EPA Proposes Lower Biofuel Mandate

On November 21, 2013, in Uncategorized, by timprofeta
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

Editor’s Note: In observance of the Thanksgiving holiday, the Climate Post will not circulate next week. It will return Dec. 5. 

The U.S. Environmental Protection Agency (EPA) on Friday announced cuts to a federal mandate dictating how much ethanol must be blended into gasoline. The mandate—under the Renewable Fuel Standard—would have been scheduled to reach 18.15 billion gallons in 2014, up from 16.55 billion gallons this year. The EPA instead proposes to set the 2014 requirement at 15.21 billion gallons, equal to the 2012 mandate.

“We believe that the ethanol blend wall represents a circumstance that warrants a reduction in the mandated volumes for 2014,” the EPA said of the technically feasible amount of ethanol that can be used in today’s vehicles. The agency’s 204-page proposal also suggests rolling back the 2011 cellulosic biofuel target and refunding oil companies nearly $5 million for their costs in trying to meet it.

If finalized after public comment, the proposal is unlikely to have much of an impact on consumers, but it could affect sales of one of the primary ethanol crops: corn.

“I’m in a state of shock,” said Michael McAdams, president of the Advanced Biofuels Association, in a response similar to many others in the biofuels industry. “This rule is a departure from the last five and a half years.”

Refiners welcomed the reduced blending requirements, but warned they may not address long term problems.

“While we are pleased that EPA has taken steps to avoid the blendwall in 2014, we remain concerned that the proposed rule leaves open the possibility that the biofuel mandates will exceed the maximum amount of ethanol that can be safely added to our gasoline supply,” said Charles Drevna, president of the American Fuels & Petrochemical Manufacturers.

News of the proposed rule comes on the heels of a report by the National Research Council drawing attention to some of ethanol’s hidden costs (subscription). The report, which was co-authored by a Nicholas Institute for Environmental Policy Solutions researcher, finds that ethanol consumes so much energy and requires so much land use change that its impact on greenhouse gas emissions is at best neutral.

2010 BP Spill Data Made Public

A new website launched by BP contains raw, uninterpreted data from studies on the massive 2010 Gulf of Mexico oil spill and its effects on the environment and ecology of the area. It provides scientific data gathered as part of the official Natural Resource Damage Assessment that BP and the federal government agreed to during the disaster. The assessment also includes 2.3 million lines of water chemistry data collected since April 2010 as well as information on the composition of oil released from the Macondo well and analyses of the oil in various degrees of degradation and weathering.

More information covering oil, water, sediments, environmental toxicology, birds and marine life will be made available next year. BP is awaiting a ruling in a civil trial in New Orleans regarding just how much oil gushed into the Gulf and whether it was guilty of gross negligence for the spill. The oil giant is among the 90 companies said to have produced nearly two-thirds of the greenhouse gas emissions generated since the dawning of the industrial age, according to a new study published in the journal Climatic Change.

Warsaw Climate Talks Enter Final Days

As a new report suggests global carbon emissions from cement production and burning fossil fuels are on track to hit a record high this year, negotiations to reduce greenhouse gas emissions around the world entered their final week during the United Nations Climate Change Conference (subscription). The two-decades-old negotiations hit a few snags in producing an agreement to replace the Kyoto Protocol by 2015:

  • Japan—one of the world’s largest emitters of greenhouse gases—opted to drastically scale back its emissions reduction target. The new target calls for decreasing emissions by 3.8 percent from 2005 levels by 2020, rather than by 25 percent from 1990 levels, a goal set four years ago. According to Reuters, the change represents a roughly 3 percent rise from the earlier target. The new target reflects the country’s increased reliance on fossil fuel after idling of Japan’s nuclear fleet following the 2011 Fukushima Daiichi nuclear plant disaster, which the country is still cleaning up.
  • Negotiations on how to set up new carbon markets and global standards to cut greenhouse gas levels also broke down after developing nations refused to move forward until rich nations made more efforts to cut their own emissions. Further talks on the issues have been postponed until June 2014.
  • Poor countries walked out of the U.N. climate talks after rich nations refused to discuss climate change compensation until after 2015. The question of who is to blame for climate change is central for developing countries, which contend they should be given support from rich nations to green their economies. Meanwhile, forest protection pledges—specifically from Norway and the United Kingdom—were made and expected to be one of the only significant financial offers from richer, developed nations at the conference.

Despite all the setbacks, the U.N. did propose a draft document outlining a roadmap to a 2015 climate agreement. It clarifies some of the steps nearly 190 nations must take to reach a binding greenhouse gas reduction deal to go into effect in 2020.

If the Obama administration has its way, the 2015 agreement would for the first time make the United States and emerging powers like China equally obligated to curb carbon (subscription). According to State Department Special Envoy for Climate Todd Stern, the administration has begun crunching numbers to determine how much the United States can cut greenhouse gas emissions after 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.

The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

The 12-day United Nations Climate Change Conference, which aims to forge an agreement to cut climate-altering greenhouse gas emissions, began in Warsaw, Poland, this week. The goal set by the U.N.: limit warming to 2 degrees Celsius over pre-industrial levels.

Representatives from nearly 200 countries are debating an agreement that would take effect by 2020. Major breakthroughs are not expected at the conference, which is pervaded by a mood of “realism” about the scale of what can be achieved. The Washington Post reports the talks will only lay a foundation for a global agreement to be reached in time for the 2015 talks in Paris, France.

As the conference began, there were reminders of what’s at stake. Devastation caused by Typhoon Haiyan was on the minds of many, along with reports spelling out how nations are falling further behind their collective goal to reduce greenhouse gas emissions. The International Energy Agency (IEA), in its newly released World Energy Outlook, forecast energy-related carbon dioxide emissions to rise 20 percent by 2035, leaving the world on a trajectory for a long-term average temperature increase of 3.6 degrees Celsiusfar above the internationally agreed target of 2 degrees Celsius.

The U.N. Intergovernmental Panel on Climate Change also amended carbon dioxide estimates for policy makers in a report designed to provide guidelines for the representatives working to devise a climate agreement. The panel cut its estimate of total emissions since 1870 to 515 gigatons, down from 531 gigatons, and raised its estimate of total carbon emissions since 1750 to 555 gigatons, up from 545 gigatons.

Ethanol Mandate to Be Announced Soon

Although the IEA predicts fossil fuels will provide 75 percent of the global energy mix by 2035—causing oil prices to continue to rise—current U.S. prices for oil tumbled to their lowest in more than five months. Gas prices have fallen to their lowest in 33 months, in part due to the moderate decrease in oil prices.

Some view prospective ethanol volume requirements, which could be weakened for 2014 partly as a result of a decline in the price of renewable energy credits, as a contributor to the low gas prices. As early as this week, the U.S. Environmental Protection Agency could announce how many billions of gallons of ethanol refiners will be required to blend into gasoline and diesel fuel next year. Those numbers could be on par with 2012 totals if the agency sticks with a draft version of the mandate leaked in October.

The ethanol mandate was under fire this week, following an investigation by the Associated Press, which suggests it comes with an unadvertised environmental cost, namely incentivizing farmers to grow corn on environmentally sensitive land and increasing use of nitrogen fertilizers, leading to high nitrate levels in some water supplies.

Obama Names New Climate Advisor

Heather Zichal, a key architect of President Barack Obama’s Climate Action Plan, stepped down from her post last week as top energy and climate change advisor. Zichal said she will take time to “decompress and take on a few projects” before deciding on formal next steps. In a statement, Obama praised Zichal’s five years of service to the administration.

“She crafted my energy and climate change agenda in the 2008 campaign, then again on my presidential transition, and as my top energy and climate advisor at the White House, she has been a strong and steady voice for policies that reduce America’s dependence on foreign oil, protect public health and our environment, and combat the threat of global climate change,” Obama said.

Zichal’s deputy, Dan Utechformerly a senior adviser to Energy Secretary Steven Chu and Hillary Clinton when she was senator—will take over the role. In his new position, Utech will be tasked as the lead coordinator of the administration’s stand on energy and environmental issues such as the Keystone XL pipeline and new rules to cut greenhouse gas emissions from power plants. In his first blog post since assuming the new role, Utech praised the president’s energy and climate strategy for helping oil production hit a 24-year high.

 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.