Editor’s Note: Experts are available in Michigan and Washington, D.C. to discuss this analysis
New analysis of Michigan’s power sector shows that the state can meet – and possibly even exceed – national carbon pollution standards that will be established by the U.S. Environmental Protection Agency (EPA). EPA is expected to announce emissions standards for new power plants later this month and additional standards for existing power plants in 2014.
As the U.S. Environmental Protection Agency (EPA) moves forward with standards to reduce emissions from existing power plants—expected to be proposed by June 2014—many states are beginning to think about how they will comply. WRI’s fact sheet series, Power Sector Opportunities for Reducing Carbon Dioxide Emissions, examines the policies and pathways various states can use to cost-effectively meet or even exceed future power plant emissions standards. This post explores these opportunities in Michigan. Read about additional analyses in this series.
New analysis by WRI reveals that Michigan has already made big strides to reduce its carbon dioxide emissions, including saving energy and increasing renewable power. And, it has the potential to go even further. According to our research, Michigan can reduce its power sector carbon dioxide (CO2) emissions 33 percent below 2011 levels by 2020 by complying with existing policies and improving infrastructure already in place. Taking these actions now can help the state meet future EPA emissions standards for existing power plants and achieve significant economic benefits.
WRI analysis finds that North Carolina can reduce its CO2 emissions 29 percent below 2011 levels by 2020 using existing state policies and infrastructure opportunities. These reductions would meet or exceed relatively stringent EPA standards for existing power plants.
President Obama announced a national climate plan in June 2013, directing the U.S. Environmental Protection Agency (EPA) to set carbon pollution standards for the power sector. Once EPA establishes those standards, states will implement their own plans for achieving those reductions.
In January 2010, two WRI-recommended features were incorporated into the U.S. Environmental Protection Agency’s (USEPA) regulations for implementing the new Renewable Fuel Standard (RFS). These regulatory features will help minimize the negative impacts of biofuels by ensuring comprehensive accounting of their lifecycle greenhouse gas (GHG) emissions.
The 2007 expansion of the RFS program required the EPA to set lifecycle GHG threshold standards to ensure that biofuels being used to meet the RFS emit fewer greenhouse gases than the petroleum fuel they replace. The framework the EPA would develop to calculate the GHG emissions factors of biofuels was critical. A framework that was less than comprehensive could end up creating incentives for U.S. biofuels that would actually lead to more GHG emissions than the traditional fossil-based fuels they replace. Two accounting factors were particularly important:
How to account for carbon dioxide emissions that occur in the future. WRI recommended applying a zero discount rate over a shorter time horizon, rather than the more popular proposal of a two percent discount rate over a 100 year time horizon. Our recommendation was more consistent with prior research and would minimize the risk of artificially inflating the emissions reductions benefits of bio-fuels.
Whether or not to include the emissions associated with indirect land-use changes. For example, a shift from soybean to corn farming in Iowa to make ethanol can result in a ripple effect that drives land conversion for soya in the Brazilian Cerrado. This land conversion may result in significant emissions of carbon dioxide. The uncertainty of indirect land use impacts does not render them insignificant. WRI recommended that emissions associated with global indirect land-use changes be included in the framework, along with approaches for refining the estimates as the science improves.
EPA adopted both our recommendations. In particular, the adoption of an accounting methodology that accounts for the emissions associated with global indirect land use impacts of domestic policy sets a precedent that has significant implications well beyond the biofuels sector.
WRI was the pioneering voice on the zero discount rate. WRI’s Biofuels and the Time Value of Carbon was the first and, to the best of our knowledge, only publication to address the issue of how to choose a discount rate for physical carbon in the context of biofuels accounting. WRI’s Liz Marshall was selected as one of five professional peer reviewers for the time parameters portion of the RFS rule. WRI’s perspective on indirects, set forth in Biofuels, Carbon, and Land-use Change and Rules for Fuels, also provided the analytical foundation for advocacy NGOs during the course of this debate.
Research by the World Resources Institute has found that cuts in upstream
methane leakage from natural gas systems are among the most important steps the U.S. can take
toward meeting our greenhouse gas (GHG) emissions reduction goals by 2020 and beyond.
The U.S. Environmental Protection Agency (EPA) recently released its annual greenhouse gas (GHG) inventory report. Using new data and information, the EPA lowered its estimate of fugitive methane emissions from natural gas development by 33 percent, from 10.3 million metric tons (MMT) in 2010 to 6.9 MMT in 2011. While such a reduction, if confirmed by measurement data, would undeniably be a welcome development, it doesn’t mean that the problem is solved.
Here are five big reasons we should care about fugitive methane emissions:
1) Emissions Are Still Too High.
Methane is a potent greenhouse gas and a key driver of global warming. Methane is 25 times stronger than carbon dioxide over a 100-year time period and 72 times stronger over a 20-year period. In fact, 6.9 MMt of methane is equivalent in impact to 172 MMt of CO2 over a 100-year time horizon. That’s greater than all the direct and indirect GHG emissions from iron and steel, cement, and aluminum manufacturing combined. Reducing methane emissions is an essential step toward reducing U.S. greenhouse gas emissions and slowing the rate of global warming.
The rapid expansion of unconventional natural gas development has reshaped the U.S. energy picture through increased production and reduced prices of natural gas. The shale gas production boom has also ignited divisive debates over its near- and long-term environmental impacts.