Beyond Ozone: Integrating Clean Air & Clean Energy in the 21 st Century Bill Holman Director of State Policy Duke University’s Nicholas Institute for Environmental Policy Solutions 6 th Annual Unifour Air Quality Conference Lenoir Rhyne University Hickory, North Carolina June 15, 2012

Nicholas Institute’s Mission Help decision makers create timely, effective, and economically practical solutions to the world’s most critical environmental challenges

Future challenges Protect public health & environmental quality Grow the economy Plan for population growth and demand for energy services Ensure affordable, reliable and clean energy Comply with CSAPR, MATS, GHG, NAAQS, Boiler MACT, Coal ash, cooling water…

Past successes Attainment of health based standards Improved visibility in mountains Cost effective investments Clean Smokestacks Act of 2002 Improved Regional Planning –Unifour Air Quality Committee & more While economic & population growth increased

North Carolinians Support Clean Air Do you agree or disagree with the following statement: Protecting NC’s air and water is very important to attracting good jobs to the State. Strongly agree 55% Somewhat agree 28% Somewhat disagree 9% Strongly disagree 3% Not sure 6% Public Policy Polling 753 NC Voters April 19-20, 2011

The Big Picture Cleaner Air and Economic and Job Growth in the US Between 1970 and 2009 total emissions of the six principal air pollutants fell by 63 percent, while private sector jobs and GDP grew by 86 percent and 204 percent respectively. 1 1 Source: U.S. Department of Commerce, U.S. Department of Transportation, U.S. Department of Labor, U.S. Census, U.S. Energy Information Administration & air trends from:

Clean Air Act Save Lives and Protects Public Health 2 Cases AvoidedYear 2010Year 2020 Premature Mortality160,000230,000 Chronic Bronchitis54,00075,000 Non-Fatal Heart Attacks130,000200,000 Asthma Attacks1,700,0002,400,000 Hospital Admissions86,000135,000 Emergency Room Visits86,000120,000 School Loss Days3,200,0005,400,000 Lost Work Days13,000,00017,000,000 Benefits from implementation of the 1990 CAA Amendments 2

Benefits > Costs Household health costs reduced Worker productivity increased New equipment more energy & resource efficient Tourism economy in NC mountains depends upon healthy air and scenic views

Clean Air Policies Support U.S. Environmental Technology Industry The costs of pollution control are not just thrown away but show up as increased demand for firms that produce clean technologies The United States is the world’s largest producer and consumer of environmental technologies worldwide US exported $43.8 billion worth of environmental technology 9 –larger than exports of sectors such as plastics and rubber products 9 International Trade Administration, US Department of Commerce, c/$FILE/Full%20Environmental%20Industries%20Assessment% pdf 452c/$FILE/Full%20Environmental%20Industries%20Assessment% pdf

Economic Opportunities for NC Energy Hub in Charlotte Clean Tech Cluster in RTP –Smart grid –Electric vehicles –Renewable energy

Economic Opportunities in Unifour

Economic Opportunities II Google & Apple & More

Clean Smokestacks Act Provided affordable, reliable & clean electricity Put NC ahead of federal rules –All coal fired plants will be scrubbed or retired by 2013 –New gas fired plants built or under construction

Clean Smokestacks Act Spread out compliance costs for Duke Energy and Progress Energy over 11 years –Compliance with Cross State Air Pollution Rule (CSAPR) & CAIR –Compliance with Mercury & Air Toxics Rule (MATS) –Other utilities will have 3-5 years to comply

Clean Smokestacks Act Mitigated cost escalation risk Reduced air pollution Helped attain air quality standards –+ for economic & environmental health Provided public health benefits sooner

Clean Smokestacks Created construction jobs Collaboration between utilities, State and environmental organizations –Renewable energy standard –Utility business model –Duke – Progress merger New paper by David Hoppock, Sarah Plikunas, et al on costs and benefits

Clean Smokestacks Costs

Clean Smokestacks Benefits

21 st century integration new models; new collaboration economy & environment energy & air quality & climate transportation & air quality –conformity climate & water & energy –Catawba Wateree Water Mgt Group water supply & water quality –NC hydrologic modeling

21 st Century Integration Electric utility regulation & environmental regulation Risk based decision model by Patino & Hoppock

21 st Century Integration Transportation – air quality – energy - land use > conformity Estimate multiple benefits from investments Raborn, et al

Unifour AQC Local & regional action is critical –Keep it up! Energy (and water) efficiency Renewable energy Sustainability Transportation

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