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 March 19, 2012, Utah Governor Gary Herbert signed S.B. 12 into law, giving non-utility electricity consumers the ability to buy power directly from renewable energy generators. S.B. 12 is the product of close collaboration among state government officials, utilities, renewable energy producers, consumer groups, and industrial stakeholders, such as eBay, which initiated the effort to introduce legislation. S.B. 12 is intended to promote the development of the renewable energy market in Utah, a state that derives 94 percent of its electricity from coal. It also makes the state more attractive to companies that have embraced sustainable business practices and are looking for supportive locations to locate investment and jobs.
S.B. 12 provides both opportunity and flexibility for consumers looking to purchase renewable energy. Previously, only utilities were legally able to purchase electricity from renewable generators, but utilities are frequently sensitive to customer rate increases that may accompany renewable purchases. Large consumers were prevented from buying renewable electricity even if they were willing to pay more for it or viewed renewable electricity as a good long-term investment to protect against fossil fuel price increases. S.B. 12 offers a solution where consumers can negotiate directly with renewable generators and purchase electricity according to their willingness to pay, while still allowing Utah’s utilities to play a role in transmitting and distributing electricity. To reach a consensus, eBay, along with its partner stakeholders, created a working group to craft legislation, which helped the resulting bill pass unanimously in both houses of the state legislature. State officials hope the legislation will convince other businesses looking to embrace sustainability to invest in the state and help Utah to meet its goal to generate 20 percent of its electricity from renewables by 2025.
Learn about new EPA power plant rules, an action plan to get more electric vehicles on the road, recommendations from the National Enhanced Oil Recovery Intiative to boost domestic oil production while cutting CO2 emissions from power plants, and more in C2ES's March 2012 newsletter.
March 27, 2012
In a March 27 editorial, Bloomberg editors addressed how the U.S. can learn from China's push for capturing carbon and highlighted the work of the National Enhanced Oil Recovery Initiative (NEORI), a group of industry, state, environmental and labor leaders convened by C2ES and the Great Plains Institute. In the piece, Bloomberg endorses NEORI’s recommendation that Congress create a production tax credit for power companies that capture CO2 and send it to oil companies for enhanced oil recovery. Below is an excerpt from the editorial.
The federal government, too, could help push the technology forward, by taking up a smart strategy that has been suggested by a coalition of oil industry executives, environmentalists and state officials called the National Enhanced Oil Recovery Initiative. It has to do with the other side of the carbon- capture equation -- what to do with the CO2 once you’ve taken it out of the power-plant exhaust.
China’s Huaneng plant sells its carbon dioxide to companies that make carbonated drinks and dry ice. Duke envisions turning it into solid carbonate to be used for building materials or road construction. Some innovators are feeding CO2 to microscopic algae to produce either fuel or proteins used in nutrition supplements or animal feed.
But it can also be used to coax more oil out of the earth. Since 1972, oil companies have injected carbon dioxide taken from natural sources to free up crude trapped in rock formations. The industry operates 3,900 miles of pipelines carrying 65 million tons of CO2 per year, and “enhanced oil recovery,” as the technique is known, accounts for 6 percent of U.S. oil production.
With new technology and enough CO2, the industry could use enhanced recovery to increase production by 67 billion to 137 billion barrels, according to a report from the National Enhanced Oil Recovery Initiative. The report envisions using 20 billion to 45 billion metric tons of CO2 from carbon capture -- the total amount expected to be produced by power plants for the next 10 to 20 years.
We endorse the coalition’s recommendation that Congress create a production tax credit for power companies that capture CO2 and send it to oil companies for enhanced recovery. By increasing domestic oil production, such a credit is estimated to be able to pay for itself within a decade.
Click here to read the full editorial
Statement of Eileen Claussen
President, Center for Climate and Energy Solutions
March 27, 2012
We welcome EPA's proposal today to limit greenhouse gas emissions from new power plants and urge the Administration to quickly move forward with rules for existing plants, which account for 40 percent of U.S. carbon dioxide emissions. Power companies face huge investment decisions as they meet new pollution standards and retire or upgrade outdated plants. They need to know the full picture - including future greenhouse gas requirements - in order to keep our electricity supply as reliable and affordable as possible.
While highly efficient natural gas-fired power plants would meet the standard proposed today, new coal-fired power plants not already in the pipeline could likely meet the standard only by capturing and permanently sequestering their greenhouse gas emissions. This underscores the urgency of stronger public and private investment in carbon capture and storage technologies. The United States, China and India - the world's three largest greenhouse gas emitters - all have substantial coal reserves. If we can't figure out how to get the energy value out of coal with a minimal carbon footprint, we will not solve the climate problem.
With prospects for substantial public investment in CCS unclear, C2ES is now working with policymakers and stakeholders on ways to expand enhanced oil recovery using captured carbon dioxide - an approach that can boost domestic oil production, reduce greenhouse gas emissions, and help lay the groundwork for full-scale carbon capture and storage.
Contact: Rebecca Matulka, 703-516-4146
Learn more about EPA's greenhouse gas standard for new power plants.
Bloomberg editors endorse NEORI's production tax credit recommendations
Few policy options can be a win-win for both political parties, as well as industry, environmental advocates, and labor. Similarly, increasing oil production and decreasing carbon emissions are thought of as conflicting goals. Yet, a solution may be on the horizon. On February 28, the National Enhanced Oil Recovery Initiative (NEORI) released its recommendations for advancing enhanced oil recovery with carbon dioxide (CO2-EOR). NEORI is a broad coalition of industry, state officials, labor, and environmental advocates.
While NEORI participants might not agree on many energy and environmental issues, each participant recognizes the vast potential of CO2-EOR and worked toward producing a set of policy recommendations for its expansion. CO2-EOR already produces 6 percent of U.S. oil, and it could potentially double or triple existing U.S. oil reserves. In comparison to other options, CO2-EOR offers an extraordinarily large potential expansion of domestic oil production, while also advancing an important environmental technology.
Market Mechanisms: Understanding the Options
The most recent study on climate change by the U.S. National Academy of Sciences concluded that, “Climate change is occurring, is caused largely by human activities, and poses significant risks for—and in many cases is already affecting—a broad range of human and natural systems. (See Climate Change 101: Science and Impacts.) The combustion of fossil fuels has contributed to the expansion of the global economy since the start of the Industrial Revolution. It has also substantially increased the concentration of carbon dioxide, the primary greenhouse gas in the atmosphere. The cumulative impact of these emissions poses significant economic risks. Policies to reduce emissions are required if we are to avoid the most costly damages of a rapidly changing climate. This brief describes how market-based policies can achieve climate goals more cheaply and efficiently than alternative policy structures—all while driving innovation to develop more cost effective, clean energy solutions that will serve as the foundation for strong economic growth throughout the 21st century.
While Americans bought nearly 18,000 PEVs last year, 2012 is the first full year when plug-in electric vehicles will be available nationwide. The long-term success of PEVs could bring some very real benefits to energy security, air quality, climate change, and economic growth.
Ridesharing: Context, Trends, and Opportunities
by Cynthia J. Burbank and Nick Nigro
March 6, 2012
Is enhanced oil recovery (EOR) the missing link in the United States' energy policy? During today's OnPoint, Judi Greenwald, vice president for technology and innovation at the Center for Climate and Energy Solutions and Robert Baugh, executive director of the AFL-CIO Industrial Union Council, outline the recommendations of the National Enhanced Oil Recovery Institute, a coalition of business and environmental groups. Greenwald and Baugh call on Congress to pass an enhanced oil recovery tax credit to spur innovation and growth in carbon capture and storage. They also address the environmental concerns associated with EOR. Click here to watch the interview.
North America 2050: A Partnership for Progress (NA2050) formally launched on March 14, 2012. NA2050 is a group of U.S. states and Canadian provinces committed to policies that move their jurisdictions toward a low-carbon economy while creating jobs, enhancing energy independence and security, protecting public health and the environment, and demonstrating climate leadership.
NA2050 is the successor to the 3-Regions Initiative, which was a collaboration among members of the three North American regional cap-and-trade programs: The Midwestern Greenhouse Gas Reduction Accord, the Regional Greenhouse Gas Initiative and the Western Climate Initiative. NA2050 is a broader effort, addressing clean energy in addition to climate change.
Work in NA2050 primarily takes place within seven working groups:
- Benefits: Evaluating and communicating the benefits of moving to a low-carbon economy
- Power Sector 2050: Influencing and preparing for U.S. Clean Air Act requirements for the electricity sector
- Industry 2050: Encouraging industrial energy efficiency through benchmarks
- Sequestration: Encouraging sequestration and reuse of CO2
- Sustainable Biomass: Examining best use and priority pathways for biomass
- Offsets: Developing high quality offsets
- Linking: Exploring linking of existing cap-and-trade programs