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It’s Time for the Coal Industry to Come Clean

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

Coming Soon – Cleaner Trucks, Less Pollution, and Fuel Cost Savings

Traffic Light TrucksNew and improved Clean Truck standards are coming soon.

The U.S. Environmental Protection Agency (EPA) and the Department of Transportation (DOT) are expected to imminently finalize new greenhouse gas and fuel efficiency standards for medium-and heavy-duty trucks and buses. The standards will apply to the freight trucks that transport the products we buy every day, as well as to buses and school buses, tractor-trailers, heavy-duty pickup trucks and vans, and garbage trucks. (They are separate from standards for cars and passenger trucks.)

EDF, together with a broad coalition of stakeholders, has consistently called for a protective cost-effective program that will curb climate pollution and reduce our nation’s oil consumption while also driving innovative technologies that will stimulate economic growth and create high-quality domestic jobs.

Heavy-duty trucks consume almost 120 million gallons of fuel every day and emit more than 400 million metric tons of climate pollution annually. (These estimates do not include upstream emissions.) Freight movement is also one of the most briskly growing sources of greenhouse gas emissions and fuel consumption in the United States.

The upcoming second phase of Clean Truck standards will build on the first ever heavy-duty fuel economy and GHG program, which was finalized in 2011 with broad support from truck manufacturers, national security and veterans groups, labor, consumer, and health groups, and clean air advocates (including EDF). The success of the first phase Clean Truck program is already being demonstrated by the demand for more efficient trucks and the wide variety of efficiency technologies already available for consumers to choose from.

The second-phase Clean Truck standards will apply to vehicles manufactured years from now, beginning in model year 2021 and spanning later years.The nearly final standards are an important step forward in delivering climate, health and energy benefits.

EPA estimates the standards, as proposed, would:

  • Reduce carbon pollution by one billion tons and cut fuel use by 1.8 billion barrels of oil over the lifetime of the vehicles subject to the standards
  • Save vehicle owners $170 billion in fuel costs over the lifetime of the vehicles
  • Save the average American household $150 a year by 2030
  • Reduce harmful criteria and air toxic emissions by hundreds of thousands of tons annually

Increased Efficiency Provides Savings across the Entire Supply Chain

The average semi truck today burns 20,000 gallons of diesel a year – the same volume of fuel used by 50 new passenger cars. Fuel has been the largest single cost for trucking fleets, accounting for 39 percent of the cost of ownership in 2013. According to a study by EDF and CERES, robust fuel efficiency standards for trucks could lower total per-mile cost of ownership by 22 cents-a-mile by 2040.

Companies across the Supply Chain Support Strong Final Standards

Given the combination of environmental and economic benefits that strong final standards will provide, many leading companies have already shown support. PepsiCo and Walmart – two of the largest trucking fleets in the U.S. – support strong standards. General Mills, Campbell’s Soup, IKEA and many other companies that rely on trucking also support strong standards. Innovative manufacturers, equipment manufacturers, and freight shippers have also called for strong standards.

Consumers Demand More Efficient Trucks

Some of the savings from the Clean Trucks standards will be passed on to consumers. The Consumer Federation of America found that rigorous fuel economy and greenhouse gas standards could save American households $250 annually in the near term and $400 annually by 2035 on goods and services (even more than what EPA estimated). According to a survey by the Consumer Federation of America, a large majority of Americans74 percent – favor requiring truck manufacturers to increase the fuel economy of large trucks to reduce their fuel costs, as much of that savings is passed on to consumers.

Cost-Effective Technologies are Proven and Available

There are many technology solutions on the shelf and in production today that can be cost-effectively scaled to make trucks significantly more efficient and cleaner. Truckers and fleets across the nation have already begun adopting many of these fuel saving technologies and strategies.

Here are some examples:

Rigorous fuel efficiency and greenhouse gas standards for heavy-duty trucks and buses will make the American freight industry cleaner and create American jobs while saving American fleets and consumers money.

Also posted in Cars and Pollution, Clean Air Act, Economics, Greenhouse Gas Emissions, Partners for Change, Policy| Comments are closed

3 Keys for the American Petroleum Institute’s New Climate Task Force

AdobeStock_56840116By Ben Ratner, Director, EDF's Corporate Partnerships Program

The climate change discussion is percolating even in surprising places. The latest sign: the American Petroleum Institute’s recent formation of an internal task force on climate change. Reportedly the new task force’s mandate is to revisit API’s approach to this crucial issue, going into an election year and with ever greater scrutiny on fossil fuels.

It is too soon to know whether the task force will rubber stamp a business-as-usual approach defined by glossing over climate concerns and attacking policy measures, or chart a new path instead.

But if the task force is serious about a fresh look at the issue, here are three keys for the task force to consider as it ponders the future of API on climate.

Face the Facts

The oil and gas industry must be responsive to growing pressures from its investors, corporate customers, and Americans affected by oil and gas operations – from local pollution to climate change.

The historic global climate agreement reached in Paris, supported by nearly 200 countries including powerhouses like the United States and China, was also supported by a wide cross-section of American businesses – including PG&E, which as a natural gas distribution company and power generator is a user of API members’ products and a face to climate-conscious consumers.

Last April, over 400 investors representing more than $24 trillion in assets under management urged stronger leadership and more ambitious policies to lessen risk to investment and retirement savings of millions of Americans. Since then, the 2016 investor shareholder resolution season yielded a record breaking number of resolutions – 94 – addressing climate change, many levied as challenges to large oil companies.

And American public concern on global warming is reaching an eight year high, with nearly two-thirds of adults saying they worry about global warming a “great deal” or “a fair amount”, according to Gallup.

Facing all the facts, not cherry-picking them, can ground the task force’s work in today’s dynamic environment and enable an effective response in a changing world.

Solve Methane

While understanding and concern on the methane challenge has snowballed, API’s response has severely lagged.

But it doesn’t have to.

The methane emissions from the U.S. oil and natural gas industry account for the climate damage over a 20-year timeframe equivalent to roughly 240 coal fired power plants. And yet, when the Environmental Protection Agency issued rules earlier this year requiring operators to implement basic safeguards to detect and prevent emissions, API’s public response was to decry new environmental rules as “unreasonable and burdensome”.

Months prior, API’s combative regulatory filing questioned the authority of EPA even to regulate methane emissions, resisted twice-a-year inspections for accidental leaks and urged inspection exemptions that ignore insights on leak unpredictability.

The next round of methane rules is around the corner, and better late than never for API to embrace the United States’ goal of a 45% reduction in methane emissions from the oil and gas sector and to support effective national methane rules grounded in science and economics. Supporting a level playing field to address the invisible but undeniable methane problem would increase investor confidence and keep more product in the pipelines working for the economy, not against the climate. And it just might help build public trust in an industry that according to Edelman lags only the pharmaceutical and financial services industries in that category.

Truth be told, new regulations and compliance are not cost-free, but neither are exploration and drilling. Investing in effective rules will provide climate and environmental safeguards – a needed advancement responsive to legitimate pressure that is only rising.

Support Carbon Pricing

Implementing a market based approach to reducing greenhouse gas emissions is widely thought to be the ultimate key to achieving U.S. climate goals including cutting emissions 80% by 2050. Geographies from northeastern states and California to South Africa and the EU have implemented various forms of carbon pricing. A number of mostly European API members have publicly supported pricing carbon, for example BP recognizing “that carbon pricing by governments is the most comprehensive and economically efficient policy to limit greenhouse gas emissions.”

And yet, some prominent API members have to date withheld support for carbon pricing, or provided lukewarm quasi-endorsements but not lobbying muscle.

The oil and gas industry has survived through evolving, and it’s time to evolve on carbon pricing. An economically rational policy can provide the investment clarity companies want, while delivering the greenhouse gas reductions that societies, supply chains, and ecosystems need.

API is a large organization with diverse views represented, and the climate task force’s job won’t be easy. But the time for change couldn’t be better.

This post first appeared on the EDF + Business Blog

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

How the Clean Power Plan Can Benefit Latino Communities

rp_CPP-Latinos-Final-300x300.jpgEarlier this month, the United States announced a major step forward in addressing air quality concerns and climate change threats to Latinos.  I’m talking about the Clean Power Plan, which establishes the first-ever national limits on carbon pollution from powerplants and places us on a path to heed Pope Francis’s call to protect our planet.

Unfortunately, critics began attacking the plan even before it was final.  Some of these attacks have targeted the Latino community in particular, arguing that the Clean Power Plan will disproportionately and negatively harm Latinos.  These are baseless claims and arguments that have been debunked by experts.

When the Clean Power Plan takes full effect, Latinos will be among the many Americans who will share in the benefits of a cleaner, healthier future that also affords us good jobs and energy savings.

Cleaner energy, less cost

Let’s start with the question on everyone’s mind: Will the Clean Power Plan make my electric bill more expensive?

According to analysis by the Environmental Protection Agency, the Clean Power Plan will reduce electric bills by about $7 per month by 2030.  (It will also provide up to $54 billion dollars in public health and climate benefits.)  Latinos are likely to feel these positive impacts directly because the benefits of clean energy, which replace polluting energy sources like coal, can reach us through health, environmental, and economic avenues – and sometimes all of these at once.

Take solar power, for example.  The price of solar has fallen 80 percent since 2008, and rooftop solar is now being deployed in middle class neighborhoods in places like Arizona and California where the median income ranges from $40,000 to $90,000.

Technologies like solar keep our air clean and our kids healthy.  This is key for the Latinos who work outdoors as roughly 1 in 4 workers in the construction and agriculture industries, and for the 14 percent of Latino children who have ever been diagnosed with asthma.

Solar power can also save us money on our bills.  This is especially true when they are coupled with incentives like net metering, which allows solar customers to receive a credit on their bill for sending excess energy they don’t use back to the grid.  Solar power is also becoming increasingly accessible to all Americans. Thanks to new financing models like solar leasing programs (if you do not want to pay a large up-front cost) and community solar programs (if your rooftop is not suitable for solar panels or you rent your home), you don’t have to be rich to get in on the clean energy revolution.

More jobs

The Clean Power Plan will also help Latinos by creating tens of thousands of good, new jobs in the clean energy sector by 2040.  This is part of a broader trend: In 2014, the solar industry added jobs nearly 20 times faster than the national average and is poised to add another 36,000 jobs in 2015.

According to a 2013 report by National Council of La Raza, many of the jobs in this sector are highly accessible to Latinos, and Latinos are already engaging in the growing clean energy economy in locations across the country.  In some places, like McAllen, Texas, Latinos are overrepresented in some of the top clean economy occupations; in others, like Albuquerque, New Mexico, Latinos could benefit from higher wages by transitioning to jobs in the clean economy.  Most “green jobs” pay higher median wages than traditional Latino occupations, and this wage advantage holds true even outside of these traditional jobs.

Prioritizing low-income communities

What about the most disadvantaged communities, those who are most in need of cost savings, cleaner energy, and protections from climate change?  The Clean Power Plan aims to prioritize the deployment of energy efficiency improvements in low-income communities through the Clean Energy Incentive Program (CEIP).  By providing a mechanism to award states extra compliance credit for efficiency programs that provide energy savings to low-income communities, the CEIP is designed to help lower electricity bills and bring jobs to people in these communities.

A report by Environmental Defense Fund demonstrates that savings to families could be significantly greater with more widespread deployment of energy efficiency—securing a 15 percent improvement in energy efficiency by 2030 and generating annual average household savings of $157.  Measures like the CEIP, along with strong stakeholder engagement requirements and other measures, will help ensure the Clean Power Plan benefits all Latinos – and all Americans – in transitioning to a clean energy economy.

Setting the record straight

Claims that the Clean Power Plan will hurt Latinos, drive up energy bills, and disadvantage low-income communities are simply false.  Rather, these are the very claims that spread harmful misinformation to our communities and create the most serious barriers to accessing clean air, affordable energy, and good paying jobs.

At the same time, as with any ambitious challenge, our work is not done.  States must finalize and deliver implementation plans to meet their pollution-reduction goals.  This is where the rubber hits the road, and the states that get out of the gate quickly to achieve these goals will more swiftly capture the benefits.

We must be engaged in this process, urging states to accelerate the transition to cleaner energy for all communities. First, we must tell our decision makers in Washington to support the Clean Power Plan.  Then, Latino communities must demand a place at the table and advocate for states to act now – as should everyone who wants to ensure the benefits of America’s Clean Power Plan are shared by all.

This post originally appeared on EDF's Energy Exchange blog.

Also posted in Clean Air Act, Clean Power Plan, Green Jobs, Policy| Comments are closed

3 Ways the Clean Power Plan Will Strengthen Our Economy

cleanenergymarket_378x235_0(This post originally appeared on EDF's Energy Exchange blog)

On Monday, the Environmental Protection Agency (EPA) announced the Clean Power Plan, the first initiative of its kind to curb carbon dioxide (CO2) emissions from existing U.S. power plants. By improving air quality, the plan promises to prevent 90,000 childhood asthma attacks and avoid up to 3,600 premature deaths each year – without compromising economic growth. In fact, the Clean Power Plan is an incredible economic opportunity that states can’t afford to miss.

By limiting power plants’ “free pass” to pollute, EPA projects their Plan will deliver billions of dollars in environmental and public health benefits each year – and that’s just the start. Here are three ways in which the Clean Power Plan will work to strengthen states’ economies and accelerate many of the clean energy trends already underway:

1) It will pave the way for hundreds of thousands of clean energy jobs.

The clean energy economy is already delivering more quality jobs than the fossil fuel industry. Solar energy, for example, now employs more Americans than coal mining – 142,698 versus 89,838 – while the entire renewables industry employed over 700,000 Americans in 2014. Furthermore, one dollar invested in clean energy today creates three times as many jobs as a dollar invested in fossil fuels.  And under the Clean Power Plan, this trend will accelerate with the potential to create a quarter-million jobs by 2040. That’s because many states will choose to comply with EPA regulations by ramping up renewable energy – an industry that is more labor-intensive and creates more jobs per dollar invested than the highly-mechanized fossil fuel industry. Clean energy installation also relies more heavily on local workers, increasing the amount of locally-invested dollars and related economic benefits to communities (in contrast to coal plants, whose investments are mostly funneled to out-of-state mining companies).

2) It will lower household electricity bills.

One powerful way states can choose to implement the Clean Power Plan is by employing more energy efficiency and renewable energy resources. Energy conservation could include everything from state-wide weatherization programs to smart electricity pricing – like demand response and time-of-use-pricing, which work to save people electricity and money. Because after all, the cheapest kind of electricity is the kind we don’t use in the first place. EPA projects that the Clean Power Plan’s flexible framework will enable a total of $155 billion in electricity savings between 2020-2030 – reducing enough energy to power 30 million homes. And, EPA went one step further to ensure these energy savings reach the communities that need them most. Through the Clean Energy Incentive Program, the Clean Power Plan prioritizes early investment in energy efficiency projects in low-income communities by rewarding states for implementing these programs.  These incentives, along with the plummeting cost of renewables like solar, will make clean energy solutions the increasingly affordable compliance option. According to the EPA, this means that by 2030, when the Plan is fully implemented, electricity bills are expected to be roughly seven percent lower than they would be without any state action. Put another way, U.S. families will be saving on average $85 a year on their electricity bills. And that’s money they can pump back into our economy.

Click to Enlarge

3) It will spur greater technology innovation and entrepreneurship.

EPA’s plan – once implemented – will send a strong market signal to entrepreneurs, businesses, and venture capitalists to move full-steam ahead with new, clean energy innovations. Under current market conditions, the advanced energy economy is already outpacing the U.S. airline industry, and roughly equal to the pharmaceutical business – and this growth will be accelerated under the Clean Power Plan. History has proven that these kind of smart, commonsense energy policies spur economic growth and innovation. In California, for example, since the passage of AB 32 (the state’s carbon pollution-reduction law), cleantech jobs alone have grown ten times faster than in other sector over the past decade, and since 2006, the state has seen investments of $27 billion in clean energy venture capital. California experienced this remarkable growth all while lowering its carbon emissions. Under the Clean Power Plan, we can do this on the national scale too with the right market signals.

Political support for a thriving industry

EPA’s Clean Power Plan provides states with tremendous flexibility in deciding how to achieve their emission reduction targets, in ways that build upon our already-thriving clean energy economy. Most states have already taken great strides towards meeting the Clean Power Plan’s targets, making them well-positioned to meet regulations by the newly-extended 2022 deadline. Whether a state’s economy thrives is a matter of the choices by state policy makers.

I think my friend and colleague, Fred Krupp sums up this economic opportunity best:

The states that join this race first, and run it the fastest, will win both more investment in clean technologies and less air pollution for their communities. No single step will fix climate change, but the Clean Power Plan is also a catalyst for more and quicker pollution reductions in the future, as we continue to innovate and grow the economy.

The Clean Power Plan is an important step toward establishing policies that will bolster and encourage our existing clean energy economy. We have the tools, technology, and innovation to turn the corner on climate change – we welcome the regulations to support them.

Photo Source: Duke Energy

Also posted in Clean Air Act, Clean Power Plan, Energy, Green Jobs, Greenhouse Gas Emissions, News, Policy| Comments are closed
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