Energy Production – Law Street https://legacy.lawstreetmedia.com Law and Policy for Our Generation Wed, 13 Nov 2019 21:46:22 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.8 100397344 It’s Time to Shut Down New York’s Indian Point Nuclear Plant https://legacy.lawstreetmedia.com/blogs/time-to-shut-down-new-yorks-indian-point-nuclear-plant/ https://legacy.lawstreetmedia.com/blogs/time-to-shut-down-new-yorks-indian-point-nuclear-plant/#comments Tue, 22 Jul 2014 10:30:14 +0000 http://lawstreetmedia.wpengine.com/?p=20606

Nuclear reactors are notorious for their cooling systems; the Three Mile Island, Chernobyl, and Fukushima meltdowns all occurred because of cooling system failures. Located in Buchanan in Westchester County, Indian Point sits at the edge of the Hudson River, which supplies the drinking water for over nine million people. The plant draws in two billion gallons of river water every day in order to cool its reactors, discharging it back into the river eight degrees warmer, with catastrophic consequences for the aquatic life there. Read on for a full review of the consequences of the Indian Point power plant.

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Let’s work backwards: there is a nuclear power plant in upstate New York called Indian Point, and it needs to be shut down.

Nuclear reactors are notorious for their cooling systems; the Three Mile Island, Chernobyl, and Fukushima meltdowns all occurred because of cooling system failures. Located in Buchanan in Westchester County, the Indian Point nuclear plant sits at the edge of the Hudson River. It draws in two billion gallons of river water every day in order to cool its reactors, discharging it back into the river eight degrees warmer. This has catastrophic consequences for the fish, eggs, larvae, and other aquatic life there. In fact, more than a billion of them die every year, said Paul Gallay, president of Riverkeeper, an organization devoted to protecting the Hudson River and its tributaries (read more about this important organization here).

In a process called entrainment, fish and river life are sucked into the cooling intakes and annihilated. For decades conservationists have advocated for a closed cooling system, which has not come to fruition because it would require a financial investment that Entergy, the plant operator, is not willing to make. Rather, the company has proposed installing screens at the mouths of the intakes. Researchers have revealed that this is a far cry from a solution, not doing enough to protect the river’s biodiversity. In addition, it does not address the warm water discharge.

The Indian Point Reactor

The Indian Point Reactor, courtesy of Franklin R. Halprin

The quality of the reactor itself and its operation therein are sorely lacking as well. Security guards consistently fail mock attack tests, there is no viable evacuation plan for the surrounding region, and the reactor is deteriorating with age. The Indian Point closure debate is particularly hot right now because the site’s 40-year license is about to expire and the Nuclear Regulatory Commission is considering granting them a 20-year renewal. The reactor provides a substantial percentage of the power used by New York City and the surrounding area; instead of shutting it down, why not repair and renovate?

In addition to closed cycling cooling, there are things that can be done in order to make Indian Point a bit safer, including fire safety measures and dry cask storage. These actions are insufficient; they do not change the underlying threats due to the reactor’s age, such as embrittlement, corrosion, and metal fatigue. Considering these problems are irreparable, why not tear it down and build a new reactor? Forty years ago, population geographies were different. Indian Point’s location is undesirable, due to its proximity to communities. Furthermore, several fault lines run through the area.

Un-enforced "Keep Out" buoys

Unenforced “Keep Out” buoys, courtesy of Franklin R. Halprin

Nuclear energy is an efficient and clean means of powering our world. A controversial and provocative documentary called Pandora’s Promise (2013) makes a case for its desirability. Watch the trailer here:

One pound of uranium, the size of a person’s finger, yields as much energy as 5,000 barrels of oil. Nuclear energy does not pollute the air the way fossil fuels do. The amount of nuclear waste is overestimated: all the United States’ spent fuel rods would occupy a space no larger than a football field. Proposed “fourth generation reactors” are even more efficient and can recycle waste into another round of energy productivity. Renewables may be best for the long term sustainability of civilization, but right now, considering we continue to expand our energy demands, we need something realistic and nuclear is the way to go. These are some of the arguments the documentary presents, many of which are reasonable and worthy of consideration.

According to Gallay, Riverkeeper does not have a stance on nuclear power in general, but renewable energy and energy efficiency are two separate but interrelated things. We cannot argue that our needs for energy are increasing so drastically, while we waste 30 percent of the power we use. We can make many lifestyle changes so as to limit the growth of our demands. The idea of fourth generation nuclear plants is a fruitless quest for a Holy Grail. Rather, we should utilize the options we already have in hand. Declarations that carbon emissions in New York State would skyrocket if Indian Point were to close can be neutralized by a more wholehearted embrace of renewable energy systems. The economic infrastructure for them is more firmly established than ever, and market penetration is at an all time high. Furthermore, the sources of 650 of 2,000 potential megawatts are already in place and good to go.

These statistics are specifically in reference to New York State, but the conceptual framework is just as applicable to the United States at large and its national energy policy. Nuclear power has many advantages over fossil fuels, but it is not the ultimate answer. There are some notable outliers, such as France. Gabrielle Hecht’s The Radiance of France brilliantly chronicles the country’s national embrace of nuclear energy in the second half of the 20th century and the cultural values therein, as a means of assuaging the damage done by two world wars and as an attempt to reclaim its status as a member of the top of the geopolitical order. When the 21st century arrived, France had achieved energy independence and was even exporting its surplus to other countries. The general health of the environment and air there is notable; however, at the start of its program in the late 1940s, wind and solar power were barely in the conversation, and the state of technology did not allow for the viability of options such as geothermal energy. Just because France found success with its nuclear embrace half a century ago does not mean that the United States should pursue the same course now. We are fortunate enough to have at our fingertips a wider array of more preferable options.

It is time to make some substantial decisions regarding national energy policy and the directions in which we want to go. The Indian Point debate is a good starting point, and shutting it down would provide a great opportunity to set ourselves on a more renewable, and environmentally and socially responsible course.

Franklin R. Halprin (@FHalprin) holds an MA in History & Environmental Politics from Rutgers University where he studied human-environmental relationships and settlement patterns in the nineteenth century Southwest. His research focuses on the influences of social and cultural factors on the development of environmental policy. Contact Franklin at staff@LawStreetMedia.com.

Featured image courtesy of [Nick Fedele via Flickr]

Franklin R. Halprin
Franklin R. Halprin holds an MA in History & Environmental Politics from Rutgers University where he studied human-environmental relationships and settlement patterns in the nineteenth century Southwest. His research focuses on the influences of social and cultural factors on the development of environmental policy. Contact Frank at staff@LawStreetMedia.com.

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Max Baucus’ Tax Plan: Could it Work? https://legacy.lawstreetmedia.com/issues/energy-and-environment/is-max-baucus-energy-tax-reform-plan-appropriate/ https://legacy.lawstreetmedia.com/issues/energy-and-environment/is-max-baucus-energy-tax-reform-plan-appropriate/#comments Wed, 19 Mar 2014 15:22:57 +0000 http://lawstreetmedia.wpengine.com/?p=12105

On December 18, 2013, Senate Finance Committee Chairman Max Baucus unveiled a discussion draft for an energy tax reform plan intended to make progress in the federal government’s current system of corporate tax incentives for the production of clean energy. The old system was criticized as being too complicated and too decentralized. Read on to learn […]

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On December 18, 2013, Senate Finance Committee Chairman Max Baucus unveiled a discussion draft for an energy tax reform plan intended to make progress in the federal government’s current system of corporate tax incentives for the production of clean energy. The old system was criticized as being too complicated and too decentralized. Read on to learn about Baucus’ energy plan, the arguments in favor of it, and the arguments against it.


What was Baucus’ plan?

There are forty separate tax incentives offered to corporations for a variety of forms of energy including fossil fuels, wind, solar, and nuclear power; however, many of these are short-term incentives set to expire every two years or so until they are re-authorized by Congress, often leaving companies unsure of which tax incentives would still be in effect in the future. These incentives are also often specific in a way that does not provide for new and emerging technologies that may contribute to reducing emissions.

Senator Baucus’ plan aims to make energy tax incentives “more predictable, rational, and tech-neutral” by consolidating some of these incentives and eliminating others to form two broader and simpler tax incentives, one focused on clean production of electricity and one focused on clean production of transportation fuel. These incentives are granted after a particular plant is using a method that produces emissions intensity 25 percent cleaner than average energy production methods (“emissions intensity” is measured as the amount of emissions released per amount of energy produced, and is used to compare the environmental effect of different methods of energy production).

Baucus’ plan also calls for using the federal money saved through this tax reform to lower the corporate tax rate, which currently stands at 35 percent. Baucus, however, was confirmed in January as the next US Ambassador to China, and though leadership of the Senate Finance Commission will transfer to Senator Ron Wyden, who has worked closely with Baucus on this reform plan, many expect the plan to become stalled as its leader moves overseas. Despite this uncertain future, Baucus’ reform plan is seen as an indicator of impending reform to the current energy tax system in the United States.


What is the argument for Baucus’ plan?

Supporters of the reform say Baucus’ plan is an effective way to simplify the tax incentive structure while supporting clean energy. Companies would not have to waiting on their toes to see whether the particular incentives that apply to them would be renewed, and knowing that these incentives will have more longevity would promote more investment into clean energy production technology projects in the future. Most importantly, this reform plan is tech-neutral, meaning that it does not favor certain technologies over others and in fact does not specify any technologies in its incentives.

Supporters argue that this aspect of the plan will benefit newer and cleaner technologies that may not necessarily fit into the rigid outlines of our current tax incentives, thus paving the way for further innovation and investment into energy-producing technology. Additionally, many of the incentives that are to be eliminated and not included in the broader transportation fuel incentive are tax breaks that benefit Big Oil, a move hailed by many supporters who do not see the point of offering tax breaks to companies in an industry that has shown record profits year after year [cite]. Lastly, with the federal revenue gained from simplifying the tax incentive structure and removing breaks for big oil companies, Senator Baucus’ plan intends to lower corporate tax rates, which supporters hope will provide impetus for further economic growth.


What is the argument against Baucus’ plan?

Others are strongly opposed to this reform plan due to its emphasis only on energy producers (companies that use coal, fossil fuels, wind, solar and other methods to produce energy) and not energy users (all other private citizens and companies that use electricity, gasoline, etc.), and because the emissions reduction quotas of the incentives are, as one critic put it, “unambitious”, and would have little effect on improving the environment.

The two main tax incentives of Baucus’ plan target producers of electricity and transportation fuel, with no mention of companies that use energy in a cleaner way. This means that companies that make their buildings more energy efficient, companies that manufacture environmentally-friendly appliances and cars, and the individuals who use these greener manufactured goods would no longer receive the tax incentives they currently receive. Many opponents see this as being counter-productive in the struggle to promote cleaner energy technologies.

And while this plan does target energy production, many opponents point out that this plan would actually reduce incentives provided to areas such as solar and wind power. Whereas currently producers of solar power receive an investment tax credit of 30 percent, under this new plan they would only be entitled to either a production tax credit of $0.023 per kilowatt or an investment tax credit of 20 percent. Therefore, despite favoring carbon-free methods of energy production, many opponents feel this plan will do little to help area such as solar, wind, and other green energy production.

There has also been a backlash from the oil and natural gas industry, as well as from areas such as Montana and North Dakota who have a fledgling oil industry, arguing that by favoring carbon-free technologies the plan would be stifling job opportunities and economic growth brought about by the oil industry. Lastly, some opponents of the plan argue that the reduction quotas are too low. One critic points out that a 25% reduction in emissions “intensity”, which is the wording used in the discussion draft, is vastly different from a concrete measurement of emissions, and depending upon economic growth and the relative amount of energy these companies are producing, companies could meet this quota without any serious reduction in emissions. On a broader scale, some oppose tax incentives for alternative energy production altogether, arguing that global warming is, as indicated by its name, a global phenomenon, and that any reduction in emissions in the US is offset by emissions due to economic growth in developing countries, where environmental legislation is often more lax.


Conclusion

It’s clear that something needs to be done to fix the very confusing and red-tape-littered energy tax process. While there are certainly tangible benefits to Baucus’ plan, opponents worry that it would do more harm than good.


Resources

Primary

U.S. Senate Committee on Finance: Baucus Unveils Proposal For Energy Tax Reform

U.S. Senate Committee on Finance: Energy Tax Reform Discussion Draft

Additional

American Progress: Baucus Tax Reform Cuts $46 Billion in Oil Breaks

Domestic Fuel: Senator Max Baucus Unveils Energy Tax Reform

EE News: Baucus Proposal Replaces Dozens of Energy Breaks with Credits for ‘Clean’ Fuel, Electricity

BioMass Magazine: Sen. Baucus Releases Proposal To Overhaul Energy Tax Incentives

BillingsGazette: Baucus’ Tax Reform Must Be Fair To Energy Industry

ThinkProgress: Max Baucus’ Renewable Energy Tax Break Reform: The Good, The Bad, and The Ugly

Daily Caller: Analysis: Baucus Energy Tax Plan Comes With Dubious Benefits

Breaking Energy: Are Subsidies the Answer to Energy Sector Tax Reform?

Solar Industry: Baucus Energy Tax Reform Plan Reduces Solar Investment Credit

Washington Post: The Way Congress Funds Clean Energy Is A Mess. Max Baucus Thinks There’s A Better Idea

Politico: Baucus Proposes To Overhaul for Clean-Energy Tax Breaks

Lexology: US Teax Reform Update: Senate Finance Chairman Baucus Issues Energy Tax Reform Proposal

Hill: Baucus Proposes Dumping Energy Breaks

Tax Reform Law: Baucus Proposes Major Overhaul To Energy Incentives

 

Joseph Palmisano
Joseph Palmisano is a graduate of The College of New Jersey with a degree in History and Education. He has a background in historical preservation, public education, freelance writing, and business. While currently employed as an insurance underwriter, he maintains an interest in environmental and educational reform. Contact Joseph at staff@LawStreetMedia.com.

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