Geoscience Policy Monthly Review
july 2015
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energy
House Committee hears testimony on Administration's proposed "social cost of carbon" rule
July 22, 2015
The House Natural Resources Committee held a hearing on July 22 to assess a proposed standard from the Environmental Protection Agency known as the social cost of carbon (SCC or SC-CO2). The measure accounts for economic damages associated with changes in carbon dioxide (CO2) emissions by applying a dollar amount per ton of carbon emitted. However, Republicans have criticized the move for using, as Chairman Rob Bishop (R-UT) put it, “arbitrary inputs” and speculation in its calculation.
The SCC projects future impacts of carbon to 2300, analyzing the costs associated with rising sea levels, human health effects, and agricultural productivity changes. Dr. Kevin Dayaratna of the Heritage Foundation and Republicans on the committee criticized the scope of time considered in the analysis as “unreasonable” for present energy regulations. Scott Segal of the industry law firm Bracewell & Giuliani said that the models used for the SCC should be a “dispassionate economic assessment” without “ethical considerations” regarding future generations.
House Democrats, meanwhile, emphasized the need for the SCC to protect vulnerable and low income communities. Rep. Alan Lowenthal (D-CA) cited economic studies saying that not accounting for climate change has “created a market failure,” meaning not enough goods and services have been allocated to mitigate global warming’s effects. Minority witness Dr. Michael Dorsey of the Joint Center for Political and Economic Studies added that the SCC should in fact be higher since it does not account how different areas of the country will be affected.
The EPA intends to incorporate the SCC metric into current rules and regulations, including the National Environmental Protection Act and the proposed Clean Power Plan.
Sources: House Natural Resources Committee, E&E News, Environmental Protection Agency
Updated August 17, 2015
Energy and Natural Resources Committee passes comprehensive energy bill
July 30, 2015
On July 30, the Senate Energy and Natural Resources Committee passed its Energy Policy Modernization Act of 2015 (S.___), which addresses energy efficiency, infrastructure, supply, and government funding and oversight. After three days of markup, the committee voted 18 to 4 to move the bill to the Senate floor for a vote. The Offshore Production and Energizing National Security Act of 2015 (S.___), a separate bill that would lift the US ban on exporting crude oil, also passed the committee on the same day.
The wide-ranging energy legislation covers several topics. Title I addresses energy efficiency in buildings, appliances, and manufacturing. Title II sets administrative and judicial policy for reviewing applications to construct and operate natural gas export facilities. Title III designates hydroelectric power as a renewable resource, sets agendas for geothermal, marine hydrokinetic, and methane hydrate energy development, and prompts the Department of Energy (DOE) to research carbon capture technology; this section also authorizes a national assessment of critical mineral resources and a research and development program for critical minerals that was previously introduced as a separate bill. Title IV includes legislation on coordinating federal energy-water activities, funding for DOE research and for Advanced Research Projects Agency – Energy (ARPA-E), energy grid reliability, and federal land management.
The Committee also approved a series of amendments to the bill. Sen. Elizabeth Warren (D-MA) added an amendment that would require a government study of the “implications of exporting liquefied natural gas with respect to consumers and the economy.” Sen. Shelley Moore Capito (R-WV) added an amendment to expedite the Federal Energy Regulatory Commission’s licensing and permitting process for natural gas infrastructure projects. The bill’s prospects in the Senate are uncertain, but the committee’s bipartisan support will likely improve its chances.
Sources: E&E News, Senate.gov
Updated August 17, 2015