Trump Administration Poised to Finalize Clean Power Plan Review, Craft Climate Policy Strategy

The Nicholas Institute for Environmental Policy Solutions at Duke University

A Trump administration review of the Obama administration’s Clean Power Plan, which sets state-by-state carbon reduction targets for power plants, is expected to be finalized this fall, said the U.S. Environmental Protection Agency (EPA) in a court filing last week.

The EPA was expected do away with the signature climate regulation, which the Supreme Court stayed in early 2016 and which would require the U.S. electricity sector to cut its carbon dioxide emissions by up to 32 percent, from 2005 levels, by 2030. But, according to Politico, the Trump administration has suggested that it might consider a replacement at the urging of power companies fearful that a repeal could trigger courtroom challenges that would lead to years of regulatory uncertainty.

If, for reasons of regulatory certainty and legal prudence, the Trump administration does conclude that some limits on the plants’ carbon emissions are a good idea, The Hill reports that the regulation is likely to focus solely on carbon reductions that plants can achieve, mainly by improving the efficiency of coal-fired generators. By contrast, the existing rule ordered reductions based not just on efficiency gains but also on use of relatively low-carbon power sources like natural gas as well as renewable fuels. Hence carbon reductions achievable through a Trump rule would be much lower than former president Barack Obama’s rule, and emissions might actually rise if efficiency gains discouraged the closure of coal plants by making them cheaper to operate.

If the Trump administration does move to repeal the Clean Power Plan, it will have to change the cost-benefit calculus to justify the move, reported ClimateWire (subscription). According to the Obama-era EPA, every $1 spent on compliance might buy $6 in benefits, in part by averting premature deaths and health problems. The Trump administration’s cost-benefit analysis, promised last March as part of its announced review of the rule, could telegraph how it might recalculate the benefits of curbing climate change as it moves to eliminate other Obama-era regulations.

Announcement of the Clean Power Plan review’s finalization came as officials from the White House’s policy councils and representatives from federal agencies, including the EPA and the U.S. Department of Energy, met to begin plotting a climate and energy strategy, one aimed at new policies that break from the Trump administration’s extensive efforts to repeal climate regulations and to push back on the public perception that the administration doesn’t support climate change science, a perception reinforced by EPA Administrator Scott Pruitt’s launching of a critique of the validity of that science.

“This was a forward-looking meeting on strategy and how to prioritize the administration’s climate goals and objectives moving forward,” said an administration spokesman said. “This particular meeting was more big picture strategy.” The purpose was to bring together “a whole group of stakeholders … that are involved in climate issues and looking ahead to what policy initiatives we may put in place.”

Nevertheless, on Monday the EPA announced that it is preparing to submit a final report to the White House on rules that are ripe for repeal because they may burden fossil fuel production and use—a report required of all federal agencies by Trump’s March executive order on regulations, E.O. 13783, and by subsequent Office of Management and Budget guidance.

Ontario Joins California and Quebec in Carbon Market

Ontario joins California and Quebec in their cap-and-trade program, which aims to reduce greenhouse gas emissions. Announced on Friday, the agreement, which takes effect Jan. 1, creates the world’s second largest carbon market behind the European Union’s market.

“Climate change is a global problem that requires global solutions,” said Kathleen Wynne, premier of Ontario. “Now more than ever, we need to work together with our partners at home and around the world to show how our collaboration can lead to results in this international fight. Today’s carbon market linking agreement will add to the success we have already seen in reducing greenhouse gas emissions in Ontario, Québec and California. We are stronger together, and by linking our three carbon markets we will achieve even greater reductions at the lowest cost.”

The system puts a “cap” on the amount of pollution companies in certain industries can emit. If they exceed those limits, they must buy allowance permits at auction or from other companies that come in under their pollution limits. Linking the carbon markets means participating companies will be able to use carbon allowances and offsets issued by any of the three governments at their quarterly auctions. The addition of Ontario significantly expands the allowance market, according to California Air Resources Board spokesman Stanley Young.

“Ontario’s market is roughly 40 percent to 50 percent the size of California’s carbon market,” he said. “Quebec’s is 15 percent of California’s.”

Transportation Emissions under Microscope

The Federal Highway Administration announced that the 2016 Transportation Clean Air Rule, which requires state and local planners to track and curb pollution from trucks and cars on federal highways in their jurisdictions, goes into effect today.  Legal pressure following a Trump administration announcement, in May, to “indefinitely delay” the rule earned its reinstatement.

With the rule back in place, the Federal Highway Administration can resume working with state and local planners to find transportation options that reduce greenhouse gas emissions by the first compliance deadline of October 2018.

Originally finalized days before President Donald Trump’s inauguration, the rule requires state and metro transport agencies and planning organizations to track carbon dioxide emitted by vehicles traveling on the national highway system. The agencies also must set two-year emissions-reduction targets, four-year targets, or both, and they must periodically report on their progress.

A Federal Register notice indicates that the Trump administration will still propose a rule repeal by the end of the year—possibly finalizing it in spring 2018.

Some states, including California and Massachusetts, already require highway planners to consider the climate impacts of roads. For California in particular, history, legal precedent and regulatory defiance has given the state the unique authority to write its own air pollution rules and set its own auto emissions standards. For now, the federal waiver allowing California to set these standards will not be revoked, according to U.S. Environmental Protection Agency Administrator Scott Pruitt. It appears California may re-open discussions on its greenhouse gas limits for cars and trucks for 2025 if automakers and the Trump administration embrace tougher targets that the state is seeking for later years.

“The price of getting us to the table is talking about post-2025,” said Mary Nichols, chair of the California Air Resources Board. “California remains convinced that there was no need to initiate this new review of the review and that the technical work was fully adequate to justify going ahead with the existing program, but we’re willing to talk about specific areas if there were legitimate concerns the companies raised — in the context of a bigger discussion about where we’re going post-2025.”

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.

Studies Examine Climate Change Threat Level, Recalculate Carbon Budget

The Nicholas Institute for Environmental Policy Solutions at Duke University

Absent efforts well beyond those described in the Paris Agreement—to limit warming to well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit that increase to 1.5 degrees Celsius—climate change could pose a deadly threat to most humans by century’s end. This finding was suggested by an international group of climate science and policy experts in a pair of recently published studies.

To avoid the worst consequences of climate change, a paper published in the Proceedings of the National Academy of Sciences (PNAS) said the world would have to take aggressive measures to curtail the use of fossil fuels and emissions of short-lived climate pollutants such as methane. In addition, we would also have to extract carbon dioxide from the air and sequester it before it can be emitted.

According to the findings, which were originally published by the University of California’s Scripps Institution of Oceanography, there is a 5 percent chance of catastrophic change within roughly three decades, and a smaller chance that it would extinguish human life. It proposed two new classifications for climate change: “catastrophic,” meaning that adaptation would be difficult for most people, and “unknown,” or “existential,” meaning that adaptation would be impossible.

“There is a low probability that the change will be catastrophic,” said the study’s lead author, Veerabhadran Ramanathan, a professor of climate and atmospheric sciences at Scripps. “But you would not get on an airplane if you thought there was a 5 percent chance that it was going to crash.”

The researchers defined their proposed risk categories on the basis of guidelines established by the Intergovernmental Panel on Climate Change and previous independent studies. Even a global temperature increase limited to 1.5 degrees Celsius (2.7 degrees Farenheit)—the Paris Agreement’s aspirational goal—is categorized as “dangerous.” An increase greater than 3 degrees Celsius (5.4 degrees Farenheit) could be “catastrophic,” and an increase greater than 5 degrees Celsius (9 degrees Farenheit) could lead to “unknown” but potentially existential threats. For humans, catastrophic impacts include widespread famine and the exposure of more than 7 billion people to heat-related mortalities.

Policy and science experts, including Ramanathan, relied on the PNAS findings to compile a report on potential warming containment efforts. That report pointed to the need for greater weight on subnational government action and a sharp uptake in mature clean energy technologies—such as wind, solar, biogas, and geothermal—coupled with aggressive electrification of transportation and building energy use.

A separate analysis published in the journal Nature Geoscience says the Paris Agreement’s 1.5 Celsius aspirational goal may be more feasible than many think. It makes a fresh estimate of the necessary carbon budget, including updating measurements of the emissions and warming that have already occurred, and shows that the global carbon emissions budget that meets that goal is equivalent to 20 years of current global annual emissions. But other researchers have raised questions about the analysis—which, if correct, would have very large implications for climate policymaking. Aside from concerns about the new study’s methods and assumptions, broader questions about the definition of the carbon budget and how it should be calculated are now swirling.

Senators, Local Level Decision Makers Focus on Climate Action

After some speculation following comments by Secretary of State Rex Tillerson, the White House, on Monday, reaffirmed its commitment to withdraw from the Paris Agreement.

“There has been no change in the United States’ position on the Paris agreement,” White House Deputy Press Secretary Lindsay Walters told CNN. “As the President has made abundantly clear, the United States is withdrawing unless we can re-enter on terms that are more favorable to our country.”

Despite the White House’s stance on the global climate accord, others are taking steps to acknowledge and, in some cases, take specific action on the issue. Republican Sen. Lindsey Graham on Tuesday told guests attending a climate change conference convened at Yale University by former Secretary of State John Kerry that he supports a carbon tax to reduce greenhouse gas emissions.

“I’m a Republican. I believe that the greenhouse effect is real, that CO2 emissions generated by man is creating our greenhouse gas effect that traps heat, and the planet is warming,” said Graham. “A price on carbon—that’s the way to go in my view.”

Sen. Graham’s reinvocation of these concepts means that there may be some ability to have conversations again about the bipartisan solution to climate change (subscription).

State and local leaders associated with the C40 Cities Climate Leadership Group—a network of megacities dedicated to addressing climate change—remain focused on faster climate action. As part of a Climate Week convening, several mayors discussed how that action falls on them now that the United States is pulling out of the Paris Agreement.

“As mayors, our responsibilities also became even clearer. It’s not enough to reach our ‘80 by 50’ goal,” said New York City Mayor Bill de Blasio, referencing New York City’s earlier commitment to cut greenhouse gases by 80 percent by midcentury, “or to go along with the fantastic goal of keeping warming to two degrees Celsius. If the U.S. government is backing away, we had to step forward.”

On Wednesday, 91 U.S. cities and Denmark unveiled a climate plan that aims to enhance cooperation among companies, governments, regions and cities in an effort to promote green growth. The initiative is dubbed Partnering for Green Growth and the Global Goals 2030. Also, North Carolina joined 14 other states in the U.S. Climate Alliance—a bipartisan group of states committed to reducing their share of greenhouse gas emissions in line with the goals that countries agreed upon as part of the Paris Agreement.

“In the absence of leadership from Washington, North Carolina is proud to join the U.S. Climate Alliance, and we remain committed to reducing pollution and protecting our environment,” said North Carolina Gov. Roy Cooper. “So much of North Carolina’s economy relies on protecting our treasured natural resources, and I’m committed to maintaining the quality of their air we breathe for generations to come.”

Report: Energy Outlook to 2040

World energy consumption will increase 28 percent by 2040, the U.S. Energy Information Administration (EIA) projects in its latest International Energy Outlook 2017. Areas in China and Asia will consume the most energy—representing as much as 60 percent of increased demand.

The report indicates that fossil fuels will continue to dominate the world energy mix, making up 77 percent of energy use in 2040, while renewables, despite growing faster than any other fuel source during the coming years, will represent just 17 percent of world energy consumption by 2040. Demand for coal will remain relatively flat with consumption projected to decline from 27 to 25 percent between 2015 and 2040.

Global natural gas consumption is seen increasing by 1.4 percent per year over the forecast period.

“Abundant natural gas resources and rising production—including supplies of tight gas, shale gas, and coalbed methane—contribute to the strong competitive position of natural gas,” the report indicates.

Nuclear power is expected to grow the fastest behind renewables, with consumption increasing about 1.5 percent per year.

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.

Senate Approves Funding for U.N. Climate Agency; House Votes on Funding for Methane Rule

The Nicholas Institute for Environmental Policy Solutions at Duke University

The Senate Appropriations Committee voted 16 to 14 to approve an amendment to restore funding for the United Nation’s Framework Convention on Climate Change (UNFCCC) in a spending bill for the State Department, setting up a negotiation with the House over its version of the State funding bill, which does not fund the U.N. climate agency.

“[This] fits in with Secretary of State [Rex] Tillerson’s desire that we both continue to monitor the changes in the world’s climate and that we keep a seat at the table,” said Sen. Jeff Merkley, D-Ore., who sponsored the amendment.

The Senate bill would direct $10 million to the body that oversees U.N. efforts to address climate change, despite President Donald Trump’s proposal to cut funding in his first budget draft earlier this year. Since 1992 the United States has contributed some 20 percent of operational funding—$6.44 million—for the secretariat of the UNFCCC and last year provided 45 percent—$2 million—to its science wing, the Intergovernmental Panel on Climate Change.

The Senate bill would not restore U.S. funding for the Green Climate Fund, which helps poor countries adapt to climate change.

The vote on the bill came between two highly destructive hurricanes that representatives of some small island nations are pointing to as they press their case for wealthy countries to pay not just for adaptation but also for climate-related “loss and damage.”

“If ever there was a case for loss and damage, this is it,” Ronny Jumeau, U.N. ambassador from Indian Ocean island nation the Seychelles, told Reuters, referring to Hurricane Irma and other recent storms.

“Hurricane Irma graphically shows the destructive power of climate change and underscores that loss and damage isn’t some abstract concept, but the reality of life today for the people who contributed least to the problem,” said Thoriq Ibrahim, Maldives’ environment minister who chairs the U.N. negotiating bloc Alliance of Small Island States.

On Wednesday, the House voted to block funding for an Obama-era U.S. Environmental Protection Agency (EPA) effort to limit methane emissions from new oil and gas drilling sites. EPA Administrator Scott Pruitt had imposed a two-year delay on the implementation of the 2016 regulation to review the rules and potentially roll them back. But in July, a federal appeals court blocked the Trump administration from eliminating the methane rule.

DOE Solar Program Hits Target Early; Funding Issued for Cybersecurity

The U.S. Department of Energy (DOE), this week, announced that efforts to make solar power more cost-competitive hit a key target. The average price of utility-scale solar is now 6 cents per kilowatt-hour (kWh)—a price hit three years ahead of a target DOE set through the SunShot Initiative in 2011.

“It’s important to celebrate the progress we’ve made, and be realistic about the challenges that lie ahead,” said Dan Simmons, acting assistant secretary for energy efficiency and renewable energy. “Solar’s costs have dramatically declined, but electricity rates have not. As we experience greater penetration of solar [photovoltaics], we experience new challenges.”

DOE attributed the early milestone to rapid declines in the cost of hardware.

In the same announcement, DOE said it will spend $82 million to research energy storage and technologies that could help grid operators detect problems rapidly not only to reduce physical and cyber vulnerabilities, but also to enable consumers to manage electricity use.

Separately, the DOE also announced plans to fund $20 million in energy cybersecurity projects through an array of national labs, universities and private companies.

“This investment will keep us moving forward to create yet more real-world capabilities that the energy sector can put into practice to continue improving the resilience and security of the country’s critical energy infrastructure,” said Energy Secretary Rick Perry.

Hurricanes Raise Climate Change Issue

The devastation following two hurricanes—Harvey and Irma—that made landfall in the United States this month and last have renewed debate about climate change. On a plane ride from Columbia, Pope Francis—who has spoken out about the issue previously—weighed in on the debate.

“If we don’t turn back, we will go down,” said Pope Francis. “Those who deny it should go to the scientists and ask them. They are very clear, very precise. They [world leaders] decide and history will judge those decisions.”

Although many in the Trump administration are not discussing climate change, it is rumored that National Economic Council Director Gary Cohn will host an energy and climate discussion with international officials.

The invitation, obtained by Politico, says the gathering is an “opportunity for key ministers with responsibility for these issues to engage in an informal exchange of views and discuss how we can move forward most productively.”

A White House official told The New York Times that the meeting was intended to be an informal discussion to help the Trump administration find a way to fulfill the president’s pledge to reduce emissions without harming the American economy.

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.

Hurricanes Increase Attention to Climate Change, Shed Light on Infrastructure Concerns

The Nicholas Institute for Environmental Policy Solutions at Duke University

Hurricane Irma is shaping up to be a potentially catastrophic storm that remains on course to hit Florida by Sunday. Coming immediately after Hurricane Harvey, Irma is increasing attention to the relationship of severe weather events to climate change. Throughout the past few decades, hurricanes in particular have drawn attention to the need to fight climate change, with scientists recognizing that although climate change is not the cause of hurricanes, “a warmer planet will produce bigger and more destructive hurricanes.” What is unclear, however, is when American politicians will conclude that the severity and frequency of big storms requires more action to reduce global warming pollution.

Whatever the political reaction after Harvey and Irma, the storms are making clear their implications for energy infrastructure. The hazard with hurricanes are the associated winds, storm surge and, most of all, rain. Already, energy companies in the state are bracing for the hazards that Hurricane Irma, which registered at a category 5 on Wednesday, could bring.

When Houston providers were hit by Hurricane Harvey last month, they experienced limited power outages thanks to investments—smart meters and a fault location, isolation and service restoration system—made after Hurricane Ike in 2008. Still, oil refineries, chemical plants and shale drilling sites have reported Harvey-triggered flaring, leaks and chemical discharges—releasing more than 1 million pounds of air pollutants in the week after the storm.

Adrian Shelley, director of the Texas office of Public Citizen, noted that the Houston area has a “deep concentration of fuel production in this one area that’s so intensely vulnerable.”

In an op-ed in The Conversation experts Andrew Dessler, Daniel Cohan and Katharine Hayhoe write that “today, wind and solar power prices are now competitive with fossil fuels across Texas. Across the country, these industries already employ far more people than coal mining. Electric cars may soon be as affordable as gasoline ones and be charged in ways that help balance the fluctuations in wind and solar power.” 

And Rep. Fred Upton (R-Mich) and Valerie Brader write in The Hill that “as Hurricane Harvey has taught us, making sure our energy resources are safe, secure and plentiful should not be a partisan issue. It’s an issue we can’t afford to wait on.”

“It makes you realize, these megastorms, if you haven’t been hit by one, your worst-case scenario is nowhere near a true worst-case scenario,” said Daniel J. Kelly, the executive director of the New Jersey Office of Recovery and Rebuilding, as he recalled his state’s struggle to respond to Hurricane Sandy.

Trump Announces Picks for NASA, Other Climate-Related Posts

On Tuesday, the Trump administration sent 46 nominations to the Senate for confirmation, among them Rep. Jim Bridenstine of Oklahoma to head up the National Aeronautics and Space Administration (NASA). Bridenstine doesn’t have a background in science—he studied economics, business and psychology at Rice University. Before he became a Republican congressman in 2012 he worked as executive director of the Tulsa Air & Space Museum & Planetarium and served as a Navy combat pilot.

Last year, he sponsored a bill called the American Space Renaissance Act, which proposed broad, ambitious goals for the nation’s space program, including directing NASA to devise a 20-year plan. Although he wants Americans to return to the moon and is an advocate for commercial space flight, NPR reported that Bridenstein expressed skepticism that humans are causing climate change.

Science magazine reported that Democrats in the Senate may question Bridenstine about comments he made in 2013, during his first term in the House, while arguing for additional support for weather research. “Mr. Speaker, global temperatures stopped rising 10 years ago,” he said. “Global temperature changes, when they exist, correlate with sun output and ocean cycles.”

Although at the time Bridenstine claimed that any changes in global temperature were linked to natural cycles and not increases in carbon dioxide in the atmosphere from industrial activity, he has since acknowledged that those emissions do play a role in climate change.

But in a 2016 interview with Aerospace America, he suggested that any efforts to lessen the nation’s carbon footprint would be economically detrimental.

“The United States does not have a big enough carbon footprint to make a difference when you’ve got all these other polluters out there,” he said. “So why do we fundamentally want to damage our economy even more when nobody else is willing to do the same thing?”

Six other nominees would, if confirmed, also have a say about climate and energy policy.

  • Timothy Gallaudet, a rear admiral in the U.S. Navy, is the nominee for Assistant Secretary of Commerce for Oceans and Atmosphere. He has experience in assessing the national security impacts of climate change.
  • Matthew Z. Leopold, former General Counsel of the Florida Department of Environment Protection and a former attorney at the U.S. Department of Justice, Environment and Natural Resources Division, is the nominee for Assistant Administrator of the Environmental Protection Agency, General Counsel.
  • William Northey, currently serving his third term as Iowa Secretary of Agriculture, is the nominee for Under Secretary of Agriculture for Farm Production and Conservation.
  • David Ross, currently serving as the director of the Environmental Protection Unit for the Wisconsin Department of Justice, is the nominee for an Assistant Administrator of the Environmental Protection Agency, Office of Water.
  • Bruce J. Walker, founder of Modern Energy Insights, Inc., is the nominee for an Assistant Secretary of Energy, Electricity, Delivery and Energy Reliability.
  • Steven E. Winberg, a veteran of Consol Energy and the Batelle Memorial Institute, is the nominee for an Assistant Secretary of Energy, Fossil Energy.

Nuclear Construction Continuing in Georgia as Southeast Utilities Roll Back Plans

Utilities in Georgia are pressing ahead with plans to build two huge nuclear reactors in the next five years—the only nuclear units still under construction nationwide after South Carolina utilities SCANA’s South Carolina Electric & Gas and Santee Cooper opted to end construction of the V.C. Summer Nuclear Station’s two reactors. The proposal calls for completion of the Georgia reactors at the Alvin W. Vogtle generating station near Augusta, which is already home to two existing nuclear units built in the 1980s.

“Completing the Vogtle 3 and 4 expansion will enable us to continue delivering clean, safe, affordable and reliable energy to millions of Georgians, both today and in the future,” said Paul Bowers, chairman, president and CEO of Georgia Power. “The two new units at Plant Vogtle will be in service for 60 to 80 years and will add another low-cost, carbon-free energy source to our already diverse fuel mix.”

Meanwhile, Duke Energy Florida, Duke Energy Carolinas, and Dominion Virginia Power separately announced plans to rollback efforts to develop additional new reactors— moves that made the future of the United States nuclear industry even more unclear.  Right now, as much as 90 percent of nuclear power could disappear over the next 30 years if existing units retire at 60 years of operation—the current maximum length of operating licenses. A Nicholas Institute for Environmental Policy Solutions study explores how the potential loss of existing nuclear plants in the Southeast interacts with the regions other electricity sector challenges—among them, increasing natural gas dependence, demand uncertainty, and emerging technology—and it proposes steps states can take to address these challenges.

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.