Report Says Global Carbon Dioxide Emissions on the Rise

The Nicholas Institute for Environmental Policy Solutions at Duke University

The International Energy Agency’s (IEA) first Global Energy and CO2 Status Report, released last week, had two major findings: preliminary estimates for 2017 suggest that global energy demand rose 2.1 percent—more than twice the previous year’s rate—and carbon dioxide emissions rose 1.4 percent, the first time they’ve increased in three years. Although emissions increased in most countries, they decreased in the United States and several other countries largely due to renewable energy deployments.

“The significant growth in global energy-related in 2017 tells us that current efforts to combat climate change are far from sufficient,” said IEA Executive Director Fatih Birol, who identified “a dramatic slowdown in the rate of improvement in global energy efficiency” as one of the causes.
That improvement in energy efficiency slowed from a rate of 2.3 percent a year over the last three years to 1.7 percent last year. Meanwhile, some 70 percent of 2017’s increased energy demand was met by fossil fuels. Emissions decreases in the United States, the U.K., Japan, and Mexico were insufficient to cancel out the increases in China and India.

According to the report, global energy-related carbon dioxide emissions reached a historical high of 32.5 gigatons in 2017, and current efforts to curb them are insufficient to meet Paris Agreement targets to limit global warming to well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit it to 1.5 degrees Celsius.

“Global emissions need to peak soon and decline steeply to 2020; this decline will now need to be even greater given the increase in emissions in 2017,” the report says.

Some of the report’s other findings:

  • Oil demand grew by 1.6 percent, more than twice the average annual rate over the past decade, driven by the transport sector and rising petrochemical demand.
  • Natural gas consumption grew 3 percent, the most of all fossil fuels, driven by China and the building and industry sectors.
  • Coal demand rose 1 percent, reversing declines over the previous two years, driven by an increase in coal-fired electricity generation, mostly in Asia.
  • Renewables had the highest growth rate of any fuel, meeting a quarter of world energy demand growth.
  • Electricity generation increased by 3.1 percent, much faster than overall energy demand, with India and China accounting for most of the growth.
  • Fossil fuels accounted for 81 percent of total energy demand, continuing a three-decades-long trend.

Decision on Tailpipe Emissions Standards Expected

The U.S. Environmental Protection Agency (EPA) is up against an April 1 deadline to determine whether to loosen vehicle tailpipe emissions standards for the years 2022 to 2025, leave them unchanged, or increase them. Reports in the Wall Street Journal and other media outlets suggest the decision is likely to indicate that future vehicle emissions standards should be eased.

The rules, negotiated with the vehicle industry in 2011, presently require automakers to nearly double the average fuel economy of new cars and trucks to 54.5 miles per gallon by 2025.

“The draft determination has been sent to OMB [Office of Management and Budget] and is undergoing interagency review,” said Liz Bowman, an EPA spokeswoman. “A final determination will be signed by April 1, 2018, consistent with the original timeline.”

Unclear is how a decision to ease standards might affect California, which can set its own fuel standards and is authorized to do so under the Clean Air Act. The state has suggested it may withdraw from the nationwide program if the EPA eases regulations.

“California is not the arbiter of these issues,” said Scott Pruitt, EPA administrator, in an interview with Bloomberg. The state “shouldn’t and can’t dictate to the rest of the country what these levels are going to be.”

“We have not seen the document in question, and California had no input into its content,” said California Air Resources Board spokesman Stanley Young. “We feel strongly that weakening the program will waste fuel, increase emissions and cost consumers more money. It’s not in the interest of the public or the industry.”

EPA Holds Final Clean Power Plan Hearing

The U.S. Environmental Protection Agency (EPA) wrapped up public hearings concerning its repeal of the Clean Power Plan—an Obama-era regulation that sets state-by-state carbon emissions reduction targets for power plants—in Wyoming on Tuesday. All public comments on the proposed repeal of the Clean Power Plan are due April 26.

Dialogue in Tuesday’s hearing followed the trend of the EPA’s three other public hearings, with some arguing that the Clean Power Plan is needed to combat climate change and others questioning its effectiveness in achieving climate goals. One point of contention is how the costs and benefits of the rule were calculated. Opponents say the benefits were inflated and the costs were minimized. Supporters say the rule actually undercounts the additional benefits of reducing hazardous air pollutants.

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

Any replacement rule may be affected by the EPA’s plans to propose measures to limit which studies the EPA can use in pollution rules—measures that could potentially reduce calculation of the health benefits that come along with controlling carbon dioxide emissions.

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.

Study: Cutting Emissions Sooner Could Save 153 Million Lives This Century

The Nicholas Institute for Environmental Policy Solutions at Duke University

A new study suggests that premature deaths linked to air pollution would fall across the globe if nations agree to limit warming to 1.5 degrees Celsius above pre-industrial levels rather than postponing emissions cuts and allowing warming to reach 2 degrees Celsius. The research funded by the National Aeronautics and Space Administration (NASA), led by scientists at Duke University, and published in the journal Nature Climate Change finds that targeting the more ambitious of the Paris Agreement’s two temperature goals—although more costly—could avoid 153 million premature deaths.

“The lowest-cost approach only looks at how much it will cost to transform the energy sector,” said lead author Drew Shindell of Duke’s Nicholas School of the Environment. “It ignores the human cost of more than 150 million lost lives, or the fact that slashing emissions in the near term will reduce long-term climate risk and avoid the need to rely on future carbon dioxide removal. That’s a very risky strategy, like buying something on credit and assuming you’ll someday have a big enough income to pay it all back.”

The study is the first to project the number of lives that could be saved, city by city, in 154 of the world’s largest urban areas if nations agree to speed up the emissions reductions timetable and limit global temperature rise to 1.5 degrees Celsius. The greatest gains in saved lives would occur in Asia and Africa. India’s Kolkata stands to benefit most—seeing 4.4 million fewer early deaths by 2100 by cutting carbon pollution.

The researchers ran computer simulations of future emissions of carbon dioxide and associated pollutants such as ozone and particulate matter under three scenarios: accelerated emissions reductions and almost no negative emissions over the remainder of the 21st century, slightly higher emissions in the near term but enough overall reductions to limit atmospheric warming to 2 degrees Celsius by century’s end, and near-term emissions reductions consistent with a level that would limit atmospheric warming to 1.5 degrees Celsius. The researchers then calculated the human health impacts of pollution exposure under each scenario using well-established epidemiological models based on decades of public health data on air-pollution-related deaths.

Groups Press FERC to Revisit Energy Storage Decision

In February, the Federal Energy Regulatory Commission (FERC) unanimously approved rules to remove barriers to batteries and other storage resources in U.S. power markets, a potential game-changer for integration of renewables onto the grid. Monday, the Midcontinent Independent System Operator (MISO), the National Association of Regulatory Utility Commissioners (NARUC), and others filed separate requests asking FERC to reconsider this storage order. Some said that the proposal infringes on state authority.

“NARUC seeks clarification because the final rule specifies that states will not be allowed ‘to decide whether electric storage resources in their state that are located behind a retail meter or on the distribution system are permitted to participate in the [regional transmission organization/independent system operator] markets,’” the NARUC’s rehearing request said. “This statement should be deleted from the final rule.”

FERC oversees the regional transmission organizations (RTOs) and independent system operators (ISOs) that run wholesale electricity markets. In doing so, FERC establishes market rules that “properly recognize the physical and operational characteristics of electric storage resources” in its February decision after finding in November 2016 that existing market rules created barriers to entry for those resources. Under the rules, grid operators can use technologies such as batteries and flywheel systems to dispatch power, to set energy prices, and to offer capacity and ancillary services.

Although FERC’s rule directs regional grid operators to set a minimum size requirement for energy storage resources to participate in their markets that doesn’t exceed 100 kilowatts, it deferred issues about aggregations of smaller distributed energy resources to a technical conference in early April. MISO asked for clarification regarding the minimum size of storage for wholesale market participation, bid parameters, and a six-month extension on the order’s deadlines.

Pruitt May Release Measures to Restrict Science Used in Regulations

U.S. Environmental Protection Agency (EPA) Administrator Scott Pruitt may have plans to propose measures to limit exactly what data and studies the EPA can use in pollution rules. The idea would be to cease using scientific findings whose data and methodologies are not public or cannot be replicated.

Pruitt hinted at these intentions in a closed door meeting at the Heritage Foundation and in recent media interviews, saying “we need to make sure their [EPA] data and methodology are published as part of the record. Otherwise, it’s not transparent. It’s not objectively measured, and that’s important.”

Although formal plans have not been released, interviews indicate that Pruitt’s new rules would require EPA regulators to consider scientific studies that make the underlying data and methodology available to the public. The same rules would govern studies funded by the EPA. It is unclear whether the EPA would apply the directive to regulations now in place or only to new regulations. The former could affect several regulations at the EPA, including some wide-ranging air-quality regulations based on two studies from the 1990s that do not reveal their data.

Some critics, like Yogin Kothari of the Union of Concerned Scientists’ Center for Science and Democracy, say the move could undermine environmental laws. “It’s just another way to prevent the EPA from using independent science to enforce some of our bedrock environmental laws, like the Clean Air Act,” said Kothari.

Steve Milloy, who served on Trump’s EPA transition team and attended the meeting at the Heritage Foundation, said Pruitt’s plan could come “sooner rather than later.”

A similar proposal was passed in the U.S. House of Representatives in March 2017 as the Honest and Open New EPA Science Treatment (HONEST) Act, which would prohibit the use of “secret science” at the EPA. It’s since been referred to the Senate Environment and Public Works Committee.

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.

 

Regional Grid Operators Weigh in on Resilience

The Nicholas Institute for Environmental Policy Solutions at Duke University

Regional grid operators filed comments on efforts to enhance the resilience of the bulk power system in a proceeding initiated by the Federal Energy Regulatory Commission (FERC) after rejecting a Notice of Proposed Rulemaking by U.S. Department of Energy (DOE) Secretary Rick Perry to subsidize coal and nuclear power plants. The comments by the nation’s federally overseen regional transmission organizations and independent system operators (ISOs) came in response to two dozen questions FERC asked about resilience.

The message of operators to FERC: allow them time to develop additional resilience measures and respect their existing efforts aimed at ensuring that grids can cope with man-made and natural disasters that pose a risk of electricity service disruption. None of the operators suggested that resilience requires preservation of uneconomical power plants. All appeared to be open to, in the words of the New York ISO, “additional dialogue regarding concepts for market-based resilience services and practices.”

Nevertheless, the PJM Interconnection filing departed from the other operator filings. In essence, PJM wants FERC to direct operators to update market compensation for power plants to reflect resilience attributes. The request comes amid concerns that PJM’s resilience filing and ongoing price reforms could basically have the same effect as the DOE subsidy proposal rejected by FERC in January—a proposal that would have benefited coal and nuclear generators.

Those concerns were echoed in a “joint statement on power market principles,” released last week by U.S. public power and rural electric co-ops, state utility advocates, wind and solar energy groups, the Natural Resources Defense Council and the American Council on Renewable Energy. The group asked FERC to apply technology-neutral and market-based solutions to the resilience docket.

The Perry proposal and the FERC proceeding it inspired are likely to lead to some kind of change. Last week at CERAWeek in Houston, FERC Chairman Kevin McIntyre said the lack of compensation to power plants for resilience contributions would be of concern to FERC and a particularly complicated element of the proceeding. He also said that “only hypothetically is nothing an option. I will be very surprised if we go through all that process and take no action.”

At the heart of that action could be how FERC defines resilience. In its filing, the California ISO questioned FERC’s working definition of resilience. It wrote that FERC’s reliance order “does not address any potential overlap between resilience and reliability, clearly articulate the differences between the two, state why a new, wholly separate concept is needed, or indicate what specific requirements a resilient system must meet.”

Two of my colleagues at Duke University’s Nicholas Institute for Environmental Policy Solutions made a similar point last month, noting that whether resilience is “a stand-alone concept or just a component of the well-recognized concept of reliability” is a “foundational question”—one that spells the difference between new market and regulatory responses or tweaks to existing reliability mechanisms. They conclude that “A well-functioning market that clearly defines and values the attributes needed for grid reliability and resilience—in a fuel-neutral, technology-neutral fashion—will comply with the law and support both concepts.”

China Unveils Environmental Restructuring Plan

A draft plan, introduced Tuesday, reorganizes China’s government into a State Council composed of 26 ministries and commissions. Compared with the current setup, the number of ministerial-level entities is reduced by eight and that of vice-ministerial-level entities by seven.

One of the changes is renaming the Ministry of Environmental Protection. The new Ministry of Ecological Environment would take over responsibility for climate change policy and become the only entity in charge of policies related to climate change, water resource management, and pollution.

“China’s decision to create a new environment ministry in China, which includes the country’s climate change agenda, is a big shake up in the country but may well be a positive long-term development,” said Jackson Ewing, senior fellow at Duke University’s Nicholas Institute for Environmental Policy Solutions and adjunct associate professor at the Sanford School of Public Policy. “Although the practical impacts of China’s reorganization are not yet apparent, the Ministry for Ecological Environment appears poised to carry a strong mandate to strengthen the country’s air, water, soil and ecological focus.”

Tonny Xie, director of the Secretariat for the Clean Air Alliance of China noted that the change is “ … also a sign that China will continue the unprecedented commitment and investment to improve environmental quality in future, which will generate significant market potential for clean technologies.”

The plan, submitted by the government to parliament is expected to be approved this weekend after deliberations by the National People’s Congress, China’s parliament.

China, the world’s largest polluter, is in the midst of launching a nationwide emissions trading system to set emissions quotas for companies in the power sector. Announced in December, the program could more than double the volume of worldwide carbon dioxide emissions covered by tax or tradable permit policy.

Trump Fires Tillerson, Nominates New Secretary of State

President Donald Trump on Tuesday announced the exit of Secretary of State Rex Tillerson and the nomination of Mike Pompeo, the present director of the CIA, to replace him.

“Rex and I have been talking about this for a long time. We got along actually quite well, but we disagreed on things,” Trump said. “When you look at the Iran deal, I think it’s terrible, I guess he thought it was OK … So we were not really thinking the same. With Mike Pompeo, we have a very similar thought process. I think it’s going to go very well.”

Tillerson stood as a lonely voice in the Trump administration urging the president not to withdraw from the Paris Agreement, a global treaty that aims to limit global warming to well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit that increase to 1.5 degrees Celsius. But Trump announced last year that the United States would be the only nation in the world not party to the agreement, though it cannot formally withdraw until 2020.

As a former Congressman, Pompeo described the new 2015 Paris Agreement as a “costly burden” to the United States. He noted then that “Congress must also do all in our power to fight against this damaging climate change proposal and pursue policies that support American energy, create new jobs and power our economy.”

Pompeo will appear before the Senate Foreign Relations Committee for his confirmation hearing in April, but his path to confirmation is uncertain.

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.

Tax Credit Could Help Increase Carbon Capture and Storage, Some Say

The Nicholas Institute for Environmental Policy Solutions at Duke University

As part of the Bipartisan Budget Act of 2018, Congress gave a boost to carbon capture—a method for diverting emissions from crude production and coal- and gas-fired power plants—through the so-called 45Q tax credit. For every qualifying project, the boosted 45Q doubles a pre-existing tax credit to $50 per ton of carbon dioxide buried in underground storage and to $35 per ton that is used in a consumer product or to stimulate oil recovery.

“The act also expands the ‘EOR’ [enhanced oil recovery] credit to carbon oxides used for other industrial purposes, changes the definition of the entities to whom the credit applies, and sets capture thresholds for small facilities, electric generating facilities, and direct air capture facilities,” write Frederick R. Eames and David S. Lowman Jr. in Lexology.

Many see the potential for this credit to spur a renewed look at projects with carbon capture and storage and re-enliven policies around it.

“Now, with [the tax credit], the economics are looking very attractive,” said Roger Ballentine, a consultant and board member of 8 Rivers Capital, which is financing NET Power, a carbon capture project near Houston. “People are asking, should I do this. Before, those conversations weren’t even happening. Any major project like this will be a challenge. But the business case gets that much better with [the tax credit]. Once there is a business case, that’s why they happen.”

The nudge from the tax credit could help the technology to be more profitable.

“The reality of any technology development, particularly in the energy space, is it’s very difficult to move technologies into the marketplace without some sort of push,” said Walker Dimmig, spokesperson for NET Power. “The energy marketplace is incredibly competitive.”

Court Orders Enforcement of Methane Leak Rule

Last week, U.S. District Judge William Orrick issued a preliminary injunction blocking the Trump administration’s attempt to delay an Obama-era Bureau of Land Management (BLM) rule that sought to reduce venting, flaring and leakage of methane gas on public and tribal lands. The U.S. District Court for the Northern District of California ruled that BLM did not justify its decision to delay core provisions of its 2016 Methane and Waste Prevention Rule by one year.

“The BLM’s reasoning behind the Suspension Rule is untethered to evidence contradicting the reasons for implementing the Waste Prevention Rule, and so plaintiffs are likely to prevail on the merits,” Orrick wrote. “They have shown irreparable injury caused by the waste of publicly owned natural gas, increased air pollution and associated health impacts, and exacerbated climate impacts.”

In the lawsuit brought by environmental groups and two states—California and New Mexico—Orrick also denied a request to move the case to Wyoming where a similar case is pending.

The ruling was only on the BLM’s proposed one-year delay. It does not directly affect the BLM’s proposed repeal of several methane rule provisions announced earlier this month. That proposal removes at least seven elements introduced under Obama’s rule, including creation of waste minimization plans by companies and emissions reduction standards for well completion.

In announcing the changes to that portion of the rule, the BLM said that many of the former requirements were duplicative of state laws or had a higher cost or lower benefit than previously estimated. Once the BLM proposed repeal is published in the Federal Register, a 60-day public comment period will begin.

Reports Indicate Growth in Renewables in Cities

Worldwide, 101 cities are getting at least 70 percent of their total electricity supply from renewable energy—more than double the number since the 2015 signing of the Paris Agreement according to the Carbon Disclosure Project, which tracks climate-related commitments by corporations and governments.

The London-based Carbon Disclosure Project attributes the increase to the growing number of cities reporting to it (currently 570) and to a global shift to renewable energy. It reports that cities are investing $2.3 billion in 150 clean energy development projects and $52 billion in low-carbon urban infrastructure projects such as energy efficiency upgrades, electric transport networks and smart city programs.

“Cities are responsible for 70 percent of energy-related CO2 [carbon dioxide] emissions and there is immense potential for them to lead on building a sustainable economy,” said Kyra Appleby, director of cities at the Carbon Disclosure Project.

Notably, more than 40 of the cities identified in the report are powered entirely by renewables, including Burlington, Vermont, which gets its electricity from wind, solar, hydro and biomass. Although only a few of the 100-plus U.S. cities that report their energy mix to the project have achieved 70 percent or greater renewables generation, another 58 U.S. cities, including Atlanta and San Diego, are planning to hit the 100 percent renewables target within 20 years.

Meanwhile, two new studies shed light on renewables potential and actual deployment in the United States.

In one, scientists at the University of California at Irvine, the California Institute of Technology, and the Carnegie Institution for Science revealed that the country could reliably meet about 80 percent of its electricity demand with solar and wind power generation “by building either a continental-scale transmission network or facilities that could store 12 hours’ worth of the nation’s electricity demand.” Both options would entail huge—but not inconceivable—investments, they said.

A study by Southern Alliance for Clean Energy revealed that solar deployment is growing in some southern states, including North Carolina, where the solar market, one of the nation’s largest, is driven by favorable implementation of federal laws requiring renewable energy procurement, a state tax credit, and a renewable energy mandate. South Carolina, Florida, and Georgia are also emerging as significant state markets.

Globally, falling costs are playing a role in renewables uptake. According to data released by the World Economic Forum, unsubsidized renewables were the cheapest source of electricity in 30 countries in 2017, and they are expected to be consistently more cost effective than fossil fuels globally by 2020.

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

Cuts for EPA, DOE in Trump Budget Proposal, as Congressional Budget Passes

The Nicholas Institute for Environmental Policy Solutions at Duke University

President Donald Trump’s $4.4 trillion 2019 budget proposal, released Monday, echoed themes from the previous year’s budget priorities: steep cuts to domestic programs with large increases for defense. It outlines leaner budgets across federal agencies, including the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy (DOE). Trump’s proposed budget, which was assembled before the Congress passed a two-year spending bill last week, calls for the EPA to operate with $5.4 billion ($6.15 billion after adjustments) beginning Oct. 1. That budget would be the EPA’s lowest since the early 1990s and about 25 percent below the 2017 mark of $8.1 billion.

The DOE would receive $30.6 billion, which is nearly 2 percent below its 2017 budget.

The proposal would also eliminate virtually all climate change-related programs at the EPA. In outlining the budget, the Trump administration said the EPA is refocusing on “core activities” and eliminating “lower priority programs,” including a program to promote partnerships with the private sector to tackle climate change.

The Trump administration said it wants to eliminate programs that are duplicative of those of other agencies or that it thinks state and local governments should assume—a proposal that appears to dovetail with the EPA’s strategic plan, also released Monday, that outlines a retrenchment around core issues like clean air, clean water, remediation of contaminated sites, and chemical safety. In place of program categories such as “clean air and global climate change,” Trump’s proposed budget allocates $112 million for a new line item called “core mission” and $357 million for “rule of law and process.”

Like climate-related programs at the EPA, DOE’s renewable energy programs are targeted for reductions in the proposal. According to numbers released by DOE, energy and related programs would receive $2.5 billion under the proposed 2019 budget, a drop of $1.9 billion from the 2017 budget. The Department of Energy Efficiency and Renewable Energy would take a 65 percent cut. By contrast, the Office of Fossil Energy would get a 20 percent funding increase.

Unlike Trump’s budget proposal, the bipartisan two-year budget deal passed last week appears to include government funding for climate-related programs. It gives the National Oceanic and Atmospheric Administration and the U.S. Army Corps of Engineers money to study weather patterns and to prepare for the consequences of disasters, and it preserves tax incentives for renewable energy sources, electric vehicles and energy efficiency programs.

Under the bipartisan deal, nondefense discretionary spending gets a $63 billion boost in fiscal year 2018 and another $68 billion in fiscal year 2019. Almost all research agencies, including the EPA, fall under this nondefense category. It’s still unclear how any funds will be divided among individual agencies and programs. Details of who gets what in the 2018 budget will come as Congress works on an omnibus appropriations bill, expected in late March.

Methane Emissions Regulation Revised

The U.S. Department of the Interior’s Bureau of Land Management (BLM) will replace most of the requirements of a 2016 Obama-era regulation aimed at restricting harmful methane emissions from oil and gas production on federal lands. The Monday proposal came after a previous announcement that the BLM would delay implementing the Obama-era rule until January 2019.

The rule forced energy companies to capture methane that’s vented to the atmosphere or burned off (“flared”) at drilling sites because it pollutes the environment. Many companies consider the rule unnecessary and overly intrusive, but many environmental groups warn that methane emissions from oil and gas operations are the second largest industrial contributor to climate change in the United States.

The new BLM proposal removes at least seven elements introduced under Obama’s rule, including creation of waste minimization plans by companies and standards for well completion. In announcing the changes to the rule, the BLM said that many of the former requirements were duplicative of state laws or had a higher cost or lower benefit than previously estimated.

The BLM is expected to publish the proposed rule in the Federal Register, opening it up for 60 days of public comment before issuing a final rule could be issued.

But even as the Trump administration is retreating from regulating methane leaks, new research published in the journal Climate Policy suggests it is still possible to make progress on reducing methane emissions by using a proposed North American Methane Reduction framework to direct research and to enhance monitoring and evaluate mitigation efforts.

This study, penned by my Nicholas Institute for Environmental Policy Solutions colleague Kate Konschnik, suggests that state and provincial governments, industry, and nongovernmental organizations can use the framework to coordinate regulations, voluntary industry actions, and scientific developments in methane estimation and mitigation, thereby bridging the divide between science and policy and driving new research that in turn can support better policies when governments are ready to act.

California Adopts Emissions Standards for Trucks

The California Air Resources Board (CARB) voted unanimously to adopt emissions standards for heavy-duty trucks starting with the 2020 model year, departing from federal rules in two sectors. The state not only approved its own version of federal regulations covering truck trailers, but it is also making plans to conduct its own enforcement.

The state has special authority under the 1970 Clean Air Act to make its own pollution and greenhouse gas rules for “mobile sources” such as cars and trucks. Some are concerned that the Trump administration may attempt to unravel the state’s authority to set pollution standards that are higher than federal rules.

Comments made by U.S. Environmental Protection Agency (EPA) Administrator Scott Pruitt to the Senate Environmental and Public Works Committee leave open that possibility.

“Federalism doesn’t mean that one state can dictate to the rest of the country,” Pruitt said, noting that “we recognize California’s special status in the statute and we are working with them to find consensus around these issues.”

CARB Chairwoman Mary Nichols pointed to a 2013 waiver for California to implement its own, tougher tailpipe standards.

“The EPA would have to take unprecedented legal action to try to revoke that waiver,” she said. “Our best legal judgment is that that can’t be done.”

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.

Coastal States Oppose Offshore Drilling Proposal

The Nicholas Institute for Environmental Policy Solutions at Duke University

Attorneys general of a dozen coastal states—North Carolina, California, Connecticut, Delaware, Maine, Massachusetts, Maryland, New Jersey, New York, Oregon, Rhode Island and Virginia—are expressing opposition to the Trump administration’s proposal to expand development of oil and gas in the Atlantic and Pacific oceans, calling it “outrageous” and “reckless.” In a letter, they called on U.S. Department of the Interior Secretary Ryan Zinke to cancel the proposal. They also expressed ire at the deal Zinke struck with Florida Gov. Rick Scott, which exempted his state from the drilling plan, pointing to the lack of analysis or clear process underlying the decision.

Two governors from opposing parties echoed that sentiment in a separate publication.

“We’ve seen this administration seemingly lift the concerns of one governor and one state above others,” wrote Maryland Gov. Lawrence Joseph Hogan Jr. and North Carolina Gov. Roy Cooper in an op-ed. “In removing Florida from the five-year plan, Zinke and the Trump administration have admitted that offshore drilling poses great risks to coastal economies.”

On Sunday Zinke reiterated why he exempted Florida—due to its unique currents and geology as well as the unanimous opposition of Florida’s legislature to the proposal.

“In the case of Florida, the governor asked first for an immediate meeting and every member on both sides of the aisle contacted my office, wrote letters on it. So Florida is unique,” Zinke said. “Not every state has all the members against it and the geology is different, the currents are different and so looking at it, we’re going to take the process, go through it, meet with every governor personally.”

In a meeting with Zinke the day before, Cooper said the Interior secretary was receptive to his requests for an extended proposal comment period and for three additional public hearings near North Carolina’s coast.

“He said that he was listening, and he heard each and every one of us,” Cooper said. “I think generally he was pretty positive about what we said. He didn’t make any promises to us.”

Cooper said he told Zinke that drilling could cause unrecoverable damage to the state’s $3 billion tourism and fishing industries.

“We told him there is no 100% safe method to drill for oil and gas off the coast, particularly in our area off of North Carolina that sees nor’easters, that sees hurricanes,” Cooper said. “It would be catastrophic if there were to be an oil spill.”

If North Carolina does not get an exemption like Florida, Cooper said he has no problem taking the federal government to court.

“Thousands of North Carolinians and 30 coastal communities have voiced their opposition to drilling off North Carolina’s shores,” said Josh Stein, North Carolina’s attorney general, in a statement. “I will do everything I can, including taking legal action, if necessary, to fight on behalf of our people, economy, and natural resources.”

Also seeking an exemption from the proposal—albeit a partial one—is Alaska Sen. Lisa Murkowski.

“There are certain areas that we feel are not opportune for leasing and for development,” said Murkowski, who chairs the Senate committee that oversees the Interior. “Let’s focus on where the opportunity is good and there is interest and defined resource with limited obstacles.”

As Another Plant Closes, Spotlight Is on Economics of Nuclear

New Jersey’s Oyster Creek nuclear power plant will shut down in October 2018, more than a year earlier than planned, Exelon Corp. announced last week.

Nuclear power is the nation’s largest source of carbon-free electricity, generating about 20 percent of U.S. electric power and 60 percent of our zero-carbon electricity. The challenge to maintain a zero-carbon nuclear fleet to meet climate goals—by keeping existing plants like Oyster Creek—often is economics. This challenge has been particularly apparent in competitive markets, where nuclear plants are not guaranteed cost recovery through ratepayers.

When Exelon CEO and President Chris Crane announced in 2010 that the plant would retire in December 2019, he said the plant faced “a unique set of economic conditions and changing environmental regulations that make ending operations in 2019 the best option for the company, employees and shareholders.” He said the plant’s decreasing value was due to the cumulative effect of negative economic factors, such as low market prices and demand, as well as the plant’s need for continuing large capital expenditures.

Meanwhile, new construction has been plagued with cost overruns. In December 2017, the Georgia Public Service Commission voted unanimously to allow construction of two new nuclear reactors at the Plant Vogtle site to proceed. Plagued by delays and escalating costs, the Vogtle reactors represented the only large-scale nuclear construction underway in the United States since abandonment of two reactors last summer by South Carolina Electric & Gas and Santee Cooper. The Georgia commission reaffirmed its decision this week, despite a challenge by consumer group Georgia Watch over concern about the ultimate cost to ratepayers.

EIA Projects United States Will Become a Net Energy Exporter in 2022

The U.S. Energy Information Administration (EIA) on Tuesday released its annual long-term energy outlook, which projects U.S. production of natural gas will increase through 2050. Production of crude oil and petroleum products, meanwhile, will decrease.

It projects that the United States will become a net energy exporter by 2022, four years sooner than the date projected in last year’s report, reversing “a near 70-year trend when the U.S. became a net energy importer in 1953,” said EIA Administrator Linda Capuano.

“The United States energy system continues to undergo an incredible transformation,” she added. “This is most obvious when one considers that the [report] shows the United States becoming a net exporter of energy during the projection period in the Reference case and in most of the sensitivity cases as well—a very different set of expectations than we imagined even five or ten years ago.”

Renewable generation more than doubles between 2017 and 2050, in EIA projections, with an average annual growth rate of 2.8 percent. EIA projections show 80 gigawatts of new wind and solar photovoltaic capacity being added between 2018 and 2021, spurred by declining capital costs and the availability of tax credits.

Energy consumption grows about 0.4 percent per year on average in the Reference case from 2017 to 2050, which is less than the rate of expected population growth (0.6 percent per year), according to the report.

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

Trump Administration Issues Solar Import Tariff

The Nicholas Institute for Environmental Policy Solutions at Duke University

The Trump administration announced Monday that it will begin imposing a 30 percent tariff on solar cells and modules imported into the United States. The tariff will decline annually over a four-year period—reaching 15 percent in year four—and the first 2.5 gigawatts of imported solar cells will be exempt from the safeguard tariff in each of those four years.

The U.S. has the world’s fourth-largest solar capacity after China, Japan and Germany. The Office of the U.S. Trade Representative (USTR) said the tariff, which is opposed by most of the renewable energy industry, is necessary to prevent unfair practices by overseas manufacturers, mainly in Asia.

“From 2012 to 2016, the volume of solar generation capacity installed annually in the United States more than tripled, spurred on by artificially low-priced solar cells and modules from China,” the USTR said in a fact sheet announcing the Trump administration’s decision. “China’s industrial planning has included a focus on increasing Chinese capacity and production of solar cells and modules, using state incentives, subsidies, and tariffs to dominate the global supply chain.”

The tariff comes in response to petitions from two American manufacturers who complained for years that rising imports were eating into their sales. The International Trade Commission (ITC), in September, voted in favor of imposing a tariff. Monday’s announcement is similar to one recommended by the ITC late last year.

More than 80 percent of U.S. solar installations use imported panels, many of which come from China. However, China is not the only country that could be affected by the decision. Countries like South Korea now account for many of U.S. solar imports, which means they could face job losses and other hardships as a result of the tariffs.

Although imposing tariffs could create as many as 6,400 solar manufacturing positions, overall industry job losses could exceed those gains, an independent analysis by Bloomberg New Energy Finance performed for Utility Dive found. The Solar Energy Industries Association said 23,000 jobs would be lost in 2018, noting that most solar manufacturing in the U.S. involves making parts for cheaper imported panels.

Homeowner installation costs are expected to go up about 4 percent and utility-scale installation costs could go up about 10 percent, according to ClearView Energy Partners.

Before the tariff announcement, the U.S. Energy Information Administration estimated that total U.S. small-scale solar capacity was 16 gigawatts (GW) at the end of 2017 and projected it to grow to 19 GW by the end of 2018. It estimated that U.S. large-scale solar capacity totaled 27 GW at the end of 2017 and projected it to rise to 30 GW by the end of 2018.

Studies Examine Continuing Warming Trend

According to an analysis released last week by the National Aeronautics and Space Administration (NASA), 2017 was the second warmest year in 123 years of record-keeping. Using a different methodology, the National Oceanic and Atmospheric Administration (NOAA) had earlier put 2017 as the third warmest year. In either case, it was the 21st consecutive year in which the annual average temperature exceeded the 20th century average of 13.9 degrees Celsius (57 degrees Fahrenheit) and the third consecutive year that every state across the contiguous U.S. and Alaska experienced above-average annual temperatures. Notably, it was also the warmest year on record without the warming influence of El Niño, which contributed to the heat of the warmest year, 2016.

Gavin Schmidt, director of NASA’s Goddard Institute for Space Studies, said there’s little doubt about the source of the multi-decadal warming.

“Basically all of the warming in the last 60 years is attributable to human activities, and carbon dioxide emissions are the No. 1 component of that,” Schmidt said.

According to NOAA’s annual global climate report, worldwide, temperatures in 2017 were 0.8 degrees Celsius (1.5 degrees Fahrenheit) above the 20th century average, and ocean temperatures experienced their third-warmest year on record.

In Poll, Mayors Acknowledge Threat of Climate Change

Two-thirds of mayors said that cities should take action on climate change, even if doing so requires financial costs, according to an annual poll by Boston University.

“As the widening wealth gap, rising cost of housing and other economic challenges dominate the discourse in Washington, D.C. and across the country, the 2017 Menino Survey of Mayors provides invaluable insights into some of the most complex issues facing our nation’s mayors,” said Bob Annibale, Global Director of Citi Community Development and Inclusive Finance. “This year’s survey confirms yet again that our nation’s mayors are leading the way—prioritizing issues within and beyond their municipal borders, such as affordable housing and climate change, with innovative approaches that affect positive change for their constituents.”

Those polled cited a range of top climate and sustainability issues, including reducing the number of vehicles on the road (36 percent), upgrading city buildings and vehicles (31 percent), and sourcing greener energy (27 percent). Increasing residential density and updating building codes were also considered integral parts of any serious effort to address climate change, but when it came to the private sector, respondents pushed back on the need to institute new costly regulations.

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.

EIA: Coal-Fired Electricity Generation, Coal Production to Decrease in 2018

The Nicholas Institute for Environmental Policy Solutions at Duke University

A near record amount of coal-fired electricity is poised to go offline this year, according to recently released data from the U.S. Energy Information Administration (EIA). Set to retire in the United States this year are some 13 gigawatts (GW) at more than a dozen units—that’s an amount second only to the nearly 15 GW of coal power shut down in 2015. The falling fortunes of coal are also evident in the EIA’s projections for its production: a decline from 773 million short tons last year to 759 million in 2018 and 741 million in 2019. By contrast, natural gas production is expected to match a record set in 1970.

According to the EIA’s Short-Term Energy Outlook, coal’s share of the electricity generation mix, which only a decade ago was close to 50 percent, is projected to fall below 30 percent this year. The primary reason? Cheap natural gas, which this year could see the largest single-year increase since 2004 with the addition of roughly 20 GW of new natural gas-fired power generation. The EIA expects these trends to continue in 2019, when it projects that gas-fired plants will generate 34 percent of the country’s electricity and coal, just 28 percent.

Inexpensive and plentiful natural gas is not the only factor influencing coal plant closures. Other factors, according to the EIA, are plant age and size—most coal plants retired since 2008 have been older and smaller than their competition—changes in regional electricity use, federal or state policies that affect plant operation, state policies that require or encourage the use of certain fuels, and improving competitive generation technologies.

Other EIA forecasts for 2018: nuclear power will provide 20 percent of U.S. electricity, non-hydropower renewables, nearly 10 percent; and hydropower, slightly less than 7 percent. U.S. wind power generation capacity will rise to 96 GW, up from about 88 GW in 2017, while solar power generation capacity will hit 50 GW, up from 43 GW last year.

Chatterjee, LaFleur Discuss FERC Order

The U.S. Federal Energy Regulatory Commission’s (FERC) Neil Chatterjee said Tuesday that a new FERC investigation into grid resilience could take longer than the 90-day timeframe established by regulators last week when they unanimously rejected a Notice of Proposed Rulemaking from the Department of Energy (DOE) to change its rules to help coal and nuclear plants in the electricity markets FERC oversees.

FERC gave regional grid operators 60 days to detail how they could enhance grid resilience, after which other “interested entities” will have 30 days to reply—considerably faster than most major market reform discussions at FERC.

“One of the reasons I thought the record warranted the short-term [coal and nuclear payments] is … it’s going to take time to sort through this,” Chatterjee said during a panel discussion hosted by the Bipartisan Policy Center where he and FERC Commissioner Cheryl LaFleur discussed FERC’s Jan. 9 ruling as well as previewed the docket that the panel created to investigate regional transmission organizations (RTOs’) resilience practices. “I am under no illusion that this process will end in 90 days.”

Both Chatterjee and LaFleur were reluctant to prejudge the outcome of the proceeding or to speculate on the kind of responses that RTOs will give, but they stressed that they will continue to consider the country as a whole in making decisions to improve resiliency and reliability in the power sector. (subscription)

“We’ll see what comes forward in the docket,” said LaFleur, noting that it is possible that different proposals could come out of the different regions, which have unique challenges.

As Public Hearings Begin, Governors Voice Opposition to Offshore Drilling Plan

Ever since the Trump administration revealed a draft five-year plan that would expand oil drilling to previously protected areas in the Atlantic, Pacific and Arctic oceans, governors of nearly every state on those seaboards—including South Carolina, Rhode Island, Oregon, California, Washington, New York, New Jersey, Delaware and North Carolina—have expressed opposition. Under the proposed plan, more than 90 percent of the continental shelf would be available for drilling rights and only one out of 26 planning areas across the three oceans and the Gulf of Mexico would be entirely off limits to oil drilling.

U.S. Department of the Interior Secretary Ryan Zinke has been in talks with many of the coastal state governors since he agreed to exclude Florida from the plan days after its release. Governors and lawmakers have sent letters pointing to the importance of tourism as a reason to exclude their states from the plan—the tact taken by Florida’s governor.

“The long-term health of New York’s economy is inextricably linked to protecting our ocean resources,” New York Gov. Andrew Cuomo wrote in a letter to Zinke. “Much like Florida, New York’s ocean coast is unique and plays a vital role in our economy.”

Maine’s Gov. Paul LePage and other Gulf Coast governors who already have drilling off their shores are among those open to new exploration.

The proposal presently includes 47 lease sales from 2019 to 2024 in 25 of the nation’s 26 offshore planning areas. Among them: 19 sales off the coast of Alaska, 12 in the Gulf of Mexico, 9 in the Atlantic, and 7 in the Pacific.

This week, the public also began weighing in during the first of several meetings planned in the capitals of affected states.

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.

FERC Rejects Proposed Grid Resiliency Rule, Issues New Order

The Nicholas Institute for Environmental Policy Solutions at Duke University

The five members of the U.S. Federal Energy Regulatory Commission (FERC) on Monday unanimously rejected a Notice of Proposed Rulemaking from the Department of Energy (DOE) to change its rules to help coal and nuclear plants in the electricity markets FERC oversees (subscription). Instead it opened a new proceeding in which it calls on regional transmission organizations (RTOs) and independent system operators (ISOs) to submit information to FERC on certain resilience issues and concerns within 60 days (subscription).

Since Sept. 28, when DOE Secretary Rick Perry proposed mandating that plants capable of storing 90 days of fuel supplies at their sites get increased payments for providing “resiliency” services to the grid, a broad array of power sector stakeholders have raised concerns about the legality and vagueness of the proposed rulemaking and the short timetable to implement it.

In voting against the DOE proposal, FERC found that neither the proposal nor comments on it revealed a problem with existing market rules.

“While some commenters allege grid resilience or reliability issues due to potential retirements of particular resources, we find that these assertions do not demonstrate the unjustness or unreasonableness of the existing RTO/ISO tariffs,” FERC wrote. “In addition, the extensive comments submitted by the RTOs/ISOs do not point to any past or planned generator retirements that may be a threat to grid resilience.”

FERC went on to note that even the DOE’s own grid reliability study, cited to justify the DOE proposal, “concluded that changes in the generation mix, including the retirement of coal and nuclear generators, have not diminished the grid’s reliability or otherwise posed a significant and immediate threat to the resilience of the electric grid.”

FERC’s Jan. 8 order means electric grid operators must answer questions from the commission about how they define resilience, what they do to ensure it and how they evaluate threats to it.

Although FERC could issue a new order after receiving that information, The Washington Post suggests that the language in the current order would support the trend toward free competitive electricity markets.

One issue not raised in the debate, which centered on market concerns, was changes to the electric system to reduce emissions of carbon dioxide. Researchers at Resources for the Future projected significant emissions increases and negative effects on social welfare had the DOE Notice of Proposed Rulemaking gone forward.

Trump Administration Unveils Plan to Vastly Increase Oil Drilling Off U.S. Shores

The Trump administration revealed a draft plan that would greatly expand oil drilling to areas in the Atlantic, Pacific and Arctic oceans that were previously protected.

“This is a start on looking at American energy dominance,” said U.S. Department of the Interior Secretary Ryan Zinke, adding that the proposal would make the United States “the strongest energy superpower” (subscription).

Previous administrations had largely limited offshore oil and gas production to the Gulf of Mexico, but Zinke’s proposal would make more than 90 percent of the Outer Continental Shelf open for leasing. His proposal includes 47 lease sales from 2019 to 2024 in 25 of the nation’s 26 offshore planning areas. Among them: 19 sales off the coast of Alaska, 12 in the Gulf of Mexico, 9 in the Atlantic, and 7 in the Pacific (some off the coast of California).

“Today’s announcement lays out the options that are on the table and starts a lengthy and robust public comment period,” Zinke said (subscription). “Just like with mining, not all areas are appropriate for offshore drilling, and we will take that into consideration in the coming weeks.”

The Bureau of Ocean Energy Management, which would oversee the leasing process, will hold a 60-day public comment period on the plan.

Although embraced by oil and gas industry groups, the proposed plan is expected to face opposition from governors of many coastal states and many U.S. lawmakers.

On Tuesday, a group of 37 senators called the proposal “the height of irresponsibility” (subscription).

“This draft proposal is an ill-advised effort to circumvent public and scientific input, and we object to sacrificing public trust, community safety, and economic security for the interests of the oil industry,” the senators wrote in a letter to Zinke.

The proposal follows an April 2017 executive order by President Donald Trump requiring that the Interior Department reconsider former President Barack Obama’s five-year offshore drilling plan.

If finalized, the proposal would reverse Obama’s ban on drilling on the Atlantic coast and in the Arctic, but, in addition to Florida waters which Zinke this week closed to drilling, it would keep off-limits the waters near Alaska’s far-western Aleutian Islands, which were protected by former President George W. Bush.

People’s Hearings on Clean Power Plan Begin

Several “people’s hearings” planned by states to discuss the U.S. Environmental Protection Agency’s (EPA) repeal of the clean Power Plan took place in New York, Maryland and Delaware this week. Proposed to be repealed in October, the rule aimed to set state-by-state carbon reduction targets for power plants.

The hearings follow an announcement last month by the EPA that it will hold three more hearings on its proposal to repeal the Clean Power Plan—in California, Wyoming and Missouri—after criticism for not conducting a transparent review process and previously holding only one public hearing over two days in Charleston, West Virginia.

Transcripts and comments associated with the hearings will be sent to the EPA as part of its rulemaking—EPA is presently taking input on what should replace the rule. In an interview with Reuters, EPA Administrator Scott Pruitt listed replacement of the Clean Power Plan as one of his top 2018 priorities—alongside plans to greatly reduce EPA staff and rewrite the Waters of the United States rule.

“A proposed rule will come out this year and then a final rule will come out sometime this year,” Pruitt said of the Clean Power Plan’s replacement.

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.

Study Says Meeting Paris Agreement Goals Won’t Prevent Aridification

The Nicholas Institute for Environmental Policy Solutions at Duke University

A study published Monday in the journal Nature Climate Change suggests that more than a quarter of Earth’s land will become significantly drier even if the world manages to limit warming to the Paris Agreement goal of less than 2 degrees Celsius above pre-industrial levels. Limiting the temperature rise to the agreement’s more ambitious goal of 1.5 degrees Celsius could significantly reduce the amount of land affected.

“Our research predicts that aridification would emerge over about 20–30 percent of the world’s land surface by the time the global mean temperature change reaches 2 degrees C [Celsius],” said Manoj Joshi, study co-author from the University of East Anglia in the United Kingdom. “But two-thirds of the affected regions could avoid significant aridification if warming is limited to 1.5 degrees C.”

According to the study, the regions that would most benefit from keeping warming below 1.5 degrees Celsius are parts of South East Asia, Southern Europe, Southern Africa, Central America and Southern Australia.

The study authors used projections from 27 global climate models to identify the areas of the world where aridity will substantially change when compared to current year-to-year variations. With a temperature increase of 2 degrees Celsius, they found that between 24 percent and 32 percent of the Earth’s total land surface will become drier. At an increase of 1.5 degrees Celsius, only between eight percent and 10 percent of that surface becomes drier.

Aridification could dramatically increase the threat of widespread drought and wildfires. It is also a threat to agriculture, water quality and biodiversity, noted Chang-Eui Park, the study’s lead author from China’s Southern University for Sustainability and Technology.

Park likened the emergence of aridification to “a shift to continuous moderate drought conditions, on top of which future year-to-year variability can cause more severe drought. For instance, in such a scenario 15 percent of semi-arid regions would actually experience conditions similar to ‘arid’ climates today.”

Trump Administration Repeals Proposed Rules for Hydraulic Fracturing on Government Land

One day after a three-judge panel of the 10th U.S. Circuit Court of Appeals declined to reconsider it’s decision to overrule a lower court’s rejection of a proposed Obama-era rule regulating hydraulic fracturing on federal and Indian lands, the U.S. Department of the Interior’s Bureau of Land Management (BLM) rescinded the rule. Under the proposed rule, companies would have had to disclose the chemicals used in hydraulic fracturing, or fracking, whereby pressurized water is pumped underground to break open hydrocarbon deposits to increase well productivity.

The rule had been scheduled to go into effect in 2015, but it was never implemented due to court challenges by energy industry groups and several oil- and natural gas-producing states, which argued the rule was over-reaching and duplicative of state requirements, as well as by environmentalists, who pointed to a need to regulate potential risks to groundwater.

“This final rule is needed to prevent the unnecessarily burdensome and unjustified administrative requirements and compliance costs of the 2015 rule from encumbering oil and gas development on Federal and Indian lands,” BLM wrote in the 26-page final rule.

The move took effect immediately on December 29, skipping the 30-day waiting period often incorporated into rollbacks.

Vogtle Nuclear Project Gets Green Light

Georgia’s Public Service Commission has voted unanimously to allow construction of two nuclear reactors at Plant Vogtle to continue. Plagued by delays and escalating costs, the Vogtle reactors represent the only large-scale nuclear construction underway in the United States since abandonment of two reactors this summer by South Carolina Electric & Gas and Santee Cooper. This week, Dominion Power bought SCANA and assumed these failed South Carolina nuclear project costs.

“The decision to complete Vogtle 3 & 4 is important for Georgia’s energy future and the United States,” said Paul Bowers, chairman, president and CEO of Georgia Power, in a statement. “The Georgia Public Service Commission has shown leadership in making this complex and difficult decision and recognized that the Vogtle expansion is key to ensuring that our state has affordable and reliable energy today that will support economic growth now and for generations to come.”

Co-owned by Georgia Power, Oglethorpe Power, MEAG Power and Dalton Utilities, the reactors are presently scheduled to come online in 2021 (unit 3) and 2022 (unit 4).

The commission attached conditions to its approval of the Vogtle completion, including a lower return on equity for Georgia Power; more money returned to ratepayers; and the possibility of re-examining the project if Congress doesn’t extend a production tax credit for nuclear power past a 2021 expiration date.

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.