Climate 411

EPA’s Historic Proposal to Limit Carbon Pollution from Power Plants

By Fred Krupp / Published: March 27, 2012

Today we are making history. 

Today the U.S. Environmental Protection Agency (EPA) proposed the first-ever nationwide emission standards to limit dangerous carbon pollution from new coal- and gas-burning power plants. 

Today we take the first critically important step towards addressing the climate-destabilizing pollution emitted by power plants. 

Today we take a vital step towards protecting Americans’ health and strengthening our economy.

With these standards and EPA’s landmark clean car standards, we’re beginning to address the clear and present danger of carbon pollution from the two largest emission sources in our nation.

Power plants are responsible for 40 percent of the carbon pollution emitted in America. U.S. power plants are one of the largest sources of carbon pollution in the world. 

Power plants are responsible for 40% of carbon pollution emitted in the U.S.

We have the technology and the know-how to change this.

The carbon pollution emission standards proposed by EPA today would halve the carbon emissions from a new coal-fired power plant over its lifetime. 

These standards will help further the progress we are making towards a cleaner, more secure future for energy in America. We will use our nation’s electricity resources more efficiently to cut energy costs for families and businesses, mobilize Made in the USA technologies and fuels for cleaner energy generation, and ensure that America will lead the global race to a clean energy economy.

States, communities and businesses across our nation are already leading the way:

  • 29 states have adopted policies to expand reliance on cost-effective clean energy resources.
  • States including Washington, Montana, Oregon, Minnesota, New York and California have adopted (or are now putting in place) limits on dangerous carbon pollution from fossil-fueled power plants.
  • A McKinsey & Company report found that we could meet our nation’s growing electricity needs by using existing resources more wisely — and could cut energy costs for American families and businesses at the same time.
  • Innovative businesses like Solar City are creating new solutions and technologies to deliver cleaner, safer energy. Solar City, founded in 2006, is installing solar systems that lower utility bills with no upfront investment by the customer. Solar City has 20,000 projects in 14 states that are either completed or underway– including a one billion dollar project to put solar systems on military housing.
  • Hundreds of U.S. companies are capitalizing on new, multibillion-dollar market opportunities to make our electric grid as smart, flexible, and innovative as the internet — enabling a wholesale shirt to clean, community-based energy resources.

There are also fundamental shifts in the energy market that are driving a change in our electricity supply.

Much has been written about the structural market shift to natural gas, which has been enabled by new drilling technologies. Some have tried to deny this market shift and claim that EPA’s clean air protections are stopping new coal plants, but the truth is that basic economics — low natural gas prices— are driving these decisions.  But don’t take our word for it. Check out these quotes.

  • Jim Rogers is the CEO of Duke Energy, which provides electricity to the Carolinas, Indiana, Kentucky, and Ohio. He told the National Journal:

The new climate rule is in line with market forces anyway. We’re not going to build any coal plants in any event. You’re going to choose to build gas plants every time, regardless of what the rule is.

  • Thomas Fanning, CEO of Southern Company, recently told investors on an earnings call on January 25, 2012:

Four years ago…we were about 70% of our energy from coal and about, I don’t know, 16% from nuclear, about 12% from gas and the balance from hydro.  In the fourth quarter — this was really surprising to me, maybe not surprising considering how cheap gas is now – our energy production was 40% coal, 39% gas. … Now moving forward, given where gas prices are, we will continue to see much more gas production.

Inexpensive natural gas is the biggest threat to coal. Nothing else even comes close.

The immense natural gas resources recently made commercially accessible in the United States must be developed responsibly if we are to protect our water and ecosystems, and prevent wasteful leakage that will undermine the carbon pollution advantages of natural gas.  But America can meet this urgent challenge.

We also know how to harness the power of the wind, the sun, and geothermal resources. By making the energy foundation of our economy cleaner and more diverse, we will improve our national security, improve public health, and protect our climate.  Today we took a big step down that road.

The stakes are high.

Climate impacts are already affecting American communities, and scientists tell us that the impacts will intensify as atmospheric concentrations of heat-trapping greenhouse gas emissions rise.

The United States Global Change Research Program has determined that if carbon pollution emissions are not reduced, it is likely that American communities will experience increasingly severe impacts, including:

  • Rising levels of dangerous smog in cities — which will lead to an increased risk of respiratory infections, more asthma attacks, and more premature deaths
  • Increased risk of illness and death due to extreme heat
  • More intense hurricanes and storm surges
  • Increased frequency and severity of flooding
  • Increases in insect pests and in the prevalence of diseases transmitted by food, water and insects
  • Reduced precipitation and runoff in the arid West
  • Reduced crop yields and livestock productivity
  • More wildfires and increasingly frequent and severe droughts in some regions

I mentioned earlier that American states, communities and businesses are already taking steps to address these threats. Starting today, they don’t have to do it alone. With today’s announcement, our entire country will fight the widespread and varied threats we face from climate change.

I think EPA deserves a standing ovation for that.  

Please join me in supporting EPA’s efforts to protect our families, our communities, and our economy from these threats. 

The resistance to these standards by entrenched fossil fuel-dependent industries will likely be fierce, but together our voices can move these vitally important policies forward. 

Also posted in Clean Air Act, Energy, Greenhouse Gas Emissions, Health, News, Policy / Read 1 Response

Credible Sources Agree: EPA’s Rules will have Modest Economic Impacts

By Erin O'Sullivan / Published: February 22, 2012

We’ve posted so many stories like this that sometimes it’s hard to keep count, but here is yet another slew of reputable sources finding the EPA rules will not destroy the economy.  In fact, it may just be the boost it needs.  The Director of Regulatory Policy Research at the Economic Policy Institute just wrote a piece that sums it up nicely.  Here are some facts he rounded up on the air toxics rule:

  • Economic Policy Institute (EPI)- forecast to have a modest, positive net impact on overall employment—likely leading to the creation of 84,500 to 117,000 jobs between now and 2015
  • Congressional Research Service (CRS)- The benefits are also large, according to EPA, ranging from $37 billion to $90 billion annually.  The benefits mostly reflect the monetized value of avoiding up to 11,000 premature deaths annually.
  • Congressional Budget Office (CBO)- “On balance, CBO expects that delaying or eliminating those [EPA air] regulations regarding emissions would reduce investment and output during the next few years.”

Read the full article here: http://www.epi.org/blog/toxics-other-epa-rules-economic-effect/.

Also posted in Clean Air Act, Climate Change Legislation, Greenhouse Gas Emissions, News, What Others are Saying / Comments are closed

It’s Just Business (but FirstEnergy Blames Its Decisions on Clean Air Rules)

By Mark MacLeod / Published: February 10, 2012

Twice in the last two weeks, FirstEnergy has announced it will shut down old coal-fired power plants – then tried to blame those business decisions on the clean air rules that protect us all from toxic pollution.

First, at the end of January, First Energy announced it would retire six coal-fired power plants in Ohio, Pennsylvania and Maryland.

The company blamed those closures on new EPA regulations that will protect us from mercury, acid gases and other toxic air pollution – but FirstEnergy is going to retire the plants by September 1 of this year.

The compliance deadline for the new EPA rules isn’t for at least three years (2015 — with possible extensions to 2017). 

What’s more, FirstEnergy announced a decision to switch some of those six units from full-time to seasonal operation, and to temporarily mothball others, more than 16 months ago — before EPA even issued its proposal for the new rule.

Clearly, there’s more to the story than just EPA regulations.

Then, this week, First Energy announced it will close three more old coal plants in West Virginia. The company once again tried to pin the blame on EPA.

But the three plants in question were built between 1943 and 1960. They were built while Presidents Roosevelt, Truman and Eisenhower were in office. The oldest was built while we were still fighting World War II.

The plants are not closing just because of clean air regulations. They’re closing because they’re aging and inefficient, and because they are facing competition from natural gas.

Many factors contribute to the new utility investment cycle. They include:

  • Age – 59% of America’s coal fired power plants are over 40 years old, with many over 60 years old.

According to former Senate Majority Leader George Mitchell:

In 1970, the [Clean Air Act] required that new sources meet tight emissions standards. At that time, it was assumed that electrical utility units had an average lifetime of 30 years.

  • Competition from Natural Gas – with increasing natural gas supplies and lower prices, the market is shifting to more efficient combined cycle natural gas generators over old, inefficient coal plants.

One industry analyst told the Wall Street Journal:

Inexpensive natural gas is the biggest threat to coal. Nothing else even comes close.

  • Low utilization –the older units are often small, inefficient, and operated only part-time. From a business perspective, it is not cost effective to keep paying the fixed costs needed to maintain them for limited operation. Energy efficiency and demand response programs are far more efficient ways of meeting these energy needs.

In its press release announcing the closings of the three West Virginia plants, First Energy itself points out:

[T]hese plants served mostly as peaking facilities, generating, on average, less than 1 percent of the electricity produced by FirstEnergy over the past three years.

  • Health and the Environment – it is not surprising that these old, inefficient power plants are also disproportionately higher emitters of pollutants, and often have not had modern pollution control equipment installed.

We have information and graphics to illustrate this issue on our new fact sheet.

Business decisions in the utility sector are complex. Don’t let plant owners use our health protections as a scapegoat for their choice to retire old coal-fired power plants.

Also posted in Clean Air Act, Energy, News / Comments are closed

Clean Air Act Rules Will Save U.S. $82 Billion on Health Care

By Kusai Merchant / Published: November 17, 2011

The Clean Air Act was originally designed to save lives, protect public health and safeguard the environment – and it has been a clear success story on those fronts.

The Environmental Protection Agency’s (EPA) own analyses show that Clean Air Act rules yield hundreds of billions of dollars in economic benefits. These include the value of avoided premature mortality, negative health impacts, lost worker productivity due to illness, and environmental improvements such as increased visibility and agricultural productivity.

Now EDF and Trust for America’s Health (TFAH) have released a new report that takes a closer look at one segment of those benefits.

Our new analysis [PDF] finds that four major rules of the Clean Air Act will yield more than $82 billion in Medicare, Medicaid and other health care savings for America through 2021.

The report is called Saving Lives and Reducing Health Care Costs: How Clean Air Rules Benefit the Nation [PDF].

It looks at four new rules recently proposed or finalized by EPA:

Those four rules are expected to lower emissions rates of a number of air pollutants, including mercury, arsenic, dioxins, acid gases, smog, and soot.

Reducing levels of those dangerous substances will, in turn, reduce rates of premature mortality, chronic bronchitis, heart attacks, respiratory hospital admissions, and emergency room visits related to asthma.

That, in turn, will result in health care savings of $82 billion, including;

  • $44.6 billion in Medicare and federal-level health care savings
  • $2.8 billion in state-level Medicaid and other state and local savings
  • $8.3 billion in out-of-pocket individual savings
  • $24.7 billion in private insurance savings

Our report is one more piece of evidence that clean air rules are a good investment for America. We can save lives, protect public health, and save billions of taxpayer dollars that are currently being spent by programs like Medicare to treat pollution-related illnesses.

Our report also shows that the polluter-led attempts to roll back clean air rules would not reduce costs, but rather shift costs from polluters onto the American people.

Our new report also includes a second analysis of health care savings expected from the 1990 Clean Air Act Amendments, which finds implementation of these programs could yield over $612 billion between 2000 and 2020 in reduced Medicare, Medicaid, out-of-pocket and private insurance spending.

You can read the full report here [PDF].

Also posted in Clean Air Act, Health, News / Tagged | Comments are closed

More Evidence That the Benefits of EPA Rules Vastly Outweigh the Costs

By Susanne Brooks / Published: November 11, 2011

Yet another study is confirming what we’ve known for quite some time — the benefits of EPA’s clean air rules vastly outweigh the costs.

An analysis from the Economic Policy Institute (EPI) reinforces what other studies have told us time and time again: clean air is a great economic investment.

Unfortunately, that fact is often lost in the unfounded attacks on EPA that have gotten so much attention lately, in the media and even in Congress.

EPI’s analysis examines the combined effect of EPA rules that have already been finalized under the Obama Administration, as well as those currently in the proposal stage. It finds that:

The dollar value of the benefits of the major rules finalized or proposed by the EPA so far during the Obama administration exceeds the rules’ costs by an exceptionally wide margin. Health benefits in terms of lives saved and illnesses avoided will be enormous.

Of course, the most important benefits of clean air are those related to human health. Just three of these rules (Cross-State Air Pollution (CSAPR), Mercury and Air Toxics, and Boiler MACT) are estimated to save up to 57,500 lives a year.

Those lives saved, plus illnesses avoided and other environmental improvements translate to enormous economic benefits:

  • Setting aside CSAPR, the combined annual benefits from all final major rules exceed their costs by $10 billion to $95 billion a year. The estimated benefit-to-cost ratios for those final rules range from 2-to-1 to 20-to-1.
  • The net benefits from CSAPR range from $112 billion to $289 billion a year.
  • The combined annual benefits from three major proposed rules exceed their costs by $62 billion to $188 billion a year. The estimated benefit-to-cost ratios for those proposed rules range from 6-to-1 to 15-to-1

The results are even more striking in chart form:

Benefits and costs of EPA rules

(For more details on EPI’s analysis, see our new fact sheet.)

EPI has also shown, in a previous analysis, that EPA clean air rules can also have a positive impact on overall employment – including 28,000 to 158,000 jobs from the Mercury and Air Toxics rule for power plants alone.   

In fact, Josh Bivens of EPI recently testified before the U.S. House of Representatives on the Mercury and Air Toxics rule for power plants. He said:

Calls to delay implementation of the rule based on vague appeals to wider economic weakness have the case entirely backward – there is no better time than now, from a job-creation perspective, to move forward with these rules. 

It’s time for everyone – and especially Congress — to recognize that EPA rules are not only good for our health, but also our economy.

(For more on how cleaner air can save lives, improve health, and help our economy, see the following previous EDF blog posts:  “Thank You, EPA,” “The Clean Air Act Amendments: Good for Our Health AND Our Economy,” and “Newsflash: Clean Air Act saves lives, boosts GDP.”)

Also posted in Clean Air Act, News, Policy / Comments are closed

Broad Support for Cleaner Cars — Except from Some in Congress

By Peter Zalzal / Published: October 17, 2011

At a Congressional hearing last week, some members of Congress sought to undermine historic fuel economy and greenhouse gas standards that will save Americans money at the gas pump, help break our addiction to foreign oil, strengthen our economy, and reduce harmful pollution.   

 The shrill attacks on those historic standards were in sharp contrast to the broad support for cleaner cars, including support from the U.S. auto industry.

Automobile manufacturers have intervened to support the standards in the Federal Court of Appeals in Washington, D.C.  In recent filings in federal court, the Alliance of Automobile Manufacturers and the Association of Global Automakers have characterized these standards as:

valid, mandated by law, and non-controversial

(That’s from a D.C. Circuit Court filing from September 30, 2011 — Brief for Intervenors Alliance of Automobile Manufacturers and Association of Global Automakers, Coalition for Responsible Regulation v. EPA, Docket Number 10-1092) 

The State of Texas and its allies, along with an industry group representing coal mining interests, have sought to topple the landmark clean car standards.  The automakers — those directly regulated by the new standards –have forcefully countered that, if legal challenges are successful in overturning EPA’s clean car standards, it “would result in tremendous hardship to their companies” and that the associated costs would be “substantial.”

(Those two quotes above are both from court documents: the first is from the same brief I already cited, and the second is from a November 1, 2010 filing with the same D.C. Circuit Court: Intervenor Alliance for Automobile Manufacturers’ and Association of International Automobile Manufacturers’ Opposition to Motions for Stay, Coalition for Responsible Regulation v. EPA, Docket Number 10-1092).

The Environmental Protection Agency’s (EPA) standards govern greenhouse gas emissions, and not just fuel economy. That means EPA’s measures will create business opportunities throughout the vehicle supply chain.

Honeywell, a leading global manufacturer of air condition systems, filed an amicus brief in support of EPA’s standards, noting that :

technologies for reducing the United States’ carbon footprint have the potential to create the kind of ‘green jobs’ that are a priority for America in the 21st century

(That’s another quote from a D.C. Circuit court filing, this time from September 8,2011: Amicus Brief of Honeywell International, Inc., Coalition for Responsible Regulation v. EPA, Docket Number 10-1092). 

Honeywell recognized the possibility that innovative technologies spurred by these emission standards have the potential to spread throughout the global economy, creating business opportunities for companies at the forefront of this technological innovation.  The automobile industry developed the catalytic converter in response to clean air measures, and, through commonsense regulations like these vehicle fuel economy and greenhouse gas standards, the United States can remain at the forefront of technological innovation in the global automotive market.   

These benefits are echoed by members of the small business community — eventual purchasers of the new, more fuel efficient vehicles. 

In a press release, Small Business Majority founder and CEO John Arensmeyer emphasized the importance of strong emissions standards, stating that:

 [s]mall businesses understand that to survive in this tough economy they need to innovate, and that strong fuel efficiency standards will assist them in doing so by helping them save money in their own business and creating new market opportunities

In fact, in a recent survey, small business owners overwhelmingly supported stronger fuel-efficiency standards for cars and light trucks, with 87 percent stating that it was critical for the U.S. to take action now to increase fuel efficiency.

 The benefits to covered business are, of course, just a portion of the environmental and economic benefits associated with EPA’s clean vehicle rule:

  • More fuel efficient vehicles will save consumers money.  American families will save more than $3,000 on fuel costs over the lifetime of a model year 2016 vehicle, and, for families financing a vehicle, the savings will be immediate. 
  • The standards are projected to cut gasoline consumption by 75 billion gallons. 
  • The standards are also projected to cut harmful global warming pollution by over 20 percent, avoiding 960 million metric tons of CO2-equivalent

As a result of these myriad benefits, EPA’s vehicle standards have strong support from a diverse coalition, including auto manufacturers, states, environmental organizations, and veterans organizations.  Members of the veterans’ organization Operation Free testified at public hearings across the country about the vital importance of EPA’s clean vehicle rules in breaking our addiction to foreign oil. 

Despite these significant benefits and the strong, broad-based support for vehicle greenhouse gas emission standards, some in Congress are attempting to topple these common-sense rules on the theory that doing so would ease burdensome regulation.  Ironically, overturning these regulations would have precisely the opposite effect – constraining business innovation, burdening cash-strapped consumers, and harming the environment. That’s a result that would benefit no one.

 

Also posted in Cars and Pollution, Clean Air Act, Energy, Greenhouse Gas Emissions, Policy / Comments are closed