Category Archives: Energy

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 Clean Power Plan, Economics| 1 Response

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, Clean Power Plan| 1 Response, 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, Clean Power Plan, Health, Jobs, Policy| 1 Response, comments now 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 Clean Power Plan, 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 Clean Power Plan| 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 Clean Power Plan, Greenhouse Gas Emissions, Policy| 2 Responses, comments now closed

The cheapest way to cut climate pollution? Energy efficiency

This blog post was co-authored by Lauren Navarro, California Senior Manager, Clean Energy and Kate Zerrenner, an EDF project manager and expert on energy efficiency and climate change.

On June 2, the U.S. Environmental Protection Agency made a historic announcement that will change how we make, move and use electricity for generations to come.

For the first time in history, the government proposed limits on the amount of carbon pollution American fossil-fueled power plants are allowed to spew into the atmosphere.

There are two clear winners to comply with the plan while maintaining commitment to electric reliability and affordability: energy efficiency and demand response.

We’re already seeing pushback from some of our nation’s big polluter states, such as West Virginia and Texas. But the truth is that while the proposed limits on carbon are strong, they’re also flexible.

In fact, the EPA has laid out a whole menu of options in its Clean Power Plan – from power plant upgrades, to switching from coal to natural gas and adopting more renewable energy resources. States can choose from these and other strategies as they develop their own plans to meet the new standards.

That said, there are two clear winners on the EPA’s menu that offer low-cost options for states that seek to comply with the plan while maintaining their commitment to electric reliability and affordability: energy efficiency and demand response.

Energy efficiency our lowest-hanging fruit

Simply saving energy is the most cost-effective way to reduce demand and carbon pollution from power plants. The cheapest, cleanest and most reliable electricity, after all, is the electricity we don’t use.

The benefits of energy efficiency are vast. It helps people and businesses save money, it boosts job creation (as many as 274,000, one source estimates), and it reduces harmful power plant pollution.

From a utility perspective, energy efficiency improves the reliability of our electric grid and lowers costs for infrastructure maintenance.

Plus, in states such as Texas and California, which face extreme drought, energy efficiency can save scarce water sources. Remember that coal-fired power plants are thirstyand less water is consumed when these plants are used less (or not at all).

Half of the states already have mandatory energy-efficiency targets, so we have the knowledge and experience across the country to advance this undeniably beneficial resource.

Same as taking all cars off road

McKinsey & Co. estimates that by 2020, the United States could reduce its annual energy consumption by 23 percent by adopting energy-efficiency measures. This could save us more than $1 trillion dollars and cut greenhouse gas emissions by more than a gigaton—the equivalent of taking the entire U.S. fleet of passenger vehicles and light trucks off the road.

That’s why Environmental Defense Fund is working with policymakers, investors and utilities throughout the country to understand the full benefits of energy efficiency, and to explore paths for implementation, for when they’re crafting state plans under EPA’s new Clean Power Plan.

Demand response: everyone wins

Demand response is another way to introduce greater efficiency into the nation's electricity system and help reduce carbon emissions. It’s an invaluable tool that can help conserve electricity when supplies run thin, and to bring more clean energy onto the grid.

On a hot summer day, for example, when electricity demand is high, utilities can ask permission of select customers to lower their thermostats a couple of degrees. In exchange, these customers receive credit on their next electricity bill.

It also helps utility companies better manage stress on the electric grid and it can help them integrate wind, solar and other renewables to replace aging coal-fired power plants.

Demand response relies on people, not power plants, to meet energy demand and reduce carbon pollution from our electricity sector.

Proven strategies

In Southern California, for example, they’re about to replace a large chunk of electric capacity – at least 550 megawatts – from the recently closed San Onofre Nuclear Generation Station with renewable energy, energy storage – and demand response. This will help minimize a need for gas-fired plants and other polluting facilities that might replace the nuclear plant.

Best of all, demand response is more affordable than building new power plants. In fact, if just 50 percent of Southern California Edison’s customers participated in time-of-use rates – a type of demand response program – energy demand would plummet so much that 66 percent of San Onofre’s former generating capacity would no longer be needed.

As a bonus, customers across the territory would also collectively see cost savings of $357 million, a 15-percent decrease.

As a result of smart decisions such as the one involving the San Onofre plant, California’s utility sector’s greenhouse gas emissions have and will continue to decline. This proves that demand response can and should be a core tenet in the nation’s push to diversify its energy mix and cut pollution in order to usher in a clean, sustainable and healthy future.

As EPA Administrator Gina McCarthy noted last week, these clean energy solutions are not new ideas. They’re based on proven technologies and approaches that "are already part of the ongoing story of energy progress in America."

"We're not doing cutting-edge work here, folks," she said. "We are just opening the door to cutting-edge.”

This post first appeared on EDF Voices

Also posted in Clean Power Plan, Greenhouse Gas Emissions, Policy| 3 Responses, comments now closed

A First Look at the Clean Power Plan: Protecting Public Health and Cutting Carbon Pollution

Source: Flickr/ Rupert Ganzer

Source: Flickr/Rupert Ganzer

Earlier this week, our nation took a ground-breaking step by proposing to finally establish carbon pollution limits on existing power plants — the single largest source of climate-destabilizing pollution in the U.S. and one of the largest in the world.

We have national limits on the other air pollutants emitted by these plants, including mercury and arsenic and smog-forming pollutants — and we urgently need to secure strong limits on carbon pollution.

Here’s a first look at the proposed Clean Power Plan and its “building blocks” — the opportunity for state leadership, the profound public health benefits for our communities and families, and the good news about cost savings for customers.

The Proposed Pollution Reductions

The Clean Power Plan would reduce carbon pollution from existing fossil fuel-fired power plants by approximately 30 percent by 2030, and could curb emissions by as much as 27 percent by 2020.

EPA looked at the existing power plants in each state, and evaluated four time-tested, cost-effective emission reduction pathways:

  1. The potential to improve power plant efficiency
  2. The potential to rely more on lower-emitting power plants such as combined cycle natural gas and less on higher-emitting power plants
  3. The potential to deploy zero emitting generation resources like wind and solar
  4. The potential to capture end-use energy efficiency opportunities.

EPA then added up these four “building blocks” to calculate the reduction that a State could achieve on average in its overall emission rate over 2020-2029 (the “interim” target), and what rate could be achieved in 2030:

 

State

2012 Emission Rate
(Fossil, Renewable, and 6% Nuclear) (lbs/MWh)

2020-2029 Interim Goal (lbs/MWh)

2030 State Goal (lbs/MWh)

Percent change from 2012 rate

Alabama

1,444

1,147

1,059

-27%

Alaska

1,351

1,097

1,003

-26%

Arizona

1,453

735

702

-52%

Arkansas

1,640

968

910

-45%

California

698

556

537

-23%

Colorado

1,714

1,159

1,108

-35%

Connecticut

765

597

540

-29%

Delaware

1,234

913

841

-32%

Florida

1,200

794

740

-38%

Georgia

1,500

891

834

-44%

Hawaii

1,540

1,378

1,306

-15%

Idaho

339

244

228

-33%

Illinois

1,895

1,366

1,271

-33%

Indiana

1,923

1,607

1,531

-20%

Iowa

1,552

1,341

1,301

-16%

Kansas

1,940

1,578

1,499

-23%

Kentucky

2,158

1,844

1,763

-18%

Louisiana

1,466

948

883

-40%

Maine

437

393

378

-14%

Maryland

1,870

1,347

1,187

-37%

Massachusetts

925

655

576

-38%

Michigan

1,696

1,227

1,161

-32%

Minnesota

1,470

911

873

-41%

Mississippi

1,130

732

692

-39%

Missouri

1,963

1,621

1,544

-21%

Montana

2,245

1,882

1,771

-21%

Nebraska

2,009

1,596

1,479

-26%

Nevada

988

697

647

-34%

New Hampshire

905

546

486

-46%

New Jersey

932

647

531

-43%

New Mexico

1,586

1,107

1,048

-34%

New York

983

635

549

-44%

North Carolina

1,646

1,077

992

-40%

North Dakota

1,994

1,817

1,783

-11%

Ohio

1,850

1,452

1,338

-28%

Oklahoma

1,387

931

895

-35%

Oregon

717

407

372

-48%

Pennsylvania

1,540

1,179

1,052

-32%

Rhode Island

907

822

782

-14%

South Carolina

1,587

840

772

-51%

South Dakota

1,135

800

741

-35%

Tennessee

1,903

1,254

1,163

-39%

Texas

1,298

853

791

-39%

Utah

1,813

1,378

1,322

-27%

Virginia

1,297

884

810

-38%

Washington

763

264

215

-72%

West Virginia

2,019

1,748

1,620

-20%

Wisconsin

1,827

1,281

1,203

-34%

Wyoming

2,115

1,808

1,714

-19%

State Flexibility & Innovation

Under the Clean Power Plan, states will control their own future.

States have the flexibility to deploy the emission reduction policies and pathways that make the most sense for them, maximizing cost-effectiveness and co-benefits for their citizens, so long as they achieved the required emission reductions.

Some states might choose to build their compliance plans around existing Renewable Energy Standards and energy efficiency programs. Others might choose to put in place an emission reduction trading program between power plants. Still others might choose to collaborate with other states to submit joint plans and capture the cost-effective emission reduction opportunities available across state boundaries.

Public Health Benefits

The public health benefits of the Clean Power Plan are extensive and will help ensure healthier and longer for our loved ones who suffer from heart and lung ailments, and for our children.

EPA’s analysis shows that the reductions in carbon pollution and the associated reductions in sulfur dioxide, oxides of nitrogen, and particulate matter that will happen as a result will generate health benefits of $55 to $93 billion per year in 2030.

The pollutants that contribute to the soot and smog that make people sick will be reduced by more than 25 percent in 2030 — avoiding 2,700 to 6,600 premature deaths and 140,000 to 150,000 asthma attacks per year.

From the soot and smog reductions alone — ignoring the important reductions in carbon pollution achieved — Americans will see 7 dollars in health benefits for every dollar invested through the Clean Power Plan.

Cleaner power will ensure healthier and longer lives for millions of Americans.

Electricity Rates & Reliability

EPA’s analysis also shows that there will be sufficient power generation capacity across the United States under this framework to meet demand.

The flexibility provided to States will allow them to design plans to secure reductions in carbon pollution without any risk to power reliability.  As has been true for the past 40 years, we will reduce air pollution and maintain reliable power.

Because the Clean Power Plan will spur investments in demand-side energy efficiency, in 2030 electricity bills are expected to be 8 percent lower than they would have been without the plan.

Under the Clean Power Plan we will have cleaner, safer power, lower electricity bills, cleaner air, and healthier lives.

Cleaner power for a stronger America.

Also posted in Clean Air Act, Clean Power Plan, Greenhouse Gas Emissions| 2 Responses, comments now closed

Power plant rule a tipping point for clean energy economy

By Cheryl Roberto, Associate Vice President, Clean Energy Program

For those of us (and all of you) who’ve been urging the government to implement meaningful climate policy, the release yesterday of a plan to cut carbon emissions from power plants has been a long time coming. But it finally came.

The U.S. Environmental Protection Agency’s proposed carbon pollution rule for existing fossil-fueled power plants – also known as the Clean Power Plan – are a huge win for our climate.

We also think it could go down in history as the tipping point in our nation’s transition to a clean energy economy. Here’s why:

Old, dirty power plants will be retired

The nation’s fleet of coal-fired power plants is the single largest source of carbon pollution in the U.S. and one of the largest in the world. Placing carbon regulations on this source of electricity for the first time in history will transform our energy system.

Utilities have acknowledged that it doesn’t make economic sense to pour money into retrofitting and retaining older, less-reliable coal-fired power plants when they need to focus investments on newer and more reliable plants.

This means that many of the most highly-polluting coal-fired power plants that provide electricity to our homes and businesses today will be retired. It presents a unique opportunity for clean energy solutions to fill the gap in generating capacity.

It may be one of the largest market opportunities in history to drive…clean energy on a national level.

Increasing our use of homegrown, renewable power sources and investing in proven tools such as energy efficiency, smart grids and demand response (which compensates electricity customers for conserving energy) will help fill this gap while reducing our reliance on fossil fuels that pollute the environment and contribute to climate change.

States will lead the way

EPA’s approach provides clear guidance for what limits and metrics must be met, but leaves states the flexibility to design solutions to meet those requirements as they see fit. This will encourage all states (even those which do not embrace the climate challenge) to look at clean energy technology as an attractive option when they seek to comply with the law.

Federal limits on carbon pollution from existing power plants are exactly the clarity states need to lead us to clean, reliable and affordable energy for all Americans – now and in the future.

Entrepreneurs, investors ready to jump in

What’s more, the new EPA plan – once it's final – will give entrepreneurs, corporations and venture capitalists the market signal they need to go full steam ahead with low-carbon innovations. It may be one of the largest market opportunities in history to drive the development and implementation of clean energy on a national level.

At Environmental Defense Fund, we’re right in the middle of many of these promising solutions, working with state legislators and regulators to clear outdated rules that mire us in the past and discourages innovators.

Paving the way for a cleaner, healthier future

We’re working with financial institutions to develop new funding opportunities for clean energy investments that will help raise the estimated $10.5 trillion needed over the next two decades to transition our world to a clean energy economy.

We’re working with energy research pioneer Pecan Street Inc.in Austin, TX to test customer energy management solutions such as rooftop solar, home energy storage, learning thermostats and time-of-use energy pricing (which incentivizes people to use electricity during periods of low, or “off-peak” energy demand).

And we’re pushing to make energy efficiency a cornerstone of America’s energy policy.

It may not be as sexy as fuel cells and solar panels, butbuilding a more efficient energy system — from power plants to transmission lines to homes and buildings — is the most affordable and cleanest path forward.

The United States is expected to spend about $2 trillion over the next two decades to replace our outdated electric infrastructure. These new regulations are a step in the right direction toward ensuring that these investments are spent on our future and not entrenching us in our past.

EPA's proposed rule means good jobs, economic development and a healthier planet.

And as a pioneer at the forefront of this movement, EDF is determined to make sure we stay on track.

This blog first appeared on EDF Voices

Also posted in Clean Air Act, Clean Power Plan, Green Jobs, Greenhouse Gas Emissions| 1 Response, comments now closed

EPA Hands Over the Keys with Clean Power Plan, California Already on Cruise Control

EPA’s Clean Power Plan, proposed today, is a roadmap for cutting dangerous pollution from power plants, and as with any map, there are many roads to follow. For this journey, states are in the driver’s seat and can steer themselves in the direction most beneficial to their people and to the state’s economy, as long as they show EPA they are staying on the map and ultimately reaching the final destination.

As usual, California got off to a head start, explored the territory, blazed a lot of new trails, and left a number of clues on how states can transition to a lower carbon future, and California’s successes are one proven, potential model for other states to follow. The state’s legacy of clean energy and energy efficiency progress is a big reason the White House and EPA could roll out the most significant national climate change action in U.S. history.

Way back in the mid-1970s, when Governor Jerry Brown did his first tour of duty, California pioneered what remains one of the most effective tools for cutting pollution and saving money:  energy efficiency. The state’s efficiency standards, largely aimed at buildings and appliances, have saved Californians $74 billion and avoided the construction of more than 30 power plants. All those energy savings have translated into California residential electricity bills that are 25% lower than the national average.  What’s more, California produces twice as much economic output per kilowatt hour of electricity usage as the national average.

While energy efficiency has done yeoman’s work pulling costs down, reducing the need for dirty energy, and supercharging the state’s clean energy economy, California has also brought bold approaches to cleaning up its power supply. The California Renewable Portfolio Standard (RPS) requires 33% of all electricity sold in California to come from renewable sources by 2020, the most aggressive of the 29 states with RPS measures on the books.

In 2006, California enacted Senate Bill 1368, a groundbreaking law that set the nation’s first greenhouse gas emissions standard for power plants, a forerunner of EPA’s Clean Power Plan announced today. The same year, the Global Warming Solutions Act (AB 32) instituted a statewide limit on greenhouse gas emissions, requiring California to return to 1990 levels by 2020. Power plants are capped under AB 32’s successful cap-and-trade program, another precedent that set the table for EPA’s Clean Power Plan, which establishes a national limit on power plant pollution for the first time. This robust suite of policies resulted in California cutting carbon pollution from in-state and imported electricity by 16% between 2005 and 2010-2012.

Given this track record, it’s no surprise that Californians strongly support pollution limits on power plants. According to the Public Policy Institute of California (PPIC) 2013 survey, 76% of Californians support “stricter emissions limits on power plants,” and 65% of survey respondents say that California should act immediately to cut emissions and not wait for the economy to improve, a record-high level of support. The survey also shows that Californians believe the economy will improve because of strong environmental regulations, and that you don’t have to have one or the other. Data corroborating this view continues to pile up:  the state now has its lowest unemployment rate since 2008 even with increasingly stringent environmental policies.

California is proof positive that states can fashion creative policies that improve their environmental and economic bottom line, and that’s exactly what will be needed to make EPA’s Clean Power Plan a durable and resounding success. California’s roadmap includes a variety of alternative routes, giving other states a chance to adopt or adapt them to meet the needs of their own unique journeys toward a healthier future.

This post first appeared on our California Dream 2.0 blog.

Also posted in Cars and Pollution, Clean Air Act, Clean Power Plan, Greenhouse Gas Emissions, News, Policy| 1 Response, comments now closed
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