Organizations Develop Tools to Help States Comply with EPA’s Clean Power Plan

May 14, 2015
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

The same week Sen. Shelley Moore Capito (R-W. Va.) introduced a new bill pushing back on implementation of the U.S. Environmental Protection Agency’s (EPA) proposed Clean Power Plan, organizations released tools to help states and regulators navigate compliance with the resulting rule, set to be finalized this summer.

The rule uses an infrequently exercised provision of the Clean Air Act to set state-specific reduction targets for carbon dioxide and to allow states to devise individual or joint plans to meet those targets. One tool—the Multistate Coordination Resources for Clean Power Plan Compliance—developed by the National Association of Regulatory Utility Commissioners and the Eastern Interconnection States Planning Council looks to build on the flexibility the proposed rule gives states to meet their interim and final emissions reduction goals. The document is aimed at helping states overcome institutional barriers to coordination of rule compliance efforts (subscription). The guide includes a multistate planning checklist, a legislative language examples checklist and a sample memorandum of understanding for multistate coordination.

“A range of interactions is possible, from simple awareness of each others’ plans to the transfer of emissions reductions between states that have individual-state plans and targets (not a multi-state plan to meet a joint target) when states have ‘common elements’ in their compliance plan,” the guide notes.

The common elements concept was developed at Duke University’s Nicholas Institute for Environmental Policy Solutions and is an idea I spoke about last month at the Navigating American Carbon World conference in California. In a nutshell, power plant owners can transfer low-cost emissions reductions between states whose compliance plans share common elements—credits defined in the same way and mechanisms to protect against double counting. This approach builds on existing state and federal trading programs while maintaining the traditional roles of state energy and environmental regulators.

Still another tool—a calculator—arms state air quality agencies with the data to estimate carbon emissions savings from state adoption and enforcement of stringent building energy codes in state compliance plans under the proposed EPA rule.

“Because energy savings from stronger building energy codes put thousands in the wallets of home and commercial building owners, and improve building quality, comfort, and resale value, state officials should be adopting them simply to benefit their residents,” said William Fay, executive director of the Energy Efficient Codes Coalition. “But because buildings use 71 percent of America’s electricity, 54 percent of our natural gas, and 42 percent of all energy, improving their efficiency has profound potential benefits to national energy policy as well.”

Oil Drilling Conditionally Approved in Artic Waters

Shell is once again set to take up oil drilling in American Arctic waters after winning approval from the U.S. Bureau of Ocean Energy Management (BOEM), which said it had accepted the company’s plan to drill up to six wells in the Chukchi Sea after concluding that the operations “would not cause any significant impacts” to the environment, residents, or animals. As part of the conditional approval, Shell must first obtain permits from the federal government and the state of Alaska.

Seasonal conditions in the Arctic mean that drilling can typically occur only over a four-month period, but a reduction of the ice due to climate change could ignite Arctic drilling aspirations. For many in industry, the news was welcome.

“The Chukchi Sea is widely seen as one of the last great unexplored conventional oil basins,” said Alison Wolters, an analyst with Wood MacKenzie’s Alaska and Gulf of Mexico programs. “A positive discovery this season would encourage the other operators to reconsider the region.”

Announcement of the news spurred environmental groups to express concern about Shell’s mishap-filled 2012 Arctic drilling season and about new operations in the harsh region, which has little capacity for emergency response but in which federal scientists believe some 15 million barrels of oil may be held.

On the heels of the BOEM’s greenlighting of renewed oil drilling in the Arctic, Christiana Figueres, who leads the U.N. Framework Convention on Climate Change, noted that achieving net-zero emissions by 2100 means that many oil and gas reserves must remain untapped (subscription).

“We have absolutely no opinion about what governments do with companies that operate within their geographic boundaries,” she said. “But there is an increasing amount of analysis that points to the fact that we will have to keep the great majority of fossil fuels underground.”

Report: Oil Price Drop Could Hurt Global Economy

A new report from the Global Commission on the Economy and Climate finds that the recent drop in oil and natural gas prices—although providing temporary relief for consumers—may compel governments to authorize projects that use expensive carbon-intensive fuels. In fact, the Oil Prices and the New Climate Economy report suggests that governments should take advantage of low prices to reduce dependency and reform fossil fuel subsidies (subscription).

“For years, we’ve had a market failure by not taxing carbon and air pollution nearly enough,” said Lord Stern, co-author and a prominent climate economist. “That is subsidizing hydrocarbons in my book. When oil prices fall, it is a wise time to change it and that will also help protect us against energy price volatility in the future.”

The report notes that renewable energy sources—including solar and wind—have little to no operating cost after installation and suggests their use can lock in the cost of energy for two or more decades.

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.


Emissions, Economic Growth Parting Ways

April 23, 2015
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

A U.S. Energy Information Administration (EIA) analysis released Monday reveals that the country’s energy-related carbon emissions grew last year but more slowly than the economy as a whole, representing a decoupling of emissions and economic growth that is projected to continue through 2015 (subscription). Bloomberg reports that the difference in the emissions increase and the GDP increase—0.7 percent and 2.4 percent, respectively—is considered a sign that emissions reductions efforts are not restraining economic expansion.

“The more we can grow our economy without increasing emissions by the same amount of that economic growth, it means that other factors such as energy intensity and the amount of carbon dioxide released in the production of that energy are offsetting the economic growth,” said EIA report author Perry Lindstrom in an e-mail to Reuters.

Confirmation of the second consecutive annual increase in U.S. carbon emissions comes on the heels of commitments by the United States to a 26–28 percent cut in those emissions from 2005 levels by 2025.

A recently released short-term forecast for U.S. power by Bloomberg New Energy Finance says that U.S. emissions-cutting efforts are about to get a huge boost. It projects that this year carbon pollution from the U.S. power sector will fall to its lowest level since 1994 as coal plants go offline and renewables come online. But a Duke University-led study based on 1,000 years of temperature records suggests that global warming is not progressing as fast as it would under the most severe emissions scenarios outlined by the Intergovernmental Panel on Climate Change.

Gas Flaring Initiative Aims to Capture Easy Emissions Reductions

The World Bank announced first-ever commitments by 9 countries, 10 oil companies, and all 6 global development institutions to end the practice of routine gas flaring at oil production sites by 2030. The “Zero Routine Flaring by 2030” initiative was launched by United Nations Secretary-General Ban Ki-moon and World Bank Group President Jim Yong Kim, who said the voluntary agreement will cut 40 percent of the global gas flaring that each year results in 300 million tons of carbon dioxide emissions—equivalent to emissions from approximately 77 million cars.

No U.S.-based companies have signed onto the initiative, which the World Bank and U.N. are using to build support for the U.N.-hosted climate conference aimed at forging a global climate agreement in Paris later this year.

“We think that to eliminate routine gas flaring is the low-hanging fruit on the climate agenda,” said Bjorn Hamso, the World Bank’s program manager for the Global Gas Flaring Reduction partnership. “Oil-producing countries who decide to join us in this effort, they can make that CO2 reduction part of their contribution to the negotiations in Paris.”

Signatories to the initiative will publicly report their flaring and progress toward the target on an annual basis and will prohibit routine flaring in new oil fields developments.

U.S. Energy Infrastructure Requires “Significant Change”

To deal with the challenges of climate change, new technology, a changing energy supply and national security in the coming years, the U.S. electricity sector will require major modifications, according to a new report by the Obama administration.

“The United States’ energy system is going through dramatic changes,” said U.S. Energy Secretary Ernest Moniz. “This places a high premium on investing wisely in the energy infrastructure we need to move energy supplies to energy consumers.”

The report notes that the U.S. energy infrastructure—2.6 million miles of interstate and intrastate pipelines, about 640,000 miles of transmission lines, 414 natural gas storage facilities, 330 ports handling crude and petroleum and refined petroleum products and more than 140,000 miles of railways that handle crude petroleum—is outdated. It calls for billions in new spending programs and tax credits to modernize this system’s grid and oil and gas and transportation infrastructure. Among the approaches it recommends are these:

  • Establish a Department of Energy-run program that provides financial assistance to states to encourage cost-effective improvements that would accelerate pipeline replacement and enhance maintenance programs for natural gas distribution systems.
  • Promote grid modernization with a proposal in the President’s Fiscal Year 2016 budget request.
  • Make infrastructure investments that optimize the Strategic Petroleum Reserve and have Congress update release authorities to reflect modern oil markets.
  • Increase integration of energy data among the United States, Canada, Mexico and other countries.
  • Improve quantification of emissions from natural gas and provide funding for the Diesel Emissions Reduction Act.

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.


Obama Releases Report, Other Initiatives Directed at Tackling Climate Change Impacts

April 9, 2015
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

President Barack Obama announced a series of steps that aim to tackle the effects of climate change on the health of Americans. These 150 health-focused actions to boost climate change preparedness expand on the Climate Data Initiative launched a year.

“The sooner we act, the more we can do to protect the health of our communities, our kids, and those that are the most vulnerable,” the White House said in a statement. “As part of the administration’s overall effort to combat climate change and protect the American people, this week, the administration is announcing a series of actions that will allow us to better understand, communicate, and reduce the health impacts of climate change on our communities.”

Beyond the list of initiatives—including expanding access to climate and health data, improving air quality data and convening a climate change and health summit—the administration released a draft report on the observed and future impacts of climate change on our health. It focuses on risks such as weather extremes, air quality and water-and food-related issues that could affect Americans and is open for public comment. A final draft is expected for release in early 2016.

Another report by the Centers for Disease Control and Prevention, Adaptation in Action, highlights successful actions by state leaders in Arizona, California, Maine, Michigan, Minnesota and New York to reduce the health impacts of climate change.

Study Forecasts Canadian Glacier Loss; Could Have Wider Implications

A new study published in the journal Nature Geoscience predicts how much glaciers in western Canada will shrink—as much as 70 percent by 2100—depending on the rate of carbon dioxide added to the atmosphere between now and the end of the century.

“Over the next century, there is going to be a huge loss,” said lead author Garry Clarke of the University of British Columbia. “The glaciers are telling us that we’re changing the climate.”

The study—the first to model many glaciers in detail at one time—could have implications for predicting glacier loss around the world. New Scientist reports that unlike previous studies—including one by the Intergovernmental Panel on Climate Change—this Nature Geoscience study relies on detailed analysis of how glaciers are likely to move and change shape as they melt. The earlier studies relied on the difference between the amount of snow falling on the glacier at higher altitudes and the amount of thawing at lower ones.

Climate Change Triggers Rising Tide of Troubles for California

Last week the Risky Business Project released its third report on the economic impacts of climate change, a report calling on business leaders to push for policy reform and to factor climate change into their businesses’ risk models.

From Boom to Bust? Climate Risk in the Golden State describes how extreme heat and shifting precipitation patterns from escalating climate change will drain California’s water supply, worsen drought and wildfire, and undermine agriculture. Rising temperatures will also lead to decreased labor productivity, increased energy costs, and greater air pollution. Human health and property will be put at risk: a doubling or tripling of the number of days with temperatures exceeding 95 degrees Fahrenheit could contribute to nearly 7,700 additional heat-related deaths per year by century’s end, and rising sea levels along the California coast could submerge $10 billion in property by 2050. 

The report was published the same day that California Gov. Jerry Brown placed first-ever mandatory water restrictions on all Californians, a response to the state’s fourth year of drought, which has already challenged many of the state’s businesses. The executive order calls for a 25 percent slash in water use and comes as the Sierra Nevada snowpack, which Californians rely on heavily for summertime water needs, neared a record low.

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.


McCarthy: States Must Comply with Clean Power Plan

March 19, 2015
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

On Tuesday, a lawyer hired by the world’s largest coal mining company told the House Energy and Commerce Subcommittee on Energy and Power that proposed requirements to reduce carbon dioxide emissions from power plants are reckless, and Senate majority leader Mitch McConnell of Kentucky, in an op-ed, said states should ignore them, but U.S. Environmental Protection Agency (EPA) administrator Gina McCarthy warned that the regulations will be enforced whether or not states chose to cooperate.

“The EPA is going to regulate. Mid-summer is when the Clean Power Plan is going to be finalized,” McCarthy said, noting that the EPA is developing a federal implementation plan that will apply to states that fail to submit their own compliance plans. “If folks think any of those pieces aren’t going to happen and [the Clean Power Plan] isn’t going to be implemented, I think they need to look at the history of the Clean Air Act more carefully. This isn’t how we do business.”

A new policy brief by Duke’s Nicholas Institute for Environmental Policy Solutions offers a compliance pathway for the EPA’s proposed Clean Power Plan that allows states to realize the advantages of multistate and market-based solutions without mandating either strategy. Under the common elements approach, states develop individual-state plans to achieve their unique emissions targets and give power plant owners the option to participate in cross-state emissions markets.

“States wouldn’t necessarily have to mandate market-based approaches or even endorse the approaches,” said Jonas Monast, lead author and director of the Climate and Energy Program at the Nicholas Institute. “What it would require is the states using a common definition of what a compliance instrument is and ensuring that somehow the credits are verified and tracked.”

The common elements approach would allow cross-state credit transfers without states’ negotiation of a formal regional trading scheme, leave compliance choices to power companies, build on existing state and federal trading programs and maintain traditional roles of state energy and environmental regulators.

Carbon Footprint of Crudes Varies Widely

A first-of-its-kind oil-climate index, produced by the Carnegie Endowment for International Peace’s Climate and Energy Program in collaboration with Stanford University and the University of Calgary, captures the huge spread between the most and least intensive greenhouse gas (GHG) oils. By calculating the carbon costs of various crudes and related petroleum products, the authors suggest that companies and policymakers can better prioritize their development.

The index reflects emissions from the entire oil supply chain—oil extraction, crude transport, refining, marketing, and product combustion and end use—and reveals an 80 percent spread between the lowest GHG-emitting oil and the highest in its sample of 30 crudes, representing some 5 percent of global oil production. That spread will likely grow when more types of crude oil, particularly oil from unconventional sources, are added to the index.

The lead emitter? China Bozhong crude, followed by several Canadian syncrudes derived from oil sands-extracted bitumen.

A blog post for the Union of Concerned Scientists suggested that the wide emissions spread should give rise to “more responsible practices like capturing rather than flaring gas” and that in some cases “the dirtiest extra-heavy resources are best left in the ground.”

The index, which highlights that attention to the entire lifecycle of a barrel of crude is critical to designing policies that reduce its climate impacts, was released days before the International Energy Agency reported that for the first time in 40 years of record keeping, carbon dioxide emissions from energy use remained steady in 2014. The halt, the report states, is particularly notable because it is not tied to an economic downturn.

More Renewables, Tougher Standards for Public Lands

Secretary of the Interior Sally Jewell previewed plans to make energy development safer on public and tribal lands and waters in a speech outlining priorities for the Obama administration’s final years.

“…our task by the end of this Administration is to put in place common-sense reforms that promote good government and help define the rules of the road for America’s energy future on our public lands,” Jewell said. “Those reforms should help businesses produce energy more safely and with more certainty. They should encourage technological innovation. They should ensure American taxpayers are getting maximum benefit from their resources. And they should apply our values and our science to better protect and sustain our planet for future generations.”

Among the measures to be unveiled in coming months: tightened spill prevention standards for offshore drilling, increased construction of solar and wind installations and a raise in royalties from coal mining.

Jewell also hinted at plans “in coming days” to propose rules governing hydraulic fracturing on public lands, which are believed to hold about 25 percent of the country’s shale reserves.

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.


Next Stop on Road to a Climate Agreement in Paris: Geneva

February 12, 2015
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

The latest round of climate talks began Feb. 8 in Geneva, where representatives of 190 or so countries have their work cut out for them: streamlining a 37-page draft text of an international agreement covering more than 100 issues, each with multiple options and sub-options, so that a full negotiating text is ready by May as a basis for further negotiations in June and ratification at a summit in Paris in December. The draft text reflects a rich country-developing country divide and is “stuffed with options that reflect conflicting interests and demands on many fundamental points,” reported the Associated Foreign Press in the Gulf Times.

With both global Earth surface and global sea surface temperatures reaching record levels in 2014, pressure to reach a final climate accord is intense.

At the outset of the 6-day conference, the only negotiation period scheduled before delivery of national emissions reductions plans at the end of May, European Union negotiator Elena Bardram acknowledged that countries’ Paris targets are unlikely to keep global temperature rise below the threshold of 2 degrees Celsius above preindustrial levels that the Intergovernmental Panel on Climate Change considers the tipping point for dangerous climate change.

“We are concerned the targets set in Paris may fall short of what is required by science, that it will not be exactly what is required to remain within the 2 degrees,” she said in a United Nations press conference webcast. “By the Paris conference, we need to have a very clear understanding of how well on track we are with keeping global temperature increase within the two degree centigrade limit,” she said. “We have to know how much is on the table and what more needs to be done, should that be the case.”

All major economies must declare their emissions targets by the end of March, and the European Union is wasting no time in its efforts to make its members fall into line. Reuters reported that it will exert “maximum pressure” to extract pledges “by June at the latest.”

But developed country targets are not the only issue. Other sticking points are whether developing countries should make their own carbon-reduction pledges, whether industrial superpowers should compensate these countries for climate change-related losses and damage, and how pledges of financial support to developing countries should be made good.

Days before the latest talks got under way, a group of CEOs called for the Paris deal to include a goal to reduce global emissions to net zero—no more than Earth can absorb—by 2050.

Final Keystone Legislation Headed to President’s Desk

By a 270–152 vote, the U.S. House of Representatives has passed final legislation approving the Keystone XL pipeline, the project that during seven years of administrative review overseen by the State Department has morphed into a fight about climate change. The president has 10 days once the bill reaches his deck to issue a promised veto.

Republican Senator John Hoeven of North Dakota, the architect of the Keystone XL bill, acknowledged that Republicans lack the votes to overcome a veto but said that Keystone measures could be added to other legislation that have bipartisan support.

The bill endorsed changes made by the Senate—that climate change was not a hoax and that oil sands should no longer be exempt from the Oil Spill Liability Trust Fund.

The President has said he would approve the pipeline only if it does not significantly increase the rate of carbon emissions into the atmosphere. Last week, the U.S. Environmental Protection Agency asked the State Department to revisit its conclusion that the project’s impact on those emissions was negligible—a conclusion that the EPA says may no longer hold given the implications of lowered oil prices for oil sands development.

National Security Strategy Report Highlights Threat of Climate Change

Among the eight top strategic risks to the United States identified in President Obama’s National Security Strategy report to Congress is climate change. The report, issued Feb. 6, singles out the phenomenon as “an urgent and growing threat to our national security, contributing to increased natural disasters, refugee flows, and conflicts over basic resources like food and water” with “present day” effects being felt “from the Arctic to the Midwest.”

The report echoes many of the Pentagon’s warnings that climate change poses a national security risk, and it alludes to the economic costs of climate change, suggesting that delaying emissions reductions is more expensive than transitioning to low-carbon energy sources.

Although the administration’s last national security strategy, released in 2010, recognized the threat of climate change to U.S. interests, the new report puts global warming “front and center,” according to the National Journal.

The strategy draws attention to the U.S. commitment to reducing emissions 26–28 percent below 2005 levels by 2025 and to developing “an ambitious new global climate change agreement.”

A White House fact sheet on the report says that the United States will advance its own security and that of allies and partners in part by “confronting the urgent crisis of climate change, including through national emissions reductions, international diplomacy, and our commitment to the Green Climate Fund.”

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.


House and Senate Votes, Court Decision Shorten Road to Keystone Decision

January 15, 2015
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

On Monday the Senate passed a bill approving the Keystone XL pipeline in a procedural vote just shy of the 67 votes needed to override a veto, setting up what could be an extensive debate on energy policy and climate in next year’s presidential election. The move followed a bipartisan vote in which the House of Representatives passed a similar bill, Jan. 9.

The House vote came just hours after Nebraska’s Supreme Court cleared the way for the controversial project by upholding a 2012 law giving the governor permitting authority for major oil pipelines. The court overruled a lower court finding that allowing the governor and pipeline owner TransCanada to use eminent domain to lay the pipeline on private land was unconstitutional. However, an attorney for the landowners in the case suggested that the litigation was not over, stating that the outcome amounted to a “nondecision open to further review” because most judges agreed with the landowners on the standing issue and three declined to weigh in on the law’s constitutionality.

The ruling shifted the debate over Keystone to Washington, where Republicans are pushing for its final approval after more than six years of review by the U.S. State Department.

“Today’s court decision wipes out President Obama’s last excuse,” Republican Senator and chair of the Senate Energy and Natural Resources Committee Lisa Murkowski said.

“Regardless of the Nebraska ruling,” said White House spokesman Eric Schultz, “the House bill still conflicts with longstanding executive branch procedures regarding the authority of the president and prevents the thorough consideration of complex issues that could bear on U.S. national interests.”

In fact, it could take months for the administration to reach a final verdict because the State Department must take comments from eight agencies before reaching its own conclusion about the project.

Environmentalists and other opponents of the pipeline have highlighted the potential for extraction and transport of crude from Canada’s tar sands to contaminate water, pollute air, and harm wildlife. But the GOP, the oil industry, and other pipeline backers argue that Keystone will lead to jobs and increase oil independence as well as strengthen bonds with Canada.

“Boosting American-made energy results in more American jobs and improved international relations,” said Rep. Leonard Lance. “This is a winning combination for our Nation’s economy, our national security and a centerpiece in our relationship with our ally, Canada.”

Rep. Adam Smith had a different take: “Rather than focusing on Keystone XL, we should be working on bigger picture investments in clean energy and energy efficient technologies that will reduce our dependence on fossil fuels that hurt our environment.”

Obama Administration Targets Methane Emissions

The Obama administration has announced the first-ever national standards to cut methane emissions from new sources in the oil and natural gas industry. Methane accounts for some 9 percent of the country’s greenhouse gas emissions, but it has 20 times carbon dioxide’s planet-warming potency.

“This strategy will benefit the economy, the climate and public health,” said Dan Utech, President Obama’s advisor on energy climate change, though activists say the cuts fall short of those needed to reach the administration’s international climate change pledges.

Unclear is whether the proposed 45 percent reduction by 2025 would eventually apply to existing oil and gas installations as well as to future sources of carbon pollution.

Breakthroughs in hydraulic fracturing technology are projected to increase methane emissions from oil and gas operations. Methane leaks from oil and natural gas drilling sites and pipelines are 50 percent higher than previously thought according to a 2014 study published in the journal Science.

Estimates of Social Cost of Carbon Vary Widely, with Policy Consequences

The social cost of carbon (SCC) or the economic damage caused by a ton of carbon dioxide emissions—which the United States uses to guide energy regulations and, potentially, future mitigation policies—is $37 per ton according to a recent U.S. government study or, according to a new study by Stanford researchers published this week in the journal Nature Climate Change, six times that value.

The Stanford scientists say the current pricing models fail to reflect all the economic damage each ton of CO2 causes and that a higher value on that damage could change policy.

“If the social cost of carbon is higher, many more mitigation measures will pass a cost-benefit analysis,” said study co-author Delavane Diaz. “Because carbon emissions are so harmful to society, even costly means of reducing emissions would be worthwhile.”

“For 20 years now, the models have assumed that climate change can’t affect the basic growth rate of the economy,” said study coauthor Frances Moore. “But a number of new studies suggest this may not be true. If climate change affects not only a country’s economic output but also its growth, then that has a permanent effect that accumulates over time, leading to a much higher social cost of carbon.”

But William Pizer, a faculty fellow at Duke University’s Nicholas Institute for Environmental Policy Solutions who has worked on and recommended regular updating of the SCC estimate, questioned the methodology of the Stanford analysis, pointing out that it relied on the impact on national economies of short-term temperature spikes rather than on long-term trends that might reveal permanent economic reductions.

“To me, it just seems like it has to be an overestimate,” Pizer said of the Stanford result of $220 (subscription required). “I think it’s great they’re doing this,” he added. “I just think this is another data point that someone needs to weigh as they’re trying to figure out what the right social cost of carbon is. But this isn’t like a definitive new answer.”

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


EPA Delays Release of Carbon Emissions Rules for Power Plants

January 8, 2015
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

The Environmental Protection Agency (EPA) is delaying the release of carbon emissions rules for all power plants and will publish them for new as well as existing plants at the same time mid-summer.

“It’s become clear to us … that there are cross-cutting topics that affect the standards for new sources, for modified sources and for existing sources, and we believe it’s essential to consider these overlapping issues in a coordinated fashion,” said Janet McCabe, the EPA’s acting administrator for air quality.

McCabe also announced that the EPA will begin drafting a “model rule” for states that do not submit individual plans to meet emissions reduction targets in the existing power plant regulations.

Under the proposed regulations for new sources, the EPA has functionally required new coal power plants to include carbon-capture technology, which critics of the emissions rules say lack proof of efficacy on a large scale and have a high cost to implement. In 2011, the American Electric Power Company reported that including carbon-storing processes at a West Virginia plant would cost an estimated $668 million.

California Cap-and-Trade System Includes Oil and Gas Sector

California’s cap-and-trade program—the country’s first multi-sector carbon emissions trading program—now requires gasoline and diesel producers to supply lower-carbon fuels or to buy carbon allowances—pollution permits—for the greenhouse gases emitted when those fuels are burned.

Key program stakeholders, industry leaders, public officials and environmental advocates agree that consumers will see a rise in gas prices, but the amount remains uncertain.

“There’s a very large universe of variables which could affect gas prices on a daily basis, and we don’t set fuel prices,” said California Air Resources Board spokesperson Dave Clegern. He added, “We don’t see them going up more than a dime, at the most, based on any current cap-and-trade compliance costs.”

It is estimated that 25 percent of secured funds from the emissions trading program will be allotted to the state’s high-speed rail project.

California’s program includes an allowance reserve initially proposed by Nicholas Institute and Duke University researchers that prevents carbon allowance prices from reaching levels beyond the scope of purchasers.

Congress Prepare to Vote on Keystone XL Pipeline

The Senate Energy and Natural Resources Committee has cleared legislation to approve the Keystone XL pipeline, which would deliver some 830,000 barrels of oil a day from Canada’s oil sands to Gulf Coast refineries. But White House press secretary Josh Earnest, citing the Obama administration’s “well-established” review process, said, “If this bill passes this Congress, the president wouldn’t sign it.”

The pipeline has become a flash point in the debate over climate change and economic growth.

In a December 19 press conference, the president said, “I want to make sure that if in fact this project goes forward, that it’s not adding to the problem of climate change, which I think is very serious and does impose serious costs on the American people, some of them long term, but significant costs nonetheless.”

Critics of Keystone have pointed to the carbon intensive production of the crude it will carry. In an op-ed in The Hill, the new president of the Natural Resources Defense Council, Rheh Suh, called production of oil from Canadian tar sands an “environmental disaster.”

Supporters argue that Keystone will be a source of economic stimulus. In a statement, Energy and Commerce Committee Chairman Fred Upton said, “After six years of foot-dragging, it’s time to finally say yes to jobs and yes to energy. It’s time to build [this pipeline].”

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.


Negotiations Heat Up in Closing Stages of UN Climate Change Conference

December 11, 2014
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

Optimism at the outset of the 2014 United Nations Climate Change Conference twentieth Conference of the Parties in Lima, Peru, has given way to the hard work of reaching high-level resolution prior to the December 2015 UN meeting in Paris.

Among the challenges is disagreement about regular auditing of carbon emission pledges. The European Union insists on a formal review of all country pledges, whereas the United States recommends a voluntary approach to emissions cuts with the disclaimer of no backtracking in targets. “You could assign every country a particular reduction that on paper looks like a perfect result and then you can’t get agreement on it,” said Todd Stern, United States Special Envoy for Climate Change. “This is a way to get everyone in.”

Another challenge is differentiating the responsibilities of developed countries and those of developing countries. China, Brazil, India, and South Africa, which have coordinated their positions at the Lima talks, want to make sure the potential new agreement will allow poorer nations to meet their prevalent needs such as poverty eradication. “Poor people have aspirations,” said India’s Environment Minister Prakash Javadekar. “We must give them energy access.”

Host country Peru, along with other Latin American nations (Chile, Colombia, Costa Rica, Guatemala and Panama), is pushing for aggressive emission cuts by major economies as well as emerging economies such as China and Brazil. However, critics are quick to point out the country’s poor record in protecting rainforests, which play a critical role as carbon sinks.

Struggling through hammering rainfall from Typhoon Hagupit, the Philippines are asking for all nations, developing and developed, to cut use of fossil fuels.

“The thinking of the pivot is—we’re going to take on commitments and do our part,” said Tony La Viña, a Philippine climate change delegate. “The call has always been for developed countries to act. But the thinking is simple. If we’re going to get hit every year again and again, how can we call on developed countries to reduce their emissions, but not reduce our own?”

A new UN report showing climate adaptation costs for developing countries could be two to three times higher than current global estimates makes the 2050 zero-carbon goal another contentious issue. Meeting this goal would significantly affect oil and gas production as well as coal extraction methods. “With a concept like zero emissions and ‘let’s knock fossil fuels out of the picture’, without clear technology diffusion and international cooperation program, you are really not helping the process,” said chief Saudi Arabian negotiator Khalid AbuLeif.

Emissions Reduction Pledges Underscore Importance of Social Cost of Carbon Estimates

The Climate Action Tracker report released by a group of independent scientists notes that recent pledges by the United States, China and the European Union to limit greenhouse gas emissions will, in fact, slow the rate of global warming this century, though not enough to limit warming to 2 degrees Celsius (3.6 Fahrenheit).

Draft text of the 2015 global climate change agreement being negotiated in Lima includes a May 3, 2015, deadline for nationally determined contributions—promises from individual countries for internal action on climate change. Figuring into these commitments are estimates of the social cost of carbon, or the per-metric-ton dollar value of reducing climate change damages—a metric that the United States uses in regulatory analysis and that it and other developed countries could use to leverage greater emissions reductions commitments from developing countries.

Several economy and environmental policy experts are recommending that the government change the way (subscription) it establishes this cost. In an article in Science, former U.S. Department of the Treasury Deputy Assistant Secretary for Environment and Energy and Nicholas Institute faculty fellow William Pizer and his coauthors recommend that the United States adopt a standardized process to regularly evaluate the cost and that the process undergo a public comment period and a review by the National Academy of Sciences.

Commenting on the need for a consistently used and rigorously maintained estimate of climate damages, Pizer said, “It’s important that we draw on the expertise of all government agencies, as well as independent experts in the field. This level of high-quality collaboration and peer review would decrease the likelihood of political factors interfering with the process, and ensure we have the most robust Social Cost of Carbon.”

2014—Hottest Year on Record?

A report issued by The United Nation’s World Meteorological Association says that 2014 is expected to be the hottest year on record, with global temperatures 1.03 degrees Fahrenheit above the 1961–1990 average.

“What we saw in 2014 is consistent with what we expect from a changing climate,” said Michel Jarraud, World Meteorological Organization Secretary-General. “Record-breaking heat combined with torrential rainfall and floods destroyed livelihoods and ruined lives.”

A report by National Oceanic and Atmospheric Administration that finds that the historic California drought is due to natural weather patterns, as opposed to hot temperatures across the state, raised the ire of some climate scientists, who said the report did not take into account how record warmth worsened the drought.

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.


Ozone Focus of EPA’s Latest Rulemaking

October 23, 2014
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

The U.S. Environmental Protection Agency (EPA) finalized a rule that sets domestic production consumption limits for hydrochlorofluorocarbons (HCFCs)—eventually phasing them out completely by 2020. The rule aims to reduce emissions from leakage and stockpiles of four HCFCs, a class of refrigerant linked to ozone depletion and climate change.

“This rule finalizes allowed amounts of HCFC production and import in 2015–2019 that protect human health and the environment, while also encouraging transition to non-ozone-depleting alternatives and greater recycling of existing HCFCs,” the EPA said, adding that the rule “should promote a smooth and stable transition, since without this rule, domestic production and consumption of these HCFCs is prohibited as of January 1, 2015.”

The final rule caps HCFC-22 at 10,000 megatons, down from the 13,700 megatons included in the EPA’s December proposal (subscription). It also creates an incentive for commercial consumers relying on outdated equipment that uses HCFCs to convert to energy-efficient models.

Meanwhile, the EPA is tasked—under court order—with proposing a change to the existing National Ambient Air Quality Standards (NAAQS) for ground-level ozone by Dec. 1. Agency watchers speculate that the standards, currently at 75 parts per billion, will be made more stringent. Although some have argued that the cost of tighter standards would be high—$11 billion in 2020, according to the EPA—a new report by the Congressional Research Service (CRS) indicates these concerns may be premature.

“There has been speculation regarding the economic impact of a NAAQS revision,” CRS’s James McCarthy writes. “At the moment, no one knows what a revised NAAQS would cost, because EPA hasn’t proposed one and we don’t know what areas will be designated nonattainment. But even after a proposal is signed, cost estimates will be little better than guesses.”

NOAA Reports Forecast Record Yearly Temps, Winter Outlook

Year to date, 2014 ties with 1998 and 2010 as the warmest year on record, according to new analysis from the National Oceanic and Atmospheric Administration (NOAA). Recorded temperatures were 1.22 degrees Fahrenheit above average.

“If 2014 maintains this temperature departure from average for the remainder of the year, it will be the warmest year on record,” the report indicated. Why? The increased chance for an El Nino—a warming of the tropical Pacific Ocean affecting weather worldwide. These rising ocean temperatures have implications for coral reefs, sea level rise and weather patterns worldwide.

When it comes to winter, the southern United States will see colder weather and western states warmer temperatures based on NOAA’s yearly winter outlook.

“Last year’s winter was exceptionally cold and snowy across most of the United States, east of the Rockies,” NOAA said. “A repeat of this extreme weather pattern is unlikely this year, although the [outlook] does favor below-average temperatures in the south-central and southeastern states.”

Tackling Rising Emissions

New data from the Energy Information Administration (EIA) indicates that carbon dioxide emissions from the U.S. energy sector increased 2.5 percent between 2012 and 2013—a jump from 5,267 million metric tons (MMmt) to 5,396 MMmt. Despite the increase, emissions were 10 percent below their 2005 level.

“An increase in energy intensity … was a leading cause of the 2013 increase in energy-related CO2 emissions when compared with the trend from the prior decade, which was -2.0pc,” EIA said. “Weather played an important role in the year-to-year increase in CO2 emissions.”

Negotiators from more than 190 nations were urged to “build bridges” toward a new global pact to curb greenhouse gas emissions at a meeting in preparation for talks in Lima, Peru, this December. Nations are working toward an agreement, to be decided in Paris in 2015, that would cut these emissions beginning in 2020. On the table—steps that can be taken to increase commitments from countries and the extent to which a 2015 treaty will be legally binding. Two themes in particular—carbon capture, storage and use; and non-CO2 greenhouse gases like methane and HCFCs are dominating the discussions.

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.


U.S., Military to Plan More Strategically for Climate Change

October 16, 2014
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

Climate change is a “threat multiplier” and worse than many of the challenges the U.S. military is already grappling with, according to a new report by the U.S. Department of Defense (DoD). The New York Times indicated that the report marks a departure from the DoD’s previous focus on preparing bases to adapt to climate change. The DoD now calls on the military to incorporate climate change plans in its strategic thinking and budgeting.

“Among the future trends that will impact our national security is climate change,” said Defense Secretary Chuck Hagel. “Rising global temperatures, changing precipitation patterns, climbing sea levels, and more extreme weather events will intensify the challenges of global instability, hunger, poverty, and conflict. They will likely lead to food and water shortages, pandemic disease, disputes over refugees and resources, and destruction by natural disasters in regions across the globe.”

Climate change will now be factored into several day-to-day decisions, including those about training exercises, purchasing decisions and assessment of the risk of infectious disease. The report points to inclusion of floods or storms in war game scenarios, testing of new equipment to adapt to warmer ocean conditions and preparedness for an increasing number of natural disasters.

“Politics or ideology must not get in the way of sound planning,” the report’s introduction stated. “Our armed forces must prepare for a future with a wide spectrum of possible threats.”

At a lecture at Yale University earlier this week, U.S. Climate Envoy Todd Stern discussed the country’s climate vision and the potential for a global climate pact touting flexible standards, financial assistance for developing countries and an accountability system at the 2015 U.N. Summit.

“The usual brinkmanship of holding cards until the eleventh hour is a bad bet because too much is riding on this negotiation,” Stern said. “We can’t afford to miss the opportunity to establish an ambitious, workable, new international climate order.”

According to a new fact sheet from the Environmental and Energy Institute, Americans, generally, agree that climate change is happening. The finding is based on polls from a variety of sources from 2013 to 2014.

Lower Oil Prices Have Multiple Effects

Amid reports of falling oil prices, the International Energy Information Administration (EIA) lowered its oil demand forecast to 93.5 million (bpd). The change, it said, was supported by near-four-year low prices.

Downward prices have been a boon to consumers at the pump, but as one economist tells Reuters, they are a two-edged sword. “Initially, (a lower oil price) will provide a boost to an economy that already has some momentum,” said Diane Swonk, chief economist at Mesirow Financial. “It’s like a tax cut. The problem is that it will come back to haunt us in 2015.”

The American energy boom combined with a sluggish global economy have led to a crude oil price correction with global impacts—nuancing debate about the need for major pipeline projects, potentially helping refiners and threatening to hit energy exporters like Russia and Iran harder than the recent U.S. economic sanctions.

UCS: EPA Clean Power Plan Could Use Tweaks

Some details in the U.S. Environmental Protection Agency (EPA) rules for regulating carbon dioxide from existing power plants—the Clean Power Plan—could be fine-tuned, a new report from the Union of Concerned Scientists (UCS) states. The group’s proposed approach for setting state targets would result in renewable energy supplying 23 percent versus the Clean Power Plan’s 12 percent of U.S. electricity by 2030.

UCS argues that the EPA’s current proposal doesn’t capture the rate at which renewables have been deployed across the country.

“Our renewable target is a percentage of electricity sales in the state that can either be met by having in-state generation or purchasing renewables from another state,” said UCS President Ken Kimmell.

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.