EPA Makes Historic Announcement: First Greenhouse Gas Rule for New Power Plants

The Nicholas Institute for Environmental Policy Solutions at Duke University

The U.S. Environmental Protection Agency (EPA) released long-awaited greenhouse gas rules for new power plants this week. Using the Clean Air Act, the agency standard would set the first national limits on the amount of carbon dioxide (CO2) emissions new power plants can emit. The EPA proposed the rule after delaying it several times since July 2011.

Power plants are the largest source of  CO2 in the nation, accounting for approximately 40 percent of these emissions, according to the Energy Information Administration. The rule basically requires new coal plants to emit the same amount of CO2 as an average plant fueled by natural gas—causing U.S. coal shares to slip following the announcement. While some in Congress already are threatening to nullify the rule, plummeting natural gas prices had much of the same effect, driving the decline of existing coal-fired facilities and giving way to power plants fueled by natural gas.

The news was met with mixed reactions. Some were calling it the “demise of coal-fired power generation” and a “job killer,” while others viewed it as a step in the right direction to fight climate change.

Energy: At What Cost?

The New York Times describes how technological breakthroughs in natural gas and oil extraction, coupled with efficiency, are “inching” the U.S. toward energy independence—but at what environmental cost? Nearly two years after an explosion on an offshore oil platform sent millions of gallons of oil into the Gulf of Mexico, deepwater drilling is picking up. But a leak on an oil rig in the North Sea prompted some to think back to BP’s 2010 Deepwater Horizon Disaster, the world’s worst marine oil spill. Although this leak doesn’t appear to be as serious as the BP spill, some are predicting it could take six months before the problem is fixed.

Meanwhile a new survey says 63 percent of Americans think it’s possible to develop shale oil reserves without harming the environment. But it appears the controversial drilling method may undermine attempts to store carbon dioxide underground.

Energy and environment also took center stage in Santa Barbara as CEOs of industry and environmental organizations converged at the Wall Street Journal’s ECO:nomics conference. Repeated throughout the conference was the idea that public policy is inadequate to the task of tackling the world’s energy challenges. Yet when pressed, Tesla Motors founder and clean tech notable Elon Musk said public policies such as a carbon tax are “ideal.”

Carbon Caps: One Step Forward, Two Steps Back

In California, where the nation’s only economy-wide cap-and-trade program is moving forward, officials announced plans to postpone the program’s first allowance auction from Aug. 15 to Nov. 14. The later start date will give California more time to link its program with that of its Western Climate Initiative (WCI) partner, Quebec. WCI just appointed Anita Burke as organization’s first executive director. Forward progress will be challenging because of a lawsuit challenging the cap’s use of offsets, or reductions outside the cap. The lawsuit alleges that offsets represent reductions that would have occurred with or without public policies.

Meanwhile the U.S. airline industry dropped its unsuccessful lawsuit against Europe’s cap-and-trade program. The European Union emission trading scheme seeks to bring airlines taking off and landing in Europe under its emissions cap. Airlines would be required to purchase allowances at auction. The move comes as European Union Climate Commissioner Connie Hedegaard quietly visited Washington this week to discuss transatlantic climate issues, including U.S. airlines’ opposition to the program.

In dueling opinion pieces, the Washington Post renews calls for a carbon tax or cap-and-trade, while the Wall Street Journal says models cannot pin much to climate during the past decade. The Potsdam Institute for Climate Impact Research has attempted to more accurately model the future impacts of climate change.

Extreme weather—the same that may be bringing bats to Texas and causing birds to adjust their ranges—is linked to human-caused greenhouse gas emissions, according to two reports. In fact, climate change is amplifying risk of storms, rising seas and floods—particularly in small island states and poor regions. Reports such as these have spurred an effort to identify trees that could thrive as climate change develops. Human-caused climate change may also further the spread of Chagas’ disease and potentially worsen autoimmune disease such as multiple sclerosis, impairing cognitive function, according to new studies. The latter study found that warmer temperatures lower mental processing speeds and memory recall.

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 Temperatures May Bring More Than Just Early Spring Flowers

The Nicholas Institute for Environmental Policy Solutions at Duke University

Washington, D.C.’s famed cherry blossoms—now celebrating their centennial—decided to spring one on visitors, peaking well before the arrival of most Cherry Blossom Festival–goers. Spring’s forward leap is also causing coupling confusion among flowers and pollinators.

Above-average temperatures are responsible for these early blooms, marking this the fourth warmest winter on record, according to the National Oceanic and Atmospheric Administration (NOAA). NOAA predicts the warm streak will continue for the next three months—particularly in the already steamy southern states of Louisiana, Alabama, and Mississippi. Several newly released studies make the connection between this extreme weather and man-made heat-trapping pollution, says blogger Theo Spencer. Updated records of global temperatures, meanwhile, indicate the world has warmed by around 0.75 Celsius since 1900.

These warming temperatures may also be putting some five million people in the United States at risk for increased coastal flooding, according to a new Climate Central study. South Florida, southern Louisiana, and the Carolinas top the list of states with the most land to lose if sea level rises one meter. By the end of the century rising seas could cost near $2 trillion if temperatures keep rising. Nearly $1.4 trillion in costs could be avoided, Reuters reports, if temperature increases were limited to near 2 degrees Celsius.

And with the spring thaw comes reports of the ongoing melting of Arctic sea ice, opening new shipping lanes in the harsh region. One agency is looking for ways to use underwater sensors to handle the increased activity without harming the environment.

Cheap Natural Gas, Costly Crude

Mild temperatures are also driving natural gas futures lower, with prices hovering around their ten-year low. The dip in natural gas prices is bad news for investors, but good for farmers who will get an extra boost in the form of low fertilizer prices, says Forbes.

While the shale boom and warmer Eastern climes are causing natural gas prices to plummet, the upward march at the gasoline pump continues unabated. According to AAA, gasoline is over $4 a gallon in seven states—Alaska, California, Connecticut, Hawaii, Illinois, New York and Washington—as well as the District of Columbia. A statistical analysis of 36 years of monthly gas prices and domestic oil production by the Associated Press revealed there is no link between U.S. oil production and gas prices at the pump. Meanwhile a new survey finds a number of academic economists say market forces, not government policy, account for changes in gasoline prices.

The high prices, up more than 17 percent this year, are taking a toll on consumer confidence, nudging sales of electric motorcycles, raising the price of hybrids and causing an uneasiness in the markets.

President’s Energy Tour

A new poll suggests persistently high gasoline prices are eroding President Obama’s public approval numbers. The White House points to new Energy Information Administration data to say the president is doing more than enough to produce energy on federal lands, while others—citing the same data—claim he is doing too little.

To underscore his efforts, the president set out on a four state, two-day tour that wraps up today in Cushing, Okla. Politico reports the President will sign a directive expediting permits for the southern portion of the Keystone XL pipeline in Cushing—where the southern pipeline is slated to begin. Midwest oil hits a bottleneck in Cushing on its way to the Gulf of Mexico, according to CNN.

Signing the permit is a move sure to be unpopular with environmental groups and Obama faces a taste of green anger today in Columbus, Ohio, where he’s concluding his tour with an address at Ohio State University. Students, including some former Obama campaign workers, are planning a rally to push the president away from fossil fuels, according to 350.org. However, a new a Gallup poll released today shows 57 percent of Americans support the Keystone pipeline

In Cushing, Obama will also be talking about his commitment to domestic energy production—dubbed the “all of the above” energy strategy. Author Bill McKibben blasts this strategy: “Burning all the oil you can and then putting up a solar panel is like drinking six martinis at lunch and then downing a VitaminWater.” Others oppose it for different reasons: the National Review’s Jim Geraghty says it “rejects many options,” while Allen Schaeffer of the Diesel Technology Forum worries about policies “that clearly prioritize favored energy sources over other energy sources.”

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.

 

More than 100 Coal Plants Shutting—But How Much Difference Will It Make?

The Nicholas Institute for Environmental Policy Solutions at Duke University

Editor’s Note: This is the last edition of The Climate Post with writer Mason Inman. Watch for the Post’s return March 22 with a new writer, the Nicholas Institute’s Director of Strategy and Operations, Jan Mazurek.

After public pressure, Chicago will shut two aging coal-fired power plants, and the owner of one of the power plants, Midwest Generation, may shut its other four coal plants in Illinois. Since the start of 2010, more than 100 coal plants have been slated for early retirement.

A major reason for coal plants shutting has been public opposition to pollution from coal. Also, looming requirements by the U.S. Environmental Protection Agency (EPA) for stringent pollution controls could take a toll on the coal industry, while boosting the market for pollution control devices. One huge coal plant in New Mexico lost a legal battle with the EPA to avoid having to install a more effective type of pollution-control equipment.

But what really has the coal industry “frightened” is cheap natural gas, the result of a boom in hydraulic fracturing, or fracking, of shale deposits. But demand for natural gas may soon grow, since more natural gas vehicles are already in the works, and an announcement by President Obama that he’ll expand tax credits for alternative vehicles to include those powered by hydrogen and natural gas.

How Clean is the Clean Energy Standard?

Meanwhile, Sen. Jeff Bingaman introduced the Clean Energy Standard Act of 2012, which would force the largest utilities to meet targets starting in 2015 that by 2035 would ramp up to require 84 percent clean energy—defined as sources that create less greenhouse gases than modern coal plants. If enacted, which analysts rated as unlikely, the law would benefit natural gas, at least initially, but several renewable energy groups endorsed the bill.

However, last month a study led by former Microsoft executive Nathan Myhrvold found that switching from coal to gas would lead to only a slight drop in warming by the end of the century, so achieving “substantial reductions in temperatures” compared with use of coal would require “rapid and massive deployment” of very low-emissions energy such as solar and wind.

This fits with an analysis last year from the National Center for Atmospheric Research, whose lead researcher concluded switching to natural gas “would do little to help solve the climate problem.” Such findings led activist Bill McKibben to argue natural gas is not a “bridge fuel,” but rather “a rickety pier extending indefinitely out into a hotter future.”

Meanwhile, plans are under way to expand exports of U.S. coal with new shipping terminals in the Pacific Northwest and a “tremendous increase” in capacity at a Louisiana port. At CERAWeek, a major meeting for the oil and gas industry, the most popular discussion about U.S. natural gas is the “prospect of exporting it,” an issue Deputy Energy Secretary Daniel Poneman said the administration is “looking at closely.”

China Puts on the Brakes

The growth of China’s coal production is expected to slow down—part of a general slowing for the country in 2012.

In the annual meeting of China’s parliament, Chinese Premier Wen Jiabao announced a lower target for economic growth—7.5 percent, the lowest in seven years—and would shift from an export-focused economy to instead emphasize domestic consumption.

Wen also said the country will “put an end to blind expansion in industries such as solar energy and wind power”—possibly referring to oversupplies of wind turbines and solar panels. China’s wind industry has exploded from six turbine manufacturers in 2004 to more than 100 today, leading to manufacturing capacity that’s larger than the demand and a large number of projects awaiting connections.

China had “imbalanced, uncoordinated, and unsustainable development,” Wen said. The country had missed half its major targets for energy conservation and environmental protection, largely because they “have not transformed the economic development model,” said Zhang Ping, minister of the National Development and Reform Commission.

The government also announced it will create stricter laws for air pollution, and an official said two-thirds of Chinese cities would likely fail to meet the new standard.

Hockey Stick in a Knife-Fight

Climate researcher Michael Mann has been under attack by Virginia’s Attorney General, Kenneth Cuccinelli, who has been trying to force Mann’s former employer, the University of Virginia, to release documents on Mann’s work so he could “determine whether or not fraud had been committed.” But the Virginia Supreme Court turned down Cuccinelli’s request, which the Union of Concerned Scientists called “a victory for science in Virginia.”

Mann has become a lightning rod for his research on ancient climates and for creating the famous “hockey stick” graph showing rising temperatures in recent decades—a tale recounted in his new book, The Hockey Stick and the Climate Wars.

He said scientists are in a tough position, because they’re in a “knife-fight” with climate change skeptics, but scientists “can’t play by the rules of knife-fighting ourselves.”

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.

Rising Oil, Gasoline Prices Push Politicians and Reporters to Utter “Nonsense”

The Nicholas Institute for Environmental Policy Solutions at Duke University

In a major speech on energy at the University of Miami, President Obama said rising gasoline prices are a “painful reminder” of the need for alternatives. He was on the offensive, trying to counter criticisms of the GOP presidential candidates—including Newt Gingrich, who promised he’d get gasoline down to $2.50 a gallon.

Countering calls to “drill, baby, drill,” Obama called the GOP candidates’ ideas “bumper sticker” strategies, “not a plan.” Reiterating his call for an end to oil and gas tax breaks, Obama called them “outrageous” and “inexcusable.”

Also, some Democrats called for dipping into the U.S. strategic oil reserves to try to bring down prices. However, this notion seemed based on the misconception that the availability of oil in the U.S. has a big influence on the price.

Rising oil prices, argued Bloomberg columnist Caroline Baum, “tap into a barrel of nonsense,” making people “go all wobbly in the head.” Backing up that idea is Media Matters’ laundry list of misconceptions common in energy reporting, which concluded that the only way to become less vulnerable to oil price spikes is to “use less oil. Period.

Move To Natural Gas—But Will It Help?

In his speech, Obama announced a new $30 million research grant to boost the number of vehicles running on natural gas.

Natural-gas-powered trucks are becoming more popular among big fleets, refueling stations are spreading, and some companies are creating better storage tanks for compressed natural gas.

This push for natural gas vehicles is “the hottest energy fad in Washington” according to a Wall Street Journal editorial titled “Boone-Doggle,” since the fad has been spurred in part by petroleum billionaire T. Boone Pickens and his “Pickens Plan.”

Two former U.S. officials argued for a twist on the natural gas vehicle, calling for cars that can run on methanol, an alcohol that can be “efficiently and inexpensively produced from natural gas,” according to an MIT report.

Globally, natural gas vehicles have increased exponentially, with most of the growth in the past decade in Asia and Latin America.

However, a new climate modeling study by Nathan Myhrvold, former Chief Technology Officer of Microsoft, found that switching from coal to natural gas would do little to slow global warming.

Meanwhile, in the Washington Post, a bipartisan group of current and former Congressmen, called for taxes on greenhouse gas emissions as a way to fight climate change, lower oil imports and raise revenue that could help spur clean energy industries and reduce the debt. Beyond the authors of this op-ed, there may be further bipartisan support for such a plan.

EPA Greenhouse Gas Limits Face Appeals Court

In federal court this week, energy industry groups challenged the U.S. Environmental Protection Agency (EPA) over its move to regulate greenhouse gas emissions.

One line of argument being used is the science on climate change is not settled, so the EPA should not be allowed to regulate greenhouse gases. By putting climate science on trial, it’s been dubbed the “Scopes trial for climate change.”

The plaintiffs are also arguing that in issuing the “tailoring rule,” which limits greenhouse gas rules only to the biggest emitters, the EPA overstepped its bounds.

The judge hearing the case found the tailoring argument strange, saying that if the alleged harm is regulatory burden, but the remedy is a heavier regulatory burden, then the plaintiffs’ argument “doesn’t even make good nonsense.”

Gene Therapy for Climate Change

Climate Central lampooned geoengineering—ideas for planetary-scale projects to cool Earth—with its own set of not-so-serious proposals, including giving Maalox to livestock.

A research project at the Mote Marine Laboratory sounds like it might be another of these far-fetched plans, but it’s for real. A geneticist is investigating gene therapy for coral reefs—or, more specifically, for the bacteria that live symbiotically with the corals—to help them adapt to climate change.

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.