Climate Compass Blog

Regulatory Uncertainty Hinders Business in Alaska and Nationwide

ANCHORAGE - Alaska is a big state, with big mountains, big wildlife, and big development projects.  It’s also a place of big changes: the state has warmed more than 4 degrees, creating tremendous pressures on the natural environment and society.  But in a place where the people are always looking for the next big economic driver, like a $40 billion Alaska natural gas pipeline, uncertainty about carbon regulation is an Alaska-sized problem.

Federal Agencies Are Moving Forward with Climate Change Initiatives

Here in Washington we’re waiting for the snow to end and Congress to make progress on a comprehensive climate and energy bill – both can’t come soon enough. And although the federal government has been closed here for the past few days, the past few weeks have seen some significant progress by federal agencies on the climate front.

As part of an effort to lead by example, President Obama announced that the federal government will reduce its greenhouse gas pollution by 28 percent by 2020. Federal agencies have been working on developing their targets since the release of President Obama’s Executive Order 13514 on Federal Sustainability in October of 2009, which requires agencies to set a number of measurable environmental performance goals. This target is the aggregate of 35 agency targets and the Obama Administration believes it will “reduce Federal energy use by the equivalent of 646 trillion BTUs, equal to 205 million barrels of oil, and taking 17 million cars off the road for one year.” Later this year federal agencies will be setting targets for their indirect GHG emissions (looking for GHG reduction opportunities with vendors and contractors, implementing low-carbon strategies for transit, travel, and conferencing, etc.).

We’ve also seen indications that the impacts of climate change are to be formally considered in the operations of two prominent federal agencies. The Pentagon released a long-term strategy that for the first time recognizes climate change as a direct threat to U.S. forces. In the Department of Defense (DOD) Quadrennial Defense Review (QDR) Report–the legislatively-mandated review of DOD strategy and priorities—the agency noted that climate change will affect DOD in two broad ways. First, it will shape the operating environment and missions by acting as “an accelerant of instability or conflict, placing a burden to respond on civilian institutions and militaries around the world.” And second, that DOD will need to adjust to the impacts of climate change on its facilities and military capabilities and will need to work to “assess, adapt to, and mitigate the impacts of climate change”.

The U.S. Securities and Exchange Commission (SEC) has announced that companies should disclose to investors the potential risks and opportunities that climate change presents for their assets. Although the guidance is not a formal regulation, the SEC intends for it to “provide clarity and enhance consistency for public companies and their investors”. In addition to the physical impacts of climate change (floods or hurricanes, rising sea levels, water availability, etc.), examples of where climate change may trigger disclosure requirements include the impacts of climate legislation and regulations, international accords, and indirect consequences of regulation or business trends.

These recent developments, along with the President’s clear commitment to climate change and energy policy during his State of the Union address last month are very encouraging.

Speaking of making progress, its time for me to get back to shoveling snow.

Heather Holsinger is a Senior Fellow for Domestic Policy

Update #2: It’s so cold! What happened to global warming?

Science Q&A

In the past few weeks I’ve posted twice (here and here) on reasons why global warming could be increasing the frequency of heavy snow events in certain parts of the United States (and likely in other similarly situated places around the world).

In a recent post on his WunderBlog (Weather Underground Blog), Dr. Jeff Masters gives his take on this issue. Dr. Masters is co-founder and Director of Meteorology of Weather Underground, a weather service that provides real-time weather information via the Internet. Unlike me, he’s a real weather expert and I highly recommend his blog.

Nuclear Waste Commission, Yucca Mountain, and Loan Guarantees

Recent news has cast a spotlight on nuclear power. We’ve blogged before about nuclear power and its potential to play a large role in decarbonizing the electricity sector.

First among the big news items related to nuclear power is the official naming by the Obama Administration of a much-anticipated Blue Ribbon Commission on America’s Nuclear Future to recommend a safe, long-term solution for used nuclear fuel and nuclear waste. The commission, announced on January 29, will issue its final report within 24 months. Energy Secretary Chu noted that the commission is not tasked with recommending a site for a long-term waste repository.

Building an Electric Vehicle Here in the USA

In tackling climate change, a diverse transportation sector can contribute greatly to reducing greenhouse gas (GHG) emissions. In 2008, the transportation sector accounted for 28% of U.S. GHG emissions, according to the EIA. In achieving the goal of reducing emissions, transportation policy must reduce GHG emissions from travel without compromising the mobility of Americans. To that end, electric vehicles provide a much-needed alternative to gasoline and diesel powered cars.

Carmakers are responding to this challenge by designing plug-in electric vehicles (PHEVs) and all electric vehicles (EVs). Nissan’s Leaf, a new electric vehicle, is slated to hit showrooms throughout the U.S in late 2010. One of two Leafs seen in public was on display last week at the Washington Auto Show where the Green Car Journal named the Leaf its 2010 Green Car Vision Award winner.

Nissan Leaf

At first, Nissan will likely place prospective buyers on a waiting list, but it anticipates ramping up Leaf production at a factory it is retooling in Smyrna, Tennessee. The company secured a $1.4 billion loan from the U.S. Department of Energy (DOE) last week to prepare the plant to manufacture the vehicles and the advanced batteries that will power them. DOE points out that the facility will “create up to 1,300 American jobs and conserve up to 65.4 million gallons of gasoline per year.” The 150,000 vehicle-per-year factory positions the U.S. as a leader in the next generation of low-emissions vehicle manufacturing.

At the DC auto show, the Nissan representative shared details about the vehicle along with the company’s program to distribute it worldwide. Nissan is partnering with Better Place, an innovative electric vehicle services provider, to sell the Leaf in Denmark and Israel in 2011. The company intends to make modifications to the Leaf’s chassis to support Better Place’s battery switch stations. The Leaf will also meet SAE’s J1772 standard for electric vehicle charging. Lastly, by laminating the lithium-ion battery packs in order to make them self-cooling, Nissan solved a complex technical problem without using a computer control system. More information about the Leaf is available on Nissan’s website.

The L.A. Time reports Nissan hints at a sticker price of less than $30,000, before accounting for the $7,500 federal tax credit for plug-in hybrid vehicles and electric vehicles provided in the Recovery Act. No pricing information was available at the auto show. 

The three most important issues to Americans today are the economy, jobs, and terrorism according to the Pew Research Center for the People & the Press. If one makes the logical connection between protecting against terrorism and promoting energy security, Nissan is timely in releasing the Leaf in 2010. With the Leaf, the company will create American jobs to manufacture an affordable vehicle that lowers U.S. dependence on foreign oil.

Nick Nigro is a Solutions Fellow