Climate 411

Capping Pollution from Coast to Coast

By Susanne Brooks / Published: February 15, 2013

(Originally posted earlier today on EDF’s Market Forces blog)

As the second auction in California’s landmark cap and trade program approaches, a coalition of states on the opposite side of the country – that have been cost-effectively reducing their carbon pollution while saving their consumers money – announced plans to strengthen their emission reduction goals.  Last week, the Regional Greenhouse Gas Initiative (RGGI) – the nation’s first cap and trade program which sets a cap on carbon dioxide pollution from the electric power sector in 9 Northeastern states (Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont) – released an updated Model Rule containing a number of improvements to the program, primarily a significantly lower (by 45%) overall cap, realigning it with current emissions levels.

Since the program took effect in 2009, emission reductions in the RGGI region have occurred faster and at lower cost than originally expected.  This has primarily been the result of increased electric generation from natural gas and renewables which have displaced more carbon-intensive sources like coal and oil, as well as investments in energy efficiency that lower overall electricity demand.  These reductions have been accompanied by lower electricity prices in the region (down 10% since the program began) and significant economic benefits:  a study from the Analysis Group estimated that electric consumers would save $1.1 billion on their bills over 10 years from the energy efficiency improvements funded by allowance revenue, and further, that these savings would generate over $1.6 billion in economic benefits for the region.

The new lower cap allows RGGI to secure the reductions already achieved, and push forward towards more ambitious pollution reduction goals.  The changes to the program are the result of a transparent and comprehensive program review process set in motion through RGGI’s original Memorandum of Understanding – a mechanism that is successfully fulfilling its original intention by allowing the states to evaluate results and make critical improvements.

While the changes will go a long way to fortify the program, there is room in the future for the RGGI states to look to California’s strong program design for additional enhancements.  For example, RGGI’s updated Model Rule creates a Cost Containment Reserve (CCR) – a fixed quantity of allowances which are made available for sale if allowance prices exceed predefined “trigger prices”.  A CCR is a smart design feature which provides additional flexibility and cost containment – however, RGGI’s CCR allowances are designed to be additional to the cap, rather than carved out from underneath it as in CA’s program (ensuring the overall emission reduction goals will be met).  California’s program has displayed enormous success already, with a strong showing in their first auction.

In the meantime, the RGGI states should be commended for their success thus far, and for their renewed leadership as they take important steps to strengthen the program.  These states have achieved significant reductions in emissions of heat-trapping pollutants at lower costs than originally projected, all while saving their citizens money and stimulating their economies, transitioning their power sector towards cleaner, safer generation sources, and laying a strong foundation for compliance with the Carbon Pollution Standards for power plants being developed under the Clean Air Act.  Such impressive achievements provide a powerful, concrete example of how to tackle harmful carbon pollution and capture the important co-benefits of doing so.

The bottom line is that cap and trade is alive and well on both coasts as the states continue to lead the charge on tackling climate change in the U.S. while delivering clear economic benefits.

Also posted in Economics, Policy / Comments are closed

New Report: Ambition Is the Key to Reaching Climate Goals

By Fred Krupp / Published: February 6, 2013

Ambition matters.

We all know this, because America is a nation of strivers — innovative, creative people who understand that ambition and drive can make the difference between success and failure. It’s true in business. It’s true in life.  And it’s true in environmental protection.

Today the World Resources Institute (WRI) released a report that shows how crucial national ambition is when it comes to charting an effective pathway for climate action.

The report — Can the U.S. Get There From Here? — is a searching examination of the potential for reducing carbon pollution under existing federal laws and with state leadership.

It finds that, with ambitious action by the federal government and the states to curb carbon pollution, the United States can cut its emissions to 17 percent below 2005 levels by 2020.

That hopeful news comes not a moment too soon, because the bad news about climate change is all around us.

The National Oceanic and Atmospheric Administration recently announced that 2012 was the tenth warmest year on record for the planet, continuing the trend of rising global temperatures in which each decade has been hotter than the one before.

In the continental United States, 2012 was the warmest year on record, with the second most extreme weather — record-breaking high temperatures, the devastation of Hurricane Sandy, widespread drought, rising corn prices, and grim wildfires. Eleven weather disasters in 2012 carried a greater than $1 billion price tag, with the recovery efforts from Hurricane Sandy expected to top $60 billion. And while our cities are flooding, crops are dying, and forests are burning, Congress is fiddling.

So let’s look more closely at WRI’s hopeful news about what we can achieve under existing laws.

The new report finds that progress in four key areas will be essential:

  1. Implementing rigorous federal carbon pollution standards for new and existing power plants, transitioning the power sector towards a cleaner, more modern, and more resilient electricity generation system
  2. Eliminating use and emissions of hydrofluorocarbons, extremely potent heat-trapping gases
  3. Developing comprehensive federal emission standards to stop the methane leaks in oil and gas extraction and transport processes
  4. Improving the energy efficiency of our economy

Leadership by states to cut emissions and invest in clean energy and efficiency will be needed to compliment and amplify action at the federal level.

The analysis also demonstrates that no matter how rigorous our nation is in carrying out existing laws to cut carbon pollution, we will need new legislation to achieve the deeper emission reductions climate science demands by mid-century.

In the meantime, there is much that we can do. Now. And with these actions, we can start to transform our aging energy infrastructure and forge a prosperous clean energy, low-carbon future.

This is my favorite sentence of the report:

[T]he single most important factor influencing emissions reductions is political and policy ambition.

Ambition matters. So let’s be ambitious here, where it matters so very much to our future, our children’s futures, and our planet’s future.

Also posted in Partners for Change, Policy, What Others are Saying / Read 1 Response

Automakers Defend Historic Clean Cars Standards

By Graham McCahan / Published: January 15, 2013

The world’s biggest automakers are standing up in court to defend America’s historic new fuel economy and greenhouse gas emissions standards.

The Obama Administration announced the clean cars standards last August.

The new standards will double fleet-wide fuel economy by 2025, to 54.5 miles per gallon.

They’ll also:

  • Save families more than $8,000 at the gas pump over the lives of their new cars or trucks
  • Dramatically reduce our nation’s dependence on oil
  • Cut greenhouse gases by six billion tons

By 2025, the standards are projected to reduce U.S. oil consumption by more than two million barrels per day.  Combined with earlier standards for large diesel trucks, the daily oil savings in 2025 will be substantially more than the amount of oil imported each day from Iraq, Kuwait, and Saudi Arabia in 2011.

The six billion tons of greenhouse gas reductions are more than the total of U.S. carbon dioxide emissions in 2010.

(You can read more about the standards, and their benefits on our website)

These historic standards are supported by consumers, the United Auto Workers, national security experts, U.S. automakers, many U.S. states, the Union of Concerned Scientists, and environmental organizations.

Unfortunately, there are some groups that don’t support them.

Industry groups — including the Utility Air Regulatory Group, American Petroleum Institute, National Association of Manufacturers, and National Oilseed Processors Association — have filed legal challenges in the U.S. Court of Appeals for the District of Columbia.

EDF will defend these historic standards in court. We and our allies have already moved to intervene in support of them.

Now, both U.S. and foreign automakers have also stepped in to defend the landmark standards.

Yesterday, the Alliance of Automobile Manufacturers filed a motion to intervene in support of the standards.

Their motion says that the court challenges:

jeopardize the further development and continuation of an integrated national approach to increasing automobile fuel economy and thus reducing carbon emissions.

Just three days earlier, the Association of Global Automakers also filed a motion to intervene in support of the standards.

Members of the two automaker groups include Chrysler, Ford, General Motors, Honda, Toyota, Volkswagen, and Volvo.

It’s a great reminder that when we work together, America can achieve lasting gains for our environment and our economy.

 

Also posted in Cars and Pollution, News / Read 2 Responses

EDF’s Business-Friendly Suggestions for Fighting Climate Change

By Sharyn Stein / Published: November 12, 2012

We’ve been hearing the same question a lot lately – what should President Obama do in his second term to fight climate change?  

In today’s online Harvard Business Review, EDF’s Eric Pooley has some thoughts on that subject. He’s laid out a five-point plan to help us address climate change.

Those points range:

[F]rom no-brainer ideas almost everyone can agree on to ambitious items that would require Congressional action

And they all have one thing in common – they are business friendly.

As Eric puts it: 

It is worth remembering that strong business support helped secure passage of the House climate bill in 2009, and though that effort failed in the Senate, no serious legislation can move without the backing of men and women in the engine room of the American economy. To be politically viable, climate solutions must be economically sustainable.

Here’s the (very) short version of Eric’s plan:

  • Feed the conversation
  • Reduce climate accelerants
  • Start a clean energy race
  • Use the Clean Air Act
  • Put a price on carbon

If you’d like to read the whole plan, you can find it here: A Business-Friendly Climate Agenda for Obama’s Second Term

Also posted in Climate Change Legislation, Economics, Extreme Weather, News, Policy / Comments are closed

Growing Jobs, One Auto Supplier at a Time

By Jackie Roberts / Published: September 7, 2012

Last week, the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Transportation (DOT) jointly announced new clean car standards that will benefit America’s economy and our environment.

The standards mean that by 2025 new cars on U.S. roads will average an unprecedented 54.5 miles per gallon.

Those same clean cars will also reduce the levels of dangerous climate pollution from auto emissions.  

Businesses in the auto supply chain are applauding.  According to Fred Keller, Chairman and CEO of Cascade Engineering: 

The new fuel economy requirements are an example of good regulation developed in the right way. By working with both industry and environmental interests, regulators were able to come up with standards that provide the right incentives and get the right results without putting an undue burden on industry. What’s more, the resulting incentives are positive, as they will encourage manufacturers to develop lighter-weight vehicles and reduce demand for fossil fuels. I recognize it is not always easy to develop regulation in this way, but this should serve as a model for how to do it effectively in the future.

Cascade Engineering has a growing automotive solutions group that focuses on acoustic insulators, chassis & powertrain components, and interior/exterior trim.  

Other companies are praising the new standards as well.

Nam Thai-Tang, Co-Founder and Executive Vice President of ALTe, said this:

ALTe applauds any effort to drive towards greater fuel efficiency in the transportation industry. We are encouraged by the new standards and expect that they will help companies like ours that are developing advance hybrid powertrain technologies for America’s vehicles. 

ALTe manufactures electric vehicle powertrains which are used to increase fuel efficiency and lower emissions.

The new clean car standards follow closely after the first-ever national standards for passenger vehicles, which applied to vehicles in model years 2012 to 2016.

The Administration says that, in total, its national program to improve fuel economy and reduce greenhouse gas emissions will save consumers more than $1.7 trillion at the gas pump and reduce U.S. oil consumption by 12 billion barrels.

A joint ACEEE-BlueGreen Alliance report found the standards also would create more than a half million jobs by 2030, including 50,000 jobs in auto manufacturing. (These projections are not surprising. Since the restructuring, auto companies have added 250,000 jobs.)

Fuel economy standards benefit American auto companies and the myriad of suppliers because they create certainty, establish the U.S. as leader in fuel efficiency, and provide incentives for innovation.

Unlike many other industries, the auto sector and its many suppliers can plan for the future knowing the regulatory playing field until 2025.

The new clean car standards stand as among the most progressive in the world, driving the U.S. to a leadership position in fuel-efficient vehicles and technologies–  and toward the opportunity to export everything from parts to final assembled vehicles. 

These rules reward innovation in every facet of auto technologies — from changes to traditional combustion engines such as new materials, electronics, engine re-design, and recirculation of exhaust gas to development of a new generation of electric vehicles, hybrid and fuel cell vehicles. 

Seifi Ghasemi is chairman and chief executive of Rockwood Holdings, the world’s largest producer of lithium and lithium compounds.

He responded to the announcement by noting that:

Rockwood believes that the US can be the world leader in a game-changing technological leap forward by making electric vehicles the cars of the future. 

Mr. Ghasemi further described how Rockwood is already expanding and adding jobs:

For the auto industry and battery makers to adopt this technology, they must have a secure and reliable supply of lithium compounds for advanced electric vehicles. To meet the need for these compounds, Rockwood recently invested more than $75 million in two expansion projects that expands the output of our Silver Peak, Nevada, and Kings Mountain, North Carolina, production facilities.  We expanded our Silver Peak site, which is the only US source of lithium raw materials, and we built and recently opened a state of the art battery grade lithium hydroxide manufacturing plant in Kings Mountain.  In addition, we completed a new Global Technical Center at Kings Mountain that will bring together engineers and scientists to perfect and commercialize advanced battery materials.  These investments provide several economic benefits, including the addition of more than 100 new manufacturing and research and development jobs.  These expansions also reinforce our long-term competitiveness in a vital, growing technology.

As the auto sector continues to demonstrate, strong environmental standards can work in concert with a vision for growth in industries across America.

Also posted in Cars and Pollution, Clean Air Act, Economics, Energy, Jobs, News, Policy, What Others are Saying / Read 1 Response

One Step Closer to Breathing Easier: We Reach a Key Deadline for Reducing Soot

By Mandy Warner / Published: September 6, 2012

Many of us have just returned from our last summer road trips over the Labor Day weekend, and now we’re settling back into work. So here’s some good news for the unofficial start of fall:

We can all breathe a little easier knowing that the U.S. Environmental Protection Agency (EPA) is one step closer to finalizing new limits on soot.

The comment period on EPA’s proposal to strengthen the national limits on soot closed last Friday.

Soot — also known as particulate matter — is a deadly pollutant that contributes to asthma attacks, heart attacks, and a host of other respiratory problems.

The more we have learned about soot, the more we have become aware that our national standards are not strong enough to protect our health. That’s why EPA has proposed updated standards – and the deadline for comments means we’re moving toward the moment when final, tougher standards go into effect.

So if, like roughly 30 million other Americans, you drove somewhere last weekend, you can take some comfort in knowing that the big rig in front of you emitting black plumes of smoke may eventually be a thing of the past.

Soot is emitted largely by power plants and diesel vehicles and equipment (including some of those older big rigs). But many highly cost-effective, American-made technologies exist for power plants and diesel engines that will help states meet new, better soot standards.

We’ve already made some progress. The brand-new diesel trucks that are rolling off the assembly lines today are meeting rigorous modern emission standards for soot, nitrogen oxides and other pollutants. They’ll help states meet more protective air quality protections as the newly manufactured diesel trucks replace those on the road today.

Plus, last year the Administration enacted new fuel efficiency and greenhouse gas emissions standards for heavy-duty vehicles like semis, buses and garbage trucks. Those new fuel efficiency standards will save truck owners money — which is why they have garnered broad industry support.

But we still have more to do, and the proposed new soot standards will help us finish the job.

A broad coalition of health, environmental, moms, and environmental justice groups support the proposed new standards. They wrote a letter urging EPA to strengthen standards for soot, based on the latest science:

Strengthening the particulate matter health standards as demanded by science could prevent thousands of premature deaths, heart attacks, and visits to the hospital and emergency room each year.

Hundreds of physicians and health professionals also sent a letter in support of stronger standards to EPA on Friday.

These proposed new soot standards are more important than ever in light of a recent decision by a U.S. Court of Appeals panel to send the Cross-State Air Pollution Rule back to EPA.

The Cross-State Rule would have helped lower soot and ozone pollution from power plants significantly compared to the policy currently in place. New, strong soot standards are vital to providing lasting clean air protections.

New, strong soot standards will also get states moving to reduce this deadly pollutant. That means we all have a stake in strong new soot standards — so that all Americans can breathe easier.

Also posted in Cars and Pollution, Clean Air Act, Health, News, Policy, What Others are Saying / Comments are closed