Talk Series. (Here’s the link to the vertical edition http://g20executivetalkseries.com )

A second development was also part of the G20 meeting and featured the showcasing of a remarkable chemical breakthrough by Eneco Holdings, LTD, from Japan. The company has the potential to be one of Asia’s largest energy companies with their development of a nano-emulsion technology. It appears that the company has succeeded in making a “complete fusion” between water and oil through the ultra-miniaturization of components at the molecular level. In simple terms, they have succeeded, where all others have failed, in mixing water and oil into a combustible fuel. The result is a mixture that is 70 percent water and stable enough to be a used in internal combustion engines. Further, it is safe and environmentally friendly, emitting about half the carbon, nitrous oxide, and sulfur dioxide released in traditional internal combustion gasoline and diesel combustions. Additionally, when produced in large quantities it will be significantly cheaper than conventional gasoline and diesel.

Originally produced for the Japanese market, Eneco’s Plasma Fusion fuel is being tested and used in China and other parts of Asia. With clean emissions levels, it is ideal for the heavily polluted Asian megacities, and should rapidly grow into a viable alternative to conventional gasoline and diesel. Just imagine how healthy West Oakland’s port area would be without its diesel contaminates? Regardless, this emulsion fuel will be a transitional fuel to hydrogen powered vehicles.

The third development that will have a significant impact on the fossil fuel industries is the continual plunge in the price of solar panels. Last week at a meeting, a solar developer told me that panel prices are now the lowest they have ever been in California, plus they are functioning at their highest levels of efficiency.

Driven by the economic principle of Zero Cost Margins—once the equipment is paid for, the rest of the energy is free—solar and renewable energy are expanding at the rate of Moore’s Law, or doubling about every 18 months. Developing and developed nations are rapidly adopting renewable energy, mostly wind and solar, as a replacement for fossil fuels. In about 20 areas in the world, particularly in Asia, solar and renewable energy are less expensive than fossil fuel. Even Saudi Arabia and United Arab Emirates are developing large solar power generation sites.

Because of Russian aggression and threats of shutting off the natural gas supply, Europe has accelerated its transition from fossil fuel and atomic energy to wind and solar. Germany is a major user of solar energy despite the northern climate, and the United Kingdom is building the world’s biggest offshore wind farm called Hornsea off the Yorkshire coast. Hornsea will be the world’s first offshore wind farm to exceed 1 GW in capacity and will produce enough energy to power well over 1 million homes.

Closer to home, the United States’ Pacific coastline has enough wind and tidal resources to power most of the nation’s needs, and by adding solar to the mix, the U.S. could easily generate enough electricity for centuries to come. Roughly speaking, wind power costs about 2 to 4 cents per kilowatt hour and solar about 5 to 6 cents. PG&E charges around 22 to 24 cents per kilowatt hour, so it’s just a matter of time before on-site or distributive energy overtakes traditional energy delivery.

Further, the carbon industries and the large central utilities have flawed business models that are dependent on ever increasing growth and they cannot adapt to the lower prices available from renewable energy, or the increasing efficiency of vehicles and buildings. This is why Clark and I have written extensively on energy cost deflation and the shrinkage and decline of the carbon industries and the large central utilities.

Finally, we come to Sept. 8’s monumental signing by Gov. Jerry Brown of Senate Bill 32, the legislation that has catapulted California into a leadership role of the international efforts to slow global warming. SB 32 will force the state’s trillion-dollar economy, one of the biggest in the world, into a much smaller carbon footprint. In fact, the legislation requires the state to slash greenhouse gas emissions to 40 percent below 1990 levels by 2030, a much more ambitious target than the previous goal of hitting 1990 levels by 2020. Cutting emissions will affect nearly all aspects of our lives, accelerating the growth of renewable energy, prodding people into buying electric autos, and pushing developers into building denser communities connected to mass transit. (Details: http://www.latimes.com/politics/la-pol-ca-jerry-brown-signs-climate-laws-20160908-snap-story.html ).

One other key element to California’s pursuit of clean air and reduced greenhouse gases is the state’s cap-and-trade program. The program requires the state’s heavy polluters to buy carbon offsets, or credits, to release emissions into the atmosphere, creating an additional operating cost for the oil and utility industries.

SB 32 and the expansion of cap-and-trade will have dramatic impacts on the state’s fossil fuel industries. Likely many of us are driving our last conventional gasoline powered vehicle, with the next one probably powered by electricity or hydrogen. It’s not hard to predict that since the Bay Area’s refineries are the heaviest of the area’s polluters, that the combination of reduced revenue from shrinking demand and increased costs of production and operation will eventually lead to refinery closings.

The fossil fuel industries won’t give up easily, there’s trillions of dollars at stake. Many of the industries leaders and the more prescient investment bankers know that the fossil fuel era has peaked and started to decline, which is why Russia overran the Crimea and is poised to take over Ukraine. Which is why the U.S. and Canada are being besieged by the fossil fuel interests to ignore or eliminate environmental and safety protections that hamper production.

Which is why Valero pushed so hard to transport volatile Bakken crude by rail cars through the densely populated Sacramento corridor and cram the trains into Benicia and a refinery that is not designed or equipped to deal with them. The industries, the refineries and all connected to the fossil fuel era, know that the incredibly lucrative period when oil was king and black gold flowed from the sand is coming to an end.

Bringing this back to Benicia, we see a city that is dependent on Valero for tax revenue and its governing process glimpsing a new reality. Small cities like Benicia that have been so dependent on the fossil fuel industries for so much and for so long, struggle to change. Other cities like those in the deindustrialized Midwest that have suffered sudden collapses of their major companies and tax bases have had to reinvent their economic drivers or just blow away. But it’s hard for a city like Benicia with its apparent prosperity and ease of living to understand that its fossil fuel base is in decline and that the future is elsewhere.

Grant Cooke is a longtime Benicia resident and CEO of Sustainable Energy Associates. He is also an author and has written several books on the Green Industrial Revolution. His newest is “Smart Green Cities” by Routledge.
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GRANT COOKE: Time to Shed the Company Town Label

With permission by the author. (Published in the Benicia Herald, 5/3/16, no online presence, thus no link…)

Time to Shed the Company Town Label

By Grant Cooke, April 29, 2016
Grant Cooke
Grant Cooke

I have a great deal of respect and gratitude toward municipal politicians, particularly those who toil on the city council and commission level. The hours are long, the decisions tough, and the pay bad to non-existent. Heaven knows that without good folks looking after the stuff that keeps a social contract intact, Thomas Hobbes’s “natural state” of chaos, violence, and potholes would be the norm.

This goes for the folks who lead our fair city. Benicia’s mayor and members of the council seem like fine people. They attend the meetings, do the horrific amount of homework required to be conversant with the issues, and overall appear to be decent folks with a sincere believe that they are doing the collective good by serving their fellow citizens. I’m grateful for their service; but I just wish that three of them—Alan Schwartzman, Christina Strawbridge and Mark Hughes—would resign.

Their collective efforts to secure Valero’s delay of the crude-by-rail decision against overwhelming community disapproval, the unanimous rejection of the project by the Planning Commission, the concerns of every major city along the proposed rail path, and the thousands of letters and statements against the project by informed and credible experts raises the bar of small town political shamefulness.

That it was clear from the start that the three council members were going to side with Valero verges on chicanery. Why put the town’s citizens through the hope of believing that their concerns of health and wellbeing are being heard and matter, if you support a volatile project that has a blast zone that includes an elementary school?

Since none of the three has stepped forward with a clear and convincing argument about why they sided with Valero—after all Valero would still bring the oil in by existing means and really doesn’t need the continuous line of daily rail tankers to stay in business and pay its taxes—we are left with the impression that once again, a small American town is at the mercy of a major oil company.

The history of the US oil industry is a trail of tears going back to the early days of ruthless land grabs, the mendacity and murder of Standard Oil’s oligarchy, the tragic violence of the Middle East, and the rise of climate change and environmental pollution. And to think, all this could, and still can, be avoided by shifting from carbon-based to renewable energy.

(As an aside, look at Denton Texas. This small Texas oil town, home to many of Dallas’s oil executives, banned fracking and drilling in the city limits. Evidently, they didn’t want to run the risk of an accident close to parks and schools. There’s a lesson here for Benicia. As a state, New York stood tall against the oil industry, but Denton is the only US small town I know of to have the self-respect required to say enough.)

So, the question before the citizens of Benicia is now what? What good is Benicia’s formal planning process if corporate power can bludgeon a thorough and lengthy review and rejection of the crude-by-rail proposal? Why put the residents through all the work and hope of participating in the democratic process if there is no intention by the council to understand their concerns or follow their wishes?

I grew up in rural America and know what a “company town” is. In some ways, it was simple and easy, letting the company bosses tell you where to work, what and who to like, what to believe in and who to vote for.

But it lacked fulfillment and self-determination, and I moved to the Bay Area to be part of the epicenter of the world’s intellectual and scientific renaissance where freedom of thought, action, and the ideals of local democracy are so highly acclaimed. Yet, ironically, I end up in a “company town”, where a huge carbon polluter can seemly send three decent council members scurrying to service its greed.

The problems of 21st century cities, big and small, are complex and can no longer be inclusive of one economic driver or administered by one major corporate power. For Benicia to move forward and join the extraordinary Bay Area knowledge-based economy we need to say goodbye to those three council members who lack the wherewithal to help the city past its company-town era.

Other once-rural Bay Area cities have thrown of the oppressive yoke of being run by a single company, exchanging “easy” for self-determination. Cities like Sunnyvale and Mountain View long ago threw off the yoke of the defense industry and learned to reinvent themselves and flourish. Walnut Creek, Livermore, and now Richmond are joining the prosperity of a sophisticated diverse economy. Vallejo and the other cities along I-80 are showing signs of change as the robust modern Bay Area economy moves outward from Silicon Valley.

If Benicia hopes to continue as a fully functioning city with a compliment of services and a healthy and vigorous citizenry, it has to look forward, shed its dependence on Valero, and embrace a 21st century reality.

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Cooke is a long-time Benicia resident, author and CEO of Sustainable Energy Associates. His newest book, Smart Green Cities: Toward a Carbon Neutral World was published in April. The Green Industrial Revolution: Energy, Engineering and Economics was published last year.
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Election results: Communities Across Nation Ban Fracking

Repost from Common Dreams

‘Just the Beginning’: Communities Across Nation Ban Fracking

In Ohio, California and Texas, voters took to ballots to say no to fracking, yes to communities’ health
By Andrea Germanos, November 5, 2014
Fracking ban supporters Margaret Moreales-Rebecchi with her husband Larry Rebecchi outside the Measure J office in Hollister, California. (Photo: Sarah Craig/Faces of Fracking/via flickr/cc)

Opponents of fracking scored a handful of victories Tuesday, with voters choosing bans on the extraction process in communities in Texas, Ohio and California.

One of these wins was in the birthplace of fracking—Denton, Texas.

The ordinance prohibiting fracking within the city limits passed 58.64% to 41.36%, making Denton the first city in the state to enact such a ban.

Bruce Baizel, Energy Program Director of the environmental organization Earthworks, said the vote for the ban in Denton was a victory not only for the city but for communities nationwide.

“Denton, Texas, is where hydraulic fracturing was invented. It’s home to more than 275 fracked wells. It’s a place that knows fracking perhaps better than any other. If this place in the heart of the oil and gas industry can’t live with fracking, then who can?” Baizel said in a press statement.

“The answer, at present, is ‘no one.’ That’s why fracking bans and moratoria are spreading like wildfire across the country,” he stated.

While welcoming what she said was a victory for families and public health, Cathy McMullen, President of Frack Free Denton, warned that legal challenges were likely on the way. “Oil and gas industry is going to try to use our own state government against us by directing its paid flunkies to overturn the ban in the legislature,” McMullen stated.

But the “ban is the voice of the citizens of Denton speaking directly to the fracking industry, and local, state and national government: We have had enough.” Pursuing a lawsuit would show that industry and government is “on the side of corporate interests and against the people.”

Athens, Ohio, one of four municipalities in the state where voters faced fracking bans, also saw a victory for opponents of the practice.

The ban, which comes via a Community Bill of Rights, passed overwhelmingly—78.28% to 21.72%.

Jeff Risner of the Athens Community Bill of Rights Committee, which put the measure on the ballot, told the Athens Messenger that the city’s ban, and its wide support, could catalyze other municipalities in the state to push forth with their own bans.

Voters dealt a blow to the fracking industry in California as well, where two counties voted for bans.

In San Benito County, Measure J got the support of almost 57% of voters—despite millions the energy industry spent to defeat it—and marks a victory environmental groups hope can be repeated in other municipalities in the state.

As in Athens, the ban in Mendocino County—which passed 67.18% to 32.82%—comes through a community bill of rights. San Francisco-based Global Exchange, which helped bring forth the measures, called it a historic and huge win.

Global Exchange’s Shannon Biggs, who organized the ballot effort stated: “With the passage of Measure S, residents in Mendocino County made history as the first California community to adopt a Community Bill of Rights, placing their rights above corporate interests. Residents see enactment of this ordinance as the first step in asserting their right to local self-government, and a rejection of the idea that their community will be a sacrifice zone for corporate profits.”

“This is just a beginning for the community rights movement in California,” Biggs stated.

Other fracking opponents say these Election Day victories show the start of a nationwide movement.

“The public tide is turning against fracking, not just in California but around the country,” stated Hollin Kretzmann of the Center for Biological Diversity. “As voters from San Benito to Denton, Texas, showed, if regulators won’t protect them from fracking pollution, local communities can and will use the ballot box to protect themselves.”

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