This commentary, authored by John Finnigan, originally appeared on EDF's Energy Exchange blog.

Source: ENR New York

The Wall Street Journal recently reported that electricity prices in West Texas skyrocketed over 20% this year.  West Texas is home to the Permian basin, one of the world’s largest oilfields, and energy producers use hydraulic fracturing, or “fracking,” here to unlock vast new oil and gas supplies.  The increased drilling, oil refining and natural gas processing uses large amounts of electricity.

Cheaper electricity supplies are available, but cannot be delivered to West Texas due to transmission bottlenecks, or “congestion.”  The only power that can be delivered is from older coal plants.  This leads to transmission “congestion” charges (i.e., higher energy supply costs caused by the transmission bottlenecks), which commercial and industrial consumers must pay as a surcharge on their monthly electricity bills.  Using these older coal plants leads to more pollution as well because these plants burn fuel less efficiently and have higher levels of toxic air emissions.

The typical solution is to build new transmission lines to access cheaper electricity supplies.  But a better and cheaper approach is to pay consumers for voluntarily reducing their electricity usage when energy supplies are tight.  Known as “demand response,” this solution:

• creates a new market where consumers can respond to wholesale electricity price signals by deciding whether to use higher-priced energy or to be paid for voluntarily reducing their usage;
• defers investment in new fossil fuel power plants and costly transmission upgrades;
• lowers electricity prices for all consumers, not just those who are paid for voluntarily reducing their usage; and
• keeps our air cleaner and preserves our scarce water supplies by running older, dirtier coal plants less often.

“Everything is bigger in Texas,” but not demand response.  Although it has more potential demand response than any other state, Texas has actually implemented only a small amount of demand response – which is used to avert rolling blackouts during electric emergency conditions.  Other regions of the country use demand response to much greater advantage.  Voluntary demand response programs in PJM, the electricity market in the northeast, have paid consumers nearly $2 billion in demand reduction revenues since 2007.

Demand response would lower electricity prices not only for West Texas but throughout the state.  Electricity prices are a function of supply and demand.  Texas tries to maintain adequate electricity supplies through an “energy-only” wholesale market, which procures electricity supplies in real-time with no long-term planning.  Texas is the only region in the U.S. using this method.  Other regions ensure adequate electricity supplies by using either administrative mandates or an energy market combined with a “capacity market” (a market-based approach using long-term planning).

Texas has inadequate electricity supplies (the “energy crunch”) to meet projected electricity demand plus a healthy safety margin.  Texans learned this lesson the hard way when consumers experienced rolling blackouts during a cold snap in February 2011 and the extreme heat and drought in July and August 2011.  The Electricity Reliability Council of Texas (ERCOT), which runs the Texas wholesale electricity market, hired The Brattle Group to study how to ensure adequate electricity supplies.  Brattle advised ERCOT that energy supplies could be increased by, among other things, re-designing the market to enable much higher levels of demand response.  This could be done by implementing a capacity market, such as the forward capacity market used in PJM or the new and innovative “flexible capacity” market under consideration in California.

ERCOT can relieve high West Texas energy prices and assure adequate electricity supplies for the state as a whole by enabling much higher levels of demand response.   Let’s bring the Lone Star State a new market-based solution where Texans, as a whole, can earn billions of dollars in payments for voluntarily managing their electricity use.  As part of the bargain, we’ll also get adequate electricity supplies, lower electricity prices, cleaner air and better water management

By John Finnigan

Source: ENR New York

The Wall Street Journal recently reported that electricity prices in West Texas skyrocketed over 20% this year.  West Texas is home to the Permian basin, one of the world’s largest oilfields, and energy producers use hydraulic fracturing, or “fracking,” here to unlock vast new oil and gas supplies.  The increased drilling, oil refining and natural gas processing uses large amounts of electricity.

Cheaper electricity supplies are available, but cannot be delivered to West Texas due to transmission bottlenecks, or “congestion.”  The only power that can be delivered is from older coal plants.  This leads to transmission “congestion” charges (i.e., higher energy supply costs caused by the transmission bottlenecks), which commercial and industrial consumers must pay as a surcharge on their monthly electricity bills.  Using these older coal plants leads to more pollution as well because these plants burn fuel less efficiently and have higher levels of toxic air emissions.

The typical solution is to build new transmission lines to access cheaper electricity supplies.  But a better and cheaper approach is to pay consumers for voluntarily reducing their electricity usage when energy supplies are tight.  Known as “demand response,” this solution:

• creates a new market where consumers can respond to wholesale electricity price signals by deciding whether to use higher-priced energy or to be paid for voluntarily reducing their usage;
• defers investment in new fossil fuel power plants and costly transmission upgrades;
• lowers electricity prices for all consumers, not just those who are paid for voluntarily reducing their usage; and
• keeps our air cleaner and preserves our scarce water supplies by running older, dirtier coal plants less often.

“Everything is bigger in Texas,” but not demand response.  Although it has more potential demand response than any other state, Texas has actually implemented only a small amount of demand response – which is used to avert rolling blackouts during electric emergency conditions.  Other regions of the country use demand response to much greater advantage.  Voluntary demand response programs in PJM, the electricity market in the northeast, have paid consumers nearly $2 billion in demand reduction revenues since 2007.

Demand response would lower electricity prices not only for West Texas but throughout the state.  Electricity prices are a function of supply and demand.  Texas tries to maintain adequate electricity supplies through an “energy-only” wholesale market, which procures electricity supplies in real-time with no long-term planning.  Texas is the only region in the U.S. using this method.  Other regions ensure adequate electricity supplies by using either administrative mandates or an energy market combined with a “capacity market” (a market-based approach using long-term planning).

Texas has inadequate electricity supplies (the “energy crunch”) to meet projected electricity demand plus a healthy safety margin.  Texans learned this lesson the hard way when consumers experienced rolling blackouts during a cold snap in February 2011 and the extreme heat and drought in July and August 2011.  The Electricity Reliability Council of Texas (ERCOT), which runs the Texas wholesale electricity market, hired The Brattle Group to study how to ensure adequate electricity supplies.  Brattle advised ERCOT that energy supplies could be increased by, among other things, re-designing the market to enable much higher levels of demand response.  This could be done by implementing a capacity market, such as the forward capacity market used in PJM or the new and innovative “flexible capacity” market under consideration in California.

ERCOT can relieve high West Texas energy prices and assure adequate electricity supplies for the state as a whole by enabling much higher levels of demand response.   Let’s bring the Lone Star State a new market-based solution where Texans, as a whole, can earn billions of dollars in payments for voluntarily managing their electricity use.  As part of the bargain, we’ll also get adequate electricity supplies, lower electricity prices, cleaner air and better water management.

Louisiana's Disappearing Islands
The Weather Channel. July 31, 2013.
"A string of uninhabited islands in the Gulf of Mexico have gone from teeming with wildlife to nearly non-existent thanks to constant pummeling from tropical systems, and according to some scientists, climate change is making matters far worse.  Restoration efforts on the books to save the Chandeleur Islands, a 50-mile trail of atolls just off…" (Read more).

Coastal restoration underway near Myrtle Grove in Plaquemines Parish
By Amy Wold. The Advocate (Baton Rouge, La.). July 31, 2013.
"MYRTLE GROVE — What the Mississippi River used to do naturally in flooding its banks and depositing sediment in the marsh areas of south Louisiana is now being done in a more concentrated way.  Just south of Myrtle Grove in Plaquemines Parish, sediment is being dredged from the Mississippi River and transported by pipe…" (Read more).

Environmental groups support levee board’s oil and gas lawsuit
The Advocate New Orleans Bureau (Baton Rouge, La.). July, 31, 2013.
"Representatives from several local environmental groups on Tuesday spoke out in support of a lawsuit filed last week by levee board commissioners alleging about 100 oil and gas companies owe billions to restore coastal wetlands.  The suit, filed last week by the Southeast Louisiana Flood Protection Authority – East, contends that the oil…" (Read more).

Swamp Thing: Lawsuit Blaming Oil Companies For Wetland Loss Might As Well Blame The Plaintiff
By Daniel Fisher. Forbes. July 30, 2013.
"The multibillion-dollar lawsuit that Louisiana plaintiff lawyers launched against the oil industry last week is based upon a compelling theory: In their century-long quest for oil and gas, drillers helped destroy the state’s protective wetlands by digging a network of canals that introduced “corrosive salt water” into the delicate ecosystem…" (Read more).

Shirking Responsibility in the Gulf
Opinion by Stephen Teague. The New York Times. July 30, 2013.
"BILOXI, Miss. — IF you don’t live near the Gulf Coast, you may have the impression that the area has fully recovered from the BP Deepwater Horizon oil spill in 2010, the largest environmental disaster in American history. Sadly, that’s not the case for tens of thousands of gulf residents still trying to put their lives back together…" (Read more).

Charter fishing is seeing a rebound, boat captains say
By Chance Ryan. Houma Courier (Houma, La.). July 30, 2013.
"Local boat captains say charter fishing is showing signs of improvement after the 2010 Deepwater Horizon BP oil spill.  Many charter boat captains saw fewer customers as a result of the spill, but they say the recovery has arrived — for now.  Marty LaCoste, of Absolute Fishing Charters in Dularge, said this is the best year he's ever had…" (Read more).

Lawsuits enrich lawyers, but can one save Louisiana's coast?
Opinion by James Varney. The Times-Picayune (New Orleans, La.). July 30, 2013.
"There is a scene in the movie 'Liar Liar' in which the great Jim Carrey, stretching to play a smarmy California lawyer, convinces Jennifer Tilley she should divorce her husband and mulct him for substantial money. All she and the law firm would be seeking, he insists, is a sum she has earned.  "And just a little bit more," Carrey adds in a quick, transparently false finish…" (Read more).

Relief drilling expected to take 35 days
By The Associated Press. July 30, 2013.
"NEW ORLEANS (AP) – Crews are expected to begin drilling a relief well Thursday at the site of a gas well that blew wild July 23 off the Louisiana coast but eventually was choked off by sand and sediment.  The federal Bureau of Safety and Environmental Enforcement said the Rowan EXL-3 rig has been moved to the site, about 55 miles southwest…" (Read more).

BP Sees No Quick Settlement in Oil Spill Case; Latest Cost Estimate at $42.4B
By Andrew Callus. Insurance Journal. July 30, 2013.
"BP is digging in for a long legal battle over the Gulf of Mexico oil spill, Chief Executive Bob Dudley said on Tuesday after compensation costs soared for a second straight quarter. The payouts, the scale of which BP is disputing even though they are one part of the case that was settled last year, have been the focus of attention in recent…" (Read more).

BP CEO hits out at class action lawsuits
CNBC. July 30, 2013.
Class action lawsuits like the ones BP is facing in the U.S. are a "business model" that serve only to benefit attorneys, the chief executive of BP told CNBC. "The biggest beneficiaries that I can see broadly are plaintiffs' attorneys themselves…” (Read more).

Natural Barriers Are What Prevent Coastal Cities From Being Destroyed
By Sydney Brownstone. Co.Exist Blog. 
"Before industrial pollution began mucking up our waterways, New York City used to be surrounded by hundreds of millions of oysters clinging to peripheral reefs. The Florida Keys, meanwhile, had a wealth of coral–until it declined by 44% in the late ‘90s. East of New Orleans, canal dredging and construction destroyed…" (Read more).

 

By Marcelo Norsworthy

Recent years have seen significant changes in the global freight and supply chain system. An expanded Panama Canal, significant population growth in the South and Southeast, and new infrastructure and system resiliency demands pose a challenge to our aging freight transportation system. It is crucial for researchers, policy makers and practitioners to work together and prioritize research to overcome these new challenges. Fortunately, the National Research Council’s Transportation Research Board (TRB) is working with stakeholders, including EDF, to advance critical research efforts that will help modernize the global transportation system.

Earlier this month, TRB reviewed ongoing research for marine and freight transportation. In doing so, TRB also established priorities for future studies, with an overarching goal to “promote innovation and progress in transportation.” EDF will partner with TRB to champion innovative research and facilitate a transition to cleaner and more efficient marine and freight transportation choices going forward.

Texas faces many pressing transportation issues of its own. Record traffic growth, rapid expansion at the Port of Houston, booming population growth across the state, and a flurry of oil and gas drilling activity all pose unique infrastructure and air quality challenges to the Lone Star State.

A key transportation challenge faced by Texas is congestion at its U.S.-Mexico border crossings. Emissions from idling trucks at crowded border crossings have brought air pollution concerns in border cities such as El Paso and Laredo.  The Texas Department of Transportation is collaborating with the Texas A&M Transportation Institute to develop a tool to help streamline border crossings. The Border Crossing Information System provides drivers, carriers and other stakeholders with real-time and historical information about border crossing wait-times and delays. The data make it easy for truck drivers to understand congestion patterns, thereby reducing vehicle idling and harmful air emissions.

(Source: Texas Public Radio)

In addition to its numerous busy border crossings with Mexico, Texas is also home to many bustling marine ports such as the Port of Houston. Ports are home to numerous sources of air pollution. Idling ships, cargo-handling equipment, and large trucks all put out emissions that contribute to poor air quality. EDF’s recently published paper, Emissions Reduction Analysis of Voluntary Clean Truck Programs at U.S. Ports, looks at progress made by voluntary truck replacement programs to reduce air pollution. The paper also comments on best practices that have emerged from efforts in Virginia, South Carolina and Texas. These lessons will be extremely valuable as we move forward in the development of an environmental performance metrics system for U.S. ports. One of the key components of this system is a toolkit that will help marine ports and terminal operators improve terminal performance, as well as regional air quality.

In the coming weeks, transportation stakeholders will meet at the Transportation and Infrastructure Summit in Irving, Texas to address current transportation issues including the topics mentioned in this post. EDF will participate as a panelist. We look forward to engaging the transportation community to help improve transportation efficiency, reduce harmful emissions and drive innovation. We applaud TRB for facilitating and promoting new research that will drive Texas and the national freight industry into the future and reduce the environmental impact of our transportation infrastructure.

By EDF Blogs

By: Matt Golden, Senior Energy Finance Consultant, Environmental Defense Fund

New Energy and Loan Performance Data Project Uses Latest in Data Science to Help Capital Markets Engage in Efficiency Lending

Environmental Defense Fund’s Investor Confidence Project (ICP) and the Clean Energy Finance Center (CEFC), in partnership with state and local lending programs, financial organizations and a range of additional stakeholders, are collecting, aggregating and analyzing loan performance and energy savings data from energy efficiency upgrades in residential and commercial buildings.

The Energy and Loan Performance Data Project represents the first concerted effort to combine data from some of the largest US energy efficiency programs in an attempt to develop an actuarially significant dataset to help engage the capital markets.

Nearly 40% of US energy is consumed by both residential and commercial buildings.  Realizing all of the available cost-effective energy efficiency savings would require roughly $279 billion of investment, resulting in more than $1 trillion in energy savings over ten years.  However, currently, only 1% of all US investments are made in energy efficiency projects.  Our goal for this project is to help lay the foundation that will enable organizations to tap into this vast potential market.

Currently energy efficiency investors of all types, including building owners, energy service companies, insurance providers and even utilities, are hampered by an inability to easily and accurately predict loan performance.  This results in high transaction costs, as well as risk premiums, that increase the cost of capital.  One of the main challenges is the small quantity and low quality of data that investors can utilize when evaluating investments in energy efficiency assets.  This lack of data standards and access to large datasets has been cited by a broad range of stakeholders, including capital providers, policy makers, building owners and contractors, as impeding large-scale investment in building retrofits.

In collaboration with the University of Chicago's new Data Science for Social Good fellowship program, EDF and CEFC will identify how stakeholders use loan and project performance data, determine gaps that may exist in the current datasets and deliver high-quality analytics to support the advancement of energy efficiency finance and investment through actuarial data.

Many key stakeholders in the energy efficiency sector support this new project, including the New York State Energy Research and Development Authority (NYSERDA).  NYSERDA’s Treasurer, Jeff Pitken, stated that “making our program loan performance history publicly available and aggregated with history from other programs will lower the cost of capital for these programs and allow more favorable financing terms to be offered to participating consumers.”

Beyond loan performance, the project also seeks to provide the ability to analyze performance risks.  This will allow investors to realize more predictable returns, which will lead to more lending at better rates.  Performance prediction is especially important for innovative energy financing models, such as On-Bill Repayment and Energy Service Agreements, and better analysis will enable the widespread adoption of these structures.  From an operations perspective, better data analysis offers the ability to continuously improve project commissioning – thus leading to increased energy savings.

The Energy and Loan Performance Data Project will be collecting data sets from some of the largest residential and commercial programs across the country.  We will be combining these sources with public sources, such as census data, to provide publicly-available data that we hope will accelerate investments in energy efficiency.  Data will be anonymized and modified to protect privacy, but will include the following elements:

• Loan Repayment Performance
• Underwriting Criteria and Deal Structure
• Project Attributes, Energy Conservation Measures and Predicted Performance
• Energy Performance Data (Realization Rate)

We are inviting energy efficiency and finance organizations with data and/or data expertise to participate in this endeavor (especially those who can contribute significant amounts of data).  The project will adhere to rigorous privacy standards to ensure that no proprietary information will be disclosed to the public.

Please help us make this project a success.  If you have a use for this type of data and analytics, or if you have data to contribute, please take a few moments to let us know how we can help by filling out this brief survey.

This commentary originally appeared on EDF's California Dream 2.0 blog.

By: Kate Daniel, EDF Climate Corps Fellow

Kate Daniel, Climate Corps Fellow

Great news for California and the future of energy efficiency in Sacramento.

Today I took part in an announcement by Sacramento Mayor Kevin Johnson unveiling the nation’s largest Property Assessed Clean Energy (PACE) project in the country — and potentially a huge boost for businesses in the state’s capital.

Launched by Clean Energy Sacramento, the property owners of Metro Center, Metzler Real Estate, will now be able to take advantage of PACE financing to fund $3.1 million in energy efficient upgrades, including high efficiency rooftop units for heating and cooling and a state-of-the-art building management system. Ultimately, these upgrades will save $140,000 in annual utility costs for the property.

This project is not just good news for Metro and Metzler, but for the entire Sacramento region. Here’s how it works: Under the PACE program Metzler will receive private funding from Ygrene Energy Fund, who covers the upfront costs of the project Metzler pays the costs back on their property tax bill while Johnson Controls will design and implement the upgrades.

Why PACE?

For starters, PACE – and other innovative financing mechanisms like on-bill repayment (OBR) – offers several key advantages over traditional energy financing. First, the financing is tied to the property itself, rather than to the owner. This means that if the owner wanted to sell the building, it would not have to pay off the balance of the financing, but rather transfer to the next owner’s property tax bill. By doing this, PACE addresses a key obstacle in commercial real estate markets: frequent ownership turnover where owners are hesitant to make long-term investments.

It also means qualification for the financing is based on the value of the Metro Center property, not Metzler’s credit. Many properties can qualify for PACE financing that would not otherwise be able to obtain the capital necessary for a retrofit. PACE also addresses the biggest barriers to energy efficiency retrofits in commercial buildings. An annual survey by the Institute for Building Efficiency shows that available capital is the most common obstacle to making energy improvements. With PACE financing, the upfront costs of the project are financed externally, and don’t draw from funds that could be used for other projects or investments.

The next most frequently cited barrier to taking on energy efficiency is making a sufficient return on investment. This is where Clean Energy Sacramento’s low-interest rates come into play. Property owners also have the ability to extend the financing as long as 20 years, far longer than most real estate or construction loans. These features of the financing make individual payments lower, so the company can realize the benefits of energy savings immediately.

Lastly, PACE financing can address the split incentive problem, when property owners aren’t motivated to pay the costs of upgrades that save money for their tenants, who pay the utility bills. Under most commercial leases, property owners are able to pass on property taxes to tenants, so the current tenants would make the PACE payments, while still realizing savings on their utility bills.

Clearly, the Metro Center upgrade is a good deal for Metzler and the Center’s tenants, who realize the direct benefits of energy savings and increased property value and comfort.

Fortunately, the City of Sacramento gets why this is important to the rest of us. Energy retrofits keep contractors busy and working. The Metro Center project itself will create 50 jobs in the Sacramento region and upgrades to Metro Center will make the space more appealing for tenants, attracting and retaining businesses in the area – all without spending public dollars.

The Metro Center project is a telling example of just how much a well-executed PACE program can provide for a community. Through my EDF Climate Corps fellowship, I’ll be working to help make these types of projects a reality across the region.

By EDF Blogs

By Kate Daniel, EDF Climate Corps Fellow

Kate Daniel, Climate Corps Fellow

Great news for California and the future of energy efficiency in Sacramento.

Today I took part in an announcement by Sacramento Mayor Kevin Johnson unveiling the nation’s largest Property Assessed Clean Energy (PACE) project in the country — and potentially a huge boost for businesses in the state’s capital.

Launched by Clean Energy Sacramento, the property owners of Metro Center, Metzler Real Estate, will now be able to take advantage of PACE financing to fund $3.1 million in energy efficient upgrades, including high efficiency rooftop units for heating and cooling and a state-of-the-art building management system. Ultimately, these upgrades will save $140,000 in annual utility costs for the property.

This project is not just good news for Metro and Metzler, but for the entire Sacramento region. Here’s how it works: Under the PACE program Metzler will receive private funding from Ygrene Energy Fund, who covers the upfront costs of the project Metzler pays the costs back on their property tax bill while Johnson Controls will design and implement the upgrades.

Why PACE?

For starters, PACE – and other innovative financing mechanisms like on-bill repayment (OBR) – offers several key advantages over traditional energy financing. First, the financing is tied to the property itself, rather than to the owner. This means that if the owner wanted to sell the building, it would not have to pay off the balance of the financing, but rather transfer to the next owner’s property tax bill. By doing this, PACE addresses a key obstacle in commercial real estate markets: frequent ownership turnover where owners are hesitant to make long-term investments.

It also means qualification for the financing is based on the value of the Metro Center property, not Metzler’s credit. Many properties can qualify for PACE financing that would not otherwise be able to obtain the capital necessary for a retrofit. PACE also addresses the biggest barriers to energy efficiency retrofits in commercial buildings. An annual survey by the Institute for Building Efficiency shows that available capital is the most common obstacle to making energy improvements. With PACE financing, the upfront costs of the project are financed externally, and don’t draw from funds that could be used for other projects or investments.

The next most frequently cited barrier to taking on energy efficiency is making a sufficient return on investment. This is where Clean Energy Sacramento’s low-interest rates come into play. Property owners also have the ability to extend the financing as long as 20 years, far longer than most real estate or construction loans. These features of the financing make individual payments lower, so the company can realize the benefits of energy savings immediately.

Lastly, PACE financing can address the split incentive problem, when property owners aren’t motivated to pay the costs of upgrades that save money for their tenants, who pay the utility bills. Under most commercial leases, property owners are able to pass on property taxes to tenants, so the current tenants would make the PACE payments, while still realizing savings on their utility bills.

Clearly, the Metro Center upgrade is a good deal for Metzler and the Center’s tenants, who realize the direct benefits of energy savings and increased property value and comfort.

Fortunately, the City of Sacramento gets why this is important to the rest of us. Energy retrofits keep contractors busy and working. The Metro Center project itself will create 50 jobs in the Sacramento region and upgrades to Metro Center will make the space more appealing for tenants, attracting and retaining businesses in the area – all without spending public dollars.

The Metro Center project is a telling example of just how much a well-executed PACE program can provide for a community. Through my EDF Climate Corps fellowship, I’ll be working to help make these types of projects a reality across the region.

 

Successful fisheries management is dependent upon timely data collection and analysis.  A robust monitoring program will provide data on catch, specify gear use and evaluate bycatch for fishery stakeholders and managers, which in turn, support and improve stock assessments and ensure catch limits are both optimized and sustainable in the long-term.  Monitoring is a necessary [...]

By Elena Craft, PhD

On Friday, the U.S. Court of Appeals for the District of Columbia Circuit dismissed lawsuits filed by Attorney General Greg Abbott and a group of power companies that could have undermined the Clean Air Act and hurt efforts to reduce climate pollution.

The Clean Air Act requires that large sources of pollution, including greenhouse gases (GHGs), obtain permits when they are constructing or making a major change to their facility.  These permits require facilities to use modern emission control technologies to cost-effectively reduce their pollution.

Some states, including Texas, didn’t have the authority to issue these clean air permits for greenhouse gases under their state laws, so the Environmental Protection Agency (EPA) took the limited actions challenged here to ensure that sources in these states could get the permits they needed to begin construction.  Every state – except Texas – worked with EPA to make sure sources could get the permits they needed (either under state or federal authority).

Texas Attorney General Greg Abbott, who has been quoted as saying, “What I really do for fun is I go into the office, [and] I sue the Obama administration,” took the EPA to court over the agency’s efforts to ensure sources in Texas could get the permits they needed to construct.  All of this despite the fact that most facilities in Texas were already working to reduce their emissions and comply with the new federal standards.  On Friday, the D.C. Circuit Court of Appeals reaffirmed that the Clean Air Act unambiguously requires large GHG sources, like coal-fired power plants, to obtain permits.  As a result, the court dismissed Texas’ lawsuit, finding that EPA’s actions didn’t cause Texas any injury.  Much to the contrary, they were necessary to ensure GHG sources could obtain permits that they otherwise could not obtain at all.

Friday’s decision comes as a resounding victory for Texans who care about common-sense actions to address our out-of-control carbon emissions and combat global warming.  Instead of wasting taxpayer dollars to boost its reputation for clashing with the federal government (1.25 million dollars spent so far), Texas should invest in its world-class wind and solar energy resources, and work to maintain its leadership in the implementation of modern grid technologies.  By doing so, we can ensure Texas’ leadership in the new American energy economy and protect Texas communities from the debilitating impacts and soaring costs of the extreme weather linked to climate change.

BP Says Spill Fund Is Running on Fumes
By Selina Williams. The Wall Street Journal. July 30, 2013.
"LONDON—BP BP.LN -3.28% PLC said Tuesday that the $20 billion fund it set up to cover the cost of the Gulf of Mexico oil spill will soon run out, as compensation claims have accelerated despite legal efforts from the company to halt what it claims are excessive payouts…" (Read more).

Lift hold on clients' Gulf oil spill claims payments, law firm urges judge
By Mark Schleifstein. The Times-Picayune (New Orleans, La.). July 29, 2013.
"A New Orleans law firm representing more than 600 individuals and companies with pending BP oil spill economic damage claims has urged the federal judge overseeing the settlement between BP and claimants to remove his hold on their claims, which was put in place…" (Read more).

State requests oil spill fine money for barrier islands, diversions
By Nikki Buskey. Houma Courier (Houma, La.). July 29, 2013
"State officials with the Coastal Protection and Restoration Authority are requesting $68 million in oil fine money for barrier island and river diversion projects in Terrebonne and Lafourche parishes.  The state is requesting the money from the National Fish and Wildlife Foundation…" (Read more).

Louisiana seafood export efforts ramp up
By  Benjamin Alexander-Bloch. The Times-Picayune. July 29, 2013.
"As the effort ramps up to send more Louisiana seafood aboard, metro New Orleans seafood processors, suppliers and fishers are encouraged to attend two free export training seminars inBelle Chasse and Arabi on Tuesday and Wednesday…" (Read more).

Spill Deal’s Big Winners Shouldn’t Be Plaintiffs’ Lawyers
Opinion by Geoff Morrell. The Louisiana Record. July 30, 2013.
"In recent weeks, plaintiffs’ lawyers have published opinion pieces in Gulf Coast newspapers attacking BP for identifying grave problems with the administration of a settlement we reached with them last year.The plaintiffs’ lawyers say the settlement –which is supposed to compensate…" (Read more).

Oil and gas industry must pay for the damage it's caused: Lt. General Russel L. Honore
Opinion Editorial The Times-Picayune. July 29, 2013.
"It's high hurricane season, the time of year when the threat of sudden disaster hangs like a dark and foreboding cloud over the people of southern Louisiana. For me, it's personal. Eight years ago, I flew into New Orleans aboard a Navy aircraft on a blistering August morning, after Hurricane Katrina left 80 percent of the city under as much as 20 feet of water…" (Read more).

Hercules 265 Well Fire: Scientists Test Gulf Of Mexico Water For Pollution
By Stacey Plaisance. Associated Press. July 29, 2013.
"NORTHERN GULF OF MEXICO (AP) — Scientists from several universities are working to learn whether a gas well that blew wild last week off the Louisiana coast is polluting the Gulf of Mexico. Joseph Montoya, a biology professor with Georgia Tech, was performing tests aboard a vessel…" (Read more).

Gulf’s dead zone is smaller than predicted, but still a large problem
By Amy Wold. The Advocate (Baton Rouge, La.). July 29, 2013.
"Measurements and scientific research aside, mud-dwelling crabs and eels swimming at the water’s surface in an attempt to get air was a good indication there are oxygen problems down below in the Gulf of Mexico.  That’s what researchers saw during a research cruise July 21-28 in the Gulf…" (Read more).

2010 Spill: Still a Natural Disaster
By The Weather Channel. July 26, 2013.
"Three years after the largest spill in U.S. history, the National Wildlife Federation says the impacts from the tragic event are 'far from over…'" (Watch video).

 

New analysis shows that carbon credits can play a vital role in helping international aviation achieve carbon-neutral growth New analysis shows that carbon credits can play a vital role in helping international aviation achieve carbon-neutral growth Tue, 2013-07-30 Contact:  James Isola, Cubitt Consulting, +44 20 7367 5116, james.isola@cubitt.com Angus McCrone, Bloomberg New Energy Finance, +44 20 3216 4795, amccrone1@bloomberg.net Jennifer Andreassen, Environmental Defense Fund, +1 202 572 3387, jandreassen@edf.org

London and Washington: Analysis from Bloomberg New Energy Finance and Environmental Defense Fund (EDF) shows that the aviation industry can achieve its goal of carbon-neutral growth from 2020 – and even strengthen that goal considerably – by tapping into the available supply of high-integrity, low-cost carbon credits.

Efforts to control fast-growing carbon pollution from international aviation gained momentum pace last month when the industry urged governments to adopt a mandatory global mechanism to hold its net emissions stable from 2020 onwards – known as “carbon-neutral growth 2020”. Industry called on the International Civil Aviation Organization (ICAO) to agree on a global offset program with strong environmental integrity rules, so aviation’s own emissions cuts, and real emissions cuts in other sectors, could be used to meet aviation’s targets. This new analysis assesses what such a program might cost.

The analysis, Carbon-Neutral Growth for Aviation: At What Price?, first shows that surplus offset credits already available in the world's carbon trading systems (4.4bn tonnes of carbon dioxide in 2020) could, in principle, meet just under 50% of the airlines' potential need for the thirty years between 2020 and 2050. The analysis then finds that if governments adopt tough criteria to ensure offsets represent real emission reductions, the cost of these credits to the aviation industry would be on the order of $4 to $6 per tonne in 2015.

These costs would represent a fraction of a percent (less than 0.5%) of total international airline revenue over this period. For comparison, last year airlines collected more than three times as much (as a share of revenue) from checked bags, extra legroom and in-flight snacks. According to this analysis, in 2030 the program would add less than $2 to a typical one-way fare (e.g., from Paris to New York).

Annie Petsonk, international counsel at Environmental Defense Fund, said: “This analysis demonstrates just how affordable a market-based mechanism can be in limiting carbon emissions. While aviation’s formidable technological ability can help reduce its carbon footprint, our analysis shows the critical role that high-integrity, low-cost reductions in other sectors can play in meeting the industry’s goal of carbon-neutral growth from 2020. As governments in ICAO consider how to address aviation’s contribution to climate change, this should give them the confidence to move ahead with a market-based mechanism for carbon-neutral growth.”

Indeed, the analysis shows that the widespread availability and low cost of carbon credits through a market-based mechanism could enable the industry to take on more ambitious targets.

Guy Turner, chief economist at Bloomberg New Energy Finance, said: “These findings show that the international aviation sector can control its CO2 emissions relatively cheaply by using market based mechanisms. The small cost and the ability to pass any costs through into ticket prices, should encourage the international aviation sector to accelerate and deepen its emission reduction pledges. More ambitious emission reductions now look much more doable, than mere stabilization from 2020.”

The report can be downloaded from http://about.bnef.com/white-papers/carbon-neutral-growth-for-aviation-at-what-price/

For further information:

Guy Turner
Bloomberg New Energy Finance
gturner10@bloomberg.net
+44 780 1140 696

Annie Petsonk
Environmental Defense Fund
apetsonk@edf.org
+1 202 387 3500

About Bloomberg New Energy Finance

Bloomberg New Energy Finance (BNEF) is the definitive source of insight, data and news on the transformation of the energy sector. BNEF has staff of more than 200, based in London, New York, Beijing, Cape Town, Hong Kong, Munich, New Delhi, San Francisco, São Paulo, Singapore, Sydney, Tokyo, Washington D.C., and Zurich.

BNEF Insight Services provide financial, economic and policy analysis in the following industries and markets: wind, solar, bioenergy, geothermal, hydro & marine, gas, nuclear, carbon capture and storage, energy efficiency, digital energy, energy storage, advanced transportation, carbon markets, REC markets, power markets and water. BNEF’s Industry Intelligence Service provides access to the world’s most comprehensive database of assets, investments, companies and equipment in the same sectors. The BNEF News Service is the leading global news service focusing on finance, policy and economics for the same sectors. The group also undertakes custom research on behalf of clients and runs senior-level networking events, including the annual BNEF Summit, the premier event on the future of the energy industry.

New Energy Finance Limited was acquired by Bloomberg L.P. in December 2009, and its services and products are now owned and distributed by Bloomberg Finance L.P., except that Bloomberg L.P. and its subsidiaries distribute these products in Argentina, Bermuda, China, India, Japan, and Korea. For more information on Bloomberg New Energy Finance: http://about.bnef.com.

About Bloomberg

Bloomberg is the world’s most trusted source of information for businesses and professionals. Bloomberg combines innovative technology with unmatched analytic, data, news, display and distribution capabilities, to deliver critical information via the BLOOMBERG PROFESSIONAL® service and Multimedia platforms. Bloomberg's media services cover the world with more than 2,300 news and Multimedia professionals at 146 bureaus in 72 countries. The BLOOMBERG TELEVISION® 24-hour network reaches more than 240 million homes. BLOOMBERG RADIO® services broadcast via Sirius XM Radio and 1worldspace™ satellite radio globally and on WBBR 1130AM in New York. BLOOMBERG MARKETS® magazine, Bloomberg Businessweek magazine and the BLOOMBERG.COM® Web site provide news and insight to business leaders and financial professionals. For more information, please visit http://www.bloomberg.com

The BLOOMBERG PROFESSIONAL service and data products are owned and distributed by Bloomberg Finance L.P. (BFLP) except that Bloomberg L.P. and its subsidiaries (BLP) distribute these products in Argentina, Bermuda, China, India, Japan and Korea. BLOOMBERG, BLOOMBERG NEWS, BLOOMBERG TELEVISION, BLOOMBERG RADIO, BLOOMBERG MARKETS AND BLOOMBERG.COM are trademarks and service marks of Bloomberg Finance L.P., a Delaware limited partnership, or its subsidiaries. All rights reserved.

# # #

Environmental Defense Fund (edf.org), a leading national nonprofit organization, creates transformational solutions to the most serious environmental problems. EDF links science, economics, law and innovative private-sector partnerships. See twitter.com/EnvDefenseFund; facebook.com/EnvDefenseFund; edf.org/ClimateTalks.

Annie Petsonk

By Mordechai Treiger and Will Lindsey, Environmental Defense Fund

Three years after the Macondo oil well was capped off the coast of Louisiana, BP is still making headlines as it works to resolve legal claims stemming from the incident. As legal interns who have spent the past ten weeks working every day on issues related to the oil spill, even we sometimes find BP’s various legal obligations somewhat confusing. So we put together this brief outline to help ourselves keep things straight. We hope you find it helpful, too.

Private economic claims against BP that have been settled

These claims made headlines recently when BP petitioned U.S. District Judge Carl Barbier, who is overseeing the complex multi-district litigation stemming from the spill, to temporarily halt payments out of a court-supervised settlement fund. Barbier denied BP’s request, thereby allowing settlement administrator Patrick Juneau to continue paying out claims to individuals claiming economic losses as a result of the disaster. Juneau is actually the second settlement administrator of private economic claims – Ken Feinberg oversaw an initial $6.3 billion deal with a subclass of private plaintiffs. Even after BP reached agreements with two classes of plaintiffs, there remain unsettled individual claims that are now in trial against BP.

Government claims against BP under the Clean Water Act and private claims that have not yet been settled

BP is currently in court to determine the extent of its liability to the government under the Clean Water Act, which assesses a per-barrel fine for oil spills, and to plaintiffs who declined to participate in either the Feinberg or Juneau settlements. While the first phase of the trial focused on events preceding the Deepwater Horizon oil spill, Phase II – covering the explosion and the subsequent efforts to stop the flow of oil – will be critical in determining the extent of BP’s liability to damaged parties. Specifically, Judge Barbier will be asked to decide whether BP was “grossly negligent” or merely “negligent,” a seemingly-semantic distinction that could spell the difference between a $4.5 billion and $17.6 billion payout. Phase II has been moved back from September 16 to September 30 to give both parties more time to prepare. Barbier can only rule on civil penalties under the Clean Water Act and individual claims that have yet to settle once Phase II is complete.

Natural Resource Trustee claims under the Oil Pollution Act

Under the Natural Resource Damage Assessment provisions of the Oil Pollution Act, BP has a responsibility to restore the Gulf to its natural baseline and to make up for lost ecosystem services. In the immediate aftermath of the spill, BP worked with natural resource trustees to provide $1 billion in funding for Early Restoration projects in recognition of the fact that moving quickly was vital to Gulf restoration. But this amount was merely preliminary, and many billions more are needed to fully rehabilitate the damaged shoreline. BP’s commitment to ecological restoration of the Gulf is completely independent of its liability to coastal businesses and residents and to the government under the Clean Water Act.

By Mandy Warner

Health organizations have made it clear that climate change is a health issue.

American Lung Association has said:

[S]cientists warn that the buildup of greenhouse gases and the climate changes caused by it will create conditions, including warmer temperatures, which will increase the risk of unhealthful ambient ozone levels.

Climate change will impact many facets of human health in the U.S. through worsened air quality, increased transmission of infectious diseases from insects, and increased impacts from extreme weather.

These climate impacts will affect our health, daily lives, and our pocketbook.

Numerous health organizations have recognized the impact climate change is having on human health, and the need for action to mitigate emissions and assist with adaptation.

Here’s a look at what some leading health organizations and their representatives have to say about climate change and human health.

American Academy of Pediatrics journal publication:

Anticipated direct health consequences of climate change include injury and death from extreme weather events and natural disasters, increase in climate-sensitive infectious disease, increases in air pollution-related illness, and more heat related, potentially fatal, illness. Within all of these categories, children have increased vulnerability compared with other groups.

American Lung Association website:

Scientists warn that the buildup of greenhouse gases and the climate changes caused by it will create conditions, including warmer temperatures, which will increase the risk of unhealthful ambient ozone levels. Higher temperatures can enhance the conditions for ozone formation. Even with the steps that are in place to reduce ozone, evidence warns that changes in climate are likely to increase ozone levels in the future in large parts of the United States.

World Health Organization fact sheet:

Climate change affects social determinants of health – clean air, safe drinking water, sufficient food and secure shelter.

American Medical Association news/opinion piece:

Climate change produces weather extremes on both ends of the temperature spectrum. In Maine… it’s expected to have a rising rate of heart attacks and problems related to extreme snow, ice and cold. [Furthermore], in Maine, that’s being seen in a marked increase of Lyme disease. Warmer and shorter winters mean that deer ticks die off in smaller numbers, which means more will breed.

Asthma and Allergy Foundation website:

Twenty-five million Americans, including 7 million children, have asthma, and 50 million Americans have allergies… They are more likely to sleep poorly at night, miss school or work, and risk hospitalization and even death because of the increasing environmental triggers due to climate change.

Despite these alarming emerging health-climate issues, I am optimistic about our ability to implement the needed climate solutions to reduce emissions and adapt to impacts.

Just last year, 40 percent of all new electric capacity built was wind power, more than any other source added.

States like Texas, Iowa, Illinois, Minnesota, Oklahoma, Kansas, Colorado and California are leading the way on wind power. The U.S. has now installed 60 gigawatts of wind, one-fifth of the world's total wind capacity.

The economic benefits of wind power are clear. Wind energy companies pumped $25 billion into the U.S. economy in 2012 alone through new project investments, and the wind industry employs 80,000 people.

Other solutions, like energy efficiency, continue to advance each year as well.

Annual savings from electricity and natural gas efficiency programs in 2011 were 19% higher than in 2010. That’s a huge improvement, although enormous efficiency savings – savings that can reduce emissions and save consumers money — still remain on the table.

Our fate is in our own hands.

We can continue to make progress reducing emissions by implementing President Obama’s Climate Action Plan while growing a strong economy.

Making the choice to reduce climate destabilizing emissions will mean a better world for my seven-month old daughter, her generation, and the generations to come. And better air quality will mean my daughter can take full advantage of those long summer days we all enjoyed growing up.

We have a responsibility to take aggressive steps now in order to help stem the tide of the more severe climate impacts we know are coming.

By John Finnigan

Maryland Governor Martin O’Malley continues to lead the way on climate and clean energy policy.  On Thursday, he unveiled Maryland’s new Greenhouse Gas Emissions Reduction Act (GGRA) Plan.  Gov. O’Malley’s plan raises the targets for renewable energy, energy efficiency and peak energy demand reduction, while re-affirming Maryland’s membership in the Northeast Regional Greenhouse Gas Initiative (RGGI).  The plan adds new climate programs relating to transportation and forestry, and a new aspirational goal to make Maryland a zero-waste state.

Maryland is particularly vulnerable to climate change with 3,000 miles of shoreline along scenic Chesapeake Bay.  The state ranks 42nd in total area, but 10th in coastline area.  Gov. O’Malley has addressed climate change since his early days in office.  In 2007, he established the Maryland Climate Change Commission to address the causes and effects of climate change in Maryland and develop an action plan.  The Maryland Climate Action Plan (Plan) was issued in August 2008, and Gov. O’Malley has labored diligently to implement the plan since that time.

The new Plan  calls for increasing the renewable energy portfolio standard from 20% to 25% by 2022, as well as the energy efficiency and peak demand reduction targets (with the new, higher targets to be announced at a later date).  Like a true leader, Gov. O’Malley aims high and is unafraid to be different.  His call to raise these clean energy standards comes at a time when some states have been unsuccessfully pressured by the fossil-fuel industry to consider lowering their clean energy standards.

In addition to the 2008 Climate Action Plan and the new GGRA Plan, Gov. O’Malley’s key accomplishments include:

• (2008) Amendment to the Maryland Renewable Energy Portfolio Standard doubled the existing standard to require that 20% of Maryland's energy be created by renewable resources by 2022, including 2% from solar energy;

• (2008) EmPOWER Maryland Act set an energy efficiency target and peak demand reduction target of 15% by 2015;

Source: CBS Baltimore

• (2008) Maryland Strategic Energy Investment Program was created using revenues from the Northeast RGGI to offset ratepayers’ electricity bills and invest in energy efficiency programs;

• (2009) Maryland Greenhouse Gas Emissions Reduction Act requires Maryland to cut greenhouse gas emissions 25% below 2006 levels by 2020; and

• (2013) Maryland Offshore Wind Energy Act of 2013 created a fund to build 200 megawatts of wind energy, which Gov. O’Malley intends to use to construct one of the nation’s first offshore wind energy farms off the coast of Ocean City.

EDF applauds Gov. O’Malley for his leadership on progressive and effective climate and clean energy policy.  Maryland is showing how states can take meaningful steps to reduce greenhouse gas emissions despite the lack of a comprehensive federal climate and clean energy strategy.  Gov. O’Malley is balancing environmental protection with economic growth – Maryland’s unemployment rate is below the national average and the U.S. Chamber of Commerce has named Maryland the number one state in the country for innovation and entrepreneurship the past two years.  Gov. O’Malley is acting true to the Maryland state motto of “manly deeds,” and we hope that other elected officials will take note.

BP mounts heavy media campaign as judge weighs spill case
By Harry R. Weber, FuelFix. July 29, 2013.
"BP’s unrelenting attacks against how the Gulf oil spill civil settlement it agreed to is being handled aims to win over the public, but the strategy risks antagonizing a key constituent who is following every word — the federal judge overseeing the case…" (read more)

With levee authority lawsuit, state can't keep ignoring petroleum-related damage to marshes: Len Bahr
By Contributing Op-Ed columnist, The Times-Picayune (New Orleans). July 29, 2013.
"In July 1973 I was hired fresh out of grad school to join an LSU research team studying oil production impacts on the Louisiana coast. We attempted to quantify the ecological damage caused by a new oil pipeline that came ashore onto the deteriorating delta coast near Fourchon. The research effort was a bust in that so many pipelines already crossed the coast in that vicinity as to mask the impacts of any single project…" (read more)

Louisiana politics challenges historic lawsuit against oil companies: John Maginnis
By John Maginnis, The Times-Picayune (New Orleans). July 29, 2013.
"Louisiana politicians, beware, this is what happens when you establish in the Constitution an independent and apolitical board of experts empowered to take legal action to protect the lives and property within its jurisdiction, namely, the Southeast Louisiana Flood Protection Authority-East…" (read more)

Companies work on relief well off Louisiana coast
By The Associated Press. July 29, 2013.
"NEW ORLEANS — The area where a natural gas well blew wild and caught fire last week was active Sunday, and federal officials said natural gas detectors and automatic, high-capacity water hoses were being installed on the burned rig…" (read more)

David Vitter, Mary Landrieu want Fugate promotion delayed until flood insurance premiums stabilize
By Bruce Alpert, NOLA.com | Times-Picayune (New Orleans). July 29, 2013.
"WASHINGTON — Louisiana's two U.S. senators Monday urged President Barack Obama to delay promoting FEMA Administrator Craig Fugate to secretary of the Department of Homeland Security until his agency helps address big increases in flood insurance premiums based on the agency's new flood maps…" (read more)

Gauging health of Louisiana fisheries is a complex task
By Amy Wold, The (Baton Rouge) Advocate. July 28, 2013.
"A few months ago, John Lopez was looking for blue crabs for a boil he was planning at the New Canal Lighthouse in New Orleans, but the pickings were scarce…" (read more)

Jindal lashes out against coastal erosion suit
By Jeff Adelson, The (Baton Rouge)Advocate. July 28, 2013.
"With the ink barely dry on a massive lawsuit accusing nearly 100 energy companies of devastating Louisiana’s coast and increasing the risk of catastrophic damage during a hurricane, political maneuvering over the case has already begun…" (read more)

Coastal states criticize Obama administration's lack of support for 'FAIR' revenue-sharing bill
By Deborah Barfield Barry, Gannett Washington Bureau. July 28, 2013.
"WASHINGTON — Sens. Mary Landrieu of Louisiana and Lisa Murkowski of Alaska slammed the Obama administration earlier this week for opposing their bipartisan legislation that would steer more royalties from energy production on federal lands to coastal states…" (read more)

Louisiana coastal erosion lawsuit: attorneys explain its chances and potential pitfalls
By Benjamin Alexander-Bloch, NOLA.com | The Times-Picayune (New Orleans). July 27, 2013.
"The Southeast Louisiana Flood Protection Authority-East’s jaw-dropping lawsuit this week against a host of oil, gas and pipeline companies is creative and ambitious, some local attorneys with knowledge of coastal issues said. But because the suit is so broad and unique, and so lacks precedent, they said, its outcome remains far from certain…" (read more)

Meet with us about oil, gas, pipeline lawsuit on Aug. 15, East Bank levee authority leader tells state
By Mark Schleifstein, NOLA.com | The Times-Picayune (New Orleans). July 27, 2013.
"The vice president of the East Bank levee authority, who came up with the idea to file suit against oil, gas and pipeline companies to require them to repair wetland damage that increases the risk of hurricane storm surges overtopping area levees and compensate the authority for damage that can't be repaired, offered to discuss the suit with the head of the state Coastal Protection and Restoration Authority during the levee authority's Aug. 15 meeting…" (read more)

With lawsuit against oil companies, levee authority is doing its job: Mark Davis
By Contributing Op-Ed columnist, The Times-Picayune (New Orleans). July 26, 2013.
"The Southeast Louisiana Flood Protection Authority-East has a big job to do. That job is not to please governors or lawyers. It is not to coddle or persecute any industry. It is not to cozy up to or condemn the federal government. Their job is to keep this community safe from storms, and that is a very hard and expensive job. Since its creation out of the shameful wreckage of our pre-Katrina flood protection system, the authority has been notable for its efforts to in fact do that job. It has been one of the civic bright spots that helped spur local and national confidence in our future…" (read more)

Halliburton to be arraigned on misdemeanor charge of computer fraud on Wednesday
By Mark Schleifstein, NOLA.com | The Times-Picayune (New Orleans). July 26, 2013.
"Halliburton Energy Services Inc. is set to be arraigned in federal court in New Orleans Wednesday on a single misdemeanor charge of computer fraud involving employees erasing results of two sets of computer model tests after the BP Deepwater Horizon disaster…" (read more)

State coastal authority requests meeting with East Bank levee authority over oil, gas, pipeline suit
By Mark Schleifstein, NOLA.com | The Times-Picayune (New Orleans). July 26, 2013.
"The state Coastal Protection and Restoration Authority has requested to meet with East Bank levee authority President Tim Doody to discuss why the state thinks the authority filed an improper lawsuit against oil and gas companies this week. The suit demanded that 97 firms repair damage to coastal wetlands and pay for damages that can't be repaired…" (read more)

Halliburton could have incentive to settle civil claims related to 2010 BP oil spill
By The Associated Press. July 26, 2013.
"Halliburton has resolved a Justice Department criminal probe of its role in the Gulf oil spill by agreeing to pay a $200,000 fine and admitting it destroyed evidence, but the company still has a powerful incentive to cut another deal with businesses and residents…" (read more)

Historic Roadmap for Cleaner Air at the Grand Canyon and Surrounding Communities, Carbon Pollution Reductions from the Navajo Generating Station and a Stronger Clean Energy Economy Fri, 2013-07-26

NEWS RELEASE

Contact:
Keith Gaby, EDF, kgaby@edf.org, 202-572-3336
Sharyn Stein, EDF, sstein@edf.org, 202-572-3396 
Jason Bane, Western Resource Advocates, jason.bane@westernresources.org, 720-763-3721

(July 26, 2013) Today, a coalition submitted a roadmap to the U.S. Environmental Protection Agency (EPA) to achieve cleaner air at the Grand Canyon National Park and surrounding communities. The roadmap will also reduce reliance on coal at the Navajo Generating Station in Page, Arizona, cut the carbon pollution from the Navajo Generating Station (NGS), and foster clean energy economic development.

The roadmap was developed through collaboration among diverse interests including the Central Arizona Water Conservation District, Environmental Defense Fund, the Gila River Indian Community, the Navajo Nation, Salt River Project (on behalf of itself and the other NGS owners), the U.S. Department of the Interior, and Western Resource Advocates.  

The roadmap addresses clean air protections under the nation’s clean air laws. In addition to the significant reductions in the pollution that impairs the Grand Canyon’s spectacular vistas, the plan lays out a pathway to develop clean energy resources, including crucial commitments by the Department of the Interior to further clean energy economic development for the Navajo Nation, Hopi Tribe and Gila River Indian Community. 

Importantly, the plan also contains a commitment by the Department of the Interior to begin addressing climate change. The Department of the Interior will reduce or offset the carbon pollution associated with its NGS energy use by three percent per year, or 11.3 million metric tons.  An innovative, credit-based, carbon reduction program was developed to assure the carbon pollution reductions are genuine and accurately measured. The program is transparent and simple to administer, and is designed so that it can be replicated elsewhere.   

You can read the blueprint and a fact sheet about the blueprint on EDF’s website. The blueprint will be considered by EPA in a public proceeding involving public notice and comment. 

"Reaching this agreement was a challenging, but rewarding, process,” said John Nielsen, Energy Program Director for Western Resource Advocates. “The agreement balances complex and diverse issues and interests. The environmental benefits of this agreement are significant, and the progress toward addressing climate change is of utmost importance."

“This is a comprehensive approach to protect scenic vistas at the Grand Canyon National Park while forging lasting clean energy solutions” said Bruce Polkowsky, a former EPA and National Park Service expert on clean air in the national parks who participated in the design of the plan.  

“This plan provides a roadmap to cleaner air, climate progress and a stronger clean energy economy,” said Vickie Patton, General Counsel at Environmental Defense Fund. “We had to work through some difficult issues but together we were able to develop an approach that provides for cleaner air at the Grand Canyon and surrounding communities, that begins a cost-effective clean energy transition at the Navajo Generating Station, and that provides for crucial clean energy economic development for the Navajo Nation, Hopi Tribe and Gila River Indian Community.” 

Clean Air Protections Include Reducing Reliance on Coal

Proposed clean air measures to reduce oxides of nitrogen and carbon pollution:

Alternative A

• Requires the NGS participants to cease coal generation on one unit or substantially reduce generation by January 1, 2020, depending on which ownership changes occur.
• This alternative also requires the NGS participants to achieve the same amount of NOx emissions reductions as provided for under EPA’s BART proposal, while meeting a 30-day rolling average NOx emission rate limit of 0.07 lb/MMBtu on two units at NGS after installing SCR or an equivalent technology no later than December 31, 2030.

Alternative B

• If the conditions for Alternative A are not met, Alternative B requires a reduction of NOx emissions equivalent to the shutdown of one Unit from 2020 to 2030.
• This alternative also requires the submittal of annual Implementation Plans describing the operating scenarios to be used to achieve greater NOx emission reductions than EPA’s Proposed BART Rule as described below. 

Under either Alternative, NOx emissions will be maintained below the total 2009-2044 NOx emissions cap delineated by EPA.  The 2009-2044 NOx cap is calculated based on an annual emission rate of 0.055 lb/MMBtu using selective catalytic reduction.

Additional Commitments to Reduce Carbon Pollution and Foster Clean Energy Development for the Navajo Nation, Hopi Tribe and Gila River Indian Community

• Consistent with the President’s plan to reduce carbon dioxide (CO2) emissions, a commitment by the Interior Department to reduce the CO2 associated with the energy used to pump Central Arizona Project water by 3 percent annually for a total of 11.3 million metric tons to be achieved at NGS or through qualifying low emitting clean energy projects no later than December 31, 2035.  Interior’s commitment will be administered through an innovative credit-based CO2 tracking and accounting program that assures the reductions are accurately measured and genuine.
• In furtherance of the President’s “Blueprint for a Secure Energy Future” and to advance clean energy economic development that benefits the Indian tribes affected by NGS, the Interior Department will facilitate the development of Clean Energy Projects at a pace and scope to achieve 80% Clean Energy by 2035 for the U.S. share in NGS by securing approximately 26,975,000 MWh of Clean Energy Projects. The Interior Department will identify, prioritize and further low-emitting energy projects to benefit affected tribes, such as a 33 MW solar facility proposed by the Gila River Indian Community and local, community-based and large scale renewable energy projects within the Navajo Nation and the Hopi Tribe.
• A commitment by the Interior Department to carry out the National Renewable Energy Laboratory (NREL) Phase 2 Study to analyze options for the future of NGS consistent with the goals of the Joint Statement issued by EPA, Interior, and the U.S. Department of Energy on January 4, 2013, including identifying options for replacing the federal share of energy from NGS with low-emitting energy resources.
• A $5 million Local Benefit Fund for community improvement projects within 100 miles of NGS or the Kayenta Mine (which supplies coal to NGS).  Such projects could include coal or wood stove changeouts, local and community-based renewable energy projects, a partnership with the Navajo Tribal Utility Authority (NTUA) to address electric or water distribution and other infrastructure needs near the plant and mine, or other projects that benefit families and communities in the vicinity of NGS and the Kayenta Mine and that are developed with input from the affected communities.
• A commitment by the current owners of NGS to cease their operation of conventional coal-fired generation at NGS no later than December 22, 2044.

More information is available on the blueprint and the fact sheet.

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Environmental Defense Fund (edf.org), a leading national nonprofit organization, creates transformational solutions to the most serious environmental problems. EDF links science, economics, law and innovative private-sector partnerships. See twitter.com/EnvDefenseFund; facebook.com/EnvDefenseFund

Western Resource Advocates is a regional nonprofit conservation organization dedicated to protecting the West's land, air, and water. Offices and staff are located in Boulder (CO), Phoenix and Tucson (AZ), Pocatello (ID), Santa Fe (NM), Carson City (NV) and Salt Lake City (UT). Go to www.WesternResourceAdvocates.org and follow us on Twitter @WRADV

By Will Lindsey, Environmental Defense Fund

Will Lindsey, Policy and Partnerships Intern, Mississippi River Delta Restoration, Environmental Defense Fund.

As my first summer internship as a Tulane University Law School student comes to an end, I am grateful to have been so involved in work that directly relates to the place where I live and attend school. My work as a policy and partnerships intern with the Mississippi River Delta Restoration Campaign at Environmental Defense Fund (EDF) has ensured that I will never look at the Gulf Coast in quite the same fashion again.

Upon arriving at EDF, I knew I would be working on the RESTORE Act. Generally, I knew the RESTORE Act was significant because it would dedicate a large majority of the Clean Water Act penalties from the Deepwater Horizon oil disaster to the Gulf Coast states for restoration. What I didn't know was what this meant, practically speaking, for the Gulf Coast and for coastal Louisiana, specifically.

I quickly realized that the RESTORE Act has the potential to fund significant restoration projects that the Gulf Coast has desperately needed for a long time. It also became clear that if used wisely, this funding could vastly improve and protect the long-term ecological and economic stability of the Gulf Coast. It also became clear that if used unwisely, there was a possibility of wasting an unprecedented funding opportunity and the chance to make a real difference in the Gulf.

What this means on the ground is using funding from the RESTORE Act, as well other funding streams stemming from the Deepwater Horizon disaster, to implement projects that will both restore the natural environment as well as combat the loss of coastal wetlands that the Gulf Coast has been experiencing for several decades. These projects have long been recognized as needs in the Gulf Coast and have been outlined in many state plans, including Louisiana’s 2012 Coastal Master Plan. These projects not only present the opportunity to protect and restore wildlife habitat, but many of these projects would create and/or restore coastal wetlands which ultimately serve as a natural storm surge buffers for populated areas.

Finally, I realized that the Gulf Coast economy was inescapably intertwined with the Gulf ecosystem. Wildlife tourism, including wildlife watching, recreational fishing and hunting, generates substantial revenue in the five Gulf Coast states and would not exist without a healthy ecosystem. Additionally, the Gulf Coast economy stands to grow as coastal restoration projects are initiated as new funding becomes available. Many businesses throughout the U.S. have recognized the economic opportunities that coastal restoration can provide and thus have begun to include coastal restoration-related services in their repertoires.

With good forethought and cooperation, it seems clear that these funding streams, which resulted from a terrible disaster, can ultimately serve to reverse much of the degradation that the Gulf Coast has seen in the past. In turn, this will strengthen the Gulf Coast economy, protect Louisianans and other Gulf Coast residents from natural disasters and improve, as well as safeguard, natural wildlife habitat.

EDF staff participated in panel earlier this week at the 26th International Congress for Conservation Biology, spotlighting our new partnership and initiative, Fish Forever, designed to improve fisheries management in developing tropic nations.  Organized by the Society for Conservation Biology, the Congress brings together students and conservation professionals from around the globe to discuss conservation [...]

Decision Protects Vital Efforts to Reduce Climate Pollution Appeals Court Rejects Texas, Power Companies’ Challenges to Clean Air Safeguards Decision Protects Vital Efforts to Reduce Climate Pollution EPA Clean Air Act Fri, 2013-07-26

NEWS RELEASE

Contact:
Peter Zalzal, 303-946-0907, pzalzal@edf.org
Sharyn Stein, 202-572-3396, sstein@edf.org

(Washington, D.C. – July 26, 2013) Today, the U.S. Court of Appeals for the District of Columbia Circuit dismissed lawsuits filed by the state of Texas and a group of power companies that could have undermined vital clean air protections and hurt efforts to reduce climate pollution.

The lawsuits had challenged efforts by the Environmental Protection Agency (EPA) to ensure smooth, uninterrupted permitting of large sources of greenhouse gas emissions, as required under America’s clean air laws. Permitting ensures that large emitters deploy modern pollution control technology to cost-effectively reduce their climate pollution.

Today’s dismissed lawsuits are part of an ongoing set of challenges the state of Texas has mounted against some of the most important climate protections in our country.

“Instead of using its taxpayer dollars to litigate and obstruct clean air protections, Texas should invest in expanding its world-class wind energy resources, and in building a stronger clean energy economy,” said Peter Zalzal, an attorney for Environmental Defense Fund, which was an intervenor in the case. “Investing in clean energy instead of lawsuits will benefit Texas communities facing the debilitating impacts and soaring costs of the extreme weather linked to climate change.”

In the rulemaking at issue here, EPA took action to ensure that large greenhouse gas emitting sources in certain states could obtain the permits they needed for construction and deployment of modern technologies to reduce their emissions.

All states except Texas worked with EPA to ensure that a permitting authority was in place.

In today’s decision, the court concluded that the Clean Air Act unambiguously required large greenhouse gas emitting sources to obtain these construction permits. The court also found that because EPA’s limited actions allowed sources to obtain permits that they otherwise could not obtain, neither the power companies nor states had standing to challenge them.

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Environmental Defense Fund (edf.org), a leading national nonprofit organization, creates transformational solutions to the most serious environmental problems. EDF links science, economics, law and innovative private-sector partnerships. Connect with us on Twitter and Facebook.

Gulf oil spill: Halliburton to plead guilty to destroying evidence
By Stephen Mufson. The Guardian. July 26, 2013.
"Halliburton has agreed to plead guilty to destroying evidence related to the 2010 Gulf of Mexico oil spill, the US department of justice said on Thursday.  The government said Halliburton's guilty plea was the third by a company over the spill and would require the world's second-largest oilfield services company to pay a maximum US$200,000 statutory fine…" (Read more).

'Jackpot justice' is bad for Louisiana businesses
Opinion by Jay Timmons and Dan Juneau. The Times-Picayune (New Orleans, La.). July 26, 2013.
"The United States leads the world in a number of categories. While most of our achievements are worth celebrating, others are not. We have the highest corporate tax rate among industrialized nations, with a top rate of 35 percent. And we've earned another dubious distinction: Our legal system is the world's costliest…" (Read more).

History shows industry got a free ride
By Stephanie Grace. The Advocate (Baton Rouge, La.). July 25, 2013.
"It wasn’t a huge story at the time, but about seven years ago, something unusual happened, at least for Louisiana.  Asked to OK locally based McMoRan Exploration Co.’s plan to build a $1 billion open-loop liquified natural gas port off the coast, a project that environmentalists feared might harm the state’s fisheries, then-Gov. Kathleen Blanco said no…" (Read more).

Lawsuit against oil and gas giants is a call to arms for Louisiana
Opinion by Jarvis DeBerry. The Times Picayune (New Orleans, La.). July 25, 2013.
“It's been a real long time since "Louisiana 1927." Even so, the song's refrain — "They're trying to wash us away. They're trying to wash us away." — seems as relevant now as the time 86 years ago when New Orleans' unelected elite let loose the Mississippi River on St. Bernard Parish…” (Read more).

New BP ad suggests it’s the victim in the oil spill fallout
By Harry Weber. FuelFix – The Houston Chronicle. July 25, 2013.
"BP published a new advertisement Thursday in The New York Times and Wall Street Journal suggesting  it’s a victim of trial lawyers seeking a big windfall — an unfair one, in the company’s view.  The headline at the top of the ad states, “Business Leaders Agree: What’s Happening to BP is Bad for American Business'…" (Read more).

Natural habitats give important protection
By Nikki Buskey. Houma Courier (Houma, La.). July 25, 2013.
"A new study found that natural habitats such as wetlands, barrier islands, dunes and oyster reefs are critical to protecting millions of U.S. coastal residents and their properties from devastation by storms.  The value of natural landscapes is something southern Louisiana…" (Read more).

Industry legally obligated to help fix coast
Opinion by John Barry. The Advocate (Baton Rouge, La.). July 25, 2013.
"After Hurricane Katrina, Louisiana voters overwhelmingly approved a constitutional amendment to allow the creation of the Southeast Louisiana Flood Protection Authority-East, the board which oversees levee districts protecting the east bank of the greater New Orleans area…" (Read more).

New Orleans, coastal lawmakers outspoken on levee board suit
By Lauren McGaughy. The Times-Picayune (New Orleans, La.). July 25, 2013.
"While Louisiana's congressional delegation sought to remain largely neutral on the suit filed Wednesday by the East Bank levee authority against a slew of oil, gas and pipeline companies, state lawmakers were more eager to take sides on the issue. From cautiously supportive to deeply critical…" (Read more).

Drilling rig in Gulf of Mexico no longer on fire; no oil spotted in water
Associated Press. July 25, 2013.
"A drilling rig that caught fire after a natural gas blowout in the Gulf of Mexico appears stable now that the fire is out, and there was no sign of any oil sheen on a fly-over Thursday morning, a rig company executive said.  "The well essentially snuffed itself out," said Jim Noe, a vice president…" (Read more).

Progress made in restoring 1,200 acres of coastal marsh near Myrtle Grove
By Rob Masson. WVUE, Fox 8 News (New Orleans, La.). July 24, 2013.
"Plaquemines Parish, La. – State and federal coastal experts showed off on Wednesday the latest jewel in a crown of projects designed to counteract the ravages of coastal erosion.  The state's newest land mass is now growing at the rate of an acre a day, below Myrtle Grove…" (Read more).