Questions about Enron's links to the White House and Dick Cheney's Energy Task Force are reassuring. They mean that the nation, after the September 11 attacks, is now confident enough to focus on some of the more traditional threats to our democracy, like the corporate takeover of our political system.
Following the release of the White House energy plan last year, the Government Accounting Office (GAO) demanded the Energy Task Force's records, including any interactions with major Bush campaign donors like Enron's Ken Lay. The Vice President's office refused to release the documents, claiming that Congress was exceeding its oversight authority. One of the oil and gas men whose privacy the White House wants to protect is Cheney himself, who in 1999, as CEO of Halliburton, was a member of the Petroleum Council, an advisory group to the Energy Department. The council issued a report calling for the opening of the Arctic National Wildlife Refuge (ANWR) and of roadless areas of the West to fossil fuel exploitation, proposals incorporated into the White House plan.
The GAO was preparing to sue for the first time in its eighty-year history when the terrorists struck. It then put its suit on hold so it could focus on "homeland security" and let the White House do the same. With the collapse of Enron and the beginning of Congressional hearings on the largest bankruptcy in US history, that holding pattern appears to be ending.
Still, even as environmental groups backed away from criticizing the President after September 11, the White House continued to push its "free market" environmental agenda. This past October, Interior Secretary Gale Norton had to explain why she'd altered scientific data, in a letter to the Senate, to make it appear that oil operations in the Arctic would not harm hundreds of thousands of migratory caribou, when in fact her own Fish and Wildlife Service (FWS) had provided her with data suggesting it would. "We did make a mistake. We will take steps to clarify and correct that," she told reporters in explaining one of the many discrepancies in her letter.
Norton has also concluded that drilling in the Arctic won't violate an international treaty that protects polar bears. The FWS, which has twice issued reports stating that drilling poses a threat to the bears, was directed to "correct these inconsistencies" with Norton's position. Polar bears can live with oil drilling, the FWS now tells us. They'll just look more like panda bears.
Ten years after President Bush Sr. pledged "no net loss of wetlands," George W. has signed off on an Army Corps of Engineers proposal that will make it easier for developers and mining companies to dredge and fill America's vital wetlands through a "general permitting" process that is rarely if ever challenged. Again, Norton failed to forward comments from her FWS to the corps, even though the FWS had written that the proposed policy change would result in "tremendous destruction of aquatic and terrestrial habitat."
Among the beneficiaries of the new engineer corps rules will be mining companies involved in "mountaintop removal" in Appalachia. J. Steven Griles, Norton's deputy, was a longtime mining lobbyist, and Norton herself lobbied for the lead industry.
Over at the EPA Christie Whitman won greenie points when she ordered GE to begin dredging PCBs out of the Hudson River. At the same time, the EPA has begun moving top career people (from the office of wetlands, enforcement, etc.) around the agency in a strange reorganization no one quite understands. "Are they purposely designing this to hamstring EPA for the next twenty years?" wonders a career employee who also complains that enforcement actions (as opposed to industry-friendly out-of-court settlements) are down significantly in the past year.
Under White House and lobbyist pressure, the EPA is also getting ready to relax clean air standards (that, as governor of New Jersey, Whitman supported) requiring old coal-fired power plants to shut down or significantly reduce gaseous emissions that contribute to acid rain and other forms of pollution.
Even Energy Secretary Spencer Abraham's recent Detroit auto show announcement that the government will work with the auto industry to develop pollution-free hydrogen-fuel-cell cars got mixed reactions. That's because he used the announcement to abandon a program aimed at improving existing auto fuel-efficiency standards. As usual, most of these environmental policy decisions are rife with corporate conflicts of interest, but conflicts that in recent months have gotten even less media attention than they normally would.
In her public appearances Whitman now emphasizes the need to protect America's water supply from terrorists (if not arsenic). Norton has been pushing the argument that drilling in ANWR can provide as much oil as we import from Iraq in eighty years (or the oily equivalent of sixteen years of Cheney's diet), and President Bush insists that Arctic drilling will make us "more secure at home." If nothing else, America's new "war on terrorism" is helping the Bush White House in its old war on the environment.
One of the major falsehoods being bandied about by apologists for the Bush Administration is that while Enron may have bankrolled much of the President's political career it got nothing for those
The rise and fall of the house of Enron should trigger comprehensive investigations--civil, criminal and Congressional. The full scope of relations between Enron and its cronies in the Bush Administration must be dragged out into the sunlight. Miscreants should be prosecuted, and fundamental reforms enacted to bring corporations back to public accountability.
Desperately trying to put a lid on the cascading scandals, White House spokesmen have insisted that since Bush officials did nothing when Enron chairman Ken Lay warned them about its impending collapse, there is no political scandal, only a financial one. Don't fall for that.
The largest scandal, as Robert Borosage suggests on page 4, is not just what was done illegally but what was done legally--for example, the failure of Bush Cabinet members to warn small investors and employees that Enron was going down and that its executives were bailing out. Or the slick way Enron gouged billions from Western energy consumers while its planted head of the Federal Energy Regulatory Commission, Pat Wood, ignored the pleas of Western governors for price controls. Or Treasury Secretary Paul O'Neill's torpedoing of the Clinton Administration's attempt to regulate offshore tax havens, a direct benefit to Enron, among others. Or Enron officials' six meetings with Vice President Cheney to help shape Bush's energy plan. What is Cheney hiding by refusing to reveal the names of those FERC met with?
Clearly, the full range of Administration contacts with Enron should be probed. This will reveal how crony capitalism works and what must be done to curb it. Congress must begin the hard task of rebuilding the legal framework for corporate accountability. As William Greider writes on page 11, Enron's demise reveals that all the supposed checks on executive plunder--accountants, stock analysts, independent board members, regulatory agencies--were either short-circuited or inactive. We need bold reform now. And Congress should take a close look at pensions, boosting defined-benefit plans and returning 401(k) plans to the supplement they were intended to be. And of course Enron once again illustrates the corrosive corruption of big-money politics.
With the House and the White House in Republican hands, Democrats in the Senate, sadly, will have to take the lead in ferreting out the facts and defining the necessary reforms. "Sadly" because too many Senate Democrats mirror Republicans in pocketing corporate bucks and parroting the deregulation/privatization line that comes with them. The chairman of the Governmental Affairs Committee, Joseph Lieberman, was leader of the corporate-funded Democratic Leadership Council and a founder of New Democrat Network, the proud recipient of Enron contributions. Last year Lieberman blew off the probe of Enron's connections to the California energy crisis. He now has another chance to show if he stands with his voters or his contributors.
Enron's bankruptcy is the largest in US history, but it is not unique. It is a product of the conservative offensive to unfetter corporations by dismantling hard-won public protections. Given that freedom, Enron's executives--and their brethren--gouged consumers, fleeced investors, even betrayed their own employees. It's time for Congress and the people to put an end to Enronomics and call corporate marauders to account.
Last spring Richard Pollak asked in these pages, "Is GE Mightier Than the Hudson?" (May 28, 2001). Given the Environmental Protection Agency's December 4 decision to dredge the PCB-contaminated river, it is tempting to ring in the new year with a resounding No. Despite the company's multimillion-dollar blitz of lawyering, lobbying and PR, the Bush Administration, in the person of its EPA Administrator, Christine Todd Whitman, has come down squarely on the side of those in New York's historic Hudson River Valley who have been agitating for years to make GE clean up the lethal mess it created by dumping more than a million pounds of polychlorinated biphenyls in the river from the 1940s into the 1970s. This pollution has turned 200 miles of the Hudson, from just above Albany south to New York Harbor, into the biggest Superfund site in the nation; EPA law requires that GE pay the cost of removing the toxic chemicals, which the agency estimates at $460 million. More than once, the company has told its stockholders it can well afford this sum, as a multinational with a market value of some $500 billion surely can.
Still, it may be premature to pop the champagne corks. This past fall, fearing that Whitman might follow the lead of her Clinton Administration predecessor, Carol Browner, and endorse the cleanup, GE filed a federal suit attacking as unconstitutional a Superfund provision that allows the EPA, if the company refuses to dredge, to do the job itself and bill GE for three times the final cost plus penalties of $27,500 a day. GE has plenty of time (and cash) to pursue this and other maneuvers against dredging, which is needed to remove some 150,000 pounds of PCBs still in the Hudson. The EPA estimates it will take at least three years to work out the project's engineering and other details--e.g., what kind of equipment is needed, how much stirred-up sediment is acceptable and what landfills can safely handle the contaminated mud. Many residents along the banks of the river are divided--sometimes angrily--on these and several other issues. During the EPA's 127-day comment period in 2001 it received about thirty-eight boxes of letters and 35,000 e-mails, many spurred by GE's scare campaign--on billboards, in newspaper ads and on TV infomercials--warning that dredging will destroy the river.
The EPA has pledged that the public will have even more of a voice in the project's design decisions over the coming months--a welcome process but one that GE is likely to exploit with more propaganda. At its enviro-friendly-sounding website (hudsonwatch.com), for example, the company continues to insist, on no hard evidence, that the citizens of the Hudson River Valley oppose dredging "overwhelmingly." Some residents do resist dredging and the inevitable inconvenience it will bring to their communities, and not all have arrived at their view because of GE's PR tactics. But after almost two decades of review by the EPA, the burden of scientific evidence shows that the remaining PCBs, which cause cancer in laboratory animals and probably in humans, continue to poison the river a quarter-century after their use was banned and GE stopped dumping them.
The EPA's December 4 order could be the precedent that requires the company to clean up forty other sites where it has dumped PCBs. This would cost several billion dollars, a hit not so easy to reassure shareholders about. Even with GE master-builder Jack Welch retired and busy flogging his bestselling How-I-Did-It book, don't look for the company to roll over anytime soon.
Outspoken critic of organic farming, Dennis Avery, is supported by generous contributions from Monsanto, DuPont, Novartis, ConAgra, DowElanco, The Olin Foundation and the Ag-Chem Equipment Company, all of whom profit from the sale of products prohibited in organic production.
"Tampering With Nature," John Stossel's June 29, 2001, special, became a public relations problem for ABC when several parents demanded that interviews with their children be removed f
WASHINGTON--Pity the behemoth known as "the Department of Energy." It's
really, of course, the Department of Making Nuclear Weapons--and these
days, the Department of Scratching Its Head Trying
In early November, as American B-52s pummeled Taliban positions, a team of United Nations scientists surveyed the wreckage of the world's last major bombing campaign, the 1999 siege of Kosovo.
Old habits die hard, especially when it comes to US foreign policy. On November 10 George W. Bush appeared before the United Nations General Assembly and, in a speech praised by the New York Times for its "plain-spoken eloquence," admonished his audience that the responsibility to fight terrorism is "binding on every nation with a place in this chamber." Bush apparently felt no need to practice what he preached about international responsibilities, though. On the same day--indeed, at the very moment--he was lecturing UN members, his own Administration was shunning negotiations in Marrakech, Morocco, to finalize the Kyoto accord on global warming.
"How long can the Administration turn its back on issues the rest of the world cares about--from global warming to trade in small arms--and expect broad support on issues like the war on terrorism?" asked Philip Clapp, president of the National Environmental Trust. Bush's double standard is all the more grating, considering that the United States is the leading source of the greenhouse gas emissions that cause global warming.
Like terrorism, global warming is an issue in which every nation has a stake. Already the Earth's glaciers are melting and catastrophic storms are becoming more severe and more frequent--this, after a mere 1 degree Fahrenheit increase in temperatures over the past century. Scientists expect four to eleven degrees of additional warming by 2100, bringing more violent weather, flooded coastlines and social havoc. New research released in Marrakech by the UN Environmental Program warns that global crop yields could fall 30 percent over the twenty-first century.
The Kyoto accord addresses this danger by ordering industrial nations to reduce greenhouse gas emissions 5.2 percent by 2012, compared with 1990 levels--a very modest target, considering that scientists say global emissions must eventually be cut 60 percent. Last summer in Bonn, 178 nations signed the accord; the meeting in Marrakech, where US officials observed but did not participate, hammered out rules for implementation. "Other countries have chosen their path, and our answer is still no," said a Bush Administration official.
Will Marrakech make much difference? The good news is that the world has put in place a binding framework requiring greenhouse gas reductions, and this framework will likely become law despite the US boycott. To come into force, the accord must be ratified by fifty-five countries, including a group responsible for at least 55 percent of the industrial world's emissions. Forty smaller nations have already ratified it, but with the United States holding out, the 55 percent standard can be reached only if the European Union, Russia and Japan all ratify. The EU has long been on board, and in Marrakech the Russians said they were finally satisfied. Japan's deputy chief cabinet secretary is pushing for a ratification vote in January, and Prime Minister Junichiro Koizumi has signaled his support. So Kyoto could become law as early as next spring (although the United States, because it didn't sign, won't be bound by it). A further bright spot: Delegates at Marrakech authorized $410 million a year by 2005 for a "clean development mechanism" to subsidize the shift from carbon-based fuels in poor countries.
The bad news is that the Kyoto accord got so watered down in Marrakech that it may have very little practical effect during the next ten years, when progress is most needed. The original accord relied heavily on emissions trading, a dubious mechanism that allows countries whose emissions are less than the maximum permitted, like Russia, to sell their excess to countries that are over their quota, like Japan. Now this loophole has been not only codified but expanded. The chief culprit is Russia, which has 120 million tons of emissions to trade and which also demanded twice as much credit as previously agreed on for the role its vast forests can play in absorbing carbon dioxide through photosynthesis. Meanwhile, two studies published in Nature this past July suggest that forests are not nearly as effective in neutralizing emissions as was thought.
Some environmentalists argue that these loopholes can be fixed later, that the emissions targets will be gradually tightened and eventually produce meaningful effects. And it's true that since carbon will now have a price in the marketplace, thanks to emissions trading, corporations, governments and individuals may make better choices about the products they produce and consume. US firms might even obey the accord, despite Washington's stance, in order not to be left behind by foreign competitors. But wouldn't it be easier if the United States simply showed as much commitment to the battle against global warming as it demands from everyone else in the battle against terrorism?
The current uproar
over the posture of the Bush Administration on global warming and,
most recently, on power-plant emissions vividly illustrates the
political hypocrisy and opportunism imbuing debates on environmental
issues. Take first global warming. The charge that the current phase
of global warming can be attributed to greenhouse gases generated by
humans and their livestock is an article of faith among liberals as
sturdy as is missile defense among the conservative crowd. The
Democrats have seized on the issue of global warming as indicative of
President Bush's willful refusal to confront a global crisis that
properly agitates all of America's major allies. Almost daily, the
major green groups reap rich political capital (and donations) on the
Yet the so-called anthropogenic origin of global
warming remains entirely nonproven. Back in the spring of this year,
even the Intergovernmental Panel on Climate Change, which now has a
huge stake in arguing the "caused by humans" thesis, admitted in its
summary that there could be a one-in-three chance its multitude of
experts are wrong. A subsequent report, issued under the auspices of
the National Academy of Sciences, is ambivalent to the point of
absurdity. An initial paragraph boldly asserting the caused-by-humans
line is confounded a few pages later by far more cautious paragraphs
admitting that the thesis is speculative and that major uncertainty
rules on the role played in climate equations by water vapor and
It's nothing new to say the earth is getting
warmer. I myself think it is, and has been for a long, long time. On
my shelf is an excellent volume put out in 1941 by the Department of
Agriculture called Climate and Man, which contains a chapter
acknowledging "global warming" (that same phrase) and hailing it as a
benign trend that will return the earth to the normalcy in climate it
enjoyed several hundred thousand years ago.
than a glance at the computer models favored by the caused-by-humans
crowd will show that the role of carbon dioxide is grotesquely
exaggerated. Indeed, the models are incapable of handling the role of
the prime greenhouse gas, water vapor (clouds, etc), which accounts
for twenty-five to thirty times as much heat absorption as carbon
Similarly, the Intergovernmental Panel on Climate
Change admits to a "very low" level of scientific understanding on an
"aerosol indirect effect" that the panel acknowledges is cooling the
climate system at a hefty rate (aerosols are particles so fine they
float in air).
In a particularly elegant paper published in
May in Chemical Innovation, journal of the American Chemical
Society, Professor Robert Essenhigh of Ohio State reminds us that for
the past 850,000 years, global temperature and carbon dioxide have
been moving up and down in lockstep. Since 849,700 of these years
were ones preceding any possible human effect on carbon dioxide, this
raises the question of whether global warming caused swings in carbon
dioxide or vice versa. Essenhigh argues convincingly that the former
is the case. As global temperatures warm, a huge reservoir of carbon
dioxide absorbed in the oceans is released into the atmosphere.
Clearly, this is a much more potent input than the relatively puny
human contribution to global carbon dioxide. Thus natural warming is
driving the raised level of carbon dioxide, and not the other way
But science can barely squeeze in the door with a
serious debate about what is prompting global warming. Instead, the
Europeans, the greens and the Democrats eagerly seize on the issue as
a club with which to beat President Bush and kindred targets of
Now take the latest brouhaha over emissions
from coal-fired plants. The industry wants what is coyly called
"flexibility" in emissions standards. EPA chief Christine Whitman is
talking about "voluntary incentives" and market-based pollution
credits as the proper way to go. Aware of the political pitfalls, the
Bush Administration has recently been saying that it is not quite
ready to issue new rules.
Now, there's no uncertainty about
the effects of the stuff that comes out of a power-plant chimney.
These heavy metals and fine particles kill people or make them sick.
There are also cleaning devices, some of them expensive, that can
remove these toxic substances. Ever since the 1970s the energy
industry has fought mandatory imposition of such cleaners. If Bush
and Whitman enforce this flexibility they will be condemning people
to death, as have previous foot-dragging administrations, Democratic
as well as Republican.
Both political parties have danced
to the industry's tunes. It was with the propagandizing of Stephen
Breyer (now on the Supreme Court, then a top aide to Senator Ted
Kennedy) that the trend toward pollution credits began. And after the
glorious regulatory laxity of the Reagan/Bush years, the industry was
not seriously discommoded in Clinton Time. Ask the inhabitants of
West Virginia and Tennessee whether they think the coal industry lost
clout in those years.
The sad truth of the matter is that
many "big picture" environmental theses, such as human-caused global
warming, afford marvelously inviting ways of avoiding specific and
mostly difficult political decisions. You can bellow for "global
responsibility" without seriously offending powerful corporate
interests, some of which, for reasons material, cynical or both, now
have a big stake (the nuclear industry, for example) in promoting the
caused-by-humans thesis. Treasury Secretary Paul O'Neill loves it,
and so does the aluminum industry, in which he has been a prime
player. On the other side we can soon expect to hear that powerful
Democrat, Senator Robert Byrd, arguing that the coal industry is in
the vanguard of the war on global warming, because the more you shade
the earth, perhaps the more rain you cause. So burn dirty coal and
protect the earth by cooling it.
The logic of the
caused-by-humans models installs the coal industry as the savior of
"global warming"--you want to live by a computer model that does