Climate 411

The Legal Case for the Clean Power Plan — in a Nutshell

By Tomas Carbonell / Published: September 26, 2016

(This post originally appeared on the American Constitution Society’s blog. EDF Attorney Ben Levitan co-authored it.)

In February, the Supreme Court stayed implementation of the Clean Power Plan, which provides the EPA with its best chance to cut future greenhouse gas emissions. On Tuesday, Sept. 27, the Court will hear oral arguments in the case of West Virginia, et. al. v. EPA. This case will determine whether it is within the EPA’s power to regulate air quality by setting strict standards for carbon emission. ACS invited experts to explore the issues that will be presented before the Court.

Oral argument on the Clean Power Plan — the nation’s first limits on emissions of harmful climate pollution from fossil fuel power plants — will take place in the U.S. Court of Appeals for the District of Columbia Circuit on September 27, 2016. As the court reviews the most significant step our country has taken to address the threat of climate change, the need for action to reduce climate-disrupting pollution has never been more urgent: Louisiana recently became the fifth state in the span of 12 months to suffer from a “1,000-year flood.” August 2016 marked the 16th consecutive month that set a global monthly high-temperature recorded. The Clean Power Plan, which will reduce carbon pollution from power plants to 32 percent below 2005 levels by 2030 and generate $54 billion per year in climate and health benefits, is essential to reduce these risks.

During oral argument, the court will hear powerful legal arguments for upholding the Clean Power Plan. The rule is supported by a broad and diverse coalition that includes eighteen states and sixty municipalities across the country; power companies that own and operate more than ten percent of the nation’s generating capacity; leading businesses like Apple, Google, Mars and IKEA; public health and environmental organizations; consumer and ratepayer advocates; faith organizations; and many others. Numerous legal experts — including drafters of the Clean Air Act, former EPA Administrators who served under Presidents Nixon, Reagan and Bush and former state energy and environmental officials — have also affirmed the strong legal basis for the Clean Power Plan. These supporters understand that the Clean Power Plan is both a crucial step to address climate change and fully consistent with the law.

The court will also hear from Clean Power Plan opponents, including the coal industry, coal-dependent power companies and their allies. Many of these opponents have a long record of opposing any type of limit on climate pollution and now they are directing their vast resources against the Clean Power Plan. Below, we explain why we are confident the Clean Power Plan will ultimately prevail against this barrage of legal attacks.

EPA has clear authority to regulate climate pollution from existing power plants.

As even opponents of the Clean Power Plan have conceded, EPA’s authority to regulate climate pollution from existing power plants is clear.

The Clean Power Plan is rooted in multiple Supreme Court decisions upholding EPA’s authority to regulate climate pollution under the Clean Air Act. See Massachusetts v. EPA, 549 U.S. 497 (2007); American Electric Power v. Connecticut, 564 U.S. 410 (2011) (“AEP”);Utility Air Regulatory Group v. EPA, 134 S. Ct. 2427 (2014). In AEP, many parties that currently oppose the Clean Power Plan argued — and the court expressly held — that section 111(d) of the Clean Air Act “speaks directly” to limits on climate pollution from existing power plants. This is precisely the section under which EPA issued the Clean Power Plan.

Now that Clean Power Plan opponents face the prospect of finally addressing their emissions, however, they sing a very different tune — implausibly disputing EPA’s clear authority to issue the rule. Peddling one dubious reading of a phrase in an amendment to the statute, they claim that EPA cannot regulate climate pollution from power plants under section 111(d) at all because the agency separately regulates completely different pollutants from power plants under section 112 of the Act – including mercury, arsenic, acid gases and other hazardous air pollution. This “pick your poison” theory is akin to exempting a restaurant from food handling requirements because it is already subject to the fire code. It defies not just common sense, but the purpose and structure of the Clean Air Act.

When Congress first enacted section 111(d) in 1970, it made unmistakably clear that this section plays a crucial “gap-filling” role — providing EPA with authority to protect the public from dangerous pollutants, such as greenhouse gases, that are not subject to national ambient air quality standards (sections 108-110) or hazardous air pollutant standards (section 112). Opponents argue that when Congress amended section 111(d) in 1990 as part of an overhaul of section 112, it implicitly abandoned this basic framework. Yet in the 1990 amendments, Congress expressly provided that no standard under section 112 shall be “interpreted, construed or applied to diminish or replace . . . [an] applicable requirement established pursuant to section [1]11.” 42 U.S.C. § 7412(d)(7). This language clearly undermines opponents’ theory that section 112 standards for power plants preclude EPA from regulating climate pollution from those sources under section 111(d).

Moreover, the opponents’ theory completely ignores a parallel amendment to section 111(d) that was passed by the Senate and signed into law in 1990.  Under the duly-enacted Senate language, even opponents acknowledge that EPA has authority to issue the Clean Power Plan. Opponents offer no reasonable justification for tossing aside this statutory text.

Lastly, there is no evidence in the extensive legislative history of the Clean Air Act Amendments that either chamber intended to gut the protections of section 111(d) in 1990 by exempting from that provision any source that is regulated for different pollutants under section 112. Congress would not have effectuated such a dramatic change in total silence, especially as part of legislation intended to revitalize and strengthen the Clean Air Act.

In prior litigation, current Clean Power Plan opponents acknowledged EPA’s authority to regulate existing power plants under section 111(d). Under administrations of both parties,EPA has consistently interpreted section 111(d) in a way that allows regulation of pollutants like carbon dioxide. The opponents’ cynical, opportunistic interpretation is just their latest move in a legalistic shell game to avoid pollution limits that mitigate climate change in any form.

EPA’s approach to establishing the emission reduction targets in the Clean Power Plan is consistent with the statute and reflects proven, highly cost-effective measures that the power sector has been using for decades.

Under section 111(d), EPA is required to issue emission guidelines that reflect the “best system of emission reduction” (“best system”) that has been “adequately demonstrated,” taking into account costs, energy requirements and other required factors. States must then set standards of performance for individual sources that meet or exceed the level of reductions specified in the emission guidelines.

To determine the best system for reducing climate pollution from power plants, EPA carefully examined the systems that power companies have actually been using to reduce climate pollution and other pollutants. It took into account that power plants are all part of an interconnected, centrally operated grid in which generation is constantly shifted among plants to balance supply and demand. And it considered that carbon dioxide is a global pollutant that has similar impacts regardless of where it is emitted. After weighing costs, feasibility, electric system reliability and other factors, EPA determined that the best system consists of the following proven, cost-effective measures: (1) improving the efficiency of coal-fired power plants; (2) shifting some generation from higher-emitting fossil fuel-fired power plants to lower-emitting natural gas plants; and (3) shifting some generation from fossil fuel-fired power plants to zero-emitting renewable generation.

As a recent analysis by the NYU Institute for Policy Integrity demonstrates, this systemclosely adheres to all of the criteria in section 111. First, it is clearly adequately demonstrated: as the major power companies supporting the Clean Power Plan argued in their brief, this system is “business-as-usual within the power sector” and is the same approach power companies themselves have successfully deployed to reduce climate pollution:

Electricity providers have been shifting generation among affected units and to zero-emitting sources as a means of achieving emission reductions for decades, as these strategies achieve greater reductions at lower cost than by relying on control technology alone…generation shifting is itself “business-as-usual” within the power sector and the ordinary means by which supply and demand are instantaneously matched throughout the interconnected electricity grid…EPA wascorrect in declining to establish the best system based on other facility-based control measures which, while technically feasible, are significantly more expensive than shifting generation to lower- and zero-emitting sources.

Power Company Intervenors Brief, at 2–3.

Not only is this system adequately demonstrated, it also best satisfies the cost and energy criteria of section 111.  Generation shifting allows for pollution reductions to be achieved economically, which is part of the reason that EPA expects the Clean Power Plan to result in lower household electric bills while fully preserving electric reliability. Even power companies that oppose the Clean Power Plan asked EPA to allow them to comply with the standards through generation shifting and through related techniques like averaging and trading of emissions among plants – a strong indication that generation shifting is the most cost-effective and feasible means for power plants to reduce climate pollution.

In accordance with another section 111 requirement, the standards are also eminently achievable. Largely thanks to generation shifting, carbon pollution from the power sector hasdecreased by more than 20 percent since 2005, meaning that we’re already about two-thirds of the way toward meeting the Clean Power Plan requirements for 2030. In fact, most states that are litigating against the Clean Power Plan are on track to meet its requirements.

EPA’s approach also carefully respects other statutory constraints under section 111. Among other things, the best system includes only measures that power plants themselves can implement; is limited to measures that reduce emissions from existing power plants themselves; and is expressed in the form of emission standards that can be applied to any individual power plant.

Contrary to opponents’ arguments, nothing in section 111 prohibits EPA from identifying generation shifting as part of the best system.  As Clean Air Act experts have pointed out, Congress used the broad term “best system of emission reduction” in section 111 to ensure that EPA would have the ability to set standards that are appropriate for the unique characteristics of each source category and pollutant.  If Congress wanted EPA to instead be constrained to control technologies that can be installed at individual sources, it could have and would have said so – just as it has done under other Clean Air Act provisions. See 42 U.S.C. § 169A (requiring sources to “procure, install and operate … the best available retrofit technology … for controlling emissions”).

EPA’s approach is consistent with a long history of Clean Air Act precedents across administrations of both parties.

Opponents of the Clean Power Plan nonetheless claim that EPA’s approach to the best system is unprecedented.  Yet as legal experts have pointed out, generation shifting is actually familiar territory under the Clean Air Act — and has formed the basis of multiple Clean Air Act standards.

For example, the Cross-State Air Pollution Rule — which was upheld by the Supreme Court in 2014 as a “permissible, workable and equitable” interpretation of the Clean Air Act — established state-wide limits on smog and soot-forming pollution from power plants that were explicitly premised on the potential to shift generation from dirtier power plants to cleaner ones. EPA v. EME Homer City Generation, 134 S. Ct. 1584 (2014).  EPA’s earlier program to address interstate pollution similarly established state-wide emission budgets for power plants that were based on the assumption that sources would engage in regional trading of emission credits — and similarly was upheld against numerous legal challenges. And as early as 1982, EPA set standards for lead in gasoline that some refiners could meet only by obtaining lead credits from other, cleaner refineries — an approach that the D.C. Circuit explicitly upheld. See Small Refiner Lead Phase-Down Task Force v. EPA, 705 F.2d 506, 534–35 (D.C. Cir. 1983).

Far from being unprecedented, EPA’s approach to establishing the emission reduction targets in the Clean Power Plan is a natural extension of successful, cost-effective approaches that have been used to set other Clean Air Act standards for years, under both Republican and Democratic administrations.

The Clean Power Plan respects the prerogatives of the states and reflects the best traditions of cooperative federalism.

The Clean Power Plan is also consistent with the time-tested “cooperative federalism” framework that is at the heart of section 111(d) and many other Clean Air Act programs.

Consistent with this framework, the Clean Power Plan establishes minimum emissions performance requirements — and gives states tremendous flexibility in deciding how to implement those requirements in ways that best meet local needs and priorities. Among other things, states have the flexibility to decide between “mass-based” targets (which limit total pollution per year from power plants) and “rate-based” targets (which limit the amount of pollution per unit of electricity generated); to adjust the pace of pollution reductions prior to 2030, within broad parameters; and to establish flexible, market-based programs that allow power companies to meet their emission standards through whatever measures are most cost-effective. States can also opt out of implementing the Clean Power Plan altogether, without any sanctions or penalties, in which case EPA will directly regulate emissions from power plants instead.

Opponents of the Clean Power Plan wrongly claim that the rule dictates energy policy choices to the states.  As the states across the country that are supporting the Clean Power Plan have affirmed, a state’s only obligation if the state chooses to implement the Clean Power Plan is to regulate climate pollution from power plants, the same way that states regulate pollution under many other Clean Air Act programs. Indeed, EPA has proposed optional “model” trading rules for the states that demonstrate the Clean Power Plan can be implemented through traditional regulatory frameworks that are virtually identical to the emissions trading programs that dozens of states have implemented under other Clean Air Act provisions.

As with these other programs, it will ultimately be up to power companies to decide how to meet these emission limitations at least cost.  The Clean Power Plan’s approach allows states to offer power companies wide latitude in doing so and does not limit power companies to using generation-shifting measures for compliance.  Power companies can reduce their emissions through on-site activities (such as natural gas co-firing or carbon capture), demand-side energy efficiency investments that reduce energy bills for families and many other measures.

States opposing the Clean Power Plan also make the baseless allegation that EPA is “commandeering” them to take certain actions. For instance, they note that a power plant’s strategy for complying with the rule will occasionally require review by the state public utility commission (“PUC”). These states ignore the fact that any emission standard affecting the power sector — regardless of how it is set or which pollutants it regulates — will affect which power plants are built and operated, thus triggering PUC review. PUC review is likewise carried out when utilities seek recovery for compliance cleanup costs or permission to build new generation in response to other long-standing air pollution control programs for smog, soot, mercury and other air pollutants. That’s why Congress directed and empowered EPA to consider “energy requirements” when determining the best system of emission reduction. That the Clean Power Plan could have a differential impact on electric generation options that emit different levels of pollution is not an aberration and certainly not a violation of the Constitution—it’s business as usual and exactly what Congress contemplated when it drafted the Clean Air Act.

**

The Clean Power Plan addresses one of the gravest public health and environmental threats we face today by building on the Clean Air Act’s successful history of reducing air pollution through flexible, cost-effective approaches. The rule rests on an extensive and solid factual record and adopts an approach mirroring that of regulations issued under administrations of both political parties. We are confident the Clean Power Plan will survive legal challenge and endure as a crucial element of our nation’s response to climate change.

Also posted in Clean Power Plan, EPA litgation, Policy / Read 1 Response

New Analysis: Clean Power Plan Compliance Within Reach for Litigating Companies

By Nicholas Bianco / Published: September 26, 2016

rp_scales_of_justice-300x280-300x280.png (EDF Attorneys Tomás Carbonell and Martha Roberts co-authored this post)

Tomorrow – Tuesday, September 27th – the U.S. Court of Appeals for the D.C. Circuit will hear argument about the historic Clean Power Plan.

The Clean Power Plan places the nation’s first limits on climate-disrupting pollution from the electricity sector, which is responsible for almost 40 percent of U.S. emissions of carbon dioxide.

Many utilities, power producers, and state regulators recognize the importance of addressing climate change – and support the Clean Power Plan. However, some in the electric industry have instead chosen to take a reactionary, obstructionist position against climate progress. They are participating in litigation against the Clean Power Plan. A wide array of prominent legal experts have concluded that these companies’ legal arguments are unsupported. Moreover, in many cases, opponents’ claims are even contrary to their own actions. (See Opening Brief of Petitioners on Procedural and Record-Based Issues, page 12, West Virginia v. EPA, No. 15-1363, D.C. Cir. Apr. 22, 2016)

EDF has just released a new analysis of this issue. It examines a diverse selection of power companies that are litigating against the Clean Power Plan, including Southern Company, American Electric Power, Big Rivers Electric Corporation, and Tri-State Generation & Transmission.

We find that:

  • Overall, power sector emissions of climate pollution are already 21 percent below 2005 levels. As a result, the sector is already two-thirds of the way towards meeting the 2030 emissions reduction requirements of the Clean Power Plan.
  • Even though these particular companies are opposing the Clean Power Plan in court, they are already using a variety of approaches to drive significant cost-effective reductions in climate pollution from their existing fossil-fuel powered units, thanks in large part to favorable economics for lower and zero-carbon generation.
  • These are the same practical, cost-effective methods that EPA identified as the “best system” of emission reduction for climate pollution from power plants, and that formed the basis for the emission limits in the Clean Power Plan.
  • With these investment decisions, power companies are well positioned to comply with the Clean Power Plan, even though they are making claims to the contrary in court.
  • These companies’ own actions affirm the reasonableness of the Clean Power Plan targets as well as EPA’s approach in setting the standard, even though the companies are repeatedly claiming otherwise in court.

This is not the first time some of these companies have advanced deeply flawed “sky is falling” claims about clean air safeguards. Back in the 1970’s, AEP published a series of Washington Post newspaper ads claiming:

There is no way on God’s green earth that the present sulfur-dioxide emissions standards can be met. (Washington Post, April 30, 1974, AEP Display Ad 13)

Not surprisingly, coal plants across the nation are routinely meeting sulfur dioxide limits far more stringent and at very low cost.

This was also true in 1990, when AEP told the Boston Globe that bipartisan solutions to address acid rain could lead to:

the potential destruction of the Midwest economy.

Of course, they then proceeded, along with the rest of the industry, to go out and comply at a small fraction of the costs predicted by EPA. This same story is playing out again today.

The Clean Air Act has achieved deep reductions in pollution and delivered benefits exceeding the costs by 30 to 1 – all while our economy has prospered, and all at a small fraction of the costs predicted by obstructionists in the power industry.

The Clean Power Plan is no different. As our analysis shows, day by day it becomes clearer that the reductions it requires are wholly consistent with driving trends in the industry, and that the benefits will far exceed any cost of compliance.

The full analysis is available here.

Also posted in Clean Power Plan, Economics, EPA litgation, Greenhouse Gas Emissions, Policy, Setting the Facts Straight / Comments are closed

The Clean Power Plan: A Public Health Imperative

By Martha Roberts / Published: September 23, 2016
By Mezbuz via Wikimedia Commons

By Mezbuz via Wikimedia Commons

(EDF Attorney Ben Levitan co-authored this post)

The Clean Power Plan – our nation’s first-ever standards to limit dangerous carbon pollution from power plants – will help us address the urgent threat of climate change and move toward a clean energy future. It also offers important public health benefits.

Once fully implemented, the Clean Power Plan will reduce enough emissions of soot and smog-forming pollution to prevent up to 90,000 asthma attacks, 1,700 heart attacks, and 3,600 premature deaths — every year.

That’s in addition to the Clean Power Plan’s tremendous contribution to fighting climate change. Climate change itself leads to harmful health impacts, including heat-related illnesses and deaths, longer allergy seasons, more asthma attacks from worse air quality, and more risk from vector-borne diseases like Zika, Lyme disease and West Nile virus.

Just this week, a group of 1,300 health and medical experts from all 50 states issued a Health Professionals Declaration on Climate Change calling for swift action on climate change to protect public health:

We know that the health of every American is threatened by climate change. This statement articulates our agreement on the urgency of addressing climate change to protect human health … Delay only undermines our success, and the longer we wait, the more lives will be affected.

The Clean Power Plan will reduce carbon pollution from existing power plants by 32 percent below 2005 levels, making it the most important step our nation has taken so far to combat climate change. So it’s no surprise that the public health community has joined the broad and diverse coalition supporting the Clean Power Plan in the U.S. Court of Appeals for the D.C. Circuit.

In a powerful amicus, or “friend of the court,” brief, eight leading health associations explained the public health benefits at stake in this litigation. The brief — from the American Medical Association, the American Academy of Pediatrics, and others — underscores that defending the Clean Power Plan is critical to the health of our families and communities.

Public Health Benefits of the Clean Power Plan

In the brief, medical experts describe many of the health hazards wrought by climate change —hazards that the Clean Power Plan will have a crucial role in mitigating:

  • “Direct impacts from the changing climate include heat-related illness, declines in air quality, and increased respiratory and cardiovascular illness… Physicians in the United States are already observing the adverse human health effects of climate change.” (Health Associations Brief at page 2)
  • “Children younger than five, adults older than sixty-five, low-income individuals and communities of color are most vulnerable to the adverse health impacts of climate change given their reduced resilience to health hazards. These populations are at greatest risk of developing both chronic and acute illnesses from climate-related environmental factors.” (Health Associations Brief at pages 17 and 18)
  • “[W]arming trends allow for increases in vectors carrying harmful diseases. Higher temperatures expand the range of environments suitable to disease-carrying species, and contribute to a rise in extreme weather events that produce conditions conducive to clusters of water-, mosquito- and rodent-borne diseases.” (Health Associations Brief at page 9)
  • “There is a well-documented connection between rising temperatures and death, especially among the elderly and people with chronic disease. As one dramatic example, the 2003 European heat wave is estimated to have led to approximately 50,000 deaths in August alone… Similar impacts have been seen in the United States. In July 1995, Chicago experienced a heat wave that resulted in more than 600 excess deaths, 3,300 excess emergency department visits, and a significant increase in intensive care unit admissions for heat stroke. And a 2006 California heat wave was associated with over 16,000 excess visits to the emergency room and 1,182 excess hospitalizations.” (Health Associations Brief at pages 6 and 7)
  • “Failure to uphold the Clean Power Plan would undermine EPA’s ability to carry out its legal obligation to regulate carbon emissions that endanger human health, and would negatively impact the health of current and future generations of Americans.” (Health Associations Brief at page 3)

Here’s the full list of signatories to the brief:

  • American Academy of Pediatrics
  • American Medical Association
  • American Thoracic Society
  • National Medical Association
  • American College of Preventive Medicine
  • American College of Occupational and Environmental Medicine
  • National Association for Medical Direction of Respiratory Care
  • American Public Health Association

Health Workers Affirm the Public Health Imperative for the Clean Power Plan

The brief from these major health associations was echoed in other filings by some of our nation’s largest associations of health care workers.

In a declaration, Fernando Losada of National Nurses United — America’s largest federation of registered nurses — noted that National Nurses United members experience:

direct exposure to the harmful impacts of climate change and air pollution on their patients and community health in general. (Losada declaration, paragraph 3)

The declaration also highlights the particular risks faced by health care professionals:

increased rates of infectious disease are emerging due to the impact of global warming on vector ecology and water quality. Any increased incidence of infectious disease in the U.S. poses a risk for all Americans but particularly for our members. (Losada declaration, paragraph 5)

Service Employees International Union (SEIU) — the largest health care union in the United States —also filed an amicus brief that detailed the manifest public health risks from climate change.

The SEIU brief highlighted in particular that the Clean Power Plan:

will produce substantial climate and health-related benefits in low-income communities and in communities of color. (SEIU brief, page 15)

Broad, Diverse Coalition of Clean Power Plan Defenders

Spanning a wide spectrum of medical expertise, all of these health experts agree that upholding the Clean Power Plan is a public health imperative.

The health experts join a vibrant coalition of Clean Power Plan supporters that includes 18 states, sixty cities, leading business innovators (including Google, Apple, Amazon, and Microsoft), leading legal and technical experts, major consumer protection and low-income ratepayer organizations (including Consumers Union and Public Citizen), faith groups, more than 200 current and former members of Congress, and many others. On EDF’s website, you can read the legal briefs that each of those groups has filed in defense of the Clean Power Plan.

As leading health experts and other supporters have affirmed, the Clean Power Plan is an essential step to protect our children from illness and leave a safer, healthier world for future generations.

 

 

 

 

 

 

 

 

Also posted in Clean Power Plan, EPA litgation, Health, Partners for Change, Policy / Comments are closed

The Clean Power Plan: Driving Down Electricity Bills for Families

By Martha Roberts / Published: September 22, 2016

rp_dollar-499481_1920-1-1024x724.jpg(EDF Fellow Will Bittinger co-authored this post)

Here’s one fact you may not know about the Clean Power Plan – it can save you money.

The Clean Power Plan puts the first-ever nationwide limits on carbon pollution from power plants. It’s a crucial step in our efforts to combat climate chaos and protect public health. But it can also help American families save money.

EPA’s analysis of the Clean Power Plan concluded that once the rule is fully implemented in 2030, it will lower the average consumer bill by about seven percent.

The Consumers Union, Public Citizen, and the Illinois Citizens Utility Board – all groups that serve and protect electricity customers – have confirmed these benefits. In a compelling amicus, or “friend of the court,” brief, these three leading consumer advocacy groups highlighted the host of empirical evidence showing that the Clean Power Plan can drive electricity costs down and deliver substantial benefits to consumers, especially those in low-income communities.

According to their brief:

Independent analyses confirm [EPA’s] projection: initiatives taken to meet the rule’s requirements could, by 2030, reduce household electric bills by as much as 20 percent across the board. (Ratepayers Brief at page 8).

Where would the savings come from? The Clean Power Plan will spur vibrant investment in energy efficiency — and by saving energy we can cut both carbon pollution and costs.

As the consumer advocacy organizations note:

[The] Clean Power Plan leverages energy-efficiency opportunities to achieve greenhouse-gas emission reductions in a way that directly benefits consumers, low-income households, and other electricity ratepayers. (Ratepayers Brief at page 2).

In particular, low income communities have a robust opportunity to benefit from the Clean Power Plan’s support for energy efficiency.

One important element of EPA’s plan, the recently proposed Clean Energy Incentive Program:

explicitly focuses on ensuring that the power program’s benefits reach low-income Americans … [t]he American Council for an Energy-Efficient Economy has calculated that this program could represent $1.2 billion worth of investment in projects in low-income communities… Such incentives would help encourage cost-effective energy-efficiency upgrades for multifamily rental housing – where many low-income Americans live. (Ratepayers Brief at page 9 and 10).

Because low-income households pay a disproportionate share of their income on energy, energy efficiency programs funded by this program will have a significant benefit in lowering energy bills for these families.

The consumer advocacy organizations also refute any hyperbolic, wrong-headed claims that the Clean Power Plan will cause increased electricity costs. Claims like these – which have been advanced by major polluters and their allies who are fighting the Clean Power Plan – wrongly assert that energy efficiency and low cost clean energy opportunities will cause economic disaster.

Local community leaders have challenged these misrepresentation. Rev. Dr. Lester A. McCorn, senior pastor at the Pennsylvania Avenue AME Zion Church in Baltimore, called them a “smear campaign” designed to fight lifesaving standards and protect polluter profits.

These kinds of “sky is falling” claims are, sadly, a familiar scheme to prevent climate progress. When we set the schemes aside, we can see that we have a chance to seize enormous potential by implementing the Clean Power Plan and supporting America’s transition to a low-cost clean energy economy.

In the end:

Refusing to shift America’s energy infrastructure towards cleaner, more affordable energy would only leave low-income Americans with higher costs over time – for electricity and for preventable adverse health effects. (Ratepayers Brief at pages 14 and 15).

Also posted in Clean Power Plan, Economics, EPA litgation, Partners for Change, Policy / Comments are closed

Compliance with Clean Power Plan is Within Reach — Even for States Opposing It

By Nicholas Bianco / Published: September 21, 2016

(Tomás Carbonell, EDF Director of Regulatory Policy and Senior Attorney, and Diane Munns, EDF Senior Director of External Affairs, co-authored this post)

In one week – on Tuesday, September 27th – the U.S. Court of Appeals for the D.C. Circuit will hear oral argument in legal challenges brought by the coal industry and its allies against the Clean Power Plan.

The Clean Power Plan establishes the nation’s first ever climate pollution standards for the power sector, which is the largest source of climate pollution in the United States, and one of the largest sources in the world. (According to the U.S. Environmental Protection Agency, the next largest sector – light-duty vehicles, which includes passenger cars and most pickup trucks – accounted for roughly one-half the emissions of the power sector in 2014.)  As a result, the Clean Power Plan is one of the most important measures the United States has ever taken to combat the threat of climate change.

The Clean Power Plan is expected to reduce carbon dioxide emissions from the power sector by 32 percent below 2005 levels by 2030, yielding up to $54 billion in annual climate and health benefits and saving up to 3,600 lives each year.

The good news is that the United States’ power sector is already rapidly reducing emissions by transitioning toward low cost, lower carbon sources of generation. In 2015, emissions were already 21 percent below 2005 levels. That’s almost two-thirds of the way toward the 2030 emission reduction target reflected in the Clean Power Plan. The rate of emission reduction we have seen over the last decade far exceeds the rate that would be required to achieve the Clean Power Plan targets by 2030. Meanwhile, analysts are projecting that the combination of falling prices for renewable energy and the extension of federal tax credits will drive a significant surge in new renewable development (see here, here, and here for just a few examples).

Even though powerful market forces are already driving dramatic progress in reducing climate pollution, opponents of the Clean Power Plan have argued in court that the plan represents a dramatic “restructuring of nearly every State’s electric grid” and have also argued that compliance with the Clean Power Plan’s emission reduction goals is “impossible.”  (See Opening Brief of Petitioners on Core Legal Issues, page 6, West Virginia v. EPA, No. 15-1363, D.C. Cir. Apr. 22, 2016, and Opening Brief of Petitioners on Procedural and Record-Based Issues, page 12, West Virginia v. EPA, No. 15-1363, D.C. Cir. Apr. 22, 2016)

To evaluate these claims, EDF commissioned an analysis to examine how far measures already planned by power companies could go towards helping achieve the Clean Power Plan emission targets in the states that have challenged these standards.

What the analysis found stands in stark contrast to allegations by the litigating states and power companies.

About the Analysis

M.J. Bradley and Associates conducted the analysis using its publicly available Clean Power Plan Compliance Tool. The analysis drew on multiple, widely-used sources of industry-provided information on investments in new generation and planned retirements, and was based on policy scenarios and assumptions provided by EDF. The analysis is cited in a court declaration filed by EDF clean energy expert Diane Munns, and was recently featured in a Reuters article titled “Most states on track to meet emissions targets they call burden.”

Finding #1: All 27 litigating states can comply with the Clean Power Plan by leveraging planned investments coupled with flexible compliance programs

The analysis found that all 27 states opposing the Clean Power Plan could come into compliance with their emission reduction targets all the way through 2030, without making any additional investments beyond those that are already planned by power companies or required under existing state law. All state regulators need to do is take advantage of the inherent flexibility provided by the Clean Power Plan and adopt flexible compliance programs that allow power plants to fully leverage the benefits of planned investments – such as by allowing companies to average across their sources or trade compliance credits across states lines.

As Clean Air Act experts have noted, this compliance approach is familiar territory under our nation’s clean air laws. The Supreme Court recently upheld this approach in reviewing EPA’s Cross State Air Pollution Rule, and many of the litigating states have already successfully adopted these types of emissions trading programs to achieve compliance with limits on soot and smog pollution from power plants.

Finding #2:  Even if they do not take full advantage of these program flexibilities, the vast majority of litigating states can comply with Clean Power Plan goals through 2030 through planned investments alone

The analysis also considered very conservative scenarios where states do not take advantage of these program flexibilities, and each state comes into compliance solely through in-state investments and existing state policies – without engaging in trading of compliance instruments with any other states. Such constraints seem unlikely, given that most of the litigating states are already taking advantage of interstate trading in other Clean Air Act programs for the power sector and requested that interstate trading be an option under the Clean Power Plan.

Even in these very conservative scenarios, as many as 21 of the 27 states challenging the Clean Power Plan could fully achieve their emission targets through the first three-year compliance period of the Clean Power Plan (the period from 2022-2024) by relying exclusively on existing generation, investments already planned within each state, and implementation of respective existing state policies. The study also found that as many as 18 of these states could comply all the way through 2030 as a result of these measures. Also, since this analysis was completed, Arkansas announced that it was already in compliance with the 2030 emissions targets. This suggests that at least 22 of the states could comply through 2024 as a result of planned investments, and that 19 states could comply through 2030.

For the minority of states that were not found to meet their Clean Power Plan emission reduction targets through planned investments alone, this analysis indicates that very modest additional measures would be sufficient to close the gap. For example, it finds that all of the states could come into compliance in the first three-year compliance period merely by deploying cost-effective energy efficiency measures and developing new clean resources at a rate comparable to the average of their neighboring states.

mjb-graphic

 

Finding #3:  The Clean Power Plan has an essential role to play in reducing emissions from the power sector

While the analysis shows that these states are well positioned for compliance, it also reaffirms the importance of the Clean Power Plan in delivering the needed reductions in climate pollution over the long term.

This is because building new clean generation alone is not enough – it is also vital to ensure that the benefits of these investments are fully realized. By establishing nationwide emission limits through 2030, the Clean Power Plan will provide clear market and regulatory signals to power companies that encourage them to cost-effectively deploy their generation in a manner that reduces climate pollution. However, any delay or disruption in the implementation of the Clean Power Plan would interrupt those signals and put these eminently achievable reductions in climate pollution at risk.

Power companies, states, and others agree: compliance is readily achievable

We aren’t the only ones who have concluded that the Clean Power Plan targets are eminently reasonable. Our results are consistent with recent, independent economic analyses by the Nicholas Institute, M.J. Bradley & Associates, the Bipartisan Policy Center, and others. All of these analyses predict very low compliance costs because favorable economics for lower and zero-carbon sources of electricity are expected to continue driving sustained investment in these resources even in the absence of the Clean Power Plan. As a result, states around the country are well positioned for compliance.

Notably, states and power companies from across the country have themselves affirmed this very point:

  • In Georgia, an official at the state Public Service Commission, Sheree Kernizan, affirmed that: “We were already on track under the proposed rules to kind of meet the goals anyway – without doing anything – and this was prior to the 2016 [integrated resource plan] that was filed this year …. and [Georgia Power Company’s] talking about adding more renewables, continuing the energy efficiency programs that have been in place.”
  • The state of Arkansas announced in May that it has already met the 2030 emission targets in the standards by moving to cleaner and more affordable sources of energy.
  • The Michigan Department of Environmental Quality says the state can comply with the federal Clean Power Plan to reduce carbon emissions without changing anything until at least 2025.
  • Oklahoma’s two largest utilities, PSO and OG&E, both say they’re on a path to compliance with the Clean Power Plan by the 2030 deadline.
  • Analysis conducted by Pace Global for the Arizona Utilities Group shows that the state can comply with the Clean Power Plan based on investments already planned under business-as-usual. (The Arizona Utilities Group consists of Arizona Electric Power Cooperative, Inc., Arizona Public Service Company, Salt River Project Agricultural Improvement and Power District, Tucson Electric Power Company, and UniSource Energy Services.)

(You can find even more analyses and statements about how states and power companies are well positioned to achieve Clean Power Plan targets here.) 

At this point it is abundantly clear that America is rapidly transitioning to a low carbon economy – yielding enormous benefits for climate and public health, and opening new economic opportunities in communities across the nation. With the price of low-carbon resources at all-time lows, the market is already strongly driving this transition. The Clean Power Plan is a common sense framework that can provide an essential role in harnessing this momentum and providing a clear, certain path forward to protect against climate change — while at the same time giving states the ability to achieve emission reductions in ways that maximize local public health benefits for communities affected by air pollution.

Litigating states and power companies should stop wasting money fighting against the protection of public health and the environment, and instead focus more fully on how to seize the opportunities of a clean energy future and maximize benefits for communities and consumers.

 

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

By Martha Roberts / Published: September 14, 2016

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(EDF Fellow Charlie Jiang co-authored this post)

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

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

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

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

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

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

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

Here are some examples of continued state progress:

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