New Study Deepens Case that Gas Exports at Cove Point Will Be Worse for the Climate than Coal

Methane leakage from existing natural gas infrastructure exceeds previous estimates, and will not be impacted by new White House methane regulations

WASHINGTON, D.C.—According to a new study released this week as part of an ongoing research effort by the Environmental Defense Fund, natural gas “gathering” facilities for piping and processing natural gas in the United States leak about 100 billion cubic feet of gas per year — a figure that is eight times larger than the EPA’s estimates and could make gathering facilities the biggest source of methane emissions in the oil and gas supply chain.

The gathering process consolidates gas from multiple wells in a single area and feeds it into processing plants or main transmission pipelines. When these emissions are taken into account, EPA’s estimates of the total emissions from the natural gas supply chain would increase by 25 percent, according to the Environmental Defense Fund. EPA’s current inventories conservatively estimate that natural gas infrastructure leaks methane at a rate of 1.3%. When overlaid with this latest report, that leakage rate would increase to about 1.6% — a level that makes US liquefied natural gas (LNG) worse than coal when exported to Asia when the climate impacts of methane leakage are measured over a 20-year timeframe.
Last year, the U.S. Department of Energy (DOE) released an environmental report analyzing the lifecycle greenhouse gas emissions resulting from liquefied natural gas (LNG) exports. Over a 20-year timeframe, DOE found that the lifecycle leakage rate would need to stay below 1.4% when exporting U.S. LNG to Asia.
Dominion Resources intends to invest $3.8 billion to export up to 5.75 million metric tons of LNG to India and Japan each year out of Cove Point, Maryland. These latest findings provide more evidence that domestic methane leakage rates are high enough to negate any climate benefits of exported natural gas when compared to regional coal-fired electricity in those countries. Furthermore, as the Chesapeake Climate Action Network explained in a white paper on the subject, if domestic leakage rates are higher than EPA estimates, or if the natural gas pipeline infrastructure in India or Japan leak methane at higher rates than U.S. pipelines, then the immediate climate impacts of LNG from Cove Point would be much worse for the climate than coal if exports began today.
This new EDF study comes on the heels of the Obama Administration’s first-ever proposed methane pollution standards for new and modified oil and gas facilities, a landmark announcement on August 18th that will blunt the projected growth of methane and smog-forming pollution produced by the industry. While the standards proposed by the administration would cover new and modified facilities, existing oil and gas equipment would be exempt from the rule, thereby allowing operators to continue to pollute our air with methane and toxic chemicals.
Mike Tidwell, director of the Chesapeake Climate Action Network, had the following statement:
“This new study on gas industry pollution emissions proves yet again that the Cove Point gas export facility in Maryland will be worse for global warming than burning coal. We now know the lifecycle methane and carbon emissions from U.S. gas exports will exceed total greenhouse gas emissions of coal burned overseas. As a result, the U.S. must immediately target both new and existing natural gas infrastructure in order to reduce climate-disrupting emissions from natural gas within a timeframe consistent with stabilizing global greenhouse gas emissions. It is shocking, meanwhile, that the natural gas industry continues to claim that federal emissions standards are unnecessary.
“We applaud the Obama administration for announcing steps this week for reinforcing its commitment to reducing climate change pollution by introducing the first-ever proposed methane pollution standards for new and modified oil and gas facilities. But this latest study from the Environmental Defense Fund on methane emissions from existing natural gas infrastructure makes it abundantly clear that much more needs to be done. Even with these new federal standards in place, existing oil and gas equipment will still be responsible for an estimated 90 percent of methane emissions in 2018.
“Federal standards targeting new oil and gas infrastructure are an important first step towards a comprehensive methane strategy. We hope that the President will use his remaining time in office to introduce equally stringent standards on existing oil and gas infrastructure so that the U.S. can finally have a national framework in place to limit methane emissions from all natural gas operations.”

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The Chesapeake Climate Action Network is the biggest and oldest non-profit organization dedicated to fighting climate change in Maryland, Virginia and Washington, D.C. We’re building a powerful movement to shift our region away from climate-harming fossil fuels and to clean energy solutions.

Hands Across Our Land Takes Richmond. Calls on Governor McAuliffe to Do His Job

This post was authored by CCAN’s new volunteer Richmond Pipeline Coordinator, Chelsea Norman.
“Stand With Virginians, not with Dominion” — that’s what echoed through the streets of downtown Richmond on Tuesday as CCAN and our allies participated in the first Hands Across Our Land pipeline resistance march.
This August marks one year since the first informational meetings Dominion Power held in Augusta, Buckingham, and Nelson counties for their proposed Atlantic Coast Pipeline. It also marks one year of growing pipeline resistance across Virginia.
I started as a volunteer with CCAN a week ago, and the dedication to protecting Virginia’s climate from shortsighted fossil fuel projects like these is abundantly clear. Made up of landowners and their allies, business owners, faith leaders, students, lifelong climate activists, artists, and concerned citizens, a community has been born that is resisting new natural gas infrastructure right in the heart of Dominion-ruled Virginia.
Three proposed pipelines: Atlantic Coast Pipeline, Mountain Valley Pipeline, and the lesser known Atlantic Connector — together these spell disaster for our lands, our coast, and our climate. That’s why over fifty people came out to join hands Tuesday and urge Governor McAuliffe to withdraw his support of these disastrous pipelines.
Two of the inspiring people that came out Tuesday were Will Barr and his mother-in-law Lisa Tulley, who are currently being sued by Dominion for denying the company approval to survey their land. Surveying seems like such a small act, but in reality it consists of a myriad of inspectors, large crews on the property and digging for about a week’s time.
“For me, in addition to the environmental effects, it’s about property law. It destroys the community, it’s dangerous and I can’t control what’s happening to my own property — something I’m supposed to be able to protect.” Barr and his wife own eight mountainside acres in Nelson County’s Horizon EcoVillage. The Atlantic Coast Pipeline will cut across their property, along with eleven other lots in the village and 40 acres of public land. According to Barr, spreading across these lots is a wetland that hosts a rare tree breed as well as an endangered species that Dominion’s environmental representatives plan on trapping,. Barr’s mother-in-law is particularly concerned about water: “It’s going to intersect five aquifers that serve our well system. My biggest concern is the quality of our drinking water. What happens if there’s a leak?”
Today’s event was one of 15 Hands Across Our Land events across Virginia – including one in nearly every county threatened by these proposed projects, and one of 30 nationwide. This coordinated day of action was conceived by organizers at the Blue Ridge Environmental Defense League and supported by dozens of Virginia groups. The Richmond event was coordinated by BREDL, CCAN, Virginia Sierra Club and the Virginia Student Environmental Coalition (in their first major action of the new school year).
https://twitter.com/BelEsprit92/status/633681476651982848/video/1
 
As a unified community we stood, hands clasped, banners waving, and urged Governor McAuliffe to withdraw his support of the Atlantic Coast Pipeline and Mountain Valley Pipeline.  He has said before that there is nothing he can do about these pipelines, but that is far from true. He can stand with Virginians, not with Dominion and their allies. He can stand with the property owners whose land will be destroyed and whose property values will plummet, and the low-income communities whose health will be impacted by compressor stations and other dirty infrastructure projects
IMG_20150819_001511James Freeman, a Richmond resident and Virginia mountain hiker was in the crowd today. In one hand he held a “Protect Our Virginia” sign and in the other he held the clearest symbol for Hands Across Our Lands – his eight-year-old son Dylan’s hand. “We must think of our future generations who will reap the repercussions of our decisions.”
What’s next? In September, we expect Dominion to file for the Certificate of Public Necessity and Convenience, i.e. their permit to start construction of the Atlantic Coast Pipeline. Virginians from Highland to Chesapeake are gearing up to respond, and so are we here at CCAN. Stay tuned for more.
 

Judge Orders Public Disclosure of Dangerous Oil Train Shipments in Maryland

CSX and Norfolk Southern lose unprecedented lawsuit aimed at keeping records secret

BALTIMORE—A state judge ruled Friday that Maryland residents have a right to access information about the movement of dangerous and potentially explosive crude oil trains in their communities.
Rail companies CSX and Norfolk Southern had sued the Maryland Department of the Environment last summer to prevent the state from releasing information about the routes and estimated amounts of crude oil traveling through the state. But Baltimore Circuit Court Judge Lawrence Fletcher-Hill ruled on Friday that the public has a right to access this information under the Maryland Public Information Act (PIA). In separate orders against CSX and Norfolk Southern, the judge found the rail companies’ arguments for confidentiality without merit. Judge Fletcher-Hill’s ruling will take effect September 4, 2015, pending appeals from the rail companies.
“This is a significant victory for transparency and for Maryland residents living along the path of oil trains,” said Anne Havemann, General Counsel for the Chesapeake Climate Action Network. “Judge Fletcher-Hill affirmed that communities have a right to know whether dangerous oil trains are running through their backyards. Shedding light on the risks is the first step toward stronger state and local action to safeguard our communities.”
After the federal government enacted an emergency “transparency” order last year requiring railways to alert states about upcoming shipments of so-called Bakken crude oil, the companies pushed states to sign nondisclosure agreements. Maryland was one of only 14 states that signed an agreement.
The lawsuit was triggered by a PIA request from news outlets McClatchy and the Associated Press and represented the first time a railroad had gone to court to prevent disclosure. CCAN, along with the Environmental Integrity Project, also filed a request for information under the PIA on August 8, 2014, asking for rail shipment information provided to MDE by CSX and Norfolk Southern.
The federal government has made clear that route information is not exempt from the federal sunshine laws. The most recent directive from the Federal Railroad Administration reiterated the government’s commitment to transparency. “Transparency is a critical piece of the federal government’s comprehensive approach to safety,” said U.S. Transportation Secretary Anthony Foxx. “And we understand the public’s interest in knowing what is traveling through their communities.”
Previously, advocates used mapping data and eyewitness accounts to estimate where the trains traveled through Maryland and Baltimore in particular. Analysis of the mapping data paired with census data indicates that 165,000 Baltimore residents live within the potential impact zone of an oil train derailment, as defined by the U.S. Department of Transportation.
The Maryland court ruling applies to trains carrying crude oil from the fracked oil wells of North Dakota. These trains have routinely derailed and exploded across the country. The worst explosion happened two years ago, when a train derailed in Lac-Megantic, Quebec, killing 47 people and incinerating 30 buildings.
The judge’s decision comes on the heels of a “Stop Oil Trains” rally and oil train public information hearing in Baltimore City in early July. Residents expressed their concern about the safety and health hazards of oil trains that already roll through the city in large numbers. One company shipped more than 100 million gallons of crude oil out of the Fairfield Peninsula in South Baltimore over the years 2013 and 2014 (up from zero gallons the previous two years). Other companies have applied for permits to build additional export facilities in the city.
Community, environmental, and public safety advocates are calling on the Baltimore City Council and mayor to pass an ordinance that would temporarily halt expansion of crude oil terminals until the city can study the health and safety risks of transporting the dangerous cargo through the city.
View Judge Fletcher-Hill’s opinion in CSX v. Maryland Department of the Environment: http://chesapeakeclimate.org/wp-content/uploads/2015/08/CSX-Transportation-Inc.-v.-MDE-Memorandum.Opinion.pdf
View Judge Fletcher-Hill’s opinion in Norfolk Southern v. Maryland Department of the Environment: http://chesapeakeclimate.org/wp-content/uploads/2015/08/Norfolk-Southern-Railway-Company-v.-MDE-et-al-Memorandum-Opinion-Order.pdf

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The Chesapeake Climate Action Network is the biggest and oldest grassroots organization dedicated to fighting climate change in Maryland, Virginia, and Washington, D.C. We’re building a powerful movement to shift our region away from climate-harming fossil fuels and to clean energy solutions.

 

Hampton Roads speak up! Share your climate change story with Flood of Voices

Today we, along with our partners at Virginia Organizing and Virginia Sierra Club, are inviting you to check out and join the “Flood of Voices,” a new website dedicated to the stories of coastal Virginians being impacted by rising tides and flooding, especially those whose voices are not normally heard.
See the stories your neighbors have contributed so far here.
Then, join the Flood of Voices by sharing your own! Click here to get started.

The Flood of Voices project began in March, when Virginia Organizing brought the South Hampton Roads community together for a series of events to share and collect stories of flooding in low-income neighborhoods.
Everyone has a story, from Tuere Brown (above) who was stranded on a washed out road trying to take students home from a flooded school, to Peggy Stamoulis, who put herself in the path of flood waters because she needed a job. These voices are important, and tell the story of daily life in Hampton Roads.
We know personal stories are the most effective way to inspire action and build a strong movement against climate change. CCAN, Virginia Organizing and Virginia Sierra Club are using these stories to educate and organize across Virginia and build the support we need to win solutions for our families — like passing the Virginia Coastal Protection Act. The stories of our neighbors in Hampton Roads play a huge role in influencing our legislators and show that climate change isn’t a crisis for our grandchildren, it’s a crisis for us right now.
On August 3, the Environmental Protection Agency released the final version of its Clean Power Plan. The Plan will reduce carbon emissions that are fueling climate change and sea level rise while increasing development of wind, solar and efficiency.
The EPA rules leave it up to Virginia to decide how to cut fossil fuel pollution. Over the past year, CCAN activists like you have been building momentum behind a win-win solution: Passing the Virginia Coastal Protection Act to join the nine-state Regional Greenhouse Gas Initiative, or RGGI. This bipartisan state legislation would cap carbon pollution in Virginia and raise up to $100 million annually to fund flooding protection measures in our hardest-hit neighborhoods.
In the U.S., the Hampton Roads region is second only to New Orleans as home to the most people at greatest risk from flooding caused by rising sea levels. Residents are already seeing the consequences – living on the front lines of climate impacts driven by fossil fuel industry pollution. Chronic flooding is forcing the raising of homes, roadways and naval infrastructure, and it’s only getting worse. Scientists predict that sea levels could rise by as much as seven feet within this century. In the event of a major storm, there is no effective plan to evacuate and shelter residents, even as warming ocean temperatures and longer hurricane seasons increase the risk of superstorms like Sandy.

We must act now to protect coastal Virginia from the impacts of climate change, and a “flood of voices” is rising up to demand change.

Everyone has a story to tell: how has flooding impacted your life? We want to know! Share your story with us by filling out this form and we’ll follow up with you.
 

CCAN Applauds Major Federal Step Forward on Climate, but Emphasizes that Md. Must Continue to Lead

WASHINGTON, D.C.—Today the Obama administration took the most significant federal action yet to tackle climate change, issuing final rules to cut carbon emissions from power plants by 32% by 2030 under the Clean Air Act.
Maryland is well-positioned to meet its state-level requirement for reducing emissions, thanks to climate and clean energy policies enacted over the past decade. The Chesapeake Climate Action Network notes that Maryland has a significant opportunity to lead in realizing the public health, consumer, and economic benefits of the federal Clean Power Plan by strengthening those existing state policies.
Mike Tidwell, director of the Chesapeake Climate Action Network, had the following statement:
“CCAN welcomes the Clean Power Plan and its goal to significantly reduce greenhouse gas emissions from power plants nationwide. Maryland is ahead of the curve in reducing harmful carbon pollution thanks to clean energy policies adopted over the past decade.
“But Maryland can and must do much more, especially as a state extremely vulnerable to the impacts of rising sea levels and smog. Maryland has significant progress yet to make on clean energy, and it starts with expanding our clean electricity standard to 25% by 2020. Increasing our reliance on wind and solar is the top recommendation for cutting greenhouse gas pollution under Maryland’s Climate Action Plan. It will lead to greater economic prosperity and healthier air.”
Contact:
Kelly Trout, 240-396-2022, kelly@chesapeakeclimate.org
Mike Tidwell, 240-460-5838, mtidwell@chesapeakeclimate.org

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The Chesapeake Climate Action Network is the biggest and oldest grassroots organization dedicated to fighting climate change in Maryland, Virginia, and Washington, D.C. We’re building a powerful movement to shift our region away from climate-harming fossil fuels and to clean energy solutions.

Clean Power Plan is Win-Win Solution for Virginia

Clean Power Plan Gives Va. Win-Win Way to Tackle Coastal Flooding While Saving Consumers Money

By joining proven regional system, Va. can cut emissions efficiently and generate $200 million annually to invest in solutions
RICHMOND, Va.—Today the Obama administration issued the first nationwide rules for cutting carbon emissions from power plants under the Clean Air Act. The “Clean Power Plan” standard represents the most significant federal action yet to tackle climate change, which is driving the sea-level rise already routinely flooding Virginia’s coastal communities. The final rules allow states to work together to develop regional compliance plans to reduce carbon dioxide pollution through 2030, and provide incentives to states who choose this option.
The Chesapeake Climate Action Network, joining a wide range of advocates across the state, believes that the best path forward for Virginia to meet the new federal standard is to join an existing nine-state pollution reduction system called the Regional Greenhouse Gas Initiative (RGGI).
By incentivizing investments in energy efficiency, the RGGI program is proven to save consumers money. By capping carbon pollution and requiring power plants to buy emissions permits, the market-based RGGI system would send much-needed funds back to Virginia. Virginia would receive about $200 million annually through 2030 to reinvest in solutions, such as flooding adaptation projects, energy efficiency, and job training.
Dawone Robinson, Virginia Policy Director at the Chesapeake Climate Action Network, had the following statement in response:
“Virginia has a win-win solution at its fingertips. Joining the nine-state Regional Greenhouse Gas Initiative is the smartest path forward for Virginia to lower emissions, while creating jobs and generating resources to invest in solutions. Over the past three years, RGGI has saved consumers $460 million, generated $1.30 billion in net economic value, and created 14,200 new jobs, all while reducing carbon pollution faster than the rest of the nation. Virginians currently pay some of the highest average electric bills in the country, primarily because we lag far behind on energy efficiency, a problem that RGGI resources would help solve.
“Notably, RGGI is the only plan on the table to jump-start a shared solution to sea-level rise in Virginia. Our coast needs a massive, coordinated investment to protect citizens, critical infrastructure, economic assets, and the world’s largest naval base from flooding that’s here now and only getting worse. Bipartisan legislation that would move Virginia into the RGGI system — a bill called the Virginia Coastal Protection Act — would help Virginia meet the requirements of the Clean Power Plan while creating the state’s first dedicated funding stream for flooding adaptation projects, which would also be a major job creator.
“The General Assembly has a huge opportunity to maximize the benefits of the Clean Power Plan by passing the Virginia Coastal Protection Act in 2016 and moving Virginia into RGGI.”
Background: The Virginia Coastal Protection Act is a bipartisan solution introduced in the 2015 General Assembly by Senator Donald McEachin of Richmond and Delegate Ron Villanueva of Virginia Beach. In 2015, the bill gained broad and high-profile support, including from the cities of Portsmouth and Virginia Beach, the Virginia Chapter of the American Association of Pediatrics, the Virginia Housing Coalition, and statewide environmental groups. The bill would join Virginia into RGGI and create the Commonwealth Resilience Fund to reinvest the funds generated into statewide climate solutions. A full half of the funds would help localities pay for flooding adaptation measures, while additional funds would support energy efficiency and clean energy programs statewide, as well as economic development in Southwest Virginia.
Contact:
Dawone Robinson, 804-767-8983, dawone@chesapeakeclimate.org
Kelly Trout, 240-396-2022, kelly@chesapeakeclimate.org

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The Chesapeake Climate Action Network is the biggest and oldest grassroots organization dedicated to fighting climate change in Virginia, Maryland, and Washington, D.C. We’re building a powerful movement to shift our region away from climate-harming fossil fuels and to clean energy solutions.

Baltimore City Council Moves to Endorse Statewide Fracking Ban

Committee advances resolution urging permanent ban on dangerous drilling; full Council hearing scheduled for August 17

Statement of ‘Don’t Frack Maryland’ Coalition Members Mitch Jones, Shilpa Joshi and Andy Galli

Baltimore, MD – On Tuesday, the Baltimore City Council took its first step toward urging a statewide ban on the dangerous practice of fracking in Maryland. After hearing public testimony, the Council’s Judiciary Committee voted 3-0 to advance a resolution calling on the state to place an outright ban on fracking due to its harmful health, environmental and economic impacts. The resolution currently has 13 co-sponsors and is scheduled for a vote by the full Council on August 17.
Earlier this year, the Maryland General Assembly passed a bill that prohibits the state from issuing fracking permits through October 2017. The bill became law this May. The resolution, introduced by Councilmember James Kraft last week, calls on the state to enact permanent protections for Maryland communities, noting, “There is no scientific research supporting claims that [fracking] can be carried out in a way that reduces health and environmental risks to an acceptable level.”
In response, several representatives of the “Don’t Frack Maryland” coalition issued the following statements:
“Just since the General Assembly approved a two-year moratorium important new public health studies have confirmed the risks fracking poses to our state,” said Mitch Jones, Senior Policy Advocate at Food & Water Watch. “Studies showing increased hospitalizations in heavily fracked areas, correlations between lowered birth weights for newborns and proximity to fracked wells, and the distance that air pollution from fracking can travel are just the latest in the mountain of research that shows fracking is dangerous to our health. Fracking’s impacts are widespread and don’t just affect people living next to fracked wells – which is what Baltimore realizes.”
“The Baltimore City Council is taking the right step for both communities and our climate,” said Shilpa Joshi, Maryland Campaign Coordinator at the Chesapeake Climate Action Network. “Studies show that fracked gas could be worse for the climate than coal because the fracking process leaks methane, a powerful greenhouse gas. With so much of Maryland’s economic activity at risk due to rising sea levels and growing flooding, we can’t afford to take steps backward toward another dirty fossil fuel.”
“Just as the City Council lead in 2013 with legislation to ban the treatment of fracking wastewater, they are leading again with a resolution to ask for a statewide fracking ban. Council members certainly understand the best way to protect Baltimore’s water and the public’s health from fracking is not to frack at all. We applaud their decision,” said Andy Galli of Clean Water Action.
Contact:
Kelly Trout, (240) 396-2022, kelly@chesapeakeclimate.org

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Background: More than 100 groups came together and worked tirelessly to empower Marylanders to form the Don’t Frack Maryland Campaign and fight for a long-term moratorium on fracking. During the 2015 General Assembly, more than 100 Western Maryland business owners joined this call, and Marylanders sent over 25,000 messages to legislators supporting a moratorium. Letters signed by more than 100 health professionals, and more than 50 restaurant owners, chefs, winemakers and farmers from across the state were also delivered to the legislature. Even actor and Maryland native Edward Norton helped the effort, providing a radio ad appealing to the Governor to sign the bill. Two commissioners of the “Marcellus Shale Safe Drilling Initiative,” released a letter in January outlining the commission’s study did not incorporate a great deal of the recently-released studies exploring the health effects of fracking.

Huge victory to keep ‘EmPOWERing’ Maryland

Last Thursday, the Maryland Public Service Commission (PSC) launched Maryland into the top tier of electricity-saving states by embracing one of the highest energy efficiency targets in the country. The order requires that Maryland’s electric utilities achieve annual incremental electricity savings of 2.0% of retail sales per year in perpetuity. The long-awaited decision, which CCAN’s policy experts pushed to make as strong as possible, gives a huge boost to the state’s “EmPOWER Maryland” program, which helps consumers save money while fighting climate change.
This is a big step forward with exciting promise — the new EmPOWER rules will require utilities to save over 1.2 million megawatt-hours per year. That’s the energy equivalent of closing a 460 megawatt coal-fired plant every two years, and will reduce carbon at levels equivalent to taking 173,000 cars off the road annually. To put that another way, the new EmPOWER rules will reduce carbon emissions at the same rate as building 470 megawatts of new wind power every year. That’s nearly three times greater than Maryland’s installed wind capacity today.
To put Maryland’s new goals into a national perspective, only two other states—Rhode Island and Massachusetts—achieved saving levels higher than 2% last year. In terms of future targets, Maryland’s new goals are among the top five in the country.
CCAN’s director, Mike Tidwell, was out in front of news coverage on the PSC decision, driving home its impact on WAMU and in the Baltimore Sun.
“The state of Maryland has just taken a huge step in showing that action on air pollution and climate change can go hand in hand with consumer savings,” said Tidwell, “The PSC deserves praise for hearing the public’s voice that efficiency is a win-win. We now hope other states will follow suit at this same high level.”

On Jan 17th, 2008, hundreds of activists rallied for climate action and solutions during the middle of a snowstorm in Annapolis.

In 2008, CCAN activists helped drive the campaign to pass the EmPOWER Maryland Energy Efficiency Act. That law, which set the goal of reducing energy use by 15% below 2007 levels by 2015, enabled consumer rebates and other incentives to invest in energy-saving measures. The PSC’s decision to expand and strengthen the EmPOWER program will ensure we continue making progress beyond 2015. This decision was three years in the making, and CCAN was an official intervenor in the PSC process, pushing for the strongest programs and goals every step of the way.
Looking ahead, the new EmPOWER rule will play a key role in meeting Maryland’s commitment to reduce global warming pollution by 25% by 2020 under the Greenhouse Gas Reduction Act. The state’s new efficiency commitment will help achieve Maryland’s Climate Action Plan. CCAN will be focused in the coming year on making sure we renew and strengthen other core elements of that plan — like continuing to increase our reliance on clean electricity sources like wind and solar.

RGGI Helps You Keep More $$$ In Your Pockets

Amazing things happen when states support the expansion of energy efficiency programs: electricity bills decline, fossil fuel pollution decreases, and the public at-large benefits. These were among the many conclusions of a highly anticipated report released last week by Analysis Group. The report studied the recorded costs and benefits of the Regional Greenhouse Gas Initiative (RGGI) from 2012 through 2014 to the nine northeast states that voluntarily participate.
RGGI is a cooperative effort that caps and reduces carbon emissions from power plants. Power plants in participating states (from Maine to Maryland) purchase allowances for every ton of carbon pollution that they emit. RGGI states agree on how many pollution allowances to offer for sale each year, setting a declining cap, and the revenue from the sale of allowances is returned to individual states. (For a background explanation of RGGI, see this CCAN fact-sheet.)
In short, the report states that directing resources to energy efficiency programs “stands out as the most economically beneficial use of RGGI dollars.”
These findings are important, particularly due to the report’s timing. In a matter of weeks the Environmental Protection Agency is expected to finalize the rules of the Clean Power Plan which will require Virginia to cut its carbon pollution by over one-third within the next fifteen years. RGGI is a solution to the Clean Power Plan and could provide Virginians with numerous other benefits as well.

Analysis Group Report: In Detail

One very important detail: This new Analysis Group report focuses solely on the economic costs and benefits of RGGI. The report acknowledges that RGGI was originally formed for the expressed purpose of reducing fossil fuel pollution to combat climate change. RGGI certainly has benefits to the environment, public health, and other areas that the researchers don’t consider as a part of the scope of this study. Analysis Group measured only the impacts of RGGI on the economy in the nine participating states.

On Energy Efficiency

RGGI states’ successful usage of energy efficiency investments paved the way towards $460 million in total electricity bill reductions for consumers in the past three years, while lowering carbon pollution faster than these states expected. The report concedes that there are many other ways states benefited by participating in RGGI, which includes both direct and indirect costs throughout the region. On the whole, Analysis Group found that the enormous benefits to consumers via energy efficiency resources created through RGGI dramatically outweighed the costs of participation in the program.
Specifically, the report found the following:

“RGGI-funded expenditures on energy efficiency depress regional electrical demand, power prices, and consumer payments for electricity. This benefits all consumers through downward pressure on wholesale prices, even as it particularly benefits those consumers that actually take advantage of such programs, implement energy efficiency measures, and lower both their overall energy use and monthly bills. These savings stay in the pockets of electricity users directly.”

In short, RGGI-supported energy efficiency dollars save consumers money. According to the latest data from the U.S. Energy Information Administration (EIA), the average residential customer’s electricity bills in the nine RGGI states is $108.43. That figure is nearly $17 lower than the average monthly residential electricity bill Virginians pay of $125.36. The national average is $111.08.
Why do customers in RGGI states pay lower electricity bills than customers in Virginia? The answer is simple: customers in RGGI states use a lot less electricity. Again referencing the latest EIA data, the average residential user’s energy consumption in RGGI states is 702 kilowatt hours (kWh) per month, far below Virginia’s average consumption in the residential sector of 1,156 kWh monthly. The national average is 909 kWh monthly.
Statewide energy efficiency programs like lighting and appliance upgrades, home insulation inspections and improvements, and general consumer efficiency education all help customers consume less electricity, which ultimately reduces customers’ bills and decreases fossil fuel generation and pollution. Customer bills in RGGI states are lower than the national average even though electricity rates in RGGI states are indeed higher than the national average. The important factor is electricity consumption, and it’s a fact that RGGI leads to less energy consumption and consumers in RGGI states use less electricity than Virginians.
Critics of RGGI and the Clean Power Plan argue that they’re too costly. However, independent studies and documented government data strongly suggest the opposite. If done correctly, Virginia can craft its plan of compliance in a way that is extremely cost-effective and actually lowers bills for consumers. RGGI is the smartest path forward for Virginia.

Other RGGI Benefits

Even though Analysis Group concludes that energy efficiency provided the most “bang for your buck” and produced the most direct economic value to consumers, the report points out that states have been increasingly more creative in the use of RGGI dollars to advance various state priorities.

“The states’ use of allowance proceeds not only provide economic benefits, but also has helped them meet a wide variety of social, fiscal and environmental policy goals, such as addressing state and municipal budget challenges, assisting low-income customers, achieving advanced energy policy goals, and restoring wetlands, among other things.”

Sea level rise from climate change is threatening our coast. Electricity bills in Virginia are among the nation’s highest. The EPA is requiring states to reduce their carbon footprint for the public’s health and welfare. It’s time for bold, yet practical solutions in Virginia to meet these challenges.
We can begin solving all of these problems by joining RGGI and wisely reinvesting our allowance resources in adaptation, energy efficiency, and other statewide priorities. The evidence is here. The program works. Now we need the wisdom and resolve to join our neighbors by becoming the 10th state participating in RGGI.

Maryland Adopts One of the Highest Energy Efficiency Targets in America for Electricity

PSC also commits to major gas efficiency

Environmentalists praise historic move: New policy is equivalent to retiring a major coal plant every two years or tripling the state’s existing wind farms annually

BALTIMORE—On Thursday, the Maryland Public Service Commission (PSC) launched Maryland into the top tier of electricity-saving states by embracing one of the highest energy efficiency targets in the country. The PSC also ordered, for the first time, that natural gas usage reduction goals will be adopted for all gas companies in Maryland. The long-awaited decision, incorporating input from a wide range of stakeholders, gives a huge boost to the state’s “EmPOWER Maryland” program, designed to help consumers while fighting climate change.
Thursday’s order requires that Maryland’s electric utilities achieve annual incremental electricity savings of 2.0% of retail sales per year in perpetuity. That is a significant increase over today’s levels. In 2013, Maryland achieved gross savings equal to 1.3% of retail sales. To put Maryland’s new goals into a national perspective, only two other states—Rhode Island and Massachusetts—achieved saving levels higher than 2% last year. In terms of future targets, Maryland’s new goals are among the top five in the country.
“The state of Maryland has just taken a huge step in showing that action on air pollution and climate change can go hand in hand with consumer savings,” said Mike Tidwell, director of the Chesapeake Climate Action Network. “The PSC deserves praise for hearing the public’s voice that efficiency is a win-win. We now hope other states will follow suit at this same high level.”
The impacts of the PSC decision on Maryland’s electricity grid and the resulting carbon reductions are significant. The new EmPOWER rules will require utilities to save over 1.2 million megawatt-hours per year.[1] That’s the energy equivalent of closing a 460 megawatt coal-fired plant every two years, [2] and will reduce carbon at levels equivalent to taking 173,000 cars off the road annually [3]. To put that another way, today’s new EmPOWER rules will reduce carbon emissions at a rate equivalent to building 470 megawatts of new wind power every year. That’s nearly three times greater than Maryland’s installed wind capacity today.
The Commission’s decision to extend the EmPOWER Maryland program to all gas companies is also a potential game-changer for energy usage and greenhouse gas emissions. While a handful of gas companies already offer some energy savings options to their customers, the state lacks a unified natural gas savings goal. Given that direct consumption of natural gas accounts for 10% of the state’s greenhouse gas emissions, reductions in this sector are imperative as part of a comprehensive climate change strategy. The PSC did not establish specific goals for natural gas in this order, but they did establish a timeline for developing those goals and prescribed certain minimum parameters that must be observed during the process. This order ensures that natural gas savings options will eventually be made available to customers statewide.
CCAN worked very closely with a large and diverse coalition of energy efficiency advocates to achieve Thursday’s important victory. We look forward to continuing our work with this coalition, the PSC, and other state actors to ensure these rules are fully implemented to achieve maximum energy savings.
View the PSC’s order at: http://167.102.231.189/case-decisions/order-no-87082-case-nos-9153-9157-9362-empower-md-energy-efficiency-goal-allocating-and-cost-effectiveness/
REFERENCES:
1. Maryland 2013 retail sales: 61,899,478 MWh per EIA-826, <http://www.eia.gov/electricity/data/eia826/>. 2% of 2013 sales is 1,237,990 MWh.
2. Based on 2014 annual coal capacity factor (60.9%) <http://www.eia.gov/electricity/monthly/epm_table_grapher.cfm?t=epmt_6_07_a>
3. Assumes offset emissions factor of 1,480 lbs/MWh. From the Maryland Energy Administration’s Greenhouse Gas Reduction Act analysis of EmPOWER
Contact:
Mike Tidwell, 240-460-5838, mtidwell@chesapeakeclimate.org
Kelly Trout, 717-439-0346, kelly@chesapeakeclimate.org

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The Chesapeake Climate Action Network is the biggest and oldest grassroots organization dedicated to fighting climate change in Maryland, Virginia and Washington, D.C. We’re building a powerful movement to shift our region away from climate-harming fossil fuels and to clean energy solutions.