The Nicholas Institute for Environmental Policy Solutions at Duke University

A new report from Moody’s outlines how the credit rating agency will evaluate the impact of climate change in its ratings for state and local bond issuers. The report warns cities and states to prepare for climate change or face increased difficulty maintaining or obtaining higher credit ratings.

Ratings from Moody’s also help determine interest rates on bonds issued by cities to fund roads, buildings and other civic projects. Cities not adequately preparing for climate change, then, may face higher rates.

“The interplay between an issuer’s exposure to climate shocks and its resilience to this vulnerability is an increasingly important part of our credit analysis, and one that will take on even greater significance as climate change continues,” the report notes.

Moody’s uses six indicators to assess exposure to the physical climate change, including hurricanes and extreme-weather damage as a share of the economy, and the share of homes in a flood plain.

Moody’s identifies Florida, Georgia, Mississippi and Texas as the states most at risk for damage from climate change. It says it will assess both a city’s ongoing risk from climate trends and climate shock from extreme weather events such as natural disasters, floods and droughts.

“What we want people to realize is: If you’re exposed, we know that. We’re going to ask questions about what you’re doing to mitigate that exposure,” said Lenny Jones, a managing director at Moody’s. “That’s taken into your credit ratings.”

Mayors Sign Climate Charter

More than 50 North American cities signed the Chicago Climate Charter Tuesday during the North American Climate Summit in Chicago, where former President Barack Obama spoke, calling cities, states and nonprofit groups “the new face of leadership” on climate change.

“Obviously we’re in an unusual time when the United States is now the only nation on Earth that does not belong to the Paris agreement,” Obama said. “And that’s a difficult position to defend. But the good news is that the Paris agreement was never going to solve the climate crisis on its own. It was going to be up to all of us.”

The mayors, who attended the summit hosted by Chicago Mayor Rahm Emanuel, hailed from cities across North America, including Mexico City, San Francisco and Phoenix.

“Climate change can be solved by human action,” said Emanuel (subscription). “We lead respectively where there is no consensus or directive out of our national governments.”

The charter calls for mayors to achieve a percent reduction in carbon emissions at least as stringent as the Paris Agreement; to quantify, track and report emissions; to support flexibility for cities to take action on climate issues; and to incorporate climate issues into emergency planning, among other provisions.

The charter also calls for cities to work with scientific and academic experts to find solutions. Some mayors have specifically agreed to commitments to expand public transportation and invest in natural climate solutions such as tree canopy and vegetation.

Study: Melting Arctic Sea Ice Will Lead to Increased Drought in California

Scientists have linked rapidly melting Arctic sea ice to warmer ocean temperatures and higher sea levels. Now new research shows it could also reduce rainfall in California, worsening future droughts in the state. By mid-century, according to a study by Lawrence Livermore National Laboratory published Tuesday in the journal Nature Communications, loss of ice in the Arctic and warming temperatures there could drop California’s 20-year median for rainfall by as much as 15 percent.

“Sea-ice loss of the magnitude expected in the next decades could substantially impact California’s precipitation, thus highlighting another mechanism by which human-caused climate change could exacerbate future California droughts,” the study says.

The authors describe a series of meteorological events that lead to formation of storm-blocking air masses in the North Pacific—masses similar to the so-called Ridiculously Resilient Ridge, a nickname given to the persistent region of atmospheric high pressure that occurred over the Northeastern Pacific Ocean that kept rain from making landfall during California’s 2012–2016 drought. Although the study doesn’t attempt to explain that drought, its lead author, climate scientist Ivana Cvijanovic said it could help scientists understand future weather patterns.

“The recent California drought appears to be a good illustration of what the sea-ice-driven precipitation decline could look like,” she said.

Previous studies hypothesized that the North Pacific atmospheric ridge is due to increased ocean surface temperatures and heat circulation in the tropical Pacific. The new study elaborates on that understanding by describing the relation of Arctic sea-ice loss and tropical convection.

The authors say large-scale warming of the Arctic surface and lower atmosphere affects the way heat travels from Earth’s lower latitudes into the Arctic, in turn causing circulation changes in the deep tropics that eventually boost the buildup of a giant high-pressure system, like the Ridiculously Resilient Ridge, off the California coast. In normal winters, high and low-pressure systems alternate. But when there’s a ridge, the wet and wintry Pacific storms instead slide north.

“We should be aware that an increasing number of studies, including this one, suggest that the loss of Arctic sea ice cover is not only a problem for remote Arctic communities, but could affect millions of people worldwide,” said Cvijanovic.

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 Virginia State Air Pollution Control Board recently unanimously approved draft regulations to cut carbon emissions from power plants and to link the state with the Regional Greenhouse Gas Initiative (RGGI), a nine-state carbon cap-and-trade program, in 2019. The draft plan aims to cap emissions from the state’s electricity sector beginning in 2020 and to reduce them 30 percent by 2030.

“The threat of climate change is real, and we have a shared responsibility to confront it,” said outgoing Gov. Terry McAuliffe at the time of the order. “As the federal government abdicates its role on this important issue, it is critical for states to fill the void.”

The draft rule proposes two starting levels for Virginia’s carbon cap: 33 million or 34 million tons, starting in 2020—decreasing by roughly 3 percent each year. The state’s Department of Environmental Quality aims to finalize and present the rule to the air control board for final approval next year.

The rule, which is expected to deliver a boost to renewable and energy efficiency in the state, could increase average residential bills by about 1 percent, commercial bills by 1.1 to 1.4 percent, and industrial bills by 1.3 to 1.7 percent by 2031, according to modeling work conducted on behalf of the state’s Department of Environmental Quality.

New Jersey, a state that Gov. Chris Christie withdrew from RGGI in 2011, is expected to rejoin the group when Gov.-elect Phil Murphy takes office.

EPA Holds Hearing on Repeal of Clean Power Plan

The U.S. Environmental Protection Agency (EPA) hosted a two-day hearing in West Virginia this week on its proposal to terminate the Clean Power Plan, which sets state-by-state reduction targets for power plants. The West Virginia hearing is the only one of its kind scheduled on the proposal to repeal the Clean Power Plan, though written public comments are being accepted by the EPA through Jan. 16.

Finalized by the EPA in 2015, the plan sought to reduce emissions from power plants to 32 percent below 2005 levels by 2030. But the Supreme Court stayed the plan after energy-producing states sued the EPA, saying it had exceeded its legal reach.

More than 250 people were signed up to present opposing and supporting views for the plan’s repeal, as speakers delivered comments simultaneously in three hearing rooms.

In the heart of coal country, there were many coal supporters who said the Clean Power Plan would cost utilities billions of dollars, raise energy bills and result in the loss of coal mining jobs. Others spoke out against the repeal, citing concerns over health and the acceleration of climate change if the plan did not take effect.

Trump Administration Issues Permit for Arctic Drilling

For the first time in two years, the federal government issued a permit to for drilling in the Arctic Ocean. The permit allows the Italian oil and natural gas company Eni U.S. Operating Company Inc. to begin exploratory drilling from a man-made island off Oliktok Point in the Beaufort Sea as soon as next month.

“Achieving American energy dominance moved one step closer today with the approval of Arctic exploration operations on the Outer Continental Shelf for the first time in more than two years,” said the Interior Department’s Bureau of Safety and Environmental Enforcement.

Just weeks before leaving office, former President Barack Obama used the rarely invoked Outer Continental Shelf Lands Act to ban new offshore leasing in large swaths of the Atlantic and Arctic oceans. But the Trump administration has worked to reverse that and other rules reining in the energy sector—issuing an executive order in April to review the Obama plan.

Granting of the permit to Eni comes as the Trump administration considers opening up Alaska’s Arctic National Wildlife Refuge to oil and gas development. The Senate Budget Committee approved the measure Tuesday in a 12–11 party line vote.

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

Editor’s Note: The Climate Post will not circulate next Thursday due to the Thanksgiving holiday. It will return November 30.

Although the world’s greenhouse gas emissions leveled out between 2014 and 2016, new studies presented this week at the United Nations climate talks in Bonn, Germany, suggest that emissions will rise 2 percent in 2017.

“The temporary hiatus appears to have ended in 2017,” wrote Stanford University’s Rob Jackson, who along with colleagues at the Global Carbon Project tracked 2017 emissions to date and projected them forward in the journal Environmental Research Letters.

“Economic projections suggest further emissions growth in 2018 is likely,” wrote the authors.

The primary driver of the rising emissions increase is a 3.5 percent increase in China’s emissions due to decreased use of hydropower and an uptick in coal use. India is expected to see a 2 percent rise in emissions. Meanwhile, the United States, the world’s second largest emitter behind China, is projected to experience a 0.4 percent decline in emissions.

The studies add urgency to the efforts of those in Bonn to negotiate the terms of the 2015 Paris Agreement, the global treaty that aims to limit global warming. Corinne Le Quéré, lead author of the Global Carbon Budget 2017 study and director of the University of East Anglia’s Tyndall Centre for Climate Research, said the timeframe for meeting Paris Agreement targets is shortening: “Our expectations had always been that emissions would grow, but perhaps not as steeply as this.

“With global CO2 emissions from human activities estimated at 41 billion tonnes for 2017, time is running out on our ability to keep warming well below 2 degrees C, let alone 1.5C,” Le Quéré added.

COP 23: Coal, Finances, and Subnational Support

As signatories to the United Nations’ Framework Convention on Climate Change (COP 23) finish the second week of international climate talks in Bonn, Germany, their focus remains on hammering out the details of the Paris Agreement, the global treaty aiming to limit global warming to well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit that increase to 1.5 degrees Celsius.

How exactly the needed actions will be financed is yet to be seen.

“We need all financial players—public, private, domestic, international—and including markets and regulators, to work together effectively to mobilize at least $1.5 trillion in climate finance that is needed every year,” said Eric Usher, head of Finance Initiative at the U.N. Environment Programme.

Now that the United States is the only country not supporting the Paris Agreement—President Donald Trump announced in June that it would withdraw from the agreement—the administration’s only appearance at the conference focused on fossil fuels.

George D. Banks, special adviser to President Trump on international energy issues, led a panel with top American energy executives, offering that “without question, fossil fuels will continue to be used, and we would argue that it’s in the global interest to make sure when fossil fuels are used that they be as clean and efficient as possible. This panel is controversial only if we choose to bury our heads in the sand.”

Despite the Trump administration’s stance on the agreement, U.S. states and cities are looking to take action on climate change. This week, 20 states and 50 cities signed a pledge to abide by the emissions reduction targets of the Paris agreement.

“It is important for the world to know, the American government may have pulled out of the Paris agreement, but the American people are committed to its goals, and there is nothing Washington can do to stop us,” former New York City mayor Michael Bloomberg said in Bonn.

The group is vowing to take measures, such as reducing coal-fired power and investing in renewable energy and efficiency, which would substantially reduce its carbon output.

Study: A Warming Planet Makes Harvey-like Storms More Likely

In the wake of Hurricane Harvey, some researchers pointed to the increased likelihood of extreme rain events as the planet warms, but a new study in the journal Proceedings of the National Academy of Sciences goes further. It supports the idea that the specific risk of such events is already on the upswing because of humans’ contributions to climate change. According to the study author, Massachusetts Institute of Technology hurricane expert Kerry Emanuel, since the end of the 20th century, global warming has helped increase the annual likelihood of Harvey-like rainfall in Texas by 6 percent. By century end, that probability could rise to 18 percent.

To better understand how climate change is skewing those odds, Emanuel generated 3,700 computerized storms for each of the three climate models used in the study. He situated Texas storms in the climates of the years from 1980 to 2016. In these climates, he found that an event producing 20 inches of rain was extremely rare. When he performed a similar analysis in the projected climates of the years 2080 to 2100, Harvey’s 33 inches of rain in Houston became a once-in-a-100-year event, rather than a once-in-a-2,000-year event, and for Texas as a whole, the odds increased from once in 100 years to once every 5.5 years.

“The changes in probabilities are because of global warming,” Emanuel said.

In the study, global warming helped slow hurricanes by pushing land and ocean temperatures closer together, leading to the kind of longevity witnessed with Harvey, but the other and greater effect of that warming is the atmosphere’s capacity to hold moisture.

“If [general circulation] slows down, then places near the coast will get more rain,” Emanuel said. “But the main reason our technique shows increasing rainfall is that there’s more water in the air.”

The significance of this study, Emmanuel noted, is to alert city planners to the changing probabilities of large-scale hurricanes in Texas.

“It is important for those people who will rebuild Houston and rethink its infrastructure to understand the magnitude of the risk and how it will change over time,” he said.

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

This week, signatories to the United Nations’ Framework Convention on Climate Change (COP 23) meet in Bonn, Germany, to discuss implementation of the Paris Agreement, a global treaty that aims to limit global warming to well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit that increase to 1.5 degrees Celsius. Before the meeting wraps up Nov. 17, signatories hope to lay the groundwork for the conclusion of the Paris agreement terms at COP24 in Poland, including rules on transparency, accounting, markets, and resilience.

“The conference in Bonn is a preparatory meeting for the next COP in Poland, where the fine print of the Paris Agreement will be decided,” said Jochen Flasbarth, state secretary in the German environment ministry. “In a nutshell, it’s about shaping the transparency rules on how states measure and report their progress in climate mitigation. The Paris Agreement is built as a bottom-up structure, where the [parties] themselves decide the contributions they can and want to make. This is why it’s most important to make sure that every party abides by their own targets and honestly reports about their efforts and results. So even though it’s very hard to communicate this to the public, the negotiations in Bonn are actually about the heart of the Paris Agreement.”

Since COP23 kicked off Nov. 6, two holdouts from the 2015 Paris Agreement signing—Syria and Nicaragua—have become signatories. That leaves the United States as the only country in the world not supporting the deal to limit global greenhouse gas emissions. President Donald Trump announced in June that the U.S. would withdraw from the climate agreement, a process that will be complete in 2020.

A significant focus at the COP23 is actions of cities, states, and other subnational actors that are stepping up to address climate change. Later this week, California Gov. Jerry Brown, together with former New York City mayor Michael Bloomberg, will release a new report highlighting the progress of U.S. states, cities, and businesses in addressing climate change.

U.S. states, such as California, are signaling even further climate action. Brown proposed linking his state’s carbon market with the European Union’s and announced plans to cooperate on market design and implementation in Brussels, Tuesday.

“I would hope that we could explore linking California and the European Union,” Brown said. “We are already linked with Quebec. We are about to be joined by Ontario. Other states are also considering joining. That would be a concrete investment kind of move that California and other states and provinces could become a part of.”

Study Finds Strong Link Between Climate Change and Human Activities

A scientific report, released last week, says that it is “extremely likely” the use of fossil fuels and human activities are the main cause of the global temperature rise that has created the warmest period in the history of civilization. According to that report, a global average temperature increase of 1.8 degrees Fahrenheit in the last 115 years has led to record-breaking weather events and temperature extremes.

“It is extremely likely that human activities, especially emissions of greenhouse gases, are the dominant cause of the observed warming since the mid-20th century,” says the Climate Science Special Report, part of the Fourth National Climate Assessment. “For the warming over the last century, there is no convincing alternative explanation supported by the extent of the observational evidence.”

The assessment, mandated every-four-years by the Global Change Research Act, analyzes human and naturally caused global changes and their effects on everything from agriculture and energy production to human health. Produced by 13 federal agencies and peer-reviewed by the National Academy of Sciences, it is the United States’ most definitive statement on climate change science.

The Climate Science Special Report affirms that the United States is already experiencing more extreme heat and rainfall events and larger wildfires in the West, but sea-level rise may be the clearest evidence of climate change. More than 25 coastal U.S. cities are experiencing increased flooding, and seas could rise by from 1 to 4 feet by the year 2100. A rise of more than eight feet is “physically possible” with high emissions of greenhouse gases. Of the rapidly escalating levels of those gases in the atmosphere, the report states, “there is no climate analog for this century at any time in at least the last 50 million years.”

The report cautions that current climate models are likelier to underestimate future warming than to overestimate it. Although those models have accurately predicted the past few decades of warming, they may fail to capture how warm Earth can get. Researchers may not fully understand climate tipping points—difficult-to-predict points of no return.

Trump USDA Nominee Withdraws from Consideration

Sam Clovis, President Donald Trump’s pick for chief scientist of the Department of Agriculture, withdrew himself from consideration for the post. Clovis, whose nomination hearing was scheduled for this month, blamed the political tone in Washington for his decision in a letter to Trump.

“The political climate inside Washington has made it impossible for me to receive balanced and fair consideration for this position,” Clovis wrote.

The professor and conservative radio talk show host from Iowa, who served as national co-chair of Trump’s campaign, had come under fire after foreign policy adviser George Papadopoulos pled guilty to charges related to brokering of a relationship between the Trump campaign and Russian officials. Clovis was also scrutinized for his climate change skepticism and lack of an advanced science degree, a 2008 farm bill requirement of appointees to the position.

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

As the United Nations prepares to welcome delegates from across the world to Bonn, Germany, on Monday for the annual Conference of Parties meeting (COP23), the U.N. Environment Program (UNEP) has released its yearly “Emissions Gap” report indicating a disparity between the world’s stated ambitions on climate in the Paris Agreement and what actions are actually needed.

The report indicates the present national pledges under the agreement are only one third of the reduction in emissions required by 2030 to meet targets, which aim to limit global warming to well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit that increase to 1.5 degrees Celsius. The pledges by countries, it says, would lead to temperature rises of as much as 3 degrees Celsius or more by the end of this century, but it would make the chance of getting to 4 degrees Celsius or more of warming considerably smaller.

Although the gap between commitments could be large, the report suggests that it is still possible to close it in a cost-effective way. A large portion of reductions come from six specific efforts: solar energy; wind energy; efficient appliances; efficient passenger cars; aforestation; and stopping deforestation.

“These six categories sum up a potential of 18.5 GtCO2e in 2030 (range: 15-22 GtCO2e), making up more than half of the basic potential,” the report says. “Equally important, all these measures can be realised at modest cost, and are predominantly achievable through proven policies.”

What about the U.S.—the second largest emitter—not honoring its Paris Agreement commitment? Even though President Donald Trump withdrew the U.S. from the Paris Agreement this summer, the chances are good we can live up to the emissions reductions promised suggests UNEP Director Erik Solheim. “In all likelihood, the United States of America will live up to its Paris commitment, not because of the White House, but because of the private sector,” said  Solheim. “All the big American companies are dedicated to go in the green direction.”

Carbon Dioxide Levels Reach New High in 2016

The carbon dioxide (CO2) concentration in the atmosphere rose higher than it’s been in 800,000 years—145 percent of pre-industrial levels, according to a new report. The U.N. World Meteorological Organization (WMO) said in the annual Greenhouse Gas Bulletin that a strong El Niño event and human activity contributed to the increase of CO2 concentrations—403.3 parts per million last year, up from 400 in 2015.

“Without rapid cuts in COand other greenhouse gas emissions, we will be heading for dangerous temperature increases by the end of this century, well above the target set by the Paris climate change agreement,” said WMO Secretary-General Petteri Taalas. “Future generations will inherit a much more inhospitable planet. COremains in the atmosphere for hundreds of years and in the oceans for even longer. The laws of physics mean that we face a much hotter, more extreme climate in the future.”

The study uses monitoring by ships, aircraft and weather stations on land to track emissions trends since 1750. The carbon dioxide in the atmosphere, it said, is now increasing 100 times faster than at the end of the last ice age due to population growth, intensive agriculture, deforestation and industrialization.

Measures to mitigate climate change must be taken, the report warns, including work to develop renewable energy and transportation systems.

Studies Assess Cost and Effects of Climate Change

A report by the Government Accountability Office, Congress’s auditing arm, urges the Trump administration to take climate change risks seriously and begin formulating a response. The office analyzed the financial costs of extreme weather events and wildfires in the United States, finding that these events have cost the government more than $350 billion over the past 10 years.

“The federal government has not undertaken strategic government-wide planning to manage climate risks by using information on the potential economic effects of climate change to identify significant risks and craft appropriate federal responses,” indicates the study, which drew on interviews with 26 scientific and economic experts and 30 studies over two years to draw its conclusion. “By using such information, the federal government could take the initial step in establishing government-wide priorities to manage such risks.”

A separate study by a leading medical journal, The Lancet, focused on the impacts and cost of weather-related disasters and a warming climate.

“Between 2000-2016, there has been a 46 percent increase in the number of weather-related disasters, and 125 million adults aged over 65 were exposed to heat waves,” the journal indicated. “Increasing temperatures have led to around 5.3 percent loss in labor productivity, and economic losses linked to climate-related extreme weather events were estimated at $129 billion in 2016.”

The Lancet study cites a number of ways climate change is already affecting health—heat waves, mass migrations, infectious diseases, economic problems, natural disasters and malnutrition.

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

On October 26, 2017, in Uncategorized, by timprofeta

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 Nominates CEQ Lead

On October 19, 2017, in Uncategorized, by timprofeta

The Nicholas Institute for Environmental Policy Solutions at Duke University

President Donald Trump last week nominated Kathleen Hartnett White, a former Texas Commission on Environmental Quality (TCEQ) commissioner, to serve as head of the Council on Environmental Quality. If confirmed, White who is presently a distinguished senior fellow in residence and director of the Armstrong Center for Energy and Environment at the Texas Public Policy Foundation, would head a key White House office that coordinates environmental and energy policies across the government.

Prior to Governor Rick Perry’s appointment of White to the TCEQ in 2001, she served as then Gov. George Bush’s appointee to the Texas Water Development Board. She has served on the Texas Economic Development Commission and the Environmental Flows Study Commission and sits on the editorial board of the Journal of Regulatory Science, the Texas Emission Reduction Advisory Board, and the Texas Water Foundation.

Nomination of White, originally a contender to head the U.S. Environmental Protection Agency (EPA), seems to follow the pattern of other Trump cabinet members: she denies climate change and has questioned the findings of the United Nations Intergovernmental Panel on Climate Change.

At the Texas Public Policy Foundation, White works on the Fueling Freedom project, which seeks to “explain the forgotten moral case for fossil fuels.” In a Q&A with the Orlando Sentinel she discussed the superiority of fossil fuels over renewables.

“At this point in time, there are no alternative energy sources capable of providing the endless goods and services that fossil fuels now handily provide,” said White. “Our abundant, concentrated, affordable, versatile, reliable, storable and controllable energy from fossil fuels is far superior to renewable energy . . . Adding more and more variable, uncontrollable renewables to the electric grid will serve only to necessitate backup power from reliable coal or natural gas to stabilize the mix.”

FERC Chairman Speaks on Department of Energy Directive

Department of Energy (DOE) Secretary Rick Perry has received criticism from lawmakers and Federal Energy Regulatory Commission (FERC) staff following last month’s proposal that FERC establish reliability and resilience pricing for certain power plants in regional trading organization markets.

“This proposal is just a first step in seeking to ensure that we truly have an energy policy that first and foremost protects the interests of the American people,” Perry told the House Energy Subcommittee about the change that would mandate increased payments for plants capable of storing 90 days of fuel supplies. “Following the recommendations of the Staff Report, the department is continuing to study these issues and, if, necessary, will be prepared to make a series of additional recommendations to improve the reliability and resiliency of the grid.”

Neil Chatterjee, acting FERC chairman, pledged not to “blow up the market” as FERC acts in the prescribed 60-day window on the proposed rule, which would benefit coal and nuclear plants and which some have said could upset decades of electricity market reform.

Chatterjee suggested to GreenWire that FERC could do an advance notice of proposed rulemaking or a notice of proposed rulemaking superseding the DOE proposal. FERC could also extend the comment period, convene technical conferences, or initiate Federal Power Act Section 206 review proceedings.

“There are many tools available to the commission to act within 60 days to address and put a process in place … determining whether or not there are attributes that need to be properly valued, in a legally defensible manner, that doesn’t blow up markets,” Chatterjee said.

The proposal adds complexity to ongoing discussions of whether and how FERC-regulated wholesale electricity markets should evolve in light of a changing generation mix and evolving state policy objectives. In recent years, some states have sought to subsidize some generation sources to meet their particular energy and environmental goals, raising questions about what such policies mean for FERC-regulated wholesale markets. Last month the Nicholas Institute for Environmental Policy Solutions hosted a workshop examining challenges and recent proposals for harmonizing state policies and regional market design in the PJM region.

Atlantic Coast, Mountain Valley Pipelines Approved

FERC has issued separate orders granting approval permits for the Mountain Valley Pipeline and the Atlantic Coast Pipeline in two 2–1 votes. The two projects are among a collection of pipeline projects proposed or under construction that are intended to take advantage of the Marcellus gas boom, but they are not without critics.

FERC rejected calls for more public comment on the proposals, writing “all interested parties have been afforded a full complete opportunity to present their views to the commission.”

The Mountain Valley Pipeline would run through West Virginia and is proposed to span 303 miles and cost $3.7 billion.

The Atlantic Coast Pipeline, a $5 billion project by Duke Energy and Dominion Energy, will carry gas through West Virginia, Virginia, and eight counties in eastern North Carolina, crossing 600 miles of the Southeast to transport about 1.5 billion cubic feet a day of natural gas to customers in North Carolina and Virginia.

“Natural gas from the pipeline will increase consumer savings, enhance reliability, enable more renewable energy and provide a powerful engine for statewide economic development and job growth,” said Duke Energy CEO Lynn Good. “It also supports our plan to produce cleaner energy through newer, highly-efficient natural gas plants and allows more capacity for Piedmont Natural Gas to serve new homes and businesses.”

Cheryl LaFleur was the dissenter, highlighting the projects’ potential environmental impacts.

“I recognize that the Commission’s actions today are the culmination of years of work in the pre-filing, application, and review processes, and I take seriously my decision to dissent,” LaFleur wrote in a statement. “I acknowledge that if the applicants were to adopt an alternative solution, it would require considerable additional work and time. However, the decision before the Commission is simply whether to approve or reject these projects, which will be in place for decades. Given the environmental impacts and possible superior alternatives, approving these two pipeline projects on this record is not a decision I can support.”

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.

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Trump Administration Repeals Clean Power Plan

On October 12, 2017, in Uncategorized, by timprofeta

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.

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In a letter to the Federal Energy Regulatory Commission (FERC), Department of Energy Secretary Rick Perry proposed that FERC change its rules to help coal and nuclear plants compete in wholesale power markets. The change would mandate that plants capable of storing 90 days of fuel supplies at their sites get increased payments for electricity. The plan may represent the Trump administration’s most consequential attempt to reshape the electricity market to date.

Perry proposed the rule change in the name of electric grid resilience, which he said is threatened by recent coal and nuclear plant closures. With the letter, he enclosed a Notice of Proposed Rulemaking directing FERC to either take final action to implement the change within 60 days of the notice’s publication in the Federal Register or to issue the proposed rule as an interim final rule. The notice includes legal justification for FERC’s authority to issue the proposed rule without an environmental assessment or an environmental impact statement.

The proposed rule, which fits with the Trump administration’s stated intention to support fossil fuels, is not the first attempt to alter wholesale electricity markets in light of changes in the electricity sector. The PJM Interconnection, the regional transmission organization that operates the grid and electricity market in 13 eastern U.S. states, is exploring ways to make wholesale electricity markets and evolving state policies work better together. A range of perspectives on PJM’s proposed responses to state subsidies for various generation sources were reflected last week at an event, co-hosted by Duke University’s Nicholas Institute for Environmental Policy Solutions and the Great Plains Institute, on harmonization of state energy policies and PJM’s markets.

Energy analysts and energy regulators, including former FERC commissioners, have criticized Perry’s proposal, saying it could increase customer costs and power sector pollution while actually doing little to enhance system resilience.

Perry’s proposal presents no evidence of immediate dangers to the nation’s grid from retirements of marginal coal and nuclear plants, according to a broad group of energy companies that made a joint filing urging FERC to reject Perry’s push for fast action. In an updated motion filed Tuesday, the 11 groups asked for an extension of FERC’s comment deadline.

According to EnergyWire, the proposal appears to contradict a report from the North American Electric Reliability Corp. (NERC), which it cites. The report makes no claim of a grid in crisis and notes that essential reliability services—typically furnished by retiring coal and nuclear plants—are within the capacity of gas, renewable power and electricity storage to provide.

Nor does the proposal completely align with a DOE-ordered study, cited in the 11 energy associations’ joint filing, on the reliability of the nation’s electric grid that was released in August. That study conceded that the rapid increase of renewables has not undermined the power network, though it, too, called for changing electricity pricing rules, along with loosening of pollution regulations, to protect the coal industry.

Proposal Suggests Ending Clean Power Plan, While Court Orders Methane Rules Move Forward

The U.S. Environmental Protection Agency (EPA) will propose a repeal of the Obama administration’s Clean Power Plan, which sets state-by-state carbon reduction targets for power plants, reports Reuters.

An EPA document distributed to members of the agency’s Regulatory Steering Committee indicated that the EPA “is issuing a proposal to repeal the rule.” It went on to say it intends to issue what it calls an Advanced Notice of Proposed Rulemaking to solicit input as it considers “developing a rule similarly intended to reduce CO2 emissions from existing fossil fuel electric utility generating units.”

But Gina McCarthy, who served as EPA administrator under former President Barack Obama starting in July 2013, says that pronouncements don’t equal the law and that moves to undo Obama’s climate legacy will not withstand legal challenges.

“You really have to work hard to show the prior administration made a mistake when it made the rules,” said McCarthy. “Did we get the science wrong? The law wrong? The facts different? I think you’re going to see we did a good job, so it’s going to be a long time in discussions in the courts, and I think in the end things will continue to move forward.”

A Trump administration review of the Clean Power Plan is expected to be finalized this fall, according to an EPA court filing.

The U.S. District Court for the Northern District of California on Wednesday ordered that the Trump administration acted unlawfully when it delayed a separate emissions rule designed to reduce leaking, venting and flaring of methane emissions from oil and gas drilling activity. This week the Trump administration announced another proposal to stall standards until 2019, but EnergyWire reports that the district court’s order means the rule will now take effect.

Carbon Dioxide Emissions Flat for Third Consecutive Year

Earth-warming carbon dioxide emissions remained static in 2016, according to data from the Netherlands Environmental Assessment Agency (NEAA). Of the world’s biggest carbon emitters, only India experienced an increase (4.7 percent). China and the United States, the top two emitters, experienced decreases (0.3 percent and 2.0 percent, respectively), resulting primarily from reduced coal use.

2016 marks the third year in a row that carbon dioxide emissions have not increased. That’s an unprecedented trend at a time when the global economy is growing, according to NEAA. Yet, their amount—upward of 35 billion tons last year—is still enough to raise global temperatures to dangerous levels. In some big countries, these emissions are still increasing, suggesting that they are not guaranteed to remain flat or to decrease in the future.

Importantly, the NEAA report also found that greenhouse gas emissions other than carbon dioxide rose by approximately 1 percent. Moreover, the report did not account for carbon dioxide emissions from land use changes, which are more difficult to estimate and vary significantly from year to 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.

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.