OPINION/COMMENTARY

Reining in the Endangered Species Act

With all due respect to the frog in whose name a chunk of land the size of Rhode Island was recently designated a critical habitat, the Endangered Species Act (ESA) tends to be a little wacky. I don't think most of us mind the idea of protecting endangered species per se. It's just that we don't see why the whole exercise can't be balanced out with a little bit of regard for humankind.

I mean, more power to the Delhi Sands flower-loving fly for being able to find fulfillment through flower nectar, but you've go to admit that someone's priorities are askew when, under the authority of the ESA, the city of San Bernadino can be made to delay construction of a medical center and spend over $3 million to mitigate for the presence of 8 of the Delhi Sands flies.

Kind of makes you wonder which lobbying firm the flies and frogs are using and if it's accepting new clients....

King of the Night Skies

In the legends and lore of the world's cultures, owls have been portrayed in significant but contrasting roles. In ancient Greece, for instance, an owl was taken to symbolize wisdom and was often depicted with Pallas Athena, the goddess of wisdom and protectress of Athens. Even today, the "wise" owl is a familiar theme in children's literature. In other cultures, however, the owl was associated with evil--probably because of its nocturnal hunting habits. The early Romans claimed that witches transformed themselves into owls and sucked the blood of sleeping children.

The natives of North America likewise held opposing views about owls. Of the 19 owl species on this continent, the great horned owl (Bubo virginianus) is the largest and most powerful, and it therefore became the epitome of those perceptions. For example, some tribes of the Southwest associated it with Mictlantecutli, the Aztec mythological king of the realm of the dead, while the Ojibwa of Minnesota believed that the owl transports the souls of the dead to the next world. On the other hand, warriors of other tribes admired its strength and boldness....

Congressional Mandates Contribute to Higher Gas Prices

According to the EIA, refining costs represented almost 20 percent of the retail cost of gasoline in March. Congress could significantly reduce these costs by scaling back the excessive and cumbersome federal regulations on refiners.

For example, the 1990 Clean Air Act amendments mandate the sale of cleaner-burning reformulated gasoline (RFG) in order to reduce summer smog in nine major metropolitan areas. The law also requires that RFG contain at least 2 percent oxygen by weight. To comply with these regulations, refiners must switch from winter-grade fuel to costlier summer-blend gasoline. According to the Federal Trade Commission (FTC), this adds 4 cents to 8 cents per gallon to the price of gasoline.

Moreover, a common oxygenate, MTBE (methyl tertiary butyl ether, which is used in about 70 percent of the reformulated gasoline) has been banned in California, New York, and Connecticut. This means that refineries must use a different additive, such as ethanol--which requires more crude oil in the production process. Reducing or phasing out MTBE use--but leaving the 2 percent oxygenate requirement in effect--would increase ethanol use. This would further contribute to price volatility and unnecessarily high gasoline prices.

Likewise, complying with a new national low-sulfur gasoline regulation for passenger cars not only presents scientific challenges for refiners, but also could adversely affect gasoline supply and availability. The industry will need to invest more than $8 billion over the next three years to meet this requirement--which will result in higher prices at the pump.

In addition to these federal regulations, some state and local governments require specialized fuel blends--"boutique fuels"--to satisfy local air quality needs.

This hodgepodge of customized fuel requirements increases production costs, which are ultimately reflected in the price of gasoline. These varied gasoline specifications also restrict the ability of refiners and distributors to move supplies around the country in response to local and regional shortages. Further proliferation of boutique fuel requirements would only contribute to the overall problem and drive up costs during disruptions....

Run for the Reserve!

We agree with the second argument against use of the SPR -- that government shouldn't be involved in commodity markets. We don't need the government to tax us in order to provide oil-price insurance. We can buy the insurance ourselves through the oil futures market. And we can buy cars and other goods that require less oil and gas to operate if we want, which is itself a form of insurance against higher prices. Government should not do for us what we are clearly able to do for ourselves.

In short, we don't need the SPR and, in a perfect world, we'd sell off the oil here and now, and then shut the whole thing down. Oil prices would spiral downward, gasoline prices would drop, and taxpayers would receive a windfall from the sale of 650 million barrels of oil during a time of record high prices. Insurance against future price spikes (if you want it) would be up to you....

ALEC Urges Temporary Repeal of State Gas Taxes

The American Legislative Exchange Council today urged state lawmakers to give drivers relief at the pumps by temporarily repealing state gas taxes.

“The states must take all appropriate actions to lower fuel costs,” said Duane Parde, Executive Director of the American Legislative Exchange Council (ALEC). “The average state levies a 24.3 cent tax on each gallon of gasoline. Temporarily repealing these taxes would be good for the bottom line of the family budget.”

The average price of a gallon of gasoline has skyrocketed in recent weeks. While much blame is placed on the oil and gasoline companies, government also contributes to the high cost of fuel through taxes and regulation.

“Federal and state taxes on each gallon of gasoline average 42.7 cents per gallon,” said Chris Atkins, ALEC Director of Tax and Fiscal Policy. “You could have bought a gallon of gas for $ .97 cents a couple of years ago.”

Regulation also takes a bit out of the consumer at the pumps. The Corporate Average Fuel Economy (CAFÉ) standards, restrictions on refining capacity, and boutique fuel also make families pay more for fuel....

Reaping What Biopharming Sows

Want safer, cheaper drugs? Don't we all. Well, biotechnology applied in an ingenious new way might be the answer -- if activists and regulators don't get in the way.

Gene-splicing techniques increasingly are being used to program common crop plants such as rice, corn and tobacco to synthesize high-value-added pharmaceuticals -- a process punnily dubbed "biopharming." The plants are harvested and the drug is then extracted and purified.

The concept is not new. Many common medicines, such as codeine, the laxative Metamucil® and the anti-cancer drug Taxol® are purified from plants. But biopharming's great promise lies in using gene-splicing techniques to make old plants do radical new things.

There is also great potential for cost cutting in the process: The energy for product synthesis comes from the sun, and the primary raw materials are water and carbon dioxide. An important collateral advantage is the opportunity for farmers to grow new, high-value-added crops.

However, regulators have created storm clouds....