Tuesday, April 26, 2011

Mr. Coal Makes His Case

Last Tuesday Craig Cole, representing the SSA Marine, the company that wants to build the Gateway Pacific Terminal at Cherry Point, spoke at the Birch Bay Chamber of Commerce. From the view of executives in Seattle, Craig Cole might seem to be a good choice – a native of Whatcom County, once a member of the County Council, who ran a third-generation business and serves on the WWU board. But up close he is unconvincing.

Yes, there were folksy local references – as a boy he spent summers in Birch Bay – yet he stuck close to a power point presentation and the pretty SSA brochure that summarized on its front cover: “America needs a new export facility; Cherry Point is the best location; Hundreds of permanent jobs, millions in tax revenues; It's the right idea, the right place, the right time; Let's get America moving again.”

But Cherry Point deserves better than slogans. What was missing from Mr. Cole's presentation is an understanding and a vision of Whatcom County in the 21st Century that combines traditional industry with clean jobs utilizing technology. Why are students in our high schools studying math and chemistry and physics? How can WWU be harnessed in bringing our county into this century? Mr. Cole could speak as a statesman rather than a salesman for one company's solution.

He said that criticism raised by the terminal's critics are only “half right.” Yet he refused to identify those points that he believes are wrong.

Bellingham's Mayor Dan Pike, in attempting to make sure that “accurate facts about the project are put on the table,” produced a two-page outline that can be found at: www.cob.org

When I started to mention this at the meeting, Mr. Cole was quick to say he is a good friend of Mayor Pike. When I asked if he had read the outline he said he hadn't. Then I read one line: “Who will underwrite the cost of mitigation factors,” and said: “If you're so sure the project is safe, indemnify Birch Bay, for the shellfish, values of condos, etc. Have your friends at Goldman Sachs write a bond contract with their friends at AIG.” Mr. Cole shot back, “Mayor Pike has no jurisdiction.”

Technically, perhaps not, but influence?

ak

Tuesday, April 19, 2011

Could Coal Trains Be A Black Swan In Our Future?

The Black Swan is a concept of the destructive unexpected event that was popularized by Nassim Nicholas Taleb, a Lebanese-born short seller who became an acclaimed book author after becoming very wealthy shorting the bubbles of the last decade. Typically, these bubbles are perceived at the outset as great opportunities. So was greeted the news that SSA Marine, the giant, worldwide port operator had gained an opportunity to build the Gateway Pacific Terminal at Cherry Point to load trains of coal from Montana on to ships for China.

SSA Marine, having sought this opportunity for years, came on with a blitzkrieg PR campaign to gain the support of most office holders in the state from the governor to the mayors of Lynden and Ferndale, who posed for ads supporting the terminal. Why not? This means jobs and increased tax revenue. For Birch Bay it could mean well-paid buyers of houses and lots that have been hard to sell and new houses, perhaps more new developments like Bay Crest.

Andy McCauley, president of the Bellingham Port Commission, told a group of Birch Bay residents at a recent information breakfast that, having grown up where coal is burned, he hates it, yet he is supporting the terminal because it means “economic opportunity.”

But, unlike most Black Swans that are “unexplainable and unpredictable until after the fact,” this bird is being met head on. The arguments fall into three categories:

Global Environmental Ethics – Are we increasing global warming by sending coal to China? On the other hand China will get coal from elsewhere and, if they buy it from us, the U.S. will reduce our imbalance of payments. A third hand would be that the Chinese may invest the money and engineering skills to make “clean coal” a reality.

Noise and Congestion – If projections are met, there may be as many as 14 trains, as long as a mile and a half, running through Bellingham and Ferndale daily.

Health Degradation – In a letter published by the Northern Light on March 10, Don Pitcairn, president of Surrey's United Naturalists reported on the experience of residents of the Tsawwassen First Nation's reserve, located next to the Delta Superport that is British Columbia's “gateway.” He included airborne coal dust pollution, and black tide caused by particulate from trains, ships and trucks plus a stagnant seashore due to currents impeded by causeways.

In a letter to community members Bob Ferris, executive director of ReSources, quotes a warning from Cherie Eichholz, executive director of Washington Physicians for Social Responsibility that, “Coal dust has been linked to respiratory diseases.”

Bob Ferris – the full title of his organization is ReSources for Sustainable Communities – is the captain of the folks who are standing up to the advocates who include Peabody Coal, Goldman Sachs, that owns 49 percent of SSA Marine and Warren Buffett, a principal owner of BNSF, the railroad that will haul the coal from Montana and Wyoming. Information about “No Coal at Cherry Point” can be found at www.re-sources.org.

A comprehensive article on the subject was published in the April issue of Whatcom Watch (www.whatcomwatch.org). It was written by Dr. Preston Schiller who teaches courses on transportation planning and environmental issues at Huxley College of the Environment at Western. He studied the coal industry in West Virginia and worked on U.S. Clean Air Acts.

The permitting process will involve many agencies from the Whatcom County Council to NOAA and is expected to take four years. There will be ample opportunity for Birch Bay community members input including the election of county council members and the county executive.

In addition to the above sources, Jeremy Schwartz has been providing balanced reporting in the Northern Light. And you can expect the Cascadia Weekly to provide reporting and offer opinion.

ak

As always, comments are eagerly sought.

Thursday, April 7, 2011

Vote YES on School Bond

Ballots are arriving this week. Although the election date is not until April 26, there is no reason to wait. In advertising, presentations to civic groups and campus tours Superintendent Ron Spanjer has made the case that the school buildings, particularly in the high school, need to be restructured. Others who have inspected the facilities have confirmed the need in letters to the Northern Light.

In 2008 the vote for a $40 million bond failed. (At the same time a 4-year maintenance and operations levy was approved.) This year's reduced request, $32 million, represents a re-evaluation of priorities and includes $2 million to buy property for an eventual Birch Bay elementary school.

With the economy down and voters increasingly cautious, you might ask why is the school board asking for the vote now. The answer is that, with interest rates at historic lows, the cost of the 12-year bond is lower now than later; construction bids can be expected to be lower.

Hearing and reading so much in the news about the failure of the nation's schools, I was pleased to hear Mr. Spanjer's comments on the quality of the Blaine High School in his talk at the Birch Bay Chamber of Commerce in February:

  • Advanced Placement – that is students completing college-level courses – is up for the 4th consecutive year;
  • BHS is recognized as an “exemplary level school” on the State's Accountability Index;
  • Last year the high school completion rate passed 90 percent for the first time.

My high school class started in 1944 with 100 students and graduated 34 in 1948. You understand why I am impressed with that 90 percent.


ak