Here's what you should know about this year's debate over California's cap-and-trade program

By Chris Megerian, Los Angeles Times. 

Battles over climate change policies have become an annual fixture at the state Capitol, and this year appears to be no different. Lawmakers are preparing to decide the future of the cap-and-trade program, the centerpiece of California’s battle against global warming.

Cap and trade is extremely complex, and so are the politics involved. Here’s a guide to the program and the brewing debate. 

What is cap and trade, and how does it work?

The program is intended to provide a financial incentive for companies to clean up their operations. The “cap” refers to an overall limit on greenhouse gas emissions, which becomes tighter over time. Before releasing emissions into the atmosphere, companies such as oil refiners and food processors must obtain permits. Some permits are given out for free by regulators and others are sold in state-run auctions. Revenue from the auctions is spent by California lawmakers on additional initiatives to further reduce emissions, such as on public transit. 

Permits are also bought and sold on a market — that’s where the “trade” comes in. In addition, companies can comply with the rules by investing in offsets, which are projects designed to reduce emissions by preserving forests or other strategies. 

The state law that provides the foundation for the program was enacted in 2006, cap and trade was approved by California regulators in 2011 and the first permits were auctioned off in 2012. 

Why are lawmakers debating this now?

State regulators at the Air Resources Board designed cap and trade to help California reduce greenhouse gas emissions to 1990 levels. Because the original law set a 2020 deadline to hit the target, there are legal questions about whether the program can continue past that date. Gov. Jerry Brown wants to clear that up by having the Legislature reauthorize cap and trade. 

The program is also facing a lawsuit over whether the permits that must be bought to pollute amount to an unconstitutional tax. Reaffirming the program with a two-thirds vote in both houses of the Legislature, the legal threshold for approving taxes, could help eliminate that threat. 

Two measures have been introduced so far, one more narrowly focused on extending cap and trade, the other seeking to refocus the state’s efforts on social justice. 

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USDA Renewable Energy Program Forecast

By Taite R. McDonald, Nathaniel T. Kron, and Isabel C. Lane, Holland & Knight.

HIGHLIGHTS:

As President Donald Trump's nominee for U.S. Secretary of Agriculture, former Georgia Gov. Sonny Perdue would also be in charge of the U.S. Department of Agriculture's (USDA) Rural Development Office and renewable energy programs. During his time as governor, Perdue was no stranger to initiatives that emphasized energy efficiency.

Although conservative publications have put forth proposals to eliminate the USDA's rural development programs, given the commitments that Trump made during his presidential campaign to increase rural broadband access and rural infrastructure, the Rural Development Office is likely to continue to play an important role in the USDA's mission.
In addition, the Agricultural Act of 2014 (2014 Farm Bill) statutorily set funding levels for the Title IX programs through 2018. Regardless of the change in administration, this funding provides a degree of certainty for these programs through this fiscal year and next.

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Dane County, Wisconsin Eyeing Landfill Gas to Energy System Upgrade

By Arlene Karidis, Waste 360.

Wisconsin’s Dane County has made electricity from waste for the local utility for decades, but may soon shift to a new plan—new to Dane and novel for the disposal niche at large. The county board is considering an $18 million upgrade to produce pipeline quality gas for the grid.

It’s hard to say how the project will pencil out financially because of an uncertain regulatory environment and energy market price fluctuations. So the county is taking a long look before spending the approved $18 million for the gas cleanup technology and pipeline injection equipment that would enable it to tap into an interstate pipeline. But it is anything but risk adverse, says John Welch, solid waste manager at Dane County Public Works.

Depending on the market, there could be a complete return on the investment within five years, and then the county could start turning a profit. On its current contract, the utility is losing money, with a bigger hit anticipated if it is renewed at its current terms.

“Our agreement with the utility ends in two years and we will be offered 3.5 or 4 cents per kilowatt rather than 7 or 9 cents. It costs us about 3.5 cents per kilowatt to produce the power,” Welch says. “And while capital costs vary, they are generally several million dollars.”

The biggest payback to upgrade would likely come from two sources: the value from federally allocated renewable energy credits, known as RINs (renewal identification number), and revenue from selling fuel to companies that own compressed natural gas (CNG) stations.

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Maryland considers bill to require study of organics processing infrastructure

By Cole Rosengren, Waste Dive. 

Dive Brief:

• A pair of bills have been introduced in Maryland's General Assembly that would require the state's Department of the Environment (MDE) to review the diversion of food and yard waste, including the availability of processing infrastructure, among other measures. The House bill, HB0171, is scheduled to have a hearing in the Environment & Transportation Committee on Feb. 8. The matching Senate bill, SB0099, had a committee hearing on Jan. 24.
• As written, the bill would require MDE to study existing organic waste diversion operations in the state, in consultation with other agencies and industry stakeholders. This would include looking at programs in other states, reviewing waste reduction strategies, considering a refuse fee to fund a grant program and considering processing options ranging from small-scale decentralized composting sites to large-scale facilities.
• If passed, this law would take effect on July 1, 2017. MDE would be expected to present an interim report by July 1, 2018 and a final report with recommendations by July 1, 2019.

Dive Insight:

Based on an executive order from former Governor Martin O'Malley, Maryland has a goal of diverting 60% if its organic waste by 2020. This is part of a larger goal of reaching 85% waste diversion and 80% recycling by 2040, which has been supported by current Governor Larry Hogan. According to a recent report, the state has an estimated 30 years of remaining landfill capacity and its per capita generation rate is higher than the national average. MDE could technically conduct this study at any time — and advised legislative staff that the proposed bill could be implemented using existing resources — but formally requiring it is seen as a necessary step.

"The goal of this current bill is to really shine a light on [the fact] that we still need to get people together to deal with specifically encouraging not only more diversion of yard waste and food residuals, but infrastructure," said Brenda Platt, co-director of the Institute for Local Self-Reliance (ILSR).

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Ontario Seeks Input On Renewable Fuel Standard Discussion Paper

By National Law Review.

On January 11, 2017, the Government of Ontario released a discussion paper titled “Developing a Modern Renewable Fuel Standard For Gasoline in Ontario,” which provides context for the new RFS requirements.  The discussion paper explains that Ontario aims to keep the following considerations in mind when designing the RFS policy:

• Ensure a level playing field for fuels, regardless of technology or origin;

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City of Phoenix and Ameresco host groundbreaking for wastewater treatment plant biogas project

By Francesca Brindle, Hydrocarbon Engineering.

Ameresco, Inc., a leading renewable energy and energy efficiency company, and the City of Phoenix have hosted a ceremonial groundbreaking event for the start of a multi-million dollar wastewater treatment biogas utilisation project at the 91st Ave wastewater treatment plant (WWTP). Once operational, it is expected to be the largest wastewater treatment biogas-to-renewable natural gas facility of its kind in the US. The attendees at the event heard from a variety of speakers including City leaders and Ameresco representatives.

Ameresco will design, build, own, operate and maintain (DBOOM) the wastewater biogas-to-energy facility. The WWTP is owned by the Sub-Regional Operating Group (SROG) made up of Phoenix, Glendale, Mesa, Scottsdale, and Tempe, and serves these cities. The WWTP is operated by the City of Phoenix. The 91st Ave biogas project, expected to be operational in late 2017, will process the raw biogas generated in the anaerobic digesters into renewable natural gas (RNG) that will be sold to the vehicle market through the nation’s natural gas pipeline grid. The biogas is a mixture of various gasses (mostly methane and carbon dioxide) produced through the anaerobic decomposition of organic matter delivered to the WWTP. With a project size of 3250 ft3/min. capacity, the project is expected to be the largest of its kind in the US.

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BioEnergy Hawaii to build a waste separation and anaerobic digestion facility

By Ken Silverstein, Environmental Leader.

Hawaii County Planning Department has approved a waste-to-energy plant that aims to reduce the amount of waste headed to landfills and instead to divert it to create energy. The Hawaii Tribune-Herald is reporting that BioEnergy Hawaii will lease about 15 acres to build a modern facility.

“The County of Hawaii Planning Department has reviewed the comments received during the 30-day comment period on the draft environmental assessment,” said Planning Director Michael Yee in a letter to the state, as reported by the paper. “We have determined that the project will not have significant environmental effects.”

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New Tennessee Valley Authority plant to add biogas to fuel mix

Tom Charlier, USA Today Network

After climbing to a platform some 40 feet above the busy, sprawling construction site he oversees, Dan Tibbs motions toward the east, to a point far beyond the boundaries of Tennessee Valley Authority's Allen Combined Cycle Plant in Southwest Memphis.

"The lagoons are over there," said Tibbs, manager of major construction projects for TVA.

Barely visible in the distance, the 30 acres of covered lagoons in the Frank C. Pidgeon Industrial Park are used in treating waste-activated sludge, primarily organic material filtered from sewage sent to the city of Memphis' T.E. Maxson South Wastewater Treatment Plant. It is there that the sludge undergoes a process called anaerobic digestion, in which microorganisms break down the solids, creating methane, carbon dioxide and other gases as byproducts.

But soon the lagoons will become something more than part of the waste-treatment process. With investments totaling up to $25 million, TVA and the city will turn them into sources of fuel for the $975 million electrical-generating facility that is slated for completion in June 2018 and will replace the coal-fired Allen Fossil Plant nearby.

The so-called biogas from the lagoons will be piped to the TVA plant and burned to generate an additional 5-6 megawatts of power, enough to serve 3,000-plus homes. Although that production might seem trifling compared to the overall 1,070-megawatt capacity of the plant, it will carry significant financial and environmental benefits, city and TVA officials say.

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Scott Pruitt Is Seen Cutting the E.P.A. With a Scalpel, Not a Cleaver

By Coral Davenport, The New York Times.

WASHINGTON — Scott Pruitt, President Trump’s pick to run the Environmental Protection Agency, is drawing up plans to move forward on the president’s campaign promise to “get rid of” the agency he hopes to head. He has a blueprint to repeal climate change rules, cut staffing levels, close regional offices and permanently weaken the agency’s regulatory authority.

But Mr. Pruitt, a lawyer who made a career suing the E.P.A., is not likely to start with the kind of shock and awe that Mr. Trump has used to disorient Washington. Instead, he will use the legal tools at his disposal to pare back the agency’s reach and power, and trim its budget selectively.

“Here’s my impression about Pruitt: I don’t think he’s going in there to blow up the agency,” said Jeffrey Holmstead, a senior E.P.A. official during the George W. Bush administration who has been mentioned as a possible deputy to Mr. Pruitt, and who has joined forces with him on lawsuits against the agency. “I think he’ll be very careful to make sure they’ve done everything legally to cross all the t’s and dot all the i’s.”

With a zeal that has shocked or thrilled much of the country, Mr. Trump has been making good on campaign promises that once seemed outlandish, and those pledges included a vow to dismantle the agency charged with protecting the nation’s air, water and public health “in almost every form.”

Myron Ebell, an internationally prominent climate-change denier who led Mr. Trump’s E.P.A. transition team, has recommended that the new administration slash the E.P.A.’s staff by two-thirds, to 5,000 from about 15,000. And the president has promised to “eliminate” former President Barack Obama’s major environmental regulations, including a global warming rule that was one of Mr. Obama’s proudest achievements and another major regulation to curb pollution in lakes, streams and rivers.

“Environmental protection, what they do is a disgrace,” Mr. Trump said after the election. “Every week they come out with new regulations.”

But in Mr. Pruitt, who is expected to be confirmed by the Senate this week, the president has tapped a surgeon, not a butcher, to fulfill those pledges. As much as anyone, Mr. Pruitt knows the legal intricacies of environmental regulation — and deregulation. As Oklahoma’s attorney general for the last six years, he has led or taken part in 14 lawsuits against the E.P.A.

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BC Liberals Leak NDP’s Climate Plan — A Plan Everyone Agrees Is Pretty Awesome

By Carol Linnett, Desmog Canada.

Leaked internal documents and theatrical political spin?

Nothing like a little intrigue to spice up your B.C. climate politics, amiright?

Just in case you weren’t aware, the race for political leadership in B.C. is on. With the May 9 election just three months away, it’s time for the mud-slinging to begin, I guess.

The BC Liberals aren’t wasting any time.

This morning the BC Liberals leaked internal NDP documents related to the official opposition’s climate plan — 90 minutes before NDP leader John Horgan was due to release the plan at a Vancouver press conference

Saucy.

(If you want to read Environment Minister Mary Polak’s bafflegab on the leaked documents, the Vancouver Sun gave her plenty of room here.)

But for those interested in the meat of the NDP’s actual plan to address climate change, there’s a lot in the documents that show the party is promising to take B.C. in a very different climate direction.

And in a rather hilarious twist, the very plan the BC Liberals leaked is now being praised by climate experts because it promises to actually reduce carbon pollution — something the current provincial government has consistently failed to do.

The NDP’s climate plan is also being praised precisely because it takes up the recommendations of Premier Christy Clark’s own Climate Leadership Team — a group of experts the premier hired to come up with a solid climate plan and then completely ignored.

One of the most striking aspects of the climate plan is its promise to unfreeze the provincial carbon tax, thereby addressing one of the most highly criticized climate moves of the B.C. government under Christy Clark.

“We are absolutely encouraged by this plan,” Josha MacNab, B.C. director of the Pembina Institute, told DeSmog Canada.

“It’s refreshing to see a commitment to reduce B.C.’s emissions and it’s encouraging to see the NDP take up the Climate Leadership Team’s recommendations because we know those recommendations offer a blueprint to actually meeting those emission reductions.”

The B.C. NDP plan is anchored in five guiding principles: reducing carbon pollution, increasing the carbon tax, keeping those increases affordable, investing in clean energy and regulating emissions on a sector by sector basis.

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