Category Archives: Clean Power Plan

The Clean Power Plan and the Deployment of Renewable Energy

(This post originally appeared on Resources for the Future's Expert Forum on EPA's Clean Power Plan, on October 2, 2014)

The proposed Clean Power Plan identifies the “best system of emission reduction” to address carbon pollution from power plants as comprised of four building blocks: (1) efficiency improvements at coal-fired power plants; (2) shifts in utilization away from higher-emitting fossil plants towards lower-emitting fossil plants; (3) deployment of zero-carbon generation sources such as wind and solar; and (4) harvesting demand-side energy efficiency improvement opportunities.

This system best satisfies the statutory command of the Clean Air Act, which directs EPA to identify the system that maximizes emissions reductions, considering cost and impacts on energy and other health and environmental outcomes.

This system also reflects what is happening across the country (and indeed, around the world) to reduce carbon pollution—states and companies are using the interconnected electric system as a whole to cut carbon pollution, deploying zero- and low-emitting generation and reducing reliance on high-emitting generation, and doing so flexibly to ensure that reliability is maintained and emissions reductions are achieved cost-effectively.Fifteen states wrote to EPA Administrator Gina McCarthy as the Clean Power Plan was being developed to describe the success they have had in deploying this system, cutting carbon pollution from power plants by 20 percent between 2005 and 2011, with some states achieving reductions of over 40 percent during that period.

Renewable energy is our future.

More than 60,000 megawatts of wind energy capacity have been installed in 39 states and an additional 12,000 megawatts are under construction. Wind power capacity in the United States has increased nine times over since 2005, supporting over 80,000 jobs and driving a new manufacturing sector with over 550 facilities across the country. Solar generating capacity is also rising rapidly—increasing by 418 percent between 2010 and 2014. PG&E has connected more than 100,000 customers with solar panels to the grid, saving the average residential customer with solar panels $130 a month. Costs of renewable generation have been falling rapidly, and power companies such as Xcel, DTE, MidAmerican, Georgia Power, and Austin Energy have announced renewable energy purchases that are outcompeting fossil-fueled alternatives and that will lower customer bills by saving fuel costs.

The Clean Power Plan’s assessment of the potential for renewable energy to reduce carbon pollution bases state targets on an average of existing renewable energy policies in different regions of the country. By taking this approach—effectively looking backward—the proposal fails to reflect the dynamism in renewable energy deployment that is happening across America, and fails to satisfy Section 111’s technology-forcing framework.

The proposed alternative approach, which would consider the technical and economic potential to harvest renewable energy in each state, has the potential to better reflect the country’s vast renewable energy resources. The analysis underlying the alternative approach needs to be updated to reflect current technologies (such as taller wind turbines and distributed generation) and current costs (which are falling rapidly).

An up-to-date analysis of the technical and economic potential for renewable energy to cut carbon pollution will provide a strong legal and technical foundation for the Clean Power Plan, and help facilitate our transition to the clean energy–fueled economy of the future.

Also posted in Economics, Energy| 1 Response

Victory for Healthy Air: Court Rejects Nebraska Attorney General's Attempt to “Short-Circuit” the Law in Challenge to Carbon Pollution Standards

Nebraska Attorney General Jon Bruning’s attempt to block the U.S. Environmental Protection Agency’s (EPA) efforts to limit carbon pollution from power plants failed yesterday.

The federal district court in Nebraska dismissed the Attorney General’s lawsuit challenging EPA’s proposed Carbon Pollution Standards for new fossil fuel power plants.

The court held that:

[the Attorney General’s] attempt to short-circuit the administrative rulemaking process runs contrary to basic, well-understood administrative law. (Decision, Page 1)

The Attorney General’s challenge was flawed because it was filed only one week after EPA published proposed carbon emission standards for new power plants, in January 2014.

But the law is this case is clear and anchored in common sense.

As the court explained, legal challenges may only be brought against final standards:

Simply stated, the State cannot sue in federal court to challenge a rule that EPA has not yet actually made. (Decision, Page 1)

EPA’s proposed action is still in draft form and has been the subject of extensive public comment.

In December 2012, the D.C. Circuit rejected a similar challenge to EPA’s original proposal for the very same reason — that the standards had yet to be finalized.

This latest attempt at an end run around the Clean Air Act would have deprived the public of a chance to comment on a proposed rule and present its diverse viewpoints to the agency.  Moreover, for a court to review standards that are still being developed would be a waste of judicial resources and Americans’ tax dollars.

The court also noted a defect in the Nebraska Attorney General’s central legal claim.

The Attorney General argued that EPA’s reliance, in part, on data from facilities receiving federal assistance was unlawful.

The court explained:

The merits of this claim are not before the Court. But the Court notes that [Energy Policy Act section] 402(i) only forbids the EPA from considering a given technology or level of emission reduction to be adequately demonstrated solely on the basis of federally-funded facilities. 42 U.S.C. [section] 15962(i). In other words, such technology might be adequately demonstrated if that determination is based at least in part on non-federally-funded facilities. (Decision, Footnote 1, Page 5)

EDF previously examined the flaws with the Nebraska Attorney General’s legal claim in a detailed white paper. (You can read my blog about the white paper here)

Unfortunately for the citizens of Nebraska, Attorney General Bruning is devoting precious taxpayer resources to misguided legal attacks.

It’s not the only way in which Nebraska’s taxpayer dollars are being deployed to block vital clean air progress for our nation.

The Guardian reported that Bruning, on a conference call organized by the American Legislative Exchange Council (ALEC), told other state attorneys general that Nebraska has challenged EPA authority more than 30 times and will keep on doing so.

Yet the Carbon Pollution Standards for new power plants have won broad public support from millions of Americans — including public health associations, Moms Clean Air Force, faith-based organizations, the League of United Latin American Citizens, and leading power companies.

Nebraska’s failed lawsuit is just one more misguided attempt to prevent vital limitations on the carbon pollution emitted by power plants from moving forward.

According to the Guardian, Bruning claims that:

EPA continues to try and ‘fix things’ that are not broken.

Tell that to the millions of Americans who are experiencing the harmful impacts of climate change.

While EPA takes steps to address carbon pollution from the single largest source in the country, Attorney General Bruning is devoting Nebraska’s tax dollars to flawed lawsuits.

Fortunately, millions of Americans in red and blue states alike are working together to forge solutions for our families, our communities and our nation.

Also posted in EPA litgation, Greenhouse Gas Emissions, News, Policy| 2 Responses, comments now closed

EPA’s State-by-State Carbon Limits Indicate Smart Policy, Not Arbitrary Rulemaking

By Kate Zerrenner

EDF_FB_renewableEnergy_solar (1)In June, U.S. Environmental Protection Agency (EPA) announced – for the first time ever – standards to limit carbon emissions from U.S. power plants, known as the Clean Power Plan (CPP). Currently power plants emit 40 percent of U.S. carbon emissions, but under the proposed Clean Power Plan, the U.S. power sector will cut carbon pollution by 30 percent below 2005 levels.

Since this announcement, the usual suspects have attacked the CPP, calling its proposed state-by-state reduction standards arbitrary. Their claims couldn’t be further from reality. When EPA asked states for feedback on how to best craft this standard, states asked for two things: individual standards and flexibility. And that’s what they got. Anyone familiar with the proposed standards will know they are based on a consistent and objective methodology that takes into account each state’s unique energy portfolio and emissions, as well as built with maximum flexibility in mind.

At first glance, the climate-change-denying crowd dismissed the standards as arbitrary, because the limits vary from state to state. For example, Washington needs to reduce its emissions rate by 72 percent by 2030, while Kentucky only needs to cut its emissions rate by 18 percent over the same period. Texas lies somewhere in the middle with a 39 percent reduction required. So what gives?

How did EPA get those numbers?

Let’s unpack the methods that went into EPA’s carbon pollution limits. EPA’s vision for the plan was to give the states complete ownership and flexibility in reducing overall carbon emissions. EPA decided on a simple greenhouse gas performance metric for each state:

Total power plant emissions in one year ÷ Total electricity generation in one year
= Emissions reduction rate

The states have complete control and flexibility over how to meet the emissions reduction rate.

To figure out each state’s potential to reduce emissions, EPA analyzed the practical and affordable strategies that states and utilities are already using to reduce greenhouse gas emissions from the power sector, such as energy efficiency, improving power plant operations, and using more renewable energy. By analyzing state-specific data, EPA calculated practical targets for each state. Their analysis formally considers four “building blocks” for cleaner power:

  1. Improving the efficiency of existing power plants,
  2. Increasing use of the most efficient natural gas plants,
  3. Using more renewable energy, and
  4. Expanding demand-side energy efficiency—the same low-hanging fruit for which experts have been advocating for years.

States are already on their way

If we look at each state’s proposed reductions individually, it’s clear that EPA’s limits will not crash the economy or tear down the power sector. In fact, in many states it will not be difficult to meet EPA’s limits ahead of schedule.

Washington, with its seemingly onerous 72 percent reduction mandate, had already ordered its largest coal plant to shut down by 2025. Closing that coal plant alone will reduce the state’s emissions by 70 percent, because much of Washington’s electricity comes from hydro power. And Kentucky leaders have already devised a strategy to meet the state’s 18 percent reduction goal.

In Texas – my home state – we’re well on our way to meeting the 39 percent reduction standard set by EPA by simply amplifying current trends, namely relying on more West Texas wind, widening the use of efficient natural gas electricity, and taking advantage of the state’s solar potential. Now Texas leaders should craft the best framework for the state – one that has the potential to bring in billions of dollars directly to our state economy, create more homegrown jobs, and lower Texans’ electricity bills. If state leaders make another “principled stance” against the EPA, like they did with the greenhouse gas permits, we can only expect for Texas to fall behind other states as they race toward the trillion dollar clean energy economy. Come January, EDF urges the Legislature to take the bull by the horns and show the nation how Texas will continue to be a leader in energy.

It’s clear that EPA’s limits were developed with a specific and pragmatic methodology. Variation in reduction goals from one state to another reflects variation in the circumstances of individual states, which EPA wisely took into account. Those who condemn the rules as arbitrary are ignoring the actual basis for the rule.

This post first appeared on our Texas Clean Air Matters blog.

Also posted in Clean Air Act, Energy| 1 Response, comments now closed

5 Undeniable Truths about the Clean Power Plan

Do you get a sense of déjà vu when you hear the fossil fuel industry arguments against the Environmental Protection Agency’s new climate change plan? You’re not imagining things – we’ve heard these many, many times before.

The EPA recently held public hearings around the country to solicit comments on its new proposal to put reasonable, nationwide limits on climate pollution from power plants.

The plan is moderate, flexible, and paves the way for considerable economic gains, but the substance hardly mattered for some die-hard opponents: The fossil fuel industry allies trotted out the same talking points about the supposed costs of action and American indifference to clean air policies that they always do.

Tellingly, industry lobbyists and their friends in Congress couldn’t even be bothered to wait and see what the rule said before blasting it with wildly inaccurate claims about the cost of implementation.

Fossil fuel industry allies have clung to these false arguments for decades, so it’s little wonder misinformation continues to swirl around these rules and the clean energy debate at large.

Here are the real facts about five issues opponents raised about the Clean Power Plan:

1. Renewable energy is taking hold.

Opponents of clean air regulations are keen to convince the public that affordable, renewable energy is a pipe dream. But the truth is renewable energy has never been more efficient, it’s never been less expensive, and it’s taking root all over the country.

Take a look at solar power: According to the U.S. Solar Energy Industries Association, the cost of solar power plummeted 60 percent between the first quarter of 2011 and the second quarter of 2013. The long-term picture is just as impressive: In 2012, rooftop solar panels cost about 1 percent of what they did 35 years earlier.

And solar isn’t the only renewable that’s catching on. Wind energy accounted for one-third of new power capacity over the last five years, an amount that could double in the years to come.

Texas, the nation’s top wind producing state, saw wind energy generation grow a whopping 13 percent in 2013. Last year, 60 percent of wind projects in the entire United States were in Texas.

2. Americans support limits on greenhouse gas emissions. 

Industry lobbyists often suggest that Americans cringe at any and all attempts to curb the pollution that causes global warming, but that argument is flat-out false. Recent polling shows that's clearly not the case.

A recent study by Yale found that 64 percent of Americanssupport strict carbon dioxide emission limits on existing power plants.

3. The power plant rules will be efficient and affordable. 

As I wrote earlier, the fossil fuel industry and their allies in Congress were eager to say the proposed rules will cost vast sums of money that will trickle down to consumers and destroy jobs in the process. The Washington Post Fact-Checker thoroughly debunked those claims, and it is not the first time industry has been caught red-handed.

Time and again, the cost of implementing any rules related to the Clean Air Act are five to 10 times less than the industry initially estimates they will be.

4. Power companies already have tools to implement pollution limits.

The Clean Power Plan is part of President Obama’s broader plan to reduce nationwide carbon dioxide emissions. He has set as a goal to reduce emissions by 17 percent by 2020 nationwide, using 2005 as the baseline. Industry opponents claim the emission reduction goal is unrealistic, but there's evidence to the contrary.

Xcel Energy, one of the country’s largest electricity and natural gas providers, has already reduced emissions 20 percent since 2005. The company is on pace to decrease emissions by 31 percent in 2020.

5. States can handle implementation better than you may think. 

Yet another common complaint from industry is these meaningful clean air regulations are too big and unwieldy for states to implement. Don’t tell that to California, which last year implemented a world-class climate law that has led to substantive greenhouse gas reductions and economic growth.

And the nine states in the Regional Greenhouse Gas Initiativeare already reaching stellar results.

Industry allies are actually half-right about one thing, though: The Clean Power Plan is indeed a huge deal. It may very well serve as a turning point for the United States and the world in our effort to reduce greenhouse gasses, while pointing the economy toward revitalization through clean energy.

The sooner opponents stop circulating myths to the contrary, the sooner everyone can reap those benefits.

This post originally appeared on our EDF Voices blog.

Also posted in Economics, Greenhouse Gas Emissions, Health, Jobs, Policy| 2 Responses, comments now closed

Why Support the Clean Power Plan? Testimony from the EPA Hearings

By Dan Upham

Across the country this week, the U.S. Environmental Protection Agency (EPA) held public hearings to solicit comments about its Clean Power Plan, which will put the first-ever national limits on the amount of climate pollution that can be emitted by power plants. EDF’s president, a senior attorney, and a clean energy specialist were among the hundreds of Americans who testified in support of the Plan. As these selections from EDF staff testimonies illustrate, the Plan offers moderate, flexible, and necessary measures to address climate change at the federal and state levels.

It’s necessary: The climate is changing across the U.S.

Image of the DC rally outside the EPA hearings. Source: Heather Shelby

“The stakes are high in Colorado as hotter temperatures, reduced winter snowpacks, and more frequent droughts are expected to decrease Colorado River streamflows.

Our treasured Rocky Mountain ecosystems are especially susceptible to climate change impacts, and high elevations have already experienced temperature increases at rates three times the global average.

Increased warming, drought, and insect outbreaks have increased wildfires and impacts to people and ecosystems throughout the West.” – Graham McCahan, a senior attorney with EDF’s U.S. Climate and Air legal team.

“The Southeast is the region expected to be the most affected by increasing temperatures. Extremely hot days – 95°F or above – could cause a decrease in labor productivity by 3.2% in the construction, mining, utilities, transportation, and agricultural sectors. Extreme heat also is projected to cause 11,000 to 36,000 more deaths each year.” – Greg Andeck, EDF’s North Carolina senior manager, Clean Energy.

“The bottom line is that we cannot continue down the path of unlimited pollution.” – Fred Krupp, EDF’s president.

It’s flexible: It can work well in different states

“Strong carbon pollution standards are consistent with a strong clean energy economy in Colorado.

Solar and wind resources are cheaper than ever before. In 2012, rooftop solar panels cost approximately one percent of what they did 35 years ago, and the cost of solar panels fell by 60 percent from 2011 to 2013. This past May, Xcel Energy [a Colorado utility] announced that it is now acquiring renewable energy at prices that out-compete fossil fuels.” – Graham McCahan

“The plan would allow North Carolina to get credit for steps it already has taken to grow clean energy and invest in energy efficiency. Here are some examples:

  • North Carolina’s solar industry is now ranked 4th in the country in installed solar capacity, thanks to policies that make it easier for investors to finance projects.
  • North Carolina has more than 1,000 clean energy and energy efficiency companies that can help the state meet the Clean Power Plan.

North Carolina demonstrates how a state can move to a clean energy economy in a thoughtful, measured and cost-effective manner.” – Greg Andeck

It’s moderate (and affordable): The cost of inaction is high

“We know that transition to clean energy is not only possible, it’s affordable. In fact, every time EPA has used the Clean Air Act to limit air pollution, it has ended up boosting our economy. Overall, the benefits have outweighed the costs by thirty to one. And every past rule has saved lives – tens of thousands of them.

Hiding from challenges is not what Americans do. And it is certainly the wrong path for us and the generations to come.” – Fred Krupp

It’s imperative: Millions stand to benefit  

“For the millions of kids who will have fewer asthma attacks in the future.

For the workers who will find jobs in new and growing industries.

For the rate payers, who will see their electricity bills go down.

For all of those who will be protected from the most damaging impacts of climate change.

And for our children and grandchildren, who will know that our generation cared enough to leave them a safer, healthier world.” – Fred Krupp

This post first appeared on EDF Voices

Also posted in Clean Air Act, Energy, Health, Jobs, Policy| 1 Response, comments now closed

Americans Have Caught the Fever

This is an amazing, exciting time. I, like so many millions of Americans, have been completely swept up in the groundswell of exhilarating national pride peaking just as we are about to celebrate our 238th anniversary as an independent nation.It’s time to wave that flag high and proud!

Flickr/Little Baby G

Flickr/Little Baby G

Americans have caught on to a movement that most of the rest of the world has long embraced. From Germany to England, France to Mexico, Brazil to South Korea, it unites so much of the world in a common purpose, a shared sense of hope and global cooperation. And over these last few weeks, I have rejoiced as Americans have caught the fever.

No, I’m not referring to the FIFA World Cup soccer tournament – though that has been a real treat to watch. And hats off to the inspiring performance of the Stars and Stripes squad in Brazil. What an amazing effort against Belgium. As a parent of a young soccer player, I couldn’t be more thrilled.

Actually, I’m talking about the overwhelming support Americans are showing for real climate action since the EPA announced its landmark Clean Power Plan to slash carbon pollution from America’s power plants.

And how inspiring it is. We Americans have been debating national climate policy since I was in high school in the first Bush administration. Here we are (gulp) a quarter century later, and we now have a proposal to — for the first time ever — limit dangerous climate pollution from America’s fossil fuel-fired power plants, the largest source of climate pollution in the U.S.

Can you imagine that we have spent all this time with NO NATIONAL LIMITS on climate pollution from power plants? Frankly, it’s shocking.

We’ve spent years debating a national cap and trade bill, a carbon tax, and a wide range of renewable energy standards to drive down America’s dependence on fossil fuels. And, we’ve made some progress.

But, all along, our fossil fuel-fired power plants were left unchecked, allowed to spew carbon dioxide into our atmosphere with no national limits.

That’s why the EPA Clean Power Plan is so essential and it’s why every American who cares about clean energy and a safer climate future should take action and support strong limits.

When the EPA announced its proposal a month ago, it was supposed to be divisive. It was supposed to ignite a furor of debate. The vaunted Big Carbon PR machine was supposed to be geared up and ready to grind the proposal to a pulp.

But, something funny happened on the way to cleaner energy. In the weeks since the EPA announced its pollution reduction plan, there has been a profound and perplexing lack of coherent or competent response from the richly financed corporate public relations industry. Yes, the Koch brothers, Karl Rove, the National Mining Association, and others are using this as a wedge issue to ramp up political pressure.

But, these squawking voices have been countered by former Republican EPA Administrators and former Republican Treasury Secretary Henry Paulson, who have stepped up in recent weeks to support climate action. Even some utility companies have warmed to the proposal.

Overall, public support has been overwhelmingly positive. Washington Post poll last month found that as many as 70 percent of all Americans support carbon pollution limits for power plants — including 63 percent of Republicans and 69 percent of Independents.

Let’s be very clear about this. There are precious few political issues these days that garner 70 percent support – across all political lines. That’s important. And it is heartwarming evidence that America is ready to act on climate.

So, on this Independence Day, I’m planning to celebrate our great country by watching some World Cup soccer, enjoying the day off with my family, and rejoicing in the hope and opportunity we have as a country to unleash our clean energy future.

Go, go USA. I believe that we will act!

Also posted in News, Policy, What Others are Saying| Comments closed

Defenders of dirty power plants use doublespeak to shape debate

Under the proposed Clean Power Plan, plants must cut carbon dioxide emissions by 30 percent below 2005 levels by 2030.

(This blog originally appeared on EDF Voices)

As we’ve noted before, few opponents of the federal Clean Power Plan want to stand up and say they favor unlimited carbon pollution. So they’re apt to frame their arguments in more clever ways.

Under the proposed Clean Power Plan, plants must cut carbon dioxide emissions by 30 percent below 2005 levels by 2030.

Sometimes their approach is to use misleading statistics – like when they talk about the cost of moving to clean energy without mentioning the much larger benefits of doing so.

Or they’ll use an appealing bit of logic, which sounds right until it’s exposed to the way the world really works.

It takes more than one EPA rule

One of those seemingly-logical attacks is the complaint that the plan the U.S. Environmental Protection Agency rolled out June 2 won’t solve climate change.

A CATO Institute blog says, “EPA’s Regulations Will Not Mitigate Climate Change.” At first glance, that seems like a step forward from the crazier objections – for instance, that climate change doesn’t exist.

But it’s really just a new strategy aimed at the same goal, like a lawyer who failed to impress the jury with an insanity defense and is now piecing together a fake alibi.

Your suspicions should be raised immediately when coal conglomerates complain that an EPA rule does “little” to solve an environmental problem, which on the surface sounds like a worthy objection. Why should the United States take this step to end unlimited pollution from power plants, they ask, when it won’t resolve the problem we are facing?

The complaint rests on the idea that the pollution reductions from U.S. power plants will not cut enough emissions to stop global warming. And that’s true.

It’s like telling Ike to call off D-Day because the landing alone wouldn’t defeat the Germans.

Even though power plant emissions are the largest source of carbon pollution in the United States – as of 2011, our utilities put out more of this pollution than the entire economies of every foreign country but China – they’re only a portion of total global output. So this plan does not, on its own, solve climate change.

But this argument is sort of like telling Ike to call off D-Day because the landing alone wouldn’t defeat the Germans.

Or it’s like telling a person with multiple risk factors for heart disease to keep smoking, because quitting won’t prevent an attack on its own. The reality is that in solving big problems, a major first step is always necessary and it's always insufficient.

The most important truth – in fact, the very reason some in industry are scrambling for arguments to oppose this new rule – is that the Clean Power Plan is a turning point in our environmental and economic history.

A historic step

For the first time, we’ll cut carbon emissions from their largest source, and begin to drive greater investment in abundant, affordable clean energy.

It will also have a big impact around the world. Addressing a major global problem in the 21st Century requires America to lead by example.

By making a substantial cut in our largest source of carbon emissions, we will not only cut billions of tons of pollution, we will enable a much bigger step forward internationally.

Let’s face it: Most of those in the fossil fuel industry who argue that the Clean Power Plan doesn’t cut enough pollution are really just trying to make sure we don't cut any pollution at all.

They know that if they’re able to intimidate the Congress into blocking these rules, it would make it substantially less likely that the U.S. and the rest of the world will move forward to a cleaner future.

But there’s an easy test to tell if someone offering this complaint is sincere: If they’re making suggestions to further strengthen the final rule, then they’re actually interested in a solution.

If not, they’re just trying to keep America living in the past.

Also posted in Energy, Greenhouse Gas Emissions, News, Setting the Facts Straight| Comments closed

The Clean Power Plan: Protecting Health and the Climate While Ensuring Electric Reliability

(This post is by EDF Associate Vice President for Clean Energy Cheryl Roberto, with EDF Senior Director of Clean Energy Collaboration Diane Munns and legal fellow Peter Heisler)

Source: Chris J Dixon via Wikimedia Commons

The U.S. Environmental Protection Agency’s (EPA) new Clean Power Plan will empower states to design customized, cost-effective programs to reduce climate-destabilizing pollution while ensuring continued electric system reliability.

States will be able to deploy flexible compliance mechanisms such as:

  • renewable energy
  • demand-side energy efficiency
  • shifts in utilization away from higher-emitting and towards lower-emitting generation sources
  • measures at specific plants to secure reductions in carbon pollution

And states will be able to do all of this while designing their compliance plans to make sure that generation resources are fully sufficient to ensure reliability.

The “bottom line,” according to Analysis Group, is that “there is no reasonable basis to anticipate that EPA’s guidance, the states’ [plans] and the electric industry’s compliance with them will create reliability problems for the power system.”  On the contrary, “[t]o date, implementation of new environmental rules has not produced reliability problems”—despite industry’s history of crying wolf.

Case in point: before Congress enacted the Acid Rain Program in 1990, electricity producers warned that it could “increase the cost, risk the reliability of electric service, [and] disrupt the long-range planning of utilities.”  Yet they quickly found solutions that reduced pollution more than required, and at much lower cost than expected — taking advantage of the program’s flexible trading system to maximize the results of conventional pollution controls.

With the Clean Power Plan, states would not only be able to implement market-based mechanisms, but also to deploy cost-effective solutions like energy efficiency, renewable energy, and shifts in utilization to lower-emitting plants.

Yet electricity producers are at it again.

American Electric Power (AEP) CEO Nick Akins recently said that a shortage of natural gas and above-average levels of coal generation during this winter’s polar vortex should raise a “red flag” about limits on carbon pollution from power plants. (See SNL Energy, April 7, 2014)  But this is in fact a red herring.

Here are some key facts about the 2014 cold weather event referred to as the polar vortex:

  • In the PJM Interconnection, unexpected outages at coal-fired power plants with operational problems were more to blame for the scarcity of power than outages of gas plants or a shortage of natural gas.
  • Renewable energy and energy efficiency are key resources during periods of high demand. ISO New England said that renewable energy was an “important part of our energy mix” during the polar vortex, and that distributed generation resources “performed well and were a valuable part of maintaining reliability during the winter season.”

And new studies demonstrate that incorporating renewable energy and energy efficiency into the electric system to reduce carbon pollution is consistent with maintaining reliability.

For example, PJM’s Renewable Integration Study found that the system can accommodate up to 30 percent wind and solar generation without significant issues.

The real threat to reliability is inaction. The Third National Climate Assessment predicts significant impacts on energy supply and use if we do not curb carbon emissions. Year-round net electricity use will increase due to burgeoning peak loads in the summer, water scarcity will hamper various kinds of generation, and sea level rise and extreme storm surge events will inundate coastal power plants and energy infrastructure.

The choice is clear.

EPA’s Clean Power Plan will protect public health and reduce dangerous carbon emissions. Through the Carbon Pollution Standards for new and existing power plants, we can achieve significant reductions in climate-destabilizing emissions while sustaining access to affordable, dependable electricity.

Also posted in Energy| 1 Response, comments now closed

America's coal-producing states weigh their options

A coal train rolls through a town in West Virginia, which produces more coal than any other state except for Wyoming.

Nobody was surprised to hear political foes of President Obama and leaders from several coal-dependent states blast EPA’s proposal to limit carbon pollution from America’s power plants.

The Clean Power Plan, released June 2, represents a big change in the way America will generate and use energy in the coming decades. We understand: Big changes are scary.

So it’s interesting to ponder which political leaders in states dependent on coal-fired power will, in the end, seize this historic opportunity.

Who will use the flexible policy tools offered in the Clean Power Plan to diversify their energy economies and unleash innovation to help their states grow? Who will show political courage?

Clean(-er) power for Texas

Just imagine if a state like Texas, my home state, used the plan to fully leverage its robust natural gas, wind and solar resources. It would be a game changer.

Texas power plants, and the state as a whole, continue to lead the nation in carbon dioxide emissions.

Texas also leads the nation in producing more than 12,000 megawatts (MW) of wind energy. That’s impressive.

According to data from the National Renewable Energy Laboratory, however, this represents less than 1 percent of Texas' onshore wind potential.

What’s more, Texas is at the top in solar potential, yet solar energy in Texas lags far behind wind at 213 MW of installed capacity. This spells tremendous opportunity.

So does Texas’ natural gas industry, which may be the biggest winner under EPA’s plan. The American Natural Gas Association predicts the new emission standards will increase natural gas demand by 45 percent – much of which will be produced by Texas with little impact to electricity prices.

In fact, the flexibility of EPA’s proposed plan offers Texas and other states dozens of ways to comply while improving public health and the state economy.

West Virginia: Rich in energy

Take West Virginia, where king coal has reigned for decades. It's among several coal-producing states that got a break by the Clean Power Plan.

West Virginia only needs to cut emissions from power plants by 20 percent by 2030, when the overall target for all 491 plants nationwide is 30 percent, and some states face cuts of 40 percent or more.

This has not kept West Virginia from threatening to sue the EPA over the rules, even as several of the state’s utilities said they’re already well on their way to meeting EPA’s rules.

But amid such noise there’s also optimism. The West Virginia University College of Law has already teamed up with a consulting firm to analyze EPA’s plan and to develop strategies some West Virginians hope will help the state transition to a cleaner future.

“West Virginia has an abundance of energy resources – including coal, natural gas, biomass, wind, solar and energy efficiency,” noted James Van Nostrand, director of the university’s Center for Energy and Sustainable Development.

Finding the right mix, he said, will be the main challenge.

Meanwhile, other states enjoy a head start thanks to politically courageous decisions taken years ago. Colorado, a purple state and the seventh largest coal-producer in the country, is one such state.

Colorado blasts ahead

Voters in the Rocky Mountain State approved a renewable energy standard a decade ago and in 2010, the legislature adopted the “Clean Air, Clean Jobs Act.” It requires utility companies to get 20 percent of their energy from cleaner sources by 2020, speeding up the retirement of aging coal-fired plants.

Then in late 2013, Colorado became the first state in the nation to propose new methane limits for its oil and gas operations.

By reining in this highly potent greenhouse gas, and thanks to the steps it took over the past decade, Colorado may already be ahead of the curve when it comes to meeting EPA’s proposed standards.

And what does all this energy progress cost? According to one Colorado utility, Xcel Energy, the Clean Air, Clean Jobs Act will cost the company $1 billion, with an annual rate impact of only about 2 percent over the next decade.

Yet the benefits to Coloradans are significant: $590 million in averted health costs and 1,500 construction jobs.

My guess is that not even in states such as Texas or West Virginia will they be able to deny for long the billions in cost-savings, millions in health benefits, and hundreds of new jobs that the Clean Power Plan promises.

Also posted in Energy, Greenhouse Gas Emissions, Policy| 2 Responses, comments now closed

EPA’s Authority to Limit Carbon Pollution from Power Plants Is Well Established and Widely Recognized

Gavel_iStock000003633182Medium(This post was written by EDF attorney Megan Ceronsky and legal fellow Peter Heisler)

The bedrock legal authority underlying the U.S. Environmental Protection Agency’s (EPA) Clean Power Plan is broadly recognized — by our nation’s highest court, states, power companies, academic experts and the EPA General Counsel serving during the President George H.W. Bush administration.

Our recent Climate 411 post chronicles the Supreme Court’s decisions affirming EPA’s authority to address carbon pollution from power plants under section 111 of the Clean Air Act.

In Massachusetts v. EPA (2007), the Court held that carbon dioxide is a pollutant under the Clean Air Act.  Then, in AEP v. Connecticut (2011), the Court explicitly recognized EPA’s authority to limit emissions of carbon dioxide from power plants pursuant to section 111, and acknowledged the agency’s ongoing efforts to do so.

Even before AEP was decided, however, legal researchers and academics had identified section 111 as a promising avenue for regulating carbon pollution from power plants and industrial facilities:

  • A 2009 report by the Congressional Research Service found that “Section 111 appears to provide a strong basis for EPA to establish a traditional regulatory approach to controlling greenhouse gas emissions from large stationary sources.”
  • A 2010 paper by Duke University’s Nicholas Institute for Environmental Policy Solutions observed that “[S]ection 111 appears to provide the EPA with the best means to create a system that … implements a cost-effective program that delivers meaningful emissions reductions, is consistent with both the statutory language of the Act and legal precedent, and is politically viable.”
  • A 2011 survey of the academic community found “widespread agreement” that “[section] 111 authorizes the use of many types of flexible approaches” to regulating carbon pollution.

Indeed, states, power companies, and other stakeholders have all recently analyzed and supported EPA’s authority to limit carbon pollution from power plants:

  • Kentucky recognized EPA’s role in setting the benchmark that states will have to meet under section 111.
  • Pennsylvania said that section 111 was the “most appropriate” provision for regulating carbon dioxide emissions from power plants.
  • The nine Northeastern and Mid-Atlantic states participating in the Regional Greenhouse Gas Initiative “recommend[ed] that EPA use its authority under section 111 of the Clean Air Act to ensure significant overall reductions in carbon emissions."
  • Fifteen states from across the country agreed that “EPA needs to seize [the] opportunity [for pollution reduction] because Section 111(d) standards are to be based on the ‘best system of emission reduction,’” including energy efficiency and renewable energy.
  • The Clean Energy Group, whose members include some of the largest generators of electricity in the country, noted that “EPA has significant discretion under section 111(d) in determining both the appropriate level of the standards for existing power plants, as well as the form of the regulations.”

Environmental law experts have also analyzed and endorsed EPA’s authority to regulate carbon pollution from power plants:

  • UCLA Law Professor Ann Carlson said “[I]t is important to be clear here: the President is required to issue the rules, required by law and by the interpretation of the law by the highest Court in the land.”
  • Harvard Professor Jody Freeman called critics’ claims to the contrary “weak,” explaining that “[t]he record clearly shows that Congress intended to ensure that harmful pollutants from existing power plants could not entirely escape regulation. These emissions qualify for regulation under 111(d) because they are not covered elsewhere in the law and account for nearly 40 percent of the nation’s total emissions of carbon dioxide, the principal driver of global warming.”
  • E. Donald Elliott, EPA General Counsel under President George H.W. Bush, noted that “the Supreme Court and other courts have upheld EPA’s authority to address this issue,” and “[a] system-wide approach provides needed flexibility and reduces costs, as well as encouraging investment in lower-emitting generation. EPA has wisely left the states a lot of discretion rather than mandating specific measures as some had wanted…”
  • Carol Browner, EPA Administrator during the Clinton administration, wrote that “EPA has authority under the 1990 Clean Air Act, an authority affirmed by the U.S. Supreme Court, to set these public health protections against carbon pollution.”

Finally, Leon G. Billings, who was the principal staff author of the Clean Air Act of 1970, shared his personal knowledge of the statute:

Critics of the move say that President Obama is making an end run around Congress, stretching the law to achieve by executive action what he could not accomplish through the legislative branch … This is flat wrong. More than four decades ago, Congress expressed its clear desire to regulate pollution from power plants, in the form of the Clean Air Act. I know, because I worked on the legislation, including the key part of the act — Section 111 — that the Obama administration is using to justify its move.

The legal community broadly recognizes EPA’s authority and obligation to address carbon pollution emitted by power plants. This is perhaps unsurprising, as all these statements simply echo what the Supreme Court has already held — that EPA’s efforts to reduce carbon pollution from power plants are firmly grounded in the law.

Also posted in Clean Air Act, EPA litgation| 3 Responses, comments now closed
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