Glimpse at a Costly Energy Future from Nebraska

It is simply mystifying how assorted elected officials relentlessly push public policy measures that inevitably raise energy costs for consumers, entrepreneurs and businesses.

The latest example comes from Nebraska. Governor Kathleen Sebelius (D) apparently is set on waging war against coal-generated electricity.

An April 4 Wall Street Journal editorial – “The ‘No, Nothing’ Democrats” – is right on target. The Journal explained:

Governor Kathleen Sebelius calls it "a moral obligation," as though she were opposing crimes against humanity. This is a reference to coal companies guilty of nothing more than attempting to provide power to consumers. But their misfortunes include emitting carbon dioxide into the current political atmosphere, and also the presence of Ms. Sebelius, who recently invented another way of enacting her preferred global-warming policies without legislation.

No one disputes that Kansas needs more baseload energy capacity to meet growing demand, especially at peak times and in the more rural west. In 2006, Sunflower Electric proposed to add two new generators to one of its existing coal facilities. The plans met or exceeded every federal and state air-quality and environmental regulation, and included the latest pollution control technologies.

But in October, one of Ms. Sebelius's cabinet secretaries, Roderick Bremby, denied Sunflower its permits. Using "emergency" discretion, he creatively ruled the expansion an imminent danger to the public – because the estimated 11 million tons of greenhouse gases it would emit each year might contribute to climate change. It was the first time ever that such reasoning formed the sole basis for blocking a power project; and, in the absence of any state laws relating to carbon control, it amounted to a public policy putsch.

The editorial goes on to note that the state legislature passed a measure fixing this mess, but Sebelius vetoed the measure.

The Lawrence Journal-World reported on April 3:

The Kansas Senate today voted to override Gov. Kathleen Sebelius’ veto of a bill that would allow the construction of two coal-fired power plants in southwest Kansas. The vote was 32-7 — five votes more than the 27 votes, or two-thirds majority in the 40-member Senate needed to overturn a veto…

The effect of the veto override, however, was cloudy. There are still not enough votes in the House to overturn the veto. Instead, House Speaker Melvin Neufeld, R-Ingalls, is trying to put together a veto-proof margin on a similar bill. That would require 84 votes in the 150-member House.

Nebraska House action is scheduled for today (April 4).

If the Sebelius action holds, it would be bad for consumers and businesses in Nebraska, who need more affordable energy. It’s also a national concern. As the Journal wrote: “Ms. Sebelius joined the green regulatory lobby that wants to unilaterally classify CO2 as an ‘air pollutant,’ though it has none of the qualities that have always defined the term under federal or state law. Her effort is also an opening charge for a national moratorium on new coal plants, which is backed by the likes of Democrats Harry Reid, Ed Markey and, needless to say, Al Gore.”

Here is another case of energy and environmental policies being generated with absolutely no regard for the dire economic effects.