Nature red in tooth and claw

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• Nature red in tooth and claw
• (Tennyson, In Memoriam)
• This is also the poem from which come the lines,
  Tis better to have loved and lost than never to
  have loved at all.

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Announcements

• Homework 4 now online.
• Due April 22 at 10 a.m.
• Work together
• Memo 2 assignment handout. (Yellow)
• NO CLASS ON MONDAY, APRIL 13
• Grades (incl. quiz) will be posted this weekend.
• Please, please, please pick up your exams and
  memos. Do not forget. Do not forget. Do not
  forget. This means you.

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Starting Wednesday

• Attendance has dropped off a cliff.
• Students need to re-commit themselves to this
  class.
• Starting Wed. International environmental
  policy
• Montreal Protocol
• Kyoto Protocol
• U.S. climate change policy

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• Todays class
• Auto emissions regulations
• Policies to increase use of renewable energy
• Environmental policy (general)
• What are our policies? We have tried lots of
  things.
• Lessons learned. How to do things better.
• Policy principles
• Example from CAFE Policies to address multiple
  problems

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Emissions Clean Air Act

• Mobile sources
• Vehicles
• Fuel
• Fuels
• Standards may differ regionally
• Recall, this is about air pollution not fuel
  quantity or oil imports.

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Vehicles

• Criteria pollutant type of approach
• Existing vehicles
• State Inspection and Maintenance Programs
• New vehicles
• Emissions standards
• Nationwide (why?)
• NOx Require a 90 percent reduction by 1976
• Technology-forcing A policy that adopts a
  very strict standard in the hope that this will
  lead industry to come up with new technologies.

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• Sec. 202. (a) Except as otherwise provided in
  subsection (b)- (1) The Administrator shall by
  regulation prescribe (and from time to time
  revise) in accordance with the provisions of this
  section, standards applicable to the emission of
  any air pollutant from any class or classes of
  new motor vehicles or new motor vehicle engines,
  which in his judgment cause, or contribute to,
  air pollution which may reasonably be anticipated
  to endanger public health or welfare.

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• Massachusetts v. EPA (2002)
• Several states, cities, and environmental groups
  sue EPA.
• They argue EPA is required to regulate CO2 from
  mobile sources.
• Because of Section 202
• Decided April 2, 2007.
• One of the most important environmental
  decisions by the Supreme Court in years.
  (Adler)

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Renewable Fuel Standards

• Energy Independence and Security Act of 2007
• Low-Carbon Fuel Standard in American Clean
  Energy and Security (ACES) - Proposed
  legislation

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Renewable Fuel Standards

• Why renewable fuel?
• Fuel security
• Cost advantage (esp. in future)
• Carbon emissions (?)
• Other air emissions
• Renewable fuels and RFS policy are not
  necessarily the best response to any of these
  issues.

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Energy Independence and Security Act (2007)

• Applicable volume of renewable fuel (billions of
  gallons)
• 2006 4.0
• 2007 4.7
• 2008 9.0
• 2009 11.1
• 2010 12.95
• 2011 13.95
• 2012 15.20
• 2013 16.55
• 2014 18.15
• 2015 20.5
• 2016 22.25
• 2017 24.0
• 2018 26.0
• 2019 28.0
• 30.0

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• How are we going to do this?
• Goals vs. means

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Renewable Fuel standards

• Require X gallons of renewable fuel per year
  (overall in U.S.)
• Predict overall U.S. fuel production
• Figure out what percent of production X is.
• Each refinery must produce x percent renewable
  fuel.
• Tradable credits across refineries.
• How it works.

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Renewable Portfolio Standards

• A requirement that a certain percentage of
  electricity be generated using renewable sources.
  (Mostly wind and biomass.)
• Most states also have programs.
• Proposed Federal program
• http//energycommerce.house.gov/Press_111/20090331
  /acesa_discussiondraft.pdf (p. 10)

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Renewable Portfolio Standards, cont.

• Tradable
• Suppose the RPS requirement is 8 percent.
• If a utility generates 5 percent of its
  electricity using renewables, it buys credits to
  cover the remaining 3 percent.
• Federal requirement 6 percent in 2012

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Renewable Portfolio Standards, cont.

• Usually includes a safety-valve provision.
• Safety-valve In a cap-and-trade system, the
  safety value is a price at which participants can
  buy (from the administrator) as many credits as
  they want.
• Utility can pay 6 cents per kWh rather than
  fulfill the RPS standard.
• If the safety valve is invoked, the cap is
  exceeded.
• In a few programs, those credits are taken out of
  next years cap.

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Renewable Fuel Standards (RFS) and Renewable
Portfolio Standards (RPS)

• Advantages
• Doesnt favor any one renewable source.
• Disadvantages
• Does not cap nonrenewables
• Does not promote energy conservation or
  efficiency (maybe indirectly).

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