August 6 Colorado Energy Roundup: Clean Power Plan Edition

Colorado’s expected targets on carbon reduction from the finalized Clean Power Plan unveiled Monday:

Colorado’s 2030 goal of a 28 percent reduction in overall carbon dioxide emissions — or a 40 percent reduction in the pounds of CO2 emitted per megawatt hour of electricity generated — was set using a 2012 benchmark.

“Having them stick to that baseline year of 2012, we don’t necessarily get credit for being early thinkers and early movers,” said Dr. Larry Wolk, executive director and chief medical officer of the Colorado Department of Public Health and Environment.

Colorado’s Attorney General Cynthia Coffman has vowed to review the new rules and could consider joining a multi-state lawsuit against the Clean Power Plan:

Attorney General Cynthia Coffman said the plan “raises significant concerns for Colorado” and that she’s considering joining other states in a legal challenge.

Citing concerns about potential job losses and an unrealistic set of goals and timelines, Coffman said in an e-mail she will ” carefully review the EPA’s plan and evaluate its long term consequences for our state.”

“But as I put the best interests of Colorado first, it may become necessary to join other states in challenging President Obama’s authority under the Clean Air Act.”

It is not clear at this time how long Coffman will take to render a decision on whether or not to join that lawsuit, but the Colorado Department of Public Health and Environment’s Dr. Wolk said that the agency is pushing forward:

“It is the right thing to do,” Wolk said.

If there’s a legal challenge to be had related to EPA authority, that’s a matter specific to the attorney general, he said.

“But it is not something we would use to deter our efforts, which have been underway for several years,” Wolk said.

Governor John Hickenlooper’s office told the Denver Post, “We respect the due diligence of the attorney general in reviewing the plan and will watch the next steps closely.”

Hickenlooper has already made it clear his administration welcomed the Clean Power Plan, and would not join an effort to thwart that plan at the state level.

The final rule moves the deadline for state implementation plans back, and the CDPHE has given an initial nod to allowing the legislature to vote on the agency’s plan:

The final state plan will go to the legislature for approval before submission to the EPA. An initial state plan will be due September 2016 with an option for states to request a two-year extension to September 2018 for submission of the final plan.

How much input the Colorado legislature will have remains to be seen due to the possibility of legislation in 2016 and even 2017. Colorado may file for an extension, giving the legislators additional opportunities to consider enabling legislation, procedural requirements such as a stronger or even mandatory role for the Public Utilities Commission, or other variations on how Colorado submits its CPP SIP. The 2015 session saw SB 258, the Electric Consumers’ Protection Act, pass out of the Senate in bipartisan fashion but ultimately die in Democratically-controlled House. The bill would have sought transparency for the CPP state plan by requiring PUC hearings and deliberation, as well as an up or down vote by the Colorado legislature as a whole.

The Independence Institute published a backgrounder in April, during the rule finalization process, that took a look at possible economic and legal implications of the CPP:

– Will require a new regulatory regime, and holistically seeks to remake the nation’s energy policy;
– Will incur massive costs;
– Will greatly affect energy reliability across the country;
– Is likely illegal; and
–Won’t have any measurable impact on global CO2 emissions.

A quick look at Colorado’s CO2 emission levels from the 2012 baseline show a 40.5 percent reduction in carbon by 2030, from 1973 pounds per megawatt hour down to 1174. Interim goals would reach approximately 31 percent reduction between 2022 and 2029, with states receiving some flexibility on reaching the step reductions. The EPA estimates that by 2020, Colorado would see a 14 percent reduction–without any Clean Power Plan guidelines.

States’ goals fall in a narrower band, reflecting a more consistent approach among sources and states.

At final, all state goals fall in a range between 771 pounds per megawatt-hour (states that have only natural gas plants) to 1,305 pounds per megawatt-hour (states that only have coal/oil plants). A state’s goal is based on how many of each of the two types of plants are in the state.

The goals are much closer together than at proposal. Compared to proposal, the highest (least stringent) goals got tighter, and the lowest (most stringent) goals got looser.

o Colorado’s 2030 goal is 1,174 pounds per megawatt-hour. That’s in the middle of this range, meaning Colorado has one of the moderate state goals, compared to other state goals in the final Clean Power Plan.

o Colorado’s step 1 interim goal of 1,476 pounds per megawatt-hour reflects changes EPA made to provide a smoother glide path and less of a “cliff” at the beginning of the program.

The 2012 baseline for Colorado was adjusted to be more representative, based on information that came in during the comment period.

Screen Shot 2015-08-06 at 12.58.53 AM

The full text of the EPA’s outline for Colorado is here:

Colorado Clean Power Plan Goals

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So why can the EPA project an additional 14 percent reduction of carbon emissions by 2020 without the Clean Power Plan?

Energy In Depth has the details, via the Energy Information Administration:

According to a report released today by the Energy Information Administration (EIA), monthly power sector carbon emissions reached a 27-year low in April of 2015. In that same month, natural gas was, for the first time, the leading source of American electricity. As the EIA puts it:

“The electric power sector emitted 128 million metric tons of carbon dioxide (MMmt CO2) in April 2015, the lowest for any month since April 1988…Comparing April 1988 to April 2015 (27 years), natural gas consumption in the sector more than tripled.” (emphasis added)

EIA-chart

EID concludes, “As the EIA’s report clearly shows, these environmental benefits are due in large part to an American abundance of safely produced, clean-burning natural gas.” EPA’s administrator Gina McCarthy has repeatedly pointed to natural gas as a “bridge” or key component in reducing carbon.

But natural gas as a “building block” for CPP compliance is threatened by the next EPA rule to come down the regulatory turnpike, the ground-level ozone rule to be finalized in October, according to the Institute for Energy Research.

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Studies have considered the cost to the economy and the toll in human terms due to job loss:

President Barack Obama’s plan targeting coal-burning power plants will cost a quarter of a million jobs and shrink the coal industry by nearly half, according to a new report by the American Action Forum (AAF).

The president released final regulations from the Environmental Protection Agency (EPA) on Monday, which require every state to meet strict emission standards for coal-burning power plants in the next 15 years.

The so-called “Clean Power Plan” will cost the industry $8.4 billion, nearly 10 times more expensive than the most burdensome regulation released this year, according to AAF, a center-right think tank led by Douglas Holtz-Eakin, former director of the Congressional Budget Office.

“This week, the Environmental Protection Agency (EPA) released its final greenhouse gas (GHG) standards for existing power plants,” according to the report, authored by AAF’s director of regulatory policy Sam Batkins. “The final plan will shutter 66 power plants and eliminate 125,800 jobs in the coal industry.”

Job loss will be substantial due to the shuttering of coal-fired power plants, including those in Colorado.

It will also likely be heavily localized, as the tenuous situation in northwest Colorado facing the Colowyo Mine and Craig’s coal-fired plant illustrate–and this comes before the state considers how to implement the Clean Power Plan.

Moffat County, where both the mine and power plant reside, would see just a few hundred jobs on the chopping block, but this would devastate the area, as a recent video from Institute for Energy Research showed:

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Reaction to the rule varied across the spectrum, and the Denver Business Journal gathered a handful of the more pointed statements from both sides:

Joel Serface, managing director of Brightman Energy, a renewable energy development company.

“The Clean Power Plan is a huge opportunity for Colorado’s economy. By tackling the rising economic costs of climate change, we can modernize our energy infrastructure, stimulate innovation and help create thousands of good, new Colorado jobs in high-growth sectors like wind and solar.”

State Sen. John B. Cooke (R-Weld County):

“The Governor needs to commit himself to a true public process, including a rigorous review by the people’s representatives in the Colorado General Assembly, before giving a green light to Colorado’s implementation of this new federal mandate. These rules are being challenged in federal court by sixteen states, and I hope that Colorado’s Attorney General will join that lawsuit now that the EPA rules are final. The fact is, the Clean Air Act passed by Congress does not authorize these costly dictates, and there is a good chance the US Supreme Court will block these rules for that reason.”

Independence Institute at the “Stop the EPA Power Grab” Rally

August 6, 2014 by michael · Comments Off
Filed under: Environmental Protection Agency, Legal, Legislation, preferred energy, renewable energy 

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More than 400 people turned out last week for the “Stop the EPA Power Grab” rally for affordable energy just across Lincoln Avenue from the west steps of the Capitol.

Coal miners, their families, representatives of more than 20 allied mining and natural resource groups, union members, business leaders, and affordable energy activists from Colorado and many states across the Rocky Mountain region gathered to address the Environmental Protection Agency’s “listening tour” for its newly unveiled “Clean Power Plan.”

The Independence Institute was a co-sponsor of the event, along with Americans for Prosperity-Colorado, the Colorado Mining Association, and several other business and civic groups from Wyoming, Montana, and Utah. Union groups represented included the AFL-CIO of Wyoming and Boilermakers of Montana.

Over the next two years, the EPA expects each state to develop its own plan to reduce carbon emissions by 30 percent below 2005 levels.

These regulations are designed to hurt coal–and by extension, will harm low income, minorities, the elderly, and rural communities that rely on coal for affordable, reliable energy. The rule will likely artificially raise the price of electricity substantially, while inefficient and more expensive sources of energy are substituted.

While agnostic on the question of energy sources, the Independence Institute is not agnostic on the intrusion of government in the free market energy arena, and believes that each state’s energy mix should be market-driven, not shaped by onerous and far-reaching regulations that stifle competition and raise electricity rates.

That was the message the Independence Institute wished to share with the attendees last week.

The text of my speech, more or less as delivered:

Good afternoon! My name is Michael Sandoval and I’m an energy policy analyst and investigative reporter for the Independence Institute, and I’d like to tell you a little bit about how mining brought my family to Colorado 86 years ago.

More than 100 years ago, my great-grandfather Anthony, a poor Italian immigrant, moved to Utah to mine coal and achieve the American Dream–earn a living for his growing family. With the money he earned from coal mining, he moved to Denver’s Little Italy, and in 1928, along with his son–my grandfather–he purchased a grocery store that was a fixture in the Italian-American community for 7 decades, eventually becoming an historic landmark.

I stand before you a product of that rich mining heritage, and I am deeply grateful for it.

I also stand WITH you. I will NOT let the EPA CRUCIFY COAL–to use the words of Al Armendariz, former EPA administrator and now Sierra Club’s Beyond Coal campaigner.

Our natural resources are both a blessing and a driving economic force in our region. They provide tens of thousands of good-paying jobs and they keep the lights on and, this time of year, the air conditioning running not just for us but for our most vulnerable community members.

But EPA outsiders have decided that a different energy path should be followed. They pay lip service to those affected by having a handful of “listening tours” AFTER they’ve decided which predetermined policy course they should undertake.

That is why we are here today. To let the EPA know that we already have ABUNDANT AFFORDABLE, AND MOST IMPORTANTLY, RELIABLE ENERGY.

The Independence Institute is agnostic on energy sources–we do not care if the energy comes from hydro, coal, solar, natural gas, nuclear, or wind–but we are not agnostic on the subject of government intrusion into the energy sector–free energy markets, not preferred energy mandates, should guide our economy.

Achieving our own energy mix should come from market forces as businesses and consumers choose what is best for them, not onerous regulations imposed by anonymous EPA bureaucrats.

Government agencies like the EPA or the Department of Energy should NOT be in the business of picking energy winners and losers with this proposal, which EPA DIRECTOR GINA MCCARTHY ADMITTED “ISN’T ABOUT POLLUTION CONTROL” JUST LAST WEEK IN A SENATE COMMITTEE.

THIS PITS corporate cronies–WHAT MCCARTHY DUBS “INVESTMENT OPPORTUNITIES IN CLEAN AND RENEWABLE ENERGY” against the poor, the elderly, minorities, rural communities.

Nothing was more poignant than last October, when the EPA last made a stop at its Region 8 office, as miners and rural business owners and suppliers–along with their families–were forced to plead for their livelihoods with agency representatives.

We are here, along with all of the other organizations and friends here today, to say NO–say it with me–NO–to the EPA’s energy power grab.

DON’T BE FOOLED into thinking this is just about coal, or that hydraulic fracturing is just about natural gas. Folks, this is about an agenda for putting an end to the use of ALL of our natural resources, not just in Colorado, but in the entire Rocky Mountain West.

January 23 Energy Roundup: Fracking Dishonesty; Interior Sec. Jewell Boots Press

January 23, 2014 by michael · Comments Off
Filed under: Archive, Hydraulic Fracturing, renewable energy 

Periodically, the Independence Institute’s Energy Policy Center will take a look at the good, the bad, and the ugly in energy stories from around the United States and abroad, and bring the best (and worst) of those stories to your attention.

1. Secretary of the Interior Sally Jewell may have violated Colorado Open Meetings Law under its sunshine statutes by shutting out members of the press while visiting Moffat County on Tuesday. The meeting in Colorado centered on the status of the sage-grouse, a species whose designation could affect energy projects in the northwest portion of the state:

As she was leaving, Leavitt Riley said she saw Jewell in a car in the parking lot and the driver-side door was open, so she approached Jewell “and she said the press was not allowed at this meeting,” Leavitt Riley recalled.

“I said, do you realize more than a dozen elected officials were in it? She said the tour was open to the press but this was a closed meeting” and then drove away, Leavitt Riley said.

She said the newspaper is pursuing the matter with the Colorado Press Association. No one with the U.S. Secretary of the Interior’s office was available for comment Tuesday night.

2. From Lachlan Markay at the Washington Free Beacona Politico column riddled with inaccuracies from anti-fracking activists:

A pair of prominent environmentalists penned a column Tuesday for Politico Magazine attacking hydraulic fracturing littered with dishonest and incorrect claims.

“If you calculate the greenhouse gas pollution emitted at every stage of the production process—drilling, piping, compression—it’s essentially just coal by another name,” McKibben and Tidwell wrote.

The claim is frequently sourced to Cornell scientists Robert Howarth and Anthony Ingraffea, who have found significantly higher life cycle emissions than are found in other studies.

Numerous government agencies, environmentalist groups, and academics have panned Howarth and Ingraffea’s work on the issue and produced their own studies showing relatively low life cycle emissions from natural gas.

“Their analysis is seriously flawed,” according to three Cornell colleagues, professors in the university’s departments of earth and atmospheric sciences and chemical and biological engineering.

3. Michael Bastasch at The Daily Caller highlights a report on the social benefits of fossil fuels:

Burning off carbon dioxide into the atmosphere to provide cheap electricity may have affected the climate, but the benefits of a carbonized economy far outweigh the costs, according to a new study.

The pro-coal American Coalition for Clean Coal Electricity (ACCCE) released a study showing that the benefits of carbonized fuel, like coal, to society are 50 to 500 times greater than the costs. Over the past two-and-a-half centuries increased fossil fuel energy production has helped more than double global life expectancy and increase global incomes 11-fold.

4. North Carolina State University issued a study finding that increasing the use of electric vehicles “is not an effective way to produce large emissions reductions”:

“We wanted to see how important EDVs may be over the next 40 years in terms of their ability to reduce emissions,” says Dr. Joseph DeCarolis, an assistant professor of civil, construction and environmental engineering at NC State and senior author of a paper on the new model. “We found that increasing the use of EDVs is not an effective way to produce large emissions reductions.”

The researchers ran 108 different scenarios in a powerful energy systems model to determine the impact of EDV use on emissions between now and 2050. They found that, even if EDVs made up 42 percent of passenger vehicles in the U.S., there would be little or no reduction in the emission of key air pollutants.

Fossil fuel use protects us from climate-related risks

December 21, 2012 by Amy · Comments Off
Filed under: Archive, New Energy Economy 

This editorial from Brian T. Schwartz originally appeared in the Boulder Daily Camera on December 15, 2012.

Many people will uncritically blame fossil fuel use for recent warm weather. But they are blind to how fossil fuels have reduced climate-related deaths since the 1920s. Since then, climate-related death rates have decreased by 98 percent, explains a Reason Foundation study by Indur Goklany. During this time, carbon dioxide emissions increased significantly.

Thanks to the fertilizers, pesticides, irrigation, and farm machinery enabled by fossil fuels, increased global food production has made droughts less deadly.  Where extreme weather leaves people hungry and injured, fossil-fuel based transportation enables fast delivery of food, medical supplies, and disaster response units.

Wealth is a population’s best protection from climate risks, and wealth creation requires affordable, reliable energy. But billions of people in poor under-developed countries are still very vulnerable to climate risks. They need affordable and reliable energy — now. Obstructing their use of fossil fuels endangers their lives.

And droughts? Two recent studies published this year challenge the notion that global warming contributes to them.  In the Journal of Climate, CU-Boulder and NOAA researchers “conclude that projections of acute and chronic [increases in severe droughts] … are likely an exaggerated indicator for future Great Plains drought severity.” In the journal Nature, Princeton University researchers find that “there has been little change in drought over the past 60 years.” In the same issue of Nature, a lead IPCC author wrote that “the findings imply that there is no necessary correlation between temperature changes and long-term drought variations.”

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See also:

Humanity Unbound: How Fossil Fuels Saved Humanity from Nature and Nature from Humanity,” by Indur Goklany

The Industrial Manifesto,” by Alex Epstein

A New Tool For Automobile Inspection & Maintenance

January 12, 2002 by admin · Comments Off
Filed under: Archive 

A New Tool For Automobile Inspection & Maintenance