Nationwide Low-Carbon Fuel Standard Would Increase Global Greenhouse Gas Emissions, Study Finds

/PRNewswire/ -- The implementation of a nationwide low-carbon fuel standard (LCFS) in the United States would increase global greenhouse gas emissions by up to 19 million metric tons each year - contradicting the claim of LCFS advocates that the standard would reduce such emissions - according to a study issued today.

The study assumes that because an LCFS would prevent American refineries from importing petroleum obtained from oil sands in neighboring Western Canada, the United States would instead have to import more oil in tankers from the Middle East and elsewhere. At the same time, the Canadian oil would be shipped in tankers across the Pacific to China and other Asian locations.

The study calls this long-distance movement of oil thousands of miles around the world in tankers a "shuffle" that would result in higher carbon dioxide emissions than simply extracting the Canadian petroleum from the oil sands for U.S. consumption, due to emissions created by shipping the oil such great distances.

Barr Engineering Company of Minneapolis conducted the study for members of NPRA, the National Petrochemical & Refiners Association.

"In conducting this technical study, we looked at the most accurate data publicly available, and the conclusion was clear," said Joel Trinkle, senior air quality consultant at Barr and one of the authors of the study. "Crude shuffling under a nationwide LCFS would substantially raise overall greenhouse gas emissions."

The study found that:

-- "A LCFS implemented in the U.S. results in a notable increase in
greenhouse gas emissions due to the displacement of Canadian crude
imports to the U.S. and re-routing of crude imports and exports to
accommodate this displacement. ... Nearby Canadian crude sources
would be diverted to regions not affected by LCFS and replaced with
supplies from distant parts of the world." (Page 2)
-- "While it is likely that LCFS would change the mix of crude imports to
the United States, LCFS implemented in the United States is not
expected to change overall trends in energy use and demand for crude
resources throughout the rest of the world. A shift in U.S.
crude-supply preferences will simply cause redirection of crude
supplies elsewhere." (Page 4-5)
-- "This analysis of the change in crude-transport-related emissions
accompanying implementation of a LCFS indicates that the net effect
will be a doubling of GHG [greenhouse gas] emissions associated with
changes in crude-transport patterns. It indicates an increase in
global GHG emissions by 7.1 to 19.0 million metric tons per year,
depending on the extent of resulting Canadian crude displacement."
(Page 3)


Canada is currently the largest supplier of petroleum imported into the United States, but other nations are looking to the Canadian oil sands as a potential energy source. China alone has already invested more than $6 billion in Canadian oil sands projects as it continues to rapidly increase its presence in overseas energy production.

"By denying the American people access to oil from our friendly neighbor Canada, a low-carbon fuel standard would raise fuel costs and wipe out millions of American jobs," said NPRA President Charles T. Drevna. "Now this latest study shows that a nationwide LCFS won't reduce overall global greenhouse gas emissions - it will actually raise them. These findings simply reinforce NPRA's long-held belief that a federal low-carbon fuel standard is a policy of all pain and no gain."

Additional concerns regarding American access to Canadian oil sands resources have surfaced following a recent U.S. State Department decision regarding a proposed pipeline to transport Canadian crude to refineries in the Gulf Coast region. The decision will allow federal agencies an additional 90 days to comment on TransCanada's proposed Keystone XL project, pending the State Department's release of a final environmental impact statement. The proposed pipeline expansion would more than double the amount of Canadian crude imported to the United States.

Several regional and state LCFS initiatives are currently underway, including a statewide LCFS program in California established as part of the state's AB 32 climate law, and proponents of a federal LCFS continue to seek its enactment.

A federal LCFS provision was included in the 2008 Lieberman-Warner climate change bill that was defeated in the Senate. The 2009 Waxman-Markey climate change bill also contained an LCFS provision, although it was removed before the bill was passed by the House.

Two other recent studies cast additional doubt on the efficacy of low-carbon fuel standards:

-- A June 2010 report by Charles River Associates found that a nationwide
LCFS implemented in 2015 would result by 2025 in: the loss of between
2.3 million and 4.5 million American jobs; an increase of up to 170
percent in the price of gasoline and diesel fuel; and a 2 to 3 percent
decrease in the U.S. Gross Domestic Product (totaling between $410
billion and $750 billion).
-- A report by the Canadian Energy Research Institute issued in October
2009 examined the impacts of developing Canadian oil sands on the U.S.
economy. It found that such development - which would be threatened by
the implementation of a nationwide LCFS in the United States - would
result in an estimated 343,000 new U.S. jobs between 2011 and 2015,
and that U.S. output of goods and services would increase by an
average of $62 billion per year from 2009 through 2025.

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New Report Shows Significant Potential for Renewable Energy in South

The South could generate 20-30 percent of its electricity from renewable energy sources within the next 20 years – up from less than 4 percent today -- if strong federal policies are enacted, according to a report released July 27 by researchers at the Georgia Institute of Technology and Duke University. The analysis, “Renewable Energy in the South,” finds that conventional wisdom has underestimated the available renewable resources in the region and that a federal renewable electricity standard (RES) would enable the South to capitalize on this untapped renewable energy potential.

Read the Full Report Here: http://www.spp.gatech.edu/aboutus/workingpapers/renewable-energy-in-the-south

The South lags behind all other regions in renewable electricity, obtaining 3.7 percent of its power from renewable sources, compared to 9.5 percent for the country as a whole. Only four states (Delaware, Maryland, North Carolina, and Texas) have a state-level renewable portfolio standard, while three others have voluntary renewable energy goals.  The fate of renewables in the South is not only important for the region, but for the nation as a whole since, in 2008, the region accounted for 44 percent of the country’s energy consumption.

Opponents of renewable energy production claim that the South lacks the renewable energy resources to capitalize on the growing demand for clean energy.  However, the report finds that there are abundant renewable energy resources available that can be tapped if supportive policies are put in place. The report shows that if a 25 percent (by 2025) federal RES is enacted, the amount of electricity supplied by power companies from renewable sources could increase more than 250 percent above the level expected in 2030 if no new federal renewables policies were enacted.

A number of other studies have shown a large potential for renewable energy in the South,” said Etan Gumerman of Duke University’s Nicholas Institute and co-lead researcher of the study.  “Our study shows that significant increases can actually be achieved, particularly through supportive local or federal policies.”

The report, using a customized version of the economic modeling system used by the U.S. Energy Information Administration, finds that a federal renewable electricity standard and carbon pricing system would increase the proportion of electricity derived from renewable sources by power companies in every state, particularly in wind and biomass. By 2030, the report shows, federal carbon pricing policy would increase renewable electricity production in the South by 390 percent.

“Countries around the world are already tapping into the potential of renewable energy, and are capturing export markets and generating jobs in the process,” said Dr. Marilyn Brown of the Georgia Institute of Technology and co-lead researcher of the study.  “The report demonstrates that although many states in the South are off to a slow start, renewable initiatives are now underway across the region, and the potential for expansion is promising.” 

In addition, the report finds that electricity produced by end-users, such as households and businesses using small-scale solar electric and heating facilities, would also benefit from federal policies and could supply a substantial portion of the region’s renewable electricity.  Under a 25 percent RES, for example, renewable electricity supplied by utilities and end-users could increase by 154 percent. Carbon pricing policy could lead to a 266 percent increase above the total level of renewable electricity expected in the absence of federal policy changes.

“In the future, households and businesses have the potential to become major suppliers of clean, renewable electricity,” added Dr. Brown.  “This changes the way we need to think about the South’s renewable energy potential.”

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Higher Gas Bills Prompt Georgia Consumers to Review Rates at Allconnect

(BUSINESS WIRE)--Following this week’s announcement by the Georgia Public Service Commission warning of higher natural gas bills, consumers are accessing Allconnect.com to evaluate rate plans and ensure they pay the lowest price possible.

“The Commission noted that the cold weather is expected to continue”

The Commission noted that December 2009 was 30% colder than the previous year resulting in consumers using more gas and receiving higher bills. Consequently, Georgia consumers are visiting Allconnect.com for an easy way to review natural gas providers and plans, including the option to compare variable versus fixed rate plans.

By entering their home address at Allconnect.com, consumers find a one-stop resource to find the lowest price and most convenient plan for their household. This free, online service not only shows current rates, but also highlights any special promotions, such as gift cards or bill credits for new customers. One-time fees, contract terms, and other specifics are clearly spelled out, and there is a best-price guarantee.

Allconnect.com is a free online resource to review and compare costs and choices for natural gas, and other essential home services including high speed Internet, phone, cable TV, satellite TV, home security systems, and electricity. Consumers also have the option to call 1-800-ALLCONNECT to reach a Home Services Consultant who will review the different rates and plans specific to the caller’s address.

“The Commission noted that the cold weather is expected to continue,” says Mark Miller, Allconnect CEO. “Even in Georgia, winter is not going to be over anytime soon. By reviewing their natural gas plans and rates at Allconnect, consumers could find savings immediately.”

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