U.S. States & Regions
States and regions across the country are adopting climate policies, including the development of regional greenhouse gas reduction markets, the creation of state and local climate action and adaptation plans, and increasing renewable energy generation. Read More
On November 10, 2010, the Environmental Protection Agency (EPA) released guidance to be used in implementing “best available control technology” (BACT) requirements for greenhouse gas (GHG) emissions from major new or modified stationary sources of air pollution. Under the Clean Air Act (the Act), major new sources or major modifications to existing sources must employ technologies aimed at limiting emissions from these sources.
Under the Act, the BACT requirements for a given facility are to be established in a way that addresses the specific conditions of the facility and reflect the maximum degree of emission reduction that has been demonstrated through available methods, systems, and techniques, while accounting for the economic, energy and environmental considerations of the facility. In most states, the state environmental agency, rather than US EPA, will be issuing the permit to the facility.
The use of BACT to limit emissions of regulated pollutants from facilities has been part of the Clean Air Act for decades. Its first application to GHG emissions occurred in February 2010, when Calpine Corporation voluntarily agreed to an air permit that included a BACT determination for GHGs at a new power plant in California. The approved power plant included a slightly more efficient generation unit than had been initially proposed.
The new EPA guidance itself is technical in nature. Most importantly, under the guidance, covered facilities will generally be required to use the most energy efficient technologies available – much as was the case with the Calpine facility – rather than be required to install particular pollution control technologies. Among other things, carbon capture and sequestration technology will not be considered BACT except in extremely rare circumstances, such as when a facility is located next to an operating oil field whose operator wants to purchase carbon dioxide for enhanced oil recovery. Nor will the guidance require that specific types of fuels be used. In particular it does not require that proposed coal burning power plants switch to natural gas. The guidance also includes particular guidance for biomass facilities, stating that biomass itself could be considered BACT. EPA has indicated that it intends possibly to pursue additional rulemaking next year that may eliminate biomass burning facilities altogether from this permitting process. Overall, the BACT guidance maintains the same steps for individual BACT determination for GHGs that have long been used for BACT determination for traditional air pollutants.
In an earlier rulemaking, EPA established the threshold limits for which major new or modified sources would be required to meet BACT requirements. In its “tailoring” rule, EPA specified that beginning January 2, 2011, only sources that were already subject to BACT for “criteria” air pollutants (such as sulfur dioxide and nitrogen oxides) and had emissions of GHGs that exceeded 75,000 tons per year would have to meet BACT for GHGs. In July 2011, these requirements will be extended to apply also to any new source with GHG emissions above 100,000 tons per year and any modified source that increases GHG emissions by more than 75,000 tons per year.
More information from C2ES:
Throughout this year I have posted a number of blogs on the record-breaking extreme weather events of recent years, particularly 2010. Events ranged from unprecedented blizzards on the U.S. East Coast to the cataclysmic Russian heat wave and flooding in Pakistan. The key message I’ve tried to communicate is that, rather than debating whether these particular events are being caused by climate change – an interesting academic question that is unanswerable on a practical level – we should learn from these events about our individual and societal vulnerabilities and the real costs of climate change.
In an op-ed in The New York Times, Jack Hedin, a Minnesota farmer, offers an excellent example of the type of practical learning I’m talking about:
“The past four years of heavy rains and flash flooding here in southern Minnesota have left me worried about the future of agriculture in America’s grain belt. For some time computer models of climate change have been predicting just these kinds of weather patterns, but seeing them unfold on our farm has been harrowing nonetheless.”
Mr. Hedin’s family has farmed the soils of southern Minnesota since the late 19th century. Today he runs a small farm in Rushville, where an onslaught of extreme weather events over several years forced him to retreat to higher ground. This is an example of forced adaptation where abandonment was the best choice. But even in the new location, his farm lost $100,000 worth of crops to excessive soil moisture this summer.
Notice that Hedin doesn’t waste time worrying about whether particular weather events were caused by human-induced climate change:
“The weather in our area has become demonstrably more hostile to agriculture, and all signs are that this trend will continue. Minnesota’s state climatologist, Jim Zandlo, has concluded that no fewer than three “thousand-year rains” have occurred in the past seven years in our part of the state. And a University of Minnesota meteorologist, Mark Seeley, has found that summer storms in the region over the past two decades have been more intense and more geographically focused than at any time on record.”
Climate scientists know the climate is changing, that many mid-latitude locations are becoming wetter as a result (see figure below), and that we can expect that trend to continue. What does it matter whether a particular storm on a particular day in a particular year was caused by human intervention with the climate system? After all, it isn’t one particular event that has Mr. Hedin worried about the future of farming in America’s grain belt; it’s the preponderance of evidence that the climate is already shifting and the common sense realization that farming is getting harder because of that shift.
Please read Jack Hedin’s op-ed in The New York Times. He has the right idea about learning from extreme weather events.
Jay Gulledge is Senior Scientist and Director of the Science and Impacts Program
On November 9, Governor David Paterson announced New York State’s Climate Action Plan. The plan calls for an 80 percent reduction in greenhouse gas emissions below 1990 levels by 2050. This includes a required 40 percent emission reduction by 2030 to ensure reductions are on track. Completed after a 10-month study, it will require a doubling of renewable energy sources by 2030 and stricter construction codes to foster greater energy efficiency. Coinciding with these environmental and energy policies, the plan estimates 25 to 30 percent growth in state gross domestic product through 2030.
The announcement marks the start of a public comment period which lasts for 90 days. The plan is the result of Gov. Paterson’s 2009 Executive Order 24 which formally established the emissions reduction goal and the Climate Action Council (CAC). The CAC is scheduled to release a macroeconomic analysis of the plan in 2011.
On November 2, the New Mexico Environmental Improvement Board enabled the state’s participation in the Western Climate Initiative by approving a plan to establish a state-level greenhouse gas cap-and-trade program. The state program will begin in 2012 and will affect 63 industrial emission sources, including electric generators. These sources will have to reduce emissions two percent annually until 2020 or obtain – from either other market participants or the program administrator – a number of allowances (rights to emit) sufficient to cover their emissions. A number of mechanisms are included within the program plan to keep costs down for industry and consumers while “maintaining the environmental integrity of the program.” In order to protect the state’s industries, the program will not be implemented unless there are at least 100 million tons of emissions within the emissions trading bloc, outside of New Mexico (166 million tons are covered within California’s cap-and-trade program announced on October 29). Opponents have stated they will appeal the Board’s decision and governor-elect Susana Martinez has said she will seek to put a moratorium on the program.
Statement on EPA’s issuance of guidance for Clean Air Act permitting for greenhouse gases.
Statement of Eileen Claussen
President, Pew Center on Global Climate Change
November 10, 2010
Today's announcement demonstrates that EPA can use the Clean Air Act in a sensible way to improve our nation's energy efficiency and to reduce greenhouse gas emissions. The guidance goes a long way to making sure that large new industrial facilities employ state of the art technologies that will deliver important long term economic and environmental benefits.
Pew Center Contact: Tom Steinfeldt, 703-516-4146
For many of us in the climate world, these days feel a bit like being in the movie The Day After, where nuclear winter had descended and John Lithgow was on the HAM radio calling out, “…Is there anybody out there? Anybody at all…?”
OK. So it’s not quite that bad. But as we all know, Congress has been reshaped, and some long-time supporters of climate action (and coal) such as Rick Boucher (D-VA) are out, while others who ran ads literally shooting a rifle at a cap-and-trade bill, are in. And the number of actual climate deniers walking the halls of Congress has also increased.
So with the picture seemingly so bleak, and the chances of comprehensive climate legislation highly unlikely in at least the next couple of years, it would be natural for many in the corporate community to relax and think that they no longer have to think about climate change.
I think this would be dead wrong. And lest you wonder about my grasp on reality, let me explain why.
First, let’s look to California. Voters forcefully rejected Proposition 23, a measure that was a full-frontal assault on the nation’s most aggressive climate bill. They also rejected a gubernatorial candidate who had promised to postpone AB32 for at least a year, and instead elected a governor who campaigned on aggressively implementing the same law.
California is the world’s 8th largest economy and typically leads the nation in environmental protection. The fact that it will soon be implementing a cap-and-trade system and other aggressive measures to reduce GHGs should be an indication that the issue is not going to quietly disappear into the night. It is also remarkable that much of the financial support for the “No on Prop 23” campaign came from the venture capital and tech industries, which understand the market opportunities that clean energy and energy efficiency provide.
And while the political landscape may have changed this week, the businesses' case for taking climate action has not. Leading companies should continue to keep climate and sustainability as an element of their core corporate strategies, and in my conversations over the past few weeks, they are. Regardless of whether federal climate legislation is adopted, “climate change” is a proxy for a number of critical operational issues such as energy, water, waste, and supply chain efficiency. Companies that have a comprehensive plan to reduce their impacts in these areas realize not only bottom-line benefits, but reputational benefits as well.
And finally, let’s not forget the climate science. The reality is that regardless of the state of policy, the climate continues to change, impacts are already being felt in our own backyards, and by not acting we continue to load the dice in favor of deeper floods, longer droughts, and bigger wildfires. While politicians move at one pace, nature does not react to polls or get voted out of office. And as one of my favorite cartoons of the last year points out, even if this were all just an elaborate hoax, the biggest risk of investing in clean energy, energy efficiency, water and waste management is that we would have created a healthier, safer world all for “nothing.”
Tim Juliani is Director of Corporate Engagement
On October 29, the California Air Resources Board (CARB) released the design of its greenhouse gas (GHG) cap-and-trade program. Beginning in 2012 there will be an overall limit, or cap, on 85% of the state’s GHG emissions. Emitters such as power companies and gasoline refineries will be required to hold enough allowances (rights to emit) to match their emissions. They can comply by reducing their emissions or purchasing tradable allowances from other emitters or at state-run auctions. Companies that reduce their emissions below the allowances they hold have the opportunity to sell unused allowances. Striving to minimize negative economic impacts, CARB will give away a significant number of allowances to industries facing serious competition from states without such requirements. The program will expand to cover natural gas companies and producers of liquefied natural gas and transportation fuels in 2015.
October 29 marked the beginning of a public comment period for the program leading up to a public hearing in Sacramento, California on December 16, at which the Board will make a final decision on whether to adopt the program.
Last Thursday, the California Air Resources Board (CARB) published details on the proposed greenhouse gas trading program to be implemented under state law AB 32. AB 32, as our blog readers know, is under threat from Proposition 23 – which would forestall (perhaps indefinitely) meaningful action to reduce greenhouse gases in California. The analyses done by CARB in association with the development of the proposed program bolster the case for rejecting Prop 23.
These CARB analyses show that the trading program under AB 32 will “shift investment and growth within the overall economy toward those sectors driven by the production of cleaner and more-efficient technologies.” The importance of this targeted growth should not be understated – by moving toward energy technologies that are both home-grown and energy efficient, we reduce our economic exposure to the price volatility of global energy markets. Since the world is using more and more of what are ultimately finite quantities of fossil energy, protecting ourselves by transitioning the economy toward energy systems that are not subject to global supply and demand imbalances is important to protecting our future economic growth.
While transitioning to new and different systems for energy production and use will necessarily result in some temporary economic dislocation, the market mechanisms included in CARB’s regulatory program minimize these impacts. Taken directly from the CARB economic analysis appendix: “Overall, staff finds no significant adverse impacts on California business or consumers as a whole as a result of the proposed regulation.”
With climate change legislation stalled on Capitol Hill in Washington, D.C., for the foreseeable future, maintaining the critical environmental legislation of AB 32 is extremely important for advancing the nation’s climate policy. Even absent action by other states, California is the world’s 8th largest economy and a significant contributor to global greenhouse gas emissions. Action taken through policy in California is a huge step forward in addressing the global climate crisis.
Much of the rest of the world is waiting for the United States to take a leadership role on the issue of global climate change. With political gridlock in D.C., the best chance for the nation to make significant progress on this issue starts in California. AB 32 is the start of California’s transition to a 21st century economy of clean, green, homegrown energy – and represents an opportunity for the state, and the nation, to retake a leadership position in what will be some of the most important industries of the coming decades.
Russell Meyer is the Senior Fellow for Economics and Policy
This post also appeared today in National Journal's Energy & Environment Experts blog.
As others have pointed out in the discussion of California’s Proposition 23, which would suspend the landmark climate law (AB32), passage would have wide-ranging implications for both the state itself and the national debate on comprehensive climate and energy policy in the U.S. These concerns for both California- and national-level climate action are valid – by creating a policy environment of extreme uncertainty, Prop 23 threatens to freeze the currently expanding investment in clean technology in the state. It is also arguably the new “battleground” on comprehensive climate legislation in the U.S., given the current state of affairs in the U.S. Congress.
But there’s an intermediate level of climate action that also is at stake with passage of Prop 23. Success for the fledgling cap-and-trade portion of the Western Climate Initiative (WCI) hinges on California continuing to be a leader in the development and implementation of the program. WCI states account for nearly 15% of U.S. greenhouse gas emissions and WCI would be the first emissions-trading scheme in the U.S. to cap emissions from economy-wide sources. While it may take some time for all WCI states to adopt cap-and-trade, all environmental programs have to start somewhere. And California’s leadership – not to mention the large quantity of emissions the state will add to the new market – is critical to the most comprehensive (in terms of emissions coverage), ambitious climate action initiative in the U.S. Perhaps this is something the backers of Prop 23 are acutely aware of?
While we’re on the topic of threats to this singularly unique climate law, let’s not forget Prop 23’s much less well-known cousin, Prop 26. This initiative seeks to tighten how the state constitution defines taxes and regulatory fees, and require a two-thirds supermajority vote in the state Legislature to enact new taxes and many fees. Perhaps seemingly harmless, lawyers from UCLA this week argued that Prop 26 is a threat to the state's ability to assess fees on polluters for the external costs they impose on the public and will affect a number of existing laws, including the state’s landmark climate law (as well as a green chemistry initiative, two laws blocking chemical products in landfills, and rules on lead). It’s ironic that Prop 23 could be defeated, while Prop 26, backed with multimillion-dollar contributions from the California Chamber of Commerce, Chevron Corporation, and Philip Morris USA Inc., might slide through and have the same effect on AB32, albeit via different means. Passage of either proposition would be a setback to California’s ability (and thus, the WCI’s ability) to move forward on climate.
Eileen Claussen is President
I will be the first to admit that I don’t really understand the California election process. Governors are recalled and propositions seem to proliferate at every election cycle. What I do understand is that these propositions can have dramatic consequences—after all, elections do matter. Most folks who are reading our blog have likely heard of Prop 23, which would effectively stop the implementation of California’s landmark climate change law, AB32. Environmental groups, clean energy entrepreneurs and big names such as Bill Gates and James Cameron have poured large amounts of attention and $25 million into the “No on 23” campaign, even as refiners Valero and Tesoro—and the now infamous Koch Brothers—fund the Yes campaign. Luckily the opponents have been getting the upper hand recently, with polls saying just over 50% of likely voters plan to vote against the prop—including both gubernatorial candidates.