The U.S. Department of Energy, on Wednesday night, released its electric grid reliability study, finding that the greatest driver of baseload power plant retirements was cheap natural gas followed by flat power demand, environmental regulations and the growing penetration of renewables on the grid.
Requested by U.S. Department of Energy Secretary Rick Perry in April, the study was intended to report on whether the U.S. electric grid can handle the retirement of aging coal-fired and nuclear power plants and the “market-distorting effects of federal subsidies that boost one form of energy at the expense of others.”
It found that “the biggest contributor to coal and nuclear plant retirements has been the advantaged economics of natural gas-fired generation.”
It offers recommendations to boost coal and nuclear. It suggests that the U.S. Environmental Protection Agency (EPA) ease rules for resources such as coal, nuclear and hydropower and that the Nuclear Regulatory Commission likewise ease permitting rules for nuclear plants. It also suggests that the Federal Energy Regulatory Commission (FERC) expedite efforts to reform the way prices are set in wholesale markets and how those markets value reliability. Finally, it recommends that the Department of Energy should prioritize research and development for grid resiliency, reliability, modernization and renewables integration technologies be promoted.
Notably absent from the grid study was any mention of climate change, the focus of a 15-member panel disbanded Friday by the Trump administration. The panel had been charged with helping officials and policy makers evaluate a separate federal report, the National Climate Assessment Report. Its members warned that the move leaves the public to deal with what amounts to a data dump with its impending release.
Established by the National Oceanic and Atmospheric Administration (NOAA) in 2015, the Federal Advisory Committee for the Sustained Climate Assessment included members of government, industry, academia and non-profits. The group was charged with helping evaluate the National Climate Assessment Report, a portion of which [the Climate Science Special Report] was widely publicized in its draft form earlier this month.
The charter for the committee expired Sunday. A note on the committee’s website offers that “per the terms of the charter, the Federal Advisory Committee for the Sustained National Climate Assessment (Committee) expired on August 20, 2017. The Department of Commerce and NOAA appreciate the efforts of the committee and offer sincere thanks to each of the committee members for their service.”
NOAA Communications Director Julie Roberts said “this action does not impact the completion of the Fourth National Climate Assessment, which remains a key priority.”
The Climate Science Special Report is due in its final form in November; the larger congressionally mandated document, the Fourth National Climate Assessment, is scheduled for publication in late 2018.
The National Climate Assessment integrates and evaluates current and projected global climate change trends, both human-induced and natural, and analyzes the effects of current and projected climate change. It has been published three times since passage of the Global Change Research Act of 1990, a law mandating its publication every four years.
Court Directs FERC to Consider GHG Impacts of Pipelines
The United States Court of Appeals for the District of Columbia Circuit, in a 2-1 decision issued Tuesday, found that the Federal Energy Regulatory Commission (FERC) failed to adequately consider the impact of greenhouse gas emissions from burning the fuel flowing through the Southeast Market Pipelines Project when it approved the project in 2016. FERC’s failure under the National Environmental Policy Act to adequately discuss the downstream effects of carbon emissions from natural gas transported through the pipelines in the project’s environmental impact statement was grounds for the court’s vacatur and remand.
Judge Thomas Griffith wrote that FERC's environmental review “should have either given a quantitative estimate of the downstream greenhouse emissions that will result from burning the natural gas that the pipelines will transport or explained more specifically why it could not have done so.”
Griffith went on to write that “greenhouse-gas emissions are an indirect effect of authorizing this project, which FERC could reasonably foresee, and which the agency has legal authority to mitigate. Quantification would permit the agency to compare the emissions from this project to emissions from other projects, to total emissions from the state or the region, or to regional or national emissions-control goals. Without such comparisons, it is difficult to see how FERC could engage in ‘informed decision making’ with respect to the greenhouse-gas effects of this project, or how ‘informed public comment’ could be possible.”
The project comprises three natural gas pipelines under construction in Alabama, Georgia and Florida that are intended to bring natural gas to Florida to fuel existing and planned power plants.
Trump Denies Coal Exec Plea as EPA Reviews Toxic Waste Limits from Coal Power Plants
As part of a legal appeal, U.S. Environmental Protection Agency (EPA) administrator Scott Pruitt filed a letter Monday with the Fifth Circuit U. S. Court of Appeals in New Orleans in which he indicated that he will seek to revise the 2015 guidelines mandating increased treatment for wastewater from coal-fired power plants.
The rule, originally issued by the Obama administration in 2015, aimed to reduce toxic water discharges into lakes, rivers and streams from coal-fired power plants and coal ash dumps.
In the letter, Pruitt said he “decided that it is appropriate and in the public interest to conduct a rulemaking to potentially revise the new, more stringent Best Available Technology Economically Achievable effluent limitations and Pretreatment Standards for Existing Sources in the 2015 rule that applies to bottom ash transport water and flue gas desulfurization wastewater.”
The 2015 rule has faced some scrutiny, with opponents saying it could lead to the closure of coal-fired power plants and economic harm for small utilities.
Also this week, the Trump administration denied a request by coal industry executives from Murray Energy Corporation and FirstEnergy Solutions Corporation to provide them relief for plants they say are overburdened by environmental regulations and market stresses, by pushing forward a rarely used emergency order protecting coal-fired power plants.
“We look at the facts of each issue and consider the authorities we have to address them but with respect to this particular case at this particular time, the White House and the Department of Energy are in agreement that the evidence does not warrant the use of this emergency authority,” said U.S. Department of Energy spokeswoman Shaylyn Hynes.
The department did not address assertions by Murray Energy Corporation CEO Bob Murray in letters that Trump told him multiple times in July and August that he wanted Energy Secretary Rick Perry to invoke the emergency authority.
The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.