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The Policy Tracker: Energy and Environment: May 2015

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May 2015

The Environmental Policy Project produces this weeklyPolicy Tracker: Energy and Environment to report on major national and state environmental issues, including land ownership, energy production, air and water regulations, endangered species, pollution and much more.

May 26, 2015

Congress holds hearing on a potentially endangered species

Click to read more aboutendangered species,environmental policy in Utah and theimplementation of the Endangered Species Act.

In May 2015, theUnited States House of Representatives Committee on Natural Resources held a hearing on the potential listing of the sage grouse, a bird found in the western United States, as anendangered species by theU.S. Fish and Wildlife Service. The hearing, titled "Empowering State Management of Greater Sage Grouse," was organized byRep.Rob Bishop (R-Utah), the chairman of the committee, who opposes "endangered species status" for the sage grouse.[1][2]

The testimony and the debate during the hearing centered on whether listing the sage grouse as endangered would inhibit economic activity in lands and habitats where the bird is found, as well as whether protecting the sage grouse is a worthwhile goal for the federal government.[1][2]

Bishop stated thatstronger protections for the sage grouse, similar to thespotted owl inOregon andWashington,could have a negative impact on economic development. The spotted owl, which receives federal protection as an endangered species, has been considered a hindrance on the timber industry of the Pacific Northwest by critics of theEndangered Species Act.[1][2]

Rep.Jared Polis (D-Colorado) highlighted the case of the heath hen, a prairie chicken similar to the sage grouse, that went extinct in 1932, arguing thatwithout federal intervention the sage grouse could face similar extinction.[1][2]

The testimony of others, such as Kathleen Clarke, the director of the Utah Public Lands Policy Coordination Office, focused on alternative threats to the sage grouse, including wildfires and invasive species, rather than whether human activities such as land development are to blame for the bird's threatened status.[1][2]

"As someone representing a state which has invested decades in sage grouse conservation, the relentless efforts to force more standardized and irrelevant mandates on the use of the land not only threatens the conservation of the species, but unnecessarily imposes hardship on the hardworking citizens of the West," said Clarke.[1]

A federal decision on the endangered status of the sage grouse is expected from theU.S. Fish and Wildlife Service in September 2015.

North Carolina judge halts approval of fracking permits in the state

Click to read more aboutenergy policy,fracking policy andenvironmental policy in North Carolina.

A judge inNorth Carolina stopped the approval offracking permits in the state,preventing the North Carolina Mining and Energy Commission from approving drilling until theNorth Carolina Supreme Court decides on a question related to the appointment of state government commissions. As of May 2015, no fracking permits had been approved before the judge's decision.[3][4]

JudgeDonald W. Stephens issued his decision inWake County Superior Court,stopping the commission from processing or approving applications forhydraulic fracturing (orfracking). Fracking is the process of injecting water, chemicals and sand into underground rocks to collectnatural gas andoil. The judge's decision argued in favor of waiting for the outcome of other cases pending in North Carolina before fracking permits are processed and approved.[3]

North CarolinaGovernorPat McCrory (R) signed a law in 2012 allowing permits to be issued for fracking.[3]

The North Carolina Supreme Court is expected to hear arguments in June 2015 on the appointment of state regulators to positions on state commissions. Although the case does not directly involve the commission tasked with the approval of fracking permits, it does discuss how state regulators may be appointed to the commissions that ultimately approve state permits such as those required for fracking.[3][4]

The fracking lawsuit was filed in January 2015 on behalf of those who argue that having theNorth Carolina state legislature appoint members to state commissions is unconstitutional.[3][4]

U.S. Senate Majority Leader encourages states to delay implementing federal climate plan

Click to read more aboutClean Power Plan.

United States Senate Majority LeaderMitch McConnell (R-Kentucky) has encouraged state governments to ignore theClean Power Plan, a proposed regulation that would expand the scope of theClean Air Act to significantly reduceCO2 emissions from power plants. Each state is required to implement feasible plans to reach the Clean Power Plan's target goal of reducing carbon dioxide by 30 percent (from 2005 levels) by 2030.[5][6]

McConnell has argued that the Clean Power Plan is "unfair" and "probably illegal," stating that the regulation would negatively impact energy production and make citizens pay more for their energy needs. "In reality, this proposed regulation would have a negligible effect on global climate but a profoundly negative impact on countless American families already struggling," McConnell said in an op-ed article.[5]

In September 2014, the Clean Power Plan waschallenged by a coalition of 12 states in theU.S. Court of Appeals in the District of Columbia. These states includeAlabama,Indiana,Kansas,Kentucky,Louisiana,Nebraska,Ohio,Oklahoma,South Dakota,South Carolina,West Virginia andWyoming.[7]

McConnell has called on state governments to refuse adopting a program to implement the Clean Power Plan before the judiciary has decided whether the plan is legal, and to allow theUnited States Congress (which, as of January 2015, has been controlled by Republicans) to push back against the law.[5][6]

"Refusing to go along at this time with such an extreme proposed regulation would give the courts time to figure out if it is even legal, and it would give Congress more time to fight back," said McConnell.[5]

May 18, 2015

Environmental group sues to have San Francisco water reservoir drained

Click to read more aboutenvironmental policy in California.

In April 2015, the California-based environmental group Restore Hetch Hetchy filed a lawsuit in state court to drain the Hetch Hetchy Reservoir, one of the largest water supplies for the nearly 2.6 million residents of the Bay Area nearSan Francisco. Constructed in 1923 as part of Yosemite National Park, the reservoir also provides electricity through the O’Shaughnessy Dam.[8][9]

The lawsuit, if successful, would raze the dam and drain the reservoir. According to Restore Hetch Hetchy, the reservoir violates a section of the California Constitution prohibiting the "waste or unreasonable use" of water and requiring the "beneficial use" of water for residents and the "public welfare." Specifically, the environmental group has argued that the reservoir is obstructing "scenic views" and prohibiting residents from using the area for recreation such as swimming and fishing. Draining the reservoir, according to the group, would "restore" the Hetch Hetchy Valley. "The time has come to have a conversation about the merits of restoration in a court of law," said Spreck Rosekrans, the executive director of Restore Hetch Hetchy.[8][9]

The lawsuit was immediately criticized by municipal and business leaders in San Francisco, which defeated aballot measure in 2012 that would have authorized an $8 million study analyzing the issue of draining the reservoir. The measure was opposed by CaliforniaSen.Dianne Feinstein (D), San Francisco MayorEdwin M. Lee and business leaders in Silicon Valley, andwas defeated at the ballot box, 77 percent to 23 percent.[8][9]

"Who needs a historic drought when there's a group that wants to tear down one of California's critical water storage and clean energy systems?" said Jim Wunderman, the CEO and president of the Bay Area Council, a group representing over 275 of the area's largest businesses.[8]

Proponents of the lawsuit, such as Restore Hetch Hetchy, have viewed their effort as an act of conserving the aesthetic beauty of the area, but opponents have argued that the lawsuit's goal is irresponsible at a time when the state is going through a historic drought. Restore Hetch Hetchy has said that restoring the area wouldattract visitors and generate billions of dollars from visitors and local businesses in the coming decades, while the San Francisco Public Utilities Commission, which operates the Hetch Hetchy system, has said thatrestoring the area would cost between $3 billion and $10 billion in public spending, or approximately$550 to $2,000 per year for each San Francisco resident.[8][9]

Colorado Governor orders greater state protection for the sage grouse

Click to read more aboutenvironmental policy in Colorado,endangered species andthe Endangered Species Act.

ColoradoGovernorJohn Hickenlooper (D) issued an executive order on May 15, 2015, toincrease the state's effort to protect the greater sage grouse, a bird that has been considered for federal protection under theEndangered Species Act.[10][11]

The plan wouldincrease coordination between state agencies to improve the bird's habitat on state-owned lands, specifically developing a habitat exchange program allowing property owners and ranchers to buy and sell "conservation credits" to land developers, including oil and gas companies, in order to reduce impacts on sage grouse habitats. Those property owners who take steps to preserve sage grouse habitats receive the credits for their efforts; land developers could then purchase the credits for new land development projects. The bird primarily resides in the northwestern part of the state. Updated local zoning rules in sage grouse territory and greater habitat protections in those areas are also a major part of the executive order.[10][11]

Since 2003, the Colorado Department of Parks and Wildlifehas spent $52.8 million to conserve roughly 80,000 acres of sage ground habitat, primarily through buying land forconservation. Under the executive order, the Colorado Oil and Gas Conservation Commission is requiredto track oil and gas production on or near sage grouse habitats.[10][11]

"We firmly believe that state-led efforts are the most effective way to protect and conserve the greater sage grouse and its habitat," said Hickenlooper in a press statement.[10][11]

Environmental groups such as the National Audubon Society and theEnvironmental Defense Fund have been supportive of the executive order; these groups advocate for habitat exchanges for potentially threatened species in other states. For proponents of greater oil and gas production, an industry that has been growing in Colorado due tohydraulic fracturing (or "fracking"), the presence of the sage grouse and government protections for the bird near energy-rich land are viewed as potential hindrances to energy production.[10][11]

Kansas repeals the state's renewable energy mandate

Click to read more aboutenergy policy in Kansas,Renewable Portfolio Standards andrenewable energy resources.

TheKansas State Legislature passed legislation to repeal the state'sRenewable Portfolio Standard (RPS), an energy mandate requiring utilities to generate 20 percent of their energy fromrenewable energy resources by 2020. In its stead, the legislature proposed that the goal be voluntary for the utilities rather than mandatory. The legislation is viewed as a compromise between wind companies and energy utilities in the state; a previous version of the bill would have required a 4.33 percent excise tax on renewable energy. The bill also reduced property tax exemptions for wind projects to just 10 years.[12][13]

Arenewable portfolio standard (RPS), also known as a renewable electricity standard, is a mandate intended to increase the amount ofrenewable energy production. Generally, renewable portfolio standards establish minimum requirements for the share of electricity received fromrenewable energy resources by a certain year or date. Usually, a certain segment of eligible renewable resources is chosen that best fits the needs of a state or a region's local preferences.

As of 2012, 30 states had an enforceable RPS. Additionally, seven states had voluntary goals for renewable electricity generation as of January 2012.[14]

The Kansas legislation was unveiled byKansasGovernorSam Brownback (R), who also signed the bill on May 28, 2015.[13]

Supporters of the bill have viewed theend of the mandate as an incentive for outside investors to participate in the state's renewable energy sector. Wind industry representatives in particular supported the bill after the excise tax was dropped, which would have been leveled against existing wind projects. Opponents of the bill, such as the Climate and Energy Project,criticized the mandate's repeal as a setback for the state's renewable energy sector.[15]

May 11, 2015

Hawaii legislature votes to have 100 percent of electricity from renewable sources by 2045

Click to read more aboutenergy policy in Hawaii.

State legislators inHawaii voted for legislation requiring the state to have100 percent of its electricity come fromrenewable energy by 2045. As of May 11, 2015, the bill had not been signed byHawaii GovernorDavid Ige, but if signed, Hawaii would become the first state to vote in favor of having its power sector generated completely by renewable energy resources.[16]

Hawaii's energy policy is driven bytraditional energy resources such asoil, which provides a majority of the state's electricity, although the use of renewable sources has been growing. According to the Hawaiian Electric Company, the state's only private utility company, the state hasmandated that 40 percent of its electricity be generated by renewable sources by 2030; renewable energy sourcesmade up 13.7 percent of electricity generation in 2012.[17]

According to the legislation's supporters, the mandate isan attempt to help lower the costs of energy for residents. "Local renewable projects are already cheaper than liquid natural gas and oil, and our progress toward meeting our renewable energy standards has already saved local residents hundreds of millions on their electric bills," said Chris Lee, the chairman of the Hawaii House Energy and Environmental Protection Committee, in a statement.[16]

In general, theinfrastructure for producing and delivering renewable resources is not as advanced as it is for energy generation fromtraditional energy resources, and theserenewable sources have often required subsidies to make them affordable. Energy generation from wind and solar has been growing steadily in Hawaii, but is limited by the small, independent grid systems of each island, which have high variability.Hawaii households also consumed about 34 percent less energy than the U.S. average in 2011, but theyspent 23 percent more for energy than the U.S. average the same year.[17]

Utah water audit shows problems in calculating water needs

Click to read more aboutenvironmental policy in Utah.

In May 2015, Utah state officials released an audit of the Utah Division of Water Resources at the request of theUtah State Legislature. The audit found that the divisiondid not have accurate data on local water use and that its projections for future water use in the state relied on old data. The audit emerged after the division asked for more revenue for a dam project on the Bear River and construction for a new pipeline near the state's Lake Powell.[18]

Several environmental groups supported the audit and its conclusions, such as the Utah Rivers Council, the Utah chapter of theSierra Club and the Utah Environmental Congress.[18]

Specifically, the audit found thatthe process for collecting water data in the state was unreliable, leading to inaccurate data on local water usage. In particular, the audit critiqued the division's use of data from 1992 to 1999 to evaluate the state's future water needs. The division projected that Utah residents would consume an average of 220 gallons each day through 2060, even though the state'sconservation of water has been reducing Utah's water use.[19]

In response to the audit, the Utah Division of Water Resources said thatit would work with the state legislature to produce a more standardized method to collect water data. The division also stated that further, voluntary conservation efforts by citizens would be needed to prevent Utah from experiencing a drought similar to the one inCalifornia.[18]

The audit, conducted by the Office of the Legislative Auditor General in Utah, did not comment on the appropriateness of the Bear River dam project or the proposed pipeline.[18]

Ohio asks for assistance from neighboring states to combat toxic algae

Click to read more aboutenvironmental policy in Ohio,Michigan andIndiana.

Ohio has asked neighboring states such asIndiana andMichigan to look into thesources of toxic algae that has been blooming in western Lake Erie and contaminating drinking water supplies in the state.[20]

Water pollutants flowing from farms, septic tanks and wastewater plants in Indiana and Michigan (particularly at wastewater facilities inDetroit) into Ohio lakes have been providing nutrients to toxic algae blooms. The vast majority of these pollutants, such as phosphorus, have ended up in tributaries from a variety of sources not located in Ohio.[20]

In May 2015,Ohio GovernorJohn Kasich and Ohio's environmental director called on Indiana and Michigan to cut down on the sources of these pollutants. "I think everybody really understands that we need collaboration," said Craig Butler, the director of the Ohio Environmental Protection Agency.[20]

In 2014, Ohio began regulating livestock manure and farm fertilizers after a study found thatmost of the lake's phosphorus had come from agriculture. Northwestern Ohio farmers are banned from spreading manure on fields with snow or rain. Michigan has adopted a voluntary program to get farmers to keep pollutants away from waterways. In 2015,the states will draw from a $17.5 million federal fund to install grass and other coverings to absorb the phosphorus.[20]

Toxic algae blooms have thrived in waters where oxygen is depleted and in which fish cannot survive.The problem of toxic algae began in mid-2014, when unsafe levels of toxins appeared inToledo, Ohio, drinking supplies.[20]

May 4, 2015

Indiana wind power could get boost from new EPA rules

Click to read more aboutenvironmental policy in Indiana,energy policy in Indiana and theClean Power Plan.

Indiana'swind energy sector could receive a boost as a result of theClean Power Plan, a series of rules oncoal andgas-fired power plants from theU.S. Environmental Protection Agency (EPA). The plan's limits oncarbon dioxide and othergreenhouse gas emissions could drive demand for greater wind power production.[21]

As of May 4, 2015,Indiana had 1,031 wind turbines on six wind farms, which could generate 1,744megawatts of electricity per year. According to theU.S. Department of Energy's projection of wind energy needs, five other states could see their wind power sectors grow as much as Indiana. Over the next decade, the state could see 2,000 more wind turbines added, generating more than 5,000 megawatts of electricity per year.[21]

Although greater demand for wind production could result from new restrictions on power plants,there are costs associated with greater investments into Indiana's wind sector. To achieve the expected growth in wind power production, the state government and other investors would haveto spend more than $10 billion (installing one wind turbine usually costs $2 million or more). Additionally, wind energy demand relies upon a federal tax credit fromCongress to wind developers in order to make wind a competitive energy resource (the federal wind tax credit expired in late 2014 and, as of May 2015, it had not been renewed).[22]

As of 2014,Indiana produced 3 percent of American wind energy, which was enough to power 321,000 homes; roughly 1,500 employees worked for Indiana's wind energy industry. Whether or not predictions for growing wind demand are confirmed, Indiana wind developers are looking at locations for new wind farms and gauging possible interest in wind power from electricity users. "Expansion is definitely possible," said Ryan Brown, an executive vice president of EDP Renewables, a company that controls roughly 40 percent of Indiana's wind farms.[21]

Texas legislators look to speed up environmental permit process

Click to read more aboutenvironmental policy in Texas.

TheTexas State Legislature is considering changing the way the state government issues environmental permits to industries and businesses, as some state legislators see the state's bureaucracy as a roadblock against economic development and new businesses.[23]

In April 2015, theTexas State Senatepassed Senate Bill 709, which would accelerate the process in which the Texas Commission on Environmental Quality hands out environmental permits to industries and businesses that emit air emissions or discharge into bodies of water. "We're losing a lot of jobs to surrounding states," saidState Sen.Troy Fraser (R), noting that the environmental permitting process sometimes discourages large economic projects in Texas.[23]

Specifically, Senate Bill 709 wouldlimit "contested-case hearing," which allows the public to challenge the permit applications of particular industries proposing projects.Contested-case hearings give companies, citizens and groups an opportunity to present their evidence and testimony in front of an administrative law judge. They are often viewed as an opportunity to convince state regulators, who are allowed to make the final decision. As of May 4, 2015, theTexas House of Representatives had been considering a companion bill, House Bill 1865, that would approve similar limits.[23]

While industry groups have supported the legislation,environmental groups are generally opposed to changes to the permitting process, which they say allows individual citizens to comment on proposals for manufacturing centers, chemical plants, landfills and other projects that could impact the environment. "It's just like a tiny little thing we have," said Christy Muse, executive director of the Hill Country Alliance, an environmental group, commenting on the importance of contested-case hearings.[23]

On the other hand,some Texas industries have said that the hearings last too long and are abused by groups that want to slow down the permitting process. "Every major investment project is at risk of being contested, and this uncertainty in the regulatory environment is having an impact," said Hector Rivero, the president and CEO of the Texas Chemical Council.[23]

Texas is one of the few states that has the "contested-hearing" process. In a majority of states, state regulators only allow citizens to submit public comments before a vote on a permit is made.[23]

Minnesota report finds water quality problems in southern Minnesota waters

Click to read more aboutenvironmental policy in Minnesota.

A 2015 report from the Minnesota Pollution Control Agency (MPCA) showed thatat least half of the streams and lakes in the southern half of Minnesota contain high amounts of sediments, bacteria and other water pollutants. According to the report, these bodies of water are unsafe for swimming and cannot support aquatic life. The report on the state of southern Minnesota's lakes and streams comes aftervoters approved a2008 ballot initiative called the Legacy Amendment to raise state taxes in order to clean up rivers, lakes and streams. About 33 percent of the revenue collected goes to restore water quality, according to the text of the amendment.[24][25]

After the amendment was approved, the Minnesota Pollution Control Agency (MPCA) began monitoring rivers and lakes throughout the state's watersheds, which are areas in which all water is emptied into the same body of water. According to MPCA Commissioner John Linc Stine, the process is ongoing and will take more time. The agency'swater improvement strategies include placing buffers along streams and trying to keep water in one place rather than allowing it to run off the land. "The more water that can be retained on the landscape, the more beneficial our water quality results will be," Stine said.[24]

Lakes and streams in northeastern Minnesota have generally been cleaner than those in the southern half, which is home to more agricultural production and more cultivated land. Northwestern Minnesota had some impaired watersheds, while others were cleaner. According to the MPCA,water quality gets poorer the farther south one travels.[24]

The report also stated that more than 1,200 lakes had fish contaminated by mercury, while nearly 500 sections of streams also tested positive for mercury.[24]

As of May, 4, 2015, negotiations on legislation to improve water quality between theMinnesota House of Representatives, theMinnesota State Senate andMinnesota GovernorMark Dayton were ongoing.[24]

See also

Footnotes

  1. ↑1.01.11.21.31.41.5KSL.com, "Potential endangered species listing for sage grouse subject of debate," May 25, 2015
  2. ↑2.02.12.22.32.4U.S. House Committee, "Oversight Hearing on "Empowering State Management of Greater Sage Grouse," May 19, 2015
  3. ↑3.03.13.23.33.4Pittsburgh Post-Gazette, "Judge temporarily halts fracking approvals in North Carolina," May 21, 2015
  4. ↑4.04.14.2Eco Watch, "Judge Says No to Fracking," May 21, 2015
  5. ↑5.05.15.25.3Lexington Herald-Leader, "States should reject Obama mandate for clean-power regulation," March 3, 2015
  6. ↑6.06.1National Journal, "Mitch McConnell Has a New Plan to Block Obama’s Climate Agenda," April 29, 2015
  7. ↑The Viewpoint, "12 States Sue EPA Over Proposed Power Plant Regulations," September 15, 2014
  8. ↑8.08.18.28.38.4San Jose Mercury News, "Environmental group sues to drain Hetch Hetchy Reservoir," April 24, 2015
  9. ↑9.09.19.29.3KQED News, "New Lawsuit Seeks to Force San Francisco to Drain, Restore Hetch Hetchy," April 27, 2015
  10. ↑10.010.110.210.310.4Summit County Voice, "Colorado steps up sage grouse conservation," May 17, 2015
  11. ↑11.011.111.211.311.4The Hill, "Colorado governor orders protections for sage grouse," May 15, 2015
  12. ↑Associated Press, "New plan would end Kansas green energy mandate for utilities," May 4, 2015
  13. ↑13.013.1The Hill, "Kansas set to repeal renewable energy mandate," May 18, 2015
  14. ↑U.S. Energy Information Administration, "Most states have Renewable Portfolio Standards," February 3, 2012
  15. ↑Lawrence Journal-World, "Some Kansas environmental groups disappointed with clean energy compromise," May 17, 2015
  16. ↑16.016.1Green Tech Media, "Hawaii Passes Legislation to Go 100% Renewable," May 11, 2015
  17. ↑17.017.1Hawaii State Government, "Hawaii Energy Facts and Figures," accessed March 12, 2014
  18. ↑18.018.118.218.3Fox 13-Salt Lake City, "Controversial Utah water audit just released, findings causing concern," May 5, 2015
  19. ↑Deseret News, "Audit reveals flawed projections on Utah's water needs," May 5, 2015
  20. ↑20.020.120.220.320.4Seattle Times, "Ohio asks neighboring states to help fight Lake Erie’s algae," May 9, 2015
  21. ↑21.021.121.2Indianapolis Star, "Indiana wind power could get boost from new EPA rules," April 27, 2015
  22. ↑Utility Drive, "Report: Indiana poised for wind power growth," April 29, 2015
  23. ↑23.023.123.223.323.423.5Texas Tribune, "Lawmakers Move to Speed Permits, Limit Protests," April 30, 2015
  24. ↑24.024.124.224.324.4Inforum, "Report: Pollutants still plague southern Minnesota waters," May 2, 2015
  25. ↑Minnesota Legislative Reference Library, "Chapter 151," accessed July 15, 2014
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