Category Archives: Policy

Flexible Pollution Rules can Boost the Economy: 5 Reasons Why

By Diane Munns, Senior Director, Clean Energy Collaboration

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Source: Flickr/Brookhaven National Lab

Nobody likes being told what to do.

Gina McCarthy, head of Environmental Protection Agency, knows that. So she asked her agency to craft a plan that leaves it up to states to shape their energy future – as long as they cut carbon emissions from power plants.

Often lost in the heated debate over EPA’s Clean Power Plan, however, is the fact this built-in flexibility will also give a boost to clean technology ventures, and speed up energy innovations already under way in many states. It could bring down costs for consumers, and maybe even give a much-needed boost to our economy.

Here’s how.

1. Flexibility will foster creativity.

All states have different strengths and weaknesses, and their infrastructure varies. Under EPA’s plan, a state can choose to close or upgrade coal plants, join a carbon market such as the Regional Greenhouse Gas Initiative, invest in zero-carbon renewable energy sources, boost energy efficiency programs, or take any other step to meet the individual goal EPA set for the state.

Chances are, many state strategies will be multi-pronged and collaborative. The best and most viable solutions will surface to the top and be exported as best practices to other states. In fact, states and utilities looking to get ahead of the game are already beginning the discussions needed to one day craft plans.

2. State plans can be tweaked and improved over time.

States have 15 years to meet their individual carbon reduction goals. This is not supposed to be a rush job, no matter how urgent the climate challenge.

So a state that needs to abandon plans for a certain new technology, or that wants to switch to a more affordable solution, will likely have time to do so. The long-term planning horizon will allow new technologies and business models to be tested and take hold.

3. As old plants close, new and cost-effective technologies move in.

The EPA rules are being proposed at a time when utilities nationwide are pondering how to best replace aging infrastructure. Three-quarters of all coal-fired power plants are at least 30 years old, which means they only have about a decade left to operate.

This transition is expected to speed up over the next few years as a 2015 deadline for reducing mercury emissions and other harmful pollutants from power plants draws near.

With carbon storage still out of reach, no off-the-shelf technology available to affordably cut pollution from coal plants – and with natural gas, a fossil fuel, not a long-term viable alternative – we expect utilities to increasingly turn to renewable generation and energy efficiency solutions to meet EPA’s goals.

Energy efficiency remains the single best value for the dollar and it can easily be deployed within the 15-year timeframe.

4. A changing energy landscape will bring new business.

As zero and low-carbon technologies become more valuable and competitive over time, there will be more opportunities for companies to move into this space – and to flourish.

For years already, utilities have been switching from coal to natural gas, a cleaner and cheaper fuel that emits about half the carbon coal does. Industry analysts expect this transition to speed up in anticipation of the new power plant rules.

As state regulators push utilities to comply with the EPA emissions targets, look for new opportunities for industry and entrepreneurs to reduce emissions and improve efficiencies at natural gas plants.

Other businesses will scale up investment in alternative energy sources as the market for such technology gains value and broadens. There are already many active players in this emerging industry, and they want to grow in the United States and beyond.

5. Coming: A new way to produce and consume energy.

States working to cut emissions from fossil plants will be exploring new approaches – not just for energy production, but also for how we consume energy. There is “low-hanging fruit,” untapped opportunities for carbon reduction and customer savings, that won’t require additional power plant investments.

Expect EPA’s plan to fuel smarter utility business models where power companies are rewarded for helping consumers save energy rather than wasting it. The environment will benefit, as will American households and businesses.

This post originally appeared on our EDF Voices blog.

Also posted in Clean Air Act, Clean Power Plan, Energy, Green Jobs, Greenhouse Gas Emissions| Leave a comment

A New Step in the Fight to Reduce Toxic Mercury Pollution from Power Plants

(This post was written by EDF Senior Attorneys Graham McCahan and Tomas Carbonell)

Today, EDF and its allies joined the latest fight to protect the Environmental Protection Agency’s (EPA) Mercury and Air Toxics Standards.

We filed a brief asking the Supreme Court to deny the petitions that are seeking review of a lower court decision upholding the standards.

The Mercury and Air Toxics Standards (MATS) will require crucial and long-overdue emission reductions of toxic pollutants including mercury, arsenic, and acid gases from the single largest source of toxic air pollution in the U.S.— coal-fired power plants.

Starting in April 2015, when they go into effect, these standards will prevent thousands of premature deaths, heart attacks, and asthma attacks every year.

The Mercury and Air Toxics Standards were upheld by a panel of judges on the D.C. Circuit Court of Appeals in April 2014 against a variety of legal challenges.

Fortunately, most power plants in the U.S. are already on track to comply with these life-saving standards.

The U.S. Energy Information Administration reported that by the end of 2012 — or more than two years ahead of the April 2015 compliance deadline:

64.3% of the U.S. coal generating capacity in the electric power sector already had the appropriate environmental control equipment to comply with the MATS.

Unfortunately, some power companies and their industry partners continue to file legal attacks against the Mercury and Air Toxics Standards.

Our opponents are continuing their legal attacks in spite of the D.C. Circuit’s detailed opinion strongly upholding EPA’s authority to issue the Mercury and Air Toxics Standards and affirming the EPA’s well-reasoned determinations on key technical issues.

Industry interests and states have filed petitions asking the U.S. Supreme Court to review the D.C. Circuit’s decision.  Their petitions primarily emphasize the alleged costs of the Mercury and Air Toxics Standards — even though some of the same power companies have recognized that the standards include flexibilities that have helped them slash their compliance costs.

For instance, Southern Company CFO and Executive Vice President Arthur P. Beattie stated in 2012 that the amount the company projects for MATS compliance costs would be far lower than previously predicted:

[B]ecause of the new flexibility that [the company has] found in the final rules of the MATS regulation." (Arthur P. Beatty, CFO and Executive Vice President of Southern Company,  Deutsche Bank Clean Tech, Utilities and Power Conference, May 15, 2012)

In fact, as the D.C. Circuit recognized in its decision, EPA’s cost-benefit analysis found that the Mercury and Air Toxics Standards would yield as much as $90 billion in annual health benefits once implemented — approximately nine times the anticipated cost of the rule.

The good news is that many people and organizations— including public health, equal justice, and environmental groups, plus a number of states and cities — are standing together to safeguard these protections for our communities and families.

Those groups include the American Academy of Pediatrics, American Lung Association, American Nurses Association, American Public Health Association, Chesapeake Bay Foundation, Citizens for Pennsylvania’s Future, Clean Air Council, Conservation Law Foundation, Environment America, Izaak Walton League of America, National Association for the Advancement of Colored People (NAACP), Natural Resources Council of Maine, Natural Resources Defense Council, Ohio Environmental Council, Physicians for Social Responsibility, Sierra Club, and Waterkeeper Alliance – along with EDF, of course.

That’s why today we joined together to file a brief with the Supreme Court asking the Justices not to reconsider the D.C. Circuit Court’s decision upholding these life-saving clean air protections.

Also posted in Clean Air Act, EPA litgation, Health| 2 Responses, comments now closed

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

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

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

The court held that:

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

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

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

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

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

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

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

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

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

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

The court explained:

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

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

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

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

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

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

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

According to the Guardian, Bruning claims that:

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

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

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

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

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

Traveling to the climate march: Worth the carbon footprint?

(This blog originally appeared on EDF Voices)

Lauren Frohne/Flickr

Looks like the simmering “climate swerve” may come to a boil on September 21 in New York City for what’s billed as the People's Climate March.

Bill McKibben called for it in the Rolling Stone magazine. Tens of thousands are slated to respond to his call, ostensibly to channel Franklin D. Roosevelt’s ghost and make world leaders "do it" – push for strong climate policies, now.

Except that it wouldn’t be the climate movement if it weren’t beset with self-doubt and second-guessing. Going to New York, you see, produces carbon dioxide emissions, the very cause of the problem. So how then can climate activists justify riding, driving or – heaven forbid – flying in the name of climate action?

We do because traveling to Manhattan, and expanding our carbon footprint in the process, may be better for the planet in the long-run than if we stayed home.

Real climate policy is what we need

Every cross-country roundtrip flight causes about a ton of carbon dioxide, per passenger. Driving emits carbon, if not quite as much. Trains do, too. Even if you bike or walk, you will need extra calories, which also come with additional carbon emissions.

A plethora of online calculators can help you decide how to minimize your own footprint. You could get positively crazy making these calculations, and some possibly have.

If you spend so much time online researching your carbon footprint that your power consumption shoots up, you may be on the wrong track.

We should all be decreasing our carbon footprint. The emphasis is on “all.” Real climate action, then, must go far beyond individual action by the committed core.

The People’s Climate March will take place on the eve of the United Nations’ Climate Summit, convened by Secretary General Ban Ki-moon on September 23, and for good reason. It’s policy that needs to change.

Coal cannot be banned, but it can be priced

The headwinds are strong, to say the least.

King Edward I banned the burning of coal in 1306, replete with the death penalty for repeat offenders. It didn’t take long for the ban to be lifted, and the coal-fueled industrial revolution has brought untold riches to many.

The coal question, in many ways, goes to the heart of the matter. Banning coal is out. It is neither possible nor necessarily desirable.

What we need is to incorporate the full societal cost of burning that coal into everyone’s private decisions.

At the moment, each ton of coal and each barrel of oil used causes more in external damage to human health and the environment than it adds in value to the economy. That doesn’t mean we should not burn any coal or any oil, but it does mean putting a price on carbon, ideally directly via carbon markets or taxes.

It means regulation. It means standards. It means tax reform. It means taking significant policy steps to restructure misguided market forces so they lead us off of the current high-carbon, low-efficiency path.

Composting counts, but it’s not enough

Going green is fine. I don’t drive, don’t eat meat, and do all sorts of other things that minimize my own carbon footprint. The climate movement is home to quite a few who go the full-on vegan, composting, skip-coffee-because-it’s-bad-for-the-climate route.

But going green is only good if it actually gets somewhere.

If you compel your in-laws to compost more and drive less – go forth and proselytize. But if this makes them ignore efforts to achieve critical policy changes, your campaign for a voluntary green lifestyle should probably stop.

Many actions needed for a climate revolution are akin to a bootstrapping problem. Building a wind turbine takes steel, which in turn takes energy. The green energy revolution then may well mean an increase in current, largely fossil-fueled energy use for the sake of decreased carbon emissions later.

The Climate March falls into the same category. Going to New York implies emissions, as do most other things we hold near and dear in our daily lives.

Participating in the march won’t change that fact overnight. But calling for real, measured climate action just might. Helping to build the momentum toward policy change is precisely what’s needed.

If you can do it while also decreasing your own footprint, so much the better. If not, choose policy change.

Bike if you can, fly if you must. By all means, go to New York on September 21.

Also posted in Greenhouse Gas Emissions, News| Comments closed

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

By Kate Zerrenner

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

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

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

How did EPA get those numbers?

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

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

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

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

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

States are already on their way

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

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

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

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

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

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

5 Undeniable Truths about the Clean Power Plan

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

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

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

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

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

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

1. Renewable energy is taking hold.

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

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

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

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

2. Americans support limits on greenhouse gas emissions. 

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

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

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

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

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

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

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

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

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

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

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

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

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

This post originally appeared on our EDF Voices blog.

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