Selected category: Jobs

When EPA Is Under Threat, So Is Business: Two Key Examples

(This post first appeared on EDF+Business. It was written by EDF's Liz Delaney)

American businesses benefit tremendously from the robust voluntary and regulatory programs of the U.S. Environmental Protection Agency. These programs are now under threat of massive budget cuts and regulatory rollbacks.  In the coming weeks and months, the experts at EDF+Business will examine what a weakened EPA means for business. 

While some politicians may question the reality of climate change, most CEOs do not. So it’s no surprise that while Congress has been stuck, business has been busy addressing the problem. Luckily, they’ve had a helpful partner by their side: the U.S. Environmental Protection Agency (EPA).

Contrary to now head of the EPA Scott Pruitt’s claim that business has been subjected to "regulatory uncertainty"—stated during this year’s Conservative Political Action Conference—the Agency has administered a number of voluntary and regulatory programs that help corporations respond to the challenge of climate change. For companies, future planning is simply good business. This is why many in  Corporate America—having long accepted that climate change is real— are continuing to transition towards low-carbon energy options and work with the EPA to move forward in a sensible, cost-effective manner.

But with the recent announcement on Pruitt’s plans to cut the EPA’s budget by a reported 24 percent—roughly $6 billion, its lowest since the mid-1980's–it may be up to the business community to defend the instrumental role of the Agency in helping business thrive while protecting the environment.

Here’s a look at just two of the many EPA programs that have helped business transition to a clean energy future.

Forging a smart economic future with the Clean Power Plan

Many in the business community strongly supported the EPA’s Clean Power Plan (CPP)—the first-ever national limits on carbon pollution from power plants. The argument? Dirty sources of energy generation are becoming a growing concern for corporate America. These energy sources are increasingly uneconomic. Fortune 500 companies routinely set renewable energy and emissions reduction goals, but find roadblocks in many energy markets around the country.

Fortunately, the CPP can open new opportunities for businesses interested in operating in a clean energy economy. The rule’s flexible framework puts states in the driver’s seat to set plans that call for the most appropriate and cost-effective solutions for meeting pollution reduction targets while spurring innovation. If you ask me, this satisfies Pruitt’s call to "restore federalism" by giving states more of a say in regulations. The plans provide clarity on the energy options available to businesses in different regions, helping to inform their long-term carbon reduction strategies and eventually increase access to cost-effective low-carbon energy.

This explains why last year major innovators including Mars, IKEA, Apple, Google, and Microsoft filed legal briefs in federal court supporting the EPA’s Plan. And more recently, leading executives from over 760 companies and investors—many of them Fortune 500 firms—called upon the new Administration to move ahead with policies to address climate change, like the Clean Power Plan.

The CPP is positioned to:

  • Generate $155 billion in consumer savings between 2020-2030
  • Create 3x as many jobs per $1 invested in clean energy as compared to $1 invested in fossil fuels
  • Lead to climate and health benefits worth an estimated $54 billion, including avoiding 3,600 premature deaths in 2030

The Green Power Partnership

The Green Power Partnership is a voluntary program launched by the EPA to increase the use of renewable electricity in the U.S. Under the program, businesses are armed with resources and provided technical support to identify the types of green power products that best meet their goals. Since its inception, the Partnership has made notable progress in addressing market barriers to green power procurement.

Through the Partnership, companies can reduce their carbon footprints, increase cost savings, and demonstrate civic leadership, which further drives customer, investor and stakeholder loyalty. Take Colgate-Palmolive for example: as one of the Green Power Partnership’s national top 100, the consumer products giant has generated close to 2 billion kWh of annual green power through wind power alone. This represents 80% of the company’s total electricity use.

Today, hundreds of Partner organizations rely on billions of kWh of green power annually. At the end of 2015, over 1,300 Partners were collectively using more than 30 billion kilowatt-hours (kWh) of green power annually, equivalent to the electricity use of more than three million average American homes.

Pruitt has ratified the belief that we can “grow jobs, grow the economy while being good stewards of the environment”–and he’s right. The renewable energy industry is now outpacing the rest of the U.S. in job creation; which is good news for business and the economy at large. American wind power now supports more than 100,000 jobs—an increase of 32% in just one year—and solar employs more people in U.S. electricity generation than oil, coal and gas combined.

Long-term economics versus short-term politics

We don’t know what will happen in Washington over the next few years. But many businesses are moving forward. Rather than shift course, corporations are increasing investments in clean, reliable power, a move that is consistent with sound business practices.

But business can’t do it alone. The EPA supports responsible companies who have committed to reducing their carbon footprints while safeguarding our planet. It’s time for business to not just leverage their scale and buying power to help accelerate the transition to a clean energy future, but to speak up in favor of maintaining a well-funded agency that continues to make decisions based on sound science and the law.

In his first address to the EPA, Scott Pruitt said, “you can’t lead unless you listen.” Let’s make sure he hears from the businesses that are focused on a future where both the economy and the environment can thrive.

Also posted in Economics, News, Policy, Setting the Facts Straight| Comments are closed

Investments to Meet Emissions Goals are Driving Innovation and Growth in U.S. Auto Industry

15261010832_b13a8d395c_kThe past couple of weeks have seen a whirlwind of announcements related to the U.S. auto industry.

The century-old industry has been hailed as the fastest U.S. job creator – expanding payroll by “nearly 35 percent” in recent years. Manufacturers have introduced dozens of new, fuel-efficient models. Technology companies and automotive manufacturers are collaborating more than ever to add features, and to get the world ready for self-driving vehicles.

The need for climate action has been a critical driving factor in each of these trends.

The Clean Car Standards have been focusing auto industry investment and innovations since they were finalized in 2010. Over that time, the automobile industry has made a dramatic return to profitability and added jobs – all while exceeding the Clean Car Standards. The industry has also started to bring to market a new generation of fuel-saving solutions.

Confirmation of these trends could be found at the recent Consumer Electronics Show and the Detroit Auto Show, where manufacturers paraded out their latest developments.

  • Ford stated that it expects sales of electric vehicles will overtake sales of gas-fueled vehicles within 15 years. Ford showcased its ability to improve conventional vehicles by unveiling the 2018 model Ford F150 – the best selling vehicle in the U.S. – with options for a more fuel efficient 3.3 liter six cylinder engine and automatic stop-start technology. It also announced new hybrid versions of the F-150 and Mustang by 2020. The company promised a new fully electric SUV vehicle with 300-mile range by 2020.
  • General Motors (GM) celebrated having the fully-electric, 238-mile range Chevy Bolt awarded the North American Car of the Year or Truck of the Year. The Chevy Bolt was previously awarded Motor Trend Car of the Year. The Bolt, which came to market last month, is also at the center of GM’s work on self-driving vehicle technology
  • Nissan announced a new generation of its LEAF electric vehicle, with “autonomous drive functionality" for highways.
  • Honda publicized its plan to introduce a new, U.S.-made hybrid vehicle in 2018 and roll out its Clarity Electric and the Clarity Plug-In Hybrid vehicles.
  • Toyota appointed its president (grandson of the company’s founder) to lead their newly formed electric car division, in an effort to “speed up development of electric cars.” 
  • Volkswagen – unveiled a prototype electric van capable of a 270-mile range and with room for eight-passengers. The company has committed to have at least 25 percent of its global sales be electric vehicles by 2025.
  • Samsung introduced a new lithium-ion battery cell for electric vehicles. The battery promises over 350 miles of range and a 20-minute fast charge. The battery is slated for production in 2021.
  • Tesla declared that its gigafactory for battery production was open for business. The Reno, Nevada facility already employees almost 3,000 workers, and is ultimately expected to employ 6,500 in full-time positions.
  • Mercedes announced in Paris last year that electric cars would account for 25 percent of the company’s deliveries in 2025, backed by plans to invest $1.1 billion in battery technology.

As these developments show, automakers and their suppliers are investing and bringing to market clean vehicle solutions beyond what even the Clean Car Standards require.

These companies are making these investments because there is a robust domestic market for clean cars. Electric vehicle sales in the U.S., for example, were up more than 50 percent in the second half of 2016 (compared to 2015).

Companies are also making these investments to stay competitive in a global race that will define the next chapter of mobility. GM, for example, had a third of its global sales in China in 2016. China is the largest market worldwide for electric vehicles and plug-in hybrid electric vehicles, and if U.S. automakers want to be competitive there they will need to stay on the leading edge of the technology curve. Autotomy and electrification will be the hallmarks of this new, global chapter.

By driving more investment in future offerings, the Clean Car Standards help position U.S. manufacturers to win this race at home and abroad.

This perspective was recently voiced by the United Auto Workers, which noted:

“Our competitors around the globe are working to strengthen environmental standards and it would be counterproductive to enact policies that provide disincentives for investing in advanced technologies and improving efficiency. History has taught us that a diverse fleet is essential for strong export sales and keeping jobs in the United States. Efficiency and emission standards can and must continue to be a win-win for the environment, working families, domestic manufacturing and the overall economy.”

We couldn’t agree more.

Also posted in Cars and Pollution, Clean Air Act, News, Partners for Change, Policy| Comments are closed

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, Energy, EPA litgation, Green Jobs, Greenhouse Gas Emissions, 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 Energy, Health, Latino partnerships| Comments are closed

It’s Time for the Coal Industry to Come Clean

coal_mine_wyoming
By now you have all heard the coal industry claims that the Clean Power Plan will kill the coal industry. This week federal judges hearing oral argument on the rule will no doubt hear the same. A new report by Sue Tierney of the Analysis Group clearly demonstrates just how misleading these claims are.

Dr. Tierney’s analysis examines changes in the industry since the 1970’s to unpack the factors that led to coal’s rise through 2000 and steady decline since. It shows how shifting economics for energy production have caused cost-effective lower-emitting natural gas generation and zero-emitting renewables to steadily out-compete coal and erode its market share. The analysis also shows how the industry made a large number of badly misplaced bets that have left them with over-burdened balance sheets, and facing bankruptcy as a result of these self-inflicted wounds.

Citing analyses by the Energy Information Administration and others, the analysis shows the irreversibility of these trends as coal is simply no longer the cheapest form of generation. These trends will also continue to drive a transition to cleaner lower-carbon fuels regardless of the fate of the Clean Power Plan. The clear implication is that industry should focus on preparing for the future and adapting to these new market conditions as opposed to fighting long-delayed protections that will help secure a more stable climate, a sustainable economy and vital public health benefits.

The analysis also examines the significant job losses seen since 1980, and finds that here too the blame has been misplaced. Data clearly show that decades ago, increasing productivity and a shift from eastern to western coal led to significant job losses even while the industry’s overall production was in a period of dramatic growth. Remarkably, coal mining jobs fell by one-half from 1975 to 2000 even as coal production increased by more than 60 percent.

These market shifts have affected local mining communities. But as the analysis makes clear, these trends have been decades in the making and are driven by profound changes in the energy markets and the way in which coal is produced. Much as the coal industry and its allies like to divert attention from these fundamentals, rolling back life-saving measures to protect our climate and public health from power plant pollution won’t bring back past levels of coal mining jobs or production. However, there is ample room for coal mining companies to support these communities in transition by engaging constructively in the debate on how to move forward in light of these market fundamentals, and how best to harness unique local opportunities. These companies owe it to their workers and communities to do so.

The Clean Power Plan is essential for ensuring vital reductions in climate pollution from the power sector, America’s largest contributor of these emissions. It is expected to deliver $54 billion in annual climate and health benefits while saving up to 3,600 lives each year. It is possible that these benefits could also result in some incremental reductions in coal consumption, depending on how states themselves choose to design their strategies to cut pollution. However, most analyses find that these declines would be only a fraction of those driven by market forces over the past decade.

Therefore, instead of distracting investors and local communities through unfounded attacks on EPA and the Clean Power Plan, coal companies should be honest about what is really driving the erosion of their market share and of their balance sheets. They should come clean about the fact that lower carbon generation is simply beating them in the marketplace and that they made a bunch of bad bets when times were good. So doing would help everyone engage in a more serious and honest discussion about how to move these communities forward and transition into a position of success in the modern energy economy.

There is no time to waste – let’s start working together to forge such solutions for these communities.

About the analysis: This independent report was commissioned by Environmental Defense Fund but solely authored by Susan Tierney. Dr. Sue Tierney is a Senior Advisor at the Analysis Group, specializing on electric and gas economics and policy.  She formerly served as the assistant secretary for policy at the U.S. Department of Energy, state cabinet officer for environmental affairs, and state public utility commissioner.

Also posted in Clean Air Act, Clean Power Plan, Economics, EPA litgation, Policy| Read 2 Responses

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, Energy, EPA litgation, Green Jobs, Greenhouse Gas Emissions, Health, Policy| Comments are closed
  • About this blog

    Expert to expert commentary on the science, law and economics of climate change and clean air.

  • Get blog posts by email

    Subscribe via RSS

  • Categories

  • Meet The Bloggers