Posts Tagged ‘ Steven Chu ’

Tip-Toeing Around The Elephant: US Mitigation And The COP

Monday, December 13th, 2010
Nathan Richardson



Nathan Richardson is a visiting scholar at Resources for the Future. The views expressed here are his own.

by Nathan Richardson

The US was in an awkward position in Cancun. The administration clearly wanted to show leadership, but it was hamstrung by an inability to deliver legislation with any tangible commitments. Since that seemed unlikely to change in the new Congress, US negotiators were left playing defense on the key issue — mitigation.

This makes movement in other areas (such as finance and forests) difficult, though that is in part due to US insistence on parallel, rather than serial, treatment of issues.

The result was sometimes bizarre diplomatic displays by the US, such as Energy Secretary Steven Chu’s address — essentially a remedial crash course in climate science. Secretary Chu did not take questions, one suspects because it would have been difficult to answer the obvious one — how does the US plan to meet the President’s 17%-cuts-by-2020 goal articulated last year?

Difficult, but not impossible. The awkward position in which US officials find themselves and the effects it has on US credibility and capability make the administration’s continued avoidance of serious public discussion of EPA carbon regulations puzzling. Research at RFF and elsewhere indicates that EPA regulations, either on the books already or likely in the near future, could achieve emissions reductions in the range of the President’s goal.

I’ve studied these regulations over the past year or so, and I’ve been repeatedly surprised by their likely impact. Vehicle fuel economy standards, new power plant permitting rules, and whatever the agency decides to do for existing sources can each make a significant emissions impact. Perhaps more interestingly, coming EPA regulations ostensibly aimed at other pollutants could have a big impact on carbon by pushing a substantial portion of coal plants into retirement, and replacing them with cleaner technology.

It’s not clear why the US administration and negotiators didn’t trumpeting these regulations as evidence of a commitment to cut emissions. It’s possible it is felt that a regulatory approach won’t be understood or taken seriously by the international community, but EPA regulations are far from the only complex issue on the table (just ask your local climate finance expert for a quick summary if you suspect otherwise). And other countries are undoubtedly familiar with a regulatory approach — for many it is their preferred domestic environmental policy. One thing is certain, though — the best way to ensure that the international community (and the American public) fails to understand or appreciate the EPA’s capabilities is for the administration and its negotiators to refuse to explain them.

Another possibility is that the administration worries that hyping EPA’s powers is politically dangerous. The agency is more effective, this argument goes, if it can operate quietly and at its own pace. To put it more directly, to speak of regulation is to destroy it — perhaps because Congress would respond by seeking to cripple the agency.

But the President should not forget that his party still controls the Senate, and that he still wields the veto pen. Even if the President resigned himself to giving up EPA powers (or delaying them) as part of a compromise, it would surely be in his interest to say how strong these powers are, thus increasing their value in any bargain.

Moreover, the argument that regulatory emissions cuts are more effective if kept quiet contradicts what is arguably the central dogma of US foreign climate policy — that US action is valuable not for its small contribution to global goals, but as a tool for unlocking negotiations and prompting action elsewhere. If US negotiators can’t or won’t talk about the best policy tool the US currently has, they can’t do their jobs. This makes the long term likelihood of a meaningful international agreement much smaller.

EPA regulation is not the first, best option for US climate policy; it is above all likely to be more costly over the long run than a pricing mechanism. But neither this admission, nor the fact that EPA regulations are legally required, are good reasons not to forcefully and frequently articulate their emissions benefits. Perhaps we as a country should be embarrassed that we cannot adopt a national climate policy that more closely approaches the ideal in terms of both costs and benefits. But the administration should not let any embarrassment about what the country cannot currently do prevent them from talking about what it can.

As my colleague Dallas Burtraw pointed out in his talk here this week, US credibility on climate requires that the administration be a lot bolder — not by making new commitments that it lacks the domestic powers to back up, but simply by publicly, loudly, and clearly saying what it can and will do with the tools it already has.

This article is cross-posted at Weathervane

Earth Day at 40: Can Obama Outperform Nixon?

Thursday, April 22nd, 2010
Danny Morris



Danny Morris is a research associate for the Center for Climate and Electricity Policy at Resources for the Future. The views expressed here are his own.

Nathan Richardson



Nathan Richardson is a visiting scholar at Resources for the Future. The views expressed here are his own.

by Danny Morris and Nathan Richardson

Today is the 40th anniversary of Earth Day, the first of which took place in 1970 at the beginning of the golden age of environmental legislation in the United States. It’s a telling statement that in the past four decades, the most successful environmental record belongs to Richard Nixon.

Our most disgraced president looks rather hippie-esque when you look at the achievements that passed during his administration: the National Environmental Policy Act, the Clean Air Act, the Clean Water Act, the Marine Mammals Act, the Safe Drinking Water Act and the Endangered Species Act all became law under his watch, and he established the Environmental Protection Agency (EPA) soon after Earth Day One.

Since then, environmental policy has often meandered from favored conservative punching bag to a second-tier issue. President Barack Obama has a chance to cement a similar environmental legacy by acting on climate, energy and natural conservation legislation. How has he done so far? In his first term in office, President Obama has achieved notable environmental progress by simply not being President Bush.

Following arguably the most anti-environment administration since the 1970s, almost anyone would shine in comparison. Like on many other fronts, Obama does not lack for ambition. He included energy as one of his three top priorities during the 2008 campaign and has signaled that it will be getting his attention very soon. That being said, the Obama administration has not yet established an impressive or even cohesive environmental record. Many of the president’s actions have been piecemeal, either addressing specific policy problems or cleaning some of the messes left over from the previous eight years. He has yet to achieve a stout victory on the environmental front, but it has only been one year. He still has time to work.

Below is a list of the top five environmental actions that occurred in the first year of the Obama administration – and five other items on which he needs to do more work:

The Accomplishments

  • Endangerment finding: This finding, which said that carbon dioxide is a pollutant that endangers human health, gave the EPA authority to regulate it under the Clean Air Act. This is the most significant step toward reducing greenhouse gas emissions the U.S. government has yet taken.
  • CAFE standards: The EPA increased average fuel economy standards for cars and trucks in the U.S. fleet to be 35 mpg in 2020, the first increase since 1990. The regulation is estimated to reduce greenhouse gas emissions by 960 million metric tons by 2030.
  • The stimulus package: The American Reinvestment and Recovery Act channeled $8 billion toward energy projects, mainly focusing on renewables and energy efficiency. It included another $6 billion in water and wastewater projects.
  • Copenhagen: Simply put, international climate negotiations would have collapsed were it not for the direct personal involvement of the president. He was instrumental in getting almost every country in attendance to commit to two-degree temperature rise targets, helped get important concessions from China on emissions monitoring and established long-term financing ($100 billion annually by 2020, $20 billion for the U.S.) for international adaptation efforts.
  • Executive appointments: Lisa Jackson at EPA. Steven Chu at Department of Energy. Nancy Sutley at Council on Environmental Quality. Ken Salazar at Department of Interior. John Holdren at the White House Office of Science and Technology Policy. Jane Lubchenco at National Oceanic and Atmospheric Administration. Carol Browner as special adviser to the president on energy and climate change issues. These are all smart, competent, committed people who will help the president shape effective environmental policies over the course of his administration.

So what can Obama do for the environment in 2010 and the second half of his term? Here are just a few things:

The To-Do List

  • Climate: Above all, the president should push Congress hard to pass legislation that controls greenhouse gases by setting a price on carbon. The president already has a climate bill, Waxman-Markey, that had passed the House last year and was ready to go to the Senate. Instead of pushing this bill, he and the Senate leadership chose to focus on health care. That process consumed the heart of this Congress’ legislative calendar and much of its political energy. While that choice was understandable, it leaves action on climate and energy as the largest unfulfilled element of the president’s legislative agenda.Debates on climate appear set to start again in the Senate with the release of a new bill next week. The president should push the debate forward, hopefully resulting in a new law that sets economy-wide greenhouse gas controls before the November elections. This is admittedly an ambitious goal. If it proves impossible, Obama should dedicate as much energy in the second half of his term to climate as he did to health care in the first.
  • Air pollution: With so much focus on climate, traditional forms of pollution haven’t drawn much attention. Conventional pollutants like sulfur dioxide, nitrous oxides, mercury and ozone still pose significant health risks, and economists believe reducing emissions of these pollutants would result in substantial net benefits to the economy in life expectancy and quality of life. The EPA’s recent attempts to tighten regulations on these pollutants (both of which, it must be said, were authored by the Bush EPA) were struck down by courts. The Obama EPA should renew efforts to regulate these pollutants by issuing new versions of these rules (called CAIR and CAMR) as soon as possible. The president should throw his support behind proposed “3-pollutant” legislation on the Hill that would remove the legal barriers to stricter regulation of these pollutants, and follow that legislation up with action from the EPA. (More on that bill in a later post.)
  • Nuclear waste storage: The president has thrown his support behind nuclear power with $8 billion in loan guarantees for two new plants in Georgia. Regardless of your opinion of nuclear power as an energy source, you have to admit the storage of waste poses quite a problem. The president eliminated Yucca Mountain, the long-controversial water repository in Nevada, without proposing a specific alternative. He organized a blue-ribbon panel to look into solutions to the nuclear waste problem, and the commission is supposed to issue its recommendations sometime next year. They have their work cut out for them.
  • Environmental foreign policy: The president should also consider making environmental issues a more central part of his foreign policy. Whether it’s pushing China, India, Russia and others to agree to global cuts in carbon emissions, or calling Japan out for its cynical efforts to avoid limits on bluefin tuna fishing, ample opportunities exist for advancing U.S. environmental interests internationally and re-establishing our position as the global leader on environmental policy innovation. The president has made a good start in this area, but he can do more.
  • Future environmental dangers: Finally, the president can move beyond environmental issues that have been neglected in the past to examining possible future environmental risks. Many such risks, such as pollution of water with pharmaceuticals and the environmental impacts of nanotechnology, aren’t sufficiently understood. Government also lacks the tools to deal with these issues even if they are identified as dangers. The president should dedicate resources to investigating these and other future risks, and push Congress to give the EPA authority to regulate them when supported by the science. These are the kinds of forward-looking reforms that Nixon pursued, and which could give Obama an enduring environmental legacy.

Success on these fronts — and above all on climate — would not only fulfill President Obama’s environmental promises, but would put him in contention as the most environmentally successful president since Nixon, and likely ever.

Energy Realism and Hype

Friday, April 9th, 2010
Roger Ballentine



Roger Ballentine is a PPI senior fellow and founder and president of Green Strategies, Inc.

Will Marshall



Will Marshall is the president of the Progressive Policy Institute.

by Roger Ballentine and Will Marshall

Thanks to new drilling techniques, U.S. natural gas reserves may have doubled, Energy Secretary Steven Chu announced this week. “That’s a big deal because it will be a transition fuel as we go to renewables,” Chu said at a conference hosted by the U.S. Energy Information Administration.

Chu’s emphasis on natural gas as a bridge fuel, together with President Obama’s decisions to allow offshore drilling and expand loan guarantees for building nuclear power plants, attest to a new realism in U.S. energy policy. The Obama administration is trying to move the deadlocked energy debate beyond a false choice between fossil and renewable fuels. For now, America needs more of both.

This “no fuel left behind” approach also lays the groundwork for bipartisan cooperation on capping carbon emissions. If Republicans say “no” to things they’ve long demanded, namely more nuclear power and offshore drilling, as part of a comprehensive climate bill, it will be another sign that they are unwilling to help solve the country’s biggest problems.

Some environmentalists (including, apparently, Al Gore) are chagrined over Obama’s support for offshore drilling, which they see as a concession to the “drill, baby, drill” right.  So let’s be clear: offshore production in U.S. waters will not lead us to “energy independence,” nor will it lower prices at the pump. Our share of the world’s oil reserves — even if much more is aggressively produced — is still not large enough to move global oil prices. This would be the case even if there was a truly competitive and free global petroleum market. But the global oil market is not free and competitive — it is dominated by low-cost producers in the Persian Gulf, who are aligned in a cartel and could easily counteract any downward price influence from an increase in U.S. supply. The only way that U.S. oil could directly and dramatically lead to low U.S. gas prices would be for us to adopt the Venezuelan model: nationalize the industry, close the borders, and grossly subsidize the industry. Not gonna happen.

Nonetheless, modest expansions of domestically produced oil would yield modest benefits. Estimates range from a low of 39 billion barrels of recoverable oil to a high of 63 billion barrels. “If ramped up quickly enough, that could overcome the underlying decline rate of current U.S. output and add significant net production for a decade or two, at a time when competition for the oil we are currently importing is likely to be fiercest,” writes energy consultant Geoffrey Styles.

In addition to marginally reducing our reliance on foreign imports, offshore drilling would create U.S. jobs and lower our massive energy trade deficit. These benefits shouldn’t be exaggerated, but they certainly aren’t negligible. Further, to the extent that our offshore development leads to large and cost-effective finds of natural gas, that is almost certainly a good thing since unlike oil, gas is not as subject to global price pressures or oligopolistic manipulation as is oil. Moreover, to really reduce our greenhouse gas emissions, the United States will have to substitute baseload gas for baseload coal on a large scale and abundant gas developed in an environmentally acceptable fashion (more likely to apply to offshore development than to much of the contemplated onshore development of “unconventional” sources) is a key to that goal.

What about the environmental risks of drilling? Without question, the history of petroleum development and delivery is rife with calamities. The decades-old Santa Barbara spills are still seared into the minds of many and, of course, the Exxon Valdez has not – and should not – soon leave our collective memories. But the former was decades ago and the latter is a compelling argument for even stronger protections in the transportation of petroleum. The next Exxon Valdez could be carrying oil from onshore or offshore sources. But the technology and regulation of offshore production has greatly improved since Santa Barbara, and while one could compellingly argue for even more protections, the fact is that offshore development is much less risky than ever before.

Finally, Obama has deftly maneuvered his political opponents into a tight corner. The White House understands that the paramount goal of energy policy should be to price carbon. That goal is unlikely to be achieved in Congress as long as conservatives continue to fantasize over a supply-side panacea that will lead American to a golden age of “energy independence” and “lower prices at the pump.” This is an energy policy of abdication and isolationism. By taking a balanced approach, Obama has challenged conservatives to take “yes” for an answer — or show that they really don’t believe in their alleged “alternative” path to energy security.