Category Archives: Business

The Cost to Meet Clean Air and Environmental Standards Comes Down (Again)

By | Bio | Published: June 11, 2013

It is almost getting old for us to write about this … but it needs to be repeated.

As power plant pollution control projects continue, we are seeing – yet again — that the cost of meeting clean air standards, like the Mercury and Air Toxics Standards for power plants (MATS), has fallen.

Unfortunately, that hasn’t stopped some major power companies and other opponents from trying to undermine clean air and environmental standards.

However, this past quarter American Electric Power (AEP), NRG, and FirstEnergy each told their investors that their anticipated costs for meeting environmental standards dropped.

As you can see on our chart, AEP has lowered its estimated costs of following environmental standards by half, from a high of $8 billion down to $4 to $5 billion.

AEP was the top emitter of mercury, carbon dioxide, nitrogen oxide, and sulfur dioxide in 2011 among the top 100 power producers in the U.S.

And … AEP is a leader in the lawsuit to halt the Mercury and Air Toxics Standards.

As our chart also shows, FirstEnergy has lowered their cost estimate for complying with the Mercury and Air Toxics Standards by nearly 70 percent.

FirstEnergy’s estimate dropped from a high of $3 billion down to $925 million (which is $50 million lower than they estimated last quarter).

FirstEnergy was the sixth highest emitter of mercury in 2011 among the top 100 power producers, and is also challenging the Mercury and Air Toxics Standards in court.

The third company on our chart, NRG, has lowered its costs for complying with environmental standards from $730 million to $530 million, a reduction of more than 25 percent.

NRG was the fourth highest emitter of mercury in 2011 among the top 100 power producers.

These three companies are just a few of the power companies that have decreased their cost estimates for complying MATS and other environmental standards in recent years.

The tens of billions of dollars in expected health benefits from the Mercury and Air Toxics Standards has not decreased, though.

The Mercury and Air Toxics Standards will provide crucial emission reductions of toxic pollutants including mercury, acid gases, sulfur dioxide, and chromium.

It will save thousands of lives every year, prevent heart attacks and asthma attacks, and help protect the hundreds of thousands of babies born in America every year who are exposed to unsafe levels of mercury in the womb. And that is priceless.

It’s important that we keep in mind these misguided “sky is falling” claims about environmental compliance costs as EPA carries out its responsibilities under the nation’s clean air laws to address carbon pollution from power plants.

The time tested history of the Clean Air Act is quite the opposite – the sky is clearing, and at far less than the costs predicted by industry.

Also posted in Clean Air Act, Economic Scare Tactics, Economics, Health, News, Policy | Comments closed

The Not-So-Strange Bedfellows on Tier 3 Clean Car Standards

By | Bio | Published: May 20, 2013

Most Americans rely on cars every day — cars that transport us to work and school, but that emit harmful soot, smog, and other dangerous air pollutants that impact human health.

We’ve posted before about a new way to clean up that pollution – the Tier 3 standards.

EPA has introduced these modern clean air standards to reduce harmful emissions from two sources — new cars and gasoline.

These complementary standards will ensure healthier, longer lives for millions of Americans – all for less than a penny a gallon.

Like so many other clean air issues, this one has brought together a strong, diverse coalition of groups in support of the updated, common-sense standards.

Supporters include car companies, manufacturers, environmental justice groups, health groups and medical professionals, labor, states, environmental groups, faith groups, and advocates for consumers.

EPA recently held two public hearings about the Tier 3 standards, in Philadelphia and Chicago.

We posted earlier about strong support for these clean air standards in Philadelphia. And EDF’s Graham McCahan testified on our behalf in Chicago, and said the turnout and support for Tier 3 was impressive there too. (You can read Graham’s testimony here).

Representatives of many of those other diverse organizations testified at the public hearings as well, in support of the Tier 3 clean air protections for Americans.

Here are a few quotes from the testimony:

Tier 3…is yet another example of the auto industry working with the Federal government, the state of California and other stakeholders to develop a harmonized approach that benefits all fifty states. It builds upon the successes we’ve had in the 2012­­–2016 and 2017­–2025 national greenhouse gas and fuel economy programs. It stays true to the simple principle of providing the cleanest vehicles to everyone throughout this great country.

The emission reductions that would result from the Tier 3 program proposed by EPA will benefit the citizens in every state and locality across the country…State and local air pollution agencies are relying on EPA to adopt the Tier 3 rule.

Low sulfur gasoline not only enables advanced technologies to achieve intended emission benefits, it has an immediate and significant effect on the 250 million vehicles on the road today, lowering emissions and helping states achieve attainment of ozone National Ambient Air Quality Standards (NAAQS).

  • Chrysler Group LLC

Our analysis estimates that by 2030, these standards under consideration today will prevent more than 2,500 premature deaths and more than 15,000 asthma attacks each year.

Building cleaner, more fuel-efficient cars creates jobs by sending money otherwise spent on fuel back into the U.S. economy, and also through the development and production of new, more efficient vehicle components. The Tier 3 standards will only bolster the auto industry’s ability to meet a strong fuel efficiency standard and generate these net positive economic outcomes.

These compelling testimonials are just a few of the comments made in favor of the Tier 3 standards.

If you didn’t have a chance to testify, you can still make your voice heard by sending an email to EPA. EDF has created a website to make it easy for you to stand up for the Tier 3 standards.

When America works together, we can achieve vital public health protections for our families and our communities – and create a stronger nation.

Also posted in Automobiles & Fuels, Cars, Clean Air Act, EPA & Tailpipe Emissions, Links and Quotes, News, Policy, Vehicles and Tailpipe Emissions | Comments closed

Automakers Defend Historic Clean Cars Standards

By | Published: January 15, 2013

The world’s biggest automakers are standing up in court to defend America’s historic new fuel economy and greenhouse gas emissions standards.

The Obama Administration announced the clean cars standards last August.

The new standards will double fleet-wide fuel economy by 2025, to 54.5 miles per gallon.

They’ll also:

  • Save families more than $8,000 at the gas pump over the lives of their new cars or trucks
  • Dramatically reduce our nation’s dependence on oil
  • Cut greenhouse gases by six billion tons

By 2025, the standards are projected to reduce U.S. oil consumption by more than two million barrels per day.  Combined with earlier standards for large diesel trucks, the daily oil savings in 2025 will be substantially more than the amount of oil imported each day from Iraq, Kuwait, and Saudi Arabia in 2011.

The six billion tons of greenhouse gas reductions are more than the total of U.S. carbon dioxide emissions in 2010.

(You can read more about the standards, and their benefits on our website)

These historic standards are supported by consumers, the United Auto Workers, national security experts, U.S. automakers, many U.S. states, the Union of Concerned Scientists, and environmental organizations.

Unfortunately, there are some groups that don’t support them.

Industry groups — including the Utility Air Regulatory Group, American Petroleum Institute, National Association of Manufacturers, and National Oilseed Processors Association — have filed legal challenges in the U.S. Court of Appeals for the District of Columbia.

EDF will defend these historic standards in court. We and our allies have already moved to intervene in support of them.

Now, both U.S. and foreign automakers have also stepped in to defend the landmark standards.

Yesterday, the Alliance of Automobile Manufacturers filed a motion to intervene in support of the standards.

Their motion says that the court challenges:

jeopardize the further development and continuation of an integrated national approach to increasing automobile fuel economy and thus reducing carbon emissions.

Just three days earlier, the Association of Global Automakers also filed a motion to intervene in support of the standards.

Members of the two automaker groups include Chrysler, Ford, General Motors, Honda, Toyota, Volkswagen, and Volvo.

It's a great reminder that when we work together, America can achieve lasting gains for our environment and our economy.

 

Also posted in Cars, Greenhouse Gas Emissions, News | Comments closed

EDF's Business-Friendly Suggestions for Fighting Climate Change

By | Published: November 12, 2012

We’ve been hearing the same question a lot lately – what should President Obama do in his second term to fight climate change?  

In today’s online Harvard Business Review, EDF’s Eric Pooley has some thoughts on that subject. He's laid out a five-point plan to help us address climate change.

Those points range:

[F]rom no-brainer ideas almost everyone can agree on to ambitious items that would require Congressional action

And they all have one thing in common – they are business friendly.

As Eric puts it: 

It is worth remembering that strong business support helped secure passage of the House climate bill in 2009, and though that effort failed in the Senate, no serious legislation can move without the backing of men and women in the engine room of the American economy. To be politically viable, climate solutions must be economically sustainable.

Here’s the (very) short version of Eric’s plan:

  • Feed the conversation
  • Reduce climate accelerants
  • Start a clean energy race
  • Use the Clean Air Act
  • Put a price on carbon

If you’d like to read the whole plan, you can find it here: A Business-Friendly Climate Agenda for Obama's Second Term

Also posted in Climate Change Legislation, Economics, Extreme Weather, Greenhouse Gas Emissions, News, Policy | Comments closed

Growing Jobs, One Auto Supplier at a Time

By | Bio | Published: September 7, 2012

Last week, the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Transportation (DOT) jointly announced new clean car standards that will benefit America’s economy and our environment.

The standards mean that by 2025 new cars on U.S. roads will average an unprecedented 54.5 miles per gallon.

Those same clean cars will also reduce the levels of dangerous climate pollution from auto emissions.  

Businesses in the auto supply chain are applauding.  According to Fred Keller, Chairman and CEO of Cascade Engineering: 

The new fuel economy requirements are an example of good regulation developed in the right way. By working with both industry and environmental interests, regulators were able to come up with standards that provide the right incentives and get the right results without putting an undue burden on industry. What’s more, the resulting incentives are positive, as they will encourage manufacturers to develop lighter-weight vehicles and reduce demand for fossil fuels. I recognize it is not always easy to develop regulation in this way, but this should serve as a model for how to do it effectively in the future.

Cascade Engineering has a growing automotive solutions group that focuses on acoustic insulators, chassis & powertrain components, and interior/exterior trim.  

Other companies are praising the new standards as well.

Nam Thai-Tang, Co-Founder and Executive Vice President of ALTe, said this:

ALTe applauds any effort to drive towards greater fuel efficiency in the transportation industry. We are encouraged by the new standards and expect that they will help companies like ours that are developing advance hybrid powertrain technologies for America’s vehicles. 

ALTe manufactures electric vehicle powertrains which are used to increase fuel efficiency and lower emissions.

The new clean car standards follow closely after the first-ever national standards for passenger vehicles, which applied to vehicles in model years 2012 to 2016.

The Administration says that, in total, its national program to improve fuel economy and reduce greenhouse gas emissions will save consumers more than $1.7 trillion at the gas pump and reduce U.S. oil consumption by 12 billion barrels.

A joint ACEEE-BlueGreen Alliance report found the standards also would create more than a half million jobs by 2030, including 50,000 jobs in auto manufacturing. (These projections are not surprising. Since the restructuring, auto companies have added 250,000 jobs.)

Fuel economy standards benefit American auto companies and the myriad of suppliers because they create certainty, establish the U.S. as leader in fuel efficiency, and provide incentives for innovation.

Unlike many other industries, the auto sector and its many suppliers can plan for the future knowing the regulatory playing field until 2025.

The new clean car standards stand as among the most progressive in the world, driving the U.S. to a leadership position in fuel-efficient vehicles and technologies–  and toward the opportunity to export everything from parts to final assembled vehicles. 

These rules reward innovation in every facet of auto technologies — from changes to traditional combustion engines such as new materials, electronics, engine re-design, and recirculation of exhaust gas to development of a new generation of electric vehicles, hybrid and fuel cell vehicles. 

Seifi Ghasemi is chairman and chief executive of Rockwood Holdings, the world’s largest producer of lithium and lithium compounds.

He responded to the announcement by noting that:

Rockwood believes that the US can be the world leader in a game-changing technological leap forward by making electric vehicles the cars of the future. 

Mr. Ghasemi further described how Rockwood is already expanding and adding jobs:

For the auto industry and battery makers to adopt this technology, they must have a secure and reliable supply of lithium compounds for advanced electric vehicles. To meet the need for these compounds, Rockwood recently invested more than $75 million in two expansion projects that expands the output of our Silver Peak, Nevada, and Kings Mountain, North Carolina, production facilities.  We expanded our Silver Peak site, which is the only US source of lithium raw materials, and we built and recently opened a state of the art battery grade lithium hydroxide manufacturing plant in Kings Mountain.  In addition, we completed a new Global Technical Center at Kings Mountain that will bring together engineers and scientists to perfect and commercialize advanced battery materials.  These investments provide several economic benefits, including the addition of more than 100 new manufacturing and research and development jobs.  These expansions also reinforce our long-term competitiveness in a vital, growing technology.

As the auto sector continues to demonstrate, strong environmental standards can work in concert with a vision for growth in industries across America.

Also posted in Cars, Clean Air Act, Economics, Energy Technologies, Green Economy, Greenhouse Gas Emissions, Jobs, Links and Quotes, News, Policy | Comments closed

EPA's Historic Proposal to Limit Carbon Pollution from Power Plants

By | Bio | Published: March 27, 2012

Today we are making history. 

Today the U.S. Environmental Protection Agency (EPA) proposed the first-ever nationwide emission standards to limit dangerous carbon pollution from new coal- and gas-burning power plants. 

Today we take the first critically important step towards addressing the climate-destabilizing pollution emitted by power plants. 

Today we take a vital step towards protecting Americans’ health and strengthening our economy.

With these standards and EPA's landmark clean car standards, we’re beginning to address the clear and present danger of carbon pollution from the two largest emission sources in our nation.

Power plants are responsible for 40 percent of the carbon pollution emitted in America. U.S. power plants are one of the largest sources of carbon pollution in the world. 

Power plants are responsible for 40% of carbon pollution emitted in the U.S.

We have the technology and the know-how to change this.

The carbon pollution emission standards proposed by EPA today would halve the carbon emissions from a new coal-fired power plant over its lifetime. 

These standards will help further the progress we are making towards a cleaner, more secure future for energy in America. We will use our nation's electricity resources more efficiently to cut energy costs for families and businesses, mobilize Made in the USA technologies and fuels for cleaner energy generation, and ensure that America will lead the global race to a clean energy economy.

States, communities and businesses across our nation are already leading the way:

  • 29 states have adopted policies to expand reliance on cost-effective clean energy resources.
  • States including Washington, Montana, Oregon, Minnesota, New York and California have adopted (or are now putting in place) limits on dangerous carbon pollution from fossil-fueled power plants.
  • A McKinsey & Company report found that we could meet our nation's growing electricity needs by using existing resources more wisely — and could cut energy costs for American families and businesses at the same time.
  • Innovative businesses like Solar City are creating new solutions and technologies to deliver cleaner, safer energy. Solar City, founded in 2006, is installing solar systems that lower utility bills with no upfront investment by the customer. Solar City has 20,000 projects in 14 states that are either completed or underway– including a one billion dollar project to put solar systems on military housing.
  • Hundreds of U.S. companies are capitalizing on new, multibillion-dollar market opportunities to make our electric grid as smart, flexible, and innovative as the internet — enabling a wholesale shirt to clean, community-based energy resources.

There are also fundamental shifts in the energy market that are driving a change in our electricity supply.

Much has been written about the structural market shift to natural gas, which has been enabled by new drilling technologies. Some have tried to deny this market shift and claim that EPA’s clean air protections are stopping new coal plants, but the truth is that basic economics — low natural gas prices— are driving these decisions.  But don't take our word for it. Check out these quotes.

  • Jim Rogers is the CEO of Duke Energy, which provides electricity to the Carolinas, Indiana, Kentucky, and Ohio. He told the National Journal:

The new climate rule is in line with market forces anyway. We're not going to build any coal plants in any event. You’re going to choose to build gas plants every time, regardless of what the rule is.

  • Thomas Fanning, CEO of Southern Company, recently told investors on an earnings call on January 25, 2012:

Four years ago…we were about 70% of our energy from coal and about, I don’t know, 16% from nuclear, about 12% from gas and the balance from hydro.  In the fourth quarter – this was really surprising to me, maybe not surprising considering how cheap gas is now – our energy production was 40% coal, 39% gas. … Now moving forward, given where gas prices are, we will continue to see much more gas production.

Inexpensive natural gas is the biggest threat to coal. Nothing else even comes close.

The immense natural gas resources recently made commercially accessible in the United States must be developed responsibly if we are to protect our water and ecosystems, and prevent wasteful leakage that will undermine the carbon pollution advantages of natural gas.  But America can meet this urgent challenge.

We also know how to harness the power of the wind, the sun, and geothermal resources. By making the energy foundation of our economy cleaner and more diverse, we will improve our national security, improve public health, and protect our climate.  Today we took a big step down that road.

The stakes are high.

Climate impacts are already affecting American communities, and scientists tell us that the impacts will intensify as atmospheric concentrations of heat-trapping greenhouse gas emissions rise.

The United States Global Change Research Program has determined that if carbon pollution emissions are not reduced, it is likely that American communities will experience increasingly severe impacts, including:

  • Rising levels of dangerous smog in cities — which will lead to an increased risk of respiratory infections, more asthma attacks, and more premature deaths
  • Increased risk of illness and death due to extreme heat
  • More intense hurricanes and storm surges
  • Increased frequency and severity of flooding
  • Increases in insect pests and in the prevalence of diseases transmitted by food, water and insects
  • Reduced precipitation and runoff in the arid West
  • Reduced crop yields and livestock productivity
  • More wildfires and increasingly frequent and severe droughts in some regions

I mentioned earlier that American states, communities and businesses are already taking steps to address these threats. Starting today, they don’t have to do it alone. With today’s announcement, our entire country will fight the widespread and varied threats we face from climate change.

I think EPA deserves a standing ovation for that.  

Please join me in supporting EPA’s efforts to protect our families, our communities, and our economy from these threats. 

The resistance to these standards by entrenched fossil fuel-dependent industries will likely be fierce, but together our voices can move these vitally important policies forward. 

Also posted in Clean Air Act, Economics, Energy Technologies, Green Economy, Greenhouse Gas Emissions, Health, News, Policy | Comments closed

It’s Just Business (but FirstEnergy Blames Its Decisions on Clean Air Rules)

By | Bio | Published: February 10, 2012

Twice in the last two weeks, FirstEnergy has announced it will shut down old coal-fired power plants – then tried to blame those business decisions on the clean air rules that protect us all from toxic pollution.

First, at the end of January, First Energy announced it would retire six coal-fired power plants in Ohio, Pennsylvania and Maryland.

The company blamed those closures on new EPA regulations that will protect us from mercury, acid gases and other toxic air pollution – but FirstEnergy is going to retire the plants by September 1 of this year.

The compliance deadline for the new EPA rules isn’t for at least three years (2015 – with possible extensions to 2017). 

What’s more, FirstEnergy announced a decision to switch some of those six units from full-time to seasonal operation, and to temporarily mothball others, more than 16 months ago — before EPA even issued its proposal for the new rule.

Clearly, there’s more to the story than just EPA regulations.

Then, this week, First Energy announced it will close three more old coal plants in West Virginia. The company once again tried to pin the blame on EPA.

But the three plants in question were built between 1943 and 1960. They were built while Presidents Roosevelt, Truman and Eisenhower were in office. The oldest was built while we were still fighting World War II.

The plants are not closing just because of clean air regulations. They’re closing because they’re aging and inefficient, and because they are facing competition from natural gas.

Many factors contribute to the new utility investment cycle. They include:

  • Age – 59% of America’s coal fired power plants are over 40 years old, with many over 60 years old.

According to former Senate Majority Leader George Mitchell:

In 1970, the [Clean Air Act] required that new sources meet tight emissions standards. At that time, it was assumed that electrical utility units had an average lifetime of 30 years.

  • Competition from Natural Gas – with increasing natural gas supplies and lower prices, the market is shifting to more efficient combined cycle natural gas generators over old, inefficient coal plants.

One industry analyst told the Wall Street Journal:

Inexpensive natural gas is the biggest threat to coal. Nothing else even comes close.

  • Low utilization –the older units are often small, inefficient, and operated only part-time. From a business perspective, it is not cost effective to keep paying the fixed costs needed to maintain them for limited operation. Energy efficiency and demand response programs are far more efficient ways of meeting these energy needs.

In its press release announcing the closings of the three West Virginia plants, First Energy itself points out:

[T]hese plants served mostly as peaking facilities, generating, on average, less than 1 percent of the electricity produced by FirstEnergy over the past three years.

  • Health and the Environment – it is not surprising that these old, inefficient power plants are also disproportionately higher emitters of pollutants, and often have not had modern pollution control equipment installed.

We have information and graphics to illustrate this issue on our new fact sheet.

Business decisions in the utility sector are complex. Don’t let plant owners use our health protections as a scapegoat for their choice to retire old coal-fired power plants.

Also posted in Clean Air Act, Economics, Energy Technologies, News | Comments closed

Let’s Clear the Air: EPA Pollution Standards Will Create New Jobs While Protecting Public Health

By | Bio | Published: September 30, 2011

Opponents of the Clean Air Act have been yelling that this law’s life-saving health protections are “job killers.”

Just for a moment, let’s ignore the fact that these regulations improve public health and safety and save our lives. It is untrue that these regulations kill jobs.

In fact, just two small parts of the Clean Air Act — EPA’s Cross-state Air Pollution and Mercury and Air Toxics rules — would together create nearly 1.5 million jobs over the next five years driven by new investments.

EPA’s new air pollution standards would limit sulfur dioxide, nitrogen oxide, mercury and other unhealthy pollutants that are in the air we breathe. Meeting the new standards, and lowering our air pollution levels, will result in investments in new pollution control equipment and power plants. It will also result in jobs for skilled professionals to do the work of installing and operating that equipment. That means jobs for electricians, plumbers, pipefitters, boilermakers, millwrights, iron workers and engineers – among others.

Among the economic beneficiaries would be the American companies that make pollution control equipment like scrubbers, dry sorbent injectors, and selective catalytic reducers. Take a look at this map:

Pollution Abatement Materials Companies

 

Click to view full-size map

The map is  by no means comprehensive, but it shows some of the companies in the eastern half of the U.S. that are poised to benefit under EPA’s rules.

A Case Study in Job Creation from Installing Pollution Control Equipment

Alstom Power’s James Yann testified before the U.S. Senate’s Subcommittee on Clean Air and Jobs in March of this year.

He described some of the jobs created from just one example of a pollution control technology – a wet flue gas desulfurization “scrubber” that is commonly used to remove sulfur and other air pollutants.

Dependent on the number of scrubbers ultimately installed, Alstom estimates that these clean air regulations will create a total of more than 150,000 jobs over the next five to six years of compliance work. That’s just for direct jobs. In addition, tens of thousands of additional jobs would be created along the supply chain.

Here’s more details to show how it works: 

  • Scrubbers consist of a large number of components including pumps, electrical equipment and wiring, controls, and emission monitors (among many others). Almost all of this equipment can be procured from sources in the United States.
  • Erecting a typical scrubber requires more than 2,000 tons of fabricated steel delivered to the site. This steel represents more than 40,000 man-hours of production.
  • Assembly of the scrubber requires the most man power and a wide variety of trade crafts, typically lasting up to 30 months and employing an average of 700 craft people during that period.
  • In total, a typical wet flue gas desulfurization project will provide the equivalent of about 775 full time jobs over the life of the installation project, not including jobs provided for all the equipment suppliers and delivery services involved in delivering materials and equipment to the site.
  • Scrubber systems require ongoing supplies to operate including ammonia, lime, limestone and activated carbon. Companies making these supplies will need to create additional jobs to meet the increased demand as a result of EPA’s clean air rules.

Also posted in Clean Air Act, Economics, Energy Technologies, Jobs | Comments closed

EDF’s Ads Highlight AEP’s Bad Example

By | Published: September 16, 2011

While other utilities are investing in technology and jobs, cleaning up toxic air pollution and meeting federal health standards, American Electric Power (AEP) engineered a bill to fight these goals. Their bill is designed gut new federal clean air standards based on a law that has protected American lives for 40 years and helped drive one of the few sectors of our economy to grow during the recession — the clean technology industry.

We want to discourage other utilities from following AEP's their bad example. We created a series of ads highlighting AEP’s choice of quick profits over its consumers’ health and lives.

The Environmental Protection Agency estimates that as many as 17,000 lives will be lost without these new rules. AEP apparently thinks it’s the cost of doing business.

Join us in asking how many lives will be lost before the risk becomes unacceptable. Ask AEP “what’s your number” at askwhatsyournumber.com

Also posted in Advertising, Clean Air Act | Comments closed

For Business, It's Not Necessary to Delay the Clean Air Act

By | Bio | Published: March 8, 2011

The Environmental Protection Agency’s (EPA) efforts to enforce the Clean Air Act are vital for our health, our children’s health, and the avoidance of the most dangerous and expensive consequences of climate change.

In spite of that urgency, some businesses are arguing for delay. They claim that new regulations will hurt jobs and the economic recovery. Extensive data refutes these claims, but perhaps the most credible counter-arguments are those made by businesses that disagree.

In a March 1 article in Politico Pro, reporter Darren Samuelsohn interviewed business leaders who "didn’t sound so thrilled" about legislation to pre-empt EPA authority:

“The leaders — from American Electric Power, NextEra Energy, Southern Co. and Dominion Resources — said to varying degrees that they support allowing the EPA to proceed on a ‘reasonable’ time frame on greenhouse gas rules for power plants, petroleum refiners and other major stationary sources.” 

The business community is not monolithic, of course. And it’s no surprise that companies that are innovative are often rewarded with long-term growth.

Recently, the ArcelorMittal steel mill in East Chicago, Indiana, built on-site energy plants to capture heat and gases. The mill reduced its carbon dioxide emissions by about 916,000 metric tons. That’s about the same amount as 166,000 cars and all of the grid-connected solar panels in the world. At the same time, the mill cut as much as $100 million a year in energy costs — and that allowed ArcelorMittal to allocate more money to jobs and investment. 

West Virginia Alloys, a silicon manufacturer, used a similar project to capture waste heat and generate enough electricity on-site to power one-third of its furnaces. The project reduced carbon dioxide emissions by almost 300,000 tons – and at the same time, enabled the plant to increase its workforce by 20 percent.

Companies that fear change typically spend their time and energy fighting change – not on finding the most strategic responses to changing business conditions.

McKinsey and Company and the Department of Energy (DOE) are among those who have collected data showing the plethora of untapped efficiency opportunities being ignored by American industry today. (See some of that data, and helpful case studies, at LessCarbonMoreInnovation.org)

Here are some highlights:

  • McKinsey found that the U.S. industrial sector can reduce annual energy consumption 18 percent by 2020 and save more than $442 billion in energy costs billion in major sectors such as refineries, chemicals, cement, iron and steel, pulp and paper, for an upfront investment of barely more than a quarter of that amount.
  • If the pulp and paper sector, alone, seized the economically attractive opportunities identified by McKinsey and Company, they could reduce energy use by 26 percent and save an estimated $2.6 billion per year.
  • Until recently, U.S. industrial plants didn't know how energy efficient they were (or weren’t) compared to their competitors So the Energy Star for Industry program created a benchmarking tool to allow companies get that information. The results show that many plants have significant room for improvement. For example, the gap between the average plant's performance and the best in class plant's performance is 198 kilowatts per hour more electricity used per assembled vehicle. (That figure takes into account the differences in product, as well as plant capacity, utilization, and location). That’s about as much as what the average U.S. household  uses in electricity each week.
  • The University of Massachusetts’ Political Economy Research Institute looked at the impact on new EPA pollution control rules on the utility sector. They found that the new rules will drive an estimated 1.46 million jobs, or about 290,000 on average in each of the next five years. Other University of Massachusetts studies found that clean energy and energy efficiency are more labor intensive than spending on conventional fossil fuels.

Given over-capacity and capital on the sidelines, now is actually the perfect time to invest in making the current infrastructure cleaner, more efficient, more globally competitive, and ready for the recovery. Investing will be good for the workforce and for customers, and while shareholders may see a little less profit this year, they will see more in the long-run.

Businesses that insist they have to pollute do not represent all businesses. Lots of American businesses are already taking advantage of the opportunities in clean energy and energy efficiency.  If we support them, instead of the businesses that can only handle the status quo, we can create an economic recovery for the long-haul.

Also posted in Clean Air Act, Economics | Comments closed