Sunday, July 03, 2022

ABOLISH SCOTUS

Supreme Court invalidates 'important tool' to regulate climate pollution


·Senior Editor

The Supreme Court limited the Environmental Protection Agency’s ability to regulate carbon dioxide emissions from power plants in a 6-3 ruling handed down Tuesday that will have far-reaching implications on the federal government’s ability to fight climate change

The court’s conservative majority held in West Virginia v. EPA that the Trump-era EPA did not violate the Clean Air Act by significantly softening planned limits on carbon emissions from power plants, signaling to future administrations that the pollution causing climate change can go effectively unregulated, and leaving the job of passing binding emissions restrictions to Congress.

The court further agreed with a collection of Republican-led states and coal industry groups that the EPA, because its head is a political appointee, cannot accelerate the power sector’s transition from fossil fuels to clean energy because that goes beyond the powers granted to the EPA under the Clean Air Act.

Supreme Court building on June 20 in Washington, D.C. (Anna Moneymaker/Getty Images)

“Capping carbon dioxide emissions at a level that will force a nationwide transition away from the use of coal to generate electricity may be a sensible ‘solution to the crisis of the day,’” Chief Justice John Roberts wrote, quoting from a previous court ruling. “But it is not plausible that Congress gave EPA the authority to adopt on its own such a regulatory scheme.”

President Joe Biden voiced his bitter opposition to the ruling in a statement Thursday.

"The Supreme Court’s ruling in West Virginia vs. EPA is another devastating decision that aims to take our country backwards," he said in the statement. "While this decision risks damaging our nation’s ability to keep our air clean and combat climate change, I will not relent in using my lawful authorities to protect public health and tackle the climate crisis."

When the EPA unveiled the Clean Power Plan, in 2015, it did not merely require new pollution control technology, as has typically been the approach taken to limiting conventional pollutants. Instead, the rule set limits for the emissions of a state’s entire electricity portfolio that could be met through other approaches, including switching from coal to solar and wind power or reducing demand for electricity at peak hours through pricing shifts. Experts refer to these kinds of measures as “outside the fence line” of the source of pollution, in this case a power plant.

In 2017, under then-President Donald Trump, the EPA revoked the rule, arguing that the agency lacked the power to use the “outside the fence line” approach. Petitioners such as the American Lung Association sued to get the rule reinstated, arguing that the Clean Power Plan was legally valid and the Trump-era replacement known as the Affordable Clean Energy (ACE) rule, which did not require anything except modest gains in efficiency from coal-fired plants, was too weak to meet the EPA’s legal obligation to regulate carbon dioxide. (In 2007, the Supreme Court ruled 5-4 in Massachusetts v. EPA that the EPA is required to regulate carbon dioxide because it causes climate change, and the Clean Air Act mandates that the agency regulate “any air pollutant” that can “reasonably be anticipated to endanger public health or welfare.”)

EPA headquarters building beyond parked cars.
EPA headquarters in Washington, D.C., on Wednesday. (Stefani Reynolds/AFP via Getty Images)

Last year, the U.S. Court of Appeals for the District of Columbia Circuit sided with the public health groups and overturned the Trump-era rule, finding that “the ACE Rule and its embedded repeal of the Clean Power Plan rested critically on a mistaken reading of the Clean Air Act.”

The court sided with West Virginia et al., which had challenged that lower court ruling against the ACE rule. The majority, including three justices appointed by Trump, held that the Trump-era rule was valid and met the agency’s legal obligation. This decision will allow future administrations opposed to action against climate change to avoid implementing meaningful regulation of carbon emissions.

The three justices appointed by Democratic presidents dissented, in an opinion written by Justice Elena Kagan. They agreed with the lower court that the Trump-era EPA misinterpreted the Clean Air Act and violated the law when they scrapped the Clean Power Plan and replaced it with the ACE rule.

“Today, the Court strips the Environmental Protection Agency (EPA) of the power Congress gave it to respond to ‘the most pressing environmental challenge of our time,” Kagan wrote, referring to another precedent.

The bottom line for the Biden administration is that a new rule governing power plant emissions, which the EPA will soon propose, cannot require emissions reductions that are achievable only by moving away from coal. EPA Administrator Michael Regan has previously said the agency is waiting for this ruling to write its forthcoming regulation, so that it knows what is permissible. Now, as a result of the ruling, the next Clean Power rule can only require emissions limits that are achieved through pollution control technology. 

Outdoor conveyor belt that leads to massive smoke stacks with smoke billowing from them.
Coal that will be burned to generate electricity moves down a conveyor belt at the American Electric Power coal-fired John E. Amos Power Plant in Winfield, W.V., on July 18, 2018. (Luke Sharrett/Bloomberg via Getty Images)

After the February oral arguments in West Virginia v. EPA, environmental law experts predicted that a ruling such as this would limit the ability of federal regulations to combat climate change.

“It’s a significant constraint on EPA’s ability to regulate the greenhouse gas emissions of existing power plants,” Richard Revesz, a professor at New York University School of Law, told Yahoo News in April “You’re taking an important tool out of the EPA’s toolkit. It might ultimately affect the stringency of the rule, and if it doesn’t affect the stringency of the rule, it might end up being more costly.”

This decision follows a string of rulings limiting environmental regulations. In April, the Supreme Court upheld a Trump-era rule limiting state and tribal authority to veto projects such as pipelines that could pollute their waters.


Justice Elena Kagan says Supreme Court 'does not have a clue about how to address climate change' as it limits EPA's authority on greenhouse gases
Elena Kagan
Elena Kagan.Mark Wilson/Getty Images
  • Justice Elena Kagan slammed the Supreme Court over its decision on Thursday.

  • The court ruled to limit the federal government's ability to regulate gas emissions.

  • Kagan criticized the Court, calling the decision "frightening."

Justice Elena Kagan on Thursday criticized the Supreme Court over its decision to narrow the Environmental Protection Agency's power to regulate greenhouse gas emissions, saying conservatives on the high court had made themselves the "decision-maker on climate policy."

The major 6-3 ruling, for the case West Virginia v. Environmental Protection Agency, limits the EPA's ability to set regulations on the energy sector — a decision that poses massive implications on the Biden administration's goals to fight climate change.

"Whatever else this Court may know about, it does not have a clue about how to address climate change," Kagan wrote in a dissenting opinion, joined by the court's two other liberals, Justices Stephen Breyer and Sonia Sotomayor.

She continued: "And let's say the obvious: The stakes here are high. Yet the Court today prevents congressionally authorized agency action to curb power plants' carbon dioxide emissions. The Court appoints itself — instead of Congress or the expert agency — the decisionmaker on climate policy. I cannot think of many things more frightening."

The Supreme Court's decision handed a victory to West Virginia and a slew of Republican-led states, many of which are fossil fuel producers, that brought the challenge against the EPA's authority to impose sweeping regulations. Chief Justice John Roberts delivered the majority opinion.

In a concurring opinion, Justice Neil Gorsuch pushed back on the dissent, writing that, "the Court hardly professes to 'appoint itself' 'the decision-maker on climate policy.'"

He continued: "The Court acknowledges only that, under our Constitution, the people's elected representatives in Congress are the decisionmakers here — and they have not clearly granted the agency the authority it claims for itself."

Kagan Delivers Dissent On 'Frightening' Supreme Court Climate Change Decision


Marita Vlachou
Thu, June 30, 2022

Supreme Court Justice Elena Kagan on Thursday delivered a scathing dissent to the court’s majority opinion in the West Virginia v. EPA case, which significantly limits the U.S. government’s power to address climate change.

In a 6-3 decision, the court took away the president’s administration authority to implement regulations under the Clean Air Act to reduce carbon emissions at power plants. The majority opinion was delivered by Chief Justice John Roberts.

Kagan, joined by fellow justices Stephen Breyer and Sonia Sotomayor, called the court’s decision “all the more troubling” given the subject matter.

“Whatever else this Court may know about, it does not have a clue about how to address climate change,” Kagan wrote. “And let’s say the obvious: The stakes here are high. Yet the Court today prevents congressionally authorized agency action to curb power plants’ carbon dioxide emissions.”

Kagan also called out the court for essentially designating itself as the rule-maker on those policies.

“The Court appoints itself—instead of Congress or the expert agency—the decisionmaker on climate policy. I cannot think of many things more frightening. Respectfully, I dissent,” Kagan concluded.

This article originally appeared on HuffPost and has been updated.

Supreme Court Delivers Big Blow To Climate Crisis
PRODUCER, REFINER, PIPELINER
Exxon signals operating profits could double over the first quarter

Sabrina Valle
Fri, July 1, 2022

People pump gas at an Exxon gas station in Brooklyn, New York City


By Sabrina Valle

HOUSTON (Reuters) -Exxon Mobil Corp on Friday signaled that skyrocketing margins from fuel and crude sales could generate a record quarterly profit, according to a securities filing.

Energy prices have shot up this year with oil selling for more than $105 per barrel and gasoline at about $5 per gallon in the United States. The enormous earnings are likely to ignite new calls for windfall profit taxes.

The largest U.S. oil producer projected a sequential increase of about $7.4 billion in operating profits compared with the first quarter. In the first quarter, Exxon posted an $8.8 billion profit, excluding a Russia writedown.

The filing indicates a potential profit of more than $16 billion for the second quarter. The company's peak quarterly profit was $15.9 billion in 2012.

The filing showed Exxon expects higher oil and gas prices will add about $2.9 billion to results. Margins from selling gasoline and diesel will add another $4.5 billion to operating profits.

"High energy prices are largely a result of underinvestment by many in the energy industry over the last several years and especially during the pandemic," Exxon said in a statement on the profit gains.

Analysts tracked by IBES Refinitiv forecast a per share profit of $2.99, up from $1.10 in the same quarter a year ago. Official results for the period will be released on July 29, according to a summary of factors influencing the period disclosed late Friday.

Exxon's profits led U.S. President Joe Biden last month to say the company and other oil majors were capitalizing on a global oil supply shortage to fatten profits. Exxon, he said, was making "more money than God" after posting its biggest quarterly profit in seven years.

The company reacted to the president's comments saying it is investing more than any other producer in the United States to expand oil and natural gas production, including in the Permian, the country's largest unconventional basin.

U.S. Representative Ro Khanna on Friday said Exxon's record-breaking profits reinforce his call for Congress to pass a windfall tax on Big Oil.

"Big Oil companies should be providing relief to their customers, not pouring billions into stock buybacks to enrich their investors," he said in a statement.

Exxon's shares closed up 2.2% at $87.55 on Friday.

Exxon, which lost more than $22 billion in 2020, has been using the extra cash from higher energy prices sales to pay debt and raise distributions to shareholders. It plans to buy back up to $30 billion of its shares through 2023.

Despite losses during the pandemic, Exxon continued to invest in additional production and expects to increase output in the Permian by 25% in 2022, the company's spokesperson said.

The second-quarter results will be the first quarterly earnings report since Exxon decided to report results by four business units, giving a more detailed breakout of its petrochemical operations. The snapshot showed that margins in its chemical and specialty products units were flat in the second quarter compared with the first.

The company estimated the impact of exiting Russia would cut oil and gas profits by about $150 million compared with the first quarter. Exxon wrote down $3.4 billion in Russia assets earlier this year.

Exxon also signaled a contribution of about $300 million from asset sales in the quarter.

The CEO of social media giant Meta was cautiously optimistic during the first quarter results.

The mood has changed at the headquarters of Meta Platforms  (META) - Get Meta Platforms Inc. Report, parent of Facebook, Instagram and WhatsApp, in Menlo Park, Calif. 

The atmosphere is beginning to resemble that currently found in many companies in America where the consequences of a looming recession are feared. 

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For months now, many economists have been anticipating a sharp downturn in the economy due to aggressive monetary policy by the Federal Reserve and central banks around the world to combat record price increases everywhere. The Russian war in Ukraine has further exacerbated the supply chain problems caused by the covid-19 pandemic.

This cocktail, experts say, will affect consumption. Households should, these experts explain, reduce their expenses for fear of a disappointing tomorrow and focus only on essential expenses.

'Worst Downturn'

Mark Zuckerberg, CEO of Meta, now seems to share this pessimistic view. During the traditional weekly Q&A session with company employees on June 30, he said he expected "one of the worst downturns that we've seen in recent history," according to an audio recording obtained by Reuters.

Consequently, Meta will accentuate its cost reduction policy. The firm only plans to hire between 6,000 and 7,000 new engineers in 2022, against an initial project of 10,000 new recruits, indicates Reuters. It is therefore a revision of 30% to 40%.

In May, a source told TheStreet that the social media giant was planning to halt or in some cases slow hiring for most mid-to-senior level positions. The goal was to revise priorities and align hiring targets with current market estimates and pacing, the source said.

"We regularly re-evaluate our talent pipeline according to our business needs and in light of the expense guidance given for this earnings period, we are slowing its growth accordingly," a Meta spokesperson told TheStreet in an emailed statement. "However, we will continue to grow our workforce to ensure we focus on long-term impact.” 

At the time, this decision came just weeks after another cost-saving measure: the pause on hiring early-career engineers.

Russia Is a Problem for Sales

The company posted first-quarter revenues of $27.908 billion, up 6.6% year over year, nearly all of it coming from the new 'Family of Apps' division the company created last year, missing analysts estimates of a $28.2 billion tally. Ad revenues were up 6.1% to $27 billion.

But after suffering its first-ever decline in daily active users last quarter, Meta said the figures rose 4% from last year at 1.96 billion, just ahead of the Street consensus of 1.951 million, suggesting the social media group has been able to offset the market share gains of China-based TikTok with both its Facebook and Instagram apps. 

The company had, however, warned that the Russian war in Ukraine would weigh on its sales. Facebook was banned in Russia after the firm publicly voiced its opposition to Russian intervention by taking strong action to limit Kremlin propaganda on its platforms. 

Meta had 77,805 employees as of March 31, up 28.3% from March 31, 2021 when the company had 60,654 employees, according to a filing with the U.S. Securities and Exchange Commission (SEC).

Meta did not immediately respond to a request for comment.

Meta isn't the only tech giant looking to cut costs.

Electric vehicle maker Tesla  (TSLA) - Get Tesla Inc. Report said in June that it would cut its workforce by around 3% in the coming months. Software giant Microsoft  (MSFT) - Get Microsoft Corporation Report has also lowered the hiring targets it had initially set, while the e-commerce giant Amazon  (AMZN) - Get Amazon.com Inc. Report is expected to reduce its initial hiring targets in the retail business, according to a leaked memo in May.

Meta cuts hiring plans as it prepares for 

'serious times'

Mariella Moon
·Contributing Reporter
Fri, July 1, 2022 

Justin Sullivan via Getty Images

In a weekly employee Q&A session, Meta CEO Mark Zuckerberg reportedly said the company is experiencing "one of the worst downturns [it has seen] in recent history." According to Reuters, the executive has revealed that Meta has slashed its target number for new engineers hires this year by about 30 percent. Meta previously said that it's slowing its hiring plans due to weak revenue forecasts, but now Zuckerberg has announced more details with exact figures. Apparently, from plans to hire 10,000 new engineers this year, Meta will only hire between 6,000 and 7,000.

Further, the CEO said that Meta is raising expectations on current employees and giving them more aggressive goals so that they can decide on their own if the company isn't for them. "[S]elf-selection is OK with me," he said. In a memo to employees, chief product officer Chris Cox has stressed that the company "is in serious times here and the headwinds are fierce." He also listed the company's six investment priorities for the second half of the year, starting with its metaverse initiatives Avatars and its virtual world Horizon Worlds.

According to the memo, published in full by The Verge, Meta is also aiming to monetize Reels as quickly as possible. Time spent on Reels has more than doubled around the world since last year, the memo reads, with 80 percent of that growth coming from Facebook. Cox called Reels, its short-form video format created as an answer to TikTok, a "bright point" for the company in the first half of 2022. Meta plans to continue improving the experience, including making changes to the home screen on Instagram and Facebook to incorporate the videos more natively.
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In addition, Meta plans to focus on its AI initiatives, as well as on WhatsApp and Messenger in the second half of the year. It plans to test WhatApp communities before the feature launches around the world by the end of 2022. The company is also going to develop Instagram Creator channels and joinable chats, which are slated for rollout in the coming months.

Cox wrote in the memo:

"I have to underscore that we are in serious times here and the headwinds are fierce. We need to execute flawlessly in an environment of slower growth, where teams should not expect vast influxes of new engineers and budgets. We must prioritize more ruthlessly, be thoughtful about measuring and understanding what drives impact, invest in developer efficiency and velocity inside the company, and operate leaner, meaner, better exciting teams."

Tech companies continue to hit the breaks on hiring against the backdrop of a declining stock market and recession fears.

On June 30th, Meta's (META) founder and CEO Mark Zuckerberg said the social media giant would scale back hiring and warned of an economic downturn.

"If I had to bet, I'd say that this might be one of the worst downturns that we've seen in recent history," Zuckerberg told employees during a weekly Q&A session which was recorded and heard by Reuters.

Earlier in June, Tesla's CEO Elon Musk ordered a hiring pause worldwide, citing a super bad feeling about the economy.

JPMorgan's CEO Jamie Dimon also warned of an economic “hurricane" ahead as the Federal Reserve continues its process of normalizing interest rates.

Hiring pauses, rescinded offers, and layoffs accelerated last quarter as stocks in every sector of the S&P 500 declined. Communications Services and Technology were among the worst performing sectors, behind Consumer Discretionary. The S&P 500 closed out its biggest loss for the first half of the year since 1970.

Yahoo Finance is tracking how tech companies are responding to a bear stock market, and a slowing economy.

Meta (META)

Facebook's parent company plans to slash hiring plans for engineers by at least 30%, according to Reuters.

In late June, CEO Mark Zuckerberg told employees the company aims to hire between 6,000-7,000 engineers in 2022, down from an initial target closer to 10,000. Meta had confirmed it would limit its intake of new employees in May, but exact figures had not been reported. The social media giant had 77,805 employees worldwide as of March 31, 2022.

Mark Zuckerberg warns staff Facebook will be ‘turning up the heat’ to weed out underperformers: ‘You might decide this place isn’t for you, and that’s OK with me’

Facebook parent Meta is cutting back on hiring and turning up the heat on its employees as slow growth and macroeconomic headwinds push the company to downgrade its economic outlook.

In a weekly employee Q&A session on Thursday, the social media giant's chief executive Mark Zuckerberg told employees that Meta is reducing its plans to hire engineers by at least 30% this year. Citing the market downturn and the looming recession, Zuckerberg said Meta will now only hire around 6,000 to 7,000 new engineers in 2022—a stark drop from its initial plan to hire more than 10,000.

"If I had to bet, I'd say that this might be one of the worst downturns that we've seen in recent history," Zuckerberg said in an audio recording heard by Reuters.

'Turning up the heat'

In addition to the hiring freeze, Zuckerberg also noted the company was leaving some vacant positions at the company unfilled and “turning up the heat” on performance management to weed out staffers who are unable to meet certain KPIs.

"Realistically, there are probably a bunch of people at the company who shouldn't be here," Zuckerberg said, adding, “Part of my hope by raising expectations and having more aggressive goals, and just kind of turning up the heat a little bit, is that I think some of you might decide that this place isn't for you, and that self-selection is OK with me."

The announcement comes after a period of staff growth at Meta, with the company ending the first quarter of 2022 with 28% more full-time employees than it had a year earlier. But as user growth and ad revenue both slowed, Meta was forced to impose a hiring freeze in May across several divisions of the company to shore up earnings—and slowed the pace of hiring in its Reality Labs division, the unit tasked with building its metaverse.

Meta did not respond to Fortune's request for comment by the time of publication.

Meta's headwinds

Meta’s planned scale-down was confirmed in an internal memo from chief product officer Chris Cox, seen by Reuters, who attributed the changes to macroeconomic pressures as well as new data privacy changes that have hurt the company's core online advertising business.

The memo, which appeared on the company's internal discussion forum Workplace before the Q&A, outlined the ways Meta planned to trim its losses. Meta has already lost around half of its market value this year alone, a trend that worsened in February after Meta reported it had lost daily active users on its flagship Facebook site for the first time ever in the last quarter of 2021.

“We need to execute flawlessly in an environment of slower growth, where teams should not expect vast influxes of new engineers and budgets,” Cox wrote, reiterating Zuckerberg's message. Cox added, “We must prioritize more ruthlessly, be thoughtful about measuring and understanding what drives impact, invest in developer efficiency and velocity inside the company, and operate leaner, meaner, better exciting teams.”

Meta spokesperson told CNBC that the memo was "intended to build on what we've already said publicly in earnings about the challenges we face and the opportunities we have, where we're putting more of our energy toward addressing.”

Instagram Reels

One way Facebook hopes to reverse its negative trends is by monetizing Instagram Reels—Meta’s video sharing platform which was first introduced in 2010 to challenge TikTok's dominance in the A.I.-driven content space. Both TikTok and Instagram Reels provide videos related to user interest gathered from data, rather than from accounts users follow.

Cox noted in the memo that the amount of time users have spent on Instagram Reels has doubled year over year and Meta would be investing heavily into A.I.-driven content recommendation. Cox noted user engagement on Reels could quickly bolster the bottom line and said the company intends to put ads on Reels "as quickly as possible.”

But if Reels and other algorithm-based content delivery are to have any success, Meta will need a lot more power, Cox noted. Meta will need to increase the number of graphic processing units (GPUs) in its data centers fivefold by the end of the year if it wants to have the computing power necessary to give users the content they want on their feeds.

This story was originally featured on Fortune.com

Mark Zuckerberg Has an Original Idea to Get Rid of Employees


The CEO of social media giant Meta is pessimistic about the economy and is looking for ways to keep his company profitable

LUC OLINGA
JUL 1, 2022 

Times are tough even for the giants of Silicon Valley that are accustomed to big profits.

In recent months, the storm on the financial markets has particularly shaken the Nasdaq index, which is dominated by technology groups. Investors fearing a recession are liquidating their positions in risky assets. This particularly affects tech, which lives mainly on promises of future products and services.

Big Tech is not spared, especially since the slowdown in the world economy should also impact them because they are multinationals, present in many countries around the world. This is the case of Meta Platforms (META) - Get Meta Platforms Inc. Report, the parent company of social media platforms Facebook and Instagram.

The firm is one of the biggest players in online advertising, where Meta only trails Google (GOOGL) - Get Alphabet Inc. Report in terms of market share. According to experts, the economic slowdown, or worse, the recession will force companies and advertisers to reduce their budgets dedicated to marketing and advertising, which should logically affect Meta and Google for example.

CEO Mark Zuckerberg told employees on June 30 during the traditional weekly Q&A session to expect the "one of the worst downturns that we've seen in recent history."

"If I had to bet, I'd say that this might be one of the worst downturns that we've seen in recent history," Zuckerberg told staff, according to Reuters.


Drew Angerer/Getty Images

Reducing Hiring

Consequently, Meta will accentuate its cost reduction policy. The firm only plans to hire between 6,000 and 7,000 new engineers in 2022, against an initial project of 10,000 new recruits, indicates Reuters. It is therefore a revision of 30% to 40%.

In May, a source told TheStreet that the social media giant was planning to halt or in some cases slow hiring for most mid-to-senior level positions. The goal was to revise priorities and align hiring targets with current market estimates and pacing, the source said.

"We regularly re-evaluate our talent pipeline according to our business needs and in light of the expense guidance given for this earnings period, we are slowing its growth accordingly," a Meta spokesperson told TheStreet at the time in an emailed statement. "However, we will continue to grow our workforce to ensure we focus on long-term impact.”

But in a recent memo, chief product officer Chris Cox said that: "I have to underscore that we are in serious times here and the headwinds are fierce. We need to execute flawlessly in an environment of slower growth, where teams should not expect vast influxes of new engineers and budgets."