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Commentary
Senators Bingaman (D-NM) and Brownback (R-KS) introduced a bill to establish a renewable electricity standard, and indicated it may move in a lame duck session after the November election. The bill, which for now is more or less identical to the bill reported out of the Energy and Natural Resources Committee last year, has drawn support from three other Republicans . . . The Republican "Pledge to America" includes a commitment to oppose any cap-and-trade legislation . . . EPA guidance on BACT is under review at the White House, suggesting that its release may be coming soon . . . The California Air Resources Board adopted a 33% renewable electricity standard amid some uncertainty about CARB's legal authority to do so and about the extent to which RECs may be used for compliance . . . After a non-eventful meeting of the Major Economies Forum on Climate Change, the State Department's Climate Envoy said low expectations are in order for Cancún—and that the governments agreed that they would not move items on the Copenhagen Accord agenda in isolation from one another.
Executive Branch
- EPA Sends BACT Guidance to OMB for Review. The Environmental Protection Agency (EPA) completed work on guidance to assist state permitting authorities in determining Best Available Control Technology (BACT) for greenhouse gas (GHG) emissions for purposes of Prevention of Significant Deterioration (PSD) permitting under the Clean Air Act. The guidance has been transmitted to the White House Office of Management and Budget (OMB) for review, indicating that it is close to being released. Although EPA has previously indicated that the guidance would be subject to public notice and comment, it is not clear whether the guidance being reviewed by OMB is a final or proposed document. Under a phased-in timetable finalized in the "Tailoring Rule" last June, the PSD GHG permitting requirements (including the requirement to meet the BACT emissions limitation) will apply starting on January 2, 2011 to any stationary sources: (1) that are required to obtain PSD permits as a result of their non-GHG emissions; and (2) whose construction or modification will increase GHG emissions by at least 75,000 tons CO2-equivalent per year.
- EPA Releases Communications from States Regarding Preparedness to Implement PSD Permitting for GHGs. Responding to a request by Sen. James Inhofe (R-OK), EPA publicly released the letters it has received from state governments discussing the states' readiness to begin implementing PSD permitting for GHG emissions from stationary sources beginning in January 2011. EPA required the states to submit the letters in the Tailoring Rule. The letters are available at http://www.epa.gov/nsr/2010letters.html.
- EPA Finalizes Technical Amendments to GHG Reporting Rule. EPA finalized minor changes to the general reporting requirements for all GHG sources that are subject to the agency's mandatory GHG reporting rule, which was finalized in October 2009 and requires annual accounting and reporting of GHG emissions from approximately 13,000 sources nationwide. The changes will require all GHG sources to report the names of their parent companies; identify the North American Industrial Classification System (NAICS) code that applies to the facility; and indicate whether the facility is a cogeneration unit. The first GHG reports are required to be filed in March 2011. The final rule is available at http://edocket.access.gpo.gov/2010/pdf/2010-23674.pdf.
Congress
- Bingaman, Brownback Introduce RES Bill. Senate Energy and Natural Resources Committee Chairman Jeff Bingaman (D-NM) and committee member Sen. Sam Brownback (R-KS) introduced the Renewable Electricity Promotion Act of 2010, S. 3813, a stand-alone renewable electricity standard bill that is very similar to the renewable energy standard (RES) passed by the committee in 2009. The bill would require utilities to obtain 15 percent of their energy from renewable generation and energy efficiency by 2021. Twenty-three senators have signed on as co-sponsors, including Republican Senators Susan Collins (ME), Charles Grassley (IA), and John Ensign (NV). Sen. Bingaman told reporters that it was "very unlikely" that the legislation would move before the election, but that he hoped to build enough support to pass the bill during the lame duck session.
- House Republicans Pledge to Oppose Cap-and-Trade. The House Republicans released a 48-page "Pledge to America" to form the basis of "a new governing agenda." The agenda includes (on page 43) a promise to "fight to increase access to domestic energy sources and oppose attempts to impose a national 'cap and trade' energy tax." The document is available at http://pledge.gop.gov. Rep. Darrell Issa (R-CA), ranking member of the Oversight and Government Reform Committee, told reporters that he would conduct a probe of the "Climategate" e-mail hacking scandal if the Republicans take the majority in the House and he becomes chairman.
- Congressmen Urge Interior to "Defend" Coal Leasing. Thirty-six senators and representatives signed a letter to Interior Secretary Ken Salazar urging him to protect the federal coal leasing program. The letter cites lawsuits filed by an NGO called Wild Earth Guardians challenging leases for coal mining on federal lands in Wyoming and Montana alleging that the leases failed to adequately account for climate change impacts associated with burning the coal. The letter argues that the lease review process adequately considers environmental impacts, and that the federal coal mining is important for generating affordable electricity and supporting high-wage jobs.
- Reid Introduces Narrow Energy Bill. Senate Majority Leader Harry Reid (D-NV) introduced a scaled-back version of the energy bill he introduced in July. The "Promoting Natural Gas and Electric Vehicles Act of 2010" bill, S. 3815, includes programs to support deployment of natural gas and electric vehicles and a provision to increase the per-barrel fee to fund the Oil Spill Liability Trust Fund from 8 cents to 21 cents. The scaled-back legislation leaves out several programs that were contained in the prior version, including the Homestar incentive program.
States and Cities
- CARB Adopts 33 Percent RES; Joins Other Agencies in Outlining Plans to Meet Target. The California Air Resources Board (CARB) adopted a rule that requires 33 percent of all electricity deliveries to consumers to be from renewable sources by 2020. The RES applies to all entities that deliver electricity within the state and incorporates a phased-in approach that provides for interim targets that increase from 20 percent in 2012 to the final 33 percent target in 2020. The rulemaking delayed decisions on several key implementation issues, such as the use of Renewable Energy Credits (REC) for purposes of compliance and penalties for non-compliance. CARB will establish an informal working group to resolve these and other issues. While CARB adopted the rule pursuant to an Executive Order issued by Gov. Arnold Schwarzenegger in 2009, some have questioned whether the order provides CARB with sufficient legal authority to adopt the RES. In addition to issuing the new rule, CARB joined three other state agencies in issuing a report that provides a roadmap for how the state will achieve the 33 percent renewable energy goal and other goals for low-carbon energy. The report, titled "California's Clean Energy Future", calls for additional renewable energy generation, a reduction in the use of electricity and natural gas, the replacement of old coal-fired power generation facilities, the development of carbon capture and storage equipment at one or power generation facilities, the expansion of power storage capacity, and the development of charging stations throughout the state. The three other state agencies cooperating on the report are the California Public Utilities Commission, the California Energy Commission, and the California Independent System Operator. A link to the report is available at http://www.climatechange.ca.gov/energy/index.html.
- CARB Approves Targets for Vehicle GHG Emissions Reductions. CARB approved a set of guidelines for reducing car and light truck GHG emissions in 18 metropolitan planning areas within the state. Issued as part of the agency's implementation of the state's smart growth law, S.B. 375, the targets call for a wide range of reductions from the 18 planning areas. The targets for Sacramento, San Diego, the San Francisco Bay Area, and Southern California—the state's four largest planning regions—were set at 7-8 percent below per capita 2005 levels by 2020 and 13-16 percent below by 2035. Although the targets are nonbinding, the planning areas must demonstrate an ability to achieve the targets to become eligible for certain incentives, such as expedited permitting processes for development projects.
Industry and NGOs
- Environmental Organizations Petition EPA to Regulate GHGs From Locomotives. A petition filed September 21 by the Center for Biological Diversity, Friends of the Earth, and the International Center for Technology Assessment asks EPA to establish emission standards for black carbon and GHGs emitted by locomotives. According to press accounts, the petition argues that EPA is obligated to issue such standards under Section 213 of the Clean Air Act as a result of its decision earlier this year to establish GHG emission standards for light duty passenger vehicles.
- Swiss Re Urges Governments To Prepare to Adapt to Climate Change. Major reinsurer Swiss Re issued a report claiming that climate change is already causing "substantial" economic losses and urging governments to reduce future harm from climate change by investing in adaptation measures such as sea barriers and improved drainage. The report examines eight regions around the world that suffer from varying exposures to climate change risk, and concludes that potential losses over the next twenty years from climate change risks range from 1% to 12% of GDP in the areas studied. According to the report, between 40 to 68% of climate change injuries in those areas could be cost-effectively avoided. Over the next twenty years, says the report, climate change is "likely to significantly increase losses" due to "more severe and frequent weather disasters, rising sea levels, and shifts in rainfall patterns and climate zones." The report is available at http://media.swissre.com/documents/A10485_Climate_adaption_Publication_A4.pdf.
Studies and Reports
- CAISO Finds Renewables Can Be Integrated. A modeling study by the California Independent System Operator (CAISO), the operator of the California electricity grid, found that there would be no major obstacles to integrating intermittent renewable energy sources under the state's current 20 percent renewables portfolio standard, which requires utilities to obtain 20 percent of their power from clean sources by 2012. The study found that the increase in planned solar generation would allow the variability of solar to offset the variability of wind generation, because the two sources tend to peak at different times of day. Following the study's release, CARB voted to extend the RES to require utilities to obtain 33 percent of their power from clean sources by 2020 (for more information, see "CARB Adopts 33 Percent RES; Joins Other Agencies in Outlining Plans to Meet Target" above). The study is available at http://www.caiso.com/2804/2804d036401f0.pdf.
International
- Major Economies Expect No Treaty Agreement In Cancún. Representatives of the 17 members of the Major Economies Forum (Forum) met in New York City to discuss international negotiations on a climate change treaty. At a news conference following the meeting, U.S. State Department Special Envoy for Climate Change Todd Stern said that the members of the Forum do not expect to come to final agreement on a climate change treaty at the negotiations in Cancún, Mexico scheduled for late November and December of this year. Instead, the Cancún meetings will focus on the key Copenhagen Accord issues of mitigation, transparency, finance and technology for adaptation. According to Stern, the 17 countries represented at the Major Economies Forum did agree that progress needed to be made at the same speed on all of the core issues. "We shouldn't make progress on two or three and make no progress on the others," said Stern.
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