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Climate Change, EPA Rules Focus of McCabe Confirmation Hearing

Climate change, extreme weather and U.S. Environmental Protection Agency (EPA) rules to regulate greenhouse gas emissions from new and existing power plants were the focus of a confirmation hearing for Janet McCabe, President Barack Obama’s nominee to head the EPA’s Office of Air and Radiation.

In the hearing—at which lawmakers took jabs at one another on the impacts of climate change and criticized McCabe’s recent comments on extreme weather causes—the acting assistant administrator for air and radiation told the committee that if confirmed she would evaluate the full consequences of the EPA’s current and pending rules. She pointed to her work as a state regulator in Indiana, highlighting her sensitivity to the economic impact of environmental regulations.

“I come from Indiana, where people rely on coal,” she told the committee (subscription).

The Senate Environment and Public Works Committee has not announced when it will vote on McCabe’s nomination, which still requires approval by the full Senate.

Just a day earlier, EPA Administrator Gina McCarthy touted the draft rule for existing power plants, which is scheduled for release by June 1. “We are going to make them cost-effective, we are going to make them make sense,” McCarthy said at a conference. “That doesn’t mean it’s going to be so flexible that I’m not going to be able to rely on this as a federally enforceable rule.”

Flexibility for states was emphasized by McCarthy who insisted the EPA will give states the tools to curtail emissions that drive climate change and that the proposed rule will not threaten electric reliability or shutter large numbers of facilities.

EPA officials have met with more than 200 groups about the upcoming rule. Last week, the White House began its review of the rule—the final step before the EPA can publish it and gather formal comments from the public.

EIA Energy Outlook Predicts Decrease in Oil Imports

Net U.S. energy imports declined last year to their lowest level in more than 20 years, meaning U.S. net imports could reach zero within 23 years, according to the U.S. Energy Information Administration (EIA).

The finding is the first in a staged release of the EIA’s complete Annual Energy Outlook 2014. Future releases—running April 14 to April 30—will look at matters ranging from the implications of accelerated power plant retirements and lower natural gas prices for industrial production to light-duty vehicle energy demand and the potential for liquefied natural gas to be used as a railroad fuel.

Between 2012 and 2013, net energy imports decreased by 19 percent. The EIA cited increased growth in oil and natural gas production as the reason. Crude oil production grew 15 percent in 2013.

“In EIA’s view, there is more upside potential for greater gains in production than downside potential for lower production levels,” the report said. It noted that U.S. oil production should hit 9.6 million barrels per day by 2020.

Global Renewable Energy Investment Down as Tax Credits Resurface

Global investment in renewable energy fell 14 percent in 2013, according to a new report by the United Nations Environment Programme (UNEP), Bloomberg New Energy Finance and the Frankfurt School-UNEP Collaborating Centre for Climate & Sustainable Energy Finance. The drop in investment was attributed, in part, to energy policy uncertainty and the falling cost of renewable energy technology. The latter factor may seem counterintuitive but one of the report’s lead editors, UN energy expert Eric Usher said that the fall in the cost of the clean energy technologies, particularly solar, had “left some governments thinking that they had been paying too much and reviewed their subsidies.”

Even with investment down, the shift toward low-carbon sources hasn’t slowed. “The onward march of this sector is inevitable,” said Michael Liebreich of Bloomberg New Energy Finance.

Renewables accounted for 8.5 percent of power generated worldwide last year—up from 7.8 percent in 2012. Liebreich told Mother Jones that proprietary data about future investments suggest annual clean tech installations worldwide are likely to jump 37 percent to 112 gigawatts—a record level—by 2015.

Further incentives for renewables may be in the offing. Last week, the U.S. Senate Finance Committee approved a draft bill that includes some 50 temporary tax breaks, including one for renewable energy. The bill includes provisions for wind energy through an extension of the U.S. Renewable Energy Production Tax Credit, which was responsible for jumpstarting much of the last decade’s U.S. wind energy development. Provisions were also included for biofuel.

Congress is expected to pass the bill by the end of year, allowing businesses and individuals to continue to claim tax breaks on their 2014 taxes.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.