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House Appropriations Subcommittee Hears Comments On Energy, Carbon Sequestration Bills
The House Appropriations Subcommittee on Fiscal Policy held a hearing this week on legislation that would take the next step in expanding the state's Alternative Energy Portfolio Standards and require the development of a carbon sequestration network.
 
The bills discussed included House Bill 80 (Vitali-D-Delaware) and its Senate companion Senate Bill 92 (Erickson-R-Delaware).
 
"Pennsylvania can lead the nation with this technology," Rep. Vitali said. "It would provide the state with economic benefits through jobs in a variety of fields and push us to the front of the fight against global warming. Considering that we are facing a weakening national economy, it is time to take advantage of every opportunity, particularly when that opportunity provides for good-paying jobs and environmental stability."
 
At the same time four of Pennsylvania’s largest environmental groups stepped up their opposition to proposed new state-level energy legislation, calling on the bill’s supporters to either fix flawed language dealing with carbon capture and sequestration, or scrap the bill completely.
 
The Subcommittee heard testimony from Christina Simeone, special assistant on energy and climate change, Department of Environmental Protection; Edward D. Yankovich, international vice president, United Mine Workers of America; Norm Shilling, product line leader for power generation, GE Gasification, a division of GE Energy; and Janet Lauer, director, 3 Rivers Clean Energy. Simeone said these bills would promote the development of clean energy and strengthen Pennsylvania’s energy independence.
 
“By requiring a diverse portfolio of renewable and alternative energy supplies, Pennsylvania is positioning itself as a progressive leader in these clean energy technologies that create jobs and promote economic growth," Simeone said.
 
Yankovich said the United Mine Workers of America supports these initiatives for carbon capture and sequestration.
 
"We certainly are pleased about the opportunity to testify to the economic benefits that the development and implementation of carbon capture and sequestration can bring to Pennsylvania, which also happens to be the fourth-largest coal-producing state in the nation," he said.
Lauer discussed the need for the network and how it would position Pennsylvania nationally in the alternative energy industry.
 
"In order to position Pennsylvania to compete in a carbon constrained world, the infrastructure – a network of pipelines to carry the carbon and its sequestration field – must be built," she said. "It is critical that the state move forward on carbon sequestration which will allow Pennsylvania to be a leader in this arena."
 
Shilling said the addition of coal with limited carbon emissions to the advance energy portfolio standard is a model by which coal will remain a vital part of Pennsylvania's energy supply.
 
"It provides a key incentive for private developers to implement high-efficiency, cleaner coal technologies that are ready to capture and sequester carbon dioxide."
 
The bills would increase Tier I requirements in the Alternative Energy Portfolio Standards from 8 percent to 20 percent from 2021 through 2026. Tier I requirements are the amount of electricity that electric distribution companies such as PECO must purchase from renewable sources such as wind and solar. They would also increase the amount of electricity from solar photovoltaic panels that electricity companies must purchase and use to 3 percent by 2026.
 
They would require that 3 percent of energy purchased by electric distribution companies must come from coal-fired power plants that capture carbon starting in 2015, and would require Pennsylvania to develop, own and operate a carbon dioxide sequestration network to store captured carbon.
 
Environmental Group Comments
 
The environmental groups commenting on the bills this week acknowledged carbon capture and sequestration merits support, but PennEnvironment, Sierra Club’s Pennsylvania Chapter, Clean Air Council and Clean Water Action pointed to several critical flaws in how the legislation is written which pose both environmental and economic risks.
 
“Carbon capture and sequestration could play a key role in solving global warming, but this technology should be advanced in a way that protects our environment and our state's economy. Unfortunately, this bill is flawed in both areas,” said Nathan Willcox, Energy & Clean Air Advocate with PennEnvironment.
 
“This bill requires the Commonwealth to assume all liability for geologic carbon storage that occurs at the first sequestration site, including environmental and private property damage, as well as fatalities, in the event of a facility failure,” said Jeff Schmidt, Director of the Sierra Club Pennsylvania Chapter.
 
“Given the scientific uncertainties of geological sequestration, and the inadequate length of time provided for full site characterization, these liability provisions represent an unacceptable threat to Pennsylvania and its citizens.”
 
“The legislation proposes that Pennsylvania assume initial liability for any problems associated with this unproven technology. That is a raw deal for Pennsylvania taxpayers,” said Joseph Otis Minott, Executive Director of the Clean Air Council. “If taxpayers are going to subsidize energy projects, let’s make it for wind and solar energy.”
 
“This bill has some huge loopholes for coal companies. We need to fix this bill so we don’t promote more coal plants in Pennsylvania that continue using the same dirty technology,” said Myron Arnowitt, Pennsylvania State Director for Clean Water Action.
 
The goal of CCS—the capture and permanent storage of global warming pollution to prevent such pollution from escaping into the atmosphere and contributing to the warming of the planet—is something that the environmental community supports. Coal-fired power plants are the largest source of global warming pollution in Pennsylvania and nationwide.
 
But beyond concerns about mandating electricity generation from CCS-equipped power plants before any such facilities even exist in commercial form anywhere in the world, the groups pointed to two critical loopholes in the language of House Bill 80 and Senate Bill 92:
 
-- In the event that a viable sequestration network is not developed, coal-fired power plants that installed carbon capture technology would still receive credit under the state’s Alternative Energy Portfolio Standard. In other words, plants could be receiving credit for capturing and sequestering their pollution—without actually sequestering their pollution. In the worst case scenario, this could incentivize the construction of new coal-fired power plants under the AEPS that don’t actually sequester their global warming pollution. Every new coal plant that doesn’t sequester its global warming pollution creates new pollution equivalent to adding hundreds of thousands of new cars to the road.
 
-- Rather than requiring that the utilities and electric generation facilities that created the global warming pollution pay for its clean up, the state would assume liability for the pollution sequestered by the first facilities to use CCS technologies. Additionally, HB 80 and SB 92 lack adequate provisions to protect ratepayers from utilities passing along the costs for CCS technologies through electricity bills. No one is sure how much liability for sequestration sites will cost, and without protection for ratepayers, sharp increases in electricity rates could occur. Studies out of MIT and the Western Governors Association found that CCS could increase the costs of electricity from coal by over 60 percent.
 
The four groups joined with Natural Resources Defense Council in drafting and submitting proposed amendment language to the bill’s sponsors (Rep. Greg Vitali, Rep. Chris Ross, Sen. Ted Erickson), but have yet to see their core recommendations incorporated into the language. Moving forward, the groups pledged to begin educating and mobilizing citizens across Pennsylvania on the issue.
 
“No one is saying that utilities and the government should abandon research on CCS technologies,” said Willcox. “But to require CCS in a manner that could incentivize new coal plants that don’t sequester their pollution—while leaving ratepayers and the state to foot much of the bill—is a dangerously misguided proposal.”
 
The groups did continue to praise the legislation’s call for an increase in the clean Tier 1 of Pennsylvania’s AEPS, as well as an increase in the ‘carve-out’ specifically for solar power. The legislation would require that 20 percent of the state’s electricity come from cleaner sources including wind and solar power by 2026. The current Tier 1 standard for these resources stands at 8 percent.
Finally, the groups pointed out that several studies have documented how we can cut pollution to the levels scientists say are necessary to avoid the worst consequences of global warming, without the use of CCS technology.
 
On Wednesday, Greenpeace and the European Renewable Energy Council released a report that shows how the United States can cut global warming pollution from current levels by 85 percent by 2050 without carbon capture and sequestration—and do it at half the cost and with twice the job creation of what it would take to achieve these reductions with carbon capture and sequestration, nuclear power and other non-renewable energy sources.
 
 

3/13/2009

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