Archive for the ‘Regulation’ Category

Today the Union of Concerned Scientists (UCS) released a fantastic study finding that the EPA’s proposed Clean Power Plan underestimates how much progress we can make on renewable energy. The agency could nearly double the amount of renewables in its carbon-reduction targets for states, from 12 percent of 2030 electric generation to 23 percent. The UCS analysis isn’t just wishful thinking. It’s based on the actual pace of renewables growth in the recent past, as well as state laws in place that require particular increases in renewables. As the National Wildlife Federation points out in its comment on the UCS study, the EPA’s targets for renewables fall short of what the U.S. Energy Information Agency projects will happen under a business-as-usual scenario. Why do less, when we can do much more?

The best news in the study is that by raising the targets for renewables, EPA can dramatically boost the efficacy of the Clean Power Plan overall. Rather than reduce carbon emissions just 30 percent from 2005  levels by 2030, the Plan could achieve a 40 percent reduction. That’s because the Plan works primarily by replacing coal with another fossil fuel — natural gas. If we go further and replace some of that natural gas with renewables (and reduce the need for electricity with energy efficiency measures), we can make much more significant, sustainable reductions in carbon emissions.

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A fossil-fuel-industry front group that calls itself the “60 Plus Association” has released a “study” claiming that the EPA’s proposal to curb carbon pollution, known as the Clean Power Plan, would raise utility costs for seniors. Don’t buy it.

The group relies on a sleight-of-hand to make its claim: It cites only the EPA’s projection that electricity prices will increase under its rule (Clean Power Plan Regulatory Impact Analysis (RIA) Table 3-21) while ignoring the projection, just a few pages later in the very same document, that electricity bills will actually decline. The rule includes efficiency measures that will result in consumers using significantly less power. (RIA Table 3-24). So raw electricity prices will go up a bit, but we will use less power—and pay less overall.

Also, 60 Plus looks only at the agency’s analysis for 2020, rather than its longer-term projections. What happens in the long term is obviously more important. It’s also much more favorable.

Here is a chart that shows projected electricity prices and bills under one of two main scenarios that the EPA analyzes:

Projected Retail Electricity Prices Under EPA’s Option 1, State Compliance Scenario Projected Change in Utility Bills
Cents/kWh Without Rule Cents/kWh Under Rule Percent Change
2020 10.4 11.1 6.5% 3.2%
2025 10.8 11.1 2.9% -5.3%
2030 10.9 11.3 3.1% -8.4%
Source: RIA Tables 3-21, 3-22, 3-23, 3-24.

 

60 Plus points out that electricity prices will rise 6.5 percent in 2020, but it ignores that actual bills will rise by less than half that (3.2 percent) in 2020 and will decline 5.3 percent by 2025 and 8.4 percent by 2030. The numbers are even more favorable under the EPA’s other major scenario, in which states band together and comply in regional groups rather than comply separately. There, bills would fall by 8.7 percent by 2030. (RIA Table 3-24).

Media outlets should ignore this kind of junk from 60 Plus. But at least one local TV station was duped by this release. WDBJ 7 in Virginia not only reported the study, but misreported in just the way 60 Plus wants: by saying it shows that electricity bills will increase under the EPA plan.

Let’s hope no one else picks it up.

It’s been a big week for climate change. Here’s a roundup of the news in case you’ve had trouble keeping up:

Yesterday, UN Secretary General Ban Ki-moon hosted a UN Summit on climate change in New York, convening leaders in government, business, finance and civil society to “galvanize and catalyze climate action.” The idea was that world leaders would announce major new initiatives. To some extent it was a success, although it didn’t prompt major announcements from the U.S. or China, the 800-pound carbon emitters in the room.

President Barack Obama spoke at the summit, urging aggressive action, particularly from China. He announced an executive order requiring federal agencies to “factor climate resilience” into foreign aid and development decisions. Regarding major actions on climate change, he simply referred to the EPA’s proposed rule to curb carbon emissions 30 percent from 2005 levels by 2030, which Public Citizen strongly supports and seeks to strengthen. He also noted that the U.S. is on target to meet its pledge to cut emissions 17 percent from 2005 levels by 2020. For its part, China said it would try to peak its carbon emissions “as early as possible.”

Just last week, the U.S. made two other announcements:

  • The Department of Energy proposed a rule that would require hotels to use more efficient heating and cooling equipment. The rule could reduce carbon emissions by 11.29 metric tons, which is like taking 2.3 million cars off the road. It’s also another example of how climate change policy makes good economic sense. DOE estimates that the rule would cost businesses up to $9.39 million per year but save them up to $13.1 million per in energy costs. Those benefits are in addition to $7.2 million annual savings from reduced carbon emissions.
  • The White House announced that it secured voluntary commitments from some large chemical manufacturers and retailers to phase out hydrofluorocarbons, or HFCs, more quickly than the law requires. This is an important development, as HFCs are 10,000 times more potent than carbon dioxide in causing climate change.

There were several other important developments around the summit as well:

  • The Global Commission on the Economy and Climate issued a blockbuster report concluding that stopping climate change might not cost us anything. The crux of the analysis: Over the next 15 years, we’ll spend $90 trillion on new infrastructure world-wide anyway. Ambitious measures to combat climate change would add just 5% to that figure. When you factor in the benefits – like better public health from reduce air pollution – the measures will likely be net-positive for the economy.
  • New York City announced a major plan to increase the energy efficiency of buildings, which will set the city on target to curb its greenhouse gas emissions by 80 percent by 2050 from 2005 levels. That’s the reduction that the UN has said industrialized countries must make to prevent catastrophic climate change.
  • The World Bank announced that 73 countries, 22 states, and over 1,000 businesses have pledged support for putting a price on carbon. The list includes the European Union and China, but not the U.S. It doesn’t provide any specifics on what anyone will do. Nor is it legally binding. But it’s a start.
  • The Rockefeller Brothers Fund, originally launched with Standard Oil money, led 180 institutions and hundreds of individuals in announcing that they will divest $50 billion in assets from fossil fuels.
  • Over 340 institutional investors worldwide that control at least $34 trillion in assets called on governments to put a price on carbon.
  • Google announced that it would sever ties with the American Legislative Exchange Council (ALEC) because of the group’s opposition to sound climate change policy. “Everyone understands climate change is occurring and the people who oppose it are really hurting our children and our grandchildren and making the world a much worse place,” Google Executive Chairman Eric Schmidt said. “And so we should not be aligned with such people — they’re just, they’re just literally lying.” Public Citizen pointed out that by the same reasoning, Google should leave the U.S. Chamber of Commerce as well. Facebook soon announced that it too was leaving ALEC.

Ahead of the UN Summit, over 300,000 – and possibly as many as 400,000 – people joined the People’s Climate March in New York City. It was the largest climate demonstration in history, shattering the organizers’ goal of 100,000 participants. In addition to the march in New York, activists held 2,808 other events in 166 countries.

We also learned some bad news last week:

  • The Global Carbon Project reported that greenhouse emissions grew by 2.3 percent in 2013, demonstrating that we still have a long way to go in fighting climate change. We need to start moving in the opposite direction, quickly.
  • This past August was the hottest in recorded history. May and June also set new records, and April tied the record set in 2010.

So we have our work cut out for us. But we can solve this problem – and evidence is mounting that stopping climate change will benefit consumers and the economy, not hurt us. We just need to convince our governments to act. You can start by telling the EPA that you support its proposal to curb carbon pollution from existing power plants.

Congressmembers on both sides of the aisle yesterday joined forces to pass the so-called “Jobs for America Act” (H.R. 4).

In the vote, 221 Republicans and 32 Democrats matched the absurd anti-regulatory rhetoric of the U.S. Chamber of Commerce and other Big Business groups with absurd anti-regulatory policy. The bill contains provisions designed to stifle, stall, shrink and stop safeguards the public relies on and includes the text of familiar deregulatory bills like the Regulatory Accountability Act and the REINS Act (which the House already has voted on). If enacted, H.R. 4 represents a green light allowing reckless corporations to do simply whatever they want with as little oversight as possible.

Big Business groups have been making hyperbolic claims about regulations killing jobs – and the inverse claim that gutting regulation will create jobs – for decades. The predictions never come true.

Consider the following examples from Public Citizen’s recent report:

  • 1974: The Occupational Safety and Health Administration bans the carcinogen, vinyl chloride. The plastics industry claimed that the OSHA regulation would kill 2.2 million jobs. Those claims were proven completely false. A new way to manufacture vinyl chloride was developed within a year without any jobs lost.
  • 1975: The National Highway Traffic Safety Administration increases the fuel efficiency standard. Industry reports warned that 1.5 million jobs would be lost. By 1985, automakers had met the higher standard without losing any jobs.
  • 1990: The Environmental Protection Agency sets new pollution standards under the Clean Air Act. Business Groups responded with doomsday hysterics, claiming up to 2 million jobs would be lost. Those were proven entirely wrong. Instead, according to the Investor’s Business Daily, “Pollution has been falling across the board for decades, even while the nation’s population and economy have expanded.”
  • 1995: EPA removes lead from gasoline. Monsanto claimed 43 million jobs would be killed. The removal of lead is now considered one of the biggest public health success stories while gas prices did not dramatically increase and no jobs were lost.

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The Permanent Subcommittee on Investigations has weighed in on the progress the Internal Revenue Service (IRS) has made after last years’ “scandal,” and the majority is advocating bright line rules for political activity for nonprofits.

Committee members criticized the current facts and circumstances test and called for its replacement, lending their voice to the many nonprofits and citizens that have been calling for a bright-line definition of political activity applicable to all nonprofits. Such a rule would make it easier for nonprofits to engage in our democracy without fear of jeopardizing their nonprofit status.

“The facts and circumstances test used by the IRS was criticized as difficult to administer by every IRS official interviewed,” says the report.  It goes on to say that the test “produced subjective and inconsistent decisions on applications.”

The minority staff filed a separate report, and did not discuss the facts and circumstances test or provide recommendations for the future. The full report is available here.

The IRS is currently engaged in a rulemaking that could provide the sort of easily administered definition the report – and Public Citizen’s Bright Lines Project – calls for. A new draft of the rules is expected early next year.

Emily Peterson-Cassin is the Bright Lines Project Coordinator for Public Citizen’s Congress Watch division

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