Trump’s Detroit Visit Focuses on Fuel Standards

The Nicholas Institute for Environmental Policy Solutions at Duke University

President Donald Trump announced in Detroit Wednesday that standards requiring automakers to nearly double the average fuel economy of new cars and trucks to 54.5 miles per gallon by 2025 will be reviewed. The U.S. Environmental Protection Agency (EPA) developed the standards as a single program alongside the Department of Transportation’s fuel economy rules, popularly known as Corporate Average Fuel Efficiency (CAFE) standards. They were put in place by the Obama administration not only to eliminate atmosphere-warming carbon dioxide but also to save a projected 12 billion barrels of oil.

Last year, the Obama administration speedily conducted a midterm review of whether the stricter 2022-2025 targets would be achievable. The review, which was required to be complete by 2018, found that the industry could easily meet the stricter standards.

“Today I am announcing we are going to cancel that executive action,” said Trump. “We are going to restore the originally scheduled midterm review and we are going to ensure any regulations we have protect and defend your jobs, your factories. We’re going to be fair.”

Environmental Protection Agency (EPA) Administrator Scott Pruitt added that the standards “are costly for automakers and the American people,” noting that the EPA will work with the Department of Transportation “to take a fresh look to determine if this approach is realistic.”

Rolling back the standards will take more than a year of legal and regulatory reviews by the EPA and the Department of Transportation, The New York Times reports.

Trump did not take steps Wednesday to revoke a waiver that allows California and a dozen other states to enforce emissions standards more stringent than those of the EPA, Reuters reports. If those regulations remain intact, automakers will still be compelled to produce more fuel-efficient cars regardless of any changes at the federal level.

Pruitt: Let Congress Figure Out If the EPA Should Regulate Carbon Dioxide

In the same CNBC interview in which he doubted the contribution of carbon dioxide to global warming, U.S. Environmental Protection Agency (EPA) Administrator Scott Pruitt said Congress, not his own agency, should decide whether the EPA has the power to regulate greenhouse gases.

“Nowhere in the equation has Congress spoken,” said Pruitt. “The legislative branch has not addressed this issue at all. It’s a very fundamental question to say, ‘Are the tools in the toolbox available to the EPA to address this issue of CO2, as the court had recognized in 2007, with it being a pollutant?’”

The comment appeared to be a reference to Massachusetts v. EPA, in which the Supreme Court found that carbon dioxide is an air pollutant under the federal Clean Air Act. That ruling prompted the EPA to promulgate the first-ever greenhouse gas regulations for motor vehicles.

Taking a legislative approach, reports  ClimateWire, would get around a protracted rulemaking process and legal challenges that might beset efforts to rewrite federal regulations addressing climate change (subscription). Congress could instead simply change the definition of an air pollutant to exclude carbon dioxide and other greenhouse gases, putting into question a range of federal regulations from the Clean Power Plan to fuel economy standards.

That’s the intent of the Stopping EPA Overreach Act, which the U.S. House of Representatives introduced last week. H.R. 637 would amend the Clean Air Act so that the term ‘air pollutant’ does not include carbon dioxide, water vapor, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, or sulfur hexafluoride.

The proposal would nullify the EPA’s regulation of carbon pollution, stating that “no federal agency has the authority to regulate greenhouse gases under current law” and “no attempt to regulate greenhouse gases should be undertaken without further Congressional action.”

The bill would also repeal the Clean Power Plan and a rule setting methane emission standards for oil and gas operations. If it were to become law, legal recourse would be unlikely because the Clean Air Act would be explicitly rewritten.

This week, 17 Republicans re-introduced a resolution acknowledging the problem of global warming.

Trump Unveils $1.1 Trillion Budget; Signs Another Executive Order

President Donald Trump unveiled his 2018 discretionary spending budget proposal Thursday, one that reduces many federal agency budgets. The largest cut of 31 percent is to the U.S. Environmental Protection Agency (EPA). The move will result in the loss of 3,200 positions, or more than 20 percent of the EPA’s workforce, and terminates more than 50 EPA programs. It defunds the Clean Power Plan, which sets limits on carbon dioxide from existing fossil-fuel-fired power plants, and the Energy Star Program, which identifies and promotes energy efficiency in products.

“You can’t drain the swamp and leave all the people in it. So, I guess the first place that comes to mind will be the Environmental Protection Agency,” said Mick Mulvaney, director of the White House Office of Management and Budget. “The president wants a smaller EPA. He thinks they overreach, and the budget reflects that.”

The budget is only an outline, as Congress has the authority to set government spending levels and appropriate money.

Stating that he couldn’t “in good conscience be supportive” of the Trump administration’s major cuts to the EPA budget, Mustafa Ali stepped down as head of the EPA’s environmental justice office, which he helped found in 1992 to alleviate the impact of air, water and industrial pollution on poverty-stricken areas.

In a lengthy letter, Ali urged EPA Administrator Scott Pruitt not to kill the agency’s programs as Pruitt prepares to dismantle many in response to the Trump administration’s 2018 budget blueprint.
Setting the stage for the historic downsizing of federal agencies and the federal workforce in the budget proposal was an executive order signed Monday that requires government agencies to make themselves lean. The new White House review effort, the Comprehensive Plan for Reorganizing the Executive Branch, could identify additional areas for cuts within the EPA and the Department of Energy and Department of the Interior.

“Today there is duplication and redundancy everywhere,” said Trump. “This order requires a thorough examination of every executive department and agency to see where money is being wasted, how services can be improved and whether programs are truly serving American citizens.”

The order directs Mulvaney to “propose a plan to reorganize governmental functions and eliminate unnecessary agencies … components of agencies and agency programs,” according to the White House. Agency heads have 180 days to submit a reorganization plan.

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.

Executive Orders Expected on Climate Rules as Trump Contemplates Paris Agreement Fate

The Nicholas Institute for Environmental Policy Solutions at Duke University

President Donald Trump is expected to sign an executive order directing the U.S. Environmental Protection Agency (EPA) to dismantle Obama-era climate rules, including the Clean Power Plan, which sets limits on carbon dioxide emissions from existing fossil-fuel fired power plants. Originally expected this week, GreenWire reports that according to a White House official the order “may be pushed beyond this week.”

It was unclear until now if the Trump administration would “repeal and replace” the Clean Power Plan, or just set upon a path to undo it, but the executive order will only call for the withdrawal of the regulation, according to sources (subscription). It could also instruct the Justice Department to effectively withdraw its legal defense of the climate rule in the U.S. Court of Appeals for the District of Columbia Circuit.

Like other executive orders recently signed by the president, this one would not, by itself, roll back the Clean Power Plan. Altering a final rule, like the Clean Power Plan, isn’t as simple as the stroke of a pen. It will likely require the EPA to undertake a new rulemaking process, including public notice and comment that could last a few years.

Unless Congress amends the Clean Air Act or the Supreme Court reverses prior opinions, the EPA retains its authority—and a legal obligation—to regulate greenhouse gases under the Clean Air Act. The question then becomes which Clean Air Act program is appropriate for the EPA to fulfill its legal obligation—the authority that underpins the Clean Power Plan or another provision of the Clean Air Act—and how the Trump administration believes that authority should be deployed in its discretion.

And while members of the Trump administration remain split on whether to follow through with campaign promises to withdraw from the Paris Agreement, the European Union (EU) pledged to “reinvigorate EU climate diplomacy … taking into account the latest developments and changing geopolitical landscape.” The EU may be looking to Canada to help ensure the agreement is implemented.

Oil and Gas Industry No Longer Required to Report Methane Emissions

U.S. Environmental Protection Agency (EPA) Administrator Scott Pruitt withdrew an Information Collection Request order issued by the Obama administration in November requiring the oil and gas industry to report information about their equipment and operations in an effort to rein in leaks of methane. The order, which took effect immediately, was the EPA’s first step to regulate methane emissions from the sector.

In November, the EPA sent letters to more than 15,000 owners and operators in the oil and gas industry requiring them to provide information on the numbers and types of equipment at onshore oil and gas production facilities, as well as information on methane emissions at the sites.

A letter sent to the EPA by the attorney generals of Alabama, Arizona, Kansas, Kentucky, Louisiana, Mississippi, Montana, Oklahoma, South Carolina and West Virginia expressed concern with the requirement, prompting the withdrawal.

“By taking this step, EPA is signaling that we take these concerns seriously and are committed to strengthening our partnership with the states,” Pruitt said. “Today’s action will reduce burdens on businesses while we take a closer look at the need for additional information from this industry.”

Senate Approves Rick Perry as Energy Secretary, Ryan Zinke as Interior Lead

Last week, the U.S. Senate confirmed two department heads who will have considerable influence on how the country approaches energy issues from funding of advanced energy projects to use of public lands for oil and gas extraction.

In a 62–37 vote, Rick Perry was confirmed as head of the U.S. Department of Energy, the agency he vowed to eliminate during his failed 2012 presidential bid and at the helm of which he faces tough issues related to regulatory reach, efforts to mitigate climate change, and potentially deep cuts in agency staffing and spending. He now is responsible for maintenance of the nation’s nuclear arsenal and 17 national laboratories that conduct research into energy technologies that could help fight climate change, a phenomenon he has questioned. During his confirmation hearings he acknowledged that human activity has contributed to warming, a sharp pivot from the global cooling cover up he advanced in his 2010 book, Fed Up! Our Fight to Save America from Washington.

As governor of Texas, Perry presided over big increases in his state’s wind power and shale oil drilling. During his Senate confirmation hearing, he said he would seek to develop American energy in all forms—oil, gas, nuclear, and renewable—and that he would rely on federal scientists to pursue “sound science.”

He replaces Ernest Moniz, a nuclear physicist who led technical negotiations in the 2015 Iran nuclear deal and successor of Steven Chu, a Nobel Prize-winning physicist.

By a vote of 68 to 31, former Montana Rep. Ryan Zinke was confirmed as secretary of the Department of the Interior, where he assumes oversight of 500 million acres of public land, including 59 national parks. Zinke, who has questioned climate science and expressed support for expanding mining and oil and gas development on public land, will now head up the National Park Service, the U.S. Geological Survey, the Bureau of Reclamation and the Bureau of Indian Affairs.

During Senate committee hearings on his nomination last month, Zinke said one of his first priorities would be to fix deteriorating infrastructure at parks under the National Park Service. But he gave little clue about how he would act on other issues as head of the department whose agencies decide how resources such as coal are managed and which animals are eligible for listing under the Endangered Species Act.

He did say that federal land should be managed under a multiple-use model that allows hiking, hunting, fishing and camping along with timber harvesting, coal mining and oil and natural gas drilling.

Meanwhile, one of Trump’s confirmed cabinet members, Scott Pruitt, who was approved by the Senate last month and sworn in as EPA administrator,

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.

Pruitt Confirmed to Head EPA

The Nicholas Institute for Environmental Policy Solutions at Duke University

Friday, in a 52-46 vote, the Senate confirmed Scott Pruitt, Oklahoma attorney general to head the U.S. Environmental Protection Agency (EPA). Pruitt was sworn in that evening.

As Oklahoma’s attorney general, Pruitt filed 14 lawsuits challenging EPA regulations, including limits on carbon emissions from fossil fuel-fired power plants. Many of the cases are pending in the courts, creating “serious conflicts of interest,” said Delaware Senator Tom Carver the day before the vote. On Tuesday, Oklahoma asked the U.S. Court of Appeals for the District of Columbia Circuit to replace Pruitt in the Clean Power Plan lawsuit with the state’s new attorney general.

In his first speech to EPA staff on Tuesday, Pruitt said, “I believe that we as an agency, and we as a nation, can be both pro-energy and jobs, and pro-environment. We don’t have to choose between the two.”

He steered clear of specifics about the Trump administration’s energy policies, instead hinting at some agency reforms, saying that the agency has a responsibility to “avoid abuses that occur sometimes” in rulemaking, and he stressed the importance of following the “rule of law” and in partnering with states.

“I seek to ensure that we engender the trust of those at the state level,” he said (subscription).

Those comments echoed Pruitt’s first interview as EPA administrator, in which he told the Wall Street Journal that he intends to restore power to states, that environmental laws were not meant to be a “one-size-fits-all model,” and that “the state departments of environmental quality have an enormous role to play” as well as suggested that the public has trust issues with the EPA’s procedure for producing studies and cost-benefit analyses.

“The citizens just don’t trust that EPA is honest with these numbers,” he said. “Let’s get real, objective data, not just do modeling. Let’s vigorously publish and peer-review science. Let’s do honest cost-benefit work. We need to restore the trust.”

During the interview, Pruitt appeared to contradict his confirmation hearing testimony by questioning EPA’s authority to regulate greenhouse gases, saying that “the courts have seriously called into question the legality” of both the Clean Power Plan and the Waters of the United States Rule, which clarifies the EPA’s regulatory authority under the Clean Water Act. Both rules may be targets of future executive actions. Although the order may not cancel the Clean Power Plan outright, it would mark the first step in weakening the Obama-era climate rule.

The Supreme Court ruled in Massachusetts vs. EPA that the EPA possesses authority to regulate greenhouse gases as air pollutants under the Clean Air Act—an authority that the House Energy and Commerce Committee’s panel on the environment is looking to roll back (subscription).

Senate Democrats had sought to delay Pruitt’s Senate confirmation vote, saying lawmakers could afford to wait a few days to learn more about Pruitt’s ties to the oil and gas industry, a reference to an Oklahoma judge’s ruling, that required Pruitt to hand over nearly 3,000 e-mails related to his communications with the industry, the subject of a public records lawsuit. The Center for Media and Democracy published those e-mails yesterday, two years after Pruitt initially refused to release them. The e-mails share close ties to the oil and gas industry. AP detailed a few of the ways in which those e-mails show how Pruitt and his staff coordinated their legal strategy with oil and gas industry executives and advocacy groups funded by those profiting from fossil fuels to fight federal efforts to curb carbon emissions.

Study Examines Spill Risk of Hydraulically Fractured Wells

A new analysis led by the Nicholas Institute for Environmental Policy Solutions, which appeared Tuesday in the journal Environmental Science & Technology, concludes that making states spill data more uniform and accessible could provide stakeholders with important information on where to target efforts for locating and preventing future spills at hydraulically fractured oil and gas wells.

“… Reporting requirements differ across states, requiring considerable effort to make the data usable for analysis,” said Lauren Patterson, policy associate at the Nicholas Institute and the study’s lead author. “Given the rapid recent development of unconventional oil and gas development, data are scarce on both how often spills happen, where in the process they occur, and what caused them.”

“The presence of a spill,” she added, “does not mean an adverse impact; many spills were small or contained. The data on containment and potential impacts varied between states and over time, making it difficult to do more than report on the number of spills.”

It identifies 6,648 spills reported across Colorado, New Mexico, North Dakota and Pennsylvania during a 10-year period (2005 and 2014). The work also shows that the range of requirements makes it impossible to compare states or come up with a comprehensive national picture. For example, Colorado and New Mexico require spills of more than 210 gallons to be reported to the state, whereas North Dakota calls for any spill of more than 42 gallons to be documented.

Making this state-level data more uniform could help regulators and industry reduce future spills.

“Analyses like this one are so important, to define and mitigate risk to water supplies and human health,” said Kate Konschnik, co-author on the paper from Harvard Law School’s Environmental Policy Initiative. “Writing state reporting rules with these factors in mind is critical, to ensure that the right data are available—and in an accessible format—for industry, states and the research community.”

Singapore Commits, States Consider Carbon Tax

A proposed carbon tax by a group of Republican lawmakers—the Climate Leadership Council—hasn’t made much headway with Congress since its introduction earlier this month, but others are starting to think about the concept.

State lawmakers in California are debating whether to extend the current cap-and-trade system beyond 2020, or replace it with a carbon tax—or cap and tax. Like the cap-and-trade system, this alternative strategy would place a cap on emissions that would decline each year, but it would also tax all emissions at the EPA-set social cost of carbon, or $50 per ton in 2030. And, ClimateWire reports, Washington state has proposed a $25-per-ton carbon tax to bolster the state budget. A second proposal to impose a $15-per-ton tax is also on that state’s legislative agenda (subscription).

Across the pond in Southeast Asia, Singapore announced plans to implement a S$10–$20 per ton carbon tax in 2019—committing to reducing emissions 36 percent compared with 2005 levels by 2030.

“The most economically efficient and fair way to reduce greenhouse gas emissions is to set a carbon tax, so that emitters will take the necessary actions,” said Singapore Finance Minister Heng Swee Keat. “Singapore is vulnerable to rises in sea level due to climate change. Together with the international community, we have to play our part to protect our living environment.”

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 Administration Environmental Rules in Crosshairs; Republican Group Proposes Carbon Tax

The Nicholas Institute for Environmental Policy Solutions at Duke University
The Nicholas Institute for Environmental Policy Solutions at Duke University

Using a rarely invoked Congressional Review Act, Congress has paved the way for President Donald Trump to roll back three Obama-era environmental regulations.

On Thursday, the Senate, in a 54-45 vote, gave final legislative approval to a measure repealing a new rule aimed at preventing the dumping of coal mining debris into nearby streams. When announcing the Stream Protection Rule in December, the Department of the Interior said that it would protect 6,000 miles of streams and 52,000 acres of forests.

On Friday, the House approved a Congressional Review Act resolution against the Bureau of Land Management’s methane venting and flaring rule. If approved by the Senate and signed by President Trump, the rule, which keeps companies from venting natural gas on public and tribal lands, would come off the books. In announcing the rule, which updated 30-year old regulations governing venting, flaring, and leaks of natural gas, the DOI said it would reduce the waste of public resources, cut methane emissions that contribute to climate change, and provide a fair return on public resources for taxpayers.

On the day Rex Tillerson was confirmed as Secretary of State, the House, with a strict party-line vote, killed a Securities and Exchange Commission transparency rule requiring companies to disclose mining- and drilling-related payments to foreign governments. When he was Exxon CEO, Tillerson had lobbied against the rule in part because it affected the company’s business dealings in Russia (subscription).

The Congressional Review Act allows Congress a small window to scuttle regulations before they take effect with a simple majority vote and blocks regulators from writing similar rules in the future unless Congress authorizes them via subsequent legislation.

Trump has also targeted specific regulations he believes hamper job growth, including the Waters of the U.S. Rule and the U.S. Environmental Protection Agency’s (EPA) Clean Power Plan, which aims to limit carbon pollution from existing power plants but is under a Supreme Court stay. On Wednesday, a group of Republicans led by former Secretary of State James A. Baker III, with former Secretary of State George P. Shultz and Former Secretary of the Treasury Henry M. Paulson Jr., met to discuss the prospect of imposing a national carbon tax, rather than using federal regulations, to address climate change.

“I really don’t know the extent to which it is manmade, and I don’t think anybody can tell you with certainty that it’s all manmade,” said James Baker, one of the members of the newly formed Climate Leadership Council. However, “the risk is sufficiently strong that we need an insurance policy and this is a damn good insurance policy.”

The group meets with White House officials this week about the plan to raise the cost of fossil fuels to bring down consumption—suggesting a tax of $40 a ton that would increase steadily over time. Tax proceeds, they state, would be redistributed to consumers on a quarterly basis in what they call “carbon dividends” that could be approximately $2,000 annually for a family of four.

Sessions Confirmed; Pruitt and Zinke Still Waiting

Jeff Sessions, President Donald Trump’s nominee for attorney general who has served as a Senator from Alabama since 1997, was confirmed in a 52-47 vote Wednesday evening. He is expected to be sworn in today.

This week, Bloomberg BNA reported that the environment may not be a top priority for Sessions, who as a senator regularly voted against environmental protection legislation—for example, against a rule limiting emissions of mercury and other hazardous air pollutants from coal-fired power plants (in 2012) and a rule setting greenhouse gas standards for new and modified power plants (in 2015).

For Scott Pruitt, the path to consideration by the full Senate to lead the U.S. Environmental Protection Agency (EPA) is not without controversy. On Monday, nearly 450 former EPA employees urged Congress to reject his nomination.

“Our perspective is not partisan,” they wrote, noting that many of the 447 names on the letter had served as career employees under both Republican and Democratic administrations. “However, every EPA administrator has a fundamental obligation to act in the public’s interest based on current law and the best available science. Mr. Pruitt’s record raises serious questions about whose interests he has served to date and whether he agrees with the long-standing tenets of U.S. environmental law.”

As Pruitt awaits his Senate confirmation, a new bill—HR861—aims to get rid of the agency altogether. Introduced during the Committee on Science, Space, and Technology hearing “Make the EPA Great Again,” its details are sparse.

Ryan Zinke, Interior Secretary nominee, and Rick Perry, Energy Secretary nominee, were both approved by Senate committee vote last month but await consideration by the full Senate. According to Senator Jon Tester, that could be a bit.

“I think that right now, the priority was put on DeVos, and Price, and on Sessions and Mnuchin, and I think that’s where the majority wants to move,” said Tester. “They want to move on those four very controversial ones before they get to Perry and Zinke, and I think Perry and Zinke, neither one of those are near as controversial. I think that they’ll go through, it’s just a matter of getting them floor-time to send them through.”

New Study Affirms Nonexistence of Global Warming Slowdown Amid Furor Over Earlier Study

A study by the National Oceanic and Atmospheric Administration (NOAA) that in 2015 found no evidence of a warming slowdown over the last decade is under the microscope again. At the time, challenges by climate change doubters prompted a U.S. House of Representatives committee to subpoena the study authors’ e-mails—and the threat of subpoenas was raised again on Sunday by House Science, Space and Technology Committee Chairman Lamar Smith (R-Texas) who accused NOAA scientists of politically motivated fraud.

Citing statements critical of the 2015 NOAA study (sometimes referred to as the Karl study after lead author Tom Karl) by former National Climatic Data Center scientist John Bates that appeared in The Daily Mail, Smith said, “Dr. Bates’ revelations and NOAA’s obstruction certainly lend credence to what I’ve expected all along—that the Karl study used flawed data, was rushed to publication in an effort to support the president’s climate change agenda, and ignored NOAA’s own standards for scientific study.”

The truth, according to a new analysis of data from ocean buoys, robotic floats, and satellites published in the journal Sciences Advances, is that earlier suggestions of a warming slowdown are incorrect and were the result of measurement error—a confirmation of the NOAA study conclusion.

“Our results mean that essentially NOAA got it right, that they were not cooking the books,” said lead author Zeke Hausfather when the study was published in January.

In Carbon Brief, Hausfather said, “What he [Bates] fails to mention is that the new NOAA results have been validated by independent data from satellites, buoys and Argo floats and that many other independent groups, including Berkeley Earth and the UK’s Met Office Hadley Centre, get effectively the same results.”

Bates, in an interview with E&E News on Tuesday, clarified that his issue was with the publication process and not with the data underlying the NOAA research.

To determine whether the 2015 NOAA study findings were correct, Hausfather and his colleagues took an independent look at ocean temperatures. Rather than combine old ship measurements with data from new buoys, as NOAA had done, they created temperature records from individual data sources. They found that—no matter the source, whether satellites, robotic floats, or buoys—the warming ocean trends matched those found in the NOAA study. The conclusion? Oceans have warmed consistently over the previous 50 years, at about 0.12 degrees Celsius per decade.

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.

Clean Air Act, Other Environmental Regulations Potentially Targeted by New Executive Order

The Nicholas Institute for Environmental Policy Solutions at Duke University
The Nicholas Institute for Environmental Policy Solutions at Duke University

On Monday, President Donald Trump signed an order that will require federal agencies to cut two existing regulations for every new rule and that will set an annual cap on the cost of new regulations with the exceptions of military and national security regulations. For fiscal year 2017, the cap will require that the cost of new regulations be completely offset by the rescinding of existing rules. Starting in 2018, the order directs the White House Office of Management and Budget head to give each agency a budget for increasing or decreasing regulatory costs.

Yet, legal experts suggest that the executive order could be impossible to implement because many regulations are required by laws written by Congress.

“It should be noted that no [executive order] can change underlying statutes adopted in the regular order by Congress and signed by the president,” Scott Segal, an industry lawyer at Bracewell LLP, told ClimateWire (subscription).

The new order comes on the heels of a Congressional Research Service study finding that the Clean Air Act’s regulatory structure “faces an unusual degree of uncertainty” this year, with one or more branches of government poised to weigh in on key existing EPA rules. Those rules include the Clean Power Plan, methane rules for new or substantially modified oil and gas operations, and EPA’s latest ambient air quality standards for ozone. Yet other rules could be vulnerable under the Congressional Review Act, which allows Congress 60 legislative working days from the time a federal regulation is finalized to pass a “joint resolution of disapproval” on the rule.

The House passed two bills on Wednesday invoking the seldom used Congressional Review Act to attempt to roll back the Stream Protection Rule and the Securities and Exchange Commission rule requiring oil, gas and mining companies to reveal payments made to foreign governments. The rules were among five Obama administration regulations, including the Bureau of Land Management’s restrictions on methane emissions from flaring and venting during oil and gas operations on public and tribal lands, being targeted for reversal.

Trump has targeted specific regulations he believes hamper job growth, including the Waters of the U.S. Rule and the U.S. Environmental Protection Agency’s (EPA) Clean Power Plan, which aims to limit carbon pollution from existing power plants but is under a Supreme Court stay.

Trump Nominates Supreme Court Justice; Some Cabinet Appointees Move Forward

President Donald Trump on Tuesday appointed 10th Circuit Judge Neil Gorsuch as his nominee to fill the Supreme Court seat left vacant last February by the death of Justice Antonin Scalia. The decision, which has implications for environmental policy, comes as Trump promised—within two weeks of taking office.

Gorsuch’s parallels to Scalia were described by SCOTUSBlog writer Eric Citron as “eerie.”

“He is an ardent textualist (like Scalia); he believes criminal laws should be clear and interpreted in favor of defendants even if that hurts government prosecutions (like Scalia); he is skeptical of efforts to purge religious expression from public spaces (like Scalia); he is highly dubious of legislative history (like Scalia); and he is less than enamored of the dormant commerce clause (like Scalia),” Citron wrote.

Although Gorsuch hasn’t ruled on many environmental matters, Inside EPA reports that he has called for limiting the discretion of the EPA and other agencies to interpret their own authority. Last year, in Gutierrez-Brizuelo v. Lynch, Gorsuch indicated he was fine without Chevron deference, the legal doctrine granting government agencies interpretation of ambiguous statutes unless their interpretation of a statute is unreasonable.

“We managed to live with the administrative state before Chevron. We could do it again,” wrote Gorsuch in the majority opinion.

In that opinion, Gorsuch argued that the meaning of the law is for judges, not federal bureaucrats, to decide.

“Where in all this does a court interpret the law and say what it is?” Gorsuch said. “When does a court independently decide what the statute means and whether it has or has not vested a legal right in a person? Where Chevron applies that job seems to have gone extinct.”

Also this week, several of Trump’s cabinet picks—Department of Energy Secretary nominee Rick Perry, U.S. Attorney General nominee Jeff Sessions and Department of the Interior nominee Ryan Zinke—gained committee approval and now move forward for consideration by the full Senate.

All 10 Democrats on the Senate Environment and Public Works Committee, which is tasked with considering whether to move Scott Pruitt’s nomination to lead the EPA to the full Senate, opted to boycott the Wednesday meeting. They said Pruitt failed to provide substantive answers to questions about rules governing air pollution, toxic chemicals and lead in gasoline. But today, Republicans on the committee advanced Pruitt’s nomination on a party line vote after suspending committee rules because of the boycott.

Rex Tillerson, the former chairman and chief executive of Exxon Mobil, was confirmed by the Senate as the next Secretary of State by a 56-43 vote and was sworn in Wednesday evening. At his confirmation hearing, he acknowledged that the climate is changing but said that he believes science is not conclusive on the issue of how rising greenhouse gas emissions will affect life on Earth. He expanded on his views when providing written responses to questions posed by two senators.

“I agree with the consensus view that combustion of fossil fuels is a leading cause for increased concentrations of greenhouse gases in the atmosphere,” he wrote to Senator Ben Cardin of Maryland. “I understand these gases to be a factor in rising temperature, but I do not believe the scientific consensus supports their characterization as the ‘key’ factor.”

Study Says Carbon Capture Necessary to Meet Paris Agreement Goal

The global climate can survive the possible withdrawal of the United States from the Paris Agreement, said the authors of a study published this week in the journal Nature Climate Change. The bigger threat, they said, is a world without widespread deployment of carbon capture and storage (CCS) technologies. Absent those technologies, achieving the climate treaty’s goal to limit warming to “well below” 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit that increase to 1.5 degrees Celsius could be impossible.

The authors reached that conclusion by reviewing past energy trends and examining nearly 150 countries’ pledged carbon reduction targets in the context of more than 100 climate simulations indicating how changes in energy production and use through 2040 could meet the 2 degrees Celsuis goal. To deal with the mix of targets—among them, straight emissions reductions (for example, 30 percent by 2030), lowered emissions intensity (emissions per unit of GDP), and technology deployment (for example, expansion of renewables)—the study used the Kaya Identity method, which breaks the carbon dioxide emissions rate into the human factors that affect it—broad factors such as GDP and more specific ones such as quantity of deployed renewables.

The study paints a good news-bad news picture of progress toward the 2 degrees Celsius goal. It indicates that the rate of global emissions has leveled off over the last few years due to a reduction in coal burning by China, a shift from coal to gas and renewables plus increased industrial energy efficiency in the United States, rapid expansion of renewables in the European Union, and slowed GDP growth in the U.S., EU and China. But sustaining this trend of decreasing carbon intensity of energy will not be easy. Although renewables development is keeping pace with 2 degree Celsius scenarios, nuclear power is lagging and CCS is barely past the starting gate. Only a few CCS facilities are operational, and only a couple of dozen are in construction.

“The greatest challenge is the slower-than-expected rollout of technologies to capture and permanently store carbon from fossil fuel and bioenergy combustion,” said study co-author Robbie Andrew of the Centre for International Climate and Environmental Research (CICERO). “Most scenarios suggest the need for thousands of facilities with carbon capture and storage by 2030, and this compares with the tens currently proposed.”

Thus far, high up-front costs have stymied development of commercial-scale CCS plants. If they don’t materialize, the world faces a harsh reality, suggests lead author Glen Peters of CICERO.

“If we don’t have CCS, then we will need to reduce use of fossil fuels much faster and in a much more disruptive way,” he said.

Study co-author Robert Jackson of Stanford University noted that CCS technology will prove even more crucial if President Donald Trump makes good on his pledge to revive the nation’s limping coal industry.

“There’s no way to reduce the carbon emissions associated with coal without carbon capture and storage,” Jackson said.

We may find out soon whether Trump will follow through on his pledge to remove the U.S. from the Paris climate deal when he issues an expected review of the U.S.’s involvement in multinational treaties.  InsideEPA lays out mechanisms through which the administration could do so (subscription).

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 Pens Article in Science on Clean Energy, Climate Policy

The Nicholas Institute for Environmental Policy Solutions at Duke University
The Nicholas Institute for Environmental Policy Solutions at Duke University

In a Policy Forum article published in the journal Science, President Barack Obama says that the national policy trend toward a clean-energy economy is “irreversible” and that the trend will continue due to “the mounting economic and scientific evidence” of its value. The article points to the scientific case for actions on climate change, energy efficiency and emissions—the latest in a series of publications on different policy topics Obama has penned in academic journals, including the Harvard Law Review and the New England Journal of Medicine.

“The United States is showing that GHG [greenhouse gas] mitigation need not conflict with economic growth. Rather, it can boost efficiency, productivity, and innovation,” Obama writes in Science just days before President-Elect Donald Trump takes office Jan. 20. “Evidence is mounting that any economic strategy that ignores carbon pollution will impose tremendous costs to the global economy and will result in fewer jobs and less economic growth over the long term. Estimates of the economic damages from warming of 4°C over preindustrial levels range from 1 percent to 5 percent of global GDP each year by 2100.”

The article goes on to cover many of the environmental policies that Trump has said he may axe when he takes office, including the Paris Agreement, which aims to hold the global average temperature increase to “well below” 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit that increase to 1.5 degrees Celsius.

“Were the United States to step away from Paris, it would lose its seat at the table to hold other countries to their commitments, demand transparency, and encourage ambition,” Obama writes. “This does not mean the next administration needs to follow identical domestic policies to my administration’s. There are multiple paths and mechanisms by which this country can achieve—efficiently and economically—the targets we embraced in the Paris Agreement.”

Obama also discusses the struggles of the coal industry, offering that because the cost of new electricity generation using natural gas is projected to remain low relative to coal, “it is unlikely that utilities will change course and choose to build coal-fired power plants, which would be more expensive than natural gas plants, regardless of any near-term changes in federal policy.”

While it will take some time to evaluate which of Trump’s statements about environmental policy actually provide guiding points for how he will govern, The Hill takes a look at what Trump has promised to date on environment and how much might actually be accomplished on day one. At a press conference Wednesday, Trump said he planned to make a decision on his nominee for the Supreme Court within two weeks of taking office—a decision that would have implications for environmental policy.

Trump Transition: Tillerson Confirmation Hearing

The Senate confirmation hearing for Trump’s pick to lead the Department of State began early on Wednesday with conversation and questions about Russian relations. Nominated for the most senior U.S. diplomat position, one responsible for enacting the U.S. government’s foreign policy, the former Exxon Mobil Corp. CEO Rex Tillerson told senators that relations with Russia could be improved under his leadership despite concerns over his ties to Russia and its president, Vladimir Putin.

“We’re not likely to ever be friends,” Tillerson said, noting that the United States and Russia do not hold the same values. “With Russia, engagement is necessary in order to define what that relationship going to be. There is scope to define a different relationship that can bring down the temperature around the conflicts we have today.”

On the topic of climate change, Tillerson expressed that the “risk of climate change does exist and the consequences could be serious enough that action should be taken.” But he added, “Our ability to predict that effect is very limited,” and precisely what actions nations should take “seems to be the largest area of debate existing in the public discourse.”

Tillerson said he viewed the issue primarily as an engineering problem and that Trump has “invited my views on climate change. “He knows I am on the public record with my views. I look forward to providing those, if confirmed, to him and policies around how the United States should carry it out in these areas.”

What else was discussed? Tillerson clarified, and appeared to reconfirm, his support for a carbon tax, and made comments about the importance of maintaining a seat at the table on how to address climate change with international treaties.

EIA: United States Could Become Energy Exporter

The United States has not been a net exporter of energy since 1953, but it could regain that status by 2026. That’s the finding of the U.S. Energy Information Administration’s (EIA) Annual Energy Outlook 2017, which makes energy market projections through 2050 for scenarios with a high oil price, high and low oil and gas resource and technology, and high and low economic growth as well as for a scenario in which the Clean Power Plan is not implemented. In most of those projections, natural gas production increases.

“Natural gas production, we think, is actually going to go up quite a bit, with relatively low and stable prices, so that’s going to support higher levels of domestic consumption, especially in the electric power and industrial sectors, where we think there will be quite a bit of natural gas use,” said EIA Administrator Adam Sieminski.

He noted that technology advances are helping reduce the cost for both fossil fuel production and renewables.

“EIA’s projections show how advances in technology are driving oil and natural gas production, renewables penetration, and demand-side efficiencies and reshaping the energy future,” he said.

Across the scenarios in the report, projections for energy consumption are more consistent than those for production, whose growth is dependent on technology, resource, and market conditions. The EIA finds that although zero-carbon renewables are expected to grow faster than any other energy source over the next three decades, their increase is not likely to significantly help the United States reduce greenhouse gas emissions to meet its obligations under the Paris Climate Agreement (subscription). Instead, energy-related carbon emissions will nearly flatline, falling from an annual rate of 1.4 percent between 2005 and 2016 to 0.2 percent between 2016 and 2040. That’s because carbon reductions from electricity plants’ switch from coal to natural gas and renewables will be offset by emissions from a growing chemical industry.

The fate of the Clean Power Plan will affect energy-related carbon emissions, according to the report (subscription), though not as much as greater use of renewables and natural gas. If the plan is rescinded or overturned, annual emissions would slightly increase to 5.4 billion metric tons through 2040. If the plan is implemented, those emissions would drop to 5 billion metric tons. The scenario without the Clean Power Plan has the highest greenhouse gas emissions, but such a scenario does not include a replacement for the Clean Power Plan, which the Clean Air Act currently appears to require. However, other avenues under the Clean Air Act may be used to pursue greenhouse gas emissions reductions.

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., Canada Ban Arctic Drilling

The Nicholas Institute for Environmental Policy Solutions at Duke University
The Nicholas Institute for Environmental Policy Solutions at Duke University

Editor’s Note: The Climate Post will not circulate Thursday, December 29, in honor of the New Year’s Holiday. It will return January 5.

Invoking the so-called 12(a) provision of the 1953 Outer Continental Shelf Lands Act, President Obama announced a permanent ban on offshore oil and gas drilling in more than 100 million acres of the Atlantic and Arctic. The ban affects oil and gas drilling in the Chukchi Sea and most of the Beaufort Sea off Alaska as well as in a stretch of the Atlantic Ocean from New England to Virginia. The announcement was made in conjunction with one by Canadian Prime Minister Justin Trudeau, who also put a freeze on leasing, agreeing to make Canada’s Arctic waters free of drilling—a policy subject to review every five years.

“These actions, and Canada’s parallel actions, protect a sensitive and unique ecosystem that is unlike any other region on earth,” Obama said. “They reflect the scientific assessment that, even with the high safety standards that both our countries have put in place, the risks of an oil spill in this region are significant and our ability to clean up from a spill in the region’s harsh conditions is limited. By contrast, it would take decades to fully develop the production infrastructure necessary for any large-scale oil and gas leasing production in the region—at a time when we need to continue to move decisively away from fossil fuels.”

He cited the region’s low contribution to U.S. energy as a reason for the ban.

“In 2015, just 0.1 percent of U.S. federal offshore crude production came from the Arctic and Department of Interior analysis shows that, at current oil prices, significant production in the Arctic will not occur,” Obama said.

Politico reports that Section 12(a) of the Outer Continental Shelf Lands Act includes no language that allows future presidents to undo the withdrawal of offshore areas from future leasing but fossil fuel advocates will likely argue that sufficient precedent exists for Trump to reverse the ban.

EPA Releases Drafts of Model Rules for Clean Power Plan

The U.S. Environmental Protection Agency (EPA) on Monday withdrew its draft proposed model rules for the Clean Power Plan from interagency review. The rules were an optional template for state implementation plans, designed to make it easier for states and power plants to use emissions trading to meet the Clean Power  Plan carbon reduction goals.

“While these drafts are not final and we are not required to release them at this time, making them available now allows us to share our work to date and to respond to the states that have requested information prior to the end of the Administration,” said Janet McCabe, acting assistant administrator for the EPA’s Office of Air and Radiation in a blog post. “We believe that the work we have done so far may be useful at this time to the states, stakeholders and members of the public who are considering or are already implementing policies and programs that would cut carbon pollution from the power sector.”

The drafts, released in response to multiple requests from states, describe how states might use a mass- or rate-based emissions scheme under the Clean Power Plan. They will not be published in the Federal Register, and they carry no legal authority.

The Clean Power Plan is presently stayed while a ten-judge panel reviews a legal challenge. A decision from the D.C. Circuit Court of Appeals’ rare “en banc” review is expected next year.

Report: Human-Caused Climate Change Intensified Some Extreme Weather Events in 2015

A report published by the American Meteorological Society links man-made climate change to 24 extreme weather events in 2015. The events include wildfires in Alaska, heavy rains in China, and droughts in Ethiopia. According to the report, which examined 30 events, climate change worsened 10 of last year’s deadly heat waves, three of which killed thousands of people in Egypt, India, and Pakistan.

“Without exception, all the heat-related events studied … were found to have been made more intense or likely due to human-induced climate change,” said the report compiled by 116 scientists from 18 countries using calculations based on observed data, computer simulations, and climate physics.

The study reflects an emerging area of climate research—one based on scientists’ prediction that climate change would affect the severity and frequency of extreme weather events and one that seeks to identify the likelihood that any given event was influenced by climate change.

“We do this for the same reasons we’ve always tried to understand our weather,” said Stephanie Herring, a scientist at the National Oceanic and Atmospheric Administration and lead editor of the new report. “We know if we can better understand why these events are happening, we can better predict and prepare for them in the future.”

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.

What Does a Trump Presidency Mean for Energy, Environment?

The Nicholas Institute for Environmental Policy Solutions at Duke University
The Nicholas Institute for Environmental Policy Solutions at Duke University

Businessman Donald Trump became the next U.S. president-elect early Wednesday after beating his opponent, former Secretary of State Hillary Clinton. Trump’s win could have great implications for the environment, as he’s promised a shift from the Obama administration’s energy and climate policies.

What could his presidency mean for energy policy?  It may take some time to evaluate what part of President Trump’s statements remain in the realm of the campaign, and what provides the guiding points for how he will govern.

One thing seems clear—Trump has voiced plans to eliminate the U.S. Environmental Protection Agency’s Clean Power Plan. Based on Section 111(d) of the Clean Air Act, the Clean Power Plan was first proposed in June 2014 to put limits on greenhouse gas emissions from existing fossil fuel-fired power plants and was finalized in August 2015. In setting those limits, the rule considers states’ ability to shift power generation to cleaner sources.

Currently, the Clean Power Plan is being reviewed by the U.S. Court of Appeals in the D.C. Circuit as a result of a suit brought by 27 states and some corporate interests over whether the EPA properly exercised its authority under the Clean Air Act. The case is expected to go to the Supreme Court next year—where the next president’s pick for a vacant court seat could determine the rule’s fate.

Other commentators have noted that Trump could decide to stop defending the Clean Power Plan in court, take steps to rescind the rule, or seek Congressional support for blocking it.

But the Clean Power Plan is not the only environmental measure facing uncertainty. Trump has voiced his intention to repeal federal spending on renewable energy in favor of a more “fossil fuel-centric” energy policy. Nevertheless, Forbes reports, utility-scale solar and wind, which have grown consistently due to lower costs, will continue to thrive under Trump.

More dramatically, Trump’s campaign statements even called into question if and how much of the EPA remains. In previous speeches, like one delivered at a March GOP debate, Trump proposed dismantling the EPA and naming climate change skeptic, Myron Ebell of the Competitive Enterprise Institute to head the EPA transition team.

I’d “get rid of [the EPA] in almost every form,” Trump said. “We are going to have little tidbits left but we are going to take a tremendous amount out.”

His presidency could also have implications for the Paris Agreement, which aims to hold the global average temperature increase to “well below” 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit that increase to 1.5 degrees Celsius.

But Trump has vowed to withdraw from the agreement, which officially came into force Nov. 4 and which global leaders are discussing this week in Marrakech, Morocco. Pulling out of the climate agreement would not require senate approval and could be done in a variety of ways. The effect could be substantial, according to analysis by Climate Interactive, because a large chunk—20 percent—of emissions cuts produced under the agreement come from the U.S., the world’s second largest emitter.

“If the U.S. pulls out of this, and is seen as going as a rogue nation on climate change, that will have implications for everything else on President Trump’s agenda when he wants to deal with foreign leaders,” said Alden Meyer of the Union of Concerned Scientists at the U.N.’s annual gathering in Marrakech.

Nations Grapple with Implementation of Paris Agreement; UN Says World Off Path to Meet Its Goal

A day before election results were finalized, the World Meteorological Organization (WMO) said that 2011–2015 was the hottest five-year period on record, evidencing an “increasingly visible human footprint.” The likelihood of many extreme events during the period was increased, according to the WMO, as a result of man-made climate change. The probability of some extreme high temperatures rose by a factor of 10 or more. The authors also said that 2016 will probably break the record for warmest year.

The report was released in Marrakech, Morocco, where nearly 200 nations are meeting at the 22nd Conference of the Parties (COP22), the annual United Nations (U.N.) climate conference, to begin hammering out details regarding how they are going to live up to their pledges to reduce emissions of carbon dioxide and other greenhouse gases under the Paris Agreement. Delegates’ goal: to come up with a work plan for the next two years, at the end of which they’ll assess progress on implementing the agreement’s measures.

COP22 comes on the heels of the unexpectedly quick entry into force of the agreement—and none too soon finds another report from the U.N. Environment Programme (UNEP) that suggests the pledges underpinning the agreement will put the world on course for a temperature rise of 2.9 to 3.4 degrees Celsius this century.

A scientific assessment of how countries’ actions and pledges tally with emissions trajectories consistent with the long-term goal of the United Nations Framework Convention on Climate Change, the report suggests that 2030 emissions will be 12 to 14 gigatons above levels needed to limit global warming to 2 degrees Celsius and 15 to 17 gigatons above levels needed to limit it to 1.5 degrees—even with follow through on Paris pledges.

“We are moving in the right direction: the Paris Agreement will slow climate change, as will the recent Kigali Amendment to reduce HFCs,” said UNEP Executive Director Erik Solheim. “They both show strong commitment, but it’s still not good enough if we are to stand a chance of avoiding serious climate change. If we don’t start taking additional action now, beginning with the upcoming climate meeting in Marrakesh, we will grieve over the avoidable human tragedy. The growing numbers of climate refugees hit by hunger, poverty, illness and conflict will be a constant reminder of our failure to deliver. The science shows that we need to move much faster.”

The report points to energy efficiency and action by non-state actors—the private sector, cities, regions, and other sub-nationals—as ripe for reducing the emissions gap.

EPA Finalizes Voluntary Carbon Trading Model for Clean Power Plan Compliance

Last week, the EPA forwarded a voluntary carbon trading model for Clean Power Plan compliance to the Office of Management and Budget for review. The model rules would allow states to comply with the federal carbon regulations for reducing emissions from power plants by participating in an optional emissions trading program. It would also earn states additional credit for early investments in alternative energy through a finalized Clean Energy Incentive Program.

A lot of states and electric utilities are interested in carbon trading, E&E News reported, because modeling suggests it is likely the simplest and least expensive way to meet Clean Power Plan goals (subscription).

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.

Clean Power Plan Goes to Court

The Nicholas Institute for Environmental Policy Solutions at Duke University
The Nicholas Institute for Environmental Policy Solutions at Duke University

What was scheduled to be about 3.5 hours turned into nearly seven on Tuesday as 10 judges heard oral arguments in a rare “en banc” review of the Clean Power Plan in the U.S. Court of Appeals for the District of Columbia Circuit.

The controversial Clean Power Plan, based on Section 111(d) of the Clean Air Act, was first proposed in June 2014 to limit greenhouse gas emissions from the existing fleet of fossil fuel-fired power plants. In setting those limits, the rule considers the ability to shift power generation to cleaner sources. Its supporters argue that the act gives the U.S. Environmental Protection Agency (EPA) the authority to regulate greenhouse gas emissions from power plants in this way. Its challengers allege the rule amounts to executive overreach because the EPA is effectively forcing owners and operators of coal plants to invest in their competitors—cleaner natural gas or renewable energy. They also contend that the rule undercuts the reliability of the electric grid by forcing coal-fired power plants offline. Moreover, opponents argue that EPA cannot regulate power plants under Section 111(d) in the first place because EPA already limits emissions like mercury under Section 112 of the act. Until these challenges are resolved, the Supreme Court has delayed implementation of the rule.

I was at the Tuesday hearing and wrote about some early takeaways for Bloomberg Government. From my seat in the courtroom, they included:

  • It’s now clear that the EPA possesses the authority to regulate greenhouse gases as a pollutant under the Clean Air Act. The question now is whether the methods used by the EPA were permitted under the act. As Judge Tatel noted, the Supreme Court “did that work” in Massachusetts v. EPA.
  • The case is caught up in a larger judicial discussion about how much deference to grant the executive branch. As Congress increasingly fails to legislate on major political issues of our day, the executive branch has been looking to existing statutes for the authority to address problems. But the courts are debating whether to provide the traditional broad deference to agencies as they pursue these initiatives, or whether “major” political issues require more scrutiny. EPA’s Clean Power Plan evoked this debate, and as a result may create more precedent that will guide future presidents on the extent of their power.
  • The court repeatedly reflected on the Supreme Court’s AEP v. Connecticut ruling, which established that the EPA had the authority to regulate existing power plants and thereby forbade Connecticut from suing those plant owners directly. Any victory for the petitioners in this case will need to explain why that recognition of authority in AEP v. Connecticut does not presume that the EPA possesses the authority underlying the Clean Power Plan.
  • Several jurists expressed concern that industry was arguing that the EPA could not consider the shifting of generation to cleaner sources in setting the standard, but nonetheless wanted that low cost option as a means of complying with the rule. Can the industry have its cake and eat it, too?
  • The judges’ proficiency in understanding the electric grid was impressive, clearly aided by legal briefs from grid operators. What was not as clear, however, is whether this proficiency had convinced them that managing the generation sources across that system constituted the “best system of emissions reduction” under the act.

Although it is difficult to guess a case’s outcome from any oral argument, all in all the government came through it with clear indications of support from three or four judges. At least four other judges, however, either did not speak or evaluated the case in such a Socratic manner that their positions were more mysterious. With six votes needed for a win, supporters of the rule will be holding their breath until the opinion appears. Overall, the final word on the Clean Power Plan may not come until 2018 or later.

Presidential Debate Highlights Stark Contrasts on Climate Change, Energy Policy

Climate change and energy policy were touched on in the first debate between the 2016 Democratic and Republican presidential nominees on Monday. Early on, Hillary Clinton, former secretary of state, accused businessman and opponent Donald Trump of dismissing climate change as a hoax created by China to harm American competitiveness—a point Trump denied.

“Donald thinks that climate change is a hoax, perpetrated by the Chinese,” said Clinton, implicitly referring to a tweet in which Trump claimed that global warming “was created by the Chinese” to benefit their manufacturing sector. “I think it’s real. And I think it’s important that we grip this and deal with it, both at home and abroad.”

Politifact reports that although Trump indicated the 2012 tweet was a joke, he has a record of using the word “hoax” to describe climate change, especially on Twitter. CNN reported that in September 2015 Trump told its reporters that “I am not a believer in climate change” and that he refuted climate change’s role in the rise in extreme weather phenomena.

On energy, Trump said he favors all forms of energy, but he noted that coal industry workers have been put out of work by cheap natural gas and federal environmental regulations. Clinton, on the other hand, suggested that clean energy could be an important job creator.

“We can deploy a half a billion more solar panels,” she said. “We can have enough clean energy to power every home. We can build a new modern electric grid. That’s a lot of jobs. That’s a lot of new economic activity.”

Trump responded with an implicit reference to the 2011 bankruptcy of the federally backed solar company Solyndra.

“She talks about solar panels,” replied Trump. “We invested in a solar company, our country. That was a disaster. They lost plenty of money on that one. … Now, look, I’m a great believer in all forms of energy, but we’re putting a lot of people out of work. Our energy policies are a disaster.”

Fortune reports that Department of Energy figures show that the loan program that funded Solyndra has created thousands of jobs and that taxpayers have profited from that program because the vast majority of its other loans went to successful projects and companies.

Climate Change and National Security

Climate change will have significant effects on national security, according to a new report by the Office of the Director of National Intelligence. It says these threats are wide-ranging—including adverse effects on food prices and availability, country stability, increased risk to human health, and heightened social and political tensions—and that these threats could affect the United States and other countries over the next 20 years.

“We’re already beginning to see the devastating effects of weather-related disasters, drought, famine, and damaged infrastructure on communities around the world,” Secretary of State John Kerry said in a statement. “Add to that an increased risk of conflict over water and land, and the large-scale displacement due to rising sea levels, and it’s not hard to see why the Pentagon has deemed climate change a ‘threat-multiplier,’ exacerbating the pressures and challenges far too many countries are already facing.”

The release of the report comes as the White House announced a new policy framework requiring federal agencies to take the impacts of climate change into account when making national security-related policies and plans. It directs several federal agencies to work together to include climate change in their national security planning—providing a timeline of 90 days to create an action plan and 150 days to create a plan to implement it.

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.

New York Joins Handful of Other States with Ambitious Clean Energy Targets

The Nicholas Institute for Environmental Policy Solutions at Duke University
The Nicholas Institute for Environmental Policy Solutions at Duke University

By 2030, half of the energy produced in the state of New York will come from renewables, according to a new policy adopted Monday by the state’s public service commission. The move is expected to reduce greenhouse gas emissions by 40 percent from 1990 levels (80 percent by 2050) and to attract billions in clean energy investment.

“New York has taken bold action to become a national leader in the clean energy economy and is taking concrete, cost-effective steps today to safeguard this state’s environment for decades to come,” said New York Gov. Andrew Cuomo. “This Clean Energy Standard shows you can generate the power necessary for supporting the modern economy while combatting climate change. Make no mistake, this is a very real threat that continues to grow by the day and I urge all other states to join us in this fight for our very future.”

The plan calls for New York to retain its nuclear reactors—though The Washington Post reports that those facilities don’t count as part of the 50 percent renewables target. According to New York regulators, doing so might cost $965 million over two years but could lead to net benefits of $4 billion due to avoided carbon dioxide emissions and air pollution. While supporters of this provision applaud New York’s effort to retain its emissions-free nuclear generation, opponents are likely to challenge the nuclear subsidies on the grounds they are discriminatory, hurt markets, and intrude on federal authority.

New York is not the first state to announce an ambitious greenhouse gas reduction target. In April 2015, California announced it planned to cut those emissions by 40 percent below 1990 levels in the same time frame with renewables increases. Like California, New York plans to phase in its renewables increase; 31 percent of its energy is to come from renewables by 2021 and 50 percent by 2030. Those targets are meant to give utilities and clean energy companies time to develop their business models.

The only states with higher renewables standards are Vermont, which set a target of 75 percent renewable power by 2032, and Hawaii, which set a target of 100 percent renewable power by 2045.

White House to Federal Agencies: Consider Climate Change Impacts

In an action with broad implications for thousands of projects, including energy and mineral development on public lands, natural gas import and export facilities, and transportation projects, the Obama administration issued final guidance on how federal agencies should consider greenhouse gas emissions and climate change impacts when conducting reviews under the National Environmental Policy Act (NEPA) (subscription).

“Focused and effective consideration of climate change in NEPA reviews will allow agencies to improve the quality of their decisions,” the guidance states. “Identifying important interactions between a changing climate and the environmental impacts from a proposed action can help Federal agencies and other decision makers identify practicable opportunities to reduce greenhouse gas emissions, improve environmental outcomes, and contribute to safeguarding communities and their infrastructure against the effects of extreme weather events and other climate-related impacts.”

The guidance, the product of a six-year effort by the White House Council on Environmental Quality, advises agencies to quantify projected greenhouse gas emissions of proposed federal actions whenever the necessary methodologies and data are available. It also encourages them to draw on their experience and expertise to determine the appropriate level and extent of quantitative or qualitative analysis required to comply with NEPA and to consider alternatives that would increase the climate-change resilience of the action and affected communities.

“From the public standpoint, we are now going to know what all of our decisions add up to in terms of impacting climate change,” said Christy Goldfuss, managing director of the Council on Environmental Quality. “You can think of all the different federal decisions, and how they all add up. We have numbers where we can actually say, ‘this is a huge decision, given the amount of greenhouse gases coming out of it.’ And that gives the public a chance to really weigh in on decision-making.”

Several media outlets pointed out that because the White House guidance is not a regulation, agencies are not legally bound to follow it.

Clean Power Plan Analysis: National Costs Low, State Costs Varied

Wednesday marked one year since the U.S. Environmental Protection Agency formally rolled out the Clean Power Plan, which aims to reduce carbon emissions from power plants. Even with the February stay by the U.S. Supreme Court, which halted implementation of the plan pending resolution of legal challenges, some say the plan is having an impact while others are finding more reason to explore the legality of the rule (subscription).

Should the rule survive judicial review, a new paper by the Nicholas Institute for Environmental Policy Solutions uses the Nicholas Institute’s Dynamic Integrated Economy/Energy/Emissions Model to evaluate Clean Power Plan impacts on the U.S. generation mix, emissions, and industry costs. It indicates that industry trends are likely to make Clean Power Plan compliance relatively inexpensive, with cost increases of 0.1 to 1.0 percent. But policy costs can vary across states, which might lead to a patchwork of policies that, although in their own best interests, could impose additional costs nationally.

“The answer is not the same for everyone in terms of what’s going to be the least-cost way for a particular state to approach this policy,” said lead author and Nicholas Institute Senior Economist Martin Ross. “Nationally, it would make the most sense to have a broadly coordinated policy where you can take advantage of the usual economic [tools] to spread the cost reductions around and pick up the most cost-effective sources for reducing emissions.”

Similar findings were presented at a conference of the National Association of Regulatory Utility Commissioners. Because of lower-than-expected natural gas prices, renewable power, and extended federal tax credits for that power, the country as a whole is set to meet the Clean Power Plan’s early goals, reports ClimateWire.

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.