Table Of Contents

    President Obama’s Scientific Advisors Recommend Carbon Regulations

    Recommendations of the President’s Council of Advisors on Science and Technology (PCAST) for climate mitigation and adaptation were released March 22, and include the implementation of carbon emissions standards for existing power plants. “Mitigation is needed to avoid a degree of climate change that would be unmanageable despite efforts to adapt. Adaptation is needed because the climate is already changing and some further change is inevitable regardless of what is done to reduce its pace and magnitude,” PCAST stated in a letter to President Obama. The recommendations included curtailing the leakage of methane from gas production sites, reducing regulatory obstacles for the implementation of carbon capture and storage technologies, and steps for “leveling the playing field” for renewable energy through the tax code. The report also recommends exploring the possibility of a new North American climate agreement and implementing a quadrennial energy review. PCAST members include John Holdren, President Obama’s Science Advisor, and University of Michigan Professor and EESI board member, Dr. Rosina Bierbaum.

    For additional information see: The Hill , Sustainable Business , Press Release , Letter

    U.S. Fish and Wildlife Service Releases Climate Adaptation Guide

    On March 26, the Obama administration released the first national Climate Adaptation Strategy for natural resources and the people that depend upon them. The Congressionally-requested report, co-authored by the U.S. Fish and Wildlife Service and the National Oceanic and Atmospheric Administration, outlines seven key steps for how to reduce the impact of climate change on wildlife over the next five years. These measures include conserving habitat to protect animal and plant species, reducing non-climate stressors and enhancing capacity for effective management. Deputy Secretary of the Interior David J. Hayes said, “Rising sea levels, warmer temperatures, loss of sea ice and changing precipitation patterns – trends scientists have connected to climate change – are already affecting the species that we care about, the services we value, and the places we call home.” Economic impacts are also a concern, as wildlife recreation adds $120 billion to the economy each year, and the U.S. seafood industry is worth $116 billion each year. Input for the report included nearly 55,000 public comments from individuals, non-governmental organizations, government agencies, and tribes.

    For additional information see: USA Today , Press Release , Study

    Senate Budget “Vote-a-Rama” Includes Several Key Climate Amendments

    The Senate narrowly (50-49) passed the budget resolution for fiscal year 2014 (S.Con.Res.8) in the early hours of Saturday, March 23 – the first budget to pass the chamber in four years. Nearly 500 amendments were filed and a few dozen were voted on, but a handful of the votes offered perspective as to current opinion on federal climate change policies. An amendment offered by Sen. John Hoeven (R-ND) to acknowledge the positive economic and employment benefits of the Keystone XL pipeline (S.Amdt.494) won a symbolic victory when it passed 62 to 37. An amendment offered by Sen. Barbara Boxer (D-CA) to mandate further review of the Keystone XL pipeline (S.Amdt.622) was defeated with a vote of 33 to 66. The Senate also rejected an amendment 41 to 58 (S.Amdt.646) sponsored by Sen. Sheldon Whitehouse (D-RI) to ensure that all revenue from a fee on carbon was returned to American citizens in the form of reduced tax rates or deficit reduction. Sen. Roy Blunt (R-MO) offered an anti-carbon tax amendment to that would require any future carbon tax legislation to have a majority of 60 votes in order to pass (S.Amdt.261). A procedural maneuver by Sen. Patty Murray (D-WA) required the amendment to garner 60 votes to be approved, but the measure was rejected 53 to 46. An amendment introduced by Sen. James Inhofe (R-OK) to prohibit federal greenhouse regulations (S.Amdt.359) was also rejected by a vote of 47 to 52. Democratic Senators Mary Landrieu (D-LA), Mark Pryor (D-AR), and Joe Manchin (D-WV), voted in favor of the amendment, while Sen. Susan Collins (R-ME) was the only Republican to break rank and vote against Inhofe’s amendment. In a show of bipartisanship, an amendment introduced by Sen. Ben Cardin (D-MD) that requires that any carbon emissions standard is “cost effective, based on the best available science, and benefits low-income and middle class families” (S.Amdt.706) passed with a unanimous vote. Similarly, Sen. John Barrasso (R-WY) introduced an amendment (S.Amdt.184) that would allow any American export to bypass greenhouse gas regulations under the National Environmental Policy Act. The Senate Democrats allowed the amendment to pass unanimously because they felt it was already the law.

    For additional information see: The Hill – 1 , The Hill – 2 , Full Amendment List

    Northwest Governors Ask the President to Examine Climate Change Impacts in Coal Export Plans

    Governors John Kitzhaber (OR) and Jay Inslee (WA) have called for the Obama administration to assess the environmental impacts of coal exports to countries like China and India. Washington and Oregon are currently being considered for potential export terminals. “We believe the federal government must examine the true costs of long-term commitments to supply coal from federal lands for energy production, whether that production occurs domestically or in Asia,” the governors wrote in a letter on March 25 to Nancy Sutley, chair of the White House Council on Environmental Quality. The letter also states, “Given that the cumulative total of coal exports from Oregon and Washington could result in CO2 emissions on the order of 240 million tons per year, well above the significance level described in the draft guidance – it is hard to conceive that the federal government would ignore the inevitable consequences of coal leasing and coal export.”

    For additional information see: Bloomberg , Seattle Times , The Hill , The Olympian

    New York Warns Investors that Climate Change Is a Threat to State Bonds

    New York state bond offerings now carry a warning about the long-term financial risks posed by climate change, making New York the first state to caution investors. This comes in the wake of Hurricane Sandy, which caused over $40 billion in damage to the state, including the worst flooding in the New York City Subway system’s century-long history. Rich Azzopardi, a spokesman for Governor Andrew Cuomo, noted, “The extreme weather events of the last two years highlighted real and potential costs from extreme weather events. The state determined that the effects of climate change presented economic and financial risks.”

    For additional information see: New York Times , Bloomberg

    City of Palo Alto to Use Only Carbon-Neutral Power

    The City of Palo Alto voted March 3 to switch to entirely carbon-neutral sources of electricity, effective immediately. Because in Palo Alto electricity is provided by a municipally-owned utility, the city is able to focus on procuring electricity from solar, wind, and landfill gas projects and increasing energy efficiency. For the average household, the plan is projected to cost just $3 more annually. The city council’s decision is inspiring other cities to consider the model of municipally-owned utilities in order to move towards more sustainable forms of energy (see March 25 issue). "As a City, we've had cheaper, greener power for our citizens for decades,” said City Manager James Keene, “and being able to make this recent move to 100% carbon-free electricity is just another example of how owning our own utilities pays off."

    For additional information see: Sustainable Business , Los Angeles Times

    EU Delays Aviation Carbon Fee until April 2014

    The European Union (EU) agreed March 21 to delay its carbon tax on all international flights through April 2014. The carbon fee on aviation, part of an overall EU carbon reduction plan, was originally approved by the European Parliament in 2012. Since then, nearly every member of the International Civil Aviation Organization (ICAO) has strongly objected to the carbon tax, claiming that it violates international laws on commerce. The United States has also objected to the EU’s decision to tax the entire flight path under the carbon scheme, but has suggested that it may be willing to consider alternative plans (see March 4 issue).

    For additional information see: The Economic Times

    IMF Recommends Cutting Fuel Subsidies

    A report released March 27 by the International Monetary Fund (IMF) titled “Energy Subsidy Reforms: Lessons and Implications,” finds that, including the negative externalities from fuel consumption, international energy subsidies totaled $1.9 trillion in 2011. The IMF calls for the repeal of energy subsidies to avoid “the damaging effects of increased energy consumption on global warming.” The report concludes that removing the subsidies would directly reduce global carbon dioxide emissions 12 percent and could lead to other benefits by reducing energy demand. "It's painful to see nearly two trillion in public money going to subsidize something that is causing so much damage to the world's climate and our economies," said Durwood Zaelke, president of the Institute for Governance and Sustainable Development.

    For additional information see: New York Times , Washington Post , Report

    Investors Look for Companies that Can Benefit from Climate Change

    Companies and hedge funds have begun investing in projects and land that could see possible benefits from climate change in the future. Examples include the Dutch engineering firm Arcadis, which has procured mining rights for land previously covered by glaciers; the financial advising firm Land Commodities, which is recommending its wealthy customers invest in Australian farmland far from the rising sea levels on the coasts; and the Water Asset Management hedge fund in New York, which is buying water rights to prepare for possible future droughts. According to Water Asset Management’s Chief Operating Officer Marc Robert, “Not enough people are thinking long term of [water] as an asset that is worthy of ownership. [. . . ] Climate change for us is a driver.”

    For additional information see: Bloomberg Businessweek

    Environmental Groups and Industry Create Fracking Review Board

    The Environmental Defense Fund and the Clean Air Task Force, along with other environmental advocates, joined with Shell, Chevron, and two other energy companies to establish the Center for Sustainable Shale Development. The new center offers a voluntary certification of hydraulic fracturing operations based on compliance with 15 standards to encourage safer and cleaner drilling practices. If drillers want the approval of the center, the companies must agree to an audit where by independent experts inspect site operations and verify their compliance with new standards. Many environmental groups have questioned the practices of major drilling companies, and remain particularly concerned about the contamination of the air and water around drilling sites, as well as the release of methane, a potent greenhouse gas. The major drilling companies hope that the new standards allay these fears and reduce the concerns of land owners near drilling sites as well. “It’s quite frankly a game changer for the nation in terms of energy supply, and that's drawn to it a lot of attention,” says Bruce Niemeyer, head of Chevron's Appalachia unit. “In order to realize the benefits in the long term, as an industry we need to go about development in a responsible way.” Skepticism still exists, and some environmental groups, such as the Sierra Club, are not pleased with the new voluntary standards.

    For additional information see: NPR , U.S. News , Press Release

    Arctic Sea Ice Maximum Sixth Lowest on Record

    Arctic sea ice reached its maximum extent for the year on March 15, at 15.13 million square kilometers (5.84 million square miles) – the sixth lowest in satellite records. The maximum sea ice also signals the beginning of the new ice melt season. In 2012, the Arctic sea ice reached a record-breaking minimum of reflective sea ice, beating the previous record low set in 2007 by as much as 27,000 square miles, more than the area of West Virginia (see September 3, 2012 issue). “This is a wakeup call for world leaders. Without fast action now, we’ll lose all the Arctic sea ice and its ability to reflect heat back to space. This will set off a feedback loop that accelerates melting of permafrost and releases still more climate-warming gases,” said Durwood Zaelke, president of the Institute for Governance and Sustainable Development.

    For additional information see: Washington Post , National Snow and Ice Data Center

    Americans in Favor of Preparing for Climate Change

    On March 28, Stanford University’s Woods Institute for the Environment released the results of a survey on adaptation and rising sea levels, which found that 73 percent of Americans believe that climate change-associated sea level rise is a threat to the United States now and in the future, and that 82 percent of Americans believe the United States needs to begin preparing for rising sea levels. When asked what coastal communities should do, 62 percent said that need to be stronger building codes, and 52 percent said that new construction along coastlines should be prevented from going forward. More than 80 percent of Americans believe that local property and business owners should pay for adaptation, while 38 percent said the government should pay. According to the survey director Dr. Jon Krosnick, senior fellow at the Woods Institute, "People want preventive action, and few people believe these preparations will harm the economy or eliminate jobs. But people want coastal homeowners and businesses that locate in high-risk areas to pay for these measures."

    For additional information see: Los Angeles Times , USA Today , AP

    Study: Phrasing of Climate Polling Survey Questions Influences the Result

    A new meta-analysis of over 150 polls about climate change found that approximately 75 percent of Americans believe that climate change is occurring. Researchers from The Strategy Team, a public opinion consulting firm, analyzed questionnaires reaching as far back as 1986, and found that most variation between polls comes not from variation in concern, but from variation in wording of the questions. When question wording is taken into account, “Belief that global warming is happening has been mostly stable and increasing for the last thirty years,” stated study leader Dr. Orie Kristel, principal at The Strategy Team.

    For additional information see: USA Today