Biden Declares National Emergency for War on Energy

Washington Examiner reports Biden’s war on energy: President invokes wartime powers to speed up end to gas-powered home appliance.  Excerpts in italics with my bolds and added images.

President Joe Biden allotted $169 million for electric heat pump projects with his emergency authority on the basis of climate change.

This is the first time a president classified climate change as an emergency by utilizing the Defense Production Act, which was established during the Cold War. Now, the money stemming from the Inflation Reduction Act will be divided among 15 sites dedicated to manufacturing the necessary parts and entire units of a variety of heat pumps.

“The President is using his wartime emergency powers under the Defense Production Act to turbocharge U.S. manufacturing of clean technologies and strengthen our energy security,” Biden’s National Climate Advisor Ali Zaidi said in a statement.

John Podesta, senior adviser to the president for clean energy innovation and implementation, similarly celebrated the move, applauding the president for “treating climate change as the crisis it is.”

However, American Gas Association President and CEO Karen Harbert disagreed with the recent move from the White House, writing in a statement, “We are deeply disappointed to see the Defense Production Act, which is intended as a vital tool for advancing national security against serious outside threats, being used as an instrument to advance a policy agenda contradictory to our nation’s strong energy position.”

“Increased use of natural gas has been responsible for 60% of the electrical grid’s CO2 emissions reductions. This vital tool for emissions reductions and energy system resilience should not be unfairly undermined through misuse of the Defense Production Act.”

Among the facilities, two new factories will be constructed: a Treau, Inc. DBA Gradient plant in Michigan and a Mitsubishi Electric plant in Kentucky. Neither company has announced exact locations yet. Treau will receive over $17 million, and Mitsubishi will receive $50 million toward construction.

The Energy Department predicts roughly 1,700 jobs will be created in the various projects to promote more heat pump products. All the sites are centered in “disadvantaged communities” for their benefit.

Last year, the Energy Information Administration reported that natural gas was the water and space heating source of about 42% of U.S. residential spaces. The residential sector makes up 15% of overall natural gas consumption. However, heating and cooling across residential and commercial buildings drive more than 35% of the country’s energy consumption.

Footnote on Declaring Climate Emergency for Spending Purposes

This report on the German High Court ruling on this matter Europe Plunges Into Chaos After Germany Freezes Public Spending Following Shock Top Court Decision.  Excerpts in italiics with my bolds.

Germany’s economy, Europe’s largest, is contracting as surging energy prices and trade tensions cast doubt on its export-oriented business model. Chancellor Olaf Scholz’s government had been counting on that old virtue signaling switcheroo – a flood of spending on “green-energy projects and technology”, from chips to batteries, to revive the old model. That way, if anyone asks why Germany is deficit-spending its way to mercantilist utopia, Berlin could always lie and say it was doing the right thing for the world and wasn’t interested in a debt-funded stimulus. Alas, now the “Cardinals of Karlsruhe” have made this impossible.

Berlin’s decision to freeze all federal spending for the rest of the year came after the court defunded the government’s €60 billion —the equivalent of more than $65 billion—green-transition project. The court said Berlin couldn’t repurpose unspent credits originally earmarked to tackle the Covid-19 pandemic to fund environmental and energy projects. It said Berlin was bound by the country’s constitutionally enshrined fiscal rules that limit budget deficits to 0.35% of gross domestic product in normal times.

Senior government officials said one option under consideration would be to retroactively declare a state of budgetary emergency for 2023, invoking a clause in the fiscal rules that allows for a suspension of the spending limits in exceptional circumstances. Previous governments invoked the exception during the pandemic.

Unfortunately, for Germany’s stimmy-starved politicians, the plan is fraught with legal difficulties, in part because the constitutional court prepared for just this eventuality when it raised the bar for declaring such emergencies, according to Lars Feld, an economist who advises the government.

Strengthening resilience and transforming the economy amid geopolitical crises and climate change was seen as a necessity that required taking on debt, but the court ruling has challenged those assumptions, Feld wrote in the Frankfurter Allgemeine newspaper.

Hilariously, the court said that unlike war and natural disasters, climate change was a foreseeable crisis that had been long in the making and could no longer justify emergency spending. Which, however, means that all Germany will have to do is politely request that the CIA start a new war… or that Fauci mail orders a new virus from Wuhan.

 

 

 

 

2 comments

  1. beththeserf · November 21

    Luv the cartoon. hate the war on energy.

    Like

  2. kakatoa · November 25

    Pesky “overheads” seem to be affecting rental prices in Germany too-

    “Moreover, there was a significant rise in the overheads for heating, electricity and communal fees, which have also increased the costs of housing for homeowners.”

    https://www.reuters.com/markets/german-home-prices-plunge-further-no-respite-surging-rents-2023-11-24/

    Like

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