Friday Five: July 25, 2014

We hear politicians rail against regulation and how much it can harm business. I think we forget that we are a "nation of laws, not men" and that regulations play an important role in expressing our communal desires. We organize businesses to get things done with the least risk possible, and having an equally robust definition of what we will accept as a country and society does nothing to impair that...in fact, without it, business will not always do what is in the best interest of the people.
Proposed oil train safety rules include lower speeds, improved braking
"In any case, the outcome is likely to force the retirement of at least 35,000 of the nation’s estimated 98,000 tank cars that haul flammable liquids, according to Brigham McCown, former chief of the Pipeline and Hazardous Materials Safety Administration.
In addition to the tank-car standards, the regulations would impose new speed restrictions on trains carrying crude. One option would reduce oil train speeds to 40 mph nationwide, while two others would impose limits only in certain urban areas. The speed limits could broadly affect all freight movements because the oil trains would effectively hold back other traffic, rail experts have said."

No one would accuse Germany - with all of its regulation and popular expression of the role of business and government - of being an inefficient economy that delivers a low quality of life. In fact, with the same global economic constraints, it has pushed forward on both improved quality of life and improved economic footing.
Study ranks Germany as the world's most energy efficient economy
"On a more serious note, Ackermann added that Germany is proud of its efforts to improve energy efficiency and lower its carbon footprint – all while growing its economy. "We all agree, I think – the cheapest energy in the energy you don’t have to produce in the first place. Our long term goal is to fully decouple economic growth from energy use," he said."

We see the worst of this clash of business and community will play out in the small towns most hit by the franking boom. Through every manner of pandering and strong-arming, companies are trying to work their way around the will of the people to not have fracking fields in their backyard. If government were not available as a tool to help give these people voice, how would they defend themselves?
Living next to natural gas wells is no fun
"Colorado has relatively stringent requirements for air quality reporting, but they rely on companies to do the reporting themselves. There is also the issue of access to the wells, which of course the gas companies do not grant to independent researchers. Nonetheless, a 2012 study by the University of Colorado-Denver School of Public Health found VOCs in Garfield County five times above the EPA’s Hazard Index level."

The only time we really understand the benefit of robust, enforced, and reasonable regulation is when a disaster strikes. Do we need another Texas chemical factory to explode, or another North Dakota train derailment, or a Three Mile Island failure to remind us that oversight that has both the capability and the strength to match up with business actually makes our lives...and business for that matter...better.
US nuclear power agency still playing with fire
"Beginning in the early 1990s, studies revealed that some types of material used for electric cable insulation, called fire wraps, did not meet the 1980 standard's requirement to withstand a fire lasting as long as three hours. To compensate, many plant owners began to use measures -- particularly what the industry calls 'manual actions' -- that the NRC had not approved or authorized. For example, if a fire damaged primary and backup system cables, the plant would dispatch workers to manually turn on pumps, close valves, or take whatever steps necessary to control the situation. NRC regulations permit manual actions, but only when they have been formally reviewed and approved on a case-by-case basis."

Now is the time to have a debate about the role energy will play in our lives, and specifically the institutions we have enshrined in law to deliver energy to our lives. They have outlived their usefulness in the current model, and if we do not act soon, we will be left behind in the world economy.
Dismantling the utility model is the fastest path to a cleaner electricity infrastructure
"Utilities have come under increasing pressure from constituents, customers, and politicians in recent decades. Grueling battles are fought over how fast to reduce the industry’s air pollution, how much to spend to reduce water use, what generation plants should be built, and how progressive utility rates should be. Many of these issues have migrated from the states to Washington for resolution, and national politicians find themselves in increasingly uncomfortable and untenable positions."

Happy Friday!

Scott Morgan/AP