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.

The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

The U.S.-India climate agreement announced January 25 creates a new agreement between the second- and third-largest emitters of greenhouse gases in the world but does not have the strength of the U.S.-China climate deal reached last year. Rather than committing India to cap its emissions, the U.S.-India deal called for “enhancing bilateral climate change cooperation” in advance of the United Nations effort to reach an international agreement on emissions and finance in Paris in December.

Specifically, the deal calls for cooperation on reducing emissions of fluorinated gases and beefing up India’s promotion of clean energy investment. The two countries also renewed their commitment to the U.S.-India Joint Clean Energy Research and Development Center, extending by five years funding for research on advanced biofuels, solar energy, and building energy efficiency as well as launching new research on smart grid and grid storage technology.

“It’s my feeling that the agreement that has been concluded between the United States and China does not impose any pressure on us,” said Indian Prime Minister Narendra Modi, adding, “But there is pressure. When we think about the future generations and what kind of world we are going to give them, then there is pressure. Climate change itself is a huge pressure. Global warming is a huge pressure.”

The agreements have not bridged the gap in the two countries’ perspectives on UN climate talks: the United States wants major emitters to take legal responsibility for climate change action, but India argues that the United States and other developed countries have not followed through on their own pledges and should not demand that developing countries take on new emissions reductions responsibilities.

President Moves to Shut Artic National Wildlife Refuge to Oil Drilling

While proposing to open portions of the Atlantic Ocean to oil and gas extraction, an Obama administration plan would prohibit energy development on nearly 10 million acres off the Alaskan coast. The administration has also proposed setting aside more than 12 million acres in Alaska’s Artic National Wildlife Refuge as wilderness, squashing opportunities for oil exploration there.

Less than 40 percent of the refuge currently has the wilderness designation, the highest level of protection available for public lands. The president’s plan would block efforts to drill for oil on a 1.5-million-acre portion of the refuge thought to contain up to 10.3 billion barrels of petroleum.

In a press conference, Alaska Republican Sen. Lisa Murkowski said that President Obama has declared “war” on her state. “The fight is on and we are not backing down.”

In a White House blog post, John Podesta a counselor to the president and Mike Boots, leader of the White House Council on Environmental Quality, noted that the United States today is the world’s number-one producer of oil and natural gas and that the Coastal Plain of the Arctic Refuge “is too precious to put at risk” of an oil-related accident. “By designating the area as wilderness, Congress could preserve the Coastal Plain in perpetuity—ensuring that this wild, free, beautiful, and bountiful place remains in trust for Alaska Natives and for all Americans.”

Increasing Frequency of La Niñas Attributed to Climate Change

A new climate modeling study published in Nature Climate Change suggests that by century’s end human-caused climate change will double the frequency of La Niñas—weather patterns associated with a temperature drop in the central Pacific Ocean—resulting in floods, droughts, and other extreme weather events.

Extreme La Niña events might be experienced about every 13 years, rather than every 23 years, as they are now, but not like clockwork, according to lead study author Wenju Cai, a climate scientist at the Commonwealth Scientific and Industrial Research Organization in Aspendale, Australia. “We’re only saying that on average, we expect to get one every 13 years,” said Cai. “We cannot predict exactly when they will happen, but we suggest that on average, we are going to get more.”

The study finds that powerful La Niñas will immediately follow intense El Niños, causing weather patterns to alternate between wet and dry extremes.

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

The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

“No challenge — no challenge — poses a greater threat to future generations than climate change,” said President Obama in his 2014 State of the Union address.

“The best scientists in the world are all telling us that our activities are changing the climate,” he said, “and if we do not act forcefully, we’ll continue to see rising oceans, longer, hotter heat waves, dangerous droughts and floods, and massive disruptions that can trigger greater migration, conflict, and hunger around the globe. The Pentagon says that climate change poses immediate risks to our national security. We should act like it.”

To combat climate change, the president said the government had taken actions ranging from the way we produce energy to the way we use it. Although he did not mention his use of executive power to regulate carbon dioxide emissions from power plants and methane emissions from the oil and gas industry, he did highlight the landmark agreement with China to cut greenhouse gases. “In Beijing, we made an historic announcement — the United States will double the pace at which we cut carbon pollution, and China committed, for the first time, to limiting their emissions. And because the world’s two largest economies came together, other nations are now stepping up, and offering hope that, this year, the world will finally reach an agreement to protect the one planet we’ve got.”

Early in the speech, the president referenced the twin goals of reducing dependence on foreign oil and protecting the planet. “Today, America is number one in oil and gas,” he said. “America is number one in wind power. Every three weeks, we bring online as much solar power as we did in all of 2008.”

The president obliquely alluded to the Keystone pipeline, which would carry oil from Canadian tar sands to the United States, by noting the need to take a comprehensive look at infrastructure development.

In the GOP response to the SOTU, Iowa Sen. Joni Ernst admonished the president for stalling a decision on Keystone.

“President Obama has been delaying this bipartisan infrastructure project for years, even though many members of his party, unions, and a strong majority of Americans support it,” she said. “The president’s own State Department has said Keystone’s construction could support thousands of jobs and pump billions into our economy, and do it with minimal environmental impact.”

Less than 24 hours after Ernst’s remarks, the House of Representatives approved a bill to fast-track federal approval of natural gas pipelines despite a veto threat from the White House.

2014 Hottest Year on Record

Scientists at the National Aeronautics and Space Administration and the National Oceanic and Atmospheric Administration confirm that 2014 was the hottest year on record and the 18th consecutive year that annual average temperatures have exceeded the previous century’s average.

A few of the 21 scientists interviewed by the Washington Post about 2014’s average global surface temperature of 58.24 F (14.58 C) noted that warming has not kept pace with climate model projections, but most thought the record matches what we should expect as heat-trapping greenhouse gases increasingly accrue in the atmosphere.

“This is the latest in a series of warm years, in a series of warm decades,” said Gavin Schmidt, director of NASA’s Goddard Institute of Space Studies. “While the ranking of individual years can be affected by chaotic weather patterns, the long-term trends are attributable to drivers of climate change that right now are dominated by human emissions of greenhouse gases.”

The University of Illinois’ Don Wuebbles, a contributor to multiple reports from the International Panel on Climate Change, told a Forbes reporter, “We can safely say it’s probably the warmest year in 1,700 and 2,000 years.”

The most remarkable thing about the 2014 record, say climate experts, was that it occurred in a year without a strong El Niño, a large-scale weather pattern in which the Pacific Ocean pumps heat into the atmosphere.

States Get Help Meeting Clean Power Plan Targets

States are getting a $48 million boost to their efforts to meet emissions reductions targets for existing power plants under the Clean Power Plan. Bloomberg Philanthropies and the California Heising-Simons family announced the grants to “accelerate” a transition to cleaner energy.

“With the price of clean power falling, and the potential costs of inaction on climate change steadily rising, the work of modernizing America’s power grid is both more feasible and urgent than ever,” said former New York City mayor Michael Bloomberg. “But smart investments can reduce it while also strengthening local economies.”

Rather than going directly to states, the grants provided by the Clean Energy Initiative will support organizations that can help states with their energy planning, including the Natural Resources Defense Council and the Environmental Defense Fund. But the bulk of the money for technical assistance, including economic forecasting and legal analysis, will go to groups with a state or regional focus.

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

The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

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

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

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

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

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

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

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

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

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

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

Congress Prepare to Vote on Keystone XL Pipeline

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

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

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

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

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

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

The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

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

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

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

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

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

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

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

Emissions Reduction Pledges Underscore Importance of Social Cost of Carbon Estimates

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

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

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

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

2014—Hottest Year on Record?

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

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

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

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

The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

Editor’s Note: In observance of the Thanksgiving holiday, The Climate Post will not circulate next week. It will return on December 4.

The International Energy Agency (IEA) has released its World Energy Outlook (WEO) 2014 report, which for the first time provides energy trend projections through the year 2040. Among the key challenges in the next two and a half decades is, a 37 percent rise in global energy demand, driven mainly by emerging markets in Asia, Africa, the Middle East and Latin America. Asia will account for 60 percent of global growth in demand, and by early 2030s, China may surpass the U.S. as the world’s largest oil consumer.

“The short-term picture of a well-supplied oil market should not disguise the challenges that lie ahead as reliance grows on a relatively small number of producers,” according to the WEO report.

The IEA projects that global oil consumption will rise from 90 million barrels a day in 2013 to 104 million barrels a day in 2040, requiring a $900 billion investment in oil and gas development by the 2030s.

Overall use of coal is projected to decrease slowly in demand, while use of renewable energy from wind, solar and hydropower will grow. The IEA anticipates renewables will saturate one-third of global energy demand by 2040.

CO2 emissions are expected to grow by one-fifth by 2040, which puts the world’s temperature well on track to rise to 3.6 degrees Celsius by the end of this century, increasing the risk of droughts, rising sea levels, damaging storms and mudslides.

According to IEA projections, limiting global temperature rise to 2 degrees Celsius deemed by U.N. as the level necessary to avoid dangerous changes would require the world to ramp up low-carbon energy investments by four times their current levels—bringing annual global investment up to approximately $1 trillion.

On the domestic front, a majority of Americans support stricter regulations on carbon emissions, according to a new poll by Yale’s Project on Climate Communication. Further, two thirds of those polled (1,275 adults) support limits on carbon dioxide emissions even after being told such measures would raise power prices.

U.S. Pledges $3 Billion to UN’s Green Climate Fund

On the heels of its climate deal with China, the U.S. announced its intent to contribute $3 billion to the United Nation’s Green Climate Fund, which was established in 2013 to provide support to developing countries in reducing greenhouse gas emissions. The “game-changing pledge,” made by President Obama on the eve of the G-20 Summit in Brisbane, Australia, last week, makes the U.S. the fund’s largest contributor. The Obama administration has not specified whether its pledge will come from existing sources of funding or new appropriations from Congress—a strategy that could face stiff resistance from Republican lawmakers.

“The contribution by the U.S. will have a direct impact on mobilizing contributions from the other large economies,” said Hela Cheikhrouhou, executive director of the Green Climate Fund. “The other large economies—Japan, the U.K.—have been watching to see what the U.S. will do.”

It did not take long for Japan to follow suit with a $1.5 billion pledge to the fund. To date, the U.N. has received pledges from 13 countries totaling $7.5 billion—three-quarters of its $10 billion goal. Rich countries meet in Berlin to further discuss the 2014 goal where pledges reached $9.3 billion.

Panel Approves Rules for Unconventional Oil and Gas

After several years of heated debate, the North Carolina Mining and Energy Commission approved a detailed list of regulations to guide companies interested in securing unconventional oil and gas permits in the state. The rules were unanimously approved by commission members after review of approximately 217,000 public comments by 30,000 groups and individuals.

One of the rules revised by the commission in light of those comments calls for inclusion of leak detection systems and continuous monitoring of liners for open pits where fluids such as drilling waste are stored.

The approved regulations will be reviewed in December by the NC Rules Review Commission and in January by the state legislature. The commission has identified a number of areas for continued work, including authority to stop a company’s work.

“Just because we don’t have that stop-work authority doesn’t mean we can’t stop the work on site,” said Amy Pickle, vice chair of the commission and director of the State Policy Program at Duke University’s Nicholas Institute for Environmental Policy Solutions. “If something is going wrong, there’s injunctive authority, there is the ability to go to court to require them to stop working, there’s an ability through inspections and monitoring to revoke that permit.”

Across the country, unconventional oil and gas issues continue to be highly polarizing, as measures passed during mid-term elections revealed. A development ban was passed by the town of Denton, the Texas city where the earliest exploration began. In a compromise plan, limited development was approved by the U.S. Forest Service for the George Washington National Forest in Virginia. A 2011 plan draft would have allowed drilling in much of the forest’s 1.1 million acres.

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.