Last week the U.S. Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) issued a proposed rule to establish first-ever greenhouse gas (GHG) emission and fuel economy standards for “heavy duty” (HD) motor vehicles.
The proposed standards, which phase in during model-years 2014–2018, apply to three types of HD vehicles: (1) “combination tractors” (semi-trucks), (2) large pickups and vans, and (3) “vocational trucks” (a wide-ranging assortment of trucks and buses). The agencies estimate that the technologies needed to comply with the proposed standards will cost $7.7 billion but that the rule will generate $27 billion or $41 billion in net benefits (depending on whether future benefits are discounted at 7% or 3%).
Here’s the curious thing that jumps out at you from the getgo. Although the ostensible objective of the rule is to reduce GHG emissions and oil imports, the overwhelming share of the claimed benefits (fuel savings for truckers) has nothing to do with either climate change or energy security.…
Continue ReadingI’m often asked: what is the cleanest coal-fired power plant in the world? I am also asked: how “clean” is clean coal?
If emissions levels from a gas-fired combined cycle plant are the measure of “clean,” then there are emissions control technologies available today for coal-fired plants that can produce comparable emissions. To be sure, low emissions from coal-fired plants isn’t a technology problem, it’s a political problem.
Unit 2 at J-POWER’s Isogo Thermal Power Station is an exemplar for low emission coal-fired plants. The second unit at the plant entered commercial service in July 2009, so the plant has been in operation for about 18 months. The 600-MW ultrasupercritical unit 2 joins an earlier, similar plant built in 2002. Together, these two new plants replaced 1960s-vintage coal-fired plants and doubled power generation from the small project site.…
Continue ReadingYesterday’s election clearly demonstrates that the American people reject President Obama’s handling of the economy. Just as the 2008 elections were interpreted as a repudiation of President Bush’s agenda (particularly with respect to foreign policy), the 2010 mid-term election shows that America does not support President Obama’s domestic priorities.
Specific to energy and the environment, one clear message from the election is that cap-and-trade, top-down, command-and-control regulations are a losing argument with the voters. Candidates who voted for cap-and-trade, with few exceptions, ran away from that vote. Voters understand that cap-and-trade is a national energy tax.
With respect to energy policy, the election results will likely yield a modest and marginal improvement. While it will certainly not be the “environmental doomsday” that the national environmental lobby claims, unless the Republicans have truly changed their stripes, it will also not be the dramatic improvement that some predict or hope.…
Continue Reading