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Energy Resources and Conservation Scott D. Clausen, Esq.

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Page 1: Energy Lecture

Energy Resources and ConservationScott D. Clausen, Esq.

Page 2: Energy Lecture

Scott D. Clausen, Esq.

• Practicing attorney of 11 years

• American Council on Renewable Energy

• Environmental Protection Agency

• Minnesota Pollution Control Agency

• Focus is Clean Air Act

Page 3: Energy Lecture

Learning Objectives

• Defining “Energy”

• Discuss the types of energy sources and their impacts on the environment and human health

• Broad overview of energy law, regulations, and policies

• Focus on Clean Air Act and its impact on public health

Page 4: Energy Lecture

What is Energy?• Energy is the ability to do work

• Chemical

• Mechanical

• Electrical

• Thermal

• Nuclear

Page 5: Energy Lecture

What is Energy?

• Energy is frequently combined

• Chemical

• Thermal

• Mechanical

• Electrical

Page 6: Energy Lecture

What is Energy?

Energy use can be generally divided into two categories

Energy for Transportation: • Gasoline • Diesel fuel • Kerosene (jet fuel) • Ethanol / biodiesel • Natural Gas • Electricity • Hydrogen

Energy for Electricity/Heat: • Coal • Natural Gas • Uranium • Fuel Oil • Biomass (wood, MSW) • Wind/Solar/Hydro • Geothermal

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Energy Sources

Fossil Fuels

OilCoal Natural Gas

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Health Effects of Fossil Fuel Production• Work-place hazards:

• Injuries/death from mine cave-ins, falling rock, and debris

• Mine fires / explosions / well blow outs / toxic gases

• Injuries from heavy machinery

• Black lung / cancer

• Possible health effects from fracking - exposure to toxic chemicals

• Increase in birth defects /cancers

• Radiation dangers

Page 12: Energy Lecture

Environmental Effects of Fossil Fuel Production

• Mountain top removal

Page 13: Energy Lecture

over burden

Coal

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Environmental Effects of Fossil Fuel Production

• Mountain top removal

• Strip mining

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Environmental Effects of Fossil Fuel Production

• Mountain top removal

• Strip mining

• Oil Spills

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Environmental Effects of Fossil Fuel Production

• Mountain top removal

• Strip mining

• Oil Spills

• Water Contamination

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Environmental Effects of Fossil Fuel Production

• Mountain top removal

• Strip mining

• Oil Spills

• Water Contamination

• Air Pollution

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Environmental Effects of Fossil Fuel Use

• Soil / Water pollution

• Fly Ash / Ash Ponds

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Environmental Effects of Fossil Fuel Use

• Soil / Water pollution

• Water use

Page 27: Energy Lecture

Environmental Effects of Fossil Fuel Use

• Soil / Water pollution

• Water use

• Air pollution

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Energy Sources

Renewable Sources

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The Bottom Line• All forms of energy production comes

with environmental issues

• energy use has environmental consequences

• Renewable energy, on the whole, has fewer environmental impacts

Page 39: Energy Lecture

Energy Regulation

Page 40: Energy Lecture

Energy Regulation

• Energy is regulated at both the state and federal level

• State PUCs

• FERC

• There are a number of non-governmental “regulators” - especially in electricity

• NERC

• ISOs/RTOs

Page 41: Energy Lecture

Pipeline Regulations

• Interstate oil and gas pipelines regulated by FERC, who really regulates the rate charged by pipeline owners

• Rates must be “just and reasonable”

• Open access to pipeline

• Transparency

• FERC also regulates wholesale oil and gas markets to protect against “manipulation”

Page 42: Energy Lecture

Electricity Regulations

• Historically - utilities were vertically integrated monopolies

• Deregulation in 1990s

Primer on Energy Markets

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Electricity Regulations

• PUC / PSC

• FERC

• EPA

• NERC

Page 47: Energy Lecture

Clean Air Act• Originally passed in 1970

• Significantly amended in 1977 and 1990

• Laws prior to 1970 largely called for the study of air pollution and the study of mechanisms to reduce pollution

• 1970 Clean Air Act greatly expanded federal authority and contains the core provisions of what is known as the Clean Air Act

• Required federal and state regulation of air pollution

• Regulated stationary and mobile sources

• Environmental Protection Agency established on December 2, 1970 and tasked with administering and enforcing Clean Air Act

Page 48: Energy Lecture

Source: EPA

Page 49: Energy Lecture

Clean Air Act

• Congressional Findings:

(2) that the growth in the amount and complexity of air pollution brought about by urbanization, industrial development, and the increasing use of motor vehicles, has resulted in mounting dangers to the public health and welfare, including injury to agricultural crops and livestock, damage to and the deterioration of property, and hazards to air and ground transportation

Page 50: Energy Lecture

Clean Air Act

• Congressional Declarations:

The purposes of this subchapter are—

(1) to protect and enhance the quality of the Nation’s air resources so as to promote the public health and welfare and the productive capacity of its population

Page 51: Energy Lecture

• Title 1 Sets National Ambient Air Quality Standards - directs EPA to set pollution limits at levels that will protect public health

• Six Criteria Pollutants

• NOx (1 hr - 100 ppb)

• SOx (1 hr - 75 ppb)

• O3 (8 hr - .075 ppm)

• CO (1 hr - 35 ppm)

• PM (PM10 - 24hr - 150 μg/m3) (PM2.5 - 12 μg/m3 annual avg)

• Pb (0.15 μg/m3)

• Sets up attainment areas

• Attainment vs. Non-Attainment

• PSD / Non-Attainment Plans

Clean Air Act

Page 52: Energy Lecture

• Regulates 110 Hazardous Air Pollutants

• Also regulates emissions from vehicles

• 1990 Amendments addressed acid rain

• Title V permits

• Stratospheric ozone

Clean Air Act

Page 53: Energy Lecture

Clean Air Act• cut ground-level ozone, a dangerous component of

smog, by more than 25 percent since 1980;

• reduced mercury emissions by 45 percent since 1990;

• reduced the main pollutants that contribute to acid rain, sulfur dioxide and nitrogen dioxide, by 71 percent and 46 percent, respectively since 1980;

• phased out the production and use of chemicals that contribute to the hole in the ozone layer; and

• reduced the lead content in gasoline, which has cut lead air pollution by 92 percent since 1980.

Union of Concerned Scientists

Page 54: Energy Lecture

Clean Air Act

• According to EPA, between 1970 and 1990, the Clean Air Act prevented:

• 205,000 premature human deaths

• 18 million child respiratory illnesses

• 672,000 cases of chronic bronchitis

• 843,00 asthma attacks

• 189,000 cardiovascular hospitalizations

• 21,000 cases of heart disease

Page 55: Energy Lecture

Health Effect Reductions (PM2.5 & Ozone Only) Pollutant(s) Year 2010 Year 2020

PM2.5 Adult Mortality PM 160,000 230,000

PM2.5 Infant Mortality PM 230 280

Ozone Mortality Ozone 4,300 7,100

Chronic Bronchitis PM 54,000 75.000

Acute Bronchitis PM 130,000 180,000

Acute Myocardial Infarction PM 130,000 200,000

Asthma Excaberation PM 1,700,000 2,400,000

Hospital Admissions PM, Ozone 86,000 135,000

Emergency Room Visits PM, Ozone 86,000 120,000

Restricted Activity Days PM, Ozone 84,000,000 110,000,000

School Loss Days Ozone 3,200,000 5,400,000

Lost Work Days PM 13,000,000 17,000,000

Source: EPA

Page 56: Energy Lecture

New Rules Under CAA

What is Regulated How They Protect Public Health

Health Benefits by the Numbers

Benefits vs. Costs

Mercury & Air Toxics

Standards

Limits emissions of mercury, arsenic, acid gases, and other non-metalic toxins from coal-fired power plants

- Mercury exposure can damage a child's brain development

- Toxins create acid gas, impairing lung function

- Prevent 130,000 asthma attacks per year

- Prevent up to 11,000 premature deaths per year

- Prevent 4,700 hear attacks per year

- Benefit: $90 billion

- Cost: $10 billion

Cross-State Air Pollution Rule

- Limits power plant emissions which cause smog & particle pollution

- Reduces levels of SO2 and Nitrogen Oxides (NOx)

- NOx exposure can cause emphysema and bronchitis

- SO2 and NOx aggravate existing heart disease and asthma

- Prevent up to 34,000 premature deaths per year

- Prevent 19,000 cases of acute bronchitis by 2014

- Prevent 19,000 hospital and emergency room visits per year

- Benefit: $280 billion - Cost: $7.2 billion

Source: EPA

Page 57: Energy Lecture

Climate Change• Section 111(d)

• Each state given an emission target to meet by 2030 expressed in tons/MWhr

• States have to develop plans to meet standard

• Flexible approach

• EPA approves the plan and monitors compliance

• Many legal questions

Page 58: Energy Lecture

Conclusion

Thank You