Selected category: Clean Power Plan

Carbon Pollution Standards that Begin by 2020: Vital for Climate Security, Human Health

The U.S. Environmental Protection Agency (EPA) is hard at work right now on the Clean Power Plan – the first ever national carbon pollution standards for power plants.

Among the many important aspects of this historic plan, we believe this: It is critical that EPA finalize carbon pollution standards for the power sector that include protective, well-designed standards beginning in 2020. 

Power plants account for almost 40 percent of U.S. carbon dioxide emissions, making them the largest source of greenhouse gas emissions in the nation and one of the largest sources of greenhouse gases in the world.

The Clean Power Plan will be finalized this summer. When fully implemented, it is expected to reduce greenhouse gas emissions from the power sector to 30 percent below 2005 levels. That makes these eminently achievable and cost-effective standards integral to climate security, human health and prosperity.

The Clean Power Plan will phase in over a 15-year period, with interim standards commencing in 2020, and final standards taking effect in 2030 – and there is strong reason to believe that the interim standards covering the period 2020 to 2029 should be strengthened in the final rule.

Interim standards can help the U.S. secure near-term low-cost opportunities to reduce greenhouse gas emissions, while generating the market signals necessary to achieve the deeper reductions required in the years ahead. They also can deliver important public health benefits for our families by providing healthier and longer lives for millions of Americans. And EPA has designed the interim standards in a manner that provides considerable flexibility to states and power companies to comply while deploying their own unique solutions.

Carbon Pollution Limits that Begin by 2020 are Essential for Driving Near-term Actions to Reduce Dangerous Emissions and to Advance Climate Security

As proposed, the Clean Power Plan’s interim standards could deliver cumulative emissions reductions of more than 5 billion tons of carbon dioxide. That approaches the total annual carbon dioxide emissions for the entire United States. Protective interim standards that require states and power companies to take near-term action to reduce carbon pollution are essential to secure these climate benefits.

Interim standards are essential for mobilizing the full range of near-term cost-effective opportunities to cut pollution, as they are the only way to ensure that investments in activities that reduce carbon pollution are fully recognized and properly rewarded. This is true whether the investments are new renewable generation, customer-friendly demand side energy efficiency programs, or other low-carbon solutions.

As the cost of clean energy decreases and the heavy burden of carbon pollution increases, a near-term limit on carbon emissions helps ensure these vital solutions are deployed without delay.

Interim standards can also help drive sustained investments in one especially important area – energy efficiency. Investments in energy efficiency can lead to direct financial benefits for customers – families and businesses alike – in the form of lower electric bills.

23 states are already implementing mandatory efficiency savings targets. These efforts have been overwhelmingly successful, regularly delivering two dollars of savings to customers for every one dollar invested – and in some cases up to five dollars for every one dollar invested.

Even in those states that have been implementing these programs for a while, there is little reason to believe that they have come anywhere close to exhausting the available potential. For example, analysis by McKinsey & Company found that implementing only those efficiency measures that pay for themselves would reduce the country’s total end-use energy consumption by 23 percent by 2020 relative to a business-as-usual scenario.

Analysis by the National Academy of Sciences found that the building sector could reduce energy consumption by 25 to 30 percent between 2030 and 2035, at a cost of just 2.7 cents per kilowatt hour saved. In addition, they found that cost-effective measures could reduce industrial demand 14 to 22 percent by 2020.

For all these reasons, electricity bills are actually expected to decrease as a result of efficiency investments power companies and states make to comply with the Clean Power Plan.

Near-Term Reductions are Essential to Ensure Healthier, Longer Lives for Millions of Americans

The interim emission standards are expected to drive significant near-term public health benefits across America.

In 2020 the proposed standards are expected to prevent:

  • Up to 4,300 premature deaths
  • Up to 100,000 asthma attacks in children
  • Up to 2,100 heart attacks
  • Up to 1,500 hospital admissions
  • Up to 290,000 missed school and work days

Even greater benefits are anticipated in later years.

That’s because power plants are major sources of emissions for a range of pollutants that contribute to ground-level ozone, better known as smog, and dangerous particulate pollution, better known as soot. Power plants are also a major source of emissions for pollutants that have neurotoxic or carcinogenic (cancer-causing) effects.

Power plants account for about 70 percent of U.S. total sulfur dioxide emissions and 46 percent of mercury emissions, and are important sources of nitrogen oxides. Steps taken to reduce carbon pollution under the Clean Power Plan will have the co-benefit of reducing emissions of these and other harmful air pollutants.

EPA estimates that these human health benefits outweigh the costs of compliance by a factor of seven to one.

Each year they are in effect, these important safeguards provide healthier and longer lives for Americans.

Protective Interim Standards are Flexible and Achievable

The goals of the Clean Power Plan are eminently achievable, as they are based on proven and cost-effective methods for reducing carbon pollution that many states and power companies are already demonstrating.

In addition, the Clean Power Plan provides an extraordinarily flexible structure in which states are able to craft their own path forward for reducing carbon pollution, so long as they meet the 10-year average interim target over the period 2020-2029 and then achieve the final reduction target in 2030. This flexibility provides states with the opportunity to harness their own unique opportunities and solutions in light of their own policy preferences.

When evaluating the feasibility of the standards, it is important to consider how quickly the nation’s grid is already decarbonizing. Emissions of carbon pollution from the power sector fell 15 percent from 2005 to 2014. As proposed, the Clean Power Plan only requires them to fall another 15 percent by 2030. Analysis by EIA suggests that the U.S. could cost-effectively reduce greenhouse gas emissions from the power sector about four times faster.

Here’s more evidence that the grid is decarbonizing at a considerably faster rate than what is required by EPA – in the five year period from 2007 to 2012, the Northeastern states reduced their carbon dioxide emissions from large power plants by 37 percent to 42 percent below 2005 levels. The reductions were due to a wide range of factors, including the adoption of the Regional Greenhouse Gas Initiative, shifting natural gas prices, and efficiency investments. That demonstrates the dynamic flexibility and adaptability of which the grid is capable.

This is all happening in the context of a continuously evolving and decarbonizing electric system. Since 2000, the U.S. has installed roughly 30 gigawatts of new generation capacity per year, the vast majority of which was natural gas and renewables. According to EIA, more than 20 gigawatts of utility scale renewables, natural gas, and nuclear generation are already scheduled to come online in 2015, almost half of which is wind.

Meanwhile, we continue to build new infrastructure – which can help unlock even greater opportunities.

For example, according to the Department of Energy, during the last several years more than 2,300 circuit miles of new transmission additions were constructed annually. According to FERC, there are almost 10,000 miles of proposed new transmission projects in various stages of development that have a “high probability of completion” by January 2017.

Protective interim standards will align our nation’s major investments in new infrastructure with climate security – providing lasting protections and smart investments.

Interim Standards Can Help Promote Investments that Drive Even Deeper Reductions in the Years Ahead 

The cost of zero carbon generation is rapidly falling. Wind and solar are cheaper than coal – and even natural gas in a growing number of markets.

Renewable prices are expected to continue their meteoric decline. The price for photovoltaic modules has fallen 80 percent since 2007, and wind prices have fallen 64 percent since 2009.

As a result, the solar industry is expecting to build another 20 gigawatts of new generation over the next two years alone. That’s roughly equivalent to the generation of 13 mid-sized coal plants. (The average capacity factor for new utility scale solar array is around 20 percent, while the average monthly capacity factor for the coal fleet was 61 percent in 2014.)

While EPA’s building blocks assume only modest growth in renewable generation over the next 15 years, recent shifts in price dynamics suggest that the actual market opportunity could be considerable. For this opportunity to materialize, however, power companies and investors need a clear signal about the value of reducing carbon pollution from the power sector.

Providing the clear investment signal beginning in 2020 can shape the broader range of infrastructure investments expected in the coming years, and ensure that they are consistent with the low carbon future we will need if we are to stave off the worst impacts of climate change.

That broader range of infrastructure investments includes the vast miles of electric transmission and natural gas pipelines that are expected to be built in the coming years, as well as investment decisions in today’s generation fleet. More than 30 percent of coal plants are 50 years old, and approximately one in four plants do not contain controls for sulfur dioxide or nitrogen oxides.

In total, utilities appear poised to invest up to $2 trillion in new generation, transmission, and distribution infrastructure between 2010 and 2030 in order to modernize aging generating facilities and grid systems. Any delay in establishing carbon pollution standards for the power sector increases the uncertainty and increases the risk that investments could become stranded in the future.

All of this suggests that well-designed interim standards are both achievable and essential. If anything, the standards should be strengthened given the urgency of the climate challenge, the scale of change we have seen in the power sector to date, and the significant public health and economic benefits the standards can provide.

We have an opportunity as a nation to take advantage of the fact that the economics of power generation are rapidly changing. The best way for both companies and states to position themselves for a competitive advantage in the future is to think long-term and to get on the leading edge of these emerging trends. Otherwise, there is a risk of reinvesting in assets that will be left behind by a changing market, leaving shareholders and ratepayers on the hook.

The Clean Power Plan presents a real opportunity. Let’s all work together to strengthen the program, and work to deliver a vibrant low-carbon economy for the United States.

Also posted in Economics, Energy, Greenhouse Gas Emissions, Health| Read 1 Response

Misguided Legal Attacks on Clean Power Plan Seek to Undermine Clean Air Act, Public Participation

Source: iStock

Source: iStock

The Environmental Protection Agency (EPA) will finalize rules establishing the nation’s first limits on carbon pollution from the power sector – the largest source of greenhouse gas emissions in the United States – by mid-summer of this year.

This timetable will allow EPA to carefully consider and respond to the approximately four million public comments it has received on almost every aspect of these vital and common-sense standards, which were proposed in draft form last summer as the Clean Power Plan.

Unfortunately, several states and a major coal producer have attempted to short-circuit this process by filing highly unusual legal challenges to these proposed standards. The challenges were filed in the U.S. Court of Appeals for the D.C. Circuit in two related cases, Murray Energy Corporation v. EPA (Nos. 14-1112 & 14-1151) and West Virginia v. EPA (No. 14-1146).

EDF — along with other environmental groups, a coalition of states, and a major power company — participated in these suits in support of EPA, and briefs were filed in both cases this week. (Read our brief in Murray Energy here and our brief in West Virginia here).

These lawsuits are untimely, legally unfounded, and seek to undermine a critically important democratic process.

One of the bedrock principles of administrative law is that standards developed by federal agencies go through a procedure whereby draft standards are published, the public has an opportunity to comment, and agencies review and respond to those comments in the final standards — all before legal challenges to those rules can be filed.

This process ensures that the public has a meaningful chance to weigh in on agency actions. It also helps agencies themselves ensure their decisions are well-informed and firmly grounded in law and science. In fact, proposed rules often undergo substantial changes as a result of the comment process. The rule against judicial review of proposed rules respects the importance of this process, and keeps courts and agencies from wasting valuable time and judicial resources on litigation over rules that may change as a result of public comments.

Disregarding this basic principle, the petitioners in these two cases argue that the proposed Clean Power Plan is unlawful – and demand that the court set the proposed rule aside before EPA has even finished its review of comments, much less issued a final rule.

But this fundamental jurisdictional obstacle is only the start of the problems with the petitioners’ case, which rests on an implausible reading of the Clean Air Act that would undermine the very health protections Congress sought to establish there.

EPA’s Clean Power Plan is authorized by section 111(d) of the Act, which requires EPA to administer a process by which states submit plans to regulate certain pollutants from existing sources of harmful air pollution. When enacted in 1970, section 111(d) clearly required that states establish such standards for any pollutant except those regulated under section 108 of the Clean Air Act (which addresses national air quality standards) and section 112 (which applies to acutely toxic “hazardous air pollutants” or HAPs).

For more than forty years, section 111(d) has been understood to serve a vital “gap-filling” role in the Clean Air Act – ensuring the protection of human health and welfare from harmful air pollution from existing sources, where that pollution is not adequately regulated under other provisions of the Clean Air Act.

Ignoring that sensible and long-standing framework, the petitioners in these cases have advanced an unusual theory — that EPA is barred from regulating carbon pollution at all under section 111(d) of the Clean Air Act because the Agency is already regulating different pollutants from the power sector (mercury and other air toxics) under section 112 of the Clean Air Act.

As EPA explained in its brief in West Virginia, this theory amounts to a “pick your poison” approach to the Clean Air Act – arbitrarily limiting EPA to regulating either HAPs like mercury (under section 112) or non-HAPs like carbon pollution (under section 111(d)) for any given source, but not both.

The petitioners’ interpretation not only defies logic and the basic structure of our nation’s clean air laws, it also stands in sharp contrast to arguments that industry itself made to the Supreme Court in the case of American Electric Power v. Connecticut (2011).

There, the Court specifically found that section 111(d) “speaks directly” to the problem of carbon pollution from the power sector, and held that EPA’s authority to regulate carbon pollution under section 111(d) displaces federal common law.

In oral argument in American Electric Power, attorneys for some of the country’s largest power companies told the Court in no uncertain terms that EPA does have authority to regulate carbon dioxide under section 111(d):

“We believe that the EPA can consider, as it's undertaking to do, regulating existing nonmodified sources under section 111 of the Clean Air Act, and that's the process that's engaged in now… Obviously, at the close of that process there could be APA challenges on a variety of grounds, but we do believe that they have the authority to consider standards under section 111.”

Four years later, petitioners now claim that EPA is required to adopt their interpretation as a result of changes made to the text of section 111(d) as part of the 1990 Clean Air Act Amendments.

In 1990, in an effort to update a cross-reference to the hazardous air pollution program under section 112, the Senate and House each passed technical amendments making minor changes to the same language in section 111(d). Congress then enacted, and the President signed into law, both amendments to the statute.

Even petitioners do not contest that the language of the Senate Amendment clearly preserves EPA’s long-standing authority to regulate carbon pollution under section 111(d) (as well as other pollutants not regulated under sections 108 or 112). However, petitioners have seized on the House amendment, which amended section 111(d) to require that EPA regulate “any pollutant” which is not “emitted from a source category which is regulated under [section 112].” This language, they claim, prevents EPA from regulating carbon dioxide from existing power plants —because power plants are subject to emission standards for mercury, acid gases, and other HAPs under section 112.

This argument finds no support in the Act’s text, structure, or legislative history.

First, the petitioners’ theory would radically change the structure of the Clean Air Act in a way that Congress could never have intended. Under the Petitioners’ theory, section 111(d) would not apply to any pollutant, no matter how harmful, that is emitted by the dozens of industrial source types regulated under section 112 of the Clean Air Act. Significant categories of harmful pollution, not limited to carbon dioxide, would be placed beyond the scope of regulation under the Clean Air Act. In all of the extensive debate, committee reports, and other legislative history that led up to the enactment of the 1990 Clean Air Act amendments, there is not a shred of evidence that Congress intended to create loopholes in section 111(d) as the petitioners claim.

Second, the 1990 amendments include a provision stating that standards under section 112 must not be “interpreted, construed or applied to diminish or replace” more stringent requirements under section 111 – a strong indication that Congress intended for section 112 to work seamlessly with, not displace, section 111(d).

Third, the petitioners’ theory is completely at odds with the purpose of the 1990 Amendments, which strengthened the Act in numerous ways in order to ensure that harmful air pollution was being effectively addressed.

Petitioners also urge the court to disregard what Congress actually did by ignoring the Senate amendment, which even petitioners agree clearly preserves EPA’s authority to regulate carbon pollution under section 111(d). But the Senate amendment was passed by both houses of Congress and signed into law by the President. As the law of the land, the Senate Amendment cannot be cast aside.

Instead, the petitioners emphasize a strained interpretation of the House Amendment that is not only unreasonable on its face and inconsistent with the Supreme Court’s opinion in AEP, as described above, but is contrary to all of the actions taken by every administration in the twenty-five years since the 1990 amendments were enacted.

As documented in a compelling brief filed by NYU’s Institute for Policy Integrity, EPA has adopted the view that section 111(d) applies to any pollutant not regulated under section 112 or section 108 in multiple rulemakings since 1990 — not just in the Obama Administration, but also the George W. Bush Administration, the Clinton Administration, and the Administration of George H.W. Bush, who actually signed the 1990 amendments. This long record shows that the House amendment is most reasonably interpreted to preserve the historic “gap-filling” role of section 111(d).

It is regrettable that petitioners have resorted to premature litigation rather than allow the administrative process to run its course.

EPA undoubtedly possesses the authority to limit carbon pollution from existing power plants under section 111(d) of the Clean Air Act. That's good news for families and communities that are afflicted by mercury and carbon pollution from fossil fuel power plants — the nation's single largest source of both health-harming contaminants. Congress did not intend for our children to have to "pick their poisons," but instead created a seamless framework – which Republican and Democratic administrations alike have long carried out — to safeguard our children's health from all harmful air pollution.

Cecilia Segal, a legal intern at EDF, helped to prepare this post.

Also posted in Clean Air Act, EPA litgation, Greenhouse Gas Emissions, Policy| Comments are closed

The Clean Power Plan Wins Support from Millions of Americans, and a Broad Array of Diverse Groups

Americans rally for the Clean Power Plan

Americans rally for the Clean Power Plan

January is a time for New Year’s resolutions, hot chocolate and the tantalizing possibility of snow days.

For me, it’s also a time when I reflect on what the past year has meant for me, my family, and our world.

Right now, I’m focusing on climate change through these three interwoven lenses. Fortunately, this year I have a lot of significant and positive steps to reflect on.

Here’s the one I’m thinking about the most: the Clean Power Plan.

The Clean Power Plan will set the nation’s first-ever carbon pollution standards for power plants. It’s one of the biggest steps we’ve ever taken to address the pollution that harms our climate.

EDF strongly supports the Clean Power Plan, of course, but we’re certainly not alone.

These urgently needed standards have already won broad support from the faith community, moms, health and medical associations, businesses, power companies, Latino groups, states, and others – as well as from EDF and other environmental groups.

And more than three and a half million Americans sent comments in support of the Clean Power Plan to the Environmental Protection Agency (EPA).

Here are just a few quotes highlighting the Clean Power Plan’s support among diverse groups, and demonstrating the broad support about the need to protect our climate:

Climate change poses grave threats to public health. To protect our communities and the public, the United States must significantly reduce carbon pollution from the largest source, which are existing power plants. Our organizations support EPA’s overall approach with the Clean Power Plan, but urge EPA to strengthen the final plan to provide greater protection to public health.

  • Comment Letter from medical and public health associations: American Academy of Pediatrics, American Heart Association, American Lung Association, American Public Health Association, American Thoracic Society, Center for Climate Change and Health, Health Care Climate Council, Health Care Without Harm, Public Health Institute, and Trust for America’s Health

We applaud EPA for proposing a rule that will place the United States on a path to achieving meaningful reductions in carbon pollution, although we recognize that greater overall reductions will be necessary to meet the challenge of climate change. Our states are already demonstrating that significant, cost-effective reductions can be achieved from the power sector through the “system” EPA identifies as the basis for its proposed emission guideline. We therefore support EPA’s general approach to setting the emission guideline.

  • Joint Comments of state environmental agency leaders, energy agency leaders, public utilities commissioners from 14 states: California, Connecticut, Delaware, Illinois, Massachusetts, Maryland, Maine, Minnesota, New York, New Hampshire, Oregon, Rhode Island, Vermont, and Washington

We support the proposed rule’s overall objective of achieving meaningful emission reductions from existing power plants and encouraging investment in a clean energy future, and these technical comments are offered for the purpose of constructively supporting that objective. We agree with EPA that meaningful emission reductions can be achieved from the electric sector while maintaining electric system reliability.

 We strongly support EPA in moving forward with the proposed Clean Power Plan in the strongest form possible. We know that communities of color and low-income communities, including the Latino community, are frequently among those most negatively impacted by carbon pollution. Whether it is exposure to health damaging copollutants associated with carbon emissions or the present and worsening effects of climate change, these impacts are both direct and indirect and they threaten the social and economic order of overexposed and overburdened communities.

As businesses concerned about the immediate and long-term implications of climate change, we, the undersigned, strongly support the principles behind the draft Carbon Pollution Standard for existing power plants. The Environmental Protection Agency’s (EPA) proposed Carbon Pollution Standard for existing power plants represents a critical step in moving our country towards a clean energy economy…Our support is firmly grounded in economic reality. We know that tackling climate change is one of America’s greatest economic opportunities of the 21st century and we applaud the EPA for taking steps to help the country seize that opportunity.

  • Letter signed by 223 companies, BICEP, CERES, CDP, and The Climate Group. Companies signing the letter include Unilever, Kellogg Company, Solar City, and SunPower

EPA's efforts to limit dangerous carbon pollution from power plants will protect public health, fight climate change, and help our economy by sparking innovation in clean energy technologies. Our communities, our families and our children are counting on your leadership. Please enact strong limits on carbon pollution from America's existing power plants.

And, while delivering more than 10,000 comments in support of the Clean Power Plan, The Reverend Sally Bingham, founder and president of Interfaith Power and Light said:

[W]e urge the EPA to move forward with the proposed standards for existing power plants so that we can reduce carbon pollution as quickly as possible to address climate change, protect human health, and care for all of Creation.

It has been a great privilege to work on the Clean Power Plan at EDF during the past year. That’s one of the things I’m reflecting on personally.

It’s true that climate change is an immense issue with far-reaching impacts. But the immensity of the challenge has united an extraordinary number of Americans, and moved a wide range of diverse groups to take action — and that is something we can all celebrate this New Year.

Also posted in Clean Air Act, Partners for Change, Policy| Read 1 Response

Illinois Legislators Pledge Support for EPA’s Proposed Carbon Regulations

By Dick Munson, Director, Midwest Clean Energy, Environmental Defense Fund

While the Environmental Protection Agency (EPA) sorts through the more than 1.6 million comments received on its proposed Clean Power Plan (CPP), one group is stepping out to pledge its support of the landmark proposal. 53 Illinois legislators recently signed a letter urging the EPA to finalize the plan, which will set limits on carbon pollution from existing power plants for the first time ever.

Power plants currently account for nearly 40 percent of the nation’s carbon pollution and Illinois’s proposed target would result in a 33 percent reduction in the state’s carbon output by 2030. Fortunately, due to impressive state efforts to invest in clean energy over the past few years, Illinois is well-positioned to meet the challenge.

CPP is an economic opportunity

The Illinois legislators argue the CPP will help the state “achieve even greater cuts in our emissions, health benefits for all our citizens, and will spur further growth in our state’s economy.” The CPP will further the state’s transition to a clean energy economy by attracting investment in innovation, creating more jobs, and keeping electricity prices affordable.

Illinois is already home to nearly 100,000 clean energy jobs, and that number is expected to grow nine percent this year. To put that into perspective, the clean energy sector is roughly equal to the size of the state’s real estate and accounting industries combined.

Furthermore, the state’s energy efficiency standard, established in 2008, has already saved consumers nearly a billion dollars.

Illinois supports the EPA, clean energy

These members of the General Assembly said the EPA has both the clear authority as well as the responsibility to reduce greenhouse-gas emissions that contribute to global warming. Unlike some states that have reacted to the plan with the-sky-is-falling predictions, Illinois state leaders “pledge to work with both U.S. EPA and Illinois EPA to ensure we have a strong plan that works for Illinois to reduce carbon emissions.”

This kind of support is a clear choice for Illinoisans; clean energy is popular in the Land of Lincoln. Hart Research found a whopping majority of Illinois voters – 71 percent – support EPA enforcing new limits on carbon pollution. A separate poll by Fairbank, Maslin, Maullin, Metz & Associates (FM3), and Public Opinion Strategies found remarkable support for investing in clean energy: 95 percent for energy efficiency, 88 percent for wind energy, and 80 percent for solar energy.

To thank the legislators for their leadership, a coalition of environmental groups produced a short video featuring Tony Award-winning director, Anna D. Shapiro:

EPA’s final rule is expected by June 2015, after which each state must develop an implementation plan to reduce carbon pollution and meet its target. EDF looks forward to continuing its work with legislators and regulators on the development of an effective plan that builds on Illinois’ already substantial clean energy progress.

This post originally appeared on EDF's Energy Exchange blog

Also posted in Energy| Read 1 Response

Carbon markets reward 10 pioneering states. Who's next?

Source: Flickr/Nick Humphries

A handful of states are already proving that economic growth and environmental protection can go hand in hand – and they’re using market forces, price signals and economic incentives to meet their goals.

These results are particularly salient as states consider how to comply with the U.S. Environmental Protection Agency’s plan to limit dangerous pollution from power plants.

So let's take a closer look at what's happening on our two coasts.


California: 4% cut in emissions, 2% growth

California’s landmark cap-and-trade program is closing out its second year with some strong results. Between 2012 and 2013, greenhouse gas emissions from the 350+ facilities covered by the program dropped by 4 percent, putting California solidly on track to meet its goal to cut emissions to 1990 levels by 2020.

During the same period, the state’s gross domestic product jumped 2 percent.

What’s more, the climate change and clean energy policies ushered in by California’s Global Warming Solutions Act of 2006 helped slash carbon pollution from in-state and imported electricity by 16 percent between 2005 and 2012.

All this while attracting more clean-tech venture capital to California than to all other states combined.

Northeast: GDP rises as emissions and power prices drop

Those who would rather turn east for inspiration can look to the nine-state Regional Greenhouse Gas Initiative, a cap-and-trade system stretching from Maryland to Maine.

Since the RGGI program launched in 2009, participating states have cut their greenhouse gas emissions 2.7 times more than non-RGGI states, while growing their gross domestic product 2.5 times more than non-RGGI states.

The states have experienced these dramatic win-win benefitswhile also seeing retail electricity prices across the region decline by an average of 8 percent.

With 70 percent of Americans supporting EPA’s Clean Power Plan – and given that everyone warms up to the notion of a sound economy – can these carbon markets be replicated elsewhere?

States choose their own path

EPA’s rules aim to cut power plant pollution by 30 percent by 2030, giving states individual reduction targets along withgreat flexibility to meet that national goal.

Hitting the sweet spot of supporting economic growth and environmental protection will be a primary objective, and the options are virtually endless. Energy efficiency, renewable energy, power plant efficiency and cap-and-trade are all good bets.

Expanded markets offer new options

Not surprisingly, EPA mentioned RGGI numerous times in its proposed power plant standards as an efficient way to cut carbon pollution. Since then, experts have suggested that regional markets, or even a single national market in which all 50 states participate, may be a way to make the plan affordable.

States still have some time to ponder their options.

EPA is expected to finalize the rule in summer 2015, and states have another year after that to submit plans to EPA detailing how they intend to meet their targets. Those entering into multistate agreements have three years.

The good news is that they wouldn’t be starting from scratch. The experiences of California and the RGGI states can provide useful, real-world insights as states plot their path toward a clean energy future.

This post originally appeared on our EDF Voices blog

Also posted in Clean Air Act, Economics, Energy, Greenhouse Gas Emissions, Policy| Comments are closed

Why these leading companies welcome EPA's carbon pollution rules

Copyright: istockphoto.com

Who’s for carbon emission rules? For starters, some of America's largest companies and most innovative industry leaders, who are moving aggressively to wean themselves off fossil fuel-fired power through energy efficiency and conservation.

So far, more than 120 corporations have come out in favor of the U.S. Environmental Protection Agency’s plan to cut carbon emissions from power plants, including some of our most well-known brands.

It’s not hard to understand why.

Regulatory certainty and a growing market for increasingly competitive renewable energy will help these companies manage risk, meet changing customer expectations and achieve corporate sustainability goals.

Added bonus: They earn recognition for being on the cutting edge of the clean energy economy.

"Just what we need"

The California headquarters of The North Face is 100 percent powered by solar and wind, and it feeds excess electricity into the grid. Other buildings owned by the outdoor products company have similar ambitions.

"EPA’s plan will help spur additional investment in renewable energy and energy efficiency and that’s just what we need,” says James Rogers, North Face’s sustainability manager.

JLL, a commercial real estate giant that has made energy-efficiency a key part of its portfolio, agrees. Since 2007, the company has helped clients reduce greenhouse gas emissions by nearly 12 million metric tons and energy costs by $2.5 billion.

“I’d like to think that more efficiently managing our electricity and power facilities is truly a ‘no brainer,’” writes JLL’s chairman of energy and sustainability services, Dan Probst, who has also spoken publicly in favor of EPA’s plan. “It will reduce greenhouse gas emissions and our impact on the planet, reduce costs for both power companies and consumers, and help drive the economy.”

And in September, IKEA’s chief executive and group president, Peter Agnefjäll, and Steve Howard, the home furnishing company's chief sustainability officer, marched with 400,000 others in the People’s Climate March in New York City to call for stronger policies on global warming.

“We need strong policy leadership in order for us and others to accelerate innovation,” Agnefjäll noted.

Climate change bad for business

But business leaders at the forefront of the clean energy movement are also driven by concern that unabated climate change will hurt the long-term viability of their businesses.

For example, Starbucks’ sustainability manager Jim Hanna has been warning for several years that soil changes and increased threats from pest infestations are altering the way coffee can be grown. Global warming already poses "a direct business threat to our company," he has said.

And today, the private sector is becoming increasingly concerned that water scarcity may hamper business growth in coming years.

Resources for businesses

Here at Environmental Defense Fund, we believe that the Clean Power Plan is an opportunity for any business that wants to get ahead of the game.

Building on our long track record of partnerships with the private sector, we’ll be working with businesses to help them make their voices heard as the Clean Power Plan takes shape – and to prepare them for a new reality.

Interested in learning more? We're hosting a webinar on November 19 to get the conversation started and look forward to the collaboration.

This post originally appeared on our EDF Voices blog

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