Thursday, August 6, 2009

Climate Progress



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Climate Progress

Climate Progress



eSolar launches power tower concentrated solar thermal plant — live video cast today, 1 pm EDT

Posted: 05 Aug 2009 09:17 AM PDT

Watch eSolar's launch live here at 10 am PDT.  CEO Bill Gross will be joined by David Meyers, Executive Director of The Wildlands Conservancy, and leading clean energy experts Dan Kammen of UC Berkeley and Google.org's Dan Reicher (my boss from DOE days) .

Below is a fascinating video from a recent episode of National Geographic's World's Toughest Fixes:  "In this episode, discover the engineering feats behind the development of the eSolar Sierra SunTower power plant."

Of course, concentrated solar thermal power (CSP) aka solar baseload is indeed a core climate solution.

I asked the company whether future systems will have storage — no reply yet.  CSP with storage is going gangbusters elsewhere (see "World's largest solar plant with thermal storage to be built in Arizona — total of 8500 MW of this core climate solution planned for 2014 in U.S. alone").

Here is more detail on eSolar from its press release:

esolar

LANCASTER, Calif. – August 5, 2009 – With 24,000 mirrors glimmering under the Antelope Valley summer sun, eSolar, a leading provider of modular, scalable solar thermal power technology, today unveiled its 5-megawatt (MW) Sierra SunTower solar power plant.  The full-scale power plant, the only power tower of its kind in the U.S., produces electricity for Southern California Edison (SCE) and can power more than 4,000 homes in California's Antelope Valley.

The eSolar technology resolves many of the problems that have held back large scale solar in the past including cost, speed of deployment and proximity to existing transmission lines. eSolar uses advanced software algorithms to precisely focus thousands of mirrors on a single point to efficiently harvest the sun's energy and achieve economies of scale with a smaller footprint than anyone else in the business.

"Today, we unveil a new blueprint for solar energy – one that leverages Moore's law rather than more steel," said Bill Gross, CEO of eSolar. "Sierra is just the beginning.   Soon eSolar technology will be deployed worldwide to provide clean, affordable energy to hundreds of thousands of homes."

Constructed in less than one year, eSolar's Sierra SunTower power plant marks the first of several developments in the Antelope Valley region using eSolar technology. Over the course of construction, this project created 300 jobs.

"With today's historic plant opening, eSolar is proving that California's energy and environmental leadership are advancing carbon-free, cost-effective energy that can be used around the world," said Governor Schwarzenegger. "Through measures such as AB 32 and the California Solar Initiative, I have worked to create an environment that allows companies such as eSolar to thrive in our state – creating green jobs, boosting our economy and preparing us for the energy demands of the future."

eSolar received the support and cooperation of the City of Lancaster throughout the construction process. "The City of Lancaster is proud to be home to the nation's newest solar power tower plant. This plant and eSolar's progressive growth plans throughout the Antelope Valley are the crown jewels in our ongoing effort to truly become the Alternative Energy Capital of the World," said R. Rex Parris, Mayor of Lancaster.

eSolar develops its California projects on parcels of previously disturbed private lands, avoiding many of the permitting and environmental pitfalls of development on pristine desert lands. Located in northern Lancaster, Sierra SunTower is built on private land designated for heavy industrial use.  The decision to site projects solely on private land is unique within the utility-scale solar industry, and the distinction has garnered support from local environmental advocates.

"eSolar demonstrates that pristine wildlands do not have to be sacrificed in order to keep the lights on with clean energy," remarked David Myers, Executive Director of the Wildlands Conservancy. "eSolar's efforts to reduce its impact on the surrounding environment demonstrates a level of foresight we hope to see from other solar developers in the future."

Sierra SunTower was fully financed and developed by eSolar, proving the rapid deployment, pre-fabricated method eSolar patented and pioneered.  Building on Sierra's success, eSolar will deploy many more plants around the country and around the world.
In February, eSolar announced an agreement with NRG Energy, Inc. to develop three plants in California and New Mexico that will generate up to 465 megawatts of electricity using eSolar technology. Additionally, in March, eSolar licensed its technology to India-based ACME Group for approximately 1 gigawatt of eSolar solar thermal capacity.

"Today we take an important step to a new dawn of power generation," said David Crane, President and CEO of NRG Energy. "With eSolar demonstrating the commercial viability of solar thermal power on a large scale, and with NRG planning to implement the technology at scale across the Southwest, we will begin to harness the sun to power our lives."

Streaming live at 10 am PDT and on demand immediately following the event:  http://esolar.com/news/video_sierra.

Cash for Clunkers is a double economic stimulus that pays for itself quickly in oil savings while generating CO2 reductions for free

Posted: 05 Aug 2009 07:32 AM PDT

Seth Borenstein, the AP science writer I admire greatly, has a long piece explaining that Cash for Clunkers is a very cost-ineffective way to save CO2.  Duh*.

"As a means of reducing greenhouse gas emissions, this "cash for clunkers" deal is probably among the least cost-effective uses of federal dollars one could imagine," as I wrote back in May.

*BUT as a stimulus that saves oil while cutting CO2 for free — it has turned out to be a slam dunk, far better than I had expected.  Indeed, Borenstein points out that "America will be using nearly 72 million fewer gallons of gasoline a year because of the program."  At $3 a gallon — hardly what the price is likely to average over the next decade — that is $216 million a year in gasoline savings.

So the billion dollar program pays the taxpayers back in oil savings in 5 years.  That means the CO2 savings are for free!

So quoting a cost of more CO2 saved at more than $100 a ton misses the point, I think.  The primary purpose of the program was NOT CO2 savings.  It certainly wasn't the primary reason the Center for American Progress put a (tougher) version of the idea forward back in November (see here).  We saw it as an economic boost with efficiency and environmental gains (not just CO2 but urban air pollution).

And it isn't how Obama described the program last week when he thanked the House for passing a $2 billion increase in funding:

The program has proven to be a successful part of our economic recovery and will help lessen our dangerous dependence on foreign oil, while reducing greenhouse gas emissions and improving the quality of the air we breathe.

The program has multiple benefits — and obviously we wouldn't even be doing it were we not in a major economic downturn that has crushed the auto industry.

And it's hard to argue the program's stimulus benefits:

"The 'cash-for-clunkers' program for auto sales has been a dramatic success," wrote Credit Suisse analysts on Friday. "This could drive auto sales and production sharply higher in the coming months," wrote the analysts.

And there is a second stimulus from the program.

The majority of the $200+ million a year in gasoline savings would have left the country, since we import nearly 2/3 of our oil (and probably a higher fraction of marginal increases in oil use).  Now that money stays in the pockets of consumers, who will save some of it and spend the rest of it, circulating most of the money in this country rather than overseas.

As a CO2-saver only, sure, Cash for Clunkers wouldn't be a wise investment.

And I understand the media's need to criticize everything, even the most successful-seeming government program.  My father — a newspaper editor for 30 years — had a wall hanging (crocheted by my mother) over his desk that said, "Nothing can stand the light of day."

Still, some ideas turn out better than anyone expected and deserve praise.  This program stimulates the economy in two ways and helps a key industry in trouble while delivering multiple energy and environmental benefits that save the taxpayers more than the program cost.  What more can you ask?

'Fragile compromise' of power plant CEOs in doubt as Senate debate approaches

Posted: 05 Aug 2009 06:42 AM PDT

When House Democrats wrote their global warming bill this spring, they relied on a carefully crafted agreement reached by some of the country's biggest electric utility companies that appeared to bridge decades of dispute among users of coal, natural gas and nuclear power.

Surprising many longtime observers, liberal Reps. Henry Waxman (D-Calif.) and Ed Markey (D-Mass.) incorporated a proposal from the Edison Electric Institute that helped determine how to slice up emission allocations potentially worth billions of dollars between power companies with a wide variety of fuel mixes.

But headed into this fall's Senate debate, CEOs from some of those same power companies are fighting to keep their coalition together. They face blistering dissent from at least eight Midwestern electric utilities with dominant coal portfolios — companies that say they never signed off on the original deal and are now worried that the climate bill includes an allocation formula that will be too expensive for their customers.

So begins a long story in E&E Daily (subs. req'd) on one of the big, but little told stories of the compromise that gave us House passage of a climate and clean energy bill.   The key point is that a deal was crafted that got utilities representing the overwhelming majority of US ratepayers to support the bill — or, in other cases, at least to not lobby against it.

I suspect this will not be a bill-killer in the end and that most of the original deal will survive with some tweaking — since the disgruntled utilities aren't big and therefore could presumably be appeased with a pretty small shift in allocations.  But for those who are interested in this important albeit complicated subject, I will excerpt the E&E story at length below with comments:

Last year, the coal companies formed the Midwest Climate Coalition, an ad hoc group with no dues or formal agenda. Organizers say their goal now is to influence the Senate, where the political dynamics give equal footing to smaller states where they are located, rather than the House, where states with larger populations such as California and New York are much more heavily represented.

"It can't be all pain and no gain for the Midwest," said Zach Hill, senior manager for federal affairs at Alliant Energy Corp., a Madison, Wis.-based company that serves about 1 million customers in Wisconsin, Iowa and southern Minnesota.

Added Tom Knapp, a Washington representative for NorthWestern Corp., a Sioux Falls, S.D.-based power company with 675,000 customers in Montana, South Dakota and Nebraska, "Frankly, I don't see how a formula that allows people to make money off of other people's customers would survive at the end of the day. And unfortunately, that's how this formula is working out."

Joining Alliant and NorthWestern Corp. in the Midwest Coal Coalition (MCC) are MidAmerican Energy Holdings Corp. — a subsidiary of Warren Buffett's Berkshire Hathaway — as well as Wisconsin Energy Corp., Black Hills Corp., Minnesota Power, Otter Tail Corp. and MDU Resources Group, according to Hill and other utility officials.

Combined, the companies challenging the EEI deal service only a fraction of the country's population. With a little more than 6.3 million customers, they represent about 6 percent of investor-owned utility customers and about 4 percent of the nation's electricity users.

By contrast, most of the 30 electric utility companies at the center of the EEI agreement have nearly as large a customer base as the entire Midwestern coalition. Exelon Corp., for example, has the most retail customers in the country at 5.4 million, with PG&E Corp., FPL Group and Southern Co. not far behind.

But the coalition's small percentage of total customers does not matter so much when it comes to the power of the politicians located in the dozen or so Midwestern states they service, including Finance Chairman Max Baucus (D-Mont.), Agriculture Chairman Tom Harkin (D-Iowa), Democratic Policy Committee Chairman Byron Dorgan of North Dakota and Sen. Ben Nelson (D-Neb.).

True, but the small size of the disgruntled utilities does mean that only a modest tweak in the deal should be needed to satisfy them.

Those senators are already making a stand. Dorgan and Nelson have not been shy about calling for an outright alternative to cap-and-trade legislation that does not involve the trading of emission credits — an idea that first originated from MidAmerican officials. Harkin last month blasted the House formula, and the EEI-approved deal that went into it.

Well, Nelson has no bargaining power since he ain't gonna vote for the final bill.  But it might be worth giving him something IF he would agree to vote for cloture.

Baucus has been coy about what he will do when he takes a swing at the allocation issue in September. "First of all, I represent Montana, so I've got to represent my state as well as I possibly can," he said yesterday. "Second, we're just in the stage of getting information. It's why we're having these hearings. All the questions."

At the same time, Baucus' first question during yesterday's Finance Committee hearing was on this very issue.

According to Geoff Simon, a spokesman for Bismarck, N.D.-based MDU Resources, Dorgan and Baucus are not being swept up in the "euphoria" of just passing a climate bill. "I think these senators are absolutely point on in both the impact and what it would do to their state economies," Simon said.

EEI leaders are also pushing back, saying that their agreement came through an unanimous vote of about 80 power company CEOs and their work represents a consensus across nearly all 50 states. And they insist that critics of the agreement are largely a band of renegade power companies, some of which operate World War II-era coal plants that release 30 to 40 percent more carbon dioxide than newer models.

"We worked hard to come up with this compromise," said Lew Hay, the CEO of FPL Group Inc., which has more than 4.5 million customers in Florida. "It's a fragile compromise. It's easy to sit back and say whatever people are saying."

Defenders of the House bill question whether the critics are simply out to kill the legislation, which would result in U.S. EPA taking the lead with its own suite of climate regulations under a 2007 Supreme Court opinion — an almost certain losing scenario for all electric utilities.

And many of the companies that signed on to the EEI deal are also worried that the dissenters are just getting started. They caution that momentum on a climate bill would be undercut if more and more power plant owners start to speak up against the agreement that helped propel the House legislation, H.R. 2454.

"The fact EEI delivered a unified product, it's a huge accelerator to passage," said Jim Connaughton, an executive vice president of Baltimore-based Constellation Energy Inc. and the former lead White House environmental adviser to President George W. Bush. "If you undo that, what you're doing is willingly putting on the brake."

The toughest nut

EEI's January 2009 agreement was the byproduct of almost two years of closed-door negotiations launched after Democrats took control of the House and Senate and promised action on climate change. The electric utility CEOs said they were urged to come up with a consensus plan by Rep. John Dingell (D-Mich.), who at the time chaired the House Energy and Commerce Committee.

In their proposal, EEI requested Congress deliver 40 percent of the cap-and-trade system's emission credits for free. They picked 40 percent because that is the industry's contribution to the annual U.S. greenhouse gas inventory.

The power company trade association also tried to address concerns that their member companies were trying to make windfall profits by turning around and charging their customers for the allowance values they would receive for free, a problem encountered in the European Union's cap-and-trade program. Here, EEI suggested lawmakers direct the allowances to retail local distribution companies that deliver electricity to households across the country that are all regulated by state commissions, alleviating the windfall profits concern.

EEI territory map
The Edison Electric Institute counts more than 80 investor-owned utilities as members, with service territory across the United States. Click the map for a larger version. Map courtesy of EEI.

But the toughest nut to crack in the deal — and the one currently threatening to unravel — involved the formula for emissions credits. EEI split the difference between the coal, nuclear and natural gas companies. Under the EEI formula, the allowances were split 50-50 based on a company's historic emissions and retail sales.

Merchant coal generation would also get most of the remaining share of the allowances based on half of their emissions.

"We thought it was the most fair to the largest group of customers," said Bob Blue, head of government affairs for Dominion Resources Inc., a Richmond, Va.-based company that ran much of the underlying analysis that led to the EEI agreement.

For EEI, the deal was a watershed moment that brought together companies with a wide variety of fuel portfolios, from nuclear-dominant Exelon to Southern Co., which has significant coal and nuclear generating portfolio and four utilities that serve about 4.4 million retail customers across Alabama, Georgia, Florida and Mississippi.

House Democrats lined up behind the plan as well, starting with Rep. Rick Boucher (D-W.Va.), an influential moderate on the Energy and Commerce Committee. Then came Waxman and Markey.

EEI officials were close by as the bill worked its way through the House. Tom Kuhn, the group's executive director, stood in the doorway during the late night Energy and Commerce Committee markups in May. And EEI's senior vice president, Brian Wolff, a former top political adviser to House Speaker Nancy Pelosi (D-Calif.), worked the Capitol corridors, lobbying reluctant Democrats in the hours before the House adopted the bill on a narrow, 219-212 vote.

Tony Earley, the CEO of Detroit-based DTE Energy Co., as well as the current chairman of EEI, said that the utilities found success in the House debate because of their agreement on the allocation formula. It also helped that they were on record supporting an overall goal to curb greenhouse gas emissions 80 percent by 2050. "That position has been very helpful in getting people's attention," he said.

Sen. Tom Carper (D-Del.), a member of the Environment and Public Works and Finance committees, said he plans to fight to keep the EEI allocation formula in place in the Senate.

"I thought the utility industry did a great service by coming up with a compromise that all of them could live with," he said. "Most legislators are lay people. We can't be experts. We need for the industry to come up to us and say we think this is a fair compromise. They've done that. I think we should embrace it."

Take it or leave it?

But the formula doesn't do the trick for every utility, especially those most reliant on coal.

Many of the Midwestern utilities praise EEI for steering the debate away from President Obama's call earlier this year to auction off nearly all of the emission allowances. Still, one by one, they have been speaking up about the fact that, by their calculations, their customers are subsidizing other companies' customers' electricity bills.

For starters, MidAmerican claims the bill could raise electric rates for their customers as much as 25 percent if the House formula were to become law.

Minnesota Power, a Duluth-based company with about 150,000 retail customers in the state's northeastern corner, said the House bill would leave it short by about 4 million allowances. Those allowances would cost about $60 million per year, about the same as the company's annual operating revenue, according to Bill Libro, the company's representative in Washington.

"It's a pretty big number," Libro said.

Well, it's big to them — but it is peanuts in the grand scope of the bill, maybe 0.1% of the allowances.

As for Black Hills Power Co., which has 68,000 customers in western South Dakota, eastern Wyoming and Montana, it can expect price increases of 43 percent based on its own estimates of the House bill, said Linn Evans, the company's president and chief operating officer. And another subsidiary, Cheyenne Light, Fuel & Power Co., would see rates go up 37 percent.

"A lot of large EEI companies with interest in nuclear power… are willing to throw the rest of us overboard," said Simon of MDU Resources. The holding company — which joined the Fortune 500 list this year — owns one electric utility that serves almost 120,000 electric customers mainly in North Dakota, with some spill over into Montana, South Dakota and Wyoming. It also owns significant natural gas utilities in the area, and oil and natural gas pipeline and utility construction services.

According to Simon, many utilities who do not need the emission allowances are "rubbing their hands together" at what they might gain from the House bill's formula. EEI's Kuhn counters that the House legislation includes a "windfall" safeguard provision that won't allow any company to get more allowances than they need. But Simon and other critics say the language is too vague and does not specify the criteria EPA must use to bird-dog the cap-and-trade program.

"Some companies are just looking at this as 'Let's go, This is the best deal we can get.' And others, our viewpoint is, if the best deal doesn't work, what is the point of the best deal?" Simon said.

Several members of the Midwest Climate Coalition contend that they never signed on to the EEI agreement in the first place, either because of changes in leadership or insufficient details about the negotiations.

Libro said Minnesota Power did not tune in until after the House legislation was moving, in part because he was skeptical industry and the Democratic committee leaders would reach an agreement.

"Quite frankly, EEI doesn't have a long track record of working with either of the two members," he said.

As for MidAmerican, its executives were not even members of EEI during the negotiations. The company had stopped paying dues in early 2007 to protest the public statements of two EEI leaders at the time — PNM Resources CEO Jeff Sterba and Duke Energy Corp. CEO Jim Rogers. Both also had become top spokespersons in the U.S. Climate Action Partnership, a coalition of environmental groups and businesses with its own stance on climate legislation.

"This was a kick in the face," a Midwestern official said, explaining that the two CEOs had not given EEI members a heads up about their separate work, and they also left the impression they would side with U.S. CAP over EEI.

MidAmerican did rejoin EEI again this May, but it was well after the allocation negotiations were finished. The company's leaders have since spoken out against the House bill's allocation formula, including at an Energy and Commerce subcommittee hearing in June and again during an EEI board meeting last month in San Francisco.

Toeing the line

The Midwest Climate Coalition also counts some members who are not so eager to buck the EEI allocation agreement.

Officials from Oklahoma Gas and Electric Energy Corp. say they are trying to educate senators with coal-heavy generation portfolios about what the House bill means for their customers, according to spokesman George Baker. The company's subsidiary, OGE Electric Services, serves more than 765,000 retail customers in Oklahoma and western Arkansas.

"We are alerting our delegation, as other companies in the Midwest are, as to the actual impact of the Waxman-Markey bill to the customers," Baker said. "The companies on the coast seem to be in a great position. Companies in the Midwest seem to be in a very different position and their customers are expecting to bear the brunt of the Waxman-Markey bill."

EEI deserves credit for raising several other critical issues to the Senate about changes it wants to the House bill, Baker said, including a "price collar" — to make sure allowance prices do not go above a certain high or low. EEI also is pushing to water down the cap-and-trade program's 2020 emission targets, which currently sit at 17 percent below 2005 levels.

"The bottom line is the Midwest utilities need more allowances, and the other adjustments are important as well," he said, adding that Oklahoma Gas and Electric Co. is not trying to upset the EEI agreement.

Similarly, Allegheny Energy Inc., Ameren Corp., Great Plains Energy Inc., DTE and NiSource are all Midwest Climate Coalition members who still officially support the EEI language on allocations.

Becky Sczudlo, vice president of federal government affairs at Merrillville, Ind.-based NiSource, agreed with her colleagues that the House legislation unfairly penalizes coal. But she said her focus is on changing the Senate bill to deal with volatile compliance costs. "The bottom line is we need as many cost containment mechanisms as possible," she said.

CMS Energy Corp., a Jackson, Mich.-based utility, declined to comment on the House legislation's allocation formula but acknowledged playing a role in the Midwest Climate Coalition.

Duke Energy officials participated in the Midwest Climate Coalition earlier this year, but they have since distanced themselves from the group. Still, the company's stance on the House legislation and the EEI allocations remains subject to interpretation.

Rogers, the company's CEO, appeared at a news conference in the Capitol last month with Sens. John Kerry (D-Mass.) and Barbara Boxer (D-Calif.) to urge Senate passage of a climate bill. But Rogers has also suggested the House bill's allocation formula won't have complete traction in the Senate because of the roughly 25 coal states that will want to change the bill to their liking.

"We want to get that allocation right," said Duke spokesman Tom Williams. "And the House largely did that. Could it be improved, to further moderate, to really add to the transition period and make it less hard for consumers? Yes it could."

Williams insisted Duke was still on board with the EEI agreement. "We're not saying we're leaving EEI by any means," he said.

AEP, another big coal company, has not joined the Midwest Climate Coalition. Representatives from the Columbus, Ohio-based company, the third largest by way of retail customers at 5.2 million, did not respond to requests for comment on its views of the House climate bill.

'It's aging better than fish'

There are bets on both sides whether EEI can hold on to its coalition.

"It's aging better than fish," said Jason Grumet, a former energy adviser to President Obama who serves as executive director of the National Commission on Energy Policy. "These are like any compromise. Over time, people recognize that there are ways to perfect the compromise to their own advantage."

Grumet predicted "the basic architecture" in the House bill would likely remain in the Senate plan, including the 50-50 formula. "That core idea feels to me to be pretty robust," he said.

Others disagree.

"I'd expect it to fall apart at some point during this process," said Andrew Wheeler, the former Republican staff director of the Environment and Public Works Committee.

Wheeler, who now works now for B&D Consulting, expects a free-for-all among the power companies as the issue works its way through the Senate.

"What held all of them together on the House side is the fact they had this Senate debate," he said. "But when it comes to at the end of the day, credits are credits, and allowances are allowances, and people are going to be fighting tooth and nail to be getting their credits."

Sen. Kit Bond (R-Mo.) criticized the power companies for even trying to negotiate with congressional Democrats. Either way, he said, the electric utilities lose. "That's bargaining with somebody on how they're going to hang you," Bond said. "They'll hang you with minimal pain, or they'll torture you to death."

Several utility officials working to keep the EEI agreement intact maintain that the best way to deal with the Midwestern coal companies' concerns is to get more allowances. That is why EEI is pushing the Senate to increase the pot of credits from 35 percent to the group's original 40 percent level.

"The most important thing utilities can do is to get full allocation of the allowances," DTE's Earley said. "If we get 40 percent of the allowances, it will be far more beneficial than any change of the 50-50 formula."

CEOs linked to the EEI deal have been making their case with regular visits to the Capitol. Kuhn said he brought in three groups of corporate leaders last month alone, meeting with about a third of the Senate.

But the unhappy Midwestern utilities are lobbying too — and they think they have an advantage.

"Look, they cut the deals, they did what they had to do to get a bill through and lo and behold they passed it," said Alliant's Hill. "The dynamics are different in the Senate. In the House, we knew it'd be a closed rule. We knew all the deals would be made behind the scenes. But each senator is going to ask for a ransom compared to what the House members got. They're also designed to take a more careful close look at it. And they can say there's a lot of unfairness to the bill."

MDU's Simon said he did not have a problem if the Senate does not act on a climate bill this year.

"I guess you can look at it and say a 'no' vote is a good vote," he said. "I think if a bill gets defeated, that doesn't mean nothing will happen. I think those senators are willing to address something that is a more reasonable approach."

MidAmerican's campaign is taking place both in the Midwest and in Washington.

In Iowa, the company has been running print and broadcast ads critical of three House Democrats who voted for the climate bill: Reps. Leonard Boswell, Bruce Braley and Dave Loebsack. It is especially bitter for Boswell, who had prepared an amendment before the floor debate to change the formula to the company's liking. But Democratic leaders did not allow it.

The company has also taken its case to the White House, with a meeting in late July that included Obama energy adviser Carol Browner. MidAmerican's Jonathan Weisgall, vice president of legislative and regulatory affairs, insists that the company is not out to kill the climate bill.

"Our near-term goal is to help the Senate come up with a product that either is an alternative to the Waxman-Markey approach or is an improvement of the construction of Waxman-Markey," Weisgall said. "We're dealing with inequities facing coal generation. I think to say if you touch the formula, the whole thing comes apart and therefore your real agenda is to kill the bill is simplistic and it's simply not true. It reminds me of when people said if you speak out against the war you're not a patriot."

Note that Buffett's MidAmerican made some bad decisions that they hope to use this bill to fix (see "Why Warren Buffett Is Wrong About Cap and Trade").

Newsweek's Science Editor explains why climate change is "even worse than we feared" and how "a consensus has developed during IPY that the Greenland ice sheet will disappear."

Posted: 05 Aug 2009 05:17 AM PDT

http://rubatomusic.nl/Pictures/jaws.jpgAmong the phrases you really, really do not want to hear from climate scientists are: "that really shocked us," "we had no idea how bad it was," and "reality is well ahead of the climate models." Yet in speaking to researchers who focus on the Arctic, you hear comments like these so regularly they begin to sound like the thumping refrain from Jaws: annoying harbingers of something that you really, really wish would go away.

So writes Newsweek's Sharon Begley in one of the most thoughtful climate pieces ever to appear in a major national publication.  She makes the very case I did in my recent post (except without the hyperlinks — the Achilles Heel of MSM science writing).  For more on the International Polar Year, see The IPY: "Arctic sea ice will probably not recover" and their website.

The Begley piece is so outstanding — and so rare — I'm going to reprint it below:

Let me deconstruct the phrases above. The "shock" came when the International Polar Year, a global consortium studying the Arctic, froze a small vessel into the sea ice off eastern Siberia in September 2006. Norwegian explorer Fridtjof Nansen had done the same thing a century before, and his Fram, carried by the drifting ice, emerged off eastern Greenland 34 months later. IPY scientists thought their Tara would take 24 to 36 months. But it reached Greenland in just 14 months, stark evidence that the sea ice found a more open, ice-free, and thus faster path westward thanks to Arctic melting.

The loss of Arctic sea ice "is well ahead of" what the Intergovernmental Panel on Climate Change forecast, largely because emissions of carbon dioxide have topped what the panel—which foolishly expected nations to care enough about global warming to do something about it—projected. "The models just aren't keeping up" with the reality of CO2 emissions, says the IPY's David Carlson. Although policymakers hoped climate models would prove to be alarmist, the opposite is true, particularly in the Arctic.

The IPCC may also have been too cautious on Greenland, assuming that the melting of its glaciers would contribute little to sea-level rise. Some studies found that Greenland's glacial streams were surging and surface ice was morphing into liquid lakes, but others made a strong case that those surges and melts were aberrations, not long-term trends. It seemed to be a standoff. More reliable data, however, such as satellite measurements of Greenland's mass, show that it is losing about 52 cubic miles per year and that the melting is accelerating. So while the IPCC projected that sea level would rise 16 inches this century, "now a more likely figure is one meter [39 inches] at the least," says Carlson. "Chest high instead of knee high, with half to two thirds of that due to Greenland." Hence the "no idea how bad it was."

The frozen north had another surprise in store. Scientists have long known that permafrost, if it melted, would release carbon, exacerbating global warming, which would melt more permafrost, which would add more to global warming, on and on in a feedback loop. But estimates of how much carbon is locked into Arctic permafrost were, it turns out, woefully off. "It's about three times as much as was thought, about 1.6 trillion metric tons, which has surprised a lot of people," says Edward Schuur of the University of Florida. "It means the potential for positive feedbacks is greatly increased." That 1.6 trillion tons is about twice the amount now in the atmosphere. And Schuur's measurements of how quickly CO2 can come out of permafrost, reported in May, were also a surprise: 1 billion to 2 billion tons per year. Cars and light trucks in the U.S. emit about 300 million tons per year.

In an insightful observation in The Guardian this month, Jim Watson of the University of Sussex wrote that "a new breed of climate sceptic is becoming more common": someone who doubts not the science but the policy response. Given the pathetic (non)action on global warming at the G8 summit, and the fact that the energy/climate bill passed by the House of Representatives is so full of holes and escape hatches that it has barely a prayer of averting dangerous climate change, skepticism that the world will get its act together seems appropriate. For instance, the G8, led by Europe, has vowed to take steps to keep global warming below 2 degrees Celsius by reducing CO2 emissions. We're now at 0.8 degree. But the amount of CO2 in the atmosphere is already enough to raise the mercury 2 degrees. The only reason it hasn't is that the atmosphere is full of crap (dust and aerosols that contribute to asthma, emphysema, and other diseases) that acts as a global coolant. As that pollution is reduced for health reasons, we're going to blast right through 2 degrees, which is enough to ex-acerbate droughts and storms, wreak havoc on agriculture, and produce a planet warmer than it's been in millions of years. The 2-degree promise is a mirage.

The test of whether the nations of the world care enough to act will come in December, when 192 countries meet in Copenhagen to hammer out a climate treaty. Carlson vows that IPY will finish its Arctic assessment in time for the meeting, and one conclusion is already clear. "A consensus has developed during IPY that the Greenland ice sheet will disappear," he says. Cue the Jaws music.

Greenland disappear?  How is that possible?  That would be 15 to 20 feet of sea level rise by itself — just what "alarmists" like Nobelist Gore and James Hansen and Climate Progress have been saying for years.

With that kind of flooding, there won't be any beaches left for sharks to attack humans on.   Since Begley asked for it (well, maybe not this version), let's cue the music:

Having taken Watts down, Sinclair takes on EPA's Alan Carlin in his latest Crock of the Week video

Posted: 05 Aug 2009 05:10 AM PDT

South Korea, a 'developing' country, embraces 2020 emissions cap, with important implications for a global deal in Copenhagen

Posted: 04 Aug 2009 06:01 PM PDT

This guest post is by Julian L. Wong and Dan Sanchez at the Center for American Progress.

South Korea may not be outdoing the United States' clean energy commitments yet, but it has just announced intentions to adopt a 2020 emissions cap, the first developing (non-Annex I) country to do so. Reuters explains:

The government said it would choose a target this year from three options: an 8 percent increase from 2005 levels by 2020, unchanged from 2005, or 4 percent below 2005. Its emissions doubled from 1990 to 2005, the fastest growth in the OECD….  Officials said they marked a big commitment to head off an estimated 30 percent rise in emissions that would result if no action were taken.

One might argue if South Korea is really a developing country—it is considered one under the United Nations Framework Convention on Climate Change (UNFCCC), which was adopted in 1992, but was in 1996 subsequently admitted to the OECD, which is usually thought of as a club of the rich countries.

One might also question the choice of a 2005 baseline rather than 1990, which all the targets in the Kyoto Protocol are keyed to.  The reasoning behind the choice of a 2005 baseline is obvious from the quote above, which explains that South Korea's emissions have risen steeply in the years since 1990.  The result is that none of the three choices will result in reductions from a 1990 level.

Nevertheless, the symbolic significance of the announcement cannot be overstated–South Korea is the first non-Annex I country to indicate that it will adopt quantifiable emissions targets for 2020.  While the article notes that South Korea's commitment could be "voluntary," the 2020 timeframe suggests that the country may be open to a binding emissions cap in the December round of international climate talks in Copenhagen, where a successor to the Kyoto Protocol, which expires in 2012, will be negotiated and likely to cover the period of 2013 through 2020.

Why is South Korea doing this?

There are at least three reasons why South Korea is being proactive on climate action.  First, there is an economic stimulus motivation.  This announcement comes on the heels of a recently reported "Green New Deal" that South Korea's President Lee Myung-Bak has been campaigning for. That effort will spend $85 Billion, or nearly 2 percent of Korea's GDP, over the next five years on initiatives that will encourage energy efficiency, renewable energy including solar and wind power, carbon credit trading, hybrid cars and biofuels.   The desired outcome, according to FT, is that this spending will create 1.56 to 1.81 million new jobs, and "for South Korea to become the world's seventh most competitive country by 2020 in terms of energy efficiency."

Second is energy security.  South Korea is the world's second largest LNG importer, and the world's sixth largest petroleum importer. Given the country's heavy reliance on such fossil fiels it has also embraced several innovative technologies to achieve such a transition:

It also aims to increase use of hybrid cars, renewable and nuclear energy consumption, energy efficiency with light-emitting diodes and smart grids to achieve the target, which will cost 0.3 to 0.5 percent of GDP.

Third, the Reuters article mentions Korea's fear of 'climate tariffs' as one reason it has embraced this policy (See here):

But the government on Tuesday pointed to the future risk of border tariffs on South Korean exports. In a statement, the government said the European Union and other developed countries might punish some exporting nations that do not adopt tough greenhouse gas reduction targets.

South Korea, as the world's fifth-largest automaker, is heavily dependent on exports of manufactured goods and petroleum products to drive its economy.

Implications for Copenhagen

South Korea's announcement has several implications for international climate negotiations.  It suggests that the increasingly artificial distinction between Annex I and non-Annex I countries may be starting to break down.  At the very least, it points to the notion that a purely binary categorization between the "developed" and "developing" countries is starting to evolve into a framework that can differentiate between various degrees of development.

Just as importantly, South Korea's plan creates a model for how more industrialized developing countries might commit to global climate action—setting a pathway for a slow down in growth of emissions that eventually peaks at some future point, and then declines.

This adds pressure to the likes of Mexico, which like South Korea, is classified as a non-Annex I country under the UNFCCC, but was subsequently admitted to the OECD in 1994.  Indeed, Reuters is separately reporting that a senior Mexican environmental policy maker has indicated plans for Mexico to "put a detailed offer to cut the growth of its own greenhouse gas emissions on the negotiating table … in Copenhagen this year."  Mexico has already previously announced voluntary goals to reduce carbon emissions by 8% by 2012 from 2002 levels, and to launch a carbon emissions trading scheme by 2012, so there is good reason to believe in Mexico's stated intentions.

If South Korea and Mexico are the first non-Annex I countries which decide to play ball, which other transition economies will start to feel the heat to follow suit?  Costa Rica has made some overtures to becoming "carbon neutral" (thought what that means and how serious they are is uncertain) by 2021.  What about Singapore?  Or South Africa?  If we go down the list of relatively industrialized "developing" countries, how far down do we have to go before we reach Brazil or China?

In addition to asking which other non-Annex I countries are "gettable" for a global deal, we should hone in on the question of how we are going to "get" them.  To what extent can the same combination of economic opportunity, energy security benefits and fear of carbon tariffs be used as leverage to encourage other non-Annex I countries to commit to emissions targets?  What about highlighting the co-benefits to public health of reducing other harmful air pollution like SOx and NOx in addition to CO2 reduction?

It is certainly the case that developing countries would likely want to act on each of these different drivers for climate action, but stop short of wanting to frame those actions in terms of hard targets for quantified emissions reductions.  China, with its ambitious commitments to energy efficiency and renewable energy is just such a country that sees the value in diversifying energy supply, creating new innovative industries and improving both the bottom line and public health through more efficient use of fossil energy, but is unwilling to commit to absolute carbon emissions to solve a problem it genuinely and understandably sees as being caused by the West.

Perhaps an approach that quantifies the unilateral domestic green actions of developing countries in terms of effective emissions reductions, and that aggregates those reductions into a single figure that serves as a virtual "cap" that can be compared to caps from Annex I countries is one way to "get" the other non-Annex I countries on board.  The Center for American Progress has previously described such a concept as the "carbon cap equivalents" approach, which could be just the mechanism the world needs to accelerate the shift away from a binary understanding of developed-versus-developing countries that is outdated and divorced from the reality, and that acknowledges the far greater diversity of development amongst the world's nations and their corresponding capacity to address climate change.

Such a shift does not only not repudiate the concept of "common but differentiated responsibilities," but adds depth to its meaning because we are effectively calling for increased differentiation amongst countries, especially in the non-Annex I block.

NYT's Revkin persists in selling spin from long-wrong deniers that the IPCC overestimates the danger from warming, when the reverse is true

Posted: 04 Aug 2009 03:13 PM PDT

Environmentalists assert that the reports by the panel are watered down by a requirement that sponsoring governments approve its summaries line by line.

Some experts fret that the organization, charged with assessing fast-evolving science, has failed to keep pace with an explosion of climate research.

At the same time, scientists who question the likelihood of a calamitous disruption of the Earth's climate accuse the panel of cherry-picking studies and playing down levels of uncertainty about the severity of global warming.

"It just feels like the I.P.C.C. has gone from being a broker of science to a gatekeeper," said John R. Christy, a climate scientist at the University of Alabama, Huntsville, and a former panel author.

Ah, journalistic "balance," how scientifically — and morally — inappropriate you have become.  And quoting Long Wrong Christy?  Say it ain't so.

The above excerpt comes from the front page of today's NYT's "Science Times" section in a piece titled, "Nobel Halo Fades Fast for Climate Change Panel," by our old friend Andy Revkin.  Now one can objectively accuse the IPCC of many things, but overestimating or overselling the threat of global warming is just not one of them.  Quite the reverse.

The world's emission path this decade quickly soared higher than their worst case-scenario (see U.S. media largely ignores latest warning from climate scientists: "Recent observations confirm … the worst-case IPCC scenario trajectories (or even worse) are being realised" — 1000 ppm).

The IPCC has focused on a wide range of emissions scenarios without clearly explaining to the public the unmitigated catastrophe that faces us on the business as usual path:

As Dr. Vicky Pope, Head of Climate Change Advice for the Met Office's Hadley Centre explains on their website (here):

Contrast that with a world where no action is taken to curb global warming. Then, temperatures are likely to rise by 5.5 °C and could rise as high as 7 °C above pre-industrial values by the end of the century.

Instead of such clarity, the IPCC provides this sort of gobbledygook to the public and policymakers in its 2007 Fourth Assessment:

Best estimates and likely ranges for global average surface air warming for six SRES emissions marker scenarios are given in this assessment and are shown in Table SPM.3. For example, the best estimate for the low scenario (B1) is 1.8°C (likely range is 1.1°C to 2.9°C), and the best estimate for the high scenario (A1FI) is 4.0°C (likely range is 2.4°C to 6.4°C).  Although these projections are broadly consistent with the span quoted in the TAR (1.4°C to 5.8°C), they are not directly comparable (see Figure SPM.5). The Fourth Assessment Report is more advanced as it provides best estimates and an assessed likelihood range for each of the marker scenarios. The new assessment of the likely ranges now relies on a larger number of climate models of increasing complexity and realism, as well as new information regarding the nature of feedbacks from the carbon cycle and constraints on climate response from observations.

Oh yeah, Andy, that's "playing down levels of uncertainty about the severity of global warming."

The IPCC's blather makes it easy for journalists and deniers and anyone else who wants to downplay the results to focus on the low scenarios — without any indication whatsoever of the massive amount of clean energy the world would have to accelerate into the marketplace to get into B1.

In fact, we're headed toward 800 to 1000 ppm on our current emissions path — which Revkin knows — and the IPCC has few if any analyses of what that would mean for humanity, probably because most scientists simply can't believe humanity would be so stupid as to destroy the basis of its own civilization:  A livable climate.

Why does the IPPC lowball likely warming?  Despite its claim of including "new information regarding the nature of feedbacks from the carbon cycle," virtually none of the IPCC models used in the 2007 report model most (if any) of the following positive, amplifying feedbacks:

Even Hadley's model only includes only or two of those.

The IPCCs sea level rise estimate was so lowballed, so instantly out-of-date, that even the uber-lowballers of the Bush administration were forced to concede a mere one year later that the IPCC numbers were simply too out of date to be quoted anymore:

Far from cherry-picking the scariest studies, the IPCC's policy of shutting down scientific input long before the writing begins and their consensus-based writing process means the reports are basically dead on arrival.  Here's what we know about SLR now from the literature:

  • Science 2008:  "On the basis of calculations presented here, we suggest that an improved estimate of the range of SLR to 2100 including increased ice dynamics lies between 0.8 and 2.0 m."  The IPCC famously ignored increased ice dynamics in its projection.
  • Nature Geoscience 2007 looked at the last interglacial period (the Eemian, about 120,000 years ago) — the last time the planet was as warm as it soon will be again.  Seas rose 1.6 meters (5 feet) per century "when the global mean temperature was 2 °C higher than today," a rather mild version of where we are headed in the second half of this century.
  • Science 2007 used empirical data from last century to project that sea levels could be up to 5 feet higher in 2100 and rising 6 inches a decade.
  • Nature 2009 used coral fossil records from the last interglacial warm period 121,000 years ago (when sea levels ultimately reached 15 to 20 feet higher than now).  It concluded "catastrophic increase of more than 5 centimetres per year over a 50-year stretch is possible."  The lead author warned, "This could happen again."

But the IPCC is too slow and unwieldy to even issue on updated report on any of these subjects.

I do agree with part of Revkin's analysis — the part that warns the IPCC is becoming irrelevant.  As I noted in April ("Has the IPCC rendered itself irrelevant?"), you can go to their website and learn:

At its 28th Session (9-10 April 2008, Budapest), the Panel decided to carry out a 5th Assessment to be finalized in 2014.

2014?  How useless is that?

While glacial change may no longer be an apt term for what is actually happening to the world's glaciers, it is an ironically apt term for what has happened to the IPCC.

Originally the IPCC's assessments of the state of understanding of the science were going to be every 5 years, then that slid to every 6 years, and now we are apparently at 7 years between reports.

Pathetic for them.  Tragic for us.  Well, it would be tragic if the reports weren't so lame, so easily spun by deniers.

And speaking of deniers, why is anyone still quoting John Christy these days?  Isn't there any exception in the journalistic handbook for people who have been willfully wrong for so damn long.

Christy, of course, is one of the nation's few remaining seriously credentialed deniers (or, more accurately, a delayer, inactivist, and denier-eq), who has arguably been wrong longer than any other serious denier-eq and thus deserves our inattention and scorn (see "Should you believe anything John Christy and Roy Spencer say?"). [A denier-eq is someone who pretends to accept the science as laid out by the IPCC, but who advances arguments and policy proposals that are no different from those who deny the science.]

Is there any objective source in the world who might inform our opinion of Christy?  Yes.

In the Vermont case on the state's effort to embrace California's tailpipe GHG emissions standards, the car companies brought in Christy as an expert witness to rebut NASA's James Hansen (see here). In one footnote on the sea level rise issue, the judge noted, "it appears that the bulk of scientific opinion opposes Christy's position." By the way, for all you deniers/delayers/doubters/denier-eqs, let me quote further from the judge:

There is widespread acceptance of the basic premises that underlie Hansen's testimony. Plaintiffs' own expert, Dr. Christy, agrees with the IPCC's assessment that in the light of new evidence and taking into account remaining uncertainties, most of the observed warming over the last fifty years is likely to have been due to the increase in GHG concentrations. Tr. vol. 14-A, 145:18-148:7 (Christy, May 4, 2007). Christy agrees that the increase in carbon dioxide is real and primarily due to the burning of fossil fuels, which changes the radiated balance of the atmosphere and has an impact on the planet's surface temperature toward a warming rate. Id. at 168:11-169:10.

Christy also agreed that climate is a nonlinear system, that is, that its responses to forcings may be disproportionate, and rapid changes would be more difficult for human beings and other species to adapt to than more gradual changes. Id. at 175:2-174:11. He further agreed with Hansen that the regulation's effect on radiative forcing will be proportional to the amount of emissions reductions, and that any level of emissions reductions will have at least some effect on the radiative forcing of the climate.

Christy is (mostly) a delayer or denier-eq these days, now that his denier disanalysis has been dissed and the real science is well verified by real observation.

Indeed, Christy was wrong — dead wrong — for a very long time, which created one of the most enduring denier myths, that the satellite data didn't show the global warming that the surface temperature data did. As RealClimate wrote last year:

We now know, of course, that the satellite data set confirms that the climate is warming, and indeed at very nearly the same rate as indicated by the surface temperature records. Now, there's nothing wrong with making mistakes when pursuing an innovative observational method, but Spencer and Christy sat by for most of a decade allowing — indeed encouraging — the use of their data set as an icon for global warming skeptics. They committed serial errors in the data analysis, but insisted they were right and models and thermometers were wrong. They did little or nothing to root out possible sources of errors, and left it to others to clean up the mess, as has now been done.

Amazingly (or not), the "serial errors in the data analysis" all pushed the (mis)analysis in the same, wrong direction. Coincidence? You decide. But I find it hilarious that the deniers and delayers still quote Christy/Spencer/UAH analysis lovingly, but to this day dismiss the "hockey stick" and anything Michael Mann writes, when his analysis was in fact vindicated by the august National Academy of Sciences in 2006 (see New Scientist's "Climate myths: The 'hockey stick' graph has been proven wrong").

The Vermont judge concluded:

Christy criticized the Hadley and Canadian models, suggesting that they were extreme and were downscaled unreliably. Tr. vol. 14-A, 121:13-122:4 (Christy, May 4, 2007). Although Christy testified that he had used climate models, however, he did not claim to be an expert on climate modeling. Id. at 78:20-79:3. In fact, his view of the reliability of climate models does not fall within the mainstream of climate scientists; his view is that models are, in general, "scientifically crude at best," although they are used regularly by most climate scientists and he himself used the compiled results of a variety of climate models in preparing his report and testimony in this case.

Can't the media be as objective as a judge?

UPDATE:  A commentor makes the point that Revkin pits environmentalists saying the IPCC is watered down vs. scientists who say it oversells the threat.  Ironically Revkin quotes a top scientist, Christopher Field, founding director of the Carnegie Institution's Department of Global Ecology at Stanford University, in his piece on a secondary issue — "psychological and sociological research on how people act in the face of uncertain but substantial threats" when Field has been one of the most outspoken scientists on how the threat is much more dire than the IPCC says (see "AAAS: Climate change is coming much harder, much faster than predicted").

"We are basically looking now at a future climate that's beyond anything we've considered seriously in climate model simulations"….

The 2007 fourth assessment presented at a "very conservative range of climate outcomes" but the next report will "include futures with a lot more warming," Field said.

"We now know that, without effective action, climate change is going to be larger and more difficult to deal with than we thought."

UPDATE 2:  A reader emails me about the NYT headline, "Nobel Halo Fades Fast for Climate Change Panel," noting that in November 2007, the right-wing American Thinker wrote a piece beginning:

It has been less than a month but already the glow from Al Gore's Nobel Peace prize is tarnished.

Despite its many flaws, EIA analysis of climate bill finds 23 cents a day cost to families, massive retirement of dirty coal plants and 119 GW of new renewables by 2030 — plus a million barrels a day oil savings

Posted: 04 Aug 2009 01:31 PM PDT

Let's set aside for the moment that the Energy Information Administration (EIA) doesn't fully model the House climate and clean energy bill — they utterly ignore a major cost containment provision and the clean energy bank, while underestimating likely efficiency gains.

The EIA analysis, "Energy Market and Economic Impacts of H.R. 2454, the American Clean Energy and Security Act of 2009," still finds that the average cost to households from 2012 to 2030 (discounted) is $83! A fact sheet can be found here.

As The Hill wrote in "EIA says costs of climate bill modest at first":

The move by bill sponsors to give away pollution allowances rather than selling them appears to be a good one; the EIA credits the free distribution of credits with keeping energy costs from rising precipitously….

Electric bills would increase only 3 to 4 percent by 2020 under a carbon cap imposed by the bill.

Reuters reports that EIA finds the clean energy bill would "increase the energy costs of the average family by $142 a year in 2020 and by $583 in 2030," adding:

The estimate from the U.S. Energy Information Administration is in line with cost impact projections made by the Congressional Budget Office and the Environmental Protection Agency, and contradict claims by energy and business trade groups that consumers would pay thousands of dollars more a year under a government plan to fight global warming.

In fact, the only reason the energy costs rise so much in 2030 compared to 2025 is that the allowance distribution to regulated utilities phases out after 2025.  While the EIA is stuck in a relatively rigid analysis and reporting methodology, in the real world, the increased auction revenues would be given back to consumers, which would again offset their increased energy costs with tax cuts.  So while energy costs might jump post-2050, net impacts on consumers would not.

The EIA projects an allowance price of $32 per metric ton of CO2 equivalent in 2020 — about double what EPA and I project and 50% higher than CBO's projection.  Very unlikely.

The EIA has historically lowballed the prospects for energy efficiency, and here again they find a total drop in energy use under the climate bill of only about 3% in 2020 (3 quadrillion BTUs) and 6% in 2030 (6.5 quads).  According to the EPA analysis of the bill, Waxman-Markey lowers demand 7 quads in 2020 compared to business as usual, and 10.4 quads in 2030 (see "New EPA analysis of Waxman-Markey: Consumer electric bills 7% lower in 2020 thanks to efficiency — plus 22 GW of extra coal retirements and no new dirty plants").  That is similar to what the the American Council for an Energy-Efficient Economy (ACEEE) calculates for the savings from W-M's efficiency provisions — 5 quads saved in 2020 and 12.3 quads in 2030 (see "The triumph of energy efficiency: Waxman-Markey could save $3,900 per household and create 650,000 jobs by 2030").

If EIA had a decent model of energy efficiency, and if they had calculated the tax reduction from returning auction allowances back to consumers, I am quite certain that they would have again found the net cost to American families of close to a postage stamp a day even in 2030.

Even with all its flaws, the "total discounted GDP losses over the 2012 to 2030 time period" are a whopping 0.2%, which is pretty much what every major analysis of climate action finds ("Intro to climate economics: Why even strong climate action has such a low total cost — one tenth of a penny on the dollar").

EIA has some interesting findings of the bill's impact on how we use energy.

Even though they lowball energy efficiency — and don't even model Obama's big fuel economy deal in their main case — they find a savings in liquid fuel use in 2030 of some 320 million barrels, nearly 900,000 barrels of oil a day.

EIA finds that under W-M

… new coal bill without CCS beyond those that are already under construction are almost eliminated.  There is also a large increase in coal power plant retirements [and a 60% drop in coal use in power plants] by 2030 from current levels in the ACESA main cases, well above the 1% of existing coal capacity projected to retire in the reference case.

The fact sheet notes:

Nuclear power would expand dramatically without added financial assistance.

Whether that is good news to you or not, it does suggest that the Senate bill doesn't need to put many nuclear incentives into the bill.

New renewable capacity added from 2007 through 2030 under the bill is 119 GW — 38 GW higher than in the reference case.

Two final points.  First, EIA didn't even bother trying to model W-M's strategic reserve, which presumably would have helped lower costs.  My guess is that it was just too darn complicated for them to figure out.  It needs changing.

Second, like EPA (but unlike CBO), the EIA concludes that large numbers of international offsets will be purchased in the early years, which simply defies logic.  Since the EIA lowballs efficiency and fuel switching to natural gas in the bill, they overestimate allowance costs and hence offset purchases.

Mysteriously, the EIA notes:

One recent analysis doubts that even 150 MMT of international offsets will be used by 2020.

They never specify what recent analysis, but it is suspiciously similar to my conclusion here: "I doubt even 150 million tons of offsets will be used by emitters in 2020."  Since I haven't seen anyone else use a similar 150 MMT figure, I guess EIA reads my blog, even if they ignore its conclusions.

The bottom line:  Yet another analysis makes clear the House climate and clean energy bill would dramatically reduce greenhouse gas emissions and accelerate the clean energy transition at a very low cost. And this from an independent, nonpartisan agency known for underestimating the potential and overestimating the cost of clean energy.