Category Archives: Regulation

Dave Brat’s Bizarre Statements

 By Peter Galuszka

Almost a year ago, Dave Brat, an obscure economics professor at Randolph- Macon College, made national headlines when he defeated Eric Cantor, the powerful House Majority Leader, in the 7th District Brat Republican primary.

Brat’s victory was regarded as a sensation since it showed how the GOP was splintered between Main Street traditionalists such as Cantor and radically conservative, Tea Party favorites such as Brat. His ascendance has fueled the polarization that has seized national politics and prevented much from being accomplished in Congress.

So, nearly a year later, what has Brat actually done? From reading headlines, not much, except for making a number of bizarre and often false statements.
A few examples:

  • When the House Education and Workforce Committee was working on reauthorizing a law that spends about $14 billion to teach low-income students, Brat said such funding may not be necessary because: “Socrates trained Plato in on a rock and the Plato trained Aristotle roughly speaking on a rock. So, huge funding is not necessary to achieve the greatest minds and the greatest intellects in history.”
  • Brat says that the Affordable Care Act (Obamacare) is a step towards making the country be more like North Korea. He compares North and South Korea this way:  “. . . it’s the same culture, it’s the same people, look at a map at night, half the, one of the countries is not lit, there’s no lights, and the bottom free-market country, all Koreans is lit up. See you make your bet on which country you want to be, right? You want to go to the free market.” One problem with his argument:  Free market South Korea has had a single payer, government-subsidized health care system for 40 years. The conservative blog, BearingDrift, called him out on that one.
  • Politifact, the journalism group that tests the veracity of politicians’ statements, has been very busy with Brat. They have rated as “false” or “mostly false” such statements that repealing Obamacare would save the nation more than $3 trillion and that President Obama has issued 468,500 pages of regulations in the Federal Register. In the former case, Brat’s team used an old government report that estimated mandatory federal spending provisions for the ACA. In the latter case, Politifact found that there were actually more pages issued than Brat said, but they were not all regulations. They included notices about agency meetings and public comment periods. What’s more, during a comparable period under former President George W. Bush, the Federal Register had 465,948 pages, Politifact found. There were some cases, however, where Politifact verified what Brat said.
  • Last fall, after Obama issued an executive order that would protect up to five million undocumented aliens from arrest and deportation, Brat vowed that “not one thin dime” of public money should go to support Obama’s plan. He vowed to defund U.S. Citizen and Immigration Services but then was told he couldn’t do so because the agency was self-funded by fees from immigration applications. He then said he would examine how it spent its money.

The odd thing about Brat is that he has a doctorate in economics and has been a professor. Why is he making such bizarre, misleading and downright false statements?

Pulitzer-Winning Series Exposed Richmond Firm

HDL LogoBy Peter Galuszka

There’s been plenty of discussion about the evils of rising health care costs, but unfortunately, one only hears of government wrong-doing.

Private industry actually spearheads a lot of the price gouging — sometimes with government complicity.

And it just so turned out that a high-flying Richmond firm — Health Diagnostic Laboratory  — was at the heart of a scandal that involved ripping off the Medicare program.

The Wall Street Journal on Monday was awarded a Pulitzer Prize for investigative reporting for exposing Medicare fraud. As a result of a front-page story published last Sept. 8, Tonya Mallory, the chief executive and co-founder of HDL, resigned. A few weeks ago, HDL was fined $47 million (while admitting no wrongdoing) after  their Sept. 8 story last year, for paying doctors kickbacks to use their blood tests.

The Journal broke the story after a court battle. It fought to lift a 33-year-old injunction that kept private data regarding Medicare patients. Once the data floodgates were opened, reporters pieced together all kinds of juicy information about health care firms, including HDL.

I have the story here on my “The Deal” blog in Style Weekly.

The upshot? Unlike what you often read on this blog, the problems of rising health care costs may not exactly be government sloth and inefficiency. It can be the private sector gaming the system to their benefit.

Non-Coal Jobs Thriving in Energy Sector

Coal MinersBy Peter Galuszka

Is there a real “War on Coal” or is it part of a natural transition to more non-polluting and less destructive forms of energy? One way to find out is to track job creation.

A new study at Duke University shows that since 2008, more than 49,000 jobs in the coal industry have been lost. But, about 196,000 jobs – or four times as many – have been created in other energy sectors such as natural gas, solar and wind.

The study suggests that all the gnashing of teeth that President Obama and the U.S. Environmental Protection Agency are out to ruin the energy sector by killing off coal may be off base.

This has been the cry of Virginia’s utilities, and its few coal firms, along with some members of the business establishment that the EPA’s proposed Clean Power Plan to encourage cuts in carbon dioxide by 2030 are unworkable and too threatening to employment in the coal industry since some coal-fired power plants are likely to be shut down. (Of course, some of them have been in operation for 60 years, but never mind).

Overlooked is that as coal jobs die, more energy jobs have been created in natural gas thanks to hydraulic fracking and in renewables like solar and wind which are getting increasingly cheaper.

“Our study shows it has not been a one-for-one replacement,” says Lincoln Pratson, a Duke professor of earth and ocean sciences who is one of the report’s authors.

Hardest hit are the coalfields of southern West Virginia and eastern Kentucky. Small wonder. The coal is of excellent quality but easy-to-reach seams have been mined out and abundant shale gas has undercut its price power. Coal has also taken hits in Utah, the Powder River Basin of Wyoming and Montana, and Colorado. The biggest job increases are in the Northeast, Southwest, Midwest and West.

Where does Virginia fit in with renewables? Hardly anywhere just yet. Its neighboring states are much farther along. One reason is they have mandatory renewable portfolio standards to force shifts to wind and solar. Even coal-heavy West Virginia had mandatory standards although the legislature just dumped them.

Virginia is just gearing up with solar. As for wind, Dominion has plans for two turbines off Virginia Beach.

Remarkably, this vision of non-coal energy jobs growing four times the amount of coal jobs cut is left out of the debate as Dominion gets the General Assembly to freeze electricity rates and forego State Corporation Commission audits for several years on the theory that it doesn’t know what the EPA will do about carbon dioxide reduction.

And, to show you how bizarre the coal people are, and appeals court in the District of Columbia is ready to shoot down a coal-led attack on the EPA’s carbon rules. Among the plaintiffs is Robert Murray, the iconoclastic CEO of Murray Energy which has been picking up West Virginia coal properties from long-time operator Consol, which obviously is happy to unload them

During the 2012 presidential race, Murray ordered his workers to attend a rally for Mitt Romney under threat of firing. He insists that Obama is trying to put him out of business.

One problem the appeals judges have with his lawsuit is that the rules are only proposed rules. They are not official. EPA is asking for comment by this summer show it can make adjustments. So why is Murray suing?

It would be as if I were to sue Jim Bacon for an idea he might be envisioning. I know it’s a tempting idea, but it would be silly.

The Duke report was published in the peer-reviewed journal, Energy Policy.

Amateur Hour at the General Assembly

virginia_state_capitol502By Peter Galuszka

If you are an ordinary Virginian with deep concerns about how the General Assembly passes laws that impact you greatly, you are pretty much out of luck.

That’s the conclusion of a study by Transparency Virginia, an informal coalition of non-profit public interest groups in a report released this week. Their findings  came after members studied how the 2015 General Assembly operated.

Among their points:

  • Notice of committee hearings was so short in some instances that public participation was nearly impossible.
  • Scores of bills were never given hearings.
  • In the House of Delegates, committees and subcommittees did not bother to record votes on 76 percent of the bills they killed.

“Despite a House rule that all bills shall be considered, not all are. Despite a Senate rule that recorded votes are required, not all are,” states the 21-page report, whose main author is Megan Rhyne, executive director of the Virginia Coalition for Open Government. Transparency Virginia is made up of 30 groups, including the American Civil Liberties Union, NARAL Pro-Choice Virginia, the the Virginia Education Association and the League of Women Voters in Virginia.

The scathing report underscores just how amateurish the General Assembly can be. It only meets for only 45 days in odd-numbered years and 60 days in even-numbered years. The pay is pin money. Delegates make only $17,640 a year and senators earn $18,000 annually.

It is not surprising then that a part-time group of 100 delegates and 40 senators can’t seem to handle their 101 committees and subcommittees that determine whether the consideration of thousands bills proceeds fairly and efficiently.

“A Senate committee chair did not take comment on any bills on the agenda except for the testimony from the guests of two senators who were presenting bills,” the report states. In other cases, legislators were criticized by colleagues for having too many witnesses. Some cut off ongoing debate by motioning to table bills. Bills were “left in committee” never to be considered.

The Virginia Freedom of Information Act requires that open public meetings be announced three working days in advance. A General Assembly session is considered one, long open session. But the FOIA is often subverted by sly legislators who manipulate the agendas of committees or subcommittees or general sessions.

Agendas of the General Assembly are not covered by the FOIA because there is too much work to cram in 45 or 60 days. In the case of local and state governments, similar meetings are, presumably because they meet more regularly. House and Senate rules do not stipulate how much notice needs to be given before a committee or subcommittee session. So, crucial meetings that could kill a bill are sometimes announced suddenly.

The setup favors professional lobbyists who stand guard in the Capitol ready to swoop in to give testimony and peddle influence, alerted by such tools as “Lobbyist-in-a-Box” that tracks the status of bills as they proceed through the legislature. When something important is up, their beepers go off while non-lobbyist citizens with serious interests in bills may be hours away by car.

The report states: “While most of Virginia’s lobbyists and advocates are never more than a few minutes from the statehouse halls, citizens and groups without an advocacy presence may need to travel long distances.” Some may need to reschedule work or family obligations, yet they may get only two hours’ notice of an important meeting. That’s not enough time if they live more than a two-hour drive from Richmond.

The report didn’t address ethics, but this system it portrays obviously favors lobbyists who benefit from Virginia’s historically light-touch approach when it comes to limited gifts. That issue will be addressed today when the General Assembly meets to consider Gov. Terry McAuliffe’s insistence that a new ethics bill address the problem of allowing consecutive gifts of less than $100 to delegates or senators.

The only long-term solution is for Virginia to consider creating a legislature that works for longer periods, is better paid, more professional and must adhere to tighter rules on bill passage. True, some 24 states have a system somewhat like Virginia and only New York, Pennsylvania and California have truly professional legislatures.

The current system was created back in Virginia was more rural and less sophisticated. But it has grown tremendously in population and importance. It’s a travesty that Virginia is stuck with amateur hour when it comes to considering legislation crucial to its citizens’ well-being.

The Fifth Anniversary of Upper Big Branch

A memorial to the Massey Energy miners at Upper Big Branch

A memorial to the Massey Energy miners at Upper Big Branch

By Peter Galuszka

Five years ago this morning, miners near Montcoal, W.Va. clambered into low, truck-like vehicles called “mantrips” for a nearly-hour-long ride to their positions at Upper Big Branch, a coal mine owned by a subsidiary of Richmond-based Massey Energy.

Some of the miners were queasy because the mine, known as UBB, was especially gassy, had substantial air ventilation problems and lots of coal dust. Even worse, the chief executive of Massey Energy, Donald L. Blankenship, was known as a hard-charging bean counter who liked to cut corners and maximize profits, investigators say.

As the shift neared its end, a “long wall” machine that rips into coal seams hit a clump of slate. Sparks flew from the badly-maintained long wall device. A jet of methane flame about the size of a basketball flared out. Safety measures, such as streams of waters designed to extinguish such flames, didn’t work. As miners scrambled for their lives, an enormous blast, fed by high levels of coal dust, roared through seven miles of shafts, blowing apart or suffocating 29 miners.

It was the worst disaster in this country in 40 years. Several investigations gave scathing reports of Massey’s lax attitude about mine safety. One report was titled “Industrial Homicide.”

So what’s been done to improve mine safety lives? Not very much.

Federal legislation such as the Robert C. Byrd bill that would give federal regulators subpoena power when probing safety violations has gotten nowhere in Congress.

Worried about slumps in coal production caused by as flood of natural gas from fracking drilling methods, the West Virginia legislature has come up with the “Creating Coal Jobs and Safety Act.” You read that right. The bill puts “jobs” first and “safety” second.

As W.Va. Del. Barbara Fleischauer of Monongalia County puts it: “There’s not anything in this bill that improves safety, nothing. And I can’t believe, after all the fires and explosions we’ve had in this state, recently, we would, and you know what they are; Upper Big Branch, Aracoma, Sego, that we would ever consider rolling back safety protections.”

The Associated Press reports that while mine deaths are down, thanks because of the competition against coal by natural gas. Mine inspections spiked after UBB and accidents, while they still occur, are down.

But, the AP says, the coal dust problem hasn’t been resolved. Massey had been fined continuously for not keeping levels of coal dust low. There was so much coal dust in the mine that autopsies of dead miners (at least the ones that had enough long tissue that could be recovered after the massive blast) all showed evidence of black lung disease, which was supposed to have been rooted out years before by regulatory upgrades.

Coal dust problems are still evident. In January, federal officials found excess methane and coal dust at Mill Branch Coal Corp’s Osaka mine in Wise County, Va. Another mine, Camp Creek in Wayne County, W.Va., had been cited 64 times in the last two years for failing to follow ventilation plans. And, a miner was recently killed at a showcase Virginia mine.

What do these mines have in common? They are owned by Bristol-based Alpha Natural Resources, which bought failing Massey Energy in 2011 for $7 billion. Alpha tried to absorb Massey miners and retrain them in its “Running Right” safety program, but it obviously has lingering problems.

Alpha has been lying off many miners because of the production downturns and lack of demand for both steam and metallurgical coal. After enduring millions of dollars in losses, its stock has trading at a dollar and a penny. Cash short Alpha has had to sell its new headquarters building just off of Interstate 81 in the Bristol area.

Blankenship, meanwhile, is slated to go on trial for criminal charges related to UBB in Beckley W.Va. on April 20. It is the first time a coal chief executive has been so indicted. Blankenship’s lawyers are trying to get a change of venue, claiming that he is so well-known and disliked in southern West Virginia that he can’t get a fair trial. For a time, he won a gag order preventing anyone, including families of the deceased UBB miners, from discussing the trial but it was overturned by the U.S. Fourth Circuit Court of Appeals in Richmond.

His trial may be delayed, but it won’t be much of a victory. Alpha Natural Resources, meanwhile, is refusing to pay his legal bills.

Note: Peter A. Galuszka is author of “Thunder on the Mountain: Death at Massey and the Dirty Secrets Behind Big Coal.” It was first published by St. Martin’s Press in September 2012 and is now available in paperback from West Virginia University Press.

 

A New, Improved Ken Cuccinelli?

ken-cuccinelliBy Peter Galuszka

Is one-time conservative firebrand Ken Cuccinelli undergoing a makeover?

The hard line former Virginia attorney general who lost a bitter gubernatorial race to Terry McAuliffe in 2013 is now helping run an oyster farm and sounding warning alarms about a rising police state.

This is remarkable switch from the man who battled a climatologist in court over global warming; tried to prevent children of illegal immigrants born in this country from getting automatic citizenship; schemed to shut down legal abortion clinics; tried to keep legal protection away from state gay employees; and wanted to arm Medicaid investigators with handguns.

Yet on March 31, Cuccinelli was the co-author with Claire Guthrie Gastanaga, executive director of the American Civil Liberties Union of Virginia of an opinion column in the Richmond Times Dispatch. Their piece pushes bipartisan bills passed by the General Assembly that would limit the use of drones and electronic devices to read and record car license plate numbers called license plate readers or LPRs.

Cuccinelli and Gastanaga say that McAuliffe may amend the bills in ways that would expand police powers instead of protect privacy. “The governor’s proposed amendments to the LPR bills gut privacy protections secured by the legislation,” they write. The governor’s amendments would extend the time police could keep data collected from surveillance devices and let police collect and save crime-related data from drones used during flights that don’t involve law enforcement, they claim.

When not protecting Virginians from Big Brother, Cuccinelli’s been busy oyster farming. He has helped start a farm for the tasty mollusks on the historic Chesapeake Bay island of Tangier. According to an article in The Washington Post, Cuccinelli got involved when he was practicing law in Prince William County after he left office.

He would visit the business and get roped into working at odd jobs. He apparently enjoyed the physical labor and the idea that oysters are entirely self-sustaining and help cleanse bay water.

Environmentalists scoff at the idea, noting that as attorney general, Cuccinelli spent several years investigating Michael Mann, a former University of Virginia climatologist who noted that humans were responsible for the generation of more carbon dioxide emissions and that has brought on climate change.

Some have pointed out that if Cuccinelli had had his way, he would have helped quash climate science, generated even more global warming and sped up the inundation of Tangier Island by rising water levels.

It will be interesting to see if Cuccinelli intends to rebrand himself for future political campaigns and how he tries to reinvent himself.

Dead End for Virginia’s Higher Ed Tuition Model

Peter Blake... an establishment perspective but a thoughtful one.

SCHEV chief Peter Blake: an establishment perspective but a thoughtful one.

by James A. Bacon

The tuition model of public Virginia colleges and universities is evolving. In the old model the state made college attendance more affordable to everyone more or less equally by providing financial support to each public institution. In the new model, institutions make attendance affordable for lower-income Virginians by raising tuition and then offsetting it with financial aid.

In the 1990s, the General Assembly set a goal of covering two-thirds the cost of providing an undergraduate, in-state education, and consistently managed to hit the target, Peter Blake, executive director of the State Council for Higher Education in Virginia (SCHEV), told me last week. As recently as the 2001-2002 school year during the Gilmore administration, the state share rose as high as 77%.  Since then, that percentage has steadily eroded. This year state support covers only 47%.

Tightening state support for higher ed may be understandable, given the relentless spending pressures the General Assembly faces on all fronts. But there are consequences. Colleges and universities offset the loss of state revenue by raising tuition and fees. Then, because lower-income students find the higher charges unaffordable, university boards raise tuition again to set aside funds for financial aid. Middle-income students lose because they wind up paying more. Even lower-income students lose in the bargain because the financial aid lags the tuition.

The University of Virginia and the College of William & Mary can get away with increasing tuition aggressively: Demand for admittance is so high that people are willing to pay. But less prestigious institutions run into the harsh realities of the marketplace. They can’t raise tuition without losing students and their overhead is resistant to cost cutting. The finances of many institutions is precarious.

“I worry about a financial aid model that relies upon individual institutions,” said Blake. Some institutions will be able to provide aid, others won’t. The results, he said, will be “uneven.”

What’s to be done? It’s easy to say we should increase state support. But higher ed competes with K-12, Medicaid, transportation, prisons, mental health, pensions and other priorities. Every category of spending faces its unique challenges that warrant more state spending. And taxpayers, battered by stagnant incomes, aren’t especially receptive to higher taxes.

In theory another option is to give colleges more independence from state oversight and regulation. That was a deal that UVa, W&M and Virginia Tech struck in exchange for reduced state support several years ago. Freedom from state regulation, it was thought, would give them more flexibility by shortening the decision-making loop.

But Blake doesn’t think that there’s much more to gain from deregulation. “Virginia’s system is so decentralized,” he said. “How much regulatory relief can there be?” Control from Richmond is minimal, he said. Each university is self-governing; it has its own board of visitors. A primary function of SCHEV, he could have added, is to avoid unnecessary duplication and redundancy within the state higher-ed system. As the main instrument of state control, SCHEV acts to restrain spending and costs, not to increase them.

How about administrative bloat? Blake said there are good reasons that administrative costs have increased — usually in response to some perceived societal need such as economic development, community engagement or racial and gender equity. He sees no easy cuts to be made.

Toward the close of our conversation, Blake made an unexpected observation. If judged by growth in enrollment, he said, the most successful institution in Virginia is Liberty University, the institution founded by deceased televangelist Jerry Falwell, Not only is its Lynchburg campus growing, its online learning program is exploding. Liberty, which caters to evangelical Christians, delivers educational services not only to Americans but thousands of students overseas. It is the largest university in Virginia.

The quality of an online Liberty University learning experience probably isn’t the same as that of UVa seminar with a professor interacting with 15 students in the same classroom. But, then, it’s probably a whole lot cheaper. I would conjecture that Liberty, an institution not long-lived enough to develop hoary traditions and an entrenched academic culture has found it easier to adapt to the new technology. One reason college tuition is increasing so rapidly nationally is what’s not happening in higher ed rather than what is. Colleges are not making the productivity gains we have seen in nearly every other sector of the economy. Traditional universities have powerful constituencies — often referred to as “stakeholders” — whose interests must be placated.

If traditional colleges can’t find some solution to their rising costs and rising tuition, they’re in big trouble. Liberty University or institutions like it will eat their lunch.

The General Assembly STILL Doesn’t Get It

By Peter Galuszka

Gov. Terry McAuliffe is right to amend the latest ethics bill to close a loophole that would have allowed legislators to collect $99.99 worth of gifts every day of the year.

After all the uproar over the Bob McDonnell scandal, one would think that the General Assembly would have the sense and maturity to take responsible corrective efforts.

Well, no. First they went to little scenes that would ban gifts over $250, but “intangibles” which often are the real goodies such as trips to the Master’s golf tournament in Augusta, Redskins Games, and so on, are not included.

Then, they had to be browbeaten to lower the gift limit to $100. And no intangibles.

But, “nooo,” as the Blues Brothers used to say. They made it no more than $100 in gifts per day. That means they could take something like $36,496.35 a year, not $99.99. Multiply that by the number of senators and delegates and it adds up.

Never mind that the General Assembly wouldn’t consider real ethics reform, such as setting up a true ethics commission with subpoena power.

McAuliffe should ratchet this down as much as possible. After the worst public ethics scandal in the state’s history – one that drew international attention, they still don’t get it.

Cruz, “Liberty” and Teletubbies

AP CRUZ A USA VA By Peter Galuszka

Where’s the “Liberty” in Liberty University?

The Christian school founded by the controversial televangelist Jerry Falwell required students under threat of a $10 “fine” and other punishments to attend a “convocation” Monday where hard-right U.S. Sen. Ted Cruz announced his candidacy for president.

Thus, Liberty produced a throng of people, some 10,000 strong, to cheer on Cruz who wants to throttle Obamacare, gay marriage, abolish the Internal Revenue Service and blunt immigration reform.

Some students stood up to the school for forcing them to become political props. Some wore T-Shirts proclaiming their support of libertarian Rand Paul while others protested the university’s coercion. “I just think it’s unfair. I wouldn’t say it’s dishonest, but it’s approaching dishonesty,” Titus Folks, a Liberty student, told reporters.

University officials, including Jerry Falwell, the son of the late founder, claim they have the right as a private institution to require students to attend “convocations” when they say so. But it doesn’t give them the power to take away the political rights of individual students not to be human displays  in a big and perhaps false show.

There’s another odd issue here. While Liberty obviously supports hard right Tea Party types, the traditional Republican Party in the state is struggling financially.

Russ Moulton, a GOP activist who helped Dave Brat unseat House Majority Leader Eric Cantor in a primary last summer, has emailed party members begging them to come up with $30,000 to help the cash-strapped state party.

GOP party officials downplay the money problem, but it is abundantly clear that the struggles among Virginia Republicans are as stressed out as ever. Brat won in part because he cast himself as a Tea Party favorite painting Cantor as toady for big money interests. The upset drew national attention.

Liberty University has grown from a collection of mobile homes to a successful school, but it always has had the deal with the shadow of its founder. The Rev. Falwell gained notoriety over the years for putting segregationists on his television show and opposing gay rights, going so far as to claim that “Teletubbies,” a cartoon production for young children, covertly backed homosexual role models.

Years ago, the Richmond Times-Dispatch published a story showing that the Rev. Falwell took liberties in promoting the school he founded in 1971. Brochures touting the school pictured a downtown Lynchburg bank building with the bank’s logo airbrushed off. This gave the impression that Liberty was thriving with stately miniature skyscrapers for its campus.

Some observers have noted that Liberty might be an appropriate place for the outspoken Cruz to launch his campaign. The setting tends to blunt the fact that he’s the product of an Ivy League education – something that might not go down too well with Tea Party types – and that he was actually born in Canada, although there is no question about his U.S. citizenship and eligibility to run for question.

Hard-line conservatives have questioned the eligibility of Barack Obama to run for U.S. president although he is likewise qualified.

With Cruz in the ring and Liberty cheering him, it will make for an interesting campaign.

Carbon Cuts: Why PJM Has a Better Idea

pjm-region-1024x657By Peter Galuszka

Amidst all the gnashing of teeth in Virginia about complying with proposed federal carbon dioxide rules, there seems to be one very large part of the debate that’s missing.

Several recent analytical reports explore using regional, carbon marketplaces to help comply with proposed federal Clean Power Plan rules that would cut carbon emissions by 2030. They conclude that the carbon goals can be attained more cheaply and efficiently by using a regional approach.

The lead study is by the PJM Interconnection, a grid that involves all or parts of 13 states including most of Virginia. Its March 2 report states that “state by state compliance options – compared to regional compliance options – likely would result in higher compliance costs for most PJM states because there are fewer low-cost options available within state boundaries than across the entire region.”

The same conclusion was made by another report by the Washington-based consulting firm Analysis Group on March 16. It states: “PJM’s analysis of compliance options demonstrates that regional, market-based approaches can meet Clean Power Plan goals across PJM states at lowest cost, with retirements likely spread out over a number of years.”

PJM set off in its analysis by setting a price per ton of carbon dioxide emissions with an eye towards the entities being exchanged among PJM-member utilities in a new market. The PJM report shows that electricity generation varies greatly among members. Some are farther along with renewables while others are greatly reliant upon coal.

By exchanging carbon units, some coal plants might actually be kept in service longer while overall goals are still achieved. EnergyWire, an industry news service, quotes Michael Kormos, PJM’s executive vice president for operations, as saying that the market-based carbon exchange, somewhat counterintuitively, might keep coal plants running longer.

“With the renewables and nuclear coming in as basically carbon free, we’re actually able run those coal resources more because they are getting credit from renewables and the nuclear as zero carbon.”

In December, PJM had 183,694 megawatts of generation. Some 67,749 megawatts are from coal-fired units.

Kormos says that a number of coal-fired units are going to be retired in the 2015 to 2030 timeframe regardless of what happens with the Clean Power Plan, whose final rules will be prepared by the U.S. Environmental Protection Agency later this year. The retirements of older coal plants are expected to involve a minimum of 6,000 megawatts of power.

It is curious that very little of this report is being heard in the vigorous debate in Virginia about complying with the Clean Power Plan. What you hear is a bunch of humping and grumping from Dominion Virginia Power and its acolytes in the General Assembly, the State Corporation Commission and the media.

This is not a new concept. Carbon trading is active in Europe and has worked here to lessen acid rain.

It is amazing that one hears nothing about it these days. It is shouted down by alarmists who claim that Virginia ratepayers will be stuck with $6 billion in extra bills and that there’s an Obama-led  “War on Coal.” The New York Times has a front-pager this morning about how Kentucky’s Mitch McConnell is taking the rare step of actually leading the “War on Coal” propaganda campaign.

Also strange, if not bizarre, is that this approach is precisely market-based which so many commentators on the blog claim to worship. Where are they on the PJM idea? Has anyone asked Dominion, which is running the show in this debate?