Archive for July 8th, 2009

Goldman Sachs to be carbon regulator?

July 8, 2009

Sens. Dianne Feinstein (D-CA) and Olympia Snow (RINO-ME) have introduced a bill to make the Commodity Futures Trading Commission the sole regulator of the carbon market created by cap-and-trade legislation.

So does this mean that freebooting Goldman Sachs could be the de facto regulator of the carbon market?

Consider that:

  • The current chairman of the CFTC is Gary Gensler, formerly of Goldman Sachs.
  • Goldman Sachs is a part owner of the exchanges where carbon allowances would be traded.
  • Goldman Sachs has spent millions of dollars lobbying for cap-and-trade legislation in anticipation of making billions of dollars at the expense taxpayers and consumers.
  • Goldman has a special exemption from the CFTC to exceed the trading limits normally placed on commodity speculators. Not only was this exemption secret for 17 years, the CFTC recently had to ask Goldman for permission to release the letter to Congress!
  • Goldman Sachs employees are heavy contributors to the Democratic Party giving it over $4.4. million in the last election. Barack Obama received more than $997,000, Feinstein received $24,250, and Snowe received $17,000 from Goldman. All-in-all, this could result in a pretty decent return-on-investment for Goldman.

As the global warming bubble inflates and then bursts, will Goldman Sachs self-regulate all the way to the bank… making record profits at the expense and misery of taxpayers and consumers?

Can you tell the difference between the CFTC and Goldman Sachs?

Gary Gensler, CFTC Chairman

Gary Gensler, CFTC Chairman

Lloyd Blankfein, Goldman Sachs Chairman

Lloyd Blankfein, Goldman Sachs Chairman

EPA pressuring utilities to switch out of coal

July 8, 2009

EPA officials have suggested to Kansas environmental officials that integrated gasification combined cycle (IGCC) technology be considered as “best available control technology” for the controversial coal-fired Holcomb Power Plant proposed to be built by Sunflower Electric Power Corp.

But this is a thinly-veiled effort by the EPA to apply pressure against the construction of new coal-fired power plants.

IGCC, which involves turning coal into gas before combustion, is an expensive and a not-ready-for-prime-time technology that could force utilities simply to opt out of coal and into natural gas.

An industry source told Carbon Control News,

“If IGCC is going to be considered BACT for coal generation, then you might as well throw in natural gas as well because in both cases you’re using entirely different forms of generation to achieve lower emissions.”

BACT is the EPA standard that must be met for new sources of air emissions.