Monthly Archives: February 2020

California-Quebec carbon auction kicks off 2020 with record allowance price

Keywords: Perazzo Meadows, Truckee, CA, California. Natural and working lands are part of California’s climate strategy. EDF/Mathew Grimm

The results of February’s joint California-Quebec auction are in, and 2020 is off to a strong start in the Western Climate Initiative. Fewer allowances were available in this auction than in the past, which could help explain the record high settlement price.

Highs and lows of the February 2020 auction:

  • All 57,090,077 current allowances sold. Notably, this amount is over 10 million fewer allowances than what was offered at the last auction in November 2019. It is also the lowest volume of offered allowances since the very first joint auction in November 2014.
  • Current allowances cleared at $17.87, which is $1.19 above the price floor of $16.68. This is 87 cents higher than the November 2019 clearing price of $17.00 and 42 cents higher than the previous record-high price of $17.45 from the May, 2019 auction.
  • 8,672,250 future vintage allowances were offered for sale, and all of them sold as well. With over 350,000 fewer future allowances than the November 2019 auction, this was the smallest volume of future allowances ever offered.
  • The future allowances cleared at $18.00, $1.32 above the floor. These allowances cannot be used for compliance until 2023.
  • The auction raised approximately $600 million USD for the Greenhouse Gas Reduction Fund, which California will use for programs that further reduce climate and local air pollution and advance environmental equity.
  • Quebec raised over $240 million CAD (approximately $185 million USD) to support climate action in the province.

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EPA data emphasizes danger of Trump Administration’s “air toxics loophole”

There’s been a lot of talk recently about the Trump administration undermining our protections against dangerous air pollution during the new coronavirus crisis. But they didn’t just start now.

Possible increase in total air toxic emissions from a subset of facilities eligible to reclassify under the air toxics loophole, aggregated at state and city level. In many areas, this loophole could lead to a quadrupling of air toxics from these facilities. Graphic by EDF.

Air pollution is linked to many of the underlying conditions that make some people especially vulnerable to the virus. For years, the administration has taken actions that would put more of that unhealthy pollution in our air – including through a proposed loophole to our safeguards against air pollution from large industrial sources. Data released by EPA itself shows how this loophole – which the Administration could finalize in the coming months – might expose millions of Americans to a huge increase in toxic air pollution.

Last July, EPA Administrator Andrew Wheeler proposed to create an air toxics loophole allowing large industrial facilities to increase their emissions of dangerous pollutants. When this proposed rule first emerged, EDF pointed out that EPA’s own data shows more than 3,900 large industrial facilities across the country are potentially eligible to take advantage of this loophole.

But additional data on just a subset of these facilities, released by EPA after the proposal came out, indicates that the proposal could lead to millions of pounds of additional toxic air pollution across 48 states – with many of these facilities located in areas where millions of Americans live and work.

The proposed air toxics loophole would undermine clean air safeguards for large industrial facilities across the country that are currently subject to stringent standards for the emission of mercury, benzene, and other hazardous air pollutants that may cause cancer and have other harmful health impacts. Under the proposal, many of these facilities would be eligible to “reclassify” themselves as smaller sources subject to weaker standards or no standards at all – and therefore could operate with weaker, or no, air pollution controls.

(The proposal would codify a four-page memo that Trump’s EPA issued in January 2018 – with no analysis of air pollution or health impacts. EDF, a coalition of environmental groups, and the State of California challenged that memo in court.  Although the D.C. Circuit rejected these challenges on procedural grounds, the court also found that the memo has no legal force or effect and cannot be relied upon by state permitting authorities or sources.)

In September, EDF and 34 public health, environmental justice, labor and environmental organizations submitted comments strongly opposing the proposed rule. EDF and four other environmental organizations also submitted detailed technical and legal comments emphasizing the danger the rule poses to public health.

Near the close of the comment period, EPA released additional data, including identifying information for specific facilities that could be eligible to reclassify under the proposed rule. EDF analyzed this additional data for clues about the devastating health and environmental impacts the air toxics loophole could have. In response to this additional data, EDF submitted supplemental comments to EPA.

Among other things, our analysis found:

  • EPA’s data covers more than 2,500 facilities that would be eligible to reclassify and increase their emission of dangerous pollutants. EPA identified more than 2,500 facilities that are currently subject to stringent Maximum Achievable Control Technology standards but under the loophole could avoid complying with those standards. This large number of facilities still represents only a subset of the nearly 4,000 facilities nationwide that EPA estimated would be potentially eligible to reclassify under the proposal.
  • A potential 480% increase in nationwide emissions of air toxics from these facilities. While it’s difficult to know if and by how much facilities would increase emissions if they were to take advantage of the proposed loophole, EDF estimates that total air toxics emissions could increase by about 49.2 million pounds per year if all the eligible facilities were to increase their emissions to the maximum extent permitted under the loophole. (The value was estimated by looking at the difference between current total air toxics emissions at these facilities and emissions if facilities increased total air toxics emissions to 75% of 25 tons per year – the threshold that would make these facilities major again – consistent with EPA’s approach.) Due to missing data for some of the facilities on the EPA list, however, this estimate is based on only 60% of the 2,500 facilities identified by EPA – so it could well underestimate the potential increase in emissions that would result from this proposal.

  • The proposed rule could expose millions of Americans in communities across the country to increases in toxic air pollution. Our analysis found facilities potentially eligible to use the loophole to increase their emissions of dangerous pollutants in 48 states. The greatest increases are concentrated in Texas, California, Michigan, and Louisiana. More than 3.7 million people live in the ten cities with the greatest possible increase in air toxics from this loophole.

After EPA issued the January 2018 memo that first opened the air toxics loophole, EDF issued a white paper finding that it could affect as many as 26 facilities in the Houston-Galveston region alone – and lead to hundreds of thousands of pounds of additional toxic pollution. Now, EPA’s own data reinforces the devastating impact of this loophole, from California to Michigan. EDF will continue to oppose this dangerous failure of EPA to uphold its responsibility to safeguard human health and the environment.

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During Black History Month, we celebrate 12 environmental leaders

Every day, African American civic leaders across the country are fighting for clean air, safe drinking water, a stable climate and a just world. In recognition of this year’s Black History Month, Environmental Defense Fund is honoring 12 individuals and celebrating their contributions.

The 12 leaders represent lawmakers and activists, professors and entrepreneurs, labor leaders and government officials. They join tens of thousands of others around the country and globe who are dedicated to improving the health of our families, the safety of our communities, and the stability of our climate. We invite you to join us and help lift up these important leaders during this month of celebration and reflection.

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