After All, EPA to Regulate Climate Change via The Clean Air Act

The Environmental Protection Agency is set to make final new air-pollution standards for coal-fired power plants by mid-December, sparking disagreement among power companies about how quickly aging coal plants need to be pushed offline.

The EPA wants to give coal-fired plants three years to comply with the new standards—either by shutting down or going through expensive retrofits—with the possibility of a one-year extension.

The maintenance of baseload power is likely to be appropriate in many locations, meaning some coal fired and natural gas fired plants will not be de-commissioned. However, the likelihood of investors preferring the lower costs of green energy will mean that they will replace most sources.

The new rules will make some coal powered plants to shut down as it will not be economical to retrofit them. They will most likely be replaced by the new plants powered by natural gas. Renewables will pick some slack, but that is negligible in the big scheme of things. Unfortunately, US nuclear industry is still not ready to come back. We will probably wait another 10 years, and at that time probably buy nukes from Chinese who will perfect new technology and get experience building AP1000 reactors (AP1000® pressurized water reactor or PWR. It is the only Generation III+ reactor to receive Design Certification from the U.S. Nuclear Regulatory Commission (NRC)) long before we put one on the drawing board permitting process.

But in summary, EPA is moving to regulate climate change via The Clean Air Act, and because of the coal power plants shut down we may very well meet the Waxman-Markey climate and energy bill–aka the American Clean Energy and Security Act, ACES, H.R. 2454. The bill would put a cap on emissions of greenhouse gases, and would require high-emitting industries to reduce their output to specific targets between now and the middle of the century. The bill covers 85 percent of the overall economy, including electricity producers, oil refineries, natural gas suppliers, and energy-intensive industries like iron, steel, cement, and paper manufacturers. Emission cuts would start in 2012 and EPA is right on track.

The goals for U.S. emission reductions, below 2005 levels are 3 percent cut by 2012; 17 percent cut by 2020; 42 percent cut by 2030; more than 80 percent cut by 2050. We may achieve 2020 goals with retrofitting and shutdowns of coal powered plants and slowing economy. We will not meet other goals without injecting nuclear power.

EPA to Ease Air Emissions Rule on Power Plants

The Environmental Protection Agency (EPA), under industry pressure, is expected to ease an air quality rule that would require power plants in 27 states to slash emissions, said the Wall Street Journal. It appears that changes are needed because the original rule from July 2011 required steep reductions too quickly. This summer the administration, pressed by industry, forced the EPA to abandon an air-quality rule to curb ozone-forming smog. The agency also has delayed a rule on greenhouse-gas emissions.

The power-plant rule affects about 1,000 plants, requiring them to cut sulfur dioxide by 73% and nitrogen oxide by 54% from 2005 levels. Reductions must begin in January 2012, with compliance by 2014. Companies are expected to install new pollution controls or switch from coal to cleaner-burning natural gas.

The EPA plans to allow certain states and companies to emit more pollutants than it previously permitted. EPA spokesman Brendan Gilfillan said, “While we don’t have anything to announce at this time, EPA often makes technical adjustments … because data, including data in some cases provided by industry, turns out to be incorrect, outdated or incomplete.” It is interesting that EPA is using the real world and real time data and information to fine tune the rule. This is welcome news for both industry and environmental groups as it shows that future rule making will rely more on actual data and less on politics.

The move comes amid a backlash over the rule enacted last July, which the EPA has said will protect public health and prevent up to 34,000 premature deaths. Critics contend it will cost jobs, increase power costs and threaten electric reliability.

The EPA changes are expected to allow for emissions increases ranging from 1% to 4% above the July requirement, depending on the pollutant, said the WSJ. The Cross-State Air Pollution Rule is intended to reduce smog-forming chemicals emitted from power plants that often drift into other states. The pollutants can cause heart attacks and respiratory illnesses.

When the rule is in place some utilities are planning to shut down a portion of their operation in order to comply. Some states have attacked the rule and sued the EPA, saying the regulations are unnecessary and dangerous.

Carbon Regulations Under Fire: AB32 Delayed to 2013

At a legislative hearing on the status of California’s cap-and-trade system yesterday, the Chair of the California Air Resources Board (CARB), Mary Nichols, indicated they are proposing to start the program in 2012 but delay the first compliance period to 2013.

Cap-and-trade is a cornerstone of California’s approach to reducing greenhouse gas (GHG) emissions to 1990 levels by 2020. This reduction is preserved in AB32, the state’s climate change legislation. Cap-and-trade is also a key component of the state’s participation in the Western Climate Initiative, which involves a number of US states and Canadian provinces and aims to reduce carbon emissions across the partner jurisdictions.

Nichols said the quarterly auctions of emissions allowances that each large emitter in the state must turn in would begin in the second half of 2012, rather than February 2012 as planned. The first three-year compliance period, which originally covered 2012-14, will be shortened to two years.

CARB indicates that the one-year delay will provide flexibility and allow them to “stress test” the market mechanisms. They intend to release a draft of regulations covering allowance distribution and details on offset protocols within the next two weeks. Nichols indicated the agency is also on track to finish its regulations by the end of October.

Keep checking Locus or CARB’s website for more information.

EPA Delays Rules for Boilers to April 2012

The Environmental Protection Agency is delaying issuing final regulations aimed at cutting pollution from factory boilers until April 2012.

The delay is one in a serious of slowdowns in regulatory agenda to curb carbon dioxide emissions using the Clean Air Act and several rules aimed at reducing emissions from coal-burning power plants.

Although the federal court has ordered the EPA to implement the boiler standards, the agency has said it needed more time for public input. This latest delay would push the deadline for compliance to 2015 from 2014.

The EPA’s delay has frustrated environmental and public-health groups, which cite evidence that the rules would save lives and avert thousands of heart and asthma attacks.

Industry, on the other hand, has said that the rules would be extremely costly and difficult to implement.

Boilers are on-site generators that can provide energy for apartment buildings and shopping malls, as well as refineries and factories.

The EPA rules also would affect incinerators at industrial facilities. Small boilers located at universities, hotels, hospitals and other commercial buildings also might have to comply, though the EPA has sought to limit the impact on smaller emitters.

US EPA extends deadline for greenhouse gas emissions reporting program to Sept 30, 2011

US EPA today announced that they are extending this year’s deadline for their greenhouse gas (GHG) reporting program to September 30, 2011. The program was launched in October 2009, and requires large emission sources and fuel suppliers to report their GHG emissions to EPA on an annual basis.

EPA previously indicated that the original reporting deadline of March 31st would be extended to this summer. Today’s release specifies the new reporting deadline of September 30, 2011. According to EPA, the extension will allow them to further test their electronic reporting platform, and provide industry with the opportunity to provide feedback and become familiar with the tool prior to reporting.

As soon as the new electronic platform is ready and tested by EPA, Locus GHG module of ePortal  will be compatible and able to directly upload data into it.

Entities required to submit data must register with the electronic GHG reporting tool (e-GGRT) no later than August 1, 2011.  Locus can assist with this registration.

EPA will provide more detail on the extension in the coming weeks. For more information, see EPA’s website.

Locus Scored in Green Quadrant of Carbon and Energy Management Software Report

Locus’ Cloud-based Software High on Leading Analysts Lists

SAN FRANCISCO, Calif., 22 November 2010 — Locus Technologies (Locus), the industry leader in web-based environmental compliance and information management software, has been recognized as one of the top 28 firms for greenhouse gas (GHG) and Energy Management software in the report, “Green Quadrant® Carbon and Energy Management Software, 2010.” This report by Verdantix, an independent analyst firm focused on sustainable business strategies and market opportunities, comes only weeks after Gartner, Inc., the leading provider of research and analysis on the global information technology industry, in another study entitled “Sustainable Business Systems: Differentiating Sustainable Solutions by Functional Domain,” recognized Locus as a high growth, high foresight company whose software brings to its customers high enterprise efficiency and optimization intelligence. Gartner also recognized Locus’ focused analysis of key environmental parameters, including water foot-printing, and its incorporation of spatial data analysis in all of its SaaS solutions.

“Based on the insights from our customer panel and our in-depth interviews we define carbon and energy management software as: Software designed to help individuals responsible for carbon and energy management to collect, store, audit, report, analyze, and forecast carbon emissions and energy consumption data to meet business objectives such as planning, reduction, budgeting, compliance and trading,” said David Metcalfe, Verdantix Director. “The global market for carbon and energy software is intensely competitive — buyers choose from over 100 suppliers. To help buyers save time, save money and reduce risk in their selection process this Verdantix Green Quadrant report compares the 28 software applications that pre-qualify as a potential fit for $1 billion revenue firms. Our analysis is based on interviews with 15 buyers collectively representing firms with revenues of $260 billion, live demonstrations of the 28 applications and supplier responses to a 99 point questionnaire. Before jumping to conclusions about the best fit supplier, buyers need to conduct a detailed assessment of their business strategy, available budget and usage scenarios. Suppliers in the Challenger, Specialist and Entrepreneur Quadrants may meet requirements just as well as the Leaders,” added Mr. Metcalfe.

The Verdantix report recognized that Locus Technologies’ environmental compliance software has evolved into broader sustainable business software. The report states that Locus is one of only two firms in the Entrepreneurs Quadrant that claim more than 10 customers with more than $1 billion in revenue. The report further states that “the Entrepreneurs have more opportunity to win customers in the price-sensitive mid-market.” Overall, Locus scored strong in customer momentum, master data management and financial resources.

“We are very pleased that some of the leading industry analysts, first Gartner, and now Verdantix, have recognized Locus as a potential fit for $1 billion revenue firms in the sustainability, carbon and energy software space,” said Dr. Neno Duplan, President and CEO of Locus. “With our suite of diverse but well integrated products to organize water, energy, waste and carbon emissions information across different regulatory frameworks, Locus is well positioned to continue to lead the environmental software market. Locus has served this market exceptionally well since 1997, and maintains the leading position in many of its segments,” noted Dr. Duplan.

The environmental software market has become a multi-billion dollar industry with new players entering almost weekly. The current environmental software leaders in the Verdantix report include a mix of startups funded by venture capital and longtime software players from other arenas. According to Dr. Duplan, “Locus stands apart from this competition in terms of its long history and domain expertise. Since its founding 13 years ago, Locus has compiled a proven track record of delivering complex environmental information management and compliance solutions over the Internet to some of the world largest companies.” The company integrates a deep and versatile set of applications that not only manage GHGs but also provide management of other, mission-critical environmental data and information, such as water quality and resource consumption management.

Locus Wins Over a Dozen New Greenhouse Gas Verification Contracts

Locus takes the lead in GHG verification services for California Air Resources Board

SAN FRANCISCO, Calif., August 16, 2010 — Locus Technologies (Locus), the industry leader in web-based environmental compliance and information management software, has been selected for over a dozen new greenhouse gases (GHG) verification services contracts.

The GHG verification services cover facilities in California that are regulated by the California Air Resources Board (CARB). Locus is accredited as a verification body through CARB and has Lead Verifiers certified in all reporting sectors, including cement plants, refineries, and electrical transactions. As a part of these contracts, Locus Lead Verifiers will perform mandatory verification of CO2 emissions at selected California facilities. While verification is a requirement this year through AB32, companies are also using 3rd party verification to promote their brands and the accuracy of their emissions information.

The new GHG verification contracts include the following companies: Ameresco, Cardinal Cogen Inc., City of Oxnard, DG Fairhaven Power LLC. (owned by Marubeni Corporation), General Chemical, Lehigh Southwest Cement, Monterey Regional Waste Management District, Roseburg Forest Products, SRI International Cogen (operated and managed by International Power Technology Inc.), United Airlines, and US Pipe & Foundry. Several of the new awarded contracts cover multiple facilities.

“We are very pleased to have been selected by so many well-recognized firms for GHG verification services. Locus continues to expand its carbon practice at a rapid pace. Coupled with our carbon software services and domain expertise in all three key AB 32 reporting sectors in California including cement, refineries, and electrical transactions, Locus is becoming a partner of choice for all companies wishing to be credible in their carbon reporting needs.” said Neno Duplan, President and CEO of Locus.

San Francisco Chronicle | One word: emissions

CEO Neno Duplan would not disclose the dollar amount of the contract, which was announced last week, but, he said, “I can tell you, in this industry, it doesn’t get bigger than this.”

EPA Delays Start of New Rules on Emissions

The head of the U.S. Environmental Protection Agency said Monday the agency would delay subjecting large greenhouse-gas emitters such as power plants and crude-oil refiners to new regulations until 2011, and would raise the threshold for using the Clean Air Act to regulate carbon dioxide emissions.

This decision will be welcomed by the industry but will also afect many GHG (single product) software companies.