Solutions Vol. 37, No. 1 January-February 2006 Northeast unites to curb warming HISTORIC MULTISTATE PACT PUTS REGION ON THE The Clean PATH TOWARD ENERGY INDEPENDENCE Air Act he negotiations were difficult—and initiated the process in 2003. at 35 3 Tat times acrimonious. But in Under the plan, power plants in the December the governors of seven north- seven states—Connecticut, Delaware, eastern states hunkered down on a con- Maine, New Hampshire, New Jersey, ference call and hammered out a historic New York and Vermont - will be The promise agreement to cut greenhouse gas emis- required to cut carbon dioxide 10% by and peril sions from power plants. 2020. Electric utilities will decide among of nanotech 5 The Regional Greenhouse Gas themselves which of the nearly 200 Initiative (RGGI) is the nation’s first power plants should make the largest multistate cap-and-trade system for car- cuts, creating an emissions-trading mar- bon. “This is a critical step toward devel- ket to achieve the required reduction at 2005: A oping a national policy on global warm- lowest cost. This mirrors the successful year of ing and positioning the Northeast to acid rain provisions of the 1990 Clean progress 6 take advantage of the growing opportu- Air Act we helped design. nities with clean technologies” says our “Environmental Defense has been a president Fred Krupp. consistently positive force, finding ways With the Bush administration to bridge gaps between industry and the Saving San increasingly isolated in its stance on environmental side,” notes Franz Litz, Francisco global warming, states and businesses are New York State coordinator of climate Bay-Delta 8 stepping into the breach. The action by change policy. northeastern states allows the region to The accord was nearly derailed begin catching up with the rest of the when Massachusetts Governor Mitt industrialized world. Environmental Romney sought to include price con- Harvesting Defense played a critical role in making trols on the power plant program, this happen. We served on New York heartland Please see Governor George Pataki’s task force that energy 10 Cover Story, p. 2

Species on the brink 12

In response to Congres- sional attacks on the Endangered Species Act, Environmental Defense members across the coun- try speak out for protec- tion of rare wildlife. Lester Lefkowitz/Corbis Lester New horizons: Power plants in seven states—an area whose greenhouse gas pollution is as high as Germany’s—will be required to cut carbon dioxide 10%. WHERE WE STAND By Fred Krupp, President Mission possible: Reviving Gulf Coast wetlands Americans will not square miles of wetlands have been lost. urged Congress to appropriate $5.5 soon forget the Channeling the Mississippi River has billion for wetlands and to create an wrath of exacted a high cost. Nitrogen-rich sedi- independent commission to oversee Hurricane Katrina. ments that once nourished the wetlands this restoration effort. The full tragedy are being funneled over the continental Rebuilding healthy wetlands is hit home for me shelf, creating a dead zone in the Gulf of our best long-term insurance to on a recent tour of Mexico the size of New Jersey. protect coastal residents and infra- coastal Louisiana To fix the problem, we need to structure against damage from hur- with EPA adminis- ricanes, which will intensify with trator Stephen Johnson. Flying ––––– global warming. aboard a Blackhawk helicopter, we Rebuilding healthy wetlands I’m encouraged that the EPA retraced the hurricane’s path over is our best insurance. administrator wants to find a solu- open water that a century ago was tion. The agency has a key role to thick coastal marsh. Below we saw ––––– play as a partner with the Army shattered houses and huge oil tanks implement a plan to rebuild levees and Corps of Engineers in reviving torn from their bases. The areas restore wetlands. Reconnecting the coastal Louisiana. Now is the time to most damaged were those least Mississippi to its historic delta also will act. Every hour we delay, roughly two protected by nature’s armor. reduce the size of the Gulf’s dead zone. acres of wetlands sink into the Gulf. Wetlands lining the coast of Lou- The Senate has an opportunity to isiana provide a buffer against storms. start that process when it debates But since 1930, more than 1,900 restoration options in January. I have

Nation’s first regional cap on heat-trapping gases signed Continued from p. 1 which would have discouraged innova- pact. The cap-and-trade approach gives The initiative serves as a model for tion. Environmental Defense argued companies an incentive to find the other states and has ratcheted up the adamantly for a firm emissions cap and least-cost pollution reductions. “Far pressure for a national law. California, a robust market. Several of our board from breaking the bank, RGGI is a Washington and Oregon are exploring a members and strategic partners winner for the states’ economies and for similar agreement. “The Northeast will weighed in with governors at key consumers’ bottom line,” says our attor- be an important proving ground,” says moments to keep the rules strong. Our ney Jim Marston. Marston. “This initiative sets up a legal efforts paid off. Participating states already have and technical framework for how a Although Massachusetts and begun deploying plans to cut their emis- national program might work.” Rhode Island backed out, the remaining sions - and not just from power plants. seven states forged a strong bipartisan Several, including New York, recently adopted California’s landmark greenhouse gas law for cars Solutions and pledged to increase Editor: Peter Klebnikov reliance on renewable energy Environmental Defense, 257 Park Avenue such as wind power. South, New York, NY 10010. Main number 212- 505-2100. The support for RGGI Membership questions: Call 800-684-3322 or in corporate boardrooms and email [email protected] on Wall Street reflects the Mailbag: Mail to address above, call 800-927- realization of many companies 6464 or email [email protected] that some form of cap on car- ©2006 Environmental Defense. Published bon emissions is inevitable. bimonthly at New York, NY. ASSN 0163-2566 “The regulations will change New York • Washington • Oakland someday,” Cinergy CEO Boulder • Raleigh • Austin • Boston AP Photo Project offices: Los Angeles • Beijing Mainstream America is ready to tackle global warming. James E. Rogers told Business Super Bowl XL will offset its carbon dioxide emissions Week. “And if we’re not ready, Online at www.environmentaldefense.org by planting trees around Detroit. we’re in trouble.” 2 Environmental Defense Solutions Member 25 Main Street Anytown, NY 11199

Environmental Defense 257 Park Ave. South New York, NY 10003 MAILBAG Washington watch Editor: I was pleased to read your report on The Clean Air Act: 35 years of progress cutting back the use of antibiotics in pork production. I have a grandchild When the Clean Air Act passed in scrubbers would reduce pollution by and I am constantly concerned 1970, 88% of American children had more than 2.5 million tons and prevent about the safety of the food she unhealthy lead levels in their blood. 7,500 premature deaths annually. consumes. However, I do wish you Today the figure is less than 2%, would take your campaign one cru- thanks largely to that landmark law • Strengthen clean air standards for cial step further and address the and the resulting phaseout of lead in ships and locomotives. Without problem of industrial farming itself. gasoline, which Environmental stricter limits, these under-regulated Isabel Weisinger, Bronx, NY Defense helped achieve. sources will account for nearly half of Our scientist Dr. Joseph Rudek re- On the Act’s 35th anniversary, all diesel particulates by 2030. sponds: Large livestock operations there were plenty of reasons to cele- are a major source of pollution for brate: Pollution levels have fallen 50% • Close the loophole for boilers. Pollu- rural communities nationwide. We for sulfur dioxide, 52% for carbon tion from on-site boilers at industrial are leading the charge to require such monoxide and 75% for particulates— facilities is expected to rise over the next hog operations to install clean, even as the nation’s gross domestic decade to rival that from coal plants. affordable waste management tech- product has doubled. Opponents’ nologies. With our allies, we secured claims that the law would cripple the The original Clean Air Act passed be- a moratorium on hog farm expansion economy never materialized. cause Senators Howard Baker (R-TN) in North Carolina until the problems The Clean Air Act’s success stems and Edward Muskie (D-ME) set aside are resolved. Now we are helping from its mandate to base air standards their political differences and agreed convert hog waste to clean energy. Our goal is a national model for sus- on human health. Despite the progress, that healthy air is a national priority. tainable livestock production. however, the law remains under attack The legislation passed unanimously. in Congress and half of Americans still Today, we need a renewed commitment breathe unhealthy air. New studies indi- to grant all Americans clean air. cate that particulate pollution poses a greater threat than previously thought. Microscopic particulates lodge deep in the lungs and con- tribute to heart disease and lung cancer. Ray Pfortner/Peter Arnold Ray Pfortner/Peter Environmental Defense Editor: has published a report, The My wife and I flew from Sacramento Clean Air Act at 35, outlining to Corpus Christi (2 @ $450), rented cost-effective strategies to a car for four days ($300), stayed at cut particulate pollution over a nice bayfront hotel for three nights the next decade. Here are ($500), bought meals, drinks, maps, some priorities: gas, guidebooks and souvenirs and paid entrance fees to the Aransas National Wildlife Refuge to see a • Clean up existing diesel blurred white stick of a whooping engines. Retrofitting half of crane hunkered down a mile across the 11 million diesels on the the wetlands, and loved every soggy, road today would produce salty minute of it. Congress needs to $42 billion in health benefits. listen to taxpayers like us. Ian Baldwin, Elk Grove, CA • Modernize pollution con- Robert Holmes/Corbis WE WANT TO HEAR FROM YOU! trols for coal plants. Installing The Clean Air Act got the lead out of gas—and See addresses at left. modern controls such as America’s children.

www.environmentaldefense.org 3 Regional update

Going ‘local’ to help Houston air For years Houston has competed for the dubious distinc- tion of “most polluted U.S. city.” Now Environmental Defense has hired an air pollution expert there to advance an ambitious multiyear clean air plan supported by Hous- ton’s recently reelected mayor, Bill White—formerly a member of our Texas advisory board. “The timing is right to make progress on Houston’s air problems, which are also public health problems,” says our expert Betin Santos. Our initiative is focused on reducing diesel pollution Lane/Corbis Frank in the region. We’re working with parents to push Texas to Our earliest victory was a ban on DDT, a pesticide that harmed clean up aging school bus fleets. School buses remain the osprey and other wildlife. DDT is no longer used in America, safest way to transport children to school, but harmful diesel but now Long Island’s ospreys face a shortage of a key food. pollution can get trapped in the cabins, exposing children, The little fish that plays a ––––– who are particularly vulnerable. big role in the chain of life We’re working with We’re encour- parents to clean up aging local govern- Every spring, after an ardu- funding to begin reengineer- polluting school buses. ments to reduce ous migration from South ing and in some cases dis- emissions from America, ospreys come to mantling the dams, allowing ––––– diesel construction New York’s Long Island to for fish passage on rivers equipment on public works projects. The city of Houston replenish their strength and such as the Carmans. A will soon begin offering contractors a cash bonus for using to breed. Ospreys in the area series of fish ladders will cleaner equipment. We’ll track progress and call for have been reproducing at a allow alewives to resume improvements if this program doesn’t cut diesel pollution low rate, however. Scientists their historic journey. fast enough. suspect the problem may be “For too long we’ve We’re also promoting technologies that allow long-haul due to a decline of alewives, ignored the important fish truckers who now idle their diesel engines overnight to shut or river herring. lower on the food chain,” down their rigs instead. One option is to outfit area truck Ospreys and other key says our scientist Dr. Jake stops to provide air conditioning, electric power and Internet predators depend on this Kritzer. “We need to manage connections at a lower cost than running the trucks. humble fish for nutrition. But the average catch of alewives ––––– is less than 3% of what it was Helping alewives in the 1960s. Overfishing, complete a historic pollution and barriers to journey migration are to blame. As spring approaches, ––––– alewives begin migrating from the oceans from an ecosys- the Atlantic into Long tems-based perspective.” Island’s streams to spawn. “This would not have Usually, their journey ends at happened without Environ- a concrete wall. Dams, many mental Defense,” says An- of them obsolete, block nearly thony Graves, Brookhaven every major alewife nursery. Town’s environmental ana-

Richard Cummins/Lonely Planet Cummins/Lonely Richard Environmental Defense lyst. “Soon, ospreys, seals and Houston, we have a solution. assembled a coalition and game fish will benefit. We’re secured $1.5 million in state thrilled.” 4 Environmental Defense Solutions Unlocking the secrets of nanoparticles We call them “Team Nano”: Environmen- Fred Krupp and DuPont tal Defense experts in science, health, CEO Chad Holliday that business and law championing the safe called for corporate stan- development of nanotechnology. Like the dards, better regulations atomic-scale particles they work on, and $100 million annually they’re having an outsize impact on the in government funding for business world. risk research. The In the past year, our calls for more NanoBusiness Alliance and research, better regulation and heightened the American Chemistry corporate responsibility have been heard in Council’s nanotechnology national newspapers, the scientific press, panel joined us in calling law journals and the U.S. Congress. As our for increased research, while scientist Dr. Richard Denison told the the Environmental Law

House science committee in November, Forum and National Tim Fonseca we’ve developed “a convergence of views” Academy of Sciences pub- Tiny nanomachines known as “respirocytes” could one day with industry and the insurance and invest- lished our articles on steps operate as artificial red blood cells. ment communities. The consensus? This needed to insure that this technology does We’re now working with EPA, the Nation- new science can revolutionize industry, but not go the way of asbestos or DDT. al Institutes of Environmental Health it’s necessary to investigate early warnings Writing in the San Jose Mercury Sciences and international standards organ- that some nanoparticles may pose risks to News and The Boston Globe, we urged izations on research and standards. And human health and the environment. leaders in those nanotech hubs to most recently, DuPont and Environmental Our emergence as a leading voice on “unleash the power of this technology Defense have agreed to collaborate on a nanotechnology began last summer with a while containing its risks.” framework for the responsible production, Wall Street Journal op-ed by our president The message is getting through. use and disposal of nano-scale materials.

Congress moves to end corruption in international lending Peace, rain, wealth is the motto of According to the World Food Program opment banks continued financing Lesotho, but this once-fertile mountain half of Lesotho’s population—almost projects involving the guilty companies. nation has experienced little of these one million people—need food aid. Alarmed by the waste of taxpayer since a massive World Bank–funded Tragically, this story is far from money, Senator Richard Lugar (R-IN), dam project began piping its water to unique. Development banks have poured chair of the Senate Foreign Relations neighboring South Africa. Four years of billions into large projects in Africa that committee, examined the corruption. He severe drought have left crops withered reap bonanzas for large corporations but consulted Environmental Defense in the fields, and royalties from water fail to benefit the poor. Corruption is a experts. We helped arrange visits to trou- sales haven’t helped poor farmers: major factor: Since the World Bank bled projects and provided testimony to began lending four decades the committee. We also brought the lead ago, up to $100 billion may prosecutor from Lesotho to testify. One have been stolen by corrupt week later, the World Bank barred one of officials, according to a recent the construction firms, Acres Interna- study. tional, from projects it funds. Rich lenders often This fall, President Bush signed blame developing countries, into law reforms championed by Lugar. but Lesotho set out to prove These call for financial transparency corruption goes both ways. and for a grievance process for people The country won convictions displaced by development. “The banks against three of the world’s are on notice,” says our policy analyst

Lori Pittinger/IRN largest construction firms for Shannon Lawrence. “Congress will be Driven from their land by a World Bank–funded dam, paying bribes to win con- watching to ensure tax dollars benefit Lesotho’s Highlands people face an uncertain future. tracts. Stunningly, the devel- the poor, not corrupt officials.”

www.environmentaldefense.org 5 Thanks to our members’ support, 2005 saw progress on some of the planet’s most serious environmental chal- lenges. Here are some of this year’s milestones: 2005 CLIMATE ECOSYSTEMS As melting polar ice and devas- As the House voted to dismantle the Endangered Species tating hurricanes spotlighted Act, property owners across America joined our Safe the impacts of global warming, Harbor initiative, proving to Congress that species’ and states, mayors and corporations landowners’ needs are not incompatible. stepped forward to reduce the greenhouse gas pollution that is January: Supporting farmers who choose to conserve. at the heart of the problem. We help secure $207 million for the restoration of wet- lands and floodplains in Ohio to protect rare species and March: Rainforests preserved. waterfowl habitat. To reduce tropical deforestation, which accounts for 20% of glob- March: Shelter for ocelot. We partner with Texas al warming pollution, we help landowners and Pronatura Noreste, a Mexican environ- preserve 85,000 square miles of mental group, to create a cross-border habitat to pre- threatened rainforest in the serve the last wild population of endangered ocelots.

Getty Images Brazilian Amazon. June 21: Clearing June 1: Leadership in California. Acting on our sugges- the haze in na- tions, California Governor Arnold Schwarzenegger issues tional parks. Our an executive order for the state to reduce its greenhouse court-ordered gas pollution 80% by 2050. consent decree forces EPA to June 28: The Senate makes a promise. Endorsing a mar- reduce pollution ket-based approach we pioneered, the U.S. Senate passes from power plants a resolution that calls for a mandatory national cap on that contribute to global warming pollution. Business announces a readiness haze in 156 to act: “Give us a date, tell us how much we need to cut, national parks give us the flexibility to meet the goals, and we’ll get it including Acadia, done.” Wayne Brunetti, CEO of Xcel Energy, Business Week. Grand Canyon and Yosemite. August 29: Hurricane Katrina smashes the Gulf Coast. Brakefield/Corbis Tom With the number of category 5 hurricanes projected to Continued on next page increase due to global warming, we redouble our efforts to restore critical wetlands protecting New Orleans.

November 9: New York chooses cleaner vehicles. At our HEALTH urging, New York State adopts California’s stringent limits The most important clean air program in 15 years took on greenhouse-gas pol- hold, along with new initiatives to protect the effective- lution from automobiles. ness of antibiotics and clean up diesel exhaust.

December: Cleaner January: A voice for inner cities. Our negotiations with delivery trucks honored. Los Angeles International Airport result in $500 million With FedEx, we are in environmental and job benefits for communities awarded a Calstart Blue affected by airport expansion. This is the largest such Sky Award for our agreement ever made. “...nearly single-handed placement of commercial March 13: EPA rule advances public health. The Clean Air hybrid trucks on the map Interstate Rule we helped develop requires eastern states for corporate America.” to cut sulfur dioxide 70% and nitrogen oxides 65% from NASA Continued on next page

6 Environmental Defense Solutions The year in review

Ecosystems continued OCEANS September 30: An attack on endan- Fishermen became our allies in suc- gered species. The House passes a cessful campaigns to preserve critical bill that would cripple the Endangered ocean habitat and introduce market- Species Act. Released just in time, our based methods for recovery of trou- report galvanizes opposition in the bled fisheries. Senate. 25,000 of our Action Network members call on Congress not to March 30: Keeping fish oil healthy. Tim Connor demolish species protections. We publish a survey of 54 major producers of fish oil supplements tect the largely uninhabited island examining whether they meet their chain and its coral reefs, which responsibilities to test for dioxins, stretch 1,200 miles across the PCBs and mercury. The survey Pacific, sheltering numerous endan- urges consumers to buy from those gered species. companies looking out for the pub- lic’s health. October: Preserving a way of life. We help Cape Cod fishermen form a co- June: Defending fish and fishermen. op that grants members a percent- Nearly 6,000 square miles of under- age of the catch of depleted stocks sea habitat off the California coast is such as cod, curbs overfishing and Photocomposition: Greg Richardson/Level Par Richardson/Level Greg Photocomposition: protected thanks to our work with helps fishermen market their sus- November 13: Toward rebirth of a commercial fishermen who help tainably caught products. fabled valley. Our report showing the identify prime fishing spots. “This is feasibility of restoring Hetch Hetchy revolutionary,” notes Jay Elder, har- December: Reeling in better seafood. Valley inspires broad support and a bormaster of Port San Luis. “Fisher- A leading retailer, Wegmans Food Schwarzenegger administration study. men never tell you their secrets.” Markets, joined with us to promote “There is no opportunity like this any- environmentally sound seafood. In where in the world—to add another September 29: New rules for our partnership, we’re helping the Yosemite Valley to our great National Hawai’i. The Northwestern Hawaiian supermarket chain develop purchas- Park System.” Donald Hodel, Pres- Islands State Marine Refuge is cre- ing standards and market top-quality ident Reagan’s Secretary of the Inter- ated. More than 20,000 of our mem- farmed seafood that does not deplete ior, in the San Francisco Chronicle. bers help convince the state to pro- the oceans.

Health continued help create a plan to cut sulfur dioxide power plants. EPA says it will prevent 10% below 2000 levels. Our market-based 17,000 deaths a year by 2015. The projects are already at work on one-third rule delivers “...the largest pollution of China’s sulfur dioxide emissions. reductions and health benefits of any air rule in more than a decade.” September: Keeping antibiotics effective Stephen Johnson, EPA Administrator. for humans. Responding to our campaign against antibiotic resistance, the FDA bans June 28: Tackling diesel pollution. a key antibiotic in poultry. With the Com- In the Senate we help develop and pass Group, we create a policy curtailing pass by a vote of 92 to 1 the biparti- growth-promoting antibiotics in hogs. san Diesel Emissions Reduction Act. It commits $1 billion to clean up diesel exhaust from trucks, December: Out front on nanotech. We launch a partner- ships, school buses and tractors nationwide. ship with DuPont to develop safety measures for nano- technology, the fast-growing science of engineering September: China seeks a solution. We’re invited by China to materials at the molecular level.

www.environmentaldefense.org 7 San Francisco’s delta blues an indicator of the biologi- diversion of water to farms and cities. cal health of the entire Many smelt preparing to spawn are Bay-Delta ecosystem,” says chewed up by water pumps. Since smelt our water resource analyst have only a one-year life cycle, one bad Ann Hayden. year can be devastating. The Bay-Delta is the In 2000, the state adopted a plan largest estuary in the West to help the fish and restore the Bay- and an area of unsurpassed Delta’s ecological health, but it wasn’t ecological importance for funded adequately and the environment salmon, migratory waterfowl was robbed of critical water. Environ- and more than 750 plants mental Defense testified before govern- and animals. Extinction of ment agencies and issued a report, California Dept. of Water Resources Dept. of Water California the smelt “would be an Finding the Water, proposing solutions to The Bay-Delta is the source of fresh water for two- unspeakable tragedy,” says restore the Bay by providing more water thirds of Californians and five million acres of farmland. Our goal is to provide water for the environment when Bill Kier, a Sausalito fisheries for the environment and shutting down it’s needed most. consultant. “It plays a central pumps when they harm fish. role in the Delta food web.” We are also negotiating with water The tiny Delta smelt is no poster fish Adds EPA biologist Bruce users for a user fee program to fund such and has no support group. Nevertheless, Herbold: “Something is definitely solutions. “If a resource is scarce we ought the smelt’s precipitous decline in the wrong.” Scientists say the smelt’s to put a price on it that reflects its value,” San Francisco Bay-Delta has anglers, decline has many causes, including says our regional director Tom Graff. Native American groups and state invasive species and chemical runoff, “Otherwise there’s an incentive to over- agencies sounding the alarm. “Smelt are but the main culprit is the massive consume the resource.”

Environmental Defense joins suit against automakers When Environmental Defense helped automakers are on the wrong side of the from consumers’ increasing interest in pass landmark clean car legislation in science and the law on this issue, but a fuel-efficient vehicles. One hopes California in 2002, the auto industry new survey we commissioned by R.L. Detroit will start investing more in vowed to fight it in court. So instead Polk & Co. shows they’re on the wrong energy-efficient cars and pickups and of investing in engineering to meet the side of their customers as well—even the less in high-octane lawyers. public’s demand for more fuel-efficient drivers one might least expect. Contrary For a summary of our pickup truck cars, the industry is deploying a fleet of to the images that fill TV ads, pickup driver survey results, visit: www.envi- lawyers to block this first-in-the- truck drivers are less concerned about ronmentaldefense.org/go/pickupstory. nation effort to cut global warming having the power to pollution from cars. haul loads and crash Last month a judge ruled that through the backcoun- Environmental Defense, as a prime try than about having mover behind the law, and several other better gas mileage. The environmental groups could join the poll found that pickup fight to defend the statute in court. drivers rate increased “With no action on global warming fuel economy almost as from the federal government, it’s critical highly as all other that we defend these state laws,” says potential improvements our attorney Jim Marston. Meanwhile, combined. we have been encouraging other states With pickup to adopt California’s approach, produc- sales flat and SUV

ing similar laws in New Jersey and sales in decline, the Images Don Johnston/Getty Connecticut, with more on the way. auto industry should Contrary to television ads, pickup truck owners care more It was already clear that the be poised to profit about fuel economy than the thrills of off-road travel.

8 Environmental Defense Solutions Finding the ways that work SUCCESS STORIES FROM THE FIELD Climate talks aim to preserve forests that reduce deforestation United States had to go along. were also launched. The “Our plan brings developing coun- cutting of forests is the tries into the fight to cut global warming single largest source of pollution,” says our climate analyst Gus greenhouse gases in the Silva-Chavez. Negotiators now have two developing world. years to work out the details. Financial incen- tives for protecting trop- Silicon Valley ical forests are weak, and Kyoto doesn’t address leaders join fight the problem. Environ- against warming mental Defense has worked painstakingly for Tui De Roy/Minden Pictures De Roy/Minden Tui Tropical deforestation accounts for some 20% of global years to enable the warming pollution, nearly as much as total U.S. emissions. countries that curb the destruction of their Despite U.S. opposition, over 150 nations forests to earn tradable credits. We meeting in Montreal in December agreed demonstrated the benefits to local part- to negotiate new commitments for the ners and convened 20 top remote-sens- Kyoto climate treaty after it expires in ing scientists to verify that deforesta- 2012. Thanks to an innovative proposal tion can be accurately measured. In

by Environmental Defense and partners Montreal, when every other nation AP Photo in Brazil, Papua New Guinea and Costa (including Brazil, previously an oppo- For Joy, climate action is a no-brainer. Rica, talks on compensating countries nent) supported the parallel talks, the As state officials began figuring out how California will reduce greenhouse gas Victory in California waters pollution 80% by 2050, three visionary Six years ago, when our scientist Dr. Rod recovery target three years ahead of sched- entrepreneurs joined Environmental Fujita proposed protecting thousands of ule, with other rockfish also improved. Defense in highlighting the dramatic miles along the Pacific coast, he ventured “These fish are voracious carni- opportunities ahead. In a letter to state an optimistic forecast. Though lingcod, a vores, apex predators like lions or tigers,” officials, the three Silicon Valley leg- valuable fish found only in those waters, said Fujita. “Top predators depend on ends, John Doerr, Bill Joy and Ray were down to 10% of natural levels, he everything below. So if they’re healthy, Lane, reinforced our call for a mandato- maintained that giving them a few years that’s often a good indicator of health ry cap on greenhouse gas emissions and respite from fishing to grow larger would throughout the food web.” a carbon trading market to create incen- ensure recovery. “Because big tives for innovation. California firms can lingcod produce many more profit from new technologies and the eggs than small lingcod, we global market, the three noted. knew they would respond well Doerr, a partner at the prominent to protected areas,” Fujita said. venture capital firm Kleiner Perkins It wasn’t easy for local Caulfield & Byers and a longtime friend fishermen. To comply with new of Environmental Defense, enlisted Joy, conservation areas, they quit the co-founder of Sun Microsystems, harvesting even healthy popula- who was once called “The Edison of the tions of chili pepper and other Net” by Fortune, and Lane, former CEO rockfish, which live in the rocky of Oracle Corporation. The three bottoms among the depleted pledged to help us “galvanize support lingcod. But the painful meas- racerocks.com from California business leaders” for ures paid off. A new assessment The lingcod, which can grow to 80 pounds, is prized these ideas and help lead the nation shows lingcod has exceeded its for its taste, not its looks. toward a low-carbon future. www.environmentaldefense.org 9 In depth Can the Midwest replace the Mideast? AS BIOFUELS BECOME AMERICA’S HOTTEST NEW ENERGY SOURCE, A CAMPAIGN BEGINS TO ENSURE THEY BENEFIT THE ENVIRONMENT

he 255 residents of Lakota, IA, had A growing Tto scrimp to finance a new plant to number of cars on turn local corn into fuel. Last year, those the road can run on farmers reaped $5 million in dividends, a gasoline mixed with 25% return. ethanol. Advocates Today’s hottest domestic energy say biofuels will Gibson Photography market doesn’t involve derricks and black reduce dependence Homeland security: Turning crops into fuel brings money to strug- gling American farmers and reduces dependence on foreign oil. gold, but corn stalks, manure, even palm- on foreign oil: one oil waste from making M&Ms. The Wall consortium of growers, the Agricultural Even before that, the regulations we Street Journal calls the biofuels rush “the Working Group, has called on farmers to helped develop in California—requiring biggest investment movement in rural meet 25% of America’s energy needs by automakers to cut global warming pollu- America in decades.” While new oil re- 2025. Biofuels also are touted as a way tion 30%—should get the market rolling. fineries go begging for a home, Mid- to reduce petroleum emissions that con- The potential for carbon reduction western towns welcome ethanol plants, tribute to global warming. is immense: Turning the 400 million hoping for new jobs and markets for their tons of U.S. agricultural wastes currently crops. The jump in oil prices helped, push- NOT ALL BIOFUELS ARE available annually into cellulosic ethanol ing ethanol’s price up 40% in two years. So CREATED EQUAL would provide 35 billion gallons of fuel, did the 2005 Energy Bill, which mandates But—and this is a big one—the emissions equivalent to about two-thirds of the annual production of 7.5 billion gallons of reductions from biofuels vary enormously, petroleum that we now import from the biofuels by 2012. Though focused on con- depending on how crops are grown and Middle East—and cut America’s global ventional grain ethanol, the bill also credits how the fuel is made. Do farmers forgo warming pollution 5%. “cellulosic ethanol” made from agricultural plowing to keep carbon in the soil? Do Many of the technologies needed to wastes, biodiesel made from fats and oils, they cut back on nitrogen fertilizers, which make low-carbon ethanol already exist. In and biogases, like the methane from feed- release a potent warming gas? Is the fuel ––––– lots that can be captured and burned. made from the grain or, more efficiently, from “stover”—the stalks and leaves? Turning our agricultural U.S. ethanol production As yet, the market takes no account wastes into ethanol could of those questions. “The existing market 8 supply more than half the sends no signal to these fuels that there’s energy we now import from value in being low-carbon or low-energy 6 input,” says Environmental Defense poli- the Middle East. 4 cy analyst Sara Hessenflow Harper. “You ––––– get tax credits for ethanol no matter how pilot projects in Kansas, Louisiana and 2 it’s produced.” the Pacific Northwest, we’re helping no- To build the right market incen- till farmers measure and sell the carbon 0 tives, Environmental Defense has begun they keep in the ground. In New York, Billions of gallons per year Billions of gallons 1980 2005 2012 (est.) working with commodities groups and we’re helping dairy farmers do the same Production has increased sevenfold since farmers to develop a low-carbon certifica- with captured methane: By burning the 1980 but remains a “drop in the bucket” tion for biofuels. Ultimately, when gas for power, they cut its global warming compared to the 300 billion gallons of oil national carbon caps are in place, certified impact 18-fold. the U.S. consumes each year. ethanol will command a premium price. And new technologies are emerging. 10 Environmental Defense Solutions A Canadian company using a fungal In the tradition digestive enzyme to break cellulose into of Environmental Lock in a fixed return with a charitable gift annuity sugar predicts its $300 million refinery will Defense, we are not Receive a fixed amount of income for make ethanol for $1 a gallon. E3 Biofuels trying to guess the life through a charitable gift annuity of Omaha has created a closed loop: an best technology in with Environmental Defense. You can donate cash, securities or real anaerobic digester converts manure into advance, but setting estate and we promise to pay you a methane gas, which powers an ethanol an ambitious envi- fixed sum for the rest of your life. A plant; the leftover mash is fed to the cattle. ronmental perform- charitable gift annuity provides you As a key step toward reaping the ance standard and with excellent tax and income bene- fits and will enable us to continue working to curb global warming. potential of such innovations, our chief letting the market scientist Dr. William Chameides has find the cheapest For additional information, please contact Anne Doyle, Environmen- tal Defense, 257 Park Avenue South, New York, NY 10010; 877-677- developed a balance sheet comparing the and best way to 7397; [email protected]. global warming impact of various biofuels. meet the goal.

How to grow fuel that’s good for the planet Burning a plant to create fuel adds no net carbon to the conversion and transportation. Environmental Defense is atmosphere. The amount released is equal to the amount working to improve land-use and energy-production absorbed during photosynthesis. What tips the balance is practices to right that balance. We also want to ensure the energy used in farming—for plows and harvesters, that farmers can earn money by cutting carbon. for the manufacturing of pesticides and fertilizer—and in Here’s how:

Sustainable Ecosystem protection: Ecologically farming: vulnerable lands should not be used No-till farm- for bioenergy crops. Incentives should ing stores be increased for planting forests, carbon in which provides the soil. Cut- the greatest ting back on fertilizers reduces emissions reduc- nitrous oxide, a potent green- tions per acre house gas. And leaving just and filters air and 40% of stalks and leaves in the water. field renourishes soils.

Choosing the right crop: Making ethanol from corn requires lots of Efficient conversion: energy and fertilizers, yielding Small scale, widely small net reductions in emissions. distributed bio- Bigger gains come from using fast- refineries reduce growing crops like transportation costs switchgrass. The and energy use. So most immediate does the use of waste products: gains will come Lignin, the part of a plant that can’t be from converting converted to sugar, can be burned to wood chips and power the biorefinery; the leftover other wastes. mash can be fed to livestock. Background photo: Mitch Diamond/Image State; clockwise from top left: USDA; Photodisc; pioneer.com; Grant Heilman Grant pioneer.com; Photodisc; USDA; left: top from clockwise Diamond/Image State; Mitch photo: Background

www.environmentaldefense.org 11 Americans speak out for endangered wildlife The Senate may take up a bill in coming How could we let the very symbol weeks that seeks to dismantle the En- of our country—the bald eagle— dangered Species Act, despite the law’s even get close to being a threatened success in aiding the recovery of hun- species? How could we choose to let dreds of species like the grey wolf, grizzly any animal be lost to the world and bear and bald eagle. Last fall, by a nar- future generations? row margin, the House passed a bill Diane Zipper, Portland, OR championed by Rep. Richard Pombo (R- CA) that would repeal basic safeguards. It would also force the government to pay Last year, my fiancée and I went developers for not building on habitat camping near Horseshoe Bay, FL. used by endangered species. What looked like a small deer came Editorials across the country decried walking toward us on the trail. We the action. With the Senate soon to froze and checked out the critter debate these disastrous changes, we asked through the binoculars, only to see our members to share their own encoun- we were encountering a Florida ters with rare wildlife and urge the Senate panther! It was one of the most to maintain protections. We received over exhilarating moments of our lives. 1,000 inspirational stories from across Joshua Stoltz,

America, each different and passionate in Hallandale Beach, FL Animals Stone/Animals Lynn its own way. Here are a few: Rare encounter: About 50 Florida panthers remain.

Twice in the last year I have been priv- our boat and I found myself staring into its When I was 17, I was driving with a ileged to witness a peregrine falcon eye ... about five feet away! We looked at friend along the Snake River on the devour a meal right in my own yard. It each other for a long moment and then the Oregon-Idaho border. A shadow passed was an awesome sight I will never for- whale quietly submerged and swam away. over the car, and we looked up. An enor- get, and I am grateful for the law that Ina Mitchell, mous bald eagle was flying ten feet above brought this species back. You wouldn’t Woodland Hills, CA us. Its wingspan was the width of my car, doubt its worth if you’d seen my son’s and it was clutching a fish in its claws. awed expression. YOU CAN HELP! Trudy Loy, Amherst, NH Do you have a story of an encounter with rare wildlife that you’d like to share? Please send it to us. We will make sure the U.S. Senate gets your message in support of continued wildlife protec- While I was in Hawaii, a hump- tion! See our address on page 2, or visit back whale surfaced right next to www.environmentaldefense.org/action.

What they’re saying about Environmental Defense “Environmental Defense is a highly respected organization offering technical solutions for industry’s environmental challenges.” —August 2005 report on nanotechnology by Innovest, James Watt/Animals Animals James Watt/Animals a leading financial firm that analyzes Humpback whales are celebrated for their mysteri- corporate environmental performance. ous songs. Solutions

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