Download Region 5 Clean Energy and Climate Strategy

U.S. Climate Policy
Melissa Hulting
U.S. EPA Region 5
Summer Teacher Institute on
Climate Change
University of Chicago
June 25, 2008
Overview


Reminder of What We Know about
Climate Change (courtesy of the
IPCC)
What are the sources of GHG
emissions?




Current Emissions Inventories
Mandatory Reporting Rule
How is EPA helping to slowing the
growth in emissions?
Legislative/regulatory issues
Intergovernmental Panel on Climate
Change (IPCC)




Established by UN Environment Programme
and World Meteorological Organization in
1998
Scientific, technical, socioeconomic
information
No new research; only peer reviewed
studies
Significant Contributions from U.S.
Government Scientists


U.S. Climate Change Science Program responsible
for coordinating research across agencies
21 "Synthesis and Assessment Products" on key
climate science issues
Intergovernmental Panel on Climate
Change: We are warming the planet.




Greenhouse gases and
temperatures are rising;
warming of climate system
is considered
“unequivocal”
Human activities have
induced most of the
warming over the past 50
years (over 90%
certainty)
Better modeling has
enhanced confidence in
impacts statements and
future climate projections
A range of stabilization
levels can be achieved by
deploying a portfolio of
current and future
technologies
Impacts
Climate Changes
Temperature
Sea Level Rise
Health Impacts
Ecosystems
Precipitation
• Weather-related deaths
• Infectious diseases
• Air quality - respiratory
illnesses
• Loss of habitat and
diversity
• Species range shifts
• Ecosystem services
Forest Impacts
Water Resources
Agriculture
Crop yields
• Irrigation demand
• Pest management
•
• Geographic range
• Health, composition, and
productivity
•
•Changes in precipitation,
water quality, and
water supply
Coastal Areas
• Erosion and inundation
of coastal lands
• Costs of protecting
vulnerable lands
Greenhouse Gas Inventory



EPA Updates Greenhouse Gas Emissions Inventory
Annually
Based on estimates derived from fuel use data,
sector-wide economic activity
No current requirement for individual source
reporting


New Inventory Released for 1990-2006




Mandatory reporting rule being developed
14.7 % increase 1990 to 2006
1.1% decrease from 2005 to 2006
Inventory convention: “CO2 Equivalents”
http://www.epa.gov/climatechange/emissions/
usinventoryreport.html
Reference: Inventory of U.S. Greenhouse Gas Emissions and Sinks:
1990-2006, USEPA #430-R-08-005
USEPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2006
Electricity Production and Transportation
are tops in U.S. GHG Emissions, but…….
33%
28%
19%
7.5%
5.5%
5%
With electricity distributed to its end use, the
importance of buildings becomes clear.
29%
28%
17%
17%
8.4%
USEPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2006
Source: USEPA (http://www.epa.gov/climatechange/emissions/globalghg.html),
based on Carbon Dioxide Information Analysis Center
Mandatory GHG Reporting Rule




Development required by FY2008
Consolidated Appropriations Act
EPA must publish draft rule within by
September 2008 and final rule by June 2009
Rule must “require mandatory reporting of
greenhouse gas emissions above appropriate
thresholds in all sectors of the economy…”
Greenhouse Gases Covered: CO2, CH4, N2O,
HFC, PFC, SF6
How will emissions be reported?

Both upstream and downstream sources
included



Upstream: fossil fuel and chemical producers
and importers
Downstream: direct emitters - large industrial
facilities
To be Determined:






Who reports: facilities or corporations?
Emissions Threshold
Frequency of Reporting
Include electricity use in emissions threshold?
Include agriculture and land use?
Approach for mobile sources?
Building the Rule

Regulation will build on methods from
existing mandatory and voluntary reporting
systems





Federal Permits, Climate Leaders
State Programs
Corporate Programs
Industry Protocols
Have existing ways to collect inventory data for
other pollutants (submission systems, databases,
etc.)
Key Elements of
U.S. Climate Change Policy




Slowing the growth of emissions
 Contribute to President Bush’s goal of 18%
reduction in GHG intensity between 2002
and 2012
 President Bush has stated goal to slow
growth in emissions and begin to reduce
emissions after 2025
Expanding scientific and technical research
Enhancing international cooperation
Agencies: EPA, NOAA/NWS, DOE, USDA,
DOT, HHS, NPS, FWS…..everybody.
EPA’s Role

Near-term: EPA Voluntary Programs



Partnering with companies, governments, communities,
and organizations to achieve cost-effective emissions
reductions through technologies and best management
practices
Improving fuel economy and expanding alternative fuel
use (while considering impacts)
Expanding scientific research into key uncertainties
 EPA: Examine impacts of climate change on air,
water, and ecosystems and potential implications for
core programs



Impacts on ozone, water quality
Expanding technology research that will lead to
reductions in the longer-term
Enhancing international cooperation
Looking at our emissions inventory,
what are our options?

33% from Electricity Production





Renewable Energy: Solar, Wind,
Geothermal, Tidal, Hydro, Biomass
Nuclear Generation
More Efficient Production of Energy
Using Fossil Fuels (i.e. Combined Heat
and Power)
Carbon Capture and Sequestration
from power plants
Decrease demand through energy
efficiency
More options……

28% from Transportation




Green Development (promoting more walkable
communities)
Changing modes of transit (trains, bikes, etc.)
Increased fuel economy, new vehicle technologies
Cross-sector (Industry, Residential,
Commercial)




More efficient use of materials; improved waste
management
Energy Efficiency (vehicles, buildings/homes,
industry)
Water Conservation, Recycling, Reuse
Carbon Sequestration in Soils, Natural Areas,
through agricultural practices, ecosystem
protection
Voluntary Partnerships
Related to GHG Reduction
ENERGY STAR helps governments,
businesses, and consumers switch to
energy efficient products and practices.



Three main components: (1) Residential Programs—
new homes and home improvement; (2) Commercial
and Industrial Programs; (3) Qualified Products
Americans saved $14 billion on energy bills while
preventing the equivalent annual emissions of 25
million vehicles in 2006—one third of EPA’s total GHG
reductions
More than 65% of Americans recognize the ENERGY
STAR label
You can take the Energy Star challenge
at your school.




Set at least 10%
reduction goal
Benchmark and take
action to improve
Help spread the word
about energy
efficiency
www.energystar.gov/
challenge
Clean Energy Partnerships

Green Power Partnership




Helps partners purchase of environmentally friendly
electricity products generated from renewable
energy sources, on-site or off
More than 850 partners are purchasing more than
13 million MWh of green power annually
Green Power Locator:
Combined Heat and Power (CHP) Partnership


Provides technical assistance to meet CHP project
needs and make investments in CHP more
attractive.
Assisted in the development of more than 3,500
MW of new capacity since 2001, 232 partners
Methane Partnerships


Methane (CH4): primary component
of natural gas; 23 times the global
warming potential of CO2
U.S. partnerships help industry
capture and/or use methane as a
clean energy source



Profit-making opportunity
Cost-effective option to secure energy
supply, stabilize costs, reduce GHGs
EPA contributed to an 11% absolute
reduction in U.S. methane
emissions since 1990, as the
economy grew 55%
High-Global Warming Potential Gases
Partnerships
Sectors: Aluminum, Magnesium, Semiconductors,
Electric Power, Mobile Air Conditioning, and HFC
producers
Industry goals through EPA partnerships:




Mobile Air Conditioning Partnership – Reduce HFCs
50% and improve fuel-efficiency by 30%
World Semiconductor Council - PFCs 10% below 1995
by 2010
International Aluminium Institute - PFCs 80% below
1990 by 2010
International Magnesium Association – Phase out SF6
by 2010.



Climate Leaders works with companies to develop
long-term, comprehensive GHG-management
strategies
Effective strategies road-tested with ~150 partners
from every major business sector, representing:

9% U.S. Gross Domestic Product

8% of total annual U.S. GHG emissions
Three components of a credible strategy
 Complete Corporate-Wide GHG Inventories
 Develop Inventory Management Plan (IMP)
 Set Aggressive Corporate-Wide GHG-Reduction
Goal
The Company We Keep
Climate Leaders Successes







Increased energy efficiency in buildings
(HVAC, lighting projects, etc.)
Improved efficiency of fleets (logistics,
aerodynamics, mpg)
Renewable energy installations
Greening of supply chains
Reduce manufacturing waste
Water conservation
Cost savings
The Climate and Waste Connection

Recycling and Reducing waste decreases
greenhouse gas emissions by:





Saving energy by manufacturing with recycled
material
It takes energy to extract and process raw
materials
Reducing methane emissions from landfills
Reducing paper usage and waste increases
carbon storage in forest and soil
WasteWise program: Helps partners set
recycling and waste reduction goals,
quantify GHG benefits (WARM model),
free helpline and assistance


Partners with freight industry sectors to
improve fuel efficiency and reduce GHG
emissions from transport
Main components:



Idle reduction
Increasing the efficiency and use of rail and
intermodal operations
Work with banks and other organizations to
develop financing options that help partners
purchase devices that save fuel and reduce
emissions.
U.S. Climate Change
Technology Program (CCTP)
Six Working Groups:
1) Reduce emissions from energy use
2) Reduce emissions from energy supply
3) Capture/sequester CO2
4) Reduce emissions of non-CO2 GHGs
5) Improve capabilities to measure and
monitor GHG emissions
6) Bolster contributions of basic science to
technology development
http://www.climatetechnology.gov

Annual investment of more than $5 billion in
climate-change research, technology, and
tax incentives
International Activities

Negotiations under the United Nations Framework
Convention on Climate Change (UNFCCC)


Major Economies meetings on Energy Security and
Climate Change



Committed to developing a global post-2012 framework
President Bush Initiative, started May 2007
17 countries participating
International partnerships:





Asia-Pacific Partnership on Clean Development and
Climate
Methane to Markets Partnership
Capacity building (e.g., IES and GHG Inventories)
Carbon Sequestration Leadership Forum
Intergovernmental Panel on Climate Change
Energy Independence and Security Act of
2007



Increases average fuel economy standard to 35 miles
per gallon in 2020 for new cars and trucks
Increases Renewable Fuels Standard: requires 9
billion gallons of renewable fuels (ethanol, biodiesel,
etc.) in 2008, increasing to 36 billion gallons by 2022
Requires EPA to report every three years on benefits
and impacts of biofuels




Lifecycle assessments
Strengthened energy efficiency standards for
appliances
Authorizes research on geologic sequestration,
biofuels, and other renewable energy sources
Creates an Energy Efficiency and Renewable Energy
Worker Training Program
Biofuels

EISA mandates





Requires EPA to develop new Renewable Fuel Standard to
achieve goal of expanding biofuels to 36 billion gallons by
2022
Requires lifecycle assessments of different fuel types and
blends compared to petroleum fuel
Must report every 3 years on environmental impacts, including
on water quality and land use
Biofuels Strategy
Interagency Biomass R&D board (DOE and USDA co-chairs)
Regulation Under the Clean Air Act:
Massachusetts v. EPA


Petitioners asked EPA to regulate GHG emissions
from vehicles under section 202 of the Clean Air
Act
Supreme Court Decision-- 2 Key Holdings:
Greenhouse gases are “air pollutants”
“Because greenhouse gases fit well within the Clean Air
Act’s capacious definition of ‘air pollutant,’ we hold that
EPA has the statutory authority to regulate the
emission of such gases from new motor vehicles.”

Agency must consider “Endangerment”
The Agency must pursuant to CAA Section 202(a): (1)
Make a positive endangerment finding; (2) Make a
negative endangerment finding; or (3) offer a
“reasonable explanation as to why it cannot or will not”
make a positive or negative endangerment finding.
Potential Issues Created
by an Endangerment Finding

Possible Implications:



Ambient air quality standards for
greenhouse gases
Control and permitting requirements for
many currently unregulated sources
 Threshold for regulating new sources:
250 pounds of emissions/year
 Average annual CO2 emissions from small
residential gas furnace: ~1500 pounds
Is the Clean Air Act the Right Vehicle
for Greenhouse Gas Regulation?
EPA Seeking Comment on Possible
“Endangerment” Finding

EPA will first seek comment through an “Advance Notice of
Proposed Rulemaking,” before a regulatory proposal and final
regulation. Administrator Johnson’s Letter of March 27, 2008:
Advance Notice of Proposed
Rulemaking (ANPR)

Provide public with the opportunity to
provide information and comment on:




Best available science on effects of GHGs
relevant to making an endangerment finding
Issues and questions related to endangerment
and vehicle standards
Additional CAA regulation that vehicle
standards could automatically trigger – mobile
and stationary sources
Overall approach for potentially addressing
GHG emissions under the Clean Air Act.
Region 5 Roles

Assist Headquarters in promoting voluntary
partnerships in the Midwest







Call on companies located in the Region to join Climate
Leaders
Energy Star challenge to local governments
Collaborate with R5 States, NGOs
Continued regulatory and technical support for
carbon capture and sequestration
Educate our employees and the public about climate
change and reducing their carbon footprint
Reduce municipal, industrial, construction waste
Integrate climate change considerations into core
programs (Supplemental Environmental Projects,
NEPA reviews, etc.)
http://www.epa.gov/solar/energyresources/calculator.html
Resources







www.epa.gov/climatechange
http://www.epa.gov/climatechange/wycd/s
chool.html
http://www.epa.gov/climatechange/news_li
stservs.html
http://www.eere.energy.gov
http://www.eere.energy.gov/education/less
onplans/
http://www.noaa.gov/climate.html
http://www.buildgreenschools.org/
Melissa’s parting thoughts.

Even if you don’t believe in climate change, fossil
fuels aren’t going to last forever, and it takes money
and work to make fossil fuel combustion cleaner.


We are living in energy-inefficient houses, driving
inefficient cars, etc.



Develop renewables
Being more efficient saves money.
People are good at developing new technologies (with
the right incentives).
Climate change policy is rapidly developing.

Policies under development



Respond to Mass. vs. EPA (GHG ANPR)
Mandatory GHG Reporting rule
Future climate change/GHG legislation