Category Archives: Environment

The Wonk Salon, November 21, 2011

U.S. Industries Need a “Competitiveness Audit”
Progressive Policy Institute
Local, state and federal government need a “competitiveness audit” of American industries to guide the allocation of economic development resources. Target those industries that have a chance of becoming economically competitive and write off the losers.

New Technologies More Effective than Compact Development at Cutting Greenhouse Gases

Reason Foundation
If your goal is to reduce greenhouse gas emissions, new technologies such as hydrogen fuel cells and plug-in electric cars paired with electricity from hydro-power would accomplish the goal far more cost effectively than mandating more compact development.

South Carolina Colleges Too Expensive, Graduation Rates Too Low
South Carolina Policy Council
Everybody’s applying a critical eye now to state systems of higher education, even South Carolina. The interests of individual institutions outweigh those of the state.

Time to Focus on Community College Graduation Rates
Center for an Urban Future
Community colleges are a key vehicle for upward social mobility, but New York’s are falling short of the potential. Increasing the graduation rate by 10 percentage points could give a $71 million one-year boost to the state and students.

How to Make College More Affordable: Expand Tax Credits
Third Way
College is increasingly unaffordable. So let’s do more of what caused the problem in the first place — increase tuition subsidies, this time through a consolidation and expansion of tax credits.

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What’s McDonnell Up To With Transportation?

By Peter Galuszka

The McDonnell Administration is  taking a chain saw to policies that promote smarter, more efficient growth by axing  reforms to make neighborhoods connected and pushing design contracts that fast-track road construction and discourage public input.

Such are the conclusions drawn from two blog postings by David Alpert of Greater Greater Washington and Jim Bacon, publisher of this blog.

They detail how Gov. Robert F. McDonnell and Transportation Secretary Sean Connaughton are throttling reform-minded policies that recently put Virginia at the forefront of good planning. They are using the Commonwealth Transportation Board (CTB),  a 17-member panel appointed by the governor, as the spearhead to push their ideas on how subdivisions and roads should be built.

According to the Alpert blog, the CTB recently got rid of policies enacted in 2009 that would encourage to build new subdivisions that connect easily to secondary and primary roads. Up until then, planning in Virginia was of the usual 1950s model that erected countless cul de sacs without only a few roads outside the development.

The result forced people into a lifestyle dominated by automobiles that wasted time and gasoline as residents traveled to shop or work and caused more trouble for emergency workers such as police, fire or ambulance drivers trying to respond to a crisis.

Under former Gov. Tim Kaine, the CTB changed the rules in a way that put Virginia ahead of other states in planning concepts by adopting the connectivity policy. The CTB under McDonnell and Connaughton recently dumped the 2009 reforms. Why? My guess is to boost the interests of developers since McDonnell wants to be identified as “pro-business.”

The Bacon post is an investigative look at the controversial bypass of U.S. 29 in Charlottesville. His work was funded in part by the Piedmont Environmental Council but they did not edit the article. Bypass proposals have been contentious because they would tend to exacerbate traffic congestion on what is already the most crowded road in the university city. Business interests, notably manufacturers in cities such as Lynchburg and Danville, want the bypass to improve truck deliveries.

Connaughton’s goal is hastening development of the bypass. So, he pushed a “design-build” contract that is opposed to the way the state usually does construction project. In “design-build,” the contractor is also the designer and designs parts of the project as works goes along. The practice was once considered unethical by professional associations but it is has become widely adopted throughout the country. It can save money and quicken a project’s completion, but it can also lead to overruns and tends to limit public say about how a project looks.

The CTB bought the “design build” idea for the bypass, but according to the Bacon report, Connaughton did not mention that engineers at his own Department of Transportation had serious doubts about the $244 million cost estimates, believing they would run much higher. Their concerns were not reflected in information given to the board which approved the project.

The two excellent blog postings raise serious questions about exactly what McDonnell and Connaughton are doing. The state has just raised billions on the bond market for highway construction and is floating ideas for public-private roads such as a replacement for U.S. 460 in southeastern Virginia.

Connaughton is steamrolling the U.S. 460 highway just as he is on the U.S. 29 bypass. His concept took a hit recently when The Virginian-Pilot reported that a group of Tidewater politicians and business executives lobbied Connaughton to slow down on the road from Suffolk to Petersburg in favor of a third crossing in Hampton Roads, which they believe will do more to alleviate the water-locked region’s notorious congestion. Conaughton responded that the third crossing will cost twice as much as his pet road. There are problems with either plan. A third crossing would only dump traffic on clogged Interstate 64. Replacing U.S. 460 would create more exurban sprawl west of Suffolk, which has been the state’s fastest-growing city.

Playing it both ways as free-spenders and cost cutters, McDonnell and Connaughton are refusing to provide funding for the D.C. Metro Silver Line Phase II project which would help alleviate traffic congestion. And, Connaughton has shown his bare-knuckles management style by firing nearly the entire board of the Virginia Ports Authority in one quick putsch.

McDonnell, however, doesn’t have that much time in office left. What’s behind all of this?

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Save the Bay — with Property Rights

Oysters of the world, property rights are your friend!

Same Chesapeake Bay, two different states…. and two very different fishing industries. Virginia’s fisherman are doing OK, adapting to pollution, over-fishing and oyster-killing diseases. Maryland’s are barely hanging on. Why is Virginia’s doing better? Property rights.

At least, that’s the spin of Rona Kobell, writing for the Reason Foundation in, “Privatizing the Chesapeake.” Maryland has thrown research dollars and regulations at its watermen in the hopes of reviving the oyster industry. Virginia allows its watermen to lease oyster beds, giving them an incentive to steward their precious resource.

It makes a great story, although I would like to see some solid numbers proving that Virginia’s oysters and clams are prospering while Maryland’s are not. Without question, our aquaculture industry is out-performing Maryland’s but I’d like to know how the wild critters are faring.

As an anecdotal sidelight, there is a movement among Virginia bay-front landowners to plant mini-oyster beds in the waters off their property. An acquaintance of mine, a physician in his weekday life, seeds oysters and maintains a bed as a socially beneficial hobby — he’s doing his small part to help oysters regain their former glory. Many of his neighbors are doing the same. If every landowner created oyster beds off their property, it could make a material contribution to the healing of the bay.

– JAB

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McDonnell’s Energy Pep Rally

By Peter Galuszka

One conceit of Gov. Robert F. McDonnell is that he magically wants to transform Virginia into “The Energy Capital of the East Coast.” The idea smacks of Alice in Wonderland.

An example is “The Governor’s Conference on Energy,” that began in Richmond on  Monday. I dropped by today and noted that the conference logo has a map with the state colored red as the aforementioned energy capital. There were the usual fossil fuels — coal, petroleum and natural gas — represented in exhibits along with a fair showing of nuclear power. Scattered here and there were cogeneration and wind turbine possibilities.

A keynote speaker was by Christine Todd Whitman, a former New Jersey governor and head of the U.S. Environmental Protection Agency under George W. Bush from 2001 to 2003. During her tenure, she helped emasculate the agency. She now advocates nuclear power. Despite the Fukushima disaster and the fact that Dominion’s North Anna nuclear plant remains shut down after a 5.8-scale earthquake on Aug. 23, Whitman beat the drum for more nuclear plants.

Coal companies also had a big role, likely because Dominion and American Electric Power, the state’s two largest utilities, have a large coal-fired capacity. And McDonnell is still pushing for oil drilling off the state’s coast despite the Deepwater Horizon disaster and the lack of evidence of any significant deposits.

The favored mix did not sit well with the few environmentalists at the conference. “It’s nuclear, nuclear, coal, coal, gas,” Glen Besa, an official with the Sierra Club told me. In fact, the Sierra Club intends to give a counter
speech favoring non fossil and alternative energy as McDonnell gives his
keynote address Tuesday evening.

There’s more odd about the conference. The “Energy Capital” moniker is a bit of a stretch for one thing. Take coa. The coalfields in far Southwestern
Virginia produce between 30 to 40 million tons a year. Next door, West Virginia produces 144 million tons and Kentucky 96 million tons a year. Total U.S. production is about 1 billion tons, so Virginia’s 40 million tons is rather puny.

Ditto oil. There’s isn’t much in Virginia although there are natural gas wells. Nuclear? In the state are four reactors, two of which are shut down due to the earthquake.

Yet there’s lots of interest in wind, especially offshore where Google plans a big farm and on the Eastern Shore where a turbine test facility is planned. Plenty of wind blows in the mountains near the West Virginia border. McDonnell ought to emphasize wind a lot more than he does.

Another curiosity is that the conference entrance fee was $245 ($50 for students). In  other words, the conference was not intended as an informational session for the general public. Rather, it was a pep rally for well-heeled energy executives who might enjoy the governor’s nonsense about Virginia being the “Energy Capital of the East Coast.”

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Can Japan Keep Pitching?

By Peter Galuszka

(Last of a series)

TOKYO, Japan — “Technology is like water, it runs down hill.”

My old Japanese friend and I are chowing down on delicious fried oysters and sashimi in a downtown Tokyo restaurant. We had just had drinks at the Foreign Correspondents Club Of Japan which offers a spectacular, 20th floor view of  the city, including parts of the Ginza shopping district.

My journalist friend’s comment is at once wistful and annoyed. He’s sick and tired of hearing about the Chinese “miracle” when much of the technology that the Chinese have used is  from Japan, the U.S., Germany or other more advanced nations.

I agree with him. I have been skeptical hearing about the wonders of the Middle Kingdom since it became fashionable when I was a middle-ranking editor on the international desk of a business magazine in New York back in the late 1980s and early 1990s. Although I am not a China hand and know little about the country, I keep noting that for every high speed train, there’s a high speed train crash that the government wants to cover up. Many Chinese products have the taint of intellectual property or brand theft. The miracle of millions of skillful, hard-working laborers churning out products for export doesn’t shed light on one-sided currency exchange rates or the labor conditions in which those products were made.

Not that long ago, Japan seemed to be where it was happening. Back in the 1980s, the buzz was that the Nipponese onslaught was moving from cars and consumer electronics to snapping up choice Manhattan real estate and buying big movie houses, controlling our media.

Alas, the real estate bubble in Japan hit and a “lost decade” of deflation followed. Japan is still staggering from it. Economists faulted the country for not taking enough steps to reconfigure the old “keiretsu” structure of big banks, government organizations and trading agencies all working towards common industrial policy and trade goals. Too slow to change, Japan was trapped and paid the price.

China faces the same pressures. It is, after all, a communist dictatorship that has ultimate say on all political, economic or civil rights issues. The plus is that it can make decisions quickly at least big decisions. It has the finances to build quickly and invest heavily in the U.S. This is an irony for conservative Americans who tout China because they  want to make money from it, but somehow forget that it stands for all of the things they loathe, such as big regulation, government oversight and spending.

My friend and I would like to see a return to the old days when Japan led Asia with close cooperation from Washington. Despite the horrors of World War II, it seemed a natural fit.

That idea, however, unravels the minute I step into a taxi. The drivers are invariably grandfatherly men in black suits and white shirts. They will take credit cards for the ridiculously expensive rides to the hotel. They must bow and hand you scrap after scrap of paper. Ditto trying to find an ATM that will issue a foreigner cash. Most ATMs work only with Japanese banks. And while the subway and train systems are fast and efficient with extremely courteous staff, they seem unnecessarily complex and old. At my mostly-Japanese hotel, when they serve a tasty breakfast buffet, they actually play elevator music from the 1960s, including (believe it or not), Mantovani. I sip my soup listening to “Born Free.”

Indeed, Japan’s biggest problem is not spirit or smarts. It is age. Demographics are against it. Japan has the largest percentage of elderly of any advanced country. About 21 percent of the population is older than 65 years old. It has always been hard for foreign firms to crack the Japanese market, but some now shun it because the population is getting too old. Meanwhile, national champions such as Sony or Toyota seem as ancient as a Madonna CD. In the latter case, a shameful breakdown in quality tarred the once-popular car maker.

Can Japan keep pitching? Can the U.S.? Both long-time allies face similar challenges. My guess is yes, but not until the current Asia set-up
changes once more.

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And the Band Played On

By Peter Galuszka

(Fourth of a series)

FUKUSHIMA, Japan — About an hour and a half north of Tokyo by bullet train,  the city of Fukushima is enjoying a fall festival. A brass band (see photo) belts out tunes while two young policewomen in sky blue uniforms have their pictures taken with children sitting atop their white Honda motorcycles. Jack-o-lanterns, Japanese-style, dot posters. Doting grandparents shoot pictures of their grandchildren riding a miniature steam train.

There’s little evidence that one of the worst nuclear disasters ever occurred last March 11 not 36 miles away on a rocky stretch of Pacific coastline. The meltdown of three nuclear reactors at the Daiichi power plant was the worst accident since Chernobyl and caused the deaths of more than 45 people, the evacuations of 130,000 and may cause untold future cancer illnesses and fatalities.

The only new information, as a friendly Fukushima resident shows me, is a newspaper article showing the radiation zones in a newspaper article. The most intense zone runs about 20 kilometers from the power station, including parts out to sea.

It is the worst zone. Gamma rays, that can penetrate anything except lead, are prevalent. The zone includes all or part of eight local jurisdictions. Extending another 10 kilometers out in another zone, land and buildings are somewhat less irradiated but still cannot be occupied. There are roadblocks on all roads leading into these zones.

The newspaper articles purports to outline just how many houses and other properties there are in these restricted zones and how  much people can expect to be compensated for them. I haven’t done an exact count but they appear to be between 5,000 and 10,000. People from the houses are living in temporary shelters with with families or friends elsewhere.

One would never know it from the pleasantries in the downtown of Fukushima city, but the nuclear disaster has serious implications on a global, as well as local, basis. Concerns about global warming had been pushing sentiment in favor of nuclear power as opposed to coal, but that’s shifted back again. The United Bank of Switzerland says that the Japanese mess may result in the closing of 30 other nuclear reactors around the world. In Germany, Chancellor Angela Markel said her country would shut down its reactors. German engineering conglomerate Siemens announced it was getting out of the nuclear business. China, on the other hand, intends to expand its nuclear generation capacity to offset its 70 perent reliance on coal.

Back in Virginia,  the region got a taste of Fukushima on Aug. 23 when a 5.8 Richter scale earthquake, much smaller than  the tsunami that touched off Fukushima’s nuke disaster but still unexpectedly strong, jarred the North Anna nuclear plant operated by Dominion Virginia Power. It forced a shutdown of two reactors while heavy casks of spent nuclear where shaken loose. A review by the Nuclear Regulatory Commission shows that perhaps 25 other nuclear reactors may need new earthquake safety upgrades.

If you get a map of Virginia and plot the same evacuations zones as at Fukushima, you likely would see the evacuations for weeks, months or years of all or parts of Fredericksburg, Culpeper, Charlottesville and the far western Virginia suburbs of Richmond near Manakin Sabot. These would be roughly a 30 kilometer zone — not the very worst, but still requiring evacuation.

Fukushima and North Anna also raise serious questions about another Old Dominion project realted to nuclear power. A small group of investors and Canadians called Virginia Uranium plans on mining reserves near Chatham. But if the mood is so against nuclear power, one wonders just how demanding the market for yellowcake is.

It is anyone’s guess who would pay for the irradiated property in Japan although Munich Re, the reinsurer in the case of Fukushima, says that covering the disaster can be done successfully.

Costs such as these, whoever, must be kept in mind should nuclear power still proceed. Financial discipline, naturally is the flavor of the times given the current  backlash against government spending. Yet that also dooms nukes. Dominion, for instance, requires federal loan guarantees if it wants to proceed with a third unit at North Anna which is likely to cost more than $10 billion. Fat chance of getting it, at least now.

Meanwhile, on Oct. 15, the New York Times reported that about 20 “hot spots” of radioactivity, some with Chernobyl-level amounts, had been found in Tokyo, 160 miles to the south of Fukushima. Government officials had stubbornly claimed that the contamination was limited to the zone near the stricken plant, but now it seems that the situation is much worse than thought.

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The Old Boy’s Still Around

By Peter Galuszka

(first of a series)

BEIJING, China — Red and gold emblems flap around Tiananmen Square in celebration of 62 years of the People’s Republic of China. This holiday, the sprawling square area is thronged with Chinese families of all ages on this warm and sunny fall afternoon.

I am here on a book research trip that will take me into three Asian nations. Of the three, China holds the spotlight as the coming thing. It’s been the coming thing since the 1980s when Deng Xiaoping turned more than three decades of Maoist central planning on its head and started market reforms. A combination of  pent-up entrepreneurial zeal that’s part of the Chinese DNA and a huge, young population soon sparked double-digit GDP growth rates that started to slow from 11.9 percent in 2010 to 9.7 percent only this year.

The results are stunning. The capital boasts of new buildings, clean streets, an efficient subway system, and luxury stores and restaurants. Growth is concentrated in coastal areas, such as Guangzhou and Shanghai where I stopped first to pick up my wife who is spending the year teaching there. Conventional wisdom has it that with its wealth and growth levels, China is fast eclipsing the United States as the world’s leading power — a view that my otherwise pleasant French Canadian seat mate mentioned as many as five times on the flight over from the states.

Shanghai is likewise a shiny jewel of Chinese modernity, shinier even than Beijing. Its riverfront skyscrapers soar high. Everywhere, gigantic flat screen televisions and LED lights flash out new light architecture. One example of this almost obscene longing for western-style commercialism is Wu Jiao Chang, a square that just got a new subway stop last year. At least four huge, multi-level shopping malls surround the square. Its focal point is a passenger rail line running through the center that has cladding shaped like a giant dirigible covered by thousands of tiny, color-coordinated flashing LED lights.

“People in Shanghai don’t seem to want anything more than eat, shop and have their hair done,” my wife says. Her words echo those of French philosopher Jean Paul-Sartre who once said: “Hell is all the people at a Shanghai department store at the same time.”

The mass-overconsumption so complained about on this blog is in full throttle in China’s big cities. Does it mean true modernity and western values? Not at all.

For an example, let’s go back to Beijing. We stayed at a no-star Chinese hotel near the massive airport because we had an earlier morning flight and couldn’t handle morning traffic. It wasn’t anything we couldn’t handle after years in the former Soviet Union, but it was tucked away in what you might think of as the real China. Garbage lay on the steps of the little eateries and hair dressers in a little strip mall that seemed destined soon for bulldozers. I needed the Internet to get in touch with Expedia.

I ended up in an “Internet cafe” up the dirty stairs of a building. The room was filled with 60 or more terminals with young Chinese playing Net games at some. But you don’t just sit down and boot up. You have to go to the bar where a man examines your passport and writes down all pertinent information for the police. The Net is tightly restricted since the Communist government fears the kind of Twitter-based backlash that this year brought down regimes in Egypt and Tunisia and probably Libya.

I sat down at an ancient Acer desktop with a keyboard that has been through several iterations of rebuilding. The keys are alternately black and red. It’s slow and pokey. A scary thought goes through my head: Do I want to put my Expedia personal data on this? Hell no.

I remember a Wall Street Journal story from earlier this year reporting that Chinese governments officials allegedly hacked hundreds of Google email accounts. The hacking was tracked to the People Liberation Army’s technical reconnaissance bureaus in the city of Jinan. This Big Brother approach is reminder of just how much China hasn’t changed, despite the glittering lights.

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The Wonk Salon, September 24, 2011


The Impact of Minimum Wage on Somoa, Marianas
Government Accountability Office
Increases in the minimum wage have devastated the tuna cannery industry in Somoa but has been less of a factor in the tourism-based economy of the Northern Mariana Islands.

L.A. Gang Reduction Program Is Helping
Urban Institute
A drop in gang-related crime was evident before the Gang Reduction and Youth Development Program was launched, but the program appears to have accelerated the decline.

The Declining Impact of Extreme Weather Events
Reason Foundation
Global warming be damned. Aggregate mortality due to all extreme weather events globally — droughts, storms, floods and extreme heat — has declined by 90% over the past century in spite of a four-fold rise in population.

Empower States to Regulate Gas Drilling
Heritage Foundation
The feds should not hamper development of the country’s plentiful natural gas reserves. Let the states deal with environmental issues.

Creating Jobs by Conserving Public Lands
Center for American Progress
Conservation of public lands supports 388,000 jobs in recreation, tourism, renewable energy, restoration and landscape restoration.

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Back to the Future

By Peter Galuszka

Virginia’s “no tax” governor is on his way to sticking the state’s motorists with a tax by another name.

Robert F. McDonnell has won preliminary federal approval to stick drivers with a toll of from $2 to $4 on parts of Interstate 95 supposedly to help the cash-starved state fund “safety” improvements. The last time Virginia had a toll on I-95 was in 1992 when they were finally ended between Richmond and Petersburg.

A few problems with his plan. First, it is hugely out of character for a Republican governor with national ambitions who tries to keep in vogue with the “no tax” mantra of his GOP colleagues. A toll is a tax.

Second problem: McDonnell is most likely to place the tax on parts of I-95 that are the least traveled. Toll booths could be stuck at the North Carolina border and then again at Massaponax just south of Fredericksburg. Daily volumes  are 40,000 vehicles a day around the Ta Heel line and about 145,000 a day near Fredericksburg.

Road use is much higher in the D.C. area, namely 215,000 cars a day at the Springfield interchange in Northern Virginia. So if you are really going to stick it to the motorists and rack up some cash, why not put the tolls where there are the most cars?

The answer is that McDonnell doesn’t have the guts to annoy Northern Virginia drivers. My guess is that this is the advice that Secretary of Transportation Sean Connaughton, McDonnell’s in-house Cardinal Richelieu, gave him. If you want your tolls put them where the people with the least political clout have to endure them, namely, the folks who live in the rural, less affluent areas of Southside.

Plus, Yankees, ahem Northerners, running their vans up and down 95 to see grandma in Florida or go to Disney World don’t vote in Virginia and are used to paying tolls on the New Jersey Turnpike. Don’t even bother to think about the North Carolinians. Years ago, being from the Tar Heel state could bring a jail sentence in a Richmond court.

The McDonnell interstate tax would generate a mere $30 million to $60 million a year. That’s pin money when the state’s transportation needs are $20 billion.

This troubling news comes just as federal cutbacks could kill the highly-successful Amtrak train from Lynchburg to Washington passenger train. In fact, 60 percent of Amtrak service in the state would end.

Meanwhile, let’s hope McDonnell’s toll idea goes the way of his plans to privatize liquor stores and drill for offshore oil.

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The Wonk Salon, September 18, 2011

Feds and State Must Cooperate to Save the Bay
Government Accountability Office
The federal government is basing its save-the-bay policy on The Strategy for Protecting and Restoring the Chesapeake Bay Watershed. State policy is based upon Chesapeake 2000 Agreement. Feds and states need to get on the same page.

Denser Cities Mean More Concentrated Pollution
Heritage Foundation
Densification of cities will not reduce air pollution. Even if it reduces automobile traffic overall, it concentrates that traffic in a smaller geographic area. Pollution is worse in the densest cities, not better.

Statewide Smoking Bans: Not Much Effect on Heart Attacks
Journal of Community Health
Statewide smoking bans have no measurable effect on the incidence of heart attacks. (Cancer is quite a different matter!)

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