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American leaders support clean air and climate progress — regardless of Trump’s executive order

A sample of the diverse groups that have come out against President Trump's Executive Order on climate change.

By Charlie Jiang

President Trump’s executive order seeking to unravel critical public health and climate protections — including the Clean Power Plan — is being met with strong rebuttals and a clear demonstration of ongoing climate leadership from across the country.

An extraordinary diversity of American faith and justice leaders, businesses, health and security experts, and elected officials have spoken out against Trump’s actions or vowed to continue reducing carbon pollution and move towards a low-carbon future.

The overwhelming response to these recent attacks on our vital climate safeguards shows that Americans are coming together to protect our communities. Millions of Americans — a majority of adults in every congressional district — support limiting carbon emissions to guard against climate instability.

Here are some highlights from the many powerful statements made in the last week:

Leaders from at least 15 faith communities raised alarm at the dangerous impacts rolling back climate progress would have on America’s most vulnerable communities:

  • The United Church of Christ’s national leadership said: “Because climate change makes all other injustice worse, now is the time for us to step up.”
  • “The Clean Power Plan [gives] states a framework for progress in the sacred work of safeguarding our earth’s natural resources,” affirmed Rabbi Jonah Dov Pesner on behalf of Reform Judaism groups.
  • “The absence of a strong climate policy means more dangerous pollution that harms the unborn and children,” warned Evangelical Environmental Network President and CEO Mitch Hescox.
  • "This is a challenge for us," said Vatican leader Cardinal Peter Turkson, a chief architect of the Pope’s “Laudato Si” encyclical on climate change. “Fortunately, in the United States, there are dissenting voices, people who are against Trump’s positions.”

Health associations representing more than 500,000 doctors and medical experts emphasized the public health imperative of reducing air pollution and addressing climate change:

  • “Implementing the Clean Power Plan alone would prevent 90,000 asthma attacks and 3,600 premature deaths every year once fully in place, wrote the American Lung Association. “Our nation needs these lifesaving protections.”
  • The Medical Society Consortium on Climate and Health said “As medical professionals, many of our members know firsthand the harmful health effects of climate change on patients.”
  • “Clean air should not be a luxury, and it should not be determined by ZIP code,” said the American Academy of Pediatrics.

At least 75 mayors, state governors, and attorneys general who represent more than 149 million people — nearly half of the U.S. population — reiterated the need to combat climate change and protect the communities they serve:

  • Pennsylvania Gov. Tom Wolf said: “The science of climate change is settled and the President’s actions today turn the federal government’s back on Pennsylvania’s environment and our economy.”
  • Colorado Gov. John Hickenlooper said: “We will keep building a clean energy future that creates Colorado jobs, improves our health and addresses the harmful consequences of a changing climate.”
  • A coalition of 23 attorneys general and local legal counsels from states including California, Illinois, Iowa, Maryland, and Virginia wrote: “We won’t hesitate to protect those we serve—including by aggressively opposing in court President Trump’s actions that ignore both the law and the critical importance of confronting the very real threat of climate change.”
  • Mayors from 47 cities including Houston (TX), Knoxville (TN), Durham (NC), Fayetteville (AR), Los Angeles (CA), Chicago (IL), and New York City, released a letter reading, “Climate change is both the greatest single threat we face, and our greatest economic opportunity for our nation.”

Power companies owning generating capacity able to power roughly two-thirds of all homes in the U.S. spoke out to recommit to providing ever more clean energy in the wake of the executive order. Here is a sample:

  • “We intend to keep moving forward with a low-priced, clean energy strategy that provides the economical, clean energy our customers want,” said Ben Fowke, CEO of Xcel Energy.
  • “Going forward, we anticipate an increase in renewable generation capacity and declining utilization of coal,” said Southern Company spokesperson Terrell McCollum.
  • "We will continue our transition to more natural gas and renewables as we balance out our generation portfolio and provide cleaner energy,” said a spokesperson for American Electric Power.
  • “Because of the competitive price of natural gas and the declining price of renewables, continuing to drive carbon out makes sense for us,” said Duke Energy CEO Lynn Good.

Reducing carbon emissions and moving to cleaner sources of energy is good for business, say Fortune 500 companies including Apple, General Electric, and Walmart.

  • “We’re disappointed the administration has decided to roll back climate regulations such as the Clean Power Plan and others,” said Edward Hoover, a senior executive at Mars Inc.
  • Fighting climate change is “good for the business, our shareholders and customers,” said a Walmart
  • “We believe climate change should be addressed on a global basis,” wrote General Electric CEO Jeff Immelt. “We hope that the United States continues to play a constructive role in furthering solutions to these challenges.”
  • “We believe that strong clean energy and climate policies, like the Clean Power Plan, can make renewable energy supplies more robust and address the serious threat of climate change while also supporting American competitiveness, innovation, and job growth,” a group of tech companies including Google, Apple, Microsoft, and Amazon said in a statement.

Leading national security experts warned of the impact President Trump’s order will have on American security.

  • The non-partisan American Security Project said: “While energy independence is a credible goal, the actions suggested will not lead to real energy security. Rather, the order removes basic programs, such as the Clean Power Plan and climate resilient development, which bolster the security of our country.”
  • Alice Hill, a former resilience policy advisor to the National Security Council under President Obama said: “Deliberately ignoring the devastation brought by climate change will leave us anything but secure.”

Officials who served administrations in both parties criticized moving backwards on climate:

  • “This is not just dangerous; it’s embarrassing to us and our businesses on a global scale to be dismissing opportunities for new technologies, economic growth, and U.S. leadership,” said Gina McCarthy, former EPA administrator under Barack Obama.
  • Asked about rumors the Trump Administration could abandon the Paris Agreement, Christine Todd Whitman, an EPA administrator under George W. Bush, said, “We lose any ability, any moral authority, to say to any other country, ‘You have to clean up your act.’”
  • Trump’s order "is reckless, arrogant policy that ignores the safety and well-being of our country and our children," said former Special Envoy for Climate Change Todd Stern, who helped broker the Paris Agreement.

Community organizers working for environmental justice condemned President Trump’s attacks on America’s most vulnerable communities:

  • “The decision by President Donald Trump to roll back the hard fought progress made on clean air and clean energy is extremely disappointing and dangerous,” said NAACP President & CEO Cornell William Brooks. “We are now on a dangerous path that puts workers, communities and the planet in harm’s way.”
  • Former Kentuckians for the Commonwealth chairperson Dana Beasley Brown said: “As Kentuckians, we have to work for the kinds of solutions we know can provide good jobs, allow people to stay and live in their communities, take care of their families, and not have to make the choice between being healthy and having a good job.”
  • Tom Goldtooth, executive director of the Indigenous Environmental Network said “Indigenous peoples will not stand idle as we tell the world the Earth is the source of life to be protected, not merely a resource to be exploited and abused.”

President Trump’s executive order will only take us backwards to an era of more pollution and more disease.

But it is clear from the overwhelming pushback that community leaders, businesses, and health and security experts, as well as millions of Americans across the country, support maintaining strong climate and public health protections and moving forward on clean energy — not turning back the clock.

Read more responses to last week’s Executive Order here.

Posted in Clean Power Plan, Greenhouse Gas Emissions, Policy| Comments are closed

Putting profits over our children’s health

By Sarah Vogel

The same week President Trump signed an Executive Order aimed at undermining crucial climate and health protections, the House Science Committee held a hearing that had no purpose other than to flaunt the latest in industry funded pseudo-science on climate change. This committee has a track record of lacking scientific rigor, and with the Chairman literally questioning whether Science Magazine or the industry-funded Heartland Institute was more reliable as a source, this hearing was no different.

These events are part of a long term, unrelenting effort on the part of well-funded, entrenched fossil fuel interests to fight climate safeguards at every turn, prioritizing polluter profits above the health of the American people. Make no mistake; there are serious human health consequences to ignoring the facts on climate change, including more asthma attacks, the expansion in disease migration, heatstroke, and increased mortality.

How in the world—after decades of research and overwhelming scientific evidence—could these peddlers of pollution have such a prominent voice in this Congress and Administration? Simple: they’re selling a surprisingly effective product: doubt. Selling doubt has been used for decades to keep deadly products on the market.

We’ve seen this game before.

The tobacco lobby denied smoking caused lung cancer for decades

By the 1950s, the strong link between smoking and lung cancer had become increasingly well identify in the scientific literature. Additional research and growing pressure from prominent health associations led to the 1964 declaration by the Surgeon General that smoking causes lung cancer and presents significant health risks, including emphysema and heart disease.

The tobacco industry knew better than anyone the state of the science. And for nearly fifty years, the industry skillfully seeded and manufactured scientific doubt and effectively spread propaganda to delay and slow a global public health response to a deadly and addictive—not to mention highly lucrative— killer. In 1994, the chairman of a major tobacco company, came before the U.S. House of Representatives and still declared that he did not believe that nicotine was addictive. It wasn’t until the late 1990s and early 2000s that smoking bans in public and private spaces in the U.S. finally took hold, however tobacco use continues to be a global health epidemic.

How have tobacco companies succeeded in expanding the market for this deadly product when the science has been so clear for so long? The strategy was succinctly captured in a 1969 memo by a tobacco executive: “doubt is our product since it is the best means of competing with the ‘body of fact’ that exists in the minds of the general public. It is also the means of establishing a controversy.” (See Merchants of Doubt for more on the connections between the tobacco and climate doubters.)

The lead industry fought against the link between lead and childhood poisoning for a good sixty years

When the story of lead in Flint’s water supply finally gained national attention, Americans were dismayed, and knew there was a problem. This is because the public trusts the best science including that being done by the Centers for Disease Control which called lead poisoning “the most common and societally devastating environmental disease of young children in the United States,” and declares that there is no safe level of lead in children’s blood.

This, however, was not always the case. Lead was once commonly added to gasoline and paint and used in the pipes that deliver water to homes. Lead poisoning in children was a national issue by the 1940s and 1950s, and yet lead-based paint continued to be used to cover the walls of most American homes and was aggressively marketed to families through the late 1970s. Lead-based paint continues to be the primary source of children’s exposure to this chemical. Major policies to limit the use of lead in paint, gasoline, and food cans were enacted in the late 1970s, and we’ve seen levels in children’s blood decline ever since (see EDF’s interactive graph of the impacts of lead policies on lead exposure in children.)

Despite decades and decades of clear and ample scientific evidence of lead’s toxicity, this industry expanded its market in the U.S. and globally. Using similar tactics of manufacturing scientific doubt, lobbying, and propaganda, the industry stayed focused on protecting its profits and in the process robbed millions of children of healthy and prosperous lives.

We won’t be fooled

You wouldn’t know it from looking at Washington these days, but not only is the House Science Committee vastly out touch with science – which now clearly indicates that human are causing climate change– they are also at odds with the American people who overwhelmingly say climate change is happening.

They are also working against the tide of the American economy; there are now over 3 million Americans working in clean energy, well past the number employed in coal, with many of these jobs in Republican districts. Over 1,000 top businesses have also committed to staying on a low-carbon path, stating that addressing climate change is good business.

Some polluters and their well-paid lawyers (including firms that literally worked on the tobacco fight) continue to manufacturer doubt and pedal in climate denial propaganda, and the House Committee gave them a prominent platform to do so last week. Such boldfaced efforts to put profits over our children’s health—as was done with tobacco and lead—must be confronted by the truth. To call out these lies, to demand integrity and truth in the face of deceit, is what we all must do.

Please help us fight back>>

Posted in Basic Science of Global Warming, Greenhouse Gas Emissions, Health, Science| Read 2 Responses

Six Ways President Trump’s Energy Plan Doesn’t Add Up

This blog was authored by Jeremy Proville and Jonathan Camuzeaux 

Just 60 days into Trump’s presidency, his administration has wasted no time in pursuing efforts to lift oil and gas development restrictions and dismantle a range of environmental protections to push through his “America First Energy Plan.” An agenda that he claims will allow the country to, “take advantage of the estimated $50 trillion in untapped shale, oil, and natural gas reserves, especially those on federal lands that the American people own.”

Putting aside the convenient roundness of this number, the sheer size of it makes this policy sound appealing, but buyer beware. Behind the smoke and mirrors of this $50 trillion is a report commissioned by the industry-backed Institute for Energy Research (IER) that lacks serious economic rigor. The positive projections from lifting oil and gas restrictions come straight from the IER’s advocacy arm, the American Energy Alliance. Several economists reviewed the assessment and agreed: “this is not academic research and would never see the light of day in an academic journal.”

Here is why Trump’s plan promises a future it can’t deliver:

1. No analytical back up for almost $20 trillion of the $50 trillion.

Off the bat, it’s clear that President Trump’s Plan relies on flawed math. What’s actually estimated in the report is $31.7 trillion, not $50 trillion, based on increased revenue from oil, gas and coal production over 37 years (this total includes estimated increases in GDP, wages, and tax revenue). The other roughly half of this “$50 trillion” number appears to be conjured out of thin air.

2. Inflated fuel prices

An average oil price of $100 per barrel and of $5.64 per thousand cubic feet of natural gas (Henry Hub spot price) was used to calculate overall benefits. Oil prices are volatile: in the last five years, they reached a high of $111 per barrel and a low of $29 per barrel. They were below $50 a barrel a few days ago. A $5.64 gas price is not outrageous, but gas prices have mostly been below $5 for several years. By using inflated oil and gas prices and multiplying the benefits out over 37 years, the author dismisses any volatility or price impacts from changes in supply. There’s no denying oil and gas prices could go up in the future, but they could also go down, and the modeling in the IER report is inadequate at best when it comes to tackling this issue.

3. Technically vs. economically recoverable resources

The IER report is overly optimistic when it comes to the amount of oil and gas that can be viably produced on today’s restricted federal lands. Indeed, the report assumes that recoverable reserves can be exploited to the last drop over the 37-year period based on estimates from a Congressional Budget Office report. A deeper look reveals that these estimates are actually for “technically recoverable resources,” or the amount of oil and gas that can be produced using current technology, industry practice, and geologic knowledge. While these resources are deemed accessible from a technical standpoint, they cannot always be produced profitably. This is an important distinction as it is the aspect that differentiates technically recoverable from economically recoverable resources. The latter is always a smaller subset of what is technically extractable, as illustrated by this diagram from the Energy Information Administration. The IER report ignores basic industry knowledge to present a rosier picture.

4. Lack of discounting causes overestimations

When economists evaluate the economic benefits of a policy that has impacts well into the future, it is common practice to apply a discount rate to get a sense of their value to society in today’s terms. Discounting is important to account for the simple fact that we generally value present benefits more than future benefits. The IER analysis does not include any discounting and therefore overestimates the true dollar-benefits of lifting oil and gas restrictions. For example, applying a standard 5% discount rate to the $31.7 trillion benefits would reduce the amount to $12.2 trillion.

5. Calculated benefits are not additional to the status quo

The IER report suggests that the $31.7 trillion would be completely new and additional to the current status quo. This is false. One must compare these projections against a future scenario in which the restrictions are not lifted. Currently, the plan doesn’t examine a future in which these oil and gas restrictions remain and still produce large economic benefits, while protecting the environment.

6. No consideration of environmental costs

Another significant failure of IER’s report: even if GDP growth was properly estimated, it would not account for the environmental costs associated with this uptick in oil and gas development and use. This is not something that can ignored, and any serious analysis would address it.

We know drilling activities can lead to disastrous outcomes that have real environmental and economic impacts. Oil spills like the Deepwater Horizon and Exxon Valdez have demonstrated that tragic events happen and come with a hefty social, environmental and hard dollar price tag. The same can be said for natural gas leaks, including a recent one in Aliso Canyon, California. And of course, there are significant, long-term environmental costs to increased emissions of greenhouse gases including more extreme weather, damages to human health and food scarcity to name a few.

The Bottom Line: The $50 Trillion is An Alternative Fact but the Safeguards America will Lose are Real

These factors fundamentally undercut President Trump’s promise that Americans will reap the benefits of a $50 trillion dollar future energy industry. Most importantly, the real issue is what is being sacrificed if we set down this path. That is, a clean energy future where our country can lead the way in innovation and green growth; creating new, long-term industries and high-paying jobs, without losing our bedrock environmental safeguards. If the administration plans to upend hard-fought restrictions that provide Americans with clean air and water, we expect them to provide a substantially more defensible analytical foundation.

Photos by lovnpeace and KarinKarin

This post originally appeared on EDF's Market Forces blog.

Posted in Economics, Energy, Greenhouse Gas Emissions| Comments are closed

When EPA Is Under Threat, So Is Business: Two Key Examples

(This post first appeared on EDF+Business. It was written by EDF's Liz Delaney)

American businesses benefit tremendously from the robust voluntary and regulatory programs of the U.S. Environmental Protection Agency. These programs are now under threat of massive budget cuts and regulatory rollbacks.  In the coming weeks and months, the experts at EDF+Business will examine what a weakened EPA means for business. 

While some politicians may question the reality of climate change, most CEOs do not. So it’s no surprise that while Congress has been stuck, business has been busy addressing the problem. Luckily, they’ve had a helpful partner by their side: the U.S. Environmental Protection Agency (EPA).

Contrary to now head of the EPA Scott Pruitt’s claim that business has been subjected to "regulatory uncertainty"—stated during this year’s Conservative Political Action Conference—the Agency has administered a number of voluntary and regulatory programs that help corporations respond to the challenge of climate change. For companies, future planning is simply good business. This is why many in  Corporate America—having long accepted that climate change is real— are continuing to transition towards low-carbon energy options and work with the EPA to move forward in a sensible, cost-effective manner.

But with the recent announcement on Pruitt’s plans to cut the EPA’s budget by a reported 24 percent—roughly $6 billion, its lowest since the mid-1980's–it may be up to the business community to defend the instrumental role of the Agency in helping business thrive while protecting the environment.

Here’s a look at just two of the many EPA programs that have helped business transition to a clean energy future.

Forging a smart economic future with the Clean Power Plan

Many in the business community strongly supported the EPA’s Clean Power Plan (CPP)—the first-ever national limits on carbon pollution from power plants. The argument? Dirty sources of energy generation are becoming a growing concern for corporate America. These energy sources are increasingly uneconomic. Fortune 500 companies routinely set renewable energy and emissions reduction goals, but find roadblocks in many energy markets around the country.

Fortunately, the CPP can open new opportunities for businesses interested in operating in a clean energy economy. The rule’s flexible framework puts states in the driver’s seat to set plans that call for the most appropriate and cost-effective solutions for meeting pollution reduction targets while spurring innovation. If you ask me, this satisfies Pruitt’s call to "restore federalism" by giving states more of a say in regulations. The plans provide clarity on the energy options available to businesses in different regions, helping to inform their long-term carbon reduction strategies and eventually increase access to cost-effective low-carbon energy.

This explains why last year major innovators including Mars, IKEA, Apple, Google, and Microsoft filed legal briefs in federal court supporting the EPA’s Plan. And more recently, leading executives from over 760 companies and investors—many of them Fortune 500 firms—called upon the new Administration to move ahead with policies to address climate change, like the Clean Power Plan.

The CPP is positioned to:

  • Generate $155 billion in consumer savings between 2020-2030
  • Create 3x as many jobs per $1 invested in clean energy as compared to $1 invested in fossil fuels
  • Lead to climate and health benefits worth an estimated $54 billion, including avoiding 3,600 premature deaths in 2030

The Green Power Partnership

The Green Power Partnership is a voluntary program launched by the EPA to increase the use of renewable electricity in the U.S. Under the program, businesses are armed with resources and provided technical support to identify the types of green power products that best meet their goals. Since its inception, the Partnership has made notable progress in addressing market barriers to green power procurement.

Through the Partnership, companies can reduce their carbon footprints, increase cost savings, and demonstrate civic leadership, which further drives customer, investor and stakeholder loyalty. Take Colgate-Palmolive for example: as one of the Green Power Partnership’s national top 100, the consumer products giant has generated close to 2 billion kWh of annual green power through wind power alone. This represents 80% of the company’s total electricity use.

Today, hundreds of Partner organizations rely on billions of kWh of green power annually. At the end of 2015, over 1,300 Partners were collectively using more than 30 billion kilowatt-hours (kWh) of green power annually, equivalent to the electricity use of more than three million average American homes.

Pruitt has ratified the belief that we can “grow jobs, grow the economy while being good stewards of the environment”–and he’s right. The renewable energy industry is now outpacing the rest of the U.S. in job creation; which is good news for business and the economy at large. American wind power now supports more than 100,000 jobs—an increase of 32% in just one year—and solar employs more people in U.S. electricity generation than oil, coal and gas combined.

Long-term economics versus short-term politics

We don’t know what will happen in Washington over the next few years. But many businesses are moving forward. Rather than shift course, corporations are increasing investments in clean, reliable power, a move that is consistent with sound business practices.

But business can’t do it alone. The EPA supports responsible companies who have committed to reducing their carbon footprints while safeguarding our planet. It’s time for business to not just leverage their scale and buying power to help accelerate the transition to a clean energy future, but to speak up in favor of maintaining a well-funded agency that continues to make decisions based on sound science and the law.

In his first address to the EPA, Scott Pruitt said, “you can’t lead unless you listen.” Let’s make sure he hears from the businesses that are focused on a future where both the economy and the environment can thrive.

Posted in Economics, Jobs, News, Policy, Setting the Facts Straight| Comments are closed

Western Leaders, Attorneys General Support BLM’s Oil and Gas Waste Policies in Court

8362494597_b5e016f63f_z-300x169By Jon Goldstein and Peter Zalzal

(This post originally appeared on EDF Energy Exchange)

The legal fight to defend the Bureau of Land Management’s (BLM) recent efforts to prevent oil and gas companies from wasting methane on public and tribal owned land continued yesterday.

EDF and a coalition of local, regional, tribal and national allies filed a brief opposing efforts by industry organizations and a handful states to block BLM’s protections before they even come into effect. 

The states of New Mexico and California also sought to participate in the legal challenges, likewise stepping up to defend BLM’s common sense standards. Notably, New Mexico is the largest producer of oil from public lands in the U.S. and the second largest producer of natural gas.

In seeking to stay BLM’s protections, the industry associations have claimed the standards have no benefits – so blocking them won’t have any impacts on the communities they are designed to protect.

But BLM’s oil and gas waste standards are about ensuring that operators use common sense technologies to capture natural gas that would otherwise be wasted. That preserves a valuable natural resource and cleans up the air, all while putting additional royalty payments in the pockets of Western communities that can be used to fund schools, roads and important infrastructure.

For example, a recent analysis found that in 2013, oil and gas companies operating on public and tribal lands wasted more than $330 million worth of gas – more than $100 million of that from New Mexico alone. This translates to lost royalty revenues for local communities. One report estimates that without action to reduce this waste, taxpayers could lose out on more than $800 million in royalties over the next decade.

The challengers’ legal claims stand in stark contrast to the facts on the ground. Evidence of the broad-based benefits of BLM’s Waste Prevention Rule was readily apparent in yesterday’s court filings supporting the protections..  Current and former state and county officials and everyday Westerners alike let their voices be heard about the importance of common sense measures to preserve public resources and protect the environment.

For example, in their filing seeking to participate in the case, the states of New Mexico and California emphasized:

Implementation of the Rule will benefit the States of California and New Mexico by generating more annual royalty revenue . . . . In addition, the Rule will benefit the health of the states’ citizens who are exposed to harmful air contaminants leaked, vented and flared from federally-managed oil and gas operations . . . . The People of California and New Mexico have a strong interest in preventing the waste of public resources, as well as in reducing the emission of harmful air pollutants that threaten the health of the states’ citizens, the integrity of their infrastructure, protection of their unique environments and ecosystems, and the continued viability of their economies. ( Filing, pages 2 and 3)

And in their filing opposing the preliminary injunction, these states claimed:

Because the Rule is likely to result in the stronger protection of federal lands and greater prevention of the waste of natural resources, which belong to the People, the public interest weighs strongly in favor of denying the injunction. (Filing, page 16)

The benefits that New Mexico and California identified are broadly shared and were likewise reflected in declarations submitted by county officials and former state officials in support of the standards.

Current La Plata County Colorado Commissioner Gwen Lachelt identified both the problem of resource waste on public lands and the benefits for Western counties like hers in addressing it:

The San Juan Basin, in which La Plata County is situated, has one of the highest rates of wasted gas and methane loss in the country, accounting for nearly 17% of U.S. methane losses.

In addition to wasted methane, oil and gas sites in La Plata County and the San Juan Basin release dangerous pollutants such as benzene and ozone-forming pollutants that can lead to asthma attacks and worsen emphysema . . . . This air pollution continues to be a regional public health hazard, and has contributed to La Plata County receiving a low grade for poor ozone air quality from the American Lung Association…

The Rule will benefit La Plata County by providing additional royalties that we can use to fund key County priorities—including infrastructure, roads, and education—while also helping to clean up the air in the San Juan Basin, which will have health benefits for our citizens. (Filing, page 4 and 5)

Lachelt points out that unlike other leading oil and gas states like Colorado, New Mexico has no policies to reduce methane waste and other pollution from oil and gas wells, and that BLM’s efforts will help to provide uniformity across state lines.

Sandra Ely, a former Chief of the New Mexico Environment Department’s Air Quality Bureau likewise submitted a declaration describing the importance and benefits of the BLM standards. She particularly focused on the long-standing problem of resource loss in the San Juan Basin. The region made headlines in recent years when NASA scientists discovered a 200-square-mile methane cloud over the region – the largest methane cloud uncovered in the U.S. Subsequent studies determined that oil and gas emissions were the main contributor to the methane “hot spot.”

I am aware of a recent study, focused on the San Juan Basin, which suggested that BLM’s proposed leak detection and repair requirements alone would result in anywhere from $1–$6 million dollars of additional revenue for New Mexico… Absent the Waste Prevention Rule, I am concerned that resource loss and poor air quality associated with oil and gas development will continue unabated in New Mexico (Sandra Ely, Filing, page 7)

Western leaders have been vocal in their support for BLM’s sensible standards that take an important energy resource out of the air and deliver it responsibly to the American public. At public hearings that the BLM held across the west these rules were supported by more than 3 to 1 margins. More than 80 local officials across the West, including county commissions in La Plata, Park and San Miguel counties in Colorado and Bernalillo, Rio Arriba and San Miguel counties and the Santa Fe city council in New Mexico, all support the protections. And these rules enjoy broad bipartisan public support as well (more than 80 percent of Westerners in a recent poll).

Given this cross-cutting support and yesterday’s forceful legal filings, it’s no wonder that industry challengers in this case don’t even want the judge to hear the views of New Mexicans and Californians. Yesterday, they indicated that they would oppose these states’ efforts to protect the interests of their citizens by participating in the case. While this reflexive obstructionism isn’t surprising—industry petitioners filed their legal challenges within 40 minutes of the rule being finalized and tried to block the standards’ effectiveness shortly thereafter—it certainly reveals their very one-sided view of what is in the public’s interest.

The Wyoming Court is scheduled to hear oral argument in this case on January 6. We look forward to continuing to defend these standards that will clean the air and prevent waste.

Posted in Economics, Energy, Greenhouse Gas Emissions, Health, News, Partners for Change, Policy| Comments are closed

How Companies Set Internal Prices on Carbon

Despite the uncertainty created by the recent election, companies around the globe are demonstrating a commitment to keeping climate change in check. More than 300 American companies signed an open letter to President-elect Trump urging him not to abandon the Paris agreement. Others are acting on their own to reduce emissions in their daily operations, by setting an internal price on carbon.

The number of companies incorporating an internal carbon price into their business and investment decisions has reached new heights, a recent CDP report shows, with an increase of 23 percent over last year. The more than 1,200 companies that are currently using an internal carbon price (or are planning to within two years) are using them to determine which investments will be profitable and which will involve significant risk in the future, as carbon pricing programs are implemented around the world. Sometimes, they also use them to reach emissions reduction goals.

Not all carbon prices are created equal, and companies differ in how they set their specific price. Here’s a look at some of these methods:

Incorporating Carbon Prices from Existing Policies

 Some companies set their carbon price based on policies in the countries where they operate. For example, companies with operations in the European Union might decide to use a carbon price equal to that of the European Union Emissions Trading System (EU ETS) allowances, and those operating in the Northeastern United States might adopt the carbon price that results from the Regional Greenhouse Gas Initiative market.

ConocoPhillips, for example, focuses its internal carbon pricing practices on operations in countries with existing or imminent greenhouse gas (GHG) regulation. As a result, its carbon price ranges from $6-38 per metric ton depending on the country. For operations in countries without existing or imminent GHG regulation, projects costing $150 million or greater, or that results in 25,000 or more metric tons of carbon dioxide equivalent, must undergo a sensitivity analysis that includes carbon costs.

Using Self-Imposed Carbon Fees

Others take a more aggressive approach by setting a self-imposed carbon fee on energy use. This involves setting a fee on either units of carbon dioxide generated or a proxy measurement like energy use. These programs also often include a plan for using the fees such as investment in clean energy or energy efficiency measures. This can be an effective method for incentivizing more efficient operations.

Microsoft, for example, designed its own system to account for the price of its carbon emissions. The company pledged to make its operations carbon neutral in 2012 and does so through a “carbon fee,” which is calculated based on the costs of offsetting the company’s emissions through clean energy and efficiency initiatives. Each business group within Microsoft is responsible for paying the fee depending on how much energy it uses. Microsoft collects the fees in a “central carbon fee fund” used to subsidize investments in energy efficiency, green power, and carbon offsets projects. Still, by limiting carbon fees to operational activities, Microsoft has yet to address a large chunk of their emissions.

Setting Internal Carbon Prices to Reach Emissions Reduction Targets

 Other companies set an internal carbon price based on their self-adopted GHG emissions targets. This involves determining an emissions reduction goal and then back-calculating a carbon price that will ensure the company achieves its goal by the target date. This method is a broader approach focused more on significantly reducing emissions while also mitigating the potential future risk of carbon pricing policies.

Novartis, a Swiss-based global healthcare company, uses a carbon price of $100/tCO2 and cites potential climate change impacts as a motivator. The company has its own greenhouse gas emissions target, which it is using to cut emissions to half of its 2010 levels by 2030. These internal policies mean that Novartis, which is included in the European Union’s Emissions Trading Scheme (EU ETS), has been able to sell surplus allowances and thus far avoid an increase in operating costs.

Where we go from here

 While these internal carbon pricing activities are welcome – and we hope they continue – they are not sufficient to reduce greenhouse gases to the degree our nation or world requires. Like these forward thinking companies, nations around the world, including the United States, need to consider the costs of inaction, including the climate-related costs, to avoid short-sighted investments. Ultimately, we will need public policies that put a limit and a price on carbon throughout the economy.

The spread of internal carbon pricing could signal greater support for carbon pricing by governments. But companies can do more: the ultimate test of a company’s convictions and commitment to carbon pricing might be their willingness to advocate for well-designed, ambitious policies that achieve the reductions we need.

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