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~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Brought to you by the Environmental and Energy Study Institute
EPA Chief Defends Denial of California Waiver on Tailpipe GHG Emissions On February 28, EPA Administrator Stephen Johnson issued a formal, 47-page justification to his controversial December 19 decision to deny California and a dozen other states, including Pennsylvania and New Jersey, a waiver to create their own tailpipe greenhouse gas (GHG) emission rules. The federal agency postponed the publication of its written justification in the Federal Register, thus stalling the court case brought by California, 18 other states and seven environmental groups. The EPA document focuses on a Clean Air Act clause that motor vehicle waivers be issued to California on the grounds of "compelling and extraordinary" circumstances in the state, which had begun regulating emissions before the 1970 federal law. Scientists say that at that time California had the dirtiest air in the nation, and today 90 percent of Californians still breathe unhealthy air. California officials said that pollution is exacerbated by global warming. Johnson has argued that a fuel efficiency standard of 35 miles per gallon, signed into law in December, will sufficiently curb greenhouse gases. Johnson wrote, "While I find that the conditions related to global climate change in California are substantial, they are not sufficiently different from conditions in the nation as a whole to justify separate state standards." Johnson’s decision brought about protests from 14 governors, and members of Congress called hearings on why Johnson overruled EPA staff scientists who recommended he grant the waiver. Congressional Democrats think the decision was politically motivated and have sought correspondence between EPA and the White House. Senate Democrats have said Johnson used a thin legal argument to justify a position backed by automakers, who oppose stricter standards. Senator Barbara Boxer of California said, “It is shocking that even though the whole world now knows that the professional staff at EPA strongly urged Mr. Johnson to grant California's waiver, he completely walked away from his advisors, the science, and precedent, and did the bidding of the special interests instead.” Johnson said he “was not directed by anyone to make any decision.” Jerry Brown, California Attorney General, dismissed Johnson's arguments as “obfuscating, sabotaging . . . specious, ill-founded. . . . We're going to fight him until he's sent packing by the next president.” Click on the following link for more information:
Clean Energy Technology Venture Capital Investments Increasing A recent survey of investors, entrepreneurs and analysts by accounting firm KPMG found 24 percent of respondents said clean energy technology would receive the most investment money in the next two years, the highest percentage for any sector. In 2007, Dow Jones VentureSource released data that showed venture investors globally invested $3 billion in 221 companies developing clean technologies—from selling solar panels to manufacturing electric cars. That value was up 43 percent from the $2.1 billion invested in 2006. In the United States $2.52 billion was invested in 159 clean-tech deals in 2007, up from $1.4 billion in 2006. At $693.7 million, solar companies were the most popular green investments in the United States last year. But the largest US investment was a $200 million commitment to Palo Alto, California-based Project Better Place, which is developing a new infrastructure to support electric cars. The rise in investments follows continued regulatory action to reduce GHG emissions and an increasing consciousness among government and consumers to address energy security and global warming. Click on the following links for more information:
Climate Change Already Disrupting Water Supplies in Western US In the February 22 edition of Science Express, a group of scientists from Scripps Oceanography, Lawrence Livermore National Laboratory, University of Washington, the National Institute for Environmental Studies in Japan and the San Diego Supercomputer Center reported that climate change from human activity is already disrupting water supplies in the western United States. The study, “Human-Induced Changes in the Hydrology of the Western United States” used computer model analyses to trace hydrological trends to human causes. The regional, multivariable climate change detection and attribution study found that up to 60 percent of the climate-related trends of river flow, winter air temperature, and snow pack from 1950 – 1999 are human-induced. These results portend, in conjunction with previous work, a coming crisis in water supply for the western United States. Lead researcher Tim Barnett, a research marine physicist at Scripps, said the analysis is unprecedented in its sophistication and novelty of approach. Barnett said, “We couldn't shake the results. We got the same answer no matter what analysis techniques or datasets we used. . . After the performance on the last 50 years of observations, we can put high confidence in their general predictions for the next 20 years, at least in the western United States.” Click on the following links for more information:
Climate Change Affecting Agriculture in Middle Eastern Countries On March 3, the UN Food and Agricultural Organization (FAO) said climate change is likely to reduce agricultural production and exacerbate water shortages in the Middle East, threatening the region's poor. An FAO report says higher temperatures, droughts, floods and soil degradation will add to stresses in areas already suffering from limited water, food price shocks and shortages of arable land. Many of the region's irrigation systems are already under considerable environmental strain due to salinity, waterlogging and overuse of groundwater. Several Middle Eastern countries are already wheat and rice importers, and climate change may increase their reliance on imports at a time of rising prices. FAO finds that hunger and malnutrition caused by climate change will most likely affect those who are already poor, malnourished or dependent on local food production. The report finds an additional 155 million to 600 million people may experience an increase in water stress caused by a rise in temperature of a few degrees. The report, which is being discussed at a regional conference in Cairo, stated, “Changes in temperature, rainfall and climatic extremes will only add to the stress on agricultural resources in a region where land availability and degradation, food price shocks and population growth are already a major concern.” Click on the following links for more information:
Link between Bluetongue Virus and Climate Change A current outbreak of bluetongue has developed into one of the most widespread epidemics in cattle and sheep in Europe in modern times. In just a few years the disease has spread from Africa and the Middle East to large parts of Europe, including Denmark. The disease spreads with great speed every summer. In 2007 more than 50,000 farms were infected in Western Europe and when the outbreak was at its peak, one German farm was infected every 10 minutes. The spread of bluetongue to northern Europe may be an effect of global warming and climate change. Bluetongue is an insect-borne viral disease. The primary host is sheep, but it can also infect cattle, goats and deer. Sheep mortality is up to 50 percent of the infected herd. In 2004 the cost to the United States was estimated at $125 million per year due to lost trade and animal testing. There is no specific treatment for the virus. It is not a significant threat to humans. Click on the following links for more information:
54 US Investors File Climate Resolutions On March 6, leading US investors announced that they have filed a record 54 global warming shareholder resolutions with US companies that face far-reaching business impacts from climate change. Many of these investors are part of the Investor Network on Climate Risk, an alliance of 60 institutional investors with collective assets totaling more than $5 trillion. The resolutions are nearly double the number filed just two years ago, and were filed with companies in eight industries including Chevron, ExxonMobil, ConocoPhillips, Citigroup, Ford Motor, General Motors, Dynegy, Massey Energy, Southwest Airlines, US Airways and Standard Pacific. Jack Ehnes, chief executive officer at the California State Teachers’ Retirement System (CalSTRS)--the nation's second largest public pension fund--said, "Scientific consensus of the potentially destructive impacts of climate change on the global economy is clearer than ever. Companies in every industry, especially energy sectors, should be acting now to assess and mitigate climate change risks." Fourteen of the 54 resolutions were withdrawn by investors after the companies agreed to disclose potential impacts from emerging climate regulations and strategies for reducing greenhouse gas emissions. Click on the following links for more information:
Department of Agriculture Suspends Rural Coal-Plant Loans The federal government is suspending a major loan program for coal-fired power plants in rural communities, saying the uncertainties of climate change and rising construction costs make the loans too risky. After issuing $1.3 billion in loans for new plant construction since 2001, none will be issued this year and likely none in 2009, said James Newby, assistant administrator for the Rural Utilities Service, a branch of the Department of Agriculture. The program’s suspension marks a dramatic reversal of a once-reliable source of new coal-plant financing. Newby said material and labor costs for new coal plants have been rising at 30 percent a year, even as utilities struggle to pinpoint future costs of controlling greenhouse gas emissions. At least one developer is hoping to wait out the suspension of the loan program rather than seek more expensive loans on the open market. Two more projects already are seeking private funding. Click on the following link for more information:
Climate Action and Green Jobs Bill Passes Washington Legislature On March 5, the Washington State Legislature committed Washington to reducing greenhouse gas emissions and investing in "green economy jobs." Governor Chris Gregoire is expected to sign the Climate Action and Green Jobs bill (HB 2815), which the Senate approved 29-19. The bill establishes overall state limits for emissions of global warming pollution, while authorizing job training programs to prepare the state’s workforce for the rapidly growing clean energy economy. Transportation is the largest source of greenhouse gases in Washington. The legislation calls for miles-traveled reductions of 18 percent by 2020, 30 percent by 2035, and 50 percent by 2050. “It is critical that we provide real mobility alternatives and find ways to give people reliable, common-sense choices to drive less. The transportation section of this bill takes the first steps in developing those kinds of strategies,” said Genesee Cooper Adkins of Transportation Choices Coalition. Proposed House and Senate budgets include up to $1.58 million for state agencies to begin putting many aspects of the legislation into action. Click on the following links for more information:
AFL-CIO Issues Statement on Climate Change and Green Jobs On March 4, at its semi-annual meeting in San Diego, the AFL-CIO Executive Council issued a statement on "Greening the Economy: A Climate Change and Jobs Strategy That Works for All." The statement said, in part, "It is time for our nation to take bold steps to meet the 21st century challenges related to climate change. . . The world is looking to the United States for leadership because we are the most energy-intensive nation in the world and one of its leading emitters of greenhouse gas. . . The AFL-CIO supports a new industrial policy, an environmental economic development policy, which places manufacturing and trade at the center of a green economy program. . . The investment portfolio supported by the AFL-CIO—carbon capture and sequestration technology (CCS), domestic production of advanced technology vehicles, renewable energy and biomass, electric grid modernization, relief for low- and moderate-income families and more—has been well received. . . There is also an enormous potential for energy savings and good jobs in making our economy more energy-efficient. One important step would be to modernize and extend the 160,000 miles of high transmission lines that make up the electrical grid. This will increase energy efficiency by an estimated 20 percent and provide new, smart access for renewable energy projects. . .The uncertainties of the open-ended Bali Action Plan make it essential that Congress enact balanced job-friendly and technology-friendly national climate legislation that will define our commitments before the 2009 Copenhagen UN meeting to set new carbon emission protocols." Click on the following link for more information:
OECD: World Must Act on Climate Change Now On March 5, the Organization for Economic Cooperation and Development (OECD) released the 520-page OECD Environmental Outlook to 2030 (EO). The Outlook says that without new policies, we risk irreversibly damaging the environment and the natural resource base needed to support economic growth and well-being, and finds the costs of policy inaction are high. OECD secretary-general Angel Gurría said, “Without new policies, global greenhouse gas emissions are projected to increase by over 50 percent to 2050. This could cause the global temperature to rise above pre-industrial levels by a range of 1.7-2.4°C by 2050.” But the Outlook states that tackling the key environmental problems we face today -- including climate change, biodiversity loss, water scarcity and the health impacts of pollution -- is both achievable and affordable. The report shows that, by combining specific policy actions (the EO policy package), some of the key environmental challenges can be addressed at a cost of just over 1 percent of world GDP in 2030. This would slow world economic growth by about 0.3 percent a year, meaning that by 2030 the world economy would grow by 97 percent rather than by 99 percent if no action is taken to protect the environment. Under this scenario, by 2030 growth in greenhouse gas emissions would be contained to 13 percent rather than 37 percent. More ambitious policy action than the EO policy package would be needed to stabilize greenhouse gas concentrations at the levels being considered in international discussions. Another simulation was run of policies needed to stabilize atmospheric concentration at 450ppm CO2eq, one of the most ambitious targets being discussed. The simulation shows that to reach this target, actions by all countries are needed to achieve a 39 percent reduction in global greenhouse gas emissions by 2050 relative to 2000 levels. Such action would reduce GDP by 0.5 percent and 2.5 percent below baseline estimates in 2030 and 2050 respectively. Click on the following links for more information:
Climate Benefits of 2007 Energy Bill Quantified On March 4, the Senate Committee on Energy and Natural Resources heard testimony from Guy Caruso, Administrator of DOE's Energy Information Administration (EIA), on the reference case included in the Annual Energy Outlook 2008 (AEO2008) that analyzes the impact of the Energy Independence and Security Act of 2007 (EISA). Energy-related emissions of CO2 are forecast to grow by 25 percent from 2006-2030, down from pre-EISA’s prediction of a 35 percent increase. EIA projects that EISA will save 5.3 billion metric tons in energy-related CO2 emissions from 2008-2030, the equivalent of the amount that would be emitted by 71 500-MW coal plants over that time period. Carbon dioxide emissions from energy use in the AEO2008 reference case increase from 5,890 million metric tons in 2006 to 6,859 million metric tons in 2030, an average annual increase of 0.6 percent. The energy-related carbon dioxide emissions intensity of the US economy falls from 520 metric tons per million dollars of GDP in 2006 to 339 metric tons per million dollars of GDP in 2030, an average decline of 1.8 percent per year. Increases in carbon dioxide emissions primarily result from a continued reliance on coal for electricity generation and on petroleum fuels in the transportation sector. Click on the following links for more information:
Maryland Weakens Proposed Climate Bill On February 29, the Maryland administration proposed weakening a bill aimed at reducing global warming pollution after Maryland industries warned the legislation could put them out of business. Instead of requiring a 90 percent cut in greenhouse gases statewide by 2050, an amended version of the bill would set this as a goal. "The Maryland Department of the Environment will institute the planning process to get to the 2050 goal but we want to clarify that the bill does not require a straight out 90 percent reduction," Maryland Environment Secretary Shari Wilson told a hearing of two House of Delegates. The Global Warming Solutions Act (SB 309) would continue to require an average 25 percent cut in emissions from all businesses and homes by 2020. Click on the following links for more information:
House Holds Hearing on Climate Legislation and Competitiveness On March 5, the House Committee on Energy and Commerce Subcommittee on Energy and Air Quality held a hearing on the second climate change White Paper put out by the Committee entitled, "Climate Change: Competitiveness Concerns and Prospects for Engaging Developing Countries." Chairman John Dingell (D-MI) said that he looked forward to working with Subcommittee Chair Rick Boucher (D-VA) and other members of the Subcommittee in drafting legislation limiting US emissions of greenhouse gases through an economy wide cap-and-trade system. Dingell said, "The bill should include provisions to induce developing countries to limit their emissions growth on a timetable that meets both environmental and trade competitiveness concerns. The bill must be crafted in a manner that is reasonably certain to withstand a challenge before the World Trade Organization (WTO), which realistically we must expect to be filed; and we must be clear eyed in understanding that success in any such WTO proceeding is not assured; and to craft the legislation so that, in that event, the risks to the U.S. economy are acceptable." David Doniger, Climate Center Policy Director, Natural Resources Defense Council, testified that "All major emitters must participate, but the world’s richest countries – with the highest per capita and historical emissions and the most technological and financial resources – must lead by starting to reduce emissions now and by 80 percent by 2050. . . Congress can address legitimate competitiveness concerns in the early years by allocating allowances or auction revenues to specific industries that demonstrate their disadvantage because of domestic carbon control requirements. This can be accomplished with less than 10 percent of all allowances, and should be conditioned on maintaining domestic employment, and phased out in 2020." Click on the following links for more information: Quick Links SUBSCRIBE to our newsletters and other products ARCHIVE: Past issues of the newsletter are posted on our website under "publications" SUPPORT EESI: This newsletter and EESI's other valuable work in energy, climate change, agriculture, transportation and smart growth are made possible through financial support from people like you. Please donate now.
Fredric Beck This EESI publication is a free, weekly electronic newsletter intended to inform interested parties, particularly the policymaker community, of the latest climate change-related news. Permission for reproduction of this newsletter is granted provided that EESI is properly acknowledged as the source. The Environmental and Energy Study Institute is a non-profit organization established in 1984 by a bipartisan, bicameral group of members of Congress to provide timely information on energy and environmental policy issues to policymakers and stakeholders and develop innovative policy solutions that set us on a cleaner, more secure and sustainable energy path. |
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