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Electricity: The Road Toward Restructuring [August 12, 2003]
"The Public Utility HoldingCompanyAct of 1935 (PUHCA) and the Federal Power Act (FPA) were enacted to eliminate unfair practices and other abuses by electricity and gas holding companies by requiring federal control and regulation of interstate public utility holding companies. Prior to PUHCA, electricity holding companies were characterized as having excessive consumer rates, high debt-to-equity ratios, and unreliable service. PUHCA remained virtually unchanged for 50 years until enactment of the Public Utility Regulatory Policies Act of 1978 (PURPA, P.L. 95-617). PURPA was, in part, intended to augment electric utility generation with more efficiently produced electricity and to provide equitable rates to electric consumers. Utilities are required to buy all power produced by qualifying facilities (QFs) at 'avoided cost.' QFs are exempt from regulation under PUHCA and the FPA."
Library of Congress. Congressional Research Service
Abel, Amy; Parker, Larry, 1954-
2003-08-12
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EPA's BACT Guidance for Greenhouse Gases from Stationary Sources [November 22, 2010]
"Stationary sources--a term that includes power plants, petroleum refineries, manufacturing facilities, and other non-mobile sources of air pollution--are not yet subject to any greenhouse gas (GHG) emission standards issued by the EPA; but because of the Clean Air Act's wording, such stationary sources will become subject to permit requirements for their GHG emissions beginning on January 2, 2011. Affected units will be subject to the permitting requirements of the Prevention of Significant Deterioration (PSD) and Title V provisions. For PSD, this will include state determinations of what constitutes Best Available Control Technology (BACT) that affected facilities will be required to install. On November 10, 2010, EPA released guidance and technical information to assist state authorities in issuing permits and determining BACT. Among the sources likely to be affected by implementation of the PSD permit requirements are new and modified electric generating units of all kinds, but particularly those fired by coal. These sources emit substantially more than EPA's threshold of 100,000 metric tons of CO2 annually: for example, a 500 megawatt (MW) coal-fired baseload power plant would emit on the order of three million metric tons of CO2 annually. The coal mining industry and coal-fired electric utilities face at least half a dozen major regulatory actions over the next few years; industry supporters view these rules collectively as a significant threat to the future of coal. Viewed in this context, the permit requirement is one more nail in what increasingly appears to them as coal's future coffin."
Library of Congress. Congressional Research Service
Parker, Larry, 1954-; McCarthy, James E.
2010-11-22
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Global Climate Change: Three Policy Perspectives [Updated November 26, 2008]
"The 1992 U.N. Framework Convention on Climate Change requires that signatories, including the United States, establish policies for constraining future emission levels of greenhouse gases, including carbon dioxide (CO2). The George H. W. Bush, Clinton, and George W. Bush Administrations each drafted action plans in response to requirements of the convention. These plans have raised significant controversy and debate. This debate intensified following the 1997 Kyoto Agreement, which, had it been ratified by the United States, would have committed the United States to reduce greenhouse gases by 7% over a five-year period (2008-2012) from specified baseline years. Controversy is inherent, in part, because of uncertainties about the likelihood and magnitude of possible future climate change, the consequences for human wellbeing, and the costs and benefits of minimizing or adapting to possible climate change. Controversy also is driven by differences in how competing policy communities view the assumptions underlying approaches to this complex issue. […] An 'ecological lens' views environmental problems as the result of indifference to or disregard for the planet's ecosystem on which all life depends. The solutions to the problems lie in developing an understanding of and a respect for that ecosystem, and providing people with mechanisms to express that understanding in their daily choices. The implied governmental role would be to support ecologically based education and values, as well as to promote 'green' products and processes, for example through procurement policies and labeling requirements. Some initiatives are underway; all the perspectives are relevant in evaluating them and possible further policies. The purpose here is not to suggest that one lens is 'better' than another, but rather to articulate the implications of the differing perspectives in order to clarify terms of debate among diverse policy communities."
Library of Congress. Congressional Research Service
Parker, Larry, 1954-; Blodgett, John E.
2008-11-26
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Greenhouse Gases and Economic Development: An Empirical Approach to Defining Goals [February 4, 2005]
"This analysis identifies those nations that have combined the highest per capita GDPs with the lowest intensities of greenhouse gas emissions. Taking those nations as exemplars, it then examines possible outcomes from pursuing competing goals -- economic growth and development versus constraining greenhouse gases -- that are confounding efforts, such as the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol, to address global climate change. Eight nations -- Austria, France, Italy, Iceland, Luxembourg, Norway, Sweden, and Switzerland -- combine high per capita GDP (among the top-20 nations) with the lowest intensity of greenhouse gas emissions of all nations (between 107 and 70 tons per million $ GDP). Taking the lower level of their per capita GDP ($23,500) and an intensity of 100, this analysis examines the greenhouse gas emission implications of a world achieving those levels of economic activity and greenhouse gas intensity."
Library of Congress. Congressional Research Service
Blodgett, John E.; Parker, Larry, 1954-
2005-02-04
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Greenhouse Gas Emissions: Conflicting Situations, Conflicting Perspectives [January 7, 2005]
"The World Resources Institute (WRI) has compiled greenhouse gas emissions and related data from a variety of sources into a database that is available publicly for analysis. This report analyzes those data to examine two issues. The first issue is the separate treatment of developed and developing nations under the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol. This distinction has been a pivotal issue affecting U.S. climate change policy. The second issue is the continuing difficulty of the current approach designed to address climate change through limiting greenhouse gas emissions to a specified percentage of baseline emissions (typically 1990). The data permit examination of alternative approaches, such as focusing on per capita emissions or the greenhouse gas emission intensity (measured as emissions per unit of economic activity)."
Library of Congress. Congressional Research Service
Parker, Larry, 1954-; Blodgett, John E.
2005-01-07
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Global Climate Change: U.S. Greenhouse Gas Emissions - Status, Trends, and Projections [Updated March 12, 2002]
"On 15 October 1992 the United States ratified the United Nations Framework Convention on Climate Change (UNFCCC), which entered into force 21 March 1994. This committed the U.S. to 'national policies' to limit 'its anthropogenic emissions of greenhouse gases,' with a voluntary goal of returning 'emissions of carbon dioxide [CO2] and other greenhouse gases [Methane (CH4), Nitrous Oxide (N2O), Hydrofluorocarbons (HFCs), Perfluorocarbons (PFCs), and Sulfur Hexafluoride (SF6)]' at the 'end of the decade' 'to their 1990 levels.' Subsequently, in the 1997 Kyoto Protocol to the UNFCCC, the U.S. participated in negotiations that ended with agreement on further reductions that could become legally binding. The United States signed the Kyoto Protocol in 1998, but President Clinton did not send it to the Senate for advice and consent. President Bush has said that he rejects the Protocol, and U.S. Environmental Protection Agency Administrator Whitman has told reporters that the Administration will not be pursuing the UNFCCC commitment either. Instead, President Bush is proposing to shift the nation's climate change program from a goal of reducing emissions per se to a goal of reducing energy intensity -- the amount of greenhouse gases emitted per unit of economic productivity. Under the proposal, the intensity, which has been declining for a number of years, would decline18% between 2002 and 2012, as opposed to a 14% projected 'business as usual' decline."
Library of Congress. Congressional Research Service
Blodgett, John E.; Parker, Larry, 1954-
2002-03-12
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Costs and Benefits of Clear Skies: EPA's Analysis of Multi-Pollutant Clean Air Bills [November 23, 2005]
"The electric utility industry is a major source of air pollution, particularly sulfur dioxide (SO2), nitrogen oxides (NOx), and mercury (Hg), as well as suspected greenhouse gases, particularly carbon dioxide (CO2). On October 27, 2005, the Environmental Protection Agency (EPA) released a long-awaited analysis comparing the costs and benefits of alternative approaches to controlling this pollution. The alternative schemes focus on using market-oriented mechanisms directed at multiple pollutants to achieve health and environmental goals. The new analysis compares four versions of the Administration-based "Clear Skies" proposal to bills introduced by Senator Jeffords (S. 150) and Senator Carper (S. 843 of the 108th Congress), which would impose more stringent requirements. This report, which will not be updated, examines EPA's analysis and adjusts some of its assumptions to reflect current regulations. The most important adjustment is the choice of baseline. The agency's analysis assumes as a baseline that, in the absence of new federal legislation, EPA and the states will take no additional action to control SO2, NOx, Hg, or CO2 emissions beyond those actions finalized by mid-2004. This baseline is put forth despite three rules recently promulgated by EPA that limit SO2, NOx, and Hg emissions on a timeframe similar to that proposed by the Clear Skies legislation."
Library of Congress. Congressional Research Service
McCarthy, James E.; Parker, Larry, 1954-
2005-11-23
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Clean Air Act: A Summary of the Act and Its Major Requirements [Updated February 15, 2007]
"This report summarizes the Clean Air Act and its major regulatory requirements. It excerpts, with minor modifications, the Clean Air Act chapter of CRS [Congressional Research Service] Report RL30798, which summarizes a dozen environmental statutes that form the basis for the programs of the Environmental Protection Agency. The principal statute addressing air quality concerns, the Clean Air Act was first enacted in 1955, with major revisions in 1970, 1977, and 1990. The Act requires EPA to set health-based standards for ambient air quality, sets deadlines for the achievement of those standards by state and local governments, and requires EPA to set national emission standards for large or ubiquitous sources of air pollution, including motor vehicles, power plants, and other industrial sources. In addition, the Act mandates emission controls for sources of 188 hazardous air pollutants, requires the prevention of significant deterioration of air quality in areas with clean air, requires a program to restore visibility impaired by regional haze in national parks and wilderness areas, and implements the Montreal Protocol to phase out most ozone-depleting chemicals. This report describes the Act's major provisions and provides tables listing all major amendments, with the year of enactment and Public Law number, and cross-referencing sections of the Act with the major U.S. Code sections of the codified statute."
Library of Congress. Congressional Research Service
McCarthy, James E.; Copeland, Claudia; Parker, Larry, 1954- . . .
2007-02-15
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Climate Change: The European Union's Emissions Trading System (EU-ETS) [July 31, 2006]
"The European Union's (EU's) Emissions Trading System (ETS) is a cornerstone of the EU's efforts to meet its obligation under the Kyoto Protocol. It covers more than 11,500 energy intensive facilities across the 25 EU member countries, including oil refineries, powerplants over 20 megawatts (MW) in capacity, coke ovens, and iron and steel plants, along with cement, glass, lime, brick, ceramics, and pulp and paper installations. Cove red entities emit about 45% of the EU's carbon dioxide emissions. The trading program does not cover emissions of non-CO2 greenhouse gases, which account for about 20% of the EU's total greenhouse gas emissions. The first trading period began January 1, 2005. A second trading period is scheduled to begin in 2008, with a third one planned for 2013. In deciding on its trading program, the European Commission (EC) adopted a 'learning-by-doing' approach to prepare the EU for the Kyoto Protocol's emission limitations. The EU does not have major experience with emissions trading, and the EC felt that an initial program beginning in 2005 would give the EU practical familiarity in operating such a system."
Library of Congress. Congressional Research Service
Parker, Larry, 1954-
2006-07-31
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EPA Regulation of Greenhouse Gases: Congressional Responses and Options [June 8, 2010]
"The Environmental Protection Agency's promulgation of an 'endangerment finding' for greenhouse gas (GHG) emissions in December 2009, and its subsequent promulgation of GHG emission standards for new motor vehicles on April 1, 2010, have raised concerns among some in Congress that the agency will now proceed to control GHG emissions from stationary sources, including power plants, manufacturing facilities, and others. Stationary sources account for 69% of U.S. emissions of greenhouse gases. If the United States is to reduce its total GHG emissions, as President Obama has committed to do, it will be necessary to address these sources. EPA's regulations limiting GHG emissions from new cars and light trucks will trigger at least two other Clean Air Act (CAA) provisions affecting stationary sources of air pollution. First, effective January 2, 2011, new or modified major stationary sources will have to undergo New Source Review (NSR) with respect to their GHGs in addition to any other pollutants subject to regulation under the CAA that are emitted by the source. This review will require affected sources to install Best Available Control Technology (BACT) to address their GHG emissions. Second, all major sources of GHGs (existing and new) will have to obtain permits under Title V of the CAA (or have existing permits modified to include their GHG requirements). Beyond these permitting requirements, because stationary sources, particularly coal-fired power plants, are the largest sources of greenhouse gas emissions, EPA is likely to find itself compelled to issue endangerment findings under other parts of the act, resulting in New Source Performance Standards for stationary sources or emission standards under other sections of the act. EPA shares congressional concerns about the potentially broad scope of these regulations, primarily because a literal reading of the act might require as many as 6 million stationary sources to obtain permits. Thus, on May 13, 2010, the agency finalized a 'Tailoring Rule' so that it can focus its resources on the largest emitters while deciding over a six-year period what to do about smaller sources. The agency is still in the process of developing recommendations on what the BACT requirements will be and expects to issue guidance on that in the fall of 2010."
Library of Congress. Congressional Research Service
McCarthy, James E.; Parker, Larry, 1954-
2010-06-08
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U.S. Global Climate Change Policy: Evolving Views on Cost, Competitiveness, and Comprehensiveness [June 25, 2010]
"The nature of greenhouse gas (GHG) emissions (particularly carbon dioxide (CO2) emissions) makes their control difficult to integrate with the U.S economy and traditional U.S. energy policy. Despite the obvious interrelationship between energy policy and greenhouse gas (GHG) emissions, the United States has struggled to integrate the two. For a country that has traditionally used its relatively cheap supply of energy to substitute for more expensive labor and capital costs to compete internationally, this linkage is particularly strong, as witnessed by the nation's high GHG emissions per capita. In the face of this economic reality, along with continuing scientific uncertainty, debate over a greenhouse gas (GHG) reduction program can be categorized by three inter-related Cs: Cost, Competitiveness, and Comprehensiveness. [...] Fundamental policy assumptions regarding each of the three Cs have changed between the U.S. ratification of the 1992 UNFCCC [United Nations Framework Convention on Climate Change] and key events of the first decade of the 21st century--the George W. Bush Administration's 2001 decision to abandon the Kyoto Protocol process and the 2009 negotiations at Copenhagen. [...] The Copenhagen Agreement tried to preserve the twin goals of economic development and emissions reductions by allowing each nation to determine the costs it would accept; and also by establishing a mechanism by which the developed nations would provide funds for greenhouse gas reduction actions by developing nations. What remains to be seen is whether any voluntary program can successfully reduce emissions sufficiently to meet the UNFCCC goal of holding the increase in global temperatures to 2 degrees C."
Library of Congress. Congressional Research Service
Parker, Larry, 1954-; Blodgett, John E.; Yacobucci, Brent D.
2010-06-28
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U.S. Global Climate Change Policy: Evolving Views on Cost, Competitiveness, and Comprehensiveness [February 24, 2011]
"The nature of greenhouse gas (GHG) emissions (particularly carbon dioxide (CO2) emissions) makes their control difficult to integrate with the U.S economy and traditional U.S. energy policy. Despite the obvious interrelationship between energy policy and greenhouse gas (GHG) emissions, the United States has struggled to integrate the two. For a country that has traditionally used its relatively cheap supply of energy to substitute for more expensive labor and capital costs to compete internationally, this linkage is particularly strong, as witnessed by the nation's high GHG emissions per capita. In the face of this economic reality, along with continuing scientific uncertainty, debate over a greenhouse gas (GHG) reduction program can be categorized by three inter-related Cs: Cost, Competitiveness, and Comprehensiveness. [...] Fundamental policy assumptions regarding each of the three Cs have changed between the U.S. ratification of the 1992 UNFCCC [United Nations Framework Convention on Climate Change] and key events of the first decade of the 21st century--the George W. Bush Administration's 2001 decision to abandon the Kyoto Protocol process and the 2009 negotiations at Copenhagen. [...] The Copenhagen Agreement tried to preserve the twin goals of economic development and emissions reductions by allowing each nation to determine the costs it would accept; and also by establishing a mechanism by which the developed nations would provide funds for greenhouse gas reduction actions in developing nations. What remains to be seen is whether any voluntary program can successfully reduce emissions sufficiently to meet the UNFCCC goal of holding the increase in global temperatures to 2°C."
Library of Congress. Congressional Research Service
Yacobucci, Brent D.; Blodgett, John E.; Parker, Larry, 1954-
2011-02-24
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Market-Based Greenhouse Gas Control: Selected Proposals in the 111th Congress [May 27, 2009]
"As of the date of this report, Members in the 111th Congress have introduced seven stand-alone proposals that would control greenhouse gas (GHG) emissions. The proposals offered to date would employ market-based approaches-either a cap-and-trade or carbon tax system, or some combination thereof-to reduce GHG emissions. The legislative proposals are varied in their overall approaches in controlling GHG emissions. Some control emissions by setting a quantity (or cap); others control emissions by setting a price (or tax/fee). In addition, the proposals differ in their inclusion of particular design elements, such as whether or not to allow offsets (emission reduction opportunities from economic sectors not directly addressed by the primary approach). H.R. 2454 (Waxman/Markey) has been the primary energy and climate change legislative proposal in the 111th Congress. It was introduced May 15, 2009, and subsequently modified and offered as a "Manager's Amendment" (May 18, 2009) for markup in the House Committee on Energy and Commerce. After making several amendments to the bill (most relating to the bill's energy provisions), the committee ordered the bill reported May 21, 2009. H.R. 2454 (Waxman/Markey) and H.R. 1862 (Van Hollen) would establish cap-and-trade programs, but they would differ in their implementation. For example, the latter would not allow offsets to be used for compliance purposes, while the former would allow covered entities to satisfy an increasing percentage (approximately 30% in 2012) of their compliance obligation with offsets. H.R. 1666 (Doggett) would also create a cap-and-trade system, but in the early years of the program, the number of emission allowances distributed would be based on achieving a specified allowance price. Three of the proposals-H.R. 594 (Stark), H.R. 1337 (Larson), and H.R. 2380 (Inglis)-would use a carbon tax approach to address carbon dioxide (CO2) emissions from fossil fuel combustion. H.R. 1683 (McDermott) would establish a program that may be described as a dynamic carbon tax: its tax rate would be linked with annual emission allocations (or caps)."
Library of Congress. Congressional Research Service
Ramseur, Jonathan L.; Parker, Larry, 1954-; Yacobucci, Brent D.
2009-05-27
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Clean Air Act Issues in the 109th Congress [Updated March 25, 2005]
"With the prospect of new layers of complexity being added to air pollution controls and with electricity restructuring putting a premium on economic efficiency, interest is being expressed in finding mechanisms to achieve health and environmental goals in simpler, more cost-effective ways. The electric utility industry is a major source of air pollution, particularly sulfur dioxide (SO2), nitrogen oxides (NOx), and mercury (Hg), as well as suspected greenhouse gases, particularly carbon dioxide (CO2). At issue is whether a new approach to environmental protection could achieve the nation's air quality goals more cost-effectively than the current system. One approach being proposed is a 'multi-pollutant' strategy - a framework based on a consistent set of emissions caps, implemented through emissions trading. Just how the proposed approach would fit with the current (and proposed) diverse regulatory regimes remains to be worked out; they might be replaced to the greatest extent feasible, or they might be overlaid by the framework of emissions caps. In February 2002, the Bush Administration announced two air quality initiatives. The first, 'Clear Skies,' would amend the Clean Air Act to place emission caps on electric utility emissions of SO2, NOx, and Hg. Implemented through a tradeable allowance program, the emissions caps would generally be imposed in two phases: 2008 and 2018. The second initiative begins a voluntary greenhouse gas reduction program. This plan, rather than capping CO2 emissions, focuses on improving the carbon efficiency of the economy, reducing current emissions of 183 metric tons per million dollars of GDP [Gross Domestic Product] to 151 metric tons per million dollars of GDP in 2012."
Library of Congress. Congressional Research Service
Parker, Larry, 1954-; Blodgett, John E.
2005-03-25
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Regulating a Carbon Market: Issues Raised by the European Carbon and U.S. Sulfur Dioxide Allowance Markets [April 30, 2008]
"Regulating a Carbon Market: Issues Raised by the European Carbon and U.S. Sulfur Dioxide Allowance Markets Summary Both the European Union's Emissions Trading Scheme (EU-ETS) and the U.S. Title IV sulfur dioxide (SO2) program provide insights into regulatory issues that may face any future U.S. carbon market. From the initial operations of the EU-ETS, the 2006 price crash raised questions about the adequacy of market regulation. In particular, some suspect that information about allocations leaked before official publication, and that certain traders profited from this knowledge."
Library of Congress. Congressional Research Service
Jickling, Mark; Parker, Larry, 1954-
2008-04-30
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Global Climate Change: Three Policy Perspectives [February 9, 2007]
"The 1992 U.N. Framework Convention on Climate Change requires that signatories, including the United States, establish policies for constraining future emission levels of suspected greenhouse gases, including carbon dioxide (CO2). The George H. W. Bush, Clinton, and George W. Bush Administrations each drafted action plans in response to requirements of the convention. These plans have raised significant controversy and debate. […] An 'ecological lens' views environmental problems as the result of indifference to or disregard for the planet's ecosystem on which all life depends. The solutions to the problems lie in developing an understanding of and a respect for that ecosystem, and providing people with mechanisms to express that understanding in their daily choices. The implied governmental role would be to support ecologically based education and values, as well as to promote 'green' products and processes, for example through procurement policies and labeling requirements. Some initiatives are underway; all the perspectives are relevant in evaluating them and possible further policies. The purpose here is not to suggest that one lens is 'better' than another, but rather to articulate the implications of the differing perspectives in order to clarify terms of debate among diverse policy communities."
Library of Congress. Congressional Research Service
Parker, Larry, 1954-; Blodgett, John E.
2007-02-09
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Greenhouse Gas Reduction: Cap-and-Trade Bills in the 110th Congress [July 13, 2007]
"A number of congressional proposals to advance programs that reduce greenhouse gases have been introduced in the 110th Congress. Proposals receiving particular attention would create market-based greenhouse gas reduction programs along the lines of the trading provisions of the current acid rain reduction program established by the 1990 Clean Air Act Amendments. This paper presents a side-by-side comparison of the major provisions of those bills and includes a glossary of common terms."
Library of Congress. Congressional Research Service
Parker, Larry, 1954-; Yacobucci, Brent D.
2007-07-13
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Global Climate Change: Market-Based Strategies to Reduce Greenhouse Gases [September 29, 2004]
"The possibility that human activities are releasing gases, including carbon dioxide (CO2), at rates that could affect global climate has resulted in proposals for national programs to curtail emissions. An international framework for specific reductions in greenhouse gases was negotiated at a meeting in Kyoto in December 1997. Concern about costs has encouraged consideration of CO2 reduction proposals that employ market-based mechanisms. The passage in 1990 of a tradeable allowance system for sulfur dioxide (SO2) control in the United States to reduce acid rain provides a precedent for such mechanisms. The two mechanisms receiving the most attention are a tradeable permit program (similar to the acid rain program) and carbon taxes. Proposed CO2 reduction schemes present large uncertainties in terms of the perceived reduction needs and the potential costs of achieving those reductions. Tradeable permit programs would reduce CO2 emissions to a specific level with the control cost handled efficiently, but not at a specific cost level. Carbon taxes would effectively cap marginal control costs at the specific tax level, but the precise level of CO2 reduction achieved would be less certain. Hence, a major policy question is whether one is more concerned about the possible cost of the program and therefore willing to accept some uncertainty about emission reduction in order to have some limits on costs (i.e., carbon taxes) or whether one is more concerned about achieving a specific emission reduction level with costs handled efficiently, but not capped (i.e., tradeable permits)."
Library of Congress. Congressional Research Service
Parker, Larry, 1954-
2004-09-29
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Energy Implications of Proposed U.S.-India Nuclear Cooperation Agreement [March 22, 2006]
"As you requested March 16, this memo provides a brief overview of the major energy security and environmental implications of the proposed U.S.-India nuclear cooperation agreement...President Bush announced plans for U.S. nuclear cooperation with India on July 18, 2005, as one part of a new global partnership with India, which is intended to improve overall U.S.-India relations. The President said he would 'work to achieve full civil nuclear energy cooperation with India' and would 'also seek agreement from Congress to adjust U.S. laws and policies.' The nuclear cooperation agreement cannot be implemented without congressional action. Because India is not a signatory to the Nuclear Nonproliferation Treaty and has used its nuclear power program to develop nuclear weapons, the United States and other nuclear supplier nations have restricted India's access to foreign nuclear technology and materials since the early 1970s. As a result, India's nuclear power program has relied on indigenous heavy water reactor designs based on small imported reactors that were supplied before the international cutoff. India had set a goal of 10,000 megawatts of nuclear generating capacity by 2000, but by 2005 only 2,550 megawatts of nuclear capacity was on line."
Library of Congress. Congressional Research Service
Holt, Mark; Parker, Larry, 1954-
2006-03-22
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Nuclear Power: Outlook for New U.S. Reactors [Updated November 6, 2006]
"Nearly three decades after the most recent order was placed for a new nuclear power plant in the United States, several utilities are now expressing interest in building a total of up to 30 new reactors. The renewed interest in nuclear power has resulted primarily from higher prices for natural gas, improved operation of existing reactors, and uncertainty about future restrictions on coal emissions. A substantial tax credit and other incentives for nuclear generation provided by the Energy Policy Act of 2005 (P.L. 109-58) are also likely to improve the economic viability of qualifying new reactors. New nuclear plant applications can also take advantage of amendments to the Atomic Energy Act made in the early 1990s to reduce licensing delays. Currently, there are 103 licensed and operable power reactors at 65 plant sites in 31 states, generating about one-fifth of U.S. electricity. Although no new U.S. reactors have started up since 1996, U.S. nuclear electricity generation has since grown by more than 20%. Much of this additional output resulted from reduced downtime, notably through shorter refueling outages. Licensed commercial reactors generated electricity at an average of 89.4% of their total capacity in 2005, after averaging about 75% in the mid-1990s and about 65% in the mid-1980s."
Library of Congress. Congressional Research Service
Holt, Mark; Parker, Larry, 1954-
2006-11-06
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Nuclear Power: Outlook for New U.S. Reactors [Updated March 9, 2007]
"Nearly three decades after the most recent order was placed for a new nuclear power plant in the United States, several utilities are now expressing interest in building a total of up to 30 new reactors. The renewed interest in nuclear power has resulted primarily from higher prices for natural gas, improved operation of existing reactors, and uncertainty about future restrictions on coal emissions. A substantial tax credit and other incentives for nuclear generation provided by the Energy Policy Act of 2005 (P.L. 109-58) are also likely to improve the economic viability of qualifying new reactors. New nuclear plant applications can also take advantage of amendments to the Atomic Energy Act made in the early 1990s to reduce licensing delays. Currently, there are 103 licensed and operable power reactors at 65 plant sites in 31 states, generating about one-fifth of U.S. electricity. […] The nuclear production tax credit in the Energy Policy Act could have a significant impact on the economic viability of new nuclear power plants. […] Other factors will also be important in the commercial decision to invest in new nuclear plants, such as fossil fuel prices and the regulatory environment for both nuclear power and future fossil fuel-fired generation."
Library of Congress. Congressional Research Service
Holt, Mark; Parker, Larry, 1954-
2007-03-09
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Electricity: The Road Toward Restructuring [Updated August 10, 2004]
The Public Utility Holding Company Act of 1935 (PUHCA) and the Federal Power Act
(FPA) were enacted to eliminate unfair practices and other abuses by electricity and gas holding companies by requiring federal control and regulation of interstate public utility holding companies. Prior to PUHCA, electricity holding companies were characterized as having excessive consumer rates, high debt-to-equity ratios, and unreliable service. PUHCA remained virtually unchanged for 50 years until enactment of the Public Utility
Regulatory Policies Act of 1978 (PURPA, P.L. 95-617). PURPA was, in part, intended to augment electric utility generation with more efficiently produced electricity and to provide equitable rates to electric consumers. Utilities are required to buy all power produced by qualifying facilities (QFs) at "avoided cost." QFs are exempt from regulation under PUHCA and the FPA… Comprehensive electricity legislation involves three issues. The first is PUHCA reform. Some electric utilities want PUHCA changed so they can more easily diversify their assets. State regulators have expressed concerns that increased diversification could lead to abuses, including cross-subsidization. The second issue is PURPA's mandatory purchase requirement provisions. Many investor- owned utilities support repeal of these provisions. The third is retail wheeling. It involves allowing retail customers to choose their electric generation supplier.
Library of Congress. Congressional Research Service
Parker, Larry, 1954-; Abel, Amy
2004-08-10
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Global Climate Change: Three Policy Perspectives [February 7, 2008]
"The 1992 U.N. Framework Convention on Climate Change requires that signatories, including the United States, establish policies for constraining future emission levels of greenhouse gases, including carbon dioxide (CO2). The George H. W. Bush, Clinton, and George W. Bush Administrations each drafted action plans in response to requirements of the convention. These plans have raised significant controversy and debate. This debate intensified following the 1997 Kyoto Agreement, which, had it been ratified by the United States, would have committed the United States to reduce greenhouse gases by 7% over a five-year period (2008-2012) from specified baseline years. Controversy is inherent, in part, because of uncertainties about the likelihood and magnitude of possible future climate change, the consequences for human wellbeing, and the costs and benefits of minimizing or adapting to possible climate change. Controversy also is driven by differences in how competing policy communities view the assumptions underlying approaches to this complex issue. […] An 'ecological lens' views environmental problems as the result of indifference to or disregard for the planet's ecosystem on which all life depends. The solutions to the problems lie in developing an understanding of and a respect for that ecosystem, and providing people with mechanisms to express that understanding in their daily choices. The implied governmental role would be to support ecologically based education and values, as well as to promote 'green' products and processes, for example through procurement policies and labeling requirements. Some initiatives are underway; all the perspectives are relevant in evaluating them and possible further policies. The purpose here is not to suggest that one lens is 'better' than another, but rather to articulate the implications of the differing perspectives in order to clarify terms of debate among diverse policy communities."
Library of Congress. Congressional Research Service
Parker, Larry, 1954-; Blodgett, John E.
2008-02-07
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Greenhouse Gas Emissions: Perspectives on the Top 20 Emitters and Developed Versus Developing Nations [January 31, 2008]
"Using the World Resources Institute (WRI) database on greenhouse gas emissions and related data, this report examines two issues. The first issue is the separate treatment of developed and developing nations under the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol. This distinction has been a pivotal issue affecting U.S. climate change policy. The second issue is the continuing difficulty of the current approach designed to address climate change through limiting greenhouse gas emissions to a specified percentage of baseline emissions (typically 1990). The data permit examination of alternative approaches, such as focusing on per capita emissions or the greenhouse gas emission intensity (measured as emissions per unit of economic activity). […] Differentiating responsibilities between developed and developing nations -- as the UNFCCC does -- fails to focus efforts on some of the largest emitters. Moreover, many developed countries have not achieved stabilization of their emissions despite the UNFCCC. Given the wide range of situations illustrated by the data, a flexible strategy that allows each country to play to its strengths may be appropriate if diverse countries like the United States and China are ever to reach agreement."
Library of Congress. Congressional Research Service
Parker, Larry, 1954-; Blodgett, John E.
2008-01-31
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Nuclear Power: Outlook for New U.S. Reactors [May 31, 2006]
"Nearly three decades after the most recent order was placed for a new nuclear power plant in the United States, several utilities are now expressing interest in building a total of up to 20 new reactors. The renewed interest in nuclear power has resulted primarily from sharply rising prices for natural gas, improved operation of existing reactors, and uncertainty about future restrictions on coal emissions. A substantial tax credit for nuclear generation provided by the Energy Policy Act of 2005 (P.L. 109-58) is also likely to improve the economic viability of qualifying new reactors. New nuclear plant applications can also take advantage of amendments to the Atomic Energy Act made in the early 1990s to reduce licensing delays. Currently, there are 103 licensed power reactors at 65 plant sites in 31 states, generating about one-fifth of U.S. electricity. Although no new U.S. reactors have started up since 1996, U.S. nuclear electricity generation has since grown by more than 20%. Much of this additional output resulted from reduced downtime, notably through shorter refueling outages. Licensed commercial reactors generated electricity at an average of 89.4% of their total capacity in 2005, after averaging about 75% in the mid-1990s and about 65% in the mid-1980s. […] Any substantial mandatory greenhouse gas control program would probably affect the cost of new coal-fired and natural gas-fired generation relative to nuclear power, particularly if nuclear power is assumed to have no greenhouse gas emissions. Continued delays in nuclear waste disposal facilities -- forcing spent fuel to be stored at plant sites -- could also affect the decision to construct new reactors. This report will not be updated."
Library of Congress. Congressional Research Service
Parker, Larry, 1954-; Holt, Mark
2006-05-31
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Capturing CO2 from Coal-Fired Power Plants: Challenges for a Comprehensive Strategy [April 15, 2010]
"Any comprehensive approach to substantially reduce greenhouse gases must address the world's dependency on coal for one-quarter of its energy demand, including almost half of its electricity demand. To maintain coal in the world's energy mix in a carbon-constrained future would require development of a technology to capture and stores its carbon dioxide emissions. This situation suggests to some that any greenhouse gas reduction program be delayed until such carbon capture technology has been demonstrated. however, technological innovation and the demands of a carbon control regime are interlined; a technology policy is no substitute for environmental policy and should be developed in concert with it."
Library of Congress. Congressional Research Service
Parker, Larry, 1954-; Folger, Peter (Peter Franklin)
2010-04-15
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Air Quality: Multi-Pollutant Legislation in the 110th Congress [Updated October 2, 2007]
"With the prospect of new layers of complexity being added to air pollution controls and with electricity restructuring putting a premium on economic efficiency, interest is being expressed in finding mechanisms to achieve health and environmental goals in simpler, more cost-effective ways. The electric utility industry is a major source of air pollution, particularly sulfur dioxide (SO2), nitrogen oxides (NOx), and mercury (Hg), as well as suspected greenhouse gases, particularly carbon dioxide (CO2). At issue is whether a new approach to environmental protection could achieve the nation's air quality goals more cost-effectively than the current system. One approach being proposed is a 'multi-pollutant' strategy - a framework based on a consistent set of emissions caps, implemented through emissions trading. Just how the proposed approach would fit with the current (and proposed) diverse regulatory regimes remains to be worked out; they might be replaced to the greatest extent feasible, or they might be overlaid by the framework of emissions caps. In February 2002, the Bush Administration announced two air quality initiatives. The first, 'Clear Skies,' would amend the Clean Air Act to place emission caps on electric utility emissions of SO2, NOx, and Hg. Implemented through a tradeable allowance program, the emissions caps would generally be imposed in two phases: 2008 and 2018. The second initiative begins a voluntary greenhouse gas reduction program. This plan, rather than capping CO2 emissions, focuses on improving the carbon efficiency of the economy, reducing current emissions of 183 metric tons per million dollars of GDP [Gross Domestic Product] to 151 metric tons per million dollars of GDP in 2012."
Library of Congress. Congressional Research Service
Blodgett, John E.; Parker, Larry, 1954-
2007-10-02
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Climate Change: Design Approaches for a Greenhouse Gas Reduction Program [Updated January 4, 2008]
"With the passage of the 2005 Sense of the Senate climate change resolution calling on the Congress to enact a mandatory, market-based program to slow, stop, and reverse the growth of greenhouse gases, the issue of related costs has taken on increased importance. Indeed, the resolution itself states that the program should be enacted at a rate and in a manner that 'will not significantly harm the United States economy' and 'will encourage comparable action' by other nations. Facets of the cost issue that have raised concern include absolute costs to the economy, distribution of costs across industries, competitive impact domestically and internationally, incentives for new technology, and uncertainty about possible costs. […]In a sense, the options discussed here represent a continuum between alternatives focused on the price side of the equation (e.g., carbon taxes) through hybrid schemes (e.g., safety valves) to alternatives focused on the quantity side (e.g., banking and borrowing). They are tools to assist in the assessment of potential greenhouse gas reduction approaches, leaving any policy decision on balancing the price-quantity issue to the ultimate decision makers."
Library of Congress. Congressional Research Service
Parker, Larry, 1954-
2008-01-04
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Climate Change: The EU Emissions Trading Scheme (ETS) Gets Ready for Kyoto [November 6, 2007]
"The European Union's (EU) Emissions Trading Scheme (ETS) is a cornerstone of the EU's efforts to meet its obligation under the Kyoto Protocol. It covers more than 11,500 energy intensive facilities across the 27 EU Member countries; covered entities emit about 45% of the EU's carbon dioxide emissions. A 'Phase 1' trading period began January 1, 2005. A second, Phase 2, trading period will begin in 2008, covering the period of the Kyoto Protocol, with a third one planned for 2013. Several positives resulting from the Phase 1 'learning by doing' exercise may assist the ETS in making the Phase 2 process run more smoothly, including greatly improving emissions data, encouraging development of the Kyoto Protocol's project-based mechanisms-Clean Development Mechanism (CDM) and Joint Implementation (JI), and influencing corporate behavior to begin pricing in the value of allowances in decision-making, particularly in the electric utility sector. However, several issues that arose during the first phase remain contentious as the ETS moves into Phase 2, including allocation schemes, shutdown credits and new entrant reserves, and others. In addition, the expansion of the EU and the implementation of the directives linking the ETS to the Kyoto Protocol project-based mechanisms created new issues to which Phase 2 has had to respond. The United States is not a party to Kyoto. However, almost three years of carbon emissions trading has given the EU valuable experience as it prepares for Kyoto. This experience, along with the process of developing Phase 2 NAPs, may provide some insight into cap-and-trade design issues currently being debated in the U.S."
Library of Congress. Congressional Research Service
Parker, Larry, 1954-
2007-11-06
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Climate Change: The Kyoto Protocol, Bali Negotiations, and International Actions [Updated November 20, 2007]
"The concerns over climate change, often termed 'global warming,' have emerged both in the United States and internationally as major policy issues. Reports in 2007 of the United Nations Intergovernmental Panel on Climate Change (IPCC) provided additional scientific underpinnings for these concerns, and the number of proposals and international meetings devoted to these issues has grown significantly during this year, as discussed in this report. The first treaty to address climate change, the United Nations Framework Convention on Climate Change (UNFCCC), was completed and opened for signature in 1992. The resulting Kyoto Protocol, which was completed in 1997 and entered into force in February 2005, committed industrialized nations that ratify it to specified, legally binding reductions in emissions of the six major greenhouse gases. The United States has not ratified the Protocol, and thus is not bound by its provisions. In March 2001, the Bush Administration rejected the Kyoto Protocol, and subsequently announced a U.S. policy for climate change that relies on voluntary actions to reduce the 'greenhouse gas intensity' (ratio of emissions to economic output) of the U.S. economy by 18% over the next 10 years. As of November 2007, the UNFCCC Secretariat listed 174 nations and the European Union as parties to the Kyoto Protocol. Annual meetings of the parties continue, and attention at the meeting in Bali, Indonesia, December 3-14, 2007, will focus on finding agreement on a framework for negotiating a successor agreement to the Kyoto Protocol. Major challenges include finding agreement on the nature of commitments, if any, that would prove acceptable to all major players: current parties, developing countries that are major emitters, and the United States."
Library of Congress. Congressional Research Service
Parker, Larry, 1954-; Fletcher, Susan R.
2007-11-20
