CLIMATE CHANGE AND ENERGY POLICY ANALYSIS Abhishek Chaudhary, Tim C CLIMATE CHANGE AND ENERGY POLICY ANALYSIS Abhishek Chaudhary, Tim C. Keener, Joo- Youp Lee Department of Civil and Environmental Engineering, University of Cincinnati, Cincinnati, OH 45221 Y. Jeffery Yang USEPA, Cincinnati, OH 45268 CLIMATE FRIENDLY ENERGY POLICY SPECIAL CHALLENGES IN OHIO Issues that determine energy policy are: energy security, macroeconomic and uncertainty factors, local environmental issues and social issues Buckeye State significantly affected by federal Climate change legislation. Ohio General Assembly new Energy Bill might include a Renewable Portfolio Standard (RPS) . Problem -- burning coal produces SO2, NOx, mercury, particulates, and CO2. 1,000 kWh = 1 Ton CO2 emissions. CO2 from fossil fuel combustion represents 82% of U.S. GHG emissions. Only 2% of U.S. GHG emissions are CO2 released from other activities. Uncertainty over CO2 legislation, technology and cost. Environmental groups oppose coal and nuclear power plants. Regulatory and legal hurdles mounting. No type of technology is available to capture CO2.. Sequestration not ready until 2020 or later! U.S. electricity demand UP 136% since 1970. Electricity demand will GROW 40% in 26 years! Financial resource constraints were cited in the survey as the largest obstacle to expanding energy efficiency and climate protection initiatives. Areas of Improvement: Improved Industrial End-Use Efficiency Promote the use of more efficient processes and technologies in industry Policies that provide incentives for investment in efficient processes and combined heat and power technologies Expand coverage of efficiency standards to standard-design industrial equipment Provide more information on efficient technologies to industrial consumers Benefits: Further emissions reductions in the industrial sector. Improved Transportation End-Use Efficiency Reform regulatory and tax policies on automobiles and light trucks: Stringent CAFE Standards, Reforms to the “gas guzzler” tax, Efficiency standards for tires Promote hybrid vehicles (already commercially available in some Honda and Toyota vehicles) and fuel-cell vehicles. Very significant energy and climate policy benefits can be gained in this area without increasing net consumer costs or compromising safety. Significantly reduce fuel consumption per mile, thus reducing oil consumption and mitigating reliance on oil imports. Improved Research and Development Federal funding or tax incentives for R&D on improving the : Efficiency of the Electricity Generation Process, End-use Technology Support non-fossil fuels and carbon sequestration Reduce future energy prices ,fuel consumption per kWh, with GHG benefits. Carbon sequestration technologies could enable continued reliance on coal consistent with a GHG regulations. Improved natural gas production and transportation infrastructure technology Rate incentives, Royalty relief and Tax incentives Streamlined permitting for pipeline and liquefied natural gas (LNG) facilities Access to public land for resource development This will facilitate the use of gas as a substitute for coal in electricity production and thus reduce GHG emissions.  Improved nuclear power and hydroelectric plants policies and technology Such as granting license extensions, Approving plant up ratings where warranted Finding new solutions to the nuclear waste problem Reduce electricity prices, and avoid very substantial coal consumption for electricity generation. Improved renewable energy resources policies and technology Such as production tax credits, a renewable portfolio standard and electricity transmission policies Wind, solar, geothermal, biomass and hydropower generation produce no net GHG emissions. Improved Buildings End-Use Efficiency Promote use of efficient technologies and green design in buildings Policies that require increased efficiency of energy end-use (such as building codes or appliance efficiency standards) encourage use of highly efficient equipment and technologies (such as tax incentives, product efficiency labeling, and Energy Star™ programs). Benefits: Reduction energy consumption, emissions and consumer operating costs over a product’s or building’s lifecycle, Reduced need for investment in new power plants.   RENEWABLE ENERGY POTENTIAL IN OHIO OPTIONS: Biomass digesters Solar panels Wind turbines Landfill methane Run-of-river hydro (uses existing dams) EXAMPLES: Logan County EC/Indian Lake HS residential class wind turbine, Avg. Monthly Energy Output of 583 kWh Butler REC/Miami University solar panels, Avg. Monthly Energy Output of 250 kWh Auglaize County Wenning Poultry Farm Biodigester, Est. Avg. Monthly Energy Output 1.8 MW CONCLUSIONS A “climate-friendly” energy policy can advance climate objectives while serving energy policy goals. However, a climate-friendly energy policy is not a substitute for climate policy. More significant GHG emissions reductions would be necessary in order to address climate change than can be justified solely on the basis of traditional energy policy objectives. In the long run, we can only curb climate change by weaning ourselves of our reliance on fossil fuels. The energy policy options outlined here represent can be important first steps in U.S. efforts to reduce GHG emissions.