Monday, June 2, 2014

Coal Rules: Ten Things You Should Know

The much-anticipated EPA rules on emissions from coal-fired power plants were released today. The rules call for an average 30 percent reduction in CO2 emissions from coal (against a 2005 base line) by 2030. The action has been variously described as Obama going around Congress (it's no such thing: agency rule-setting is part and parcel of the powers of the executive branch), America providing leadership in the battle against climate change (belated to say the least - 24 years after Kyoto), and a hit to the US economy (if you want to call accounting for the true cost of coal a hit to the economy, you may be unaware of (or ignoring) the damage to come from global warming - measured in the trillions). The new rules are bound to attract lawsuits from industry groups - even though two Supreme Court decisions (Massachusetts vs. EPA in 2007 and American Electric Power vs. Connecticut in 2011) clearly give the EPA the right to regulate greenhouse gases.

As we await the lawsuits and the ongoing cries of pain from climate-change-deniers, here are 10 facts about coal, the environment, and the new law.

1. Pound for pound, coal is the largest producer of carbon dioxide of any fossil fuel. When burned, coal produces about 60% more CO2 per unit of energy than gasoline and more than double the CO2 of that produced by methane (natural gas). And that is before the efficiency of energy production for the various fuels is taken into account. (Since coal-fired plants provide 40% of the electricity in the US, you may want to mention this to your friends who drive 100% electric cars.)

2. World carbon dioxide emissions rose to a record 36 billion metric tons in 2013. This is a 2.1 percent gain versus 2012 and a 61 percent increase since 1990, the baseline year for the U.N.'s Kyoto Protocol, the only global agreement that places binding limits on national CO2 emission levels. [1]

3. Carbon dioxide levels throughout the northern hemisphere hit 400 parts per million (ppm) for the first time in human history in April. Prior to the industrial revolution, atmospheric carbon dioxide was 280 ppm.

4. Releasing nearly 7 billion metric tons annually, the United States is the second largest producer of CO2. Only China with its heavy reliance on coal and its 1.3 billion plus population produces more. The US emits nearly 20% of the world's total human-caused CO2. [3]

5. Power plants and vehicles are the two biggest sources of this pollution in the United States, accounting for about 38 and 31 percent of carbon emissions, respectively. [2]

6. Domestic coal-fired plants produced 1.45 billion metric tons of CO2 in 2012, according to Environmental Protection Agency data, equal to about 305 million cars. [2]

7. Sixty-three percent of US coal plants are at least 40 years old.

8. Will it be effective? The middle range of projections from the Natural Resources Defense Council (NRDC) is a reduction of 544 million metric tons by 2020, equivalent to taking about 114 million cars off the road. [2]

9. How will the rule be implemented? The EPA will finalize its proposal in mid-2015. After that, the EPA will give states a year to design their implementation plans. It will let states meet emission targets for power plants several ways, including through plant upgrades, switching from coal to natural gas, or by improving energy efficiency or promoting renewable energy “outside the fence,” meaning outside the plant site. Each state has its own specific target.  West Virginia, for example, must reduce the pollution it puts out per amount of power by 19 percent compared to the rate in 2012.  The approach will give each state flexibility for meeting its specific target. [4,5]


10. What about China? At the November 2013 Warsaw Conference on climate change, China reiterated its commitment to achieve a target of reducing CO2 emissions per unit of GDP by 40 to 45 percent by 2020 from the 2005 levels.  China is also introducing a set of new taxation policies designed to "preserve the environment", including a tax on carbon dioxide emissions. [6,7]

Hopefully, the new rules can be implemented without too much economic dislocation. The timing is clearly a gamble - it could cost Democrats the Senate in November. But the costs of continuing to not doing anything are great.  Paraphrasing the President, we don't want to give our children and grandchildren a world that it is too late to fix.  



References

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