Tax Credit Could Help Increase Carbon Capture and Storage, Some Say

The Nicholas Institute for Environmental Policy Solutions at Duke University

As part of the Bipartisan Budget Act of 2018, Congress gave a boost to carbon capture—a method for diverting emissions from crude production and coal- and gas-fired power plants—through the so-called 45Q tax credit. For every qualifying project, the boosted 45Q doubles a pre-existing tax credit to $50 per ton of carbon dioxide buried in underground storage and to $35 per ton that is used in a consumer product or to stimulate oil recovery.

“The act also expands the ‘EOR’ [enhanced oil recovery] credit to carbon oxides used for other industrial purposes, changes the definition of the entities to whom the credit applies, and sets capture thresholds for small facilities, electric generating facilities, and direct air capture facilities,” write Frederick R. Eames and David S. Lowman Jr. in Lexology.

Many see the potential for this credit to spur a renewed look at projects with carbon capture and storage and re-enliven policies around it.

“Now, with [the tax credit], the economics are looking very attractive,” said Roger Ballentine, a consultant and board member of 8 Rivers Capital, which is financing NET Power, a carbon capture project near Houston. “People are asking, should I do this. Before, those conversations weren’t even happening. Any major project like this will be a challenge. But the business case gets that much better with [the tax credit]. Once there is a business case, that’s why they happen.”

The nudge from the tax credit could help the technology to be more profitable.

“The reality of any technology development, particularly in the energy space, is it’s very difficult to move technologies into the marketplace without some sort of push,” said Walker Dimmig, spokesperson for NET Power. “The energy marketplace is incredibly competitive.”

Court Orders Enforcement of Methane Leak Rule

Last week, U.S. District Judge William Orrick issued a preliminary injunction blocking the Trump administration’s attempt to delay an Obama-era Bureau of Land Management (BLM) rule that sought to reduce venting, flaring and leakage of methane gas on public and tribal lands. The U.S. District Court for the Northern District of California ruled that BLM did not justify its decision to delay core provisions of its 2016 Methane and Waste Prevention Rule by one year.

“The BLM’s reasoning behind the Suspension Rule is untethered to evidence contradicting the reasons for implementing the Waste Prevention Rule, and so plaintiffs are likely to prevail on the merits,” Orrick wrote. “They have shown irreparable injury caused by the waste of publicly owned natural gas, increased air pollution and associated health impacts, and exacerbated climate impacts.”

In the lawsuit brought by environmental groups and two states—California and New Mexico—Orrick also denied a request to move the case to Wyoming where a similar case is pending.

The ruling was only on the BLM’s proposed one-year delay. It does not directly affect the BLM’s proposed repeal of several methane rule provisions announced earlier this month. That proposal removes at least seven elements introduced under Obama’s rule, including creation of waste minimization plans by companies and emissions reduction standards for well completion.

In announcing the changes to that portion of the rule, the BLM said that many of the former requirements were duplicative of state laws or had a higher cost or lower benefit than previously estimated. Once the BLM proposed repeal is published in the Federal Register, a 60-day public comment period will begin.

Reports Indicate Growth in Renewables in Cities

Worldwide, 101 cities are getting at least 70 percent of their total electricity supply from renewable energy—more than double the number since the 2015 signing of the Paris Agreement according to the Carbon Disclosure Project, which tracks climate-related commitments by corporations and governments.

The London-based Carbon Disclosure Project attributes the increase to the growing number of cities reporting to it (currently 570) and to a global shift to renewable energy. It reports that cities are investing $2.3 billion in 150 clean energy development projects and $52 billion in low-carbon urban infrastructure projects such as energy efficiency upgrades, electric transport networks and smart city programs.

“Cities are responsible for 70 percent of energy-related CO2 [carbon dioxide] emissions and there is immense potential for them to lead on building a sustainable economy,” said Kyra Appleby, director of cities at the Carbon Disclosure Project.

Notably, more than 40 of the cities identified in the report are powered entirely by renewables, including Burlington, Vermont, which gets its electricity from wind, solar, hydro and biomass. Although only a few of the 100-plus U.S. cities that report their energy mix to the project have achieved 70 percent or greater renewables generation, another 58 U.S. cities, including Atlanta and San Diego, are planning to hit the 100 percent renewables target within 20 years.

Meanwhile, two new studies shed light on renewables potential and actual deployment in the United States.

In one, scientists at the University of California at Irvine, the California Institute of Technology, and the Carnegie Institution for Science revealed that the country could reliably meet about 80 percent of its electricity demand with solar and wind power generation “by building either a continental-scale transmission network or facilities that could store 12 hours’ worth of the nation’s electricity demand.” Both options would entail huge—but not inconceivable—investments, they said.

A study by Southern Alliance for Clean Energy revealed that solar deployment is growing in some southern states, including North Carolina, where the solar market, one of the nation’s largest, is driven by favorable implementation of federal laws requiring renewable energy procurement, a state tax credit, and a renewable energy mandate. South Carolina, Florida, and Georgia are also emerging as significant state markets.

Globally, falling costs are playing a role in renewables uptake. According to data released by the World Economic Forum, unsubsidized renewables were the cheapest source of electricity in 30 countries in 2017, and they are expected to be consistently more cost effective than fossil fuels globally by 2020.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

IEA: Universal Energy Access Achievable by 2030

The Nicholas Institute for Environmental Policy Solutions at Duke University

A new analysis by the International Energy Agency (IEA) found that the number of people without electricity fell from 1.6 billion in 2000 to 1.1 billion in 2016—and that the most cost-effective strategy for lowering that number is compatible with the demands of global climate change goals. The analysis, which looked at 140 developing countries, concludes that universal energy access is possible by 2030 and that solar technology will be the linchpin of the effort.

“Providing electricity for all by 2030 would require annual investment of $52 billion per year, more than twice the level mobilized under current and planned policies,” the IEA analysis reports. “Of the additional investment, 95% needs to be directed to sub-Saharan Africa. In our Energy for All Case, most of the additional investment in power plants goes to renewables. Detailed geospatial modeling suggests that decentralized systems, led by solar photovoltaic in off-grid systems and mini-grids, are the least-cost solution for three-quarters of the additional connections needed in sub-Saharan Africa.”

Although coal supplied 45 percent of energy access between 2000 and 2016, its role in new access will shrink to 16 percent, according to the report. Meanwhile, renewables are poised to take the leading role, growing from 34 percent of the supply over the last five years to 60 percent by 2030. The reason: they are becoming cheaper, and the hardest-to-reach people live where off-grid solutions offer the lowest cost.

The biggest gains in access will be experienced by developing countries in Asia, particularly India, which could achieve universal energy access by 2020. But 674 million people, nearly 90 percent of them in sub-Saharan Africa, will remain without electricity even after 2030, the report said.

The IEA report underscores the central role of energy in meeting human and economic development goals. One of the United Nations Sustainable Development Goals adopted in 2015 by 193 countries is to ensure universal access to affordable, reliable and modern energy services by 2030.

PJM Opposed to Department of Energy Directive

More than 500 comments—some hundreds of pages long—were filed with the Federal Energy Regulatory Commission (FERC) by Monday’s deadline following Department of Energy Secretary Rick Perry’s September directive to FERC to change its rules to help coal and nuclear plants in wholesale power markets. The change proposed by Perry would mandate that plants capable of storing 90 days of fuel supplies at their sites get increased payments for providing “resiliency” services to the grid.

The largest grid operator, the PJM Interconnection, in comments asked regulators to reject the directive, calling the plan “unworkable.”

“I don’t know how this proposal could be implemented without a detrimental impact on the market,” said Andrew Ott, who heads up PJM Interconnection, noting that PJM feels Perry’s proposal is “discriminatory” and inconsistent with federal law.

Ahead of Monday’s comment period, Duke University’s Nicholas Institute for Environmental Policy Solutions and the Great Plains Institute hosted a webinar for state regulators explaining the legal and market implications of Perry’s directive.

FERC is allowing to Nov. 7 for parties to file responses to the initial comments.

Senate Committee Approves Trump EPA Nominees

The Senate Environment and Public Works Committee, in a 11 to 10 party line vote, on Wednesday advanced President Donald Trump’s nomination of Michael Dourson and William Wehrum to the full Senate where Senate Majority Leader Mitch McConnell (R-Ky.) can schedule a vote for confirmation. Dourson, a University of Cincinnati professor, longtime toxicologist and former EPA employee, is being considered to lead the U.S. Environmental Protection Agency (EPA) office of chemical safety and pollution prevention. Wehrum, who currently serves as partner and head of the administrative law group at Hunton & Williams—a practice focused on air quality issues—is slated for the post of assistant administrator of the EPA’s office of air and radiation.

The two nominees were questioned at a confirmation hearing Tuesday where much focus was placed on Dourson’s post as a special advisor at the EPA and his duties associated with that role. Committee Democrats questioned whether Dourson was violating the law by working at the EPA prior to being confirmed.

“Your appointment creates the appearance, and perhaps the effect, of circumventing the Senate’s constitutional advice and consent responsibility for the position to which you have been nominated,” 10 Democrats wrote in a letter to Dourson, warning that it would be “unlawful” for him to assume the duties of the position to which he’s been nominated.

Wehrum’s hearing, which was held earlier this month, focused in part on the Renewable Fuel Standard (RFS)—a program managed by the office of air and radiation.

“The RFS is a very complex program, and there are extensive provisions within the law that govern how it should be implemented, and even more extensive regulations that EPA has adopted,” Wehrum said. “So, I have to say I know a bit about the RFS. I don’t know everything about the RFS. So, I said this before, but I really mean it. If confirmed, part of what I need to do is fully understand the program and part of what I need to do is fully understand your concern, and I commit to you that I will do that senator.”

The other nominees approved by the committee are Matthew Leopold for assistant administrator for the Office of General Counsel, and David Ross, for the Office of Water.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

Trump Administration Repeals Clean Power Plan

The Nicholas Institute for Environmental Policy Solutions at Duke University

The Trump administration on Tuesday issued a Notice of Proposed Rulemaking that calls for the Clean Power Plan, which sets state-by-state carbon reduction targets for power plants, to be repealed.

“The Obama administration pushed the bounds of their authority so far with the CPP that the Supreme Court issued a historic stay of the rule, preventing its devastating effects to be imposed on the American people while the rule is being challenged in court,” said U.S. Environmental Protection Agency (EPA) Administrator Scott Pruitt. “We are committed to righting the wrongs of the Obama administration by cleaning the regulatory slate. Any replacement rule will be done carefully, properly, and with humility, by listening to all those affected by the rule.”

Former Obama-era EPA Administrator Gina McCarthy was surprised that the Trump administration issued a repeal without a proposal for a new rule.

“… I was surprised that they decided to repeal the rule without proposing anything else in its stead, because, as the science dictates and as the law dictates, the EPA’s obligated to regulate carbon pollution from this sector,” McCarthy said. “So it surprises me that they weren’t a little bit more sensitive to the court challenges and what the courts have been telling EPA for many years, which is, you need to regulate this.”

The notice argues that the Obama administration exceeded the EPA’s authority under the Clean Air Act when it issued the Clean Power Plan in 2015. But in doing so, the Trump administration’s proposal appears to push off the EPA’s obligation to regulate greenhouse gases in the near future. It proposes to withdraw the rule to avoid a D.C. Circuit Court decision on precisely the question that is used to justify the withdrawal—whether it can set targets for greenhouse gases under the Clean Air Act based on efforts that can be made outside of the power plant. The addition of a Notice of Proposed Rulemaking adds an additional administrative step that only delays action further.

To avoid unnecessary delays surrounding how to regulate greenhouse gases from power plants, I stated that the D.C. Circuit Court could rule on the legality of the Clean Power Plan. If a new Trump rule were finalized, the same issues would once again come before the same court, but with the parties switching places, with the defenders of the Obama rule challenging the Trump rule, and vice versa. A decision now would clear up any dispute over the extent of EPA’s authority to regulate greenhouse gas emissions.

The rule was stayed by the Supreme Court in February 2016 before it took effect. Dozens of states, however, are already making progress toward Clean Power Plan emissions targets. New analysis from the research firm Rhodium Group breaks down which states appear to be still on track to meet their Clean Power Plan targets even after repeal and which are not. Nationwide, the group projected that emissions from electricity would fall 27 to 35 percent below 2005 levels by 2030 even without the plan—but they could have declined even further if the rule had gone into effect.

Wheeler Nominated to EPA

President Donald Trump nominated Andrew Wheeler as deputy administrator of the U.S. Environmental Protection Agency. A former top aide to Sen. Jim Inhofe (R-Okla.) and lobbyist for energy companies, Wheeler has been the long-rumored pick to fill the EPA’s number two job.

“Andrew will bring extraordinary credentials to EPA that will greatly assist the Agency as we work to implement our agenda,” said EPA head Scott Pruitt in the White House announcement. “He has spent his entire career working to improve environmental outcomes for Americans across the country and understands the importance of providing regularity certainty for our country.”

Wheeler spent six years as the Republicans’ chief counsel and staff director on the Senate Environment and Public Works Committee, which Inhofe chaired. He also served at the EPA during the early 1990s.

Until he de-registered himself in August, Wheeler was a lobbyist for Murray Energy, the nation’s largest privately owned coal company. It’s not clear if his lobbying status will require a waiver by the EPA—Trump signed an executive order in January that prevents registered lobbyists from participating in “any particular matter” on which they lobbied in the past two years. But the executive order says the administration can grant a waiver.

As Pruitt Calls to End Renewables Credits, Study Showcases Oil Industry’s Dependence on Subsidies

EPA Administrator Scott Pruitt on Monday called on legislators to put an early end to tax credits for renewables (subscription).

“I would do away with these incentives that we give to the wind industry,” Pruitt said. “I’d let them stand on their own and compete against coal, natural gas and other sources. Let utility companies make real-time market decisions on those kinds of things, as opposed to being propped up through tax incentives and other types of credits that occur both at the federal and state level.”

Pruitt was referring to two tax credits approved by Congress in 2015: a 2.3-cent-per-kilowatt hour wind industry tax credit expiring in 2020 and a 30 percent solar industry tax credit expiring in 2022. He did not mention that competing energy sources like coal, oil and natural gas also benefit from billions of dollars in tax credits.

A study published in the journal Nature Energy finds that at the current price of $50 a barrel, nearly half the as-yet-to-be-developed crude oil fields in the United States are profitable when otherwise they would not be.

“Our analysis suggests that oil resources may be much more dependent on subsidies than previously thought, at least at prices near US$50 per barrel,” said the authors.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

Landmark Carbon Dioxide Concentration Passed; Marks New Climate Era

The Nicholas Institute for Environmental Policy Solutions at Duke University
The Nicholas Institute for Environmental Policy Solutions at Duke University

Climate change has entered a new phase, said the United Nations World Meteorological Organization (WMO) on Monday. The WMO reported that concentrations of carbon dioxide (CO2) “surged again to new records in 2016,” and it predicted that the annual average for CO2 would remain above 400 parts per million (ppm), 44 percent higher than before the Industrial Revolution, for generations.

The 400 ppm threshold, a symbolic red line in the methodical march of greenhouse gas concentrations, was continuously breached for the first time in 2015—a rise driven largely by fossil fuel emissions and aided by a strong El Niño, which “triggered droughts in tropical regions and reduced the capacity of sinks like forests, vegetation and the oceans to absorb CO2,” the WMO said. Last year’s jump in carbon dioxide was the largest annual increase on record (subscription).

“The year 2015 ushered in a new era of optimism and climate action with the Paris climate change agreement,” said WMO Secretary-General Petteri Taalas. “But it will also make history as marking a new era of climate change reality with record high greenhouse gas concentrations.” “The El Niño event has disappeared. Climate change has not  . . . Without tackling carbon dioxide emissions, we cannot tackle climate change and keep temperature increases to below 2 degrees Celsius above the pre-industrial era. It is therefore of the utmost importance that the Paris Agreement does indeed enter into force well ahead of schedule on 4 November and that we fast-track its implementation.”

Taalas added that improvements in the climate will be seen by 2060 if countries begin to lower their carbon dioxide emissions now.

Between 1990 and 2015, Earth experienced a 37 percent increase in radiative forcing—the warming effect on the climate—because of greenhouse gases from industrial, agricultural, and domestic activities, according to the WMO.

WMO’s announcement comes within a week of the National Aeronautics and Space Administration’s report that found September was the 11th consecutive month to set record high temperatures.

Study: Glacier Melt in Antarctica Could Help Predict Global Sea Level Rise

A number of research studies have suggested Antarctica’s ice is melting faster than previously thought, but two new studies may help better predict future Antarctica ice loss and global sea level rise. The studies examined the Pope, Kohler, and Smith glaciers—part of the Dotson and Crosson ice shelves—in West Antarctica.

“Our primary question is how the Amundsen Sea sector of West Antarctica will contribute to sea level rise in the future, particularly following our observations of massive changes in the area over the last two decades,” said University of California Irvine’s Bernd Scheuchl, lead author on the first of the two studies published in the journal Geophysical Research Letters. “Using satellite data, we continue to measure the evolution of the grounding line of these glaciers, which helps us determine their stability and how much mass the glacier is gaining or losing. Our results show that the observed glaciers continue to lose mass and thus contribute to global sea level rise.”

A second study published Tuesday in the journal Nature Communications found that a significant portion of Antarctica is subject to “intense unbalanced melting” revealing high rates of ice loss from glaciers’ undersides. It also blames receding glacial grounding lines for the ice loss—spurred by an influx of warm ocean water beneath the ice shelves.

The glacier that saw the most melt, the study says, was Smith. It lost about 1,000 feet of ice between 2002 and 2009, which authors think is “a strong piece of evidence” that these glaciers, along with the larger Amundsen region, were subjected to a large influx of warm ocean water during that period.

“If I had been using data from only one instrument, I wouldn’t have believed what I was looking at, because the thinning was so large,” said author Ala Khazendar, a researcher at NASA’s Jet Propulsion Laboratory, noting how the work shows how important it is to understand both the ocean circulation and seabed topography when determining future melt and sea level rise.

IEA: Significant Renewables Growth Expected by 2021

The renewable energy market is growing around the world, according to a study by the International Energy Agency (IEA). IEA raised its estimate of the amount of renewable energy on power grids 13 percent from its 2015 forecast. It forecasts a 825 gigawatt boost in capacity by 2021 (a 42 percent increase from today).

“We are witnessing a transformation of global power markets led by renewables and, as is the case with other fields, the center of gravity for renewable growth is moving to emerging markets,” said IEA Executive Director Fatih Birol.

The growth will mostly be driven by four countries: China, the U.S., India and Mexico. China is the leader.

“About half a million solar panels were installed every day around the world last year,” according to the report. “In China, which accounted for about half the wind additions and 40 percent of all renewable capacity increases, two wind turbines were installed every hour in 2015.”

In the United States over the next five years, renewable capacity is forecast to grow to 328.2 gigawatts from 221.1 gigawatts. During this period, solar PV is forecast to nearly triple—from 26.1 gigawatts to 77.5 gigawatts—and wind to grow nearly 71.5 percent.

“Renewables are and still remain dependent on policies … to create the right market rules and the right framework to attract investments,” said Paolo Frankl, head of the IEA’s renewable energy division.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

New York Joins Handful of Other States with Ambitious Clean Energy Targets

The Nicholas Institute for Environmental Policy Solutions at Duke University
The Nicholas Institute for Environmental Policy Solutions at Duke University

By 2030, half of the energy produced in the state of New York will come from renewables, according to a new policy adopted Monday by the state’s public service commission. The move is expected to reduce greenhouse gas emissions by 40 percent from 1990 levels (80 percent by 2050) and to attract billions in clean energy investment.

“New York has taken bold action to become a national leader in the clean energy economy and is taking concrete, cost-effective steps today to safeguard this state’s environment for decades to come,” said New York Gov. Andrew Cuomo. “This Clean Energy Standard shows you can generate the power necessary for supporting the modern economy while combatting climate change. Make no mistake, this is a very real threat that continues to grow by the day and I urge all other states to join us in this fight for our very future.”

The plan calls for New York to retain its nuclear reactors—though The Washington Post reports that those facilities don’t count as part of the 50 percent renewables target. According to New York regulators, doing so might cost $965 million over two years but could lead to net benefits of $4 billion due to avoided carbon dioxide emissions and air pollution. While supporters of this provision applaud New York’s effort to retain its emissions-free nuclear generation, opponents are likely to challenge the nuclear subsidies on the grounds they are discriminatory, hurt markets, and intrude on federal authority.

New York is not the first state to announce an ambitious greenhouse gas reduction target. In April 2015, California announced it planned to cut those emissions by 40 percent below 1990 levels in the same time frame with renewables increases. Like California, New York plans to phase in its renewables increase; 31 percent of its energy is to come from renewables by 2021 and 50 percent by 2030. Those targets are meant to give utilities and clean energy companies time to develop their business models.

The only states with higher renewables standards are Vermont, which set a target of 75 percent renewable power by 2032, and Hawaii, which set a target of 100 percent renewable power by 2045.

White House to Federal Agencies: Consider Climate Change Impacts

In an action with broad implications for thousands of projects, including energy and mineral development on public lands, natural gas import and export facilities, and transportation projects, the Obama administration issued final guidance on how federal agencies should consider greenhouse gas emissions and climate change impacts when conducting reviews under the National Environmental Policy Act (NEPA) (subscription).

“Focused and effective consideration of climate change in NEPA reviews will allow agencies to improve the quality of their decisions,” the guidance states. “Identifying important interactions between a changing climate and the environmental impacts from a proposed action can help Federal agencies and other decision makers identify practicable opportunities to reduce greenhouse gas emissions, improve environmental outcomes, and contribute to safeguarding communities and their infrastructure against the effects of extreme weather events and other climate-related impacts.”

The guidance, the product of a six-year effort by the White House Council on Environmental Quality, advises agencies to quantify projected greenhouse gas emissions of proposed federal actions whenever the necessary methodologies and data are available. It also encourages them to draw on their experience and expertise to determine the appropriate level and extent of quantitative or qualitative analysis required to comply with NEPA and to consider alternatives that would increase the climate-change resilience of the action and affected communities.

“From the public standpoint, we are now going to know what all of our decisions add up to in terms of impacting climate change,” said Christy Goldfuss, managing director of the Council on Environmental Quality. “You can think of all the different federal decisions, and how they all add up. We have numbers where we can actually say, ‘this is a huge decision, given the amount of greenhouse gases coming out of it.’ And that gives the public a chance to really weigh in on decision-making.”

Several media outlets pointed out that because the White House guidance is not a regulation, agencies are not legally bound to follow it.

Clean Power Plan Analysis: National Costs Low, State Costs Varied

Wednesday marked one year since the U.S. Environmental Protection Agency formally rolled out the Clean Power Plan, which aims to reduce carbon emissions from power plants. Even with the February stay by the U.S. Supreme Court, which halted implementation of the plan pending resolution of legal challenges, some say the plan is having an impact while others are finding more reason to explore the legality of the rule (subscription).

Should the rule survive judicial review, a new paper by the Nicholas Institute for Environmental Policy Solutions uses the Nicholas Institute’s Dynamic Integrated Economy/Energy/Emissions Model to evaluate Clean Power Plan impacts on the U.S. generation mix, emissions, and industry costs. It indicates that industry trends are likely to make Clean Power Plan compliance relatively inexpensive, with cost increases of 0.1 to 1.0 percent. But policy costs can vary across states, which might lead to a patchwork of policies that, although in their own best interests, could impose additional costs nationally.

“The answer is not the same for everyone in terms of what’s going to be the least-cost way for a particular state to approach this policy,” said lead author and Nicholas Institute Senior Economist Martin Ross. “Nationally, it would make the most sense to have a broadly coordinated policy where you can take advantage of the usual economic [tools] to spread the cost reductions around and pick up the most cost-effective sources for reducing emissions.”

Similar findings were presented at a conference of the National Association of Regulatory Utility Commissioners. Because of lower-than-expected natural gas prices, renewable power, and extended federal tax credits for that power, the country as a whole is set to meet the Clean Power Plan’s early goals, reports ClimateWire.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

Record Low Arctic Sea Ice Extent Points to Irreversible Changes

The Nicholas Institute for Environmental Policy Solutions at Duke University
The Nicholas Institute for Environmental Policy Solutions at Duke University

Scientists at the National Snow and Ice Data Center (NSIDC) said on Monday that Arctic sea ice cover of 5.607 million square miles on March 24 represented the lowest winter maximum since records began in 1979. That’s 5,000 square miles less than last year’s record low. Contributing to the ice extent loss were record high air temperatures and relatively warm seawater.

“It is likely that we’re going to keep seeing smaller wintertime maximums in the future because in addition to a warmer atmosphere, the ocean has also warmed up,” said Walt Meier, a sea ice scientist at NASA’s Goddard Space Flight Center. “That warmer ocean will not let the ice edge expand as far south as it used to. Although the maximum reach of the sea ice can vary a lot each year depending on winter weather conditions, we’re seeing a significant downward trend, and that’s ultimately related to the warming atmosphere and oceans.”

After this winter’s record ice lows, scientists expect the Arctic could be ice-free in the summer months in the next few decades.

“Sometime in the 2030s or 2040s time frame, at least for a few days, you won’t have ice out there in the dead of summer,” said John Walsh, chief scientist of the International Arctic Research Centre. “The balance is shifting to the point where we are not going back to the old regime of the 1980s and 1990s. Every year has had less ice cover than any summer since 2007. That is nine years in a row that you would call unprecedented. When that happens you have to start thinking that something is going on that is not letting the system go back to where it used to be.”

The effects of diminishing sea ice may not be limited to just the Arctic.

“The Arctic is in crisis,” said Ted Scambos, NSIDC lead scientist. “Year by year, it’s slipping into a new state, and it’s hard to see how that won’t have an effect on weather throughout the Northern Hemisphere.”

A new paper in the Journal of Climate linked the vanishing Arctic sea ice, along with other sea ice melting and global sea-level rise, to climate change. The authors, who used computer models and field measurements to explore whether Arctic sea ice loss has contributed to melting of the Greenland ice sheet, say that melting Arctic sea ice can block cold, dry Canadian air, increasing the flow of warm, moist air over Greenland and contributing to extreme heat events and surface ice melting. If the Greenland ice sheet completely melted, the paper says, the global sea level would rise about 20 to 23 feet.

U.S. Environmental Protection Agency Files Brief Defending Clean Power Plan

The D.C. Circuit is set to begin hearing oral arguments challenging the Clean Power Plan—the Obama administration’s rule to limit greenhouse gas emissions from the existing fleet of fossil fuel-fired power plants—in June. On Monday, the U.S. Environmental Protection Agency filed its defense of the Clean Power Plan, telling the court that the rule is well within the bounds of its authority (subscription). Dozens of states and industry groups last month called the rule a “breathtaking expansion” of the power Congress gave the EPA—with the Clean Air Act—to regulate greenhouse gas emissions.

“The rule reflects the eminently reasonable exercise of EPA’s recognized statutory authority,” the EPA brief says. “It will achieve cost-effective [carbon dioxide] reductions from an industry that has already demonstrated its ability to comply with robust pollution-control standards through the same measures and flexible approaches. The rule fulfills both the letter and spirit of Congress’s direction.”

It is expected that whichever side loses in June will appeal to the Supreme Court, which in February issued a stay—sending the rule back to the D.C. Circuit Court.

Renewable Energy Investment Outpaced Other Technologies: Study

Investment in renewable energy generation last year was higher than in new coal- and gas-fired power plants, according to a new report from the Frankfurt School-United Nations Environment Programme collaborating Centre for Climate & Sustainable Energy Finance and Bloomberg New Energy Finance (BNEF). In fact, renewables added more to global energy generation capacity than all other technologies combined—though they still only account for 10 percent of global electricity production.

“Global investment in renewables capacity hit a new record in 2015, far outpacing that in fossil fuel generating capacity despite falling oil, gas, and coal prices,” said Michael Liebreich, chair of the BNEF advisory board. “It has broadened out to a wider and wider array of developing countries, helped by sharply reduced costs and by the benefits of local power production over reliance on imported commodities.”

All investment in renewables—which includes new renewable energy capacity as well as early-stage technology, research and development—totaled $286 billion in 2015. That’s roughly 3 percent higher than the previous record set back in 2011.

Countries contributing some of the most to these numbers included China, which in 2015 invested $102.9 billion (a 17 percent increase from 2014), representing 36 percent of the global investment total; Chile ($3.4 billion, a 151 percent increase), India ($10.2 billion, a 22 percent increase), Mexico ($4 billion, a 105 percent increase) and South Africa ($4.5 billion, a 329 percent increase).

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

Humans Implicated in String of Record-Warmth Years

The Nicholas Institute for Environmental Policy Solutions at Duke University
The Nicholas Institute for Environmental Policy Solutions at Duke University

Human activities are the cause of this century’s record warm years, according to a study in the journal Scientific Reports.

“We find that individual record years and the observed runs of record-setting temperatures were extremely unlikely to have occurred in the absence of human-caused climate change,” the authors say. “These same record temperatures were, by contrast, quite likely to have occurred in the presence of anthropogenic climate forcing.”

The study, written before the release of 2015 temperature data, put the odds between 1 in 770 and 1 in 10,000 that 13 of the 15 warmest years spanning from 2000 to 2014 happened without human influence (subscription). With the inclusion of 2015 temperature data, the group’s computer simulations widened those odds to between 1 in 1,250 and 1 in 13,000, lead author Michael Mann, a professor of meteorology at Pennsylvania State University, told Reuters.

“Climate change is real, human-caused and no longer subtle—we’re seeing it play out before our eyes,” Mann said.

Mann and his co-authors ran statistical analyses of real-world measurements and comprehensive computer simulations of the climate system to distinguish human-caused climate change from natural climate variability, such as that triggered by volcanic eruptions and shifts in the sun’s output.

“2015 is again the warmest year on record, and this can hardly be by chance,” Stefan Rahmstorf, a co-author from the Potsdam Institute of Climate Impact in Germany, said. “Natural climate variations just can’t explain the observed recent global heat records, but man-made global warming can.”

Study: Low Electricity Costs and Low Emissions Not Mutually Exclusive

A new study by National Oceanic and Atmospheric Administration (NOAA) and University of Colorado Boulder researchers in the journal Nature Climate Change finds that the United States could reduce carbon dioxide emissions from electricity generation (using future anticipated costs for wind and solar) by more than 75 percent relative to 1990 levels by 2030 at approximately the same cost as 2012. The key? Using new high-voltage power lines to move renewables nationwide, eliminating the need to add new fossil fuel storage capacity.

“What the model suggests is we can get a long way, and wind and solar and natural gas can be a bridge,” said Christopher Clack of the Cooperative Institute for Research in Environmental Sciences at the University of Colorado Boulder. “There is a path that could be possible to achieve those goals, and it doesn’t necessarily need to drive up costs.”

Using NOAA’s high-resolution meteorological data, the researchers built a model to evaluate future cost, demand, generation, and transmission scenarios and found that with improvements in transmission infrastructure, the wind and the sun could supply most of the nation’s electricity at costs comparable to today’s.

“The model relentlessly seeks the lowest-cost energy, whatever constraints are applied,” Clack said. “And it always installs more renewable energy on the grid than exists today.”

In the expected future scenario—in which renewable energy costs continue to fall while natural gas costs rise—the model predicted that the power sector could cut emissions 78 percent compared with 1990 levels at an electricity cost of 10 cents per kilowatt-hour, up from 9.4 cents in 2012 (subscription). That finding is predicated on creation of a new high-voltage direct-current (HVDC) transmission grid, which according to the authors lowers the chance of energy losses, reducing utilities’ need to amass reserves of excess capacity through natural-gas-powered generators.

“With an ‘interstate for electrons,’ renewable energy could be delivered anywhere in the country while emissions plummet,” said Alexander MacDonald, co-lead author and former director of NOAA’s Earth System Research Laboratory. “An HVDC grid would create a national electricity market in which all types of generation, including low-carbon sources, compete on a cost basis. The surprise was how dominant wind and solar could be.”

Update to Social Cost of Carbon Unnecessary

A new interim report from the National Academies of Sciences, Engineering and Medicine suggests that there is little benefit to updating estimates of the social cost of carbon in the near term. Written by a 13-member expert panel, the report recommends ways to change federal technical support documents on the social cost of carbon to enhance estimates.

“We recommended against a near-term update to the social cost of carbon” based off the IPCC report’s finding, said Richard Newell of Duke University. Newell co-chaired the panel, which includes Sanford School Professor and Nicholas Institute for Environmental Policy Solutions Faculty Fellow Billy Pizer.

To set an efficient market price on carbon emissions, it’s helpful to know the social cost of those emissions—that is, the estimate of the economic damages (in dollars) associated with an increase in carbon dioxide emissions, usually one metric ton, in a given year. The last revised estimate, in 2015, was $36 per metric ton of carbon dioxide.

A final report will examine potential approaches for a more comprehensive update to social cost of carbon estimates and is expected in early 2017.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

Climate Pledges May Not Be Enough

The Nicholas Institute for Environmental Policy Solutions at Duke University
The Nicholas Institute for Environmental Policy Solutions at Duke University

The European Union (EU) is now the second body to submit an official climate target to the United Nations ahead of talks to reach a global climate agreement in Paris later this year. One of the world’s top emitters, the EU intends to reduce its emissions 40 percent (relative to 1990 levels) by 2030. This commitment is in addition to 2050 emissions reduction targets that a recent report published by the European Environment Agency claims may prove difficult to reach.

“The level of ambition of environmental policies currently in place to reduce environmental pressures may not enable Europe to achieve long-term environmental goals, such as the 2050 target of reducing greenhouse gas emissions by 80-95 percent,” the report said. It points to a 60 percent cut in transportation emissions toward which little progress has been made.

Another study that looks at commitments by all nations to curb the effects of climate change suggests that the U.N. goal of avoiding 2 degrees Celsius of warming by century’s end is unlikely to be met. According to the authors, to attain that goal, the agreement reached in Paris must not only be based on a shared commitment to creating “equitable access to sustainable development,” but must also be structured to facilitate dynamic and collaborative interactions between parties.

Negotiators aim to complete an agreement in Paris that would go into effect in 2020. All countries are due to announce their emissions reductions plans in June in Bonn.

Droughts in the Amazon Accelerating Climate Change

A severe drought in 2010 doubled the rate of tree mortality in the Amazon rainforest, causing a 1.4 billion ton loss in the forest’s uptake of carbon dioxide from the atmosphere. That’s the conclusion of a new study in Nature that finds droughts are causing the trees to exhale more carbon dioxide than they inhale. The authors say trees store a tenth less CO2 from the atmosphere during droughts, apparently because they are channeling their more limited energy reserves into growth.

“Here, we show for the first time that during severe drought, the rate at which they [tropical rainforests] ‘inhale’ carbon through photosynthesis can decrease,” said Christopher Doughty, one of the researchers. “This decreased uptake of carbon does not decrease growth rates but does mean an increase in tree deaths. As trees die and decompose, the concentrations of carbon dioxide in the atmosphere will increase, potentially speeding up climate change during tropical droughts.”

The study provides the first direct evidence of the rate at which individual trees in the Amazonian basin absorb carbon during a severe drought. An international research team compared the growth and photosynthesis rates of trees at 13 drought-affected and non-drought-affected rainforest plots across Brazil, Peru, and Bolivia. Researchers discovered that growth rates of the trees in the plots were unchanged but that photosynthesis rates on the six drought-affected plots slowed by some 10 percent over six months.

EIA Report Sees Growth in Wind, Solar

Electricity from renewable sources outpaced the growth of electricity from fossil fuel-fired plants in 2014, according to a new Energy Information Administration report. Though solar’s share of electricity production remained smaller than wind’s share, net generation of the former grew by more than 100 percent last year. Wind generation grew by 8 percent and is forecasted to grow by 16.1 percent this year and another 6.5 percent in 2016.

“Because wind is starting from a much larger base than solar, even though the growth rate is lower, the absolute amount of the increase in capacity is more than twice that of solar: 15 GW [gigawatts] of wind versus 6 GW of utility-scale solar between 2014 and 2016,” the EIA reports.

Ultimately, wind will see a net increase of 9.8 gigawatts—the most of any other power source in 2015. California and North Carolina will add the most utility-scale solar capacity to systems (73 percent combined).

“Given current growth rates, especially for solar and wind, it is quite possible that renewable energy sources will reach, or exceed, 14% of the nation’s electrical supply by the end of 2015,” noted Ken Bossong, executive director of the SUN DAY Campaign. “That is a level that EIA, only a few years ago, was forecasting would not be achieved until the year 2040.”

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

EPA Refines Pollution Rules

The Nicholas Institute for Environmental Policy Solutions at Duke University
The Nicholas Institute for Environmental Policy Solutions at Duke University

Last week the U.S. Environmental Protection Agency (EPA) was told by a federal appeals court that it could move forward with implementing a program to curb air pollution that crosses state lines. The Cross State Air Pollution Rule (CASPR) would require 28 states to reduce emissions of nitrogen oxides and sulfur dioxide by power plants. The rule establishes a two-step process: 1) The EPA determines if a state contributes more than 1 percent of the pollution causing a downwind state to exceed emissions standards to 2) The EPA using modeling analysis to determine state emissions targets (subscription). CASPR’s first phase would be implemented next year, with the final phase beginning in 2017.

Days later, the agency announced it’s making additional data available to elicit further comments on another controversial rule. In its Notice of Data Availability (NODA), the EPA points to areas of “concern” raised by stakeholders during the public comment period for its proposed Clean Power Plan, which aims to reduce carbon dioxide pollution from existing power plants. EPA Assistant Administrator Janet McCabe indicated that the agency hopes to get additional comments before the public comment period ends Dec. 1— specifically comments related to the trajectory of emissions reductions from 2020 to 2029, the way building blocks are established and the way in which state goals are calculated.

“We wanted to address issues where the feedback we were getting went beyond what we laid out in the preamble [of the Clean Power Plan],” she said.

Utility Dive and Bloomberg BNA break down stakeholder concerns in detail and describe how the EPA is looking to address them.

Along with the NODA, the EPA announced a supplemental proposal to reduce carbon pollution on tribal lands and territories housing fossil-fuel fired power plants. Like the Clean Power Plan does for states, the proposal sets area-specific goals for Indian country and territories and provides options for meeting those goals. The proposal, which relies on and builds upon measures outlined in the Clean Power Plan, would affect coal-fired power plants on lands belonging to three tribes—the Navajo Nation, the Ute Tribe of the Uintah and Ouray Reservation and the Fort Mojave Tribe—as well as plants in Puerto Rico and Guam.

EU Makes Climate Promise Ahead of U.N. Negotiations

Fresh off talks in Bonn, Germany, that were meant to make progress on identifying the information that countries will have to provide next year when making individual pledges for curbing greenhouse gas emissions, European Union leaders have announced a new emissions deal. It will cut greenhouse gas emissions 40 percent by 2030, compared with 1990 levels, and will increase energy efficiency and renewables by 27 percent. A “flexibility clause” was added to the final text to ensure that the EU can return to the targets after the U.N. summit in December 2015.

The deal sends a signal to the rest of the world to take action on a climate treaty at the upcoming Conference of the Parties in Paris. The EU is responsible for about one-sixth of the world’s greenhouse gas emissions.

Rising greenhouse gases are increasing the likelihood of “severe, pervasive and irreversible” impacts for people and ecosystems, according to a draft of the Intergovernmental Panel on Climate Change (IPCC) Synthesis Report. Due for approval and release Nov. 2, the report provides a summary of three other IPCC publications issued over the course of the last year. It is expected serve as a road map for upcoming U.N. negotiations.

According to a leaked draft of the report obtained by ClimateWire, to avoid a global temperature rise of 2 degrees Celsius above preindustrial levels, net global emissions must decrease 40–70 percent by 2050 and hit zero by the end of the century.

Study: 2010 BP Spill Left ‘Significant Quantities’ of Oil on Gulf Floor

Oil remnants from BP’s 2010 Deepwater Horizon spill have formed rings—roughly the size of Rhode Island—near the site of the blown-out well, according to a new study in the journal Proceedings of the National Academy of Sciences. The study suggests that “significant quantities” of crude are present near the site of the Macondo well.

“We don’t know with certainty how the oil reached the bottom,” said David Valentine, lead author and professor at the University of California-Santa Barbara. “We do provide hypotheses, that a combination of coagulation and bacterial growth drove the oil into a floc form and facilitated particles or droplets sinking to the seafloor. Some of the oil was certainly eaten by bacteria, and other components dissolved into the water.”

BP criticized the research, saying authors “failed to identify the source of the oil, leading them to grossly overstate the amount of residual Macondo oil on the sea floor and the geographic area in which it is found.”

During the study, researchers collected more than 3,000 samples, analyzing them for a hydrocarbon found in oil called hopane. What they traced represented 4–31 percent of the oil thought to be trapped deep in the ocean (as much as 16 percent of the total oil spilled).

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

Climate Change, EPA Rules Focus of McCabe Confirmation Hearing

The Nicholas Institute for Environmental Policy Solutions at Duke University
The Nicholas Institute for Environmental Policy Solutions at Duke University

Climate change, extreme weather and U.S. Environmental Protection Agency (EPA) rules to regulate greenhouse gas emissions from new and existing power plants were the focus of a confirmation hearing for Janet McCabe, President Barack Obama’s nominee to head the EPA’s Office of Air and Radiation.

In the hearing—at which lawmakers took jabs at one another on the impacts of climate change and criticized McCabe’s recent comments on extreme weather causes—the acting assistant administrator for air and radiation told the committee that if confirmed she would evaluate the full consequences of the EPA’s current and pending rules. She pointed to her work as a state regulator in Indiana, highlighting her sensitivity to the economic impact of environmental regulations.

“I come from Indiana, where people rely on coal,” she told the committee (subscription).

The Senate Environment and Public Works Committee has not announced when it will vote on McCabe’s nomination, which still requires approval by the full Senate.

Just a day earlier, EPA Administrator Gina McCarthy touted the draft rule for existing power plants, which is scheduled for release by June 1. “We are going to make them cost-effective, we are going to make them make sense,” McCarthy said at a conference. “That doesn’t mean it’s going to be so flexible that I’m not going to be able to rely on this as a federally enforceable rule.”

Flexibility for states was emphasized by McCarthy who insisted the EPA will give states the tools to curtail emissions that drive climate change and that the proposed rule will not threaten electric reliability or shutter large numbers of facilities.

EPA officials have met with more than 200 groups about the upcoming rule. Last week, the White House began its review of the rule—the final step before the EPA can publish it and gather formal comments from the public.

EIA Energy Outlook Predicts Decrease in Oil Imports

Net U.S. energy imports declined last year to their lowest level in more than 20 years, meaning U.S. net imports could reach zero within 23 years, according to the U.S. Energy Information Administration (EIA).

The finding is the first in a staged release of the EIA’s complete Annual Energy Outlook 2014. Future releases—running April 14 to April 30—will look at matters ranging from the implications of accelerated power plant retirements and lower natural gas prices for industrial production to light-duty vehicle energy demand and the potential for liquefied natural gas to be used as a railroad fuel.

Between 2012 and 2013, net energy imports decreased by 19 percent. The EIA cited increased growth in oil and natural gas production as the reason. Crude oil production grew 15 percent in 2013.

“In EIA’s view, there is more upside potential for greater gains in production than downside potential for lower production levels,” the report said. It noted that U.S. oil production should hit 9.6 million barrels per day by 2020.

Global Renewable Energy Investment Down as Tax Credits Resurface

Global investment in renewable energy fell 14 percent in 2013, according to a new report by the United Nations Environment Programme (UNEP), Bloomberg New Energy Finance and the Frankfurt School-UNEP Collaborating Centre for Climate & Sustainable Energy Finance. The drop in investment was attributed, in part, to energy policy uncertainty and the falling cost of renewable energy technology. The latter factor may seem counterintuitive but one of the report’s lead editors, UN energy expert Eric Usher said that the fall in the cost of the clean energy technologies, particularly solar, had “left some governments thinking that they had been paying too much and reviewed their subsidies.”

Even with investment down, the shift toward low-carbon sources hasn’t slowed. “The onward march of this sector is inevitable,” said Michael Liebreich of Bloomberg New Energy Finance.

Renewables accounted for 8.5 percent of power generated worldwide last year—up from 7.8 percent in 2012. Liebreich told Mother Jones that proprietary data about future investments suggest annual clean tech installations worldwide are likely to jump 37 percent to 112 gigawatts—a record level—by 2015.

Further incentives for renewables may be in the offing. Last week, the U.S. Senate Finance Committee approved a draft bill that includes some 50 temporary tax breaks, including one for renewable energy. The bill includes provisions for wind energy through an extension of the U.S. Renewable Energy Production Tax Credit, which was responsible for jumpstarting much of the last decade’s U.S. wind energy development. Provisions were also included for biofuel.

Congress is expected to pass the bill by the end of year, allowing businesses and individuals to continue to claim tax breaks on their 2014 taxes.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.