Let’s Use What We Already Have

by Greg Walcher on February 7, 2025

In planning the nation’s 1976 bicentennial celebration, Congress made one of its dumbest-ever boondoggle decisions. Recognizing the near death of railroad passenger service since the 1950’s, Congress decided to spend millions turning the aging and crumbling Union Station into the National Visitor Center. But they missed the obvious red flag – the millions of visitors to the nation’s capital during 1976 would not be coming by train.

The ugly-carpeted National Visitor Center sat mostly empty that year, after which the old depot was boarded up, its roof caving in by 1981. Still ignoring reality, Congress spent millions more on several studies of what to do with the building. Each study concluded that the highest and best use would be as a train station – what a revelation. $181 million was spent restoring it, and over $8 billion more since then. Today, the magnificent Beaux-Arts structure functions much as it did when first built by the railroads in 1907.

There is a lesson in such waste that should be atop the planning agenda at the President’s Council of Science and Technology Advisors that will oversee his artificial intelligence (AI) initiatives, along with David Sacks, the new “AI and Crypto Czar.” The President is intent on shifting the focus of federal AI policy, from the technology’s potential risks to its potential economic benefits, possibly in the trillions. He wants the U.S. to dominate the field, and has touted AI investments of $500 billion from Oracle, OpenAI, SoftBank, MGX and others.

One of the greatest obstacles to the new data centers is their massive need for electric power, in many cases beyond the capacity of the existing grid. Trump has endorsed the idea of building new power plants right next door to the data centers, even fast-tracking their permits, rather than connecting them to an already over-burdened electric grid.  

So far, no one has been talking about using power generation facilities the U.S. already has, rather than building new ones. In the 1970’s Congress created Amtrak and almost authorized it to build a massive new train depot in Washington, D.C. – before some genius figured out they already had one of the most beautiful train stations in the world.

Similarly, utilities across the U.S. have been shutting down state-of-the-art power plants, and closing highly productive coal mines, for a decade or more. But most haven’t been torn down yet. So, maybe instead of the expense of building new power plants next to the new data centers, we should be unusually thoughtful about where to build the data centers.

Many utilities have committed to the goal of carbon-free electricity and to phasing out coal-fired power plants. That goal is not consistent with new Administration priorities, but there is no need to second guess corporate decisions based on their internal economics. There is, however, good reason to second guess the wisdom of shutting down electric generating capacity the country still needs.

Consider locating one of the new AI data centers in northwest Colorado, for example. Two of the state’s most efficient and productive coal mines are within a stone’s throw of two of its most efficient power plants. The Trapper and Colowyo mines together produce over 3 million tons of coal per year, their primary customers being the nearby Craig and Hayden power plants. All of that infrastructure is in the slow and agonizing process of shutting down, with an estimated $320 million economic impact that includes losing 2,800 high-paying jobs and 43 percent of local property tax revenues.

The State of Colorado, and power plant owners Tri-State and Excel, have spent millions to help the communities “transition” to some other economic base, mostly with public money. When the U.S. Department of Agriculture announced $970 million in new clean energy grants, Tri-State was first in line, and has now committed $22 million to northwest Colorado’s “transition.” The State’s Office of Just Transition has doled out millions more – none of which can offset the economic assassination of those communities.

Most of us don’t blame private companies for making business decisions. But these are not decisions based on a free market. They are driven by government policy – which is now pursuing a dire need for more electric power, not less. If leaders want to dominate the global AI industry, they ought to build data centers where that infrastructure already exists.

Or, they could study the problem for a few years, and then decide to “transition” power plants back into power plants – like turning the train station back into a train station.

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Shovel, Baby, Shovel

by Greg Walcher on January 29, 2025

My friend Amos Eno, one of the country’s leading conservation experts, spent a decade running the National Fish and Wildlife Foundation and more recently the Land Conservation Assistance Network. His writing appears in all the right publications, and he is a popular speaker at conferences everywhere.  Writing about the old/new President’s endorsement of the almost-cliché adage, “Drill, baby, drill,” he added another related but separate concept: “Shovel, baby, shovel.”

It is an apt way to describes what he calls an urgent need “to resurrect our mining of strategic and critical minerals and coal, throwing off the wet blanket of climate suffocation policies.”

There is considerable attention and debate about President Trump’s insistence on domestic oil and gas production and “American energy dominance.” Indeed, at least four first-day executive orders were about re-starting domestic energy production, especially one entitled, “Unleashing American energy.” It includes directives revoking the electric vehicle mandate, freezing unspent green new deal funds, expediting liquid natural gas export facilities, and especially streamlining the permit process for oil and gas leasing, exploration, development, production, pipelines, and other facilities.

That executive order also includes a less-reported provision called Section 9, related not to oil and gas drilling, but to mining. It instructs federal agencies to identify all regulations, policies, and orders “that impose undue burdens on the domestic mining and processing of non-fuel minerals and undertake steps to revise or rescind such actions.” It even suggests that the government’s list of “critical minerals” needed for national defense might be amended to include uranium, perhaps foreshadowing a new plan to jump-start the nuclear power industry.

There can be reasonable disagreements about these details, of course, but the debate is overdue.

The Minerals Education Coalition keeps track of minerals Americans use, by averaging consumption statistics with annual population estimates. The statistics are staggering. The average American will need in a lifetime roughly 18,000 pounds of stone, sand and gravel, 685 pounds of cement, 148 pounds of clay, 383 pounds of salt (I might need more), 275 pounds of iron ore, 168 pounds of phosphate, 35 pounds of soda ash, 34 pounds of aluminum, 34 pounds of copper, lead, zinc, and manganese, 25 pounds of other metals, and 584 pounds of other non-metal minerals. Altogether, the Minerals Information Institute once concluded that each of us will need in our lives over 3.6 million pounds of minerals, metals and fuels. Where will we get all that?

For years, leaders have warned about U.S. reliance on China for critical minerals, especially “rare earth” minerals, several of which are critical in the production of renewable energy, and high-tech equipment like cell phones, computers, MRI machines, and satellites – minerals with hard-to-pronounce names like ytterbium, dysprosium, and praseodymium. The term “rare earth” is a misnomer, applied to 17 specific elements because they were once considered difficult to extract from the surrounding rock in which they are found. But supplies abound worldwide, including the U.S., where America’s known reserves are at least ten times the entire world’s production.

China now produces 80-90 percent of the world’s rare-earth minerals, according to the U.S. Geological Survey. Yet China has only about 37 percent of the world’s estimated reserves. Relying on China for critical minerals is obviously not smart, nor safe, nor necessary. The U.S. once had a national defense stockpile, but sold it all in 1998, while the last American processing plant in Texas was closing.

Sadly, many Americans simply assume we ran out of such mineral resources. The truth is that we will never run out – not in your lifetime or the lifetimes of your great grandchildren. There is no limit to mankind’s ability to discover, produce, create, invent and perfect new sources of energy. No, Americans put the brakes on their own mining industry for a variety of reasons, especially concerns about environment impacts – none of which we can control in other countries. We control that in the U.S. when we work with American companies to supply the minerals needed to build a more prosperous society. The near demise of American mining was not because the resources played out, but because the political will did. And that may finally be changing.

Ralph Waldo Emerson once wrote that “Nothing is rich but the inexhaustible wealth of nature.  She shows us only surfaces, but she is a million fathoms deep.” He could never have imagined the levels of energy we use today, but he is nonetheless continually proven right. It may be time to stop our national whining and start shoveling.

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DOE Throws Cold Water on Biden Legacy

January 22, 2025

Headlines this week claimed that “Heading Out the Door, Biden Seeks to Ban 40 Percent of Water Heaters.” It is highly unlikely that President Biden is even aware of the last regulation published by his Department of Energy (DOE). Though he supported their green agenda over the past four years, most details have been left […]

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Do It Now, Even If It’s Wrong

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My grandparents were avid card players, spending many happy hours with family playing hearts, rummy, pinochle, and similar games. I remember occasionally, when Grandma was a little frustrated that someone was taking too long, she would say, “Well play something, even if it’s wrong.” That’s actually one of the oldest and most reliable strategies, especially […]

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The Unproud Western Legacy of Jimmy Carter

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Alaska comprises nearly 20 percent of the entire U.S. at over 665,000 square miles, and is the richest state in natural resources. Yet it remains the most sparsely populated state, partly because of its isolation and weather, but largely because the federal government owns most of it, 406,000 square miles. The U.S. purchased Alaska in […]

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Is Government Going to the DOGE?

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A lot of jokes about Elon Musk are making the rounds, in light of his new role in identifying government waste, fraud and abuse. One says after he puts a car into orbit, outer space will be full of germs and diseases, no longer auto-immune. Another asks what he has in common with Thomas Edison. […]

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Federal Agencies Should Look in the Mirror

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In the 1950 movie version of Grimm’s Fairy Tale, the cruel stepmother scolds Cinderella, “You clumsy little fool – clean that up!” But of course, it was the stepmother, not Cinderella, who made the mess. Sometimes it seems like the world is full of people who expect others to clean up their messes. It is […]

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Time is on Colorado’s Side – No Need to Rush

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An early lesson I learned as a young staffer for the late Senator Bill Armstrong was the importance of careful consideration. He disliked being rushed into hasty decisions and developed a standard response to any demand for immediate action. “If you need an answer right now,” he would say, “the answer is no.” If there […]

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Taking Private Land for Public… Nothing

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The Fifth Amendment is an essential part of the Bill of Rights, ensuring, “nor shall private property be taken for public use without just compensation.” Sometimes private property stands in the way of public progress, such as when highways are built. The public good cannot be held hostage by one owner, whose refusal to sell […]

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Why Bipartisanship Still Matters

November 1, 2024

When President Kennedy explained the goal of sending a man to the moon, he said the nation chose to do such things “not because they are easy, but because they are hard; because that goal will serve to organize and measure the best of our energies and skills…” We often face challenges that are difficult, […]

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