Climate 411

The Clean Power Plan – a Vibrant Partnership with the States

By Mandy Warner / Published: August 3, 2015

We are on the verge of seeing the final Clean Power Plan, after years of stakeholder engagement and input. So this is a good time to acknowledge what many state leaders themselves recognize – that EPA’s Clean Power Plan reflects the extensive input of states on its core, most fundamental framework, including the establishment of carbon intensity standards that reflect the different energy mixes in each state, and extensive state flexibility to achieve the standards in a manner that enables state-based compliance plans that minimize costs and maximize benefits.

States Leading the Way

Not surprisingly, states from Michigan to California recognize the benefits of submitting state-forged compliance plans under this flexible framework. Despite misguided efforts to pressure them to “just say no”, state officials are digging in deep and constructively engaging — an in the process, demonstrating what actual leadership looks like.

Let’s take a closer look at what state leaders themselves are saying about this.

Bob Martineau, president of the Environmental Council of the States and a commissioner of the Tennessee Department of Environment and Conservation, praised EPA for its extensive outreach to states prior to issuing the proposed Clean Power Plan.

Martineau stated:

…as you’ve seen, the Clean Power Plan set a state-by-state proposed guideline, now you could agree or disagree with it, but that was a clear voice the states said to EPA prior to the proposal is we’re not all starting in the same place, so one uniform number of a reduction target won’t work, given the different states’ unique characteristics … [The early outreach] was effective in some of those things like to recognize the difference in where the states were starting with their energy portfolio and what their realistic targets would be. (Tenn. environment Commissioner Martineau talks power plan’s jurisdictional challenges, E&E News, March 23, 2015)

Many other state leaders have commented publicly on the benefits of proactive state planning in this flexible framework and the urgent need to take action.

In a recent interview on Meet the Press, Governor Jerry Brown of California stated:

Here’s the point, that the buildup of carbon coming from coal and petroleum and other sources, that this is going to create these droughts and much, much worse. And that’s why to have the leader of the Senate, Mr. McConnell representing his coal constituents, are putting it at risk, the health and well being of America, is a disgrace.

The Republican Governor of Michigan, Rick Snyder, told the Battle Creek Enquirer that change is coming:

[S]o let’s be proactive and design a policy to accommodate that.

Paul Thomsen, head of Nevada Governor Brian Sandoval’s energy office, told the Elko Daily Free Press:

My position is there’s no state better positioned to be able to comply with those standards. We’ve been ahead of the federal government for some time.

Lawmakers in the Republican-controlled Arizona legislature recently passed a bill expressly providing for the development of a state-compliance strategy to meet EPA requirements under the Clean Power Plan.

Governor Hickenlooper of Colorado directly responded to Senator McConnell’s request that states not submit plans by saying:

Colorado is already a leader in reducing carbon emissions from power plants, on track to hit an estimated 20% reduction over 2012 emissions – and we have done all this while keeping energy rates affordable. We will continue to engage with our industry to develop a compliant Clean Power Plan, as required by federal law.

John Quigley, Secretary of the Pennsylvania Department of Environmental Protection recently said:

[W]e can meet this mandate, this clean-power mandate, in a way that benefits Pennsylvania’s economy and environment. (Pa. DEP Secretary Quigley discusses state’s shift on power plan. E&E News PM, July 20, 2015)

Additionally, red and blue states including Utah, Michigan, Missouri, and Pennsylvania are working with the National Governors’ Association (NGA) to identify cost-effective strategies for reducing carbon emissions to comply with the Clean Power Plan.

As Utah officials said:

Knowing that we will likely find ourselves having to comply with some form of carbon regulation in the near term, we are determined not to be caught flat-footed. (Coal-heavy states explore carbon-cutting options with support from National Governors Association, ClimateWire, March 24, 2015)

In their application to NGA, they stressed that:

[B]eing proactive and strategically positioned to comply with impending federal regulations is preferred to being reactive. (Coal-heavy states explore carbon-cutting options with support from National Governors Association, ClimateWire, March 24, 2015)

Power Companies Working With States to Craft Compliance Plans

Major power companies also recognize the benefits of homemade compliance plans that fully harvest state flexibility.

A recent, salient example comes from the coal-intensive state of Wyoming where Berkshire Hathaway Energy’s Chief Environmental Counsel, Cathy Woolums, recently provided comments at the Wyoming Infrastructure Authority winter meeting that indicated the importance of action by the state to submit a compliance plan for the Clean Power Plan.

Woolums stated:

[I]f the state wants to push back against the plan, that’s okay, but we really do have to have a backup plan because if not, we will be caught in a situation where we don’t have any options…And that’s the worst of all positions to be in.

An additional critical point she made is that the 2030 targets of the CPP are achievable, she and showed important leadership when she urged state officials to work with other states to meet the targets.

Leveraging Opportunities for State Policy Priorities through the Clean Power Plan

As observed by Richard Revesz, legal scholar and Director of the Institute for Policy Integrity, the extraordinary state flexibility under the Clean Power Plan provides a tremendous opportunity for state policy priorities to be thoroughly integrated into state planning – and it is worth fighting for.

Revesz told the Wall Street Journal that the Clean Power Plan sets:

…statewide carbon reduction targets that states can meet through any means they choose: improvements in the efficiency of energy production, increased use of natural gas and renewable energy, programs that help consumers save energy, or any other strategy the states prefer … This flexible approach is one of the rule’s greatest strengths—it will allow states and energy companies to reduce their emissions through the cheapest and most effective means available. (The Legal and Economic Case for Obama’s Clean Power Plan, Wall Street Journal, March 31, 2015)

EPA conducted unprecedented outreach around the Clean Power Plan, and state and power company officials across the country were highly engaged in the process.

States underscored the importance of ensuring that the plan EPA proposed include substantial flexibility for states that allowed them to craft a plan tailored to their own states’ unique energy profile. The Clean Power Plan delivers on this promise of flexibility for state compliance, and gives states the opportunity to be in the driver’s seat to secure cost-effective emissions reductions to protect the health of their families and our climate in the best way possible.

Judging from the way states across the country are engaging constructively with EPA and their stakeholders in the lead-up to a final rule, it is clear that state officials are recognizing the importance of stepping up to the plate and thoughtfully shaping the path to their own clean energy future. That’s real leadership.

Posted in Clean Power Plan, News, Partners for Change / Comments are closed

Why “Just Say No” is Just Plain Wrong: the Sound Legal Basis for the Clean Power Plan

By Tomas Carbonell / Published: August 1, 2015
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Kentucky power plant. Photo by Cindy Cornett Seigle/Flickr

The U.S. Environmental Protection Agency (EPA) will soon finalize the Clean Power Plan — a suite of historic Clean Air Act standards that will establish the first nationwide limits on carbon pollution from America’s fossil fuel-fired power plants. Rigorous carbon pollution standards for the nation’s power sector will yield immense benefits for the health of our families and communities, for the American economy, and for a safer climate for our children.

Yet in the months leading up to the release of the Clean Power Plan clean air standards, coal companies and other entities that oppose reasonable limits on carbon pollution have lobbed a series of flawed and failed lawsuits directed at stopping EPA from finishing its work. Now, some power companies and their allies have concocted new – and equally misguided – attacks against the Clean Power Plan.

They’ve been suggesting that the U.S. Supreme Court’s recent decision in the Mercury and Air Toxics Standards case, which held that EPA must take costs into account when making a threshold decision whether to proceed with emissions limits on toxic pollution was a blow against the Clean Power Plan. They’ve also been arguing that states should “Just Say No” to developing plans for implementing the Clean Power Plan’s vital protections to limit carbon pollution for climate and public health.

As we explain below, these critics are flat wrong – on the meaning of the Supreme Court’s decision, on the decision’s implications for the Clean Power Plan, and on the validity of “just saying no.”

Climate and Public Health Benefits of the Clean Power Plan

Before turning to the Supreme Court’s decision, let’s make one thing clear — the “Just Say No” camp is urging states to condemn our families and communities to a future of unlimited carbon pollution and compromised public health. They’re also urging us to forego a tremendous economic opportunity associated with the race to deploy more clean energy solutions, drive down pollution, and increase jobs.

The Clean Power Plan is expected to bring historic health and environmental benefits, both in the near term and for future generations. As proposed, the Clean Power Plan would significantly reduce carbon pollution from the nation’s largest source – existing fossil fuel power plants that account for nearly 40 percent of U.S. carbon dioxide emissions. Reductions of other harmful pollutants will be just as profound. Based on the proposed rule, EPA estimates that by 2030, when the Clean Power Plan is fully in effect, power sector emissions of sulfur dioxide, nitrogen oxides, and particular matter will be reduced by almost 30 percent compared to a business-as-usual scenario. Significant reductions would begin to take place many years earlier.

That means thousands of avoided deaths, heart attacks, and childhood asthma attacks each year — all by the time a child born today starts kindergarten. EPA estimates that the climate and public health benefits of the proposed Clean Power Plan would have an economic value of up to $93 billion per year by 2030 – or as much as eleven dollars for every dollar spent on compliance.

The Supreme Court Mercury Decision and the Clean Power Plan

Yet some opponents of the Clean Power Plan, including Senate Majority Leader Mitch McConnell (R-KY) and large polluters, are urging states to hold off on implementing the Clean Power Plan. They claim — falsely — that the Supreme Court invalidated the Mercury and Air Toxics Standards when it decided Michigan v. EPA, so it was a waste of money for power plants to have complied with the Mercury standards. They say the same thing might happen with the Clean Power Plan.

That’s just plain wrong.

The Supreme Court did not invalidate the Mercury and Air Toxics Standards. The Court only held that EPA should have taken into account the costs of the standards when the Agency made its initial legal determination that it is “appropriate and necessary” to regulate mercury and other air toxics from power plants. As examined below, EPA considered costs in establishing the resulting emissions standards. Further, the Mercury and Air Toxics Standards remain in effect after the Court’s decision, and power plants are still required to comply. (The case now goes back to a lower court for further consideration).

In the coming weeks and months, EPA will respond to Michigan v. EPA. There is every reason to believe EPA can quickly amend its “appropriate and necessary” finding to address the Supreme Court’s decision, without affecting the substance of the Mercury and Air Toxics Standards. This is because EPA has already conducted an extensive review of both the costs and benefits of the standards, and that review contains overwhelming evidence that the benefits of the Mercury and Air Toxics Standards are vastly disproportionate to the costs.

Controlling air toxics for power plants, for example, will have the important benefit of reducing human exposure to harmful particulate matter – helping prevent 11,000 premature deaths, 4,700 heart attacks, and 130,000 asthma attacks each year. These “co-benefits” have an estimated value of up to $90 billion per year, or up to nine dollars for every dollar projected to be spent on compliance. That figure does not even take into account the critical benefits associated with reduced exposure to the neurotoxic and carcinogenic pollutants regulated under the Mercury and Air Toxics Standards, all of which are emitted by the power sector in huge quantities, and all of which will be dramatically reduced as a result of the standards. There is no question that the Mercury and Air Toxics Standards are “appropriate and necessary” even when costs are considered.

Moreover, the courts will almost certainly keep the Mercury and Air Toxics Standards in place during the interim period while EPA responds to the Supreme Court’s decision. This is a common course of action when the courts find that EPA needs to go back and address legal or technical issues in a Clean Air Act regulation – especially in the situation we face with the Mercury and Air Toxics Standards, where the issues are straightforward to resolve and there are significant public health protections at stake.

The Clean Power Plan — Different Rule, Different Issues

Polluters and their allies are even more off-base when it comes to the impacts of the latest Supreme Court decision on the Clean Power Plan.

The Mercury and Air Toxics Standards case was about a narrow interpretive issue in section 112 of the Clean Air Act — whether EPA had to consider costs in its “appropriate and necessary” finding. Unlike the Mercury and Air Toxics Standards, the Clean Power Plan is authorized by section 111 of the Clean Air Act. Section 111 contains no reference to an “appropriate and necessary” finding. So the Supreme Court’s interpretation of section 112 doesn’t have any direct relevance to section 111.

Under section 111, EPA does have to make a threshold finding that a source category “contributes significantly to air pollution which may reasonably be anticipated to endanger public health or welfare.” EPA already made this finding when it first issued section 111 standards for power plants back in the 1970’s. In 2009, EPA made a further finding that carbon dioxide and other greenhouse gases “endanger public health and welfare” – a finding that the courts subsequently upheld against numerous industry challenges.

It’s also clear that EPA has considered costs extensively throughout the rulemaking process for the Clean Power Plan, as section 111 requires. As noted above, EPA found that the total benefits of the proposed Clean Power Plan exceed compliance costs by a wide margin. This remains true even when considering the climate and public health benefits separately — EPA’s central estimate of the climate benefits alone is $31 billion per year by 2030, or over three –and-a-half-times the cost of compliance. The public health benefits in that same year are valued at an additional $27 to 62 billion.

Cost considerations are woven into the structure of the proposed Clean Power Plan, which maximizes flexibility to enable compliance using the most cost-effective methods available. Indeed, EPA’s approach is vastly less expensive than the “end of the pipe” solutions some of the Clean Power Plan’s opponents claim are the better approach under the law.

Legal Experts Confirm the Strong Legal Basis for the Clean Power Plan

The cynical premise of the “Just Say No” campaign also ignores the chorus of influential legal experts who have affirmed the strong legal basis for the Clean Power Plan. Leading law enforcement officials, former EPA officials, and prominent legal scholars have concluded that the Clean Power Plan is firmly within EPA’s long-standing authority under the Clean Air Act.

A few illustrative statements include:

The Text, Structure, and History of the Clean Air Act Confirm EPA’s Authority to Regulate Carbon Dioxide Emissions from Power Plants Under Section 111(d). —Attorneys General of the States of New York, California, Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Mexico, Oregon, Rhode Island, Vermont, Washington, and the District of Columbia, in brief filed in Murray Energy Corp. v. Environmental Protection Agency, No. 14-1112 (D.C. Cir. Dec. 23, 2014)

The EPA has authority under the 1990 Clean Air Act, an authority affirmed by the U.S. Supreme Court, to set these public health protections against carbon pollution. — Carol M. Browner (EPA Administrator under the Clinton Administration) & Alex Laskey, With New Power Plant Rules, Energy Efficiency Checks All the Boxes

Critics of the [Clean Power Plan] say that President Obama is making an end run around Congress, stretching the law to achieve by executive action what he could not accomplish through the legislative branch. This is flat wrong. More than four decades ago, Congress expressed its clear desire to regulate pollution from power plants, in the form of the Clean Air Act. I know, because I worked on the legislation, including the key part of the act—Section 111—that the Obama administration is using to justify its move. — Leon Billings, The Obscure 1970 Compromise That Made Obama’s Climate Rules Possible

Limiting Greenhouse Gas emissions from existing power plants is the next logical step after the Supreme Court and other courts have upheld EPA’s authority and obligation to address this issue. A system-wide approach provides needed flexibility and reduces costs, as well as encouraging investment in lower-emitting generation. EPA has wisely left the states a lot of discretion rather than mandating specific measures as some had wanted. – E. Donald Elliott, EPA General Counsel under President George H.W. Bush, Obama’s Section 111d Plan Has Support From George H.W. Bush’s EPA General Counsel, Utility Executives

EPA’s approach is neither unprecedented nor unlimited. Since 1970, the [Clean Air Act] has called on states to make policy choices and use their governmental powers in the manner that this rule might require. Indeed, many of the policy choices needed to comply with EPA’s proposal would stem from the special characteristics of the electricity market and not from any new EPA initiative. — William F. Pedersen, Senior Counsel, Perkins Coie, Does EPA’s §111(d) Proposal Rely on an Unprecedented and Legally Forbidden Approach to Emission Reduction?, Environmental Law Reporter (April 2015)

There is just case law building on case law that says, [the Clean Power Plan] is perfectly constitutional. — Prof. Jody Freeman, Harvard Law School, Harvard Law’s Lazarus and Freeman discuss federal court Power Plan hearing, Tribe arguments,E&ENews PM (April 20, 2015)

Clean Air Act regulations of existing power plants implemented by presidents of both parties over the past quarter of a century have achieved vitally important protections for public health and the environment through regulatory tools carefully designed to minimize costs. By following in the footsteps of earlier rules, the Clean Power Plan could be similarly transformative. The claim that it is unprecedented and unconstitutional is wrong on the facts and wrong on the law. – Ricky Revesz, Dean Emeritus and Lawrence King Professor of Law, NYU School of Law, Obama’s professor on Clean Power Plan – Wrong on the facts and law

EPA’s Strong Record of Success in Defending Clean Air Act Rules

Proponents of the “Just Say No” campaign also hope that the public will overlook EPA’s strong track record of success in defending Clean Air Act rules in the nation’s federal courts.  Indeed, almost all of the major Clean Air Act rules that have so successfully protected human health and the environment in recent years have undergone intense legal challenges – and most of these challenges have failed.

Consider these recent examples:

  • EPA v. EME Homer City Generation (U.S. Supreme Court, 2014) — In a major victory for EPA, the Supreme Court reversed a D.C. Circuit decision invalidating the Cross-State Air Pollution Rule.  
  • Utility Air Regulatory Group v. EPA (U.S. Supreme Court, 2014) — The Supreme Court upheld EPA’s interpretation of the Clean Air Act requiring that new and modified industrial facilities obtain permits limiting their emissions of greenhouse gases to reflect “best available control technology.” The Court did rule against EPA on the question of whether the “best available control technology” requirement applies to smaller facilities. However, EPA itself had concluded those requirements would pose serious practical problems and yield relatively small pollution control benefits.
  • Coalition for Responsible Regulation v. EPA (D.C. Circuit, 2012) — The D.C. Circuit Court of Appeals upheld EPA’s science-based finding that climate pollution endangers public health and welfare, and EPA’s first generation of greenhouse gas emission standards for passenger vehicles. The Supreme Court declined to review either of these critical holdings, laying the groundwork for subsequent rules reducing greenhouse gas emissions from passenger vehicles and medium and heavy duty trucks.
  • Delta Construction Co. v. EPA (D.C. Circuit, 2015) – The D.C. Circuit dismissed, on procedural grounds, multiple legal challenges to EPA’s first greenhouse gas standards for medium and heavy duty vehicles.
  • National Association of Manufacturers v. EPA (U.S. Court of Appeals for the D.C. Circuit, 2014) — EPA fended off challenges to the National Ambient Air Quality Standards for particulate matter (better known as soot).

The health and environmental benefits of the Clean Power Plan will be invaluable. As EPA prepares for the inevitable legal attacks, it has a strong legal foundation and a track record of litigation success. Nothing about the Mercury and Air Toxics Standards decision changed that.

Posted in Clean Air Act, Clean Power Plan, Climate Change Legislation, Health, News, Policy / Read 1 Response

Oklahoma Court Rejects Yet Another Flawed Challenge to the Proposed Clean Power Plan

By Peter Zalzal / Published: July 22, 2015

rp_scales_of_justice.pngThe Clean Power Plan has now won a second round in court – before the U.S. Environmental Protection Agency (EPA) has finished writing it.

The federal district court for the Northern District of Oklahoma rejected another premature challenge on Friday to the proposed standards for carbon pollution from existing fossil fuel power plants.

The first – a challenge brought by Murray Energy Corporation and several states, including Oklahoma – was dismissed by the U.S. Court of Appeals for the D.C. Circuit just last month. In that decision, the D.C. Circuit court found petitioners’ attack on the Clean Power Plan was premature — relying on the plain text of the Clean Air Act, bedrock principles of administrative law, and (as the petitioners themselves acknowledged) the unbroken practice in the D.C. Circuit allowing challenges only to final agency actions.

This finality requirement is critically important to the integrity of the administrative process, ensuring the agency has an opportunity to consider and incorporate public input and that a reviewing court evaluates the agency’s final, carefully-determined course of action.

In last month’s decision, the D.C. Circuit noted that petitioners were “champing at the bit” to challenge the Clean Power Plan. True to form, the state of Oklahoma filed another challenge – pressing substantially similar claims to those already rejected by the D.C. Circuit, but this time seeking judicial review in Oklahoma federal district court.

If the challenges in the D.C. Circuit represented an attempted end run around the judicial review provisions of the Clean Air Act, then here the plaintiffs tried a double end run — adding to their flawed premature challenge by seeking judicial review in the wrong court.

The Clean Air Act provides that a challenge to any “standard of performance or requirement under section [111]” — which will include EPA’s Clean Power Plan, when finalized — must be filed in the D.C. Circuit. The Clean Air Act vests the D.C. Circuit with this authority to ensure uniform and consistent review of actions that apply nationally.

The Oklahoma federal district court made short work of the suit.

On Friday, the court firmly rejected the challenges – dismissing them on the basis of the plaintiffs’ brief alone, without even waiting for EPA’s response.

The Oklahoma federal district court decision both reaffirmed the courts’ authority to review only final agency actions, and identified the D.C. Circuit as the proper venue for challenging the Clean Power Plan, when it is finalized.

In the decision, written by Oklahoma federal district court Judge Claire Eagen, the court said:

The D.C. Circuit has already determined that the proposed emission standards are not a final agency action, and that court has denied a petition to review the proposed emission standards before they become a final rule. (Page 9)

The decision also says:

Even if the Court found that it would not be premature to exercise jurisdiction over this case, plaintiffs have failed to show that jurisdictional review provision of the CAA would permit this Court to exercise jurisdiction over the case . . . . The ultimate issue of whether the EPA has the authority to promulgate the disputed emission standards pursuant to § 7411(d) must be decided by the court with exclusive jurisdiction over these matters, and that court is the D.C. Circuit. (Page 9 – Emphasis Added)

Taken together, these decisions should give pause to litigants contemplating procedurally-flawed legal challenges — but unfortunately, Oklahoma is continuing to press these misguided claims in an appeal to the U.S. Court of Appeals for the Tenth Circuit. And these are just the latest in a series of legally-unfoundedattacks on these critical standards.

The health and environmental benefits of the Clean Power Plan could be profound. As EPA prepares for the inevitable legal challenges to come, it has a strong track record of defending the Clean Power Plan and other important clean air safeguards against legal attacks. That’s good news for the families and communities that are afflicted by carbon pollution from fossil fuel-fired power plants — the nation’s single largest source of this climate-destabilizing pollution.

Posted in Clean Power Plan, EPA litgation, News, Policy / Comments are closed

FERC, Grid Operator, Others File Supreme Court Briefs in Demand Response Case

By Michael Panfil / Published: July 10, 2015
Source: iStock

Source: iStock

The Federal Energy Regulatory Commission (FERC), a grid operator, states, and other parties just filed briefs with the U.S. Supreme Court in a case that could decide whether Americans have access to low-cost, clean and reliable electricity.

The case, EPSA v. FERC, revolves around demand response, a resource that helps keep prices low and the lights on – and does so while also being environmentally friendly.

In 2013, for example, demand response saved customers in the mid-Atlantic region close to 12 billion dollars. And during the polar vortex, which threatened the North-East with freezing cold in 2014, the resource helped prevent black-outs.

The clean energy rule at issue in this case is called FERC Order 745. EDF has been writing about this demand response case throughout the past year. We’ve been fighting for low-cost demand response and we’ll keep fighting in the Supreme Court.

History of the Case

The case involves a FERC rule that allows demand response – a low-cost, clean, and reliable energy conservation resource – the chance to compete fairly in our nation’s wholesale energy market.

EDF and a broad coalition of consumer advocates, environmental groups, companies, and industry organizations support it.

Demand Response – How It Works, Why It’s Popular

The broad support for demand response exists because of how the resource works.

Demand response reduces energy demand when power is needed most, rather than increasing supply from costly, carbon–emitting fuels. It relies on people and technology, not power plants, to affordably meet our country’s rising electricity needs. In so doing, it reduces costs for everyone by taking the place of very expensive generation.

Anyone in favor of cleaner, more reliable, lower-cost energy has a reason to support demand response.

What’s at Issue

FERC is the federal agency responsible for keeping our electricity rates “just and reasonable” (in other words, for making sure we get fairly priced electricity).

FERC created Order 745 to further that goal. Order 745 allows demand response access to the wholesale energy market, where electricity is bought and sold. It levels the playing field between demand response and traditional sources of electricity generation, like coal.

In doing so, demand response has been able to reduce our use of unneeded, costly electricity – the exact type of electricity that should be limited if one wants “just and reasonable” rates.

Electricity producers challenged FERC’s Order 745, arguing that the agency lacked jurisdiction to create it. A three-judge panel for the U.S. Court of Appeals for the D.C. Circuit Court, in a split 2-to-1 decision, ruled in favor of the challengers.

Now FERC — as well as states, demand response providers, grid operators, and others – have stated their case to the Supreme Court.

The Case Before the Court

In its just-filed brief, the Solicitor General said on behalf of FERC:

Given that demand-response programs unquestionably confer significant benefits on wholesale markets, including lower rates, there is no defensible justification for concluding that the [Federal Power Act] nevertheless altogether excludes the programs from wholesale markets or FERC regulation. (FERC brief page 34)

The FERC brief also says:

By exercising authority over wholesale demand-response programs, FERC can ensure that a practice that occurs in wholesale markets, and has been widely recognized as tremendously important to the efficient functioning of those markets, will continue to provide benefits to consumers and the economy and is deployed in a way that results in just and reasonable wholesale rates and a reliable electricity system. (FERC brief page 45)

Another party to the case, demand response company EnerNOC, said in its brief:

Without demand response participation, wholesale energy markets will not ‘function…effectively’: Competition will be constrained; and prices will be higher. (EnerNOC brief page 39)

What Happens Next

Next, attention will turn to the amicus briefs – briefs filed in support of the parties to the case. Those, including EDF’s amicus brief, will be filed by July 16.

The Supreme Court is expected to hear oral arguments in the case this fall.

You can find all the briefs in the case here. And EDF will keep you updated as the case moves forward.

Posted in Economics, Energy, News, Policy / Comments are closed

The Mercury Standards, Post-Supreme Court – Still in Effect, Still Protecting Americans

By Tomas Carbonell / Published: July 2, 2015
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Supreme Court of the United States

The U.S. Environmental Protection Agency (EPA) first proposed the Mercury and Air Toxics Standards back in 2011, at a news conference at Children’s Hospital with cheering children and families surrounding the speakers.

They were cheering because the Mercury Standards were the single most important clean air measure of our generation – designed to protect Americans from some of the worst, most dangerous types of air pollution.

They still are.

This week’s disappointing Supreme Court decision, remanding the standards back to the D.C. Circuit Court for further analysis, has distracted from that fact.

But the fact remains – the Mercury and Air Toxics Standards are a suite of life-saving protections against some of the most health-harming substances emitted by coal and oil-fired power plants, including mercury, arsenic and other heavy metals, and acid gases.

Here’s What Happened

Coal- and oil-fired power plants are by far the largest emitters of these pollutants, which are dangerous to human health even in small doses. Mercury causes brain damage in children, metal toxics like chromium and nickel cause cancer, and acid gases cause respiratory problems.

This week, the Supreme Court held that EPA should have considered the costs of regulation when it made a threshold determination under section 112 of the Clean Air Act that it is “appropriate and necessary” to move forward with the first-ever national limits for these noxious emissions. It is now up to EPA to determine the best way to respond to the decision.

(The case was Michigan v. EPA. EDF was a party to the case. You can read the decision and the sharp dissent here.)

What does the Supreme Court ruling mean for the Mercury Air Toxics Standards?

Here are three important things you should know.

First — there is every reason to believe EPA can quickly amend its “appropriate and necessary” finding to address the Supreme Court’s decision, without affecting the substance of the Mercury and Air Toxics Standards themselves.

Importantly, the Court left it up to EPA to determine how to evaluate costs and how to weigh those costs against the benefits of regulation. As the Court’s opinion acknowledged, EPA has already conducted an extensive review of both the costs and benefits of the Mercury and Air Toxics Standards as part of the regulatory analyses most agencies carry out under Executive Order 12866. That analysis contains overwhelming evidence showing that the benefits of MATS far outweigh its costs.

According to EPA, the monetized benefits of the Mercury and Air Toxics are expected to be up to $90 billion per year.

That amount reflects the enormous health benefits Americans will get from the standards. EPA estimates that they will prevent 11,000 premature deaths, up to 4,700 heart attacks, and up to 130,000 asthma attacks each year.

There are substantial and additional non-monetized benefits associated with reduced exposure to mercury and other harmful pollutants regulated by the Mercury and Air Toxics Standards.

Moreover, in spite of the power industry’s claims, reducing these emissions has proven much less expensive than initially projected. Major power companies such as AEP, NRG, and FirstEnergy have been reporting to their investors that the costs of the Mercury and Air Toxics Standards are as much as 70 percent lower than they first estimated.

The bottom line is that the Mercury and Air Toxics Standards are an extraordinarily beneficial public health measure and are providing healthier, longer lives for millions of Americans at a fraction of the costs predicted.

Second — the Mercury and Air Toxics Standards can and should continue to be implemented while EPA amends its “appropriate and necessary finding.”

The Supreme Court’s opinion did not prohibit the implementation of the Mercury and Air Toxics Standards – and in the past, the appellate courts have often allowed Clean Air Act regulations to remain in place while EPA amends them to address technical or legal issues.  

In this case, a large majority of American power plants are already in compliance with the Mercury and Air Toxics Standards — in many instances because they have been upgrading pollution controls to comply with state emission standards or other Clean Air Act requirements.  M.J. Bradley & Associates recently estimated that about 70 percent of the U.S. coal fleet had installed pollution controls to comply with the standards by the April 2015 deadline. In addition, a substantial number of plants have received one-year extensions to this compliance deadline and are now working to install pollution controls by April 2016.

Given the importance of the Mercury and Air Toxics Standards to public health, and the overwhelming likelihood that EPA will be able to quickly address the Court’s decision, there is no reason that power plants should be allowed to delay installing pollution controls or cease operating already-installed pollution controls.

Third – the Supreme Court decision has no adverse implications for EPA’s Clean Power Plan – despite the wild claims being made by some opponents of these vital limits on carbon pollution from power plants.

The Mercury and Air Toxics Standards and the Clean Power Plan are based on entirely separate Clean Air Act authorities that reside in separate parts of the statute. The authority EPA is acting on to develop the Clean Power Plan expressly provides for the consideration of costs, and EPA has carefully taken costs into account in the Clean Power Plan in the manner required by the statute. Thus, claims that the ruling on the Mercury and Air Toxics Standards should somehow cast doubt on the legality of the Clean Power Plan are severely misguided.

Summing It Up

Marian Burton, president of the American Academy of Pediatrics, summed it up perfectly back in 2011, when the Mercury and Air Toxics Standards were first proposed:

Dirty air makes children sick … If you think it’s an expensive process to put a scrubber on a smokestack, you should see how much it costs over a lifetime to treat a child with a preventable birth defect.

That’s why hundreds of thousands of Americans sent comments to EPA in support of the Mercury and Air Toxics Standards.

It’s why EDF and so many other health, environmental, and social justice groups will go back to the D.C. Circuit Court to defend the standards.

We’ll keep fighting to make sure the Mercury and Air Toxics Standards are fully implemented so we can realize the promise of the Clean Air Act — and make sure all Americans have safe, healthy air to breathe.

Posted in Clean Air Act, EPA litgation, Health, News, Policy / Comments are closed

Urgency and Opportunity for Latino Leadership on Climate

By Lucía Oliva Hennelly / Published: June 26, 2015
Las Vegas -- Wikimedia Commons

Las Vegas — Wikimedia Commons

When I landed in Las Vegas last week, the weather was a broiling 108 degrees. Ouch.

I braved the Las Vegas heat for one of the most inspiring convenings of Latino leaders in the country, the Annual Conference of the National Association of Latino Elected Officials (NALEO). We had a chance to hear from established and rising Latino leaders, as well as from Presidential candidates, about the challenges facing Latino communities and the many paths forward for creating a brighter future.

What we did not hear about was a vision for places like Las Vegas, where summer temperatures are bound to get hotter and water will become even more scarce in the face of climate change. In fact, there was no formal conversation about what climate change means for the U.S., and specifically for Latinos.

Here’s the short version of the missing conversation on climate: climate change presents challenges to everyone but it is having, and will continue to have, a disproportionate impact on Latinos in the United States.

To illustrate, let’s look at the three states that house more than half the Latinos in the US:

  • California, and the state’s majority Latino population, is facing its fourth year in historic drought that’s been exacerbated by climate change.
  • This summer, Texas experienced unprecedented flooding, nearly canceling out the state’s prior state of drought, in a demonstration of the kind of extreme weather linked to climate change.
  • Florida’s real estate and freshwater is already threatened by initial increases in sea-level rise, which are also eroding the state’s beaches.

There are more than 28 million Latinos facing climate threats in these three states alone. That does not count the millions of other Latinos nationwide who will face extreme heat and longer wildfire seasons in the Southwest this summer. It does not account for all 49 percent of Latinos nationally who live in coastal communities and will face more frequent and intense hurricanes and flooding. It also does not account for the full 14 percent of Latino kids diagnosed with asthma, who will face greater challenges to managing this condition due to more days with unhealthy levels of smog.

That was the bad news. It points to the fact that our leaders should not ignore the impacts of climate change on the Latino community. As climate impacts the air we breathe, threatens water we use for drinking, swimming, farming, and fishing, and even endangers our health, leaders at all levels need to take a proactive stance to protect our communities by addressing climate change.

Here’s the good news — the support is already there to act on climate. National polling has shown that 63 percent of Latinos think the federal government should act broadly to address global warming, while 8 in 10 Latinos want the President to curb the carbon pollution that causes climate change.

There are also some great opportunities hidden among the challenges. For example, today’s clean energy economy is creating more jobs than the fossil fuel economy. Jobs in the clean energy economy also offer higher wages to a wide range of workers, relative to the broader economy.

Which brings me back to Vegas. While there was no formal climate change discussion on the program, Latino environmental leaders from around the country were sparking conversations in the halls about conservation, climate change, and la comunidad. Advocates from New Mexico’s Hispanics Enjoying Camping, Hunting, and Outdoors talked with conference guests about the importance of protecting our public lands. Colorado’s Nuestro Rio shared their work protecting the Colorado River and our bond to this precious resource.

EDF also played a role, teaming up with GreenLatinos, Green 2.0, and Nuestro Rio to host a reception and highlight the importance of addressing climate change at a national level. Nearly everyone we spoke with about our work was interested in hearing about solutions and how to do more.

As we participated in conference events last week, Pope Francis reminded us that we “have the duty to protect the earth and ensure its fruitfulness for coming generations.” Latino communities, and our leaders, are no exception. We have a duty to address climate change — protecting our families, our children, and our climate is something we cannot afford to gamble on.

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