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The Center for Climate and Energy Solutions seeks to inform the design and implementation of federal policies that will significantly reduce greenhouse gas emissions. Drawing from its extensive peer-reviewed published works, in-house policy analyses, and tracking of current legislative proposals, the Center provides research, analysis, and recommendations to policymakers in Congress and the Executive Branch. Read More
 

Q&A: EPA Regulation of Greenhouse Gas Emissions from Existing Power Plants

Q&A: EPA Regulation of Greenhouse Gas Emissions from Existing Power Plants

Download this fact sheet (PDF)

On August 3, 2015, the U.S. Environmental Protection Agency (EPA) adopted Carbon Pollution Standards for Existing Power Plants, known as the Clean Power Plan.

Adopted pursuant to EPA’s authority under the Clean Air Act, the Clean Power Plan establishes unique emission rate goals and mass equivalents for each state. It is projected to reduce carbon emissions from the power sector 32 percent from 2005 levels by 2030. Individual state targets are based on national uniform “emission performance rate” standards (pounds of CO2 per MWh) and each state’s unique generation mix.

On February 9, 2016, the U.S. Supreme Court issued a stay of the Environmental Protection Agency’s (EPA’s) Clean Power Plan, freezing carbon pollution standards for existing power plants while the rule is under review at the U.S. Court of Appeals for the District of Columbia Circuit.

See more resources and maps at the C2ES Carbon Pollution Standards Resource Page.

Overview

Compliance Options

Impacts

Next Steps

Overview

Q: Why did EPA develop rules to regulate carbon dioxide?

Under the Supreme Court decision in Massachusetts v. EPA, greenhouse gases meet the definition of air pollutants under the Clean Air Act, meaning they must be regulated if they could be reasonably anticipated to endanger public health or welfare. EPA made this determination in 2009. In June 2013, President Obama directed EPA to work closely with states, power plant operators, and other stakeholders in developing carbon standards for existing power plants, and to finalize the standards by June 2015. EPA released its proposed rule in June 2014 and the final rule in August 2015.

Q: Why do we need to regulate power sector carbon emissions?

The power sector is the largest source of U.S. carbon emissions, which are contributing to global climate change.

Many businesses, cities and states are cutting emissions, increasing renewable energy, and improving energy efficiency. In addition, newly abundant natural gas has begun to displace coal (which emits twice as much carbon) in the U.S. electrical generation mix.  But in the absence of major new policies, U.S. emissions are projected to rise as the economy grows, and as natural gas prices rise. Stronger policies are needed to increase energy efficiency, thereby reducing electricity consumption, and to expand the use of low- and no-carbon energy sources. Under a business-as-usual forecast, fossil fuels are projected to provide 66 percent of the U.S. fuel mix in 2030 compared with 60 percent under the Clean Power Plan, with most of the reduction coming from higher-emitting coal plants. Therefore, under a business-as-usual scenario, carbon dioxide emissions from the power sector are expected to increase around 6.5 percent (from 2014 levels) to 2,177 million metric tons in 2030, while under the Clean Power Plan carbon dioxide emissions would fall more than 19 percent (from 2014 levels) to 1,644 million metric tons in 2030.

Figure 1: U.S. CO2 Emissions

Figure 2: Projected Electric Power Sector Carbon Dioxide Emissions under Business-as-Usual Scenario

Q: What is in EPA’s Clean Power Plan?

Typically, under the Clean Air Act, EPA sets standards and states implement them.  The Clean Power Plan:

  • Sets unique emission rates goals and mass equivalents for each state, reflecting the variation in their electricity generation mixes, to be met starting in 2022;
  • Provides states significant flexibility in choosing how to meet their targets;
  • Provides incentives for early deployment of renewables and efficiency measures benefiting low-income communities;
  • Provides tools to assist states choosing to implement market-based approaches; and
  • Contains a Federal Implementation Plan that EPA would use in states that do not accept adequate implementation plans.

EPA set interim and 2030 targets for each state based on uniform emission performance rates (application of BSER) and its unique generation mix.

Q: How was each state’s target calculated?

Uniform, national emission performance rates for affected power plants are based on the “best system of emission reduction” (BSER), using three “building blocks” or potential pathways applied regionally to reduce CO2 emissions:

  1. Make affected fossil fuel power plants more efficient;
  2. Increase generation from lower-emitting natural gas combined cycle plants; and
  3. Increase generation from new zero-emitting renewable power sources.

See a map of state targets for a more detailed explanation.

Q: What are the big differences between the proposed and final plans?

States will have more time to submit their implementation plans (they can get extensions to 2018) and two more years (until 2022) to begin phasing in pollution cuts. C2ES and others encouraged allowing states more time so they could take a longer view on planning and investment.

The final plan also proposes a voluntary Clean Energy Incentive Program (CEIP) to encourage early installation of renewable energy projects and energy efficiency programs for low-income communities before the 2022 compliance start date. EPA has invited comments on the CEIP and will address design and implementation details in a future action.

Market-based mechanisms are more explicitly encouraged in the final rule. The proposed federal implementation plan includes an option for states to join an interstate cap-and-trade program. It also outlines how states could participate in emissions credit trading without the creation of interstate compacts.

In calculating individual state targets, EPA had proposed taking into account each states’ energy efficiency potential, but it chose not to do so in the final rules. However, like the proposal, the final plan allows states to use energy efficiency programs for compliance.

EPA also changed its methodology for determining incremental renewable energy to better reflect regional technical potential, rather than state-level renewables policies, as in the proposal.

Unlike in the proposed plan, states with nuclear power plants under construction – Georgia, South Carolina, and Tennessee – will be able to count this generation toward compliance instead of having it factored into their targets.

The final rule also takes the interstate nature of the electric system into greater consideration. The proposal calculated state targets by applying building blocks to each state. The final rule uses the characteristics and potential of electric grid interconnections (Eastern, Western and Texas) to determine emission performance rates for units, which are then applied to each state’s unique generation mix to calculate a target.

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Compliance Options

Q: How can states reduce power sector carbon emissions?

States have wide latitude in designing their strategies to reduce emissions. In most cases, they will rely on a variety of measures. Major options include substituting natural gas for coal; improving energy efficiency; and increasing reliance on renewable energy.

States can implement the Clean Power Plan individually or in cooperation with other states. They also can employ market-based mechanisms, such as averaging or trading, to help power companies identify least-cost emission reductions.

Examples of steps to reduce carbon dioxide emissions in the power sector are illustrated in Figure 3 and Table 1.

Figure 3: Opportunities to reduce carbon dioxide emissions in the power sector

Table 1: Policy options to reduce power sector carbon dioxide emissions

PolicyDescriptionExamples
Power plant performance standardEach power plant must achieve a set emissions intensityCalifornia, New York, Washington
Renewable Portfolio StandardUtilities must deliver a set percentage of renewable electricityColorado, Hawaii, Kansas, Missouri, Nevada, Rhode Island, and others
Energy Efficiency Resource StandardUtilities must cut demand by a set amount by target yearsArizona, Connecticut, Maryland, Minnesota, Texas, and others
DecouplingReduce utility incentive to deliver more electricity by decoupling revenue and profitCalifornia, Idaho, Massachusetts, Michigan, Oregon, and others
Net MeteringEncourage residential solar by paying homeowners to put excess electricity back on gridArkansas, Colorado, Georgia, Louisiana, and others
Cap & TradeIssue a declining number of carbon allowances, which must be surrendered in proportion to each plant’s emissionsCalifornia, Regional Greenhouse Gas Initiative
Carbon TaxCharge a tax for emitting carbonBritish Columbia
Grid Operator Carbon FeeAdd a carbon price to grid operator decision over which power plants to runNone currently
Appliance Efficiency StandardsRequire new appliances sold to meet set electricity consumption standardsCalifornia, Florida, New Jersey, and others
Commercial & Residential Building CodesRequire new buildings to include electricity saving measuresCalifornia, Illinois, Maryland, Mississippi, and others

 

Q: How could states use market-based approaches to implement the plan?

Economists consider market-based approaches to be the most efficient way to reduce greenhouse gas emissions.

The Clean Power Plan encourages states to consider using market mechanisms, which could include a cap-and-trade program, a carbon tax, or tradable renewables or efficiency certificates.

EPA intends to set up and administer a program to track trading programs for states that choose to use them. In addition, the Federal Implementation Plan that EPA would employ in states without adequate plans includes market-based programs, which can be used by states as a model for their own plans.

Under EPA’s proposed new Clean Energy Incentive Program, states that act early to cut carbon pollution, either with renewables or energy efficiency, would be rewarded with emission reduction credits (ERCs), which they could use to meet their targets or sell to other emitters.

Q: How can states work together to implement the Clean Power Plan?

States have long collaborated to achieve energy and environmental goals. The successful trading program to reduce sulfur dioxide, which causes acid rain, is an example.

The plan is designed to facilitate interstate compliance strategies, including different forms of trading. The federal implementation plan outlines strategies to determine the equivalence of emission reduction credits in different states. It would also create a national platform that can be used to track the buying, selling, and trading of credits across state lines.

An example of states already working together is the Regional Greenhouse Gas Initiative in the Northeast. A multi-state approach could also be accomplished through another existing authority such as a Regional Transmission Organization (RTO) or Independent System Operator (ISO).

Q: Will states be able to use Canadian hydropower to comply?

Renewable energy from outside of the United States, including Canadian hydropower, can be used for compliance purposes, provided it is incremental and installed after 2012 and meets some other conditions. More than a dozen U.S. states already import a significant amount of Canadian hydropower. According to a C2ES report, importing hydropower from even a modestly sized new Canadian project (250 MW) could help a state bridge the gap between its current carbon emissions rate and its 2030 target.

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Impacts

Q: Will the Clean Power Plan affect the reliability of the electric grid?

In response to concerns raised by EPA’s proposed rule, the final plan includes a “reliability safety valve” temporarily relaxing emission standards on individual electric generating units under extraordinary circumstances where electric system reliability is concerned.

To mitigate reliability issues, states are required to address reliability in their compliance plans. Importantly, the plan gives states up to seven years before interim targets must be met, providing time for state regulators and reliability entities to work with utilities and other key stakeholders.

The plan is also expected to encourage energy efficiency, which helps lower demand growth and improve reliability.

Q: How much will implementing the plan cost?

EPA calculates that savings from increased energy efficiency will outweigh the costs of implementing the plan, reducing household electric bills by about $7 per month by 2030.  The agency estimates compliance costs of $5.1 billion to $8.4 billion and total benefits of $34 billion to $54 billion.

Q: How does the plan address nuclear power?

Nuclear provides nearly 20 percent of the nation’s power and is the largest source of carbon-free baseload electricity. Five reactors are now under construction in Tennessee, Georgia and South Carolina and are expected to be online by 2030.

Unlike the proposal, the final rule does not consider existing or new nuclear power for the purposes of setting state targets. Therefore, the five reactors under construction and any new units or upgrades can count toward compliance.

Q: How is natural gas treated in the plan?

Both the proposal and the final plan envision about a third of U.S. electricity coming from natural gas in 2030. However, under the final plan, less new natural gas generation capacity is anticipated.

Natural gas demand was expected to grow more quickly under the earlier compliance date called for in the proposed rule. Proposed incentives for early deployment of renewables may encourage more investment in renewable energy in the short term.

Q: What does this plan mean for coal?

Demand for coal in the U.S. has been decreasing for many years because of the availability of relatively less expensive natural gas to meet baseload power demands and because of other environmental and safety regulations. Even before the Clean Power Plan, very few new coal plants were expected to be constructed. According to EPA’s IPM modeling of the final rule, coal is expected to make up 27 to 28 percent of the electric generation mix in 2030. Under a business-as-usual scenario, coal is expected to deliver 36 percent of U.S. electricity in 2030.

Figure 4: Distribution of Fossil Fuel Power Plants across the Contiguous United States

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Next Steps

Q: What does the Supreme Court stay mean for the regulation?

The Supreme Court granted a stay in response to a legal challenge from some states, utilities and coal companies, who argued that EPA’s regulation was burdensome. Other states and utilities are participating in the legal challenge by supporting EPA. The court’s decision does not address the merits of the challenge but puts implementation of the rule on hold while a lower court decides the merits of the challenge. There’s no telling how it will play out, but the high court is likely to wind up deciding the case.

Whether or not the Court ultimately upholds this particular rule, the legal requirement to cut carbon emissions will remain, and states need to figure out the most cost-effective ways to do that.? It’s important to note that a number of states challenging the rule in court are simultaneously working on their implementation plans. Some states may suspend their planning efforts but others will press on with preparations. If the plan is ultimately upheld, the implementation timeline may have to be extended.

The Environmental Protection Agency’s authority to regulate greenhouse gases is settled. The issue is whether EPA’s particular approach is appropriate.

Regardless of the ultimate legal outcome, the broader trends at play favor continued momentum toward stronger climate action.

Q: What is the timetable for implementing the plan?

Before the stay was issued, states had until September 2016 to either submit a plan or request an extension. All final plans were due by September 2018. EPA would approve or disapprove a final plan within a year.

The Clean Energy Incentive Program was to begin on January 1, 2020. States that had expressed their interest in participating in this program in their final plans were eligible. This program was to run throughout 2020 and 2021.

On January 1, 2022, states were to begin complying by meeting their interim targets. On January 30, 2030, states must meet their final CO2 reduction goals.

During the period of the stay, no deadlines are binding, and they may be extended when the legal challenge is resolved.

Q: What happens to states that fail to comply?

States were given up to three years to write implementation plans, applying their knowledge of their utilities and the programs that have worked in the past.

Under the Clean Air Act, any state that would fail to submit a plan or get EPA approval for its plan would be subject to a federal implementation plan. The current proposals for the federal implementation plan would use flexible, market-based solutions for compliance.

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Clean power progress will continue despite Supreme Court ruling

The Supreme Court’s stay of the Clean Power Plan may slow, but certainly does not stop, progress toward a cleaner power system in the United States.

There’s no telling how the legal challenges to the Clean Power Plan, which were always expected, will ultimately play out. But here are a few important points to keep in mind:

The Environmental Protection Agency’s authority to regulate greenhouse gases is settled. The Supreme Court ruled in 2007 that EPA has authority under the Clean Air Act to regulate greenhouse gases. It affirmed that ruling 8-0 in 2011 when it rejected nuisance suits against greenhouse gas emitters, ruling that “the Clean Air Act and the EPA actions it authorizes displace any federal common law right to seek abatement of carbon-dioxide emissions from fossil-fuel fired power plants.”  

What’s at issue is whether the particular way EPA has chosen to exercise that authority in regulating carbon emissions from power plants is appropriate.  Because there was little precedent to work from, EPA had to chart the direction, and did so with a very careful eye to the legal defensibility of its approach. 

The Clean Power Plan has already generated tremendous learning about the practicalities of decarbonizing our power sector. In crafting the rule, EPA engaged extensively with states, utilities and others (and was widely praised for doing so). The adoption of the rule last summer has triggered similar state-level conversations across the country. Even states that are suing to overturn the rule have been actively considering how to implement it.

As a result, we all know a lot more today about the challenges of cutting carbon and the smartest strategies for doing it cost-effectively. That knowledge will be of tremendous value going forward, with or without the Clean Power Plan.

Bob Perciasepe's statement on SCOTUS stay of the Clean Power Plan

Statement of Bob Perciasepe
President, Center for Climate and Energy Solutions

 
February 9, 2016

Contact: Marty Niland, nilandm@c2es.org, (cell) 410-963-8974
 
The Supreme Court has made clear in previous rulings that EPA has the authority to regulate greenhouse gases.  Whether or not the Court ultimately upholds this particular rule, the need to cut carbon emissions will remain, and states need to figure out the most cost-effective ways to do that.  It’s in everyone’s interest that states keep at it, because whether it’s the Clean Power Plan or some other policy, they’ll need smart strategies to get the job done.
 
The country has made substantial progress reducing emissions and ramping up clean energy technologies.  Much of that progress has come from business, state and city leadership and initiative. There’s no reason to halt progress and innovation as we wait for these legal challenges to work through the courts.  C2ES will continue working with businesses, states and cities on market-based approaches to curbing emissions while keeping our power supplies reliable and affordable.

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About C2ES: The Center for Climate and Energy Solutions (C2ES) is an independent, nonprofit, nonpartisan organization promoting strong policy and action to address our energy and climate challenges. Learn more at www.c2es.org.

 

Distribution of Allowances under the Clean Power Plan

Distribution of Allowances under the Clean Power Plan

February 2016

Download the Fact Sheet (PDF)

In August 2015, the U.S. Environmental Protection Agency (EPA) finalized the Clean Power Plan for existing power plants. Under the rule, states can implement a mass-based or rate-based compliance plan to reduce greenhouse gas emissions from the power sector. States choosing a mass-based approach must also decide how to allocate emission allowances. This fact sheet provides an overview of how allowances could be distributed under a mass-based approach and the policy objectives achieved by their distribution.

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Energy Efficiency under the Clean Power Plan

Energy Efficiency under the Clean Power Plan

February 2016

Download the Fact Sheet (PDF)

Energy efficiency programs are in wide use, whether administered by state governments, city governments, or utilities. Because energy efficiency is often a low-cost means for reducing power sector emissions, the U.S. Environmental Protection Agency (EPA) expects it will be broadly used to comply with the Clean Power Plan, which sets greenhouse gas standards for existing power plants. This fact sheet compares the treatment of energy efficiency under two types of Clean Power Plan compliance approaches: rate-based
or mass-based emission standards.

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Market Oversight Under the Clean Power Plan

Market Oversight under the Clean Power Plan

February 2016

Download the Fact Sheet (PDF)

Carbon markets, like other commodities markets, require provisions to ensure that the market functions effectively and is not manipulated by some participants. Regulators conduct oversight to ensure that buyers can procure carbon credits when needed at a price that reflects the cost of reducing emissions and buyers’ risk tolerance. By making sure that buyers only pay a fair and transparent price, regulators help protect consumers from overpaying for cleaner electricity. This fact sheet investigates the options and implications
of potential market oversight provisions that might be useful as states consider implementing the Clean Power Plan.

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Tracking Systems in the Clean Power Plan

Tracking Systems in the Clean Power Plan

February 2016

Download the Fact Sheet (PDF)

 

Tracking systems provide the foundation for a smoothly operating trading market. They are used by market participants to track the use, trading, banking, and retirement of tradable assets. In trading programs under the Clean Power Plan, tracking systems will be used to track emission reduction credits (ERCs) in rate-based programs and allowances in mass-based programs.

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Reducing methane emissions from the oil and gas sector

Federal agencies are pursuing regulatory and voluntary steps to reduce methane emissions from the oil and natural gas production system, the largest manmade source of this potent greenhouse gas.

On January 14, 2015, the Environmental Protection Agency (EPA) announced a goal to cut methane emissions from the oil and gas sector by 40–45 percent from 2012 levels by 2025.

As part of achieving this goal, it released proposed regulations on August 18, 2015, for new and modified sources of methane emissions from the oil and natural gas sector. These regulations will be finalized by summer 2016.

Separately, the Department of the Interior (DOI) has proposed regulations to be finalized in 2016 to reduce methane emissions from certain wells.

EPA also plans to work collaboratively with industry and states, including expanding its voluntary Natural Gas Star program, to reduce methane from existing oil and gas operations.

Steps to reduce methane from other sources, such as landfills and coal mines, are also part of President Obama’s Climate Action Plan.

What is methane?

Methane, or CH4, is the main component of natural gas. When combusted as fuel, natural gas produces half as much carbon dioxide emissions as coal, and one-third less than oil (per unit of energy produced). However, natural gas that is released into the atmosphere without being combusted is a potent greenhouse gas.

Why is it important to reduce methane emissions?

Methane is the second biggest driver of climate change. It is much more potent than carbon dioxide (CO2) at increasing the atmosphere’s heat-trapping ability, but it remains in the atmosphere a much shorter time (a little more than a decade compared with hundreds of years for CO2).

Averaged over a 100-year time frame, the warming potential of methane is about 21 times stronger than that of CO2. However, in a 20-year time frame, it is 72 times more potent. (The most recent report by the Intergovernmental Panel on Climate Change raises estimates of the global warming potential of methane to 34 times stronger than CO2 for the 100-year time frame, and 86 times stronger for the 20-year time frame. However, the earlier estimates are still used to maintain comparability among U.S. greenhouse gas inventory reports.)

Because methane is potent and short-lived, reducing methane emissions can have a more immediate benefit, and is especially important at a time of growing U.S. oil and natural gas production.

What are the primary sources of methane emissions in the United States?

Natural gas and petroleum systems are the largest emitters of methane in the U.S., according to EPA estimates. These emissions come from intentional and unintentional releases.

Agriculture, solid waste landfills, and coal mines are also major sources and are addressed by other EPA programs.

Figure 1: 2013 U.S. Methane Emissions, By Source

In 2013, U.S. methane emissions totaled 636 million metric tons of carbon dioxide equivalent.

Source: U.S. Environmental Protection Agency, “Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2013” (Washington, DC: U.S. Environmental Protection Agency, 2015), http://www.epa.gov/climatechange/ghgemissions/usinventoryreport.html.

How much methane is released in oil and natural gas production and how will EPA improve the accuracy of measurements?

Methane is released unintentionally and intentionally from oil and gas systems. According to EPA, natural gas and petroleum systems were responsible for 29 percent of methane emissions in 2012. The rate of methane emissions from the sector has decreased in recent years, even as natural gas production has surged.

However, independent studies estimate a wide range of leak rates from natural gas production, from 0.71 to 7.9 percent. More comprehensive studies are needed for accurate results.

EPA has committed to examining options for applying remote sensing and other technologies to improve methane emissions data accuracy and transparency, and strengthening reporting requirements for methane in its Greenhouse Gas Reporting Program.

Why is methane intentionally released?

In the production process, small amounts of methane can leak unintentionally. In addition, methane may be intentionally released or vented to the atmosphere for safety reasons at the wellhead or to reduce pressure from equipment or pipelines.

How does EPA propose to address methane emissions from new oil and natural gas wells?

EPA proposed a rule in August 2015 under Section 111(b) of the Clean Air Act. It would require operators of new oil and gas wells to find and repair leaks, capture natural gas from the completion of hydraulically fractured oil wells, limit emissions from new and modified pneumatic pumps, and limit emissions from several types of equipment used at natural gas transmission compressor stations, including compressors and pneumatic controllers. EPA estimates that this proposal would prevent the emission of 340,000 to 400,000 short tons of methane in 2025, which is the equivalent of 7.7 million to 9 million metric tons of carbon dioxide. A final rule is expected in 2016.

EPA already regulates Volatile Organic Compounds (VOCs, which are ozone-forming pollutants) from new oil and gas production sources, which has the side benefit of also reducing methane.

In addition, on January 22, 2016, the Department of the Interior proposed a Methane Waste and Reduction Rule to reduce methane emissions from all wells on lands managed by the Bureau of Land Management and Indian lands. The proposal from DOI will update rules and require oil and gas producers to reduce methane emissions from operations. It proposes the first-ever limits for flaring of natural gas as well as increased disclosure requirements. The proposal would prohibit venting except in specified circumstances, require pre-drill planning for leak reduction, and increased use of leak-detection technology

What entities will be covered by the regulations?

The proposed rule would cover new and modified oil and gas production sources, and natural gas processing and transmission sources. Specifically, EPA notes it will look to reduce emissions from five specific sources:

  • oil well completions
  • pneumatic pumps and leaks from well sites
  • gathering and boosting stations
  • compressor stations.

In developing new standards, EPA says it will focus on in-use technologies, current industry practices, emerging innovations and streamlined and flexible regulatory approaches to ensure that emissions reductions can be achieved as oil and gas production and operations continue to grow.

The DOI proposal would affect all oil and gas wells on federally owned onshore lands, amounting to 100,000 wells responsible for 5 percent of US oil supply and 11 percent of gas supply.

How would the EPA’s proposed methane actions complement existing regulation?

The actions would work with EPA’s new source performance standards (NSPS) and hazardous air pollutant regulations, finalized in 2012. They already apply to oil and gas production and gas processing, transmission, and storage facilities, and the rule proposed in August 2015 would apply them directly to methane as well.

While primarily aimed at reducing smog-forming and toxic air pollutants, known as volatile organic compounds (VOCs), the NSPS rules also had the indirect effect of reducing methane emissions. They include the requirement to use "green completions" at natural gas wells to limit emissions from hydraulic fracturing, a rapidly growing means of drilling and production. In a “green completion,” special equipment separates hydrocarbons from the used hydraulic fracturing fluid, or flowback, that comes back up from the well as it is being prepared for production. This step allows for the collection (and sale or use) of methane that may be mixed with the flowback and would otherwise be released to the atmosphere. Because the same technologies in place to reduce VOC emissions would also be used to reduce methane, no additional steps would be necessary to reduce methane.

In its January 2015 announcement, EPA said it will develop new guidelines to assist states in reducing VOCs from existing oil and gas systems in areas that do not meet the ozone health standard and in states in the Ozone Transport Region. Like the earlier NSPS, these guidelines will also reduce methane emissions.

The proposed regulation of August 2015 will extend emission reductions further downstream from the 2012 rules and cover certain equipment used in the natural gas transmission sector in addition to equipment covered by regulation in 2012.

How does EPA propose to address methane emissions from existing oil and gas wells?

On March 10, 2016, President Obama and Canadian Prime Minister Justin Trudeau issued a joint statement including several actions to reduce methane emissions from existing oil and gas wells. EPA announced it would immediately begin developing regulations for existing oil and gas wells and would, in April 2016, begin the formal process to require companies operating methane emissions sources to provide information to assist in development of standards to decrease those emissions.

Canada intends to publish an initial phase of proposed regulations of methane from new and existing oil and gas wells by early 2017.

The countries committed to work collaboratively to improve methane data collection and emissions quantification, and transparency of emissions reporting in North America, and share knowledge of cost-effective methane reduction technologies and practices. They also agreed to jointly endorse the World Bank’s Zero Routine Flaring by 2030 Initiative, and report annually on progress.  

What other non-regulatory steps has the administration announced it will take?

The president will request $15 million for the Department of Energy (DOE) to develop and demonstrate more cost-effective technologies to detect and reduce losses from natural gas transmission and distribution systems, including leak repairs, and developing next-generation compressors. The president’s budget will also propose $10 million to launch a program at DOE to enhance the quantification of emissions from natural gas infrastructure for inclusion in the national Greenhouse Gas Inventory in coordination with EPA. Congress must appropriate funding for these programs for them to be implemented. DOE will also be responsible for other recommendations to reduce emissions from the natural gas system.

Bob Perciasepe's statement on C2ES ranking among top think tanks

Statement of Bob Perciasepe
President, Center for Climate and Energy Solutions

 
January 28, 2016
 
The Center for Climate and Energy Solutions (C2ES) is honored to be recognized once again as one of the world’s leading think tanks.
 
We learned today that we ranked fifth among environment policy think tanks in the 2015 University of Pennsylvania’s Global Go To Think Tank Index, based on a worldwide survey of more than 4,600 scholars, public and private donors, policymakers, and journalists from 143 countries.
 
C2ES’s consistently high ranking is a tribute to our unique ability to bring together diverse stakeholders – business leaders, city and state officials, federal policymakers, and international climate negotiators – to achieve practical, commonsense solutions to our climate and energy challenges.
 
I congratulate and thank our outstanding staff, partners, and supporters who have helped C2ES achieve and maintain our success through the years.

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Contact Laura Rehrmann at rehrmannl@c2es.org

About C2ES: The Center for Climate and Energy Solutions (C2ES) is an independent, nonprofit, nonpartisan organization promoting strong policy and action to address the challenges of energy and climate change. Learn more at www.c2es.org.

Rate-Based Compliance Under the Clean Power Plan

Rate-Based Compliance Under the Clean Power Plan

January 2016

Download the Fact Sheet (PDF)

The Clean Power Plan gives states the option to comply via either a rate-based or a mass-based approach. Ten states currently operate mass-based greenhouse gas reduction programs, and many more participate in mass-based programs to reduce other pollutants (e.g., sulfur dioxide) that are administered by the U.S. Environmental Protection Agency.
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