Selected category: Energy

2016 Wrap-Up: States, Power Companies Lead in Cutting Carbon; Election Not Slowing Expected 2017 Progress

(This post was co-authored by EDF Associate Charlie Jiang. It was revised on January 6, 2017)

The new Block Island Wind Farm in Rhode Island -- one of many examples of clean energy progress in 2016. Photo courtesy Deepwater Wind

The new Block Island Wind Farm in Rhode Island — one of many examples of clean energy progress in 2016. Photo courtesy Deepwater Wind

2016 was a big year for progress in the U.S. power sector. Renewable energy sources provided 16.9 percent of the country’s electricity in the first half of 2016, up from 13.7 percent for all of 2015. The country’s first offshore wind farm opened off the coast of Rhode Island. Most importantly, carbon emissions from the power sector are projected to continue to decline and hit levels not seen since 1992.

Strong leadership by forward-thinking governors, policymakers, and power company executives who recognize the imperative of lower-carbon generation and the promise of clean energy, powerful market forces intensifying the push to lower-carbon resources, and the critical federal regulatory overlay of the Clean Power Plan — which has made clear that unlimited carbon pollution is a thing of the past — have all combined to deepen a trend towards cleaner electricity production at this dynamic moment in time.

Even with any possible political maneuverings in Washington, D.C. to reverse clean energy and climate progress, it is clear that the transition to a low-carbon future is well under way.

States and power companies are surging ahead — and given the favorable economics of clean energy and the urgent need to reduce climate-destabilizing pollution it would be foolish to turn back.

  • More than 21 gigawatts of wind and solar power (utility-scale and rooftop) are projected to have been installed in 2016, accounting for 68 percent of new U.S. capacity additions. That’s according to analyses by FERCSNL EnergyEIA, and SEIA/GTM Research.
  • Some of the country’s oldest and least efficient power plants were scheduled to close in 2016, transitioning 5.3 gigawatts of capacity, in no small part due to increasingly favorable economics for low-carbon generation.
  • Since 2014, solar installation has created more jobs than oil and gas pipeline construction and crude petroleum and natural gas extraction combined. According to recent reports, there are now more than 400,000 jobs in renewable energy.

Together, these trends indicate the U.S. power sector is well-positioned to continue to reduce carbon pollution at a significant pace. And because of the favorable economics for low-carbon generation and the urgent need to protect against climate risks, hundreds of major corporations are on record supporting the Clean Power Plan and the achievement of emission reduction targets.

Power sector carbon emissions declined to 21 percent below 2005 levels in 2015, and are expected to drop again in 2016, meaning the power sector is already two-thirds of the way towards meeting its 2030 pollution reduction goals under the Clean Power Plan.

Notably, this de-carbonization of the electric sector has proceeded while the U.S economy has grown. In addition, recent analysis by the Brookings Institution shows that as of 2014, at least 33 individual states have also decoupled their economic growth from carbon pollution — continuing to grow their gross domestic product while significantly slowing their rate of greenhouse gas emissions.

Heading into 2017, companies from coast to coast are well-positioned to secure ongoing reductions in carbon emissions from their fleets – thereby helping the United States to achieve international commitments under the Paris Agreement, delivering greater value to customers and shareholders while ensuring state or municipal policy objectives will be achieved, and sharpening their ability to meet declining emissions limits in accordance with a federal regulatory framework.

Even the vast majority of states litigating against the Clean Power Plan can comply with the CPP targets by optimizing the carbon pollution benefits from already planned investments and compliance with existing state policies. The Clean Power Plan is crucial to making certain that states and companies take advantage of the opportunity to ensure the carbon reduction potential of these investments are fully realized, so they can in fact achieve these reasonable protections.

The shift to a lower-carbon future should continue, as power companies recognize both the imperative to reduce emissions and the benefits of moving in this direction despite changing political winds in Washington.

For example, shortly after the November election, a number of executives from historically coal-intensive companies convincingly reaffirmed their commitment to de-carbonization:

  • No matter who occupies the White House, “[coal is] not coming back,” said American Electric Power CEO Nick Akins. “We’re moving to a cleaner-energy economy and we’re still getting pressure from investors to reduce carbon emissions. I don’t see that changing.”
  • “It can't just be, ‘We're going to get rid of these regulations, and you guys can party until the next administration comes,’” Cloud Peak Energy Vice President Richard Reavey said. “There are serious global concerns about climate emissions. We have to recognize that's a political reality and work within that framework.”
  • “Markets are driving a lot of the behavior,” said Tom Williams, a spokesman for Duke Energy. “[W]e’ll continue to move toward a lower carbon energy mix.”
  • “We've always had a point of view at Southern that there's a reasonable trajectory in which to move the portfolio of the United States to a lower carbon future,” said Southern Company CEO Tom Fanning. “There's a way to transition the fleet now.” In a later interview, Fanning added: “It's clear that the courts have given the EPA the right to deal with carbon in a certain way.”
  • “Regardless of the outcome of the election,” said Frank PragerXcel Energy’s Vice President of Policy and Federal Affairs, “Xcel Energy will continue pursuing energy and environmental strategies that appeal to policymakers across the political spectrum because we are focused on renewable and other infrastructure projects that will reduce carbon dioxide emissions without increasing prices or sacrificing reliability.”

Acting on these commitments, many power companies are continuing to expand their renewable investments while phasing out high-carbon generation, putting them in a solid position to comply with robust carbon pollution regulations.

Here are a few recent highlights just from the last months:

  • At the end of December, Florida Power & Light (FPL) showed strong leadership when announcing plans to shut down the recently-acquired 250-megawatt Cedar Bay coal plant at the end of the year. “I'm very proud of our employees for proposing this innovative approach that's environmentally beneficial and saves customers millions of dollars,” said CEO Eric Silagy. FPL plans to replace the retired power with natural gas and solar — the company added 224 megawatts of solar capacity in 2016. FPL also noted that their system is now “cleaner today than the 2030 carbon emissions rate goal for Florida outlined by the Clean Power Plan,” while average residential bills are about 30 percent lower than the national average.
  • On December 30, Southern Company announced an agreement with Renewable Energy Systems America to develop 3,000 megawatts of renewable energy scheduled to come online between 2018 and 2020. The agreement comes as Southern Company continued to boost its renewable portfolio with the acquisition of 300 megawatts of wind power in late December, bringing its total to more than 4,000 megawatts of renewable generation added or announced since 2012.
  • Duke Energy acquired its first solar project in Colorado on December 8. The purchase advances Duke’s goal of owning more than 6,000 megawatts of renewable energy projects by 2020.

After the election, a number of power companies reiterated their commitment to reducing air pollution and meeting their obligations under the federal Clean Air Act by transitioning aging coal plants.

  • PNM Resources spokesman Pahl Shipley said the company has no change in plans for retiring two units at a New Mexico plant, totaling 837 megawatts of capacity, in 2017. PNM will replace the retired capacity with solar and nuclear power.
  • The Tennessee Valley Authority is moving forward with plans to retire two coal plants in 2017, as well as a third in 2018.
  • Colorado-based electric cooperative Tri-State Generation will move forward with plans to retire its 100-megawatt Nucla coal plant and Unit 1 of the Craig coal plant. “We are moving forward with retirement activities and developing a transition plan for the employees and communities,” said Tri-State spokesman Lee Boughey after the election.

These announcements follow one of the biggest clean energy leadership stories of 2016 – commitments by two midcontinent utilities, Xcel Energy and Berkshire Hathaway Energy, to go big on cost-effective investments in new wind resources.

  • This past year, Minnesota regulators approved a plan for Xcel Energy to construct as much as 1,800 megawatts of new wind power and 1,400 megawatts of solar in the state by 2030. Xcel also received approval to build a 600 megawatt wind farm in Colorado.
  • Berkshire subsidiary MidAmerican Energy secured approval to construct a massive 2,000 megawatt wind farm in Iowa that will be the “largest wind energy project in US history.” Said CEO Bill Fehrman: “Our customers want more renewable energy, and we couldn’t agree more.”

State policymakers have not stayed on the sidelines, either. 2016 sustained progress as states moved forward with commonsense efforts to reduce emissions of harmful air pollutants. And even with promises to roll back critical clean air, climate, and clean energy progress coming out of Washington, D.C., states made clear after the election that they will not be slowed down by potential federal backsliding:

  • On December 7, Illinois enacted a comprehensive new energy bill that will in part double the state’s energy efficiency portfolio and allow for 4,300 megawatts of new solar and wind power while providing for continued operation of zero-emission nuclear facilities. These measures are expected to reduce the state’s carbon emissions 56 percent by 2030.
  • On December 15, Michigan lawmakers approved a new bill to increase the state’s renewable portfolio standard to 15 percent by 2021, up from 10 percent. Republican Governor Rick Snyder touted the bill in a statement: “What we’re in is a huge transition in how we get our energy. We’ve got a lot of aging coal plants that are beyond their useful life, and it’s not worth investing in them anymore … We can transition to both natural gas and renewables and let the markets sort of define the balance between those two, so we’re moving away from an old energy source [where] we had to import all of this coal.”
  • Also in December, Washington Governor Jay Inslee proposed the state adopt a first-of-its-kind carbon tax of $25 per metric ton of carbon pollution. The proposal supplements the state’s innovative Clean Air Rule, adopted in September, which caps carbon emissions from individual polluters.
  • Nine states comprising the Regional Greenhouse Gas Initiative are engaged in a stakeholder process designed to establish new, more protective, standards for climate pollution.
  • In Oregon, regulators are evaluating options for a market-based mechanism that could link to the California-Quebec carbon market, releasing a partial draft report on November 21.
  • Governors such as Colorado’s John Hickenlooper continue to display strong leadership and a keen understanding of the imperative to move to a low-carbon future. After the election, Hickenlooper said he remains committed to fulfilling the goals of the Clean Power Plan, no matter what happens to the rule.
  • In Pennsylvania, a spokesman for Governor Tom Wolf’s Department of Environmental Protection (DEP) noted that: “Pennsylvania’s carbon footprint has been shrinking rapidly due to market based decisions being made in the state’s electric generating sector … It is likely that this trend will continue.” He added that the DEP “will continue to seek ways to continue addressing climate change.”
  • In California, Governor Jerry Brown mounted a vigorous defense of California’s climate leadership and the role the state will continue to play in setting the stage for ongoing progress and defending the important progress of the last eight years. “We’ve got the scientists, we’ve got the lawyers and we’re ready to fight. We’re ready to defend,” he said.

The momentum that power companies and states have generated towards achieving a clean energy future is powerful and encouraging.

Looking to 2017 and beyond, market trends are expected to continue to help facilitate de-carbonization of the electric sector, while federal and state policies must continue to provide certainty about the pace and depth of emissions reductions needed to address the threat of climate change. These policies will help companies plan clean energy investments in a way that maximizes benefits for consumers and facilitates optimal deployment of available resources.

The Clean Power Plan remains crucial to achieving these goals. Any disruption in the Clean Power Plan’s implementation could put long-overdue and readily achievable emission reductions at risk.

As we ring in the New Year, EDF will keep working with a diverse set of stakeholders across the country — including many state officials and power companies — to defend these critical environmental safeguards. At the same time, we will work vigorously to ensure that we achieve the reductions in carbon pollution envisioned by the program.

 

Also posted in Clean Air Act, Clean Power Plan, Economics, EPA litgation, Green Jobs, Greenhouse Gas Emissions, Jobs, Partners for Change, Policy| Comments are closed

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

8362494597_b5e016f63f_z-300x169By Jon Goldstein and Peter Zalzal

(This post originally appeared on EDF Energy Exchange)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Latino Voters Agree: Now is the time to reduce pollution and invest in clean energy

By Lucía Oliva Hennelly, EDF Campaign Manager, New Climate Partnerships & Andy Vargas, EDF Congressional Hispanic Caucus Institute (CHCI) Public Policy Fellow.

How important do you think it is that the next President and new Congress take steps to reduce smog and air pollution? What about actions to develop clean energy sources like wind and solar power?

These are a questions asked by Latino Decisions, a leading national polling firm, in a representative national poll of Latinos who voted in the 2016 elections. Latino Decisions research released this week shows that 75 percent of Latino voters believe it is extremely or very important that the next President and Congress take steps to reduce smog and air pollution. And 71 percent of Latino voters believe it is extremely or very important that the next President and Congress take steps to pass legislation to aggressively combat climate change. This was also found in key states including Arizona, Colorado,  North Carolina, and Nevada.

While the results should not be surprising, they are noteworthy in a month when President-elect Donald Trump has nominated an environmental antagonist to lead the Environmental Protection Agency and the CEO of ExxonMobil to lead the State Department.capture

These findings demonstrate that Latino communities care deeply about our environment, our changing climate, and how this impacts our families. The assumption that Latino voters only care about immigration reform — despite being disproportionately impacted by issues like air pollution and toxic exposure – needs to be discarded. Read More »

Also posted in Health, Jobs, Latino partnerships| Comments are closed

Defending BLM Standards that Reduce Waste, Protect Air Quality

us-doi-blm-logo-300x261EDF, along with a coalition of health and environmental groups, just filed a motion to intervene in defense of vital new standards that will prevent the wasteful loss of natural resources, save money for taxpayers and tribes, and reduce emissions of dangerous and climate-disrupting pollution.

The Bureau of Land Management’s (BLM) waste prevention standards will reduce venting, flaring, and leakage of natural gas on BLM-managed federal and tribal lands – but they are being challenged in U.S. Federal District Court in Wyoming by oil and gas industry groups and three states.

Federal and tribal lands are an important source of oil and gas production. Together, the amount they produce is the equivalent of five percent of the U.S. oil supply and 11 percent of the U.S. natural gas supply, and generates more than $2 billion annually in royalties.

Unfortunately, oil and gas companies that lease these federal and tribal lands lose substantial amounts of publicly-owned natural gas through unnecessary venting, flaring, or leaking at production sites.

A recent study from ICF International found that in 2013, drilling on federal and tribal lands —mostly in the rural West— leaked, vented, and flared natural gas worth about $330 million. An analysis from the Western Values Project estimates taxpayers could lose almost $800 million over the next decade if wasteful venting and flaring practices continue.

In addition to wasting a public resource, oil and gas companies’ unnecessary venting, flaring, and leakage on federal and tribal lands also poses significant public health and safety risks.

The wasted natural gas is primarily composed of methane – a powerful greenhouse gas, capable of warming the climate at a rate 84 times that of carbon dioxide over a 20-year period.

The leaked, vented, and flared natural gas also emits air pollutants including carcinogens such as benzene, and volatile organic compounds – which contribute to hazardous smog.

BLM’s recently finalized venting and flaring standards deploy common sense, cost-effective, and readily available technologies — already effectively in use in several states across the country — to capture this gas.

The standards yield significant benefits by minimizing the waste of a taxpayer-owned natural resource, and by curbing emissions that contribute to air pollution and climate change, all while helping to create new jobs in methane mitigation. They will save, and put to productive use, up to 56 billion cubic feet of gas a year — enough to supply up to 760,000 households – and will provide millions in additional revenues for taxpayers.

The standards will also cut methane emissions by up to 169,000 tons per year — the equivalent to carbon emissions from as many as 890,000 vehicles.

These benefits will accrue to millions of people across the country, including those living near oil and gas development on federal and tribal lands.

EDF member and New Mexico rancher Don Schreiber has more than 100 oil and gas wells on and near his ranch in the San Juan Basin that will now be covered by the BLM standards. In a declaration supporting EDF’s motion to intervene, he describes the impact of venting, flaring, and leaking from these wells on his family and, in particular, his grandchildren:

Most noticeable is the near-constant smell from leaking wells. …  These odors make breathing uncomfortable and often cause us to leave affected areas as quickly as possible. … We worry about [our grandchildren’s] exposure to air pollutants from oil and gas development on the property, and always are careful to keep them away from the wells and above ground pipeline equipment. Protecting our grandchildren from the negative health effects of oil and gas emissions is a constant concern when they come to visit us. (New Mexico rancher Don Schreiber, Declaration)

With the new standards, he anticipates a reduction in the “harmful air pollution near my home and in the state where my family and I live, work, and recreate.” (Declaration)

BLM’s efforts to reduce natural gas waste have broad and cross-cutting support from elected officials and community members across the West. In a recent bipartisan poll of Western states, 80 percent of respondents supported BLM standards to curtail waste of this valuable resource. And, over the course of several years during which the rule was under development, BLM solicited the feedback of community stakeholders, oil and gas developers, and local, tribal and state governments. The final rule is the result of a collaborative and deliberate process and includes changes that reflect this stakeholder input.

Standing in stark contrast to this careful process, industry associations rushed to file legal challenges seeking to overturn the waste prevention rule within 40 minutes after it was released — hardly enough time to read the rule, let alone meaningfully consider its contents.

And in a subsequent filing seeking to block these protections before they become effective, these industry associations put forward a number of flawed claims, not least of which was their suggestion that BLM acted unlawfully because its rule may “only” produce additional annual royalty revenues of $22.4 million — a sum the filing characterizes as “de minimis.”

While $22 million annually may be an insignificant amount for the oil and gas companies litigating to overturn this rule, it has real meaning for infrastructure projects, schools, and communities across the country that stand to benefit from this funding.

It’s unfortunate that some have engaged in reflexive efforts to roll back protections designed to prevent the waste of our nation’s public resources and, at the same time, protect our air quality and climate.

The good news is that BLM’s commonsense standards are firmly rooted in the agency’s manifest authority to minimize waste and to address the harmful health and environmental consequences of oil and gas development on federal lands.  We at EDF look forward to vigorously defending these standards in court.

Also posted in Economics, Greenhouse Gas Emissions, Health, Partners for Change, Policy| Comments are closed

Power Companies and States – On Track to Meet Clean Power Plan Goals

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(EDF Fellow Charlie Jiang co-authored this post)

Oral argument in litigation about the Clean Power Plan is rapidly approaching.

In two weeks – on Tuesday, September 27th — the U.S. Court of Appeals for the D.C. Circuit will hear argument en banc about the historic measure to limit climate pollution from American power plants. (Argument begins at 9:30 a.m. in Courtroom 20).

As you get ready for the argument, one important development to keep in mind is the rapid expansion of clean energy. A power sector transformation is happening now because low-carbon energy is tremendously cost-effective. Prudent investments in clean energy are helping to create cleaner air and shared prosperity — and they’re also further demonstrating that the Clean Power Plan targets are eminently achievable, and that the rule’s approach builds from existing trends and low carbon generation shifts that are already happening in the power sector.

The Clean Power Plan is a sensible framework to help protect us from the dangers of climate change. As these trends show, it is hardly the “reengineer[ing] of the grid” described by opponents. Many states and major power companies are on track to meet or exceed the Clean Power Plan’s targets — including those that are challenging the Clean Power Plan in court.

Here are a few examples of power companies that are shifting their generation towards low-cost clean energy:

  • Of American Electric Power’s (AEP) generating capacity, more than half (60 percent) comes from coal — but even AEP is reducing emissions by replacing coal with renewables and natural gas. AEP has already cut carbon dioxide emissions 39 percent from 2000 levels. The company plans to add 5,500 megawatts of wind, 3,000 megawatts of solar, and 3,000 megawatts of natural gas in the coming years. CEO Nick Akins last year noted that the Clean Power Plan could be a “catalyst for the transformation that’s already occurring in our industry.”
  • Iowa-based MidAmerican Energy has announced a goal to provide 100 percent renewable energy. MidAmerican’s just approved $3.6 billion project to add 2,000 megawatts of wind — called the “largest wind energy project in US history” — will expand wind energy to become 85 percent of the company’s sales. Said CEO Bill Fehrman, “Our customers want more renewable energy, and we couldn’t agree more.” Meanwhile, an executive of MidAmerican’s parent company, Berkshire Hathaway Energy, had this to say about the Supreme Court stay of the Clean Power Plan: “We wish that hadn’t happened… Rather than litigating, we are leading.”
  • Southern Company, a major generator of coal-fired power, is expanding renewable energy development that would count towards Clean Power Plan compliance. Southern Company and its subsidiaries have added or announced more than four gigawatts of renewable generation since 2012 to its 44 gigawatt fleet. Southern Company subsidiaries are challenging the Clean Power Plan in court.
  • Xcel Energy reported in a recent SEC filing that its Integrated Resource Plan for subsidiary NSP-Minnesota will “allow for a 60 percent reduction in carbon emissions from 2005 levels by 2030,” and that it “anticipated compliance with the [Clean Power Plan] while maintaining reasonable costs for customers.” In comparison, the Clean Power Plan will reduce carbon emissions from the power sector on average 32 percent below 2005 levels by 2030.
  • Westar Energy, which serves Kansas, is rapidly reducing emissions — even while it is challenging the Clean Power Plan in court. The company’s 2015 Annual Report states that its fleet’s carbon emissions will fall 36 percent below 2005 levels by 2017 (see page 86 of the report). That already exceeds the national goal under the Clean Power Plan.

Power companies aren’t alone in their race to clean energy. States are continuing to make significant progress towards reducing their power sector emissions and meeting Clean Power Plan targets.

Here are some examples of continued state progress:

  • Arkansas already reached its 2030 Clean Power Plan compliance target last year, thanks to declining coal use in favor of more renewables and natural gas. An in-depth Arkansas Democrat-Gazette article found that “low natural-gas prices” was the most common reason cited by utility leaders for the decline in coal use.
  • Arizona is “well positioned” to comply and already on track to meet interim goals under business as usual, according to analysis by Pace Global. Modeling from Arizona State University similarly found that compliance was eminently feasible. The state is continuing to convene meetings to assess compliance options even though the Arizona Corporation Commission is challenging the rule in court.
  • California released a draft of its Clean Power Plan compliance plan in early August, the first state to do so. A California Air Resources Board spokesman stated that the proposal is “a proof of concept for other states, to demonstrate that this is a program that can be adapted to each state and that can be set up in a way that we can form a regional association.”
  • Georgia is on track to comply with the Clean Power Plan, especially under Georgia Power Company’s proposed integrated resource plan, which proposes to add much more renewable power.
  • Louisiana is continuing to plan for compliance. According to Louisiana Department of Environmental Quality Secretary Chuck Carr Brown, “Some of the coal states are saying, ‘Put your pencils down’… I took this as an opportunity to sharpen the pencil — to create something that is going to work for the state of Louisiana.”
  • Michigan’s Attorney General is fighting the Clean Power Plan in court even though the state “would be largely in compliance” with the rule under expected “business as usual” conditions, according to a recent report by the Electric Power Research Institute.
  • South Carolina regulators are developing a new state energy plan that will likely include measures to reduce power plant emissions. Although the state has halted official work on the Clean Power Plan and is challenging it in court, these emissions reductions could help the state comply with the rule — and spur economic development, as highlighted in a recent op ed by Frank Knapp, President of the South Carolina Small Business Chamber of Commerce.
  • This summer the National Association of Clean Air Agencies released a comprehensive report designed to help states develop implementation plans to comply with EPA’s Clean Power Plan. The report includes a complete model state plan submittal that states can adapt or build on as they wish.
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Five things you need to know before the Clean Power Plan oral argument

alternative-21581_640The Clean Power Plan oral argument is coming up soon. On September 27, attorneys will present their arguments in front of the full U.S. Court of Appeals for the D.C. Circuit.

EPA and the many supporters of the Clean Power Plan have already filed their written arguments – and so has the coalition of coal companies and their allies that are challenging the rule. (You can read all their submissions here.) And just yesterday, the D.C. Circuit released the final order on the argument’s format and duration.

The Clean Power Plan is America’s first-ever nationwide program to reduce carbon pollution from power plants. It sets eminently achievable carbon emission targets that phase in gradually, in line with current power sector trends, while giving states and power companies tremendous flexibility to determine how best to meet these goals.

As we approach September 27, here are five key facts to keep in mind:

  1. The Clean Power Plan has supporters across the country.

Power companies and state and local officials in forty-one states are supporting the Clean Power Plan in court – either through their state attorney general, a local power company, or a municipality. And there are a lot more supporters as well.

The final submitted briefs reflect a wide array of important perspectives in our society. Supporters of the Clean Power Plan in court include:

  • Leading businesses. Power companies that produce about 10 percent of our nation’s electricity as well as prominent, iconic businesses including Adobe, Amazon, Apple, Google, IKEA, Mars, and Microsoft
  • States and municipalities. 18 states and 60 cities, including major cities in states that are litigating against these protections – like Houston, Grand Rapids, and Miami
  • Consumers Union and other organizations addressing the economic benefits for consumers and low income ratepayers from expansive, low cost clean energy solutions
  • 41 faith communities including the National Council of Churches and the Catholic Climate Covenant
  • Numerous renewable energy companies that are members of the Advanced Energy Economy, American Wind Energy Association, and Solar Energy Industries Association, which together represent more than 3,000 companies in the advanced energy sector, a $200 billion industry in the United States
  • 25 business associations including American Sustainable Business Council, U.S. Black Chambers, Inc., as well as state associations from West Virginia, Kentucky and Ohio, among others
  • Current and former members of Congress, including 36 sitting Senators and 157 sitting members of the House
  • Leading public health associations such as the American Medical Association and the American Academy of Pediatrics
  • National security experts including former Secretary of State Madeleine Albright and former Secretary of Defense Leon Panetta
  1. The legal and technical foundation of the Clean Power Plan is rock solid.

The Supreme Court has affirmed EPA’s authority to regulate greenhouse gases under the Clean Air Act three times since 2007. In American Electric Power v. Connecticut (2011), the Supreme Court specifically held that section 111(d) of the Clean Air Act – the provision that underlies the Clean Power Plan – “speaks directly” to the regulation of carbon pollution from existing power plants.

EPA exhaustively analyzed the Clean Power Plan to ensure that it was based on the best available technical information and would not compromise the affordability or reliability of our electricity supply. EPA also reviewed millions of comments, received on every aspect of the proposed version.

A range of renowned experts have affirmed the robust legal and technical bases for the Clean Power Plan in amicus brief submissions to the D.C. Circuit, including:

  • The Institute for Policy Integrity — represented by New York University Law Dean Emeritus Richard Revesz
  • Former EPA Administrators William Ruckelshaus and William Reilly, who served under Presidents Nixon, Reagan and George H.W. Bush — represented by Harvard Law School’s Jody Freeman and Richard Lazarus
  • Leon Billings and Tom Jorling — the principal drafters of the 1970 Clean Air Act
  • Former state energy and environmental officials — including Larry Soward, Commissioner at the Texas Commission of Environmental Quality under Texas Governor Rick Perry
  • Premier electric grid experts, who affirmed that EPA’s approach is fully in line with on-going power sector trends
  • Top climate scientists, who articulated the latest research on observed and projected impacts from our changing climate
  1. The tremendous pace of clean energy development further reinforces the Clean Power Plan’s reasonableness.

The cost of renewable energy is falling at an extraordinary rate, spurring dramatic expansion in its use. The cost of new wind power has dropped 60 percent — and the cost of new solar by 80 percent — since just 2009.

Renewable energy is anticipated to make up approximately 63 percent of new capacity additions in 2016. In fact, the amount of new renewable energy capacity developed in the first three months of 2016 exceeded new natural gas by a factor of more than seventy to one. Almost 100 gigawatts of additional new renewable energy resources are now projected in the United States by 2020, and annual investment in energy efficiency has quadrupled in the last decade.

America’s powerful clean energy trends further buttress the feasibility of the Clean Power Plan’s targets. But you don’t have to take our word for it — because power companies have said so themselves.

In their Clean Power Plan filing, major power producers emphasized their strong support for the Clean Power Plan, highlighting that it “harnesses existing trends within the electricity sector” and was set “with ample margin and attention to what is practically attainable.”

As the companies noted, both they and the power sector in general have “have successfully reduced emissions within their generation portfolios without compromising reliability and will continue to do so” under the Clean Power Plan.

Dominion Resources, an owner of several large coal-fired power plants in the Mid-Atlantic, affirmed the feasibility of compliance in a lengthy amicus brief submitted in support of the Clean Power Plan.

  1. States and power companies are charging ahead.

On February 9, 2016, the Supreme Court stayed enforcement of the Clean Power Plan in an unprecedented order. Nonetheless, states and power companies are voluntarily moving ahead, in recognition of the tremendous value in following the Clean Power Plan’s flexible, sensible approach to achieving emissions reductions.

More than half of states are continuing to assess planning options under the Clean Power Plan. 14 states across the country have explicitly requested that EPA continue providing information and guidance to help them make informed decisions about potential Clean Power Plan obligations as they continue moving forward. California developed its proposed Clean Power Plan state plan in a year and released it for public comment earlier this month. State officials across the country have voiced support for sensible continued planning — as one Wyoming state legislator put it, “Wyoming should be prepared.” (See a full compilation of state statements on the Clean Power Plan here.)

Power companies across the country have expressed similar sentiments. A representative from Mid-American Energy highlighted that they “wish” the stay hadn’t happened, because of the resulting uncertainty. American Electric Power, a major producer of coal-fired electricity, said that the Supreme Court stay “doesn’t change our focus on the diversification of our generation fleet,” and those diversification plans include more gas and renewables. Power companies are already investing in clean energy in response to the market and their customers — for these companies, any delay in planning creates needless risk and uncertainty.

  1. This record-breaking summer highlights just how urgently we need sensible climate protections.

It’s challenging to encapsulate all the extreme weather we’ve witnessed in 2016. Just in the U.S., we’ve experienced a series of dangerous heat waves, deadly floods, and extreme storms. This week’s flooding in Louisiana is just the latest heart-rending example — with lives tragically lost and upended across the state. Yesterday, NASA announced that July 2016 was the warmest month ever in 136 years of modern record-keeping. According to the World Meteorological Organization, 2016 is firmly on track to be the warmest year yet. The Weather Channel noted all of these wild weather events from the first six months of 2016 together here, in a website on 2016’s “Weirdest Weather.” All these events are fully in line with the hotter, more extreme weather that’s predicted under a changing climate.

Meanwhile, new research only underscores the human health costs of climate change. Mitigating the human health impacts of climate change will add to the Clean Power Plan’s substantial health benefits from reducing soot and smog pollutants. EPA estimates that once the Clean Power Plan is fully implemented, these reductions will — every year — avoid 3,600 premature deaths, 1,700 heart attacks, 90,000 asthma attacks, and 300,000 missed workdays and schooldays.

These climate risks and essential health benefits highlight the importance of having a mandatory framework to ensure emissions reductions. Clean energy trends are already charging ahead, but investors need the certainty that the Clean Power Plan provides — and all Americans’ health and well-being are depending on it.

Also posted in Clean Air Act, Clean Power Plan, Economics, EPA litgation, Green Jobs, Greenhouse Gas Emissions, Health, Jobs, Policy| Comments are closed
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