Carbon Tax in the European Union's Future? European Commissioners Discuss Carbon Tax, But no Decision Yet

Discussion of a possible European Union carbon tax emerged again recently as the EU's executive body, the European Commission, considered whether to propose legislation to tax carbon emissions.

According to euobserver.com ("EU Carbon Tax Kicked Into the Long Grass," June 24, 2010), the proposal provides "[F]rom 2013, sources of greenhouse gases that are not currently covered by the EU's flagship environmental endeavor, the emissions trading scheme -- sectors such as agriculture, as well as transport and households -- would see a flat minimum fee of between 4 and 30 euros per ton."

The story went on to report that, "One clear line did emerge from the debate, which was that the commission backs a common EU carbon dioxide minimum taxation rate, so member states would not compete amongst each other in offering less onerous rates."

However, the steps in actually moving from a commission discussion of the tax to actually getting it enacted into law are formidable and perhaps even impossible. If the commission does agree to submit a proposed piece of legislation the measure will need to be approved by the European Parliament (not entirely impossible) and then by the Council of the EU. It is at Council level that the real difficulty will be encountered by proponents since the Council -- made up of the ministers responsible for taxation in the 27 member states -- will need to vote unanimously to approve the measure. This is nearly tantamount to impossible.

Nevertheless, while the U.S. becomes more and more bogged down in its own energy legislation, the matter of a carbon tax in Europe should enliven things if only just a little. It does seem worth wondering what the reaction among Europeans might be if they knew that household activities might be subject to a carbon tax.

--Don Smith

NREL Director Dan Arvizu Tells Economic Club of Kansas City, "Renewable Energy Can Help Reduce Oil Dependency"

Dan Arvizu, director of the National Renewable Energy Laboratory, which is located about 25 minutes from the Sturm College of Law, said recently, "The profound implications of the Gulf oil spill offer still more proof that our nation must forge a new energy future -- one that should be, and can be, both environmentally and economically sustainable."

Speaking before the Economic Club of Kansas City, Dr. Arvizu did not discount the role of fossil fuels in today's American energy picture. But he also noted the serious longer-term consequences that the nation will face unless a strategic commitment is made to transitioning away from foreign fuel supplies.

Click here to read the full-text of Dr. Arvizu's remarks. Or click here to watch his remarks.

The Sturm College of Law is establishing itself as a leader among U.S. law schools in teaching about renewable energy policy, finance, and project development.

Rebecca C. Watson, Former U.S. Assistant Secretary of the Interior and DU Alumnus, Joins Denver Law Firm

Rebecca C. Watson, former Assistant Secretary for Lands and Minerals Management of the U.S. Department of the Interior from 2001-2006, has joined the Denver and Casper, Wyoming-based firm of Welborn Sullivan Meck & Tooley, P.C. as a partner. She will work in the Denver office.

Ms. Watson, who has bachelor's, master's, and JD degrees from the University of Denver, is one of the most esteemed graduates of the Sturm College of Law. She has more than 30 years of legal and policy experience in the fields of conventional and renewable energy, natural resources (grazing, mining and timber) and federal environmental law. She has worked in private law practice and in high level federal government positions.

As Assistant Secretary of the Interior Department she had oversight of three organizations: the Bureau of Land Management (BLM); Minerals Management Service (MMS); and the Office of Surface Mining (OSM). These organizations were responsible for management of federal energy resources. In that role, she led 12,000 employees and managed a $1 billion budget.

Ms. Watson was honored by the Boone and Crockett Club, the oldest U.S. organization dedicated to the conservation of wildlife, for her work in conservation while at the Department of Interior.

Prior to her service in the Interior Department, she served as the Assistant General Counsel for Energy Policy at the U.S. Department of Energy in the George H.W. Bush administration.

In her practice Ms. Watson focuses on public land access and energy development for solar, wind, geothermal, wood biomass, and oil and gas with an emphasis on federal environmental law.
Ms. Watson is a member of the Rocky Mountain Mineral Law Foundation and the National Petroleum Council. She serves on the boards of the Independent Petroleum Association of the Mountain States and the Jefferson County (Colorado) Open Space Commission.

Students studying environmental, natural resources, and energy law at the Sturm College of Law are likely to hear Ms. Watson speak in the fall 2010 semester about her career as well as the key environmental and energy issues of the day. Graduates such as Rebecca Watson are one reason the Sturm College of Law environmental and natural resources program is one of the strongest of its kind in the U.S. and the western hemisphere.

A Fundamental Change in U.S.-Latin American Relations? It is About Time

There are many reasons that the United States and its neighbors in Latin America should work closely together. Not least of these is the abundance of national resources in Latin America. But over the course of time, the relationship between the U.S. and many Latin American countries has not been an easy one. There are many reasons for this that go way beyond the scope of this blog.

However, is the sometimes "chilly" relationship set to change? It is hard to say with certainty. But recently U.S. Secretary of State Hillary Clinton spoke to Latin American leaders assembled in Ecuador, and her words seemed more aligned with a U.S. commitment to partner with its Latin neighbors rather than hector them with oftentimes unwanted (and not entirely useful) advice.

Secretary Clinton's speech, entitled "Opportunities in the Americas," was short on advice and long on establishing a basis for partnership. In fact at one point Secretary Clinton admitted that "We have had -- the United States and Latin America -- at times a contentious relationship. I would never deny that."

However, from there she pointed to the future:

"[T]his is more than, at any time, a moment of opportunity for the Americas. But it is up to us to decide whether this moment will be seized or allowed to disappear. We have this moment of opportunity to consolidate democracy and economic growth, to play a role in solving regional and even global problems together, to deepen our progress and enhance our values, and to recognize that we are interdependent and to use that interdependence to improve the future for our peoples."

Among the opportunities that the western hemisphere has relates to energy issues and natural resources. Latin America enjoys vast amounts of the type of resources that all areas of the world will need to move global economies forward as well as populations that are anxious and ready to expand their own economies. On the other hand, the U.S. is a center of world finance and infrastructure expertise (although one wonders about this latter one when pondering what is going on right now in the Gulf). Both northerners and southerners in this hemisphere have to recognize the interdepence of each and the fact that a strong and vibrant western hemisphere brings security and prosperity to all. Of course, there are different views of the future of the hemisphere. But mutual respect and a willingness to address differences can set the foundation for a hemispheric partnership that should pay huge future dividends.

A column in the Financial Times ("U.S. Fine Words Replace Lack of Interest in Latin America," June 17, 2010) underscored the potential importance of this seemingly new approach from Washington:

"The change in the U.S. tone, emphasizing co-operation rather than a more traditional 'drugs and thugs,' was potentially significant. It was also realistic: U.S. regional influence is much diminished. Long gone are the years of the 'Washington consensus' when the U.S. exercised much of its power through multilateral proxies such as the International Monetary Fund."

Will things really change? Maybe. Maybe not. But what is for sure is that while the good and the great in Washington and Latin American capitals think about such things, China, India, and other expanding economies are on the move to cement their own relationships with Latin American countries.

Better for the western hemisphere to get its house in order, one would think, than complain 10 years from now when interests outside the hemisphere have locked up their own strategic interests.

--Don Smith

Major Western Hemisphere Roundtable of Experts Comes to Denver in July: "Designing Answers for Today's Challenges" is Topic of Discussion

Political and business leaders from around the Western Hemisphere will gather in Denver in late July to discuss energy production issues. The gathering, which will be part of the month-long 2010 Biennial of the Americas, will feature Colombian Ambassador to the U.S. Carolina Barco Vice President of Ecuador Lenin Voltaire Moreno Garces, Secretary of the U.S. Department of Transportation Ray LaHood, and former U.S. Secretray of Energy Federico Pena among others.

According to the organizers of the roundtable:

Of the many ties that could bind the Western Hemisphere together more closely, energy production surely is one of them. The Hemisphere has tremendous resources. Canada, Mexico, and Venezuela supply the U.S. with more than 40% of its crude oil. The U.S. and Colombia are among the top coal producers in the world, and Brazil is the world leader in producing and using ethanol as a transportation fuel. In the context of energy, however, the link between fossil fuel use and CO2 levels in the atmosphere is unquestionable. With little dispute, scientists believe that CO2 and other heat-trapping gases are influencing the climate. How might design be used to address the energy and climate change problems facing us therefore? Design levers likely include energy efficiency, renewable energy technology, markets, the use of natural gas, and reforestation, among others.

More information about the Energy Roundtable, including how to order tickets, is available by clicking here.

Denver is a center for energy development in the western U.S., and the Sturm College of Law has one of the nation's most complete energy law programs.

LLM Alumnus Manuel Fumagalli of Gold Mining Firm Barrick South America Talks About His Position as Regional Counsel

Assistant Director Lucy Daberkow recently had the opportunity to meet with Manuel Fumagalli, one of the Environmental and Naturals Resources Law & Policy Graduate Program's most distinguished alumni, while he was attending a Rocky Mountain Mineral Law Foundation conference in Boulder, Colorado.

Mr. Fumagalli, who is originally from Peru, is the Regional Counsel for Barrick South America. He was named "Outstanding LLM Student of the Year" at the Sturm College of Law in 2002.

He shared his thoughts with Ms. Daberkow about his role at Barrick:

"I started working for Barrick in 2003 developing the Alto Chicama Lagunas Norte project in Peru, and later after the South America regional business unit was created, I was appointed as Regional Counsel back in 2007. The South America region (SARBU) consists today of the Pierina and Lagunas Norte gold mines in Peru; the Veladero gold mine in Argentina; the Zaldívar copper mine in Chile; the Cerro Casale project in Chile; and the Pascua-Lama project straddling the Argentina-Chile border.

"My role as SARBU Regional Counsel requires me to provide legal advice and support to the senior management for the accomplishment of our regional business goals, participating in the definition of strategic regional priorities and corresponding action plans aligned with Corporate mandates and applicable regulations. Thus, I keep a close contact with the Office of the General Counsel, as well as with the operations and projects, travelling to the sites periodically and working along with the country legal managers and counsels as a team.

"‘Responsible Mining’ defines how we do business; we have a responsibility to protect the environment, to conduct our business in a safe way and based on the highest ethical standards, and to contribute to the welfare of the communities and countries in which we operate. Thus, I really enjoy my work.”

Ms. Daberkow said, "It was truly a pleasure to have the opportunity to visit with Manuel. His professional accomplishments as an LLM in Environmental and Natural Resources Law graduate are truly remarkable. Enhorabuena, Manuel!"

(Pictured above are from left to right, Emma Daberkow, Lucy Daberkow, Amelie Daberkow, Viviana Rodriguez, Manuel Fumagalli.)