Prof. David Driesen – The Keystone EIS’ Grudging Acknowledgment of Environmental Impact

Professor David Driesen teaches at the Syracuse College of Law and at SUNY ESF.  He specializes in environmental law, international environmental law, and constitutional law.  He edited and contributed two chapters to the seminal Economic Thought and U.S. Climate Change Policy, published by MIT Press in 2009.  

This blog post originally appeared on March 7th, 2014, at the Center for Progressive Reform’s blog.  The original post can be found here.  It is reprinted here with the permission of both the author and the original host.

 

The media has reported, erroneously, that the Obama Administration’s environmental impact statement concluded that the Keystone Pipeline would have no impact on global climate disruption. The facts are a bit more complicated, and much more interesting. Basically, the final EIS concedes that Keystone would increase greenhouse gas emissions, but it uses a silent political judgment masquerading as scientific analysis to minimize its estimate of the increase’s magnitude. Accordingly, President Obama has ample grounds to reject the Keystone Pipeline application.

Let me explain. The EIS concedes that the construction project creating the Keystone Pipeline would produce .24 metric tons of carbon dioxide equivalents (MMTCO2E) per year until TransCanada completes the pipeline. It also admits that operation of the pipeline after construction would produce 1.44 MMTCO2E per year, about the emissions of 300,000 passenger vehicles.

Although this is a lot of emissions, the really huge emissions come not from the construction and operation of the pipeline, but from the extraction and use of tar sands oil. The EIS concludes that the tar sands oil transported through the pipeline would produce a whopping 147 to 168 MMTCO2E per year in lifecycle emissions, approximating the annual emissions of more than 30 million cars. The huge emissions associated with tar sands oil has led James Hansen, a leading climate scientist, to conclude that exploiting tar sands oil means “game over” for climate change.

Now, here is where it gets interesting. In spite of the some 500 tons of annual emissions that the EIS concedes comes from the tar sands oil that the Keystone Pipeline would carry, the EIS concludes that this project would produce only 0 to 27.4 MMTCO2E annually. Now the high end of that 0 to 27 estimate is a pretty high number. Indeed, at the high end, the rejection implies a savings of emissions comparable to that of proposed new standards for emissions from trucks. But even this “high end” estimate reduces the estimate of emissions tar sands oil associated with the Keystone by more than 80% from what it might be.

It’s not too surprising that the media has equated this minimization with denying emissions altogether, even though the combined high end estimated emissions from construction, operation, and added tar sands production exceed those of 6 million vehicles. Six million is a lot of cars, but not nearly as many as 30 million. Nor is it too surprising that the media has attributed this disappearing act to corruption, since the contractor that prepared the EIS, Environmental Resources Management (ERM), had Keystone as a client in the past. But there is a logic to this that has escaped media attention.

The logic is this: stopping Keystone’s construction would not necessarily stop the production of all of the oil the pipeline would carry. It is possible that some or even all of that oil would be produced anyway and shipped via other pipelines or rail. ERM, corrupt or not, estimates that a very large percentage would be produced anyway, perhaps all of it. This assumption does not change the concession about emissions from operation or construction, but it radically reduces the estimate of the pipeline’s impact on emissions from tar sands oil exploitation.

Several analysts and financial institutions disagree with ERM, finding that failing to build Keystone would significantly influence tar sands production. And ERM concedes that if no new pipelines are built and prices of oil range from $65 to $75 a barrel, denying this permit would have a big impact on production.

But all of these findings depend on economic analysis, whilst tar sands oil’s future depends, in large, part on political decisionmaking. There was some tacit acknowledgment of this political dimension in the Supplemental EIS, which considered, for the first time in this process, the possibility that citizens concerned about tar sands oil’s impact would succeed in blocking construction of new pipelines to carry tar sands oil altogether. But citizens’ goals go further than that. They want to shut down tar sands production. They argue vehemently against expansion of rail capacity to carry tar sands oil, since rail oil transport poses safety risks greater than those stemming from pipelines. An explosion last summer destroyed the town of Lac Mégantic, Quebec, killing 47 people. And, if it comes to that, environmentalists will oppose shipping tar sands oil by existing pipelines, although that’s a harder issue to win on. In short, it’s possible that stopping Keystone XL would ultimately eliminate the 500 tons of emissions associated with its capacity and add political momentum to stopping production of tar sands oil altogether.

So, what does all of this mean for President Obama? President Obama pledged to disapprove Keystone if it substantially increased greenhouse gas emissions. Even without entering the thicket of considering the pipeline’s impacts on tar sands production, Obama could disapprove the project simply based on the narrow technical ground that emissions associated with the pipeline’s construction and operation are significant. But he should also recognize that the view that construction of a new pipeline would have no impact on production at all seems extreme, and consider that even ERM’s projections suggest the possibility of significant remaining emissions from production.

But Obama is a President, not just an administrator. And he needs to consider this decision in the broader context of how he wants to contribute to shaping the arc of history. That is, he needs to consider this decision in the context of the broader political movement to stop tar sands production altogether in order to reverse the trajectory of ever increasing fossil fuel use and the dire consequences associated with that. Therefore, he should disapprove the Keystone pipeline and do everything in his power to shut down alternatives to it. Even if his leverage over these additional decisions is limited, his disapproval decision gives activists some time to work on efforts to shut down alternative transportation routes and ultimately production.

Nobody, certainly not the technocrats who prepared the EIS, knows whether the Keystone denial would only reduce the emissions that spell game over for climate disruption or constitute the first step in ending them altogether. But Obama needs to be one of the forces moving us toward shutting down a project that would have devastating consequences for America, the project of tar sands production.

 

Biomass Energy is More Than Corn Ethanol

I’ve touched on my thoughts about biofuels in previous posts. Essentially, I feel that (and a lot of science has shown that) corn ethanol is a waste of effort and energy, resulting in soil degradation and harm to farmers who have to deal with fluctuating corn prices. On the other hand, cellulosic ethanol has potential, but has yet to make it to commercial scale at any real volume.

 
Biofuels are a major topic in the energy conversation and fairly well covered by the media and in policy. But biomass energy is more than just biofuels. Biomass as a whole represents half of all renewable energy, according to the latest EIA data. According to this EIA data, wood biomass represents 2.007 quads (quadrillion British thermal units), compared to just 1.297 quads from liquid biofuels. There is also a category of “other biomass” representing 0.480 quads, which includes municipal solid waste from biological sources, as well as landfill gases and any other non-wood biomass.

 
It’s important to remember that wood biomass represents such a large portion of our renewable energy mix. Wood can be an affordable, sustainable source of energy for home heating in many rural areas. Additionally, modern outdoor wood boilers are more efficient and have lower emissions than the wood stoves of the past. Wood is typically considered a “traditional” fuel, rather than a modern energy source or an energy source of the future. But pellet stoves and other end-use technologies have made it progressively more important as a source of modern renewable energy.

 
Additionally, the production of energy crops has been increasing as farmers put some of their marginal land into the production of woody plants or perennial grasses. In upstate New York, this is typically shrub willow, a fast-growing woody crop related to the willow trees many people are familiar with. I am part of the shrub willow research group at the State University of New York College of Environmental Science and Forestry. We focus on the economic, social, and environmental sustainability of willow production systems. The Biomass Crop Assistance Program (BCAP) through the USDA was recently implemented to provide funding to farmers who establish energy crops on their land and to help with connecting farmers with end-users of the biomass. Energy crops tend to run into a chicken-and-egg scenario. It is difficult to convince people to grow the crop without a solid long-term market for the biomass, but it is also difficult to establish the market without a solid long-term supply of biomass. The BCAP help to alleviate this issue by setting up contracts between growers and end-users. The BCAP is likely to continue under the new Farm Bill, allowing more farmers to plant their marginal land with shrub willow or other energy crops, such as hybrid poplar, sorghum, or switchgrass.

 
Energy crops can be used in cellulosic ethanol systems when these systems become commercial scale, but can also be used directly for heating and electricity production. Some coal plants have found that co-firing biomass (usually wood) with coal, with only minor retrofitting of the plant, can be an economical way to reduce emissions in the face of stricter regulations. There are also several biomass-to-electricity plants, including some in upstate New York that run primarily on wood residues from logging operations and other waste wood. Wood and grasses can also be pelletized and burned for home heating. The new Gateway Center at SUNY ESF contains a wood pellet boiler that provides heat and hot water to campus for 3 seasons of the year.
In a future post, I can speak more specifically to the environmental benefits of growing energy crops over traditional row crops on marginal land. But for now, when you think of renewable energy, don’t just think of solar panels and wind farms!

 

For more information on the potential of wood biomass in the Northeast.
For more information on the SUNY ESF willow biomass research group.

The State of the Union and Energy Policy

I always look forward to the end of January to hear what the President has to say on energy policy in the annual State of the Union address. It is interesting to hear the way the data will be spun, and to learn the stated administration’s goals for the coming year. This year’s speech included quite a long discussion of the past year’s energy developments and the goals for the coming years. President Obama discussed the trends I mentioned in my last post: more domestic energy production, less imported oil. He also talked about the importance of addressing climate change, which he calls “a fact,” through emissions reductions at (primarily coal) power plants. Importantly, he also emphasizes the importance of energy consumption reductions, specifically through the CAFE (Corporate Average Fuel Economy) standards, which reduce the average fuel consumption of the passenger cars and light duty trucks fleet.
There were a number of omissions that stuck out to me during the energy-focused portion of his speech. During his discussion of the importance of improved energy efficiency, he failed to mention that the U.S. is consistently the highest consumer of energy on a per-capita basis, with only a couple of other countries coming even close to our consumption. I suppose this would not fit in well with the narrative of America as the greatest nation on earth, but I think it’s an important fact to acknowledge. This ties in with his statements on climate change. He says that the U.S. has “reduced our total carbon pollution more than any other nation on Earth”. This isn’t exactly a fair statement without acknowledging that we are still one of the largest emitters of CO2, particularly on a per-capita basis. It’s also interesting that he discussed the importance of a “cleaner energy economy” just minutes after talking about ramping up domestic oil production, but I will get to that.

President Obama also failed to mention one of the biggest pieces of energy news so far this year: the contamination of the drinking water supply in West Virginia as a direct result of the coal industry. For about a week (and more for some citizens), 300,000 West Virginians lost access to water in their homes after a chemical that is used to process coal leaked into the water supply upstream. (A good commentary on the situation from National Geographic can be found here.) While domestic sources of energy can be beneficial to the economy, we must also consider the environmental, social, and health impacts of using these resources.

On that note, I found the President’s commentary on domestic oil production to be somewhat misleading. He is technically correct when he states we are currently producing more oil domestically than we are importing, but it’s important to remember that we still import just less than half of our consumption. Additionally, the definition of “oil production” in a lot of these calculations has changed to include all liquid fuels. These liquid fuels include biofuels (which are currently dominated by corn-to-ethanol production, a fuel that has its own set of environmental and social concerns), natural gas liquids, and coal- and gas-to-liquids production (albeit a small portion). It is misleading to lump all of these together in one category when each has it’s own concerns for use. For example, ethanol has been shown to have a very low net energy, meaning that it takes almost as much energy in the form of petroleum products to produce the energy-equivalent amount of ethanol. If the energy used to produce the ethanol comes from imported fuels, then we have gained little.

In addition, a lot of the oil we produce domestically, as I discussed in my last post, comes from sources that are harder to get, such as offshore and tight shale sources. This means a higher energetic and monetary cost to production. I am not sure if we’ll actually be able to “keep driving down oil imports and what we pay at the pump” using these sources of energy, as the President seems to hope.

Overall, I think that the message of President Obama was positive regarding energy policy. It is important to acknowledge climate change and take steps towards a low-carbon energy economy. It is also necessary to look to the future of both fossil and renewable energy resources, as both are important components of our energy future. And, as the President states, natural gas (done correctly and safely) does have the potential to act as the bridge fuel between our current carbon-heavy, fossil-based energy economy and a future of low-carbon, renewable fuel. I just hope that the President and Congress spend this year working on policy that works towards that new future.

[Quotes taken from the Washington Post transcript of the speech]

U.S. Oil Boom: What it means for prices, the future, and the environment

If you watch the news or read the paper, you’ve probably heard the good news: the United States is in the midst of an oil boom! Supply is higher than was anticipated even just a few years ago, imports are decreasing, exports are increasing, and we should be seeing better prices at the pump for the foreseeable future. This all sounds great, and it might be, but what are the broader implications?

For a good overview of the increase in U.S. oil production recently, see this article. A quick summary: oil production has exploded recently in the U.S.; the U.S. has reached the goal President Obama laid out in 2011 to decrease imports by one-third by 2025 in just 3 years. Texas is now producing more crude oil than Iran, twice as much as it was producing just 2 years ago, according to the EIA (Energy Information Administration). Where is the oil coming from, and what are the consequences of its production?

Most of the oil boom can be attributed to the growth of two major technologies, usually used together: horizontal drilling and hydraulic fracturing. You’ve likely heard of “hydrofracking” with regards to natural gas, but it can also be used to extract oil from tight shale formations. Oil reservoirs underground are less like an underground lake and more like an oil-soaked rock. In high quality oil reserves, the pressure from the natural gas in the reservoir sitting on top of the oil (or the air, water, or gas pumped into the ground by the drillers) is sufficient to push the oil to the surface. In shale formations, the pores holding the oil are smaller and hold the oil “tighter”, making it more difficult to extract. Hydraulic fracturing is used to crack open the shale formations to allow the oil to flow more easily out of the formation and to the surface through the drilling pipes. As the Bloomberg article mentions, this is done using high-pressure water flows, and sometimes explosives. Traditional wells for gas and oil are vertical, but technology now allows for horizontal drilling. This means that for each drilling rig, the oil companies are able to drill vertically and then horizontally from there, allowing them to drill a larger surface area and extract more oil per drill rig than with a simple vertical well. Used in conjunction with hydraulic fracturing, this technology has allowed previously unproductive or uneconomical fields to be produced.

There are some benefits to this oil boom. It does allow us to decrease imports and, as the article mentions, have some more leverage with sanctions in the Middle East since we are slightly less dependent upon them. Theoretically, this production boom is also creating jobs in the oil industry and helping the local economies around the newly producing oil fields, but the evidence is shaky on whether the long-term benefits are really there. Hopefully, we will continue to see relatively low gas prices and perhaps lower prices for other products dependent on oil for their production, including food.

But at what cost are we obtaining this oil? First, there is the environmental cost. Oil drilling of any kind is risky in terms of potential environmental damage, and hydraulic fracturing is considered to be one of the riskier practices. However, as we were reminded this week by the water crisis in West Virginia, all fossil fuels have a large environmental cost. Which ones do we decide are too much? Second, there are high economic and energetic costs. The technology is expensive and drilling unconventional sources is almost always more expensive with less return. David Ricardo described the “Best First Principle” in terms of development of agricultural land, stating that the highest quality land (that which produces the greatest yield) would be put into production first, followed by lower and lower quality land over time as more land was required. This principle can also be applied to oil production. The easily-obtained, low energy and monetary cost oil (think Spindletop, with oil essentially shooting out of the ground) was produced first and now we are required to go after lower quality oil, with its higher energetic and monetary costs. Although the initial surge in production has allowed gas prices to remain low, production in hydraulically fractured wells tends to drop off quickly. Additional fracking is required to continue production, but the production of the well will continue to taper off as time goes on. We’re experiencing the boom now, but we should look ahead to how we will handle the bust. Think about it the next time you’re filling up your car with the “cheap” gas.

Exploring Myths and Misconceptions in Energy

I recently finished reading my new favorite energy and energy policy book, “Energy Myths and Realities: Bringing Science to the Energy Policy Debate” by Dr. Vaclav Smil. While I highly recommend that anyone interested in energy policy or the science of our energy systems invest in the book, I’d like to offer a sneak peek into the debunked myths that Dr. Smil addresses. He begins with myths that have somehow persisted through the decades (or centuries). The first myth is that electric cars will be the transportation method of the future. Dr. Smil reminds us that electricity is not free or, in most cases, clean. The majority of electricity comes from fossil fuel power plants, mostly coal and natural gas. As concerns about mountain top removal, hydraulic fracturing, and carbon emissions come up in the mainstream news, it’s easy to forget that those sources of energy power our electronic devices, lights, appliances, and so on. Adding our cars to that pressure would hugely increase the demand for electricity, resulting in the need to build many more power plants (or, more ideally, renewable generation), new transmission lines, and stations that are capable of recharging vehicles. Electricity generation and transmission are also highly inefficient, resulting in losses of electricity at the plant and in the lines. While renewable energy generation is expected to increase significantly over the next few decades, Dr. Smil argues that it is unrealistic to think that this will be enough to power a fleet of electric cars. However, he finds hope in the increased fuel efficiency standards in gasoline and diesel engines, both those realized at this time and the potential for greater increases under tighter standards.
Dr. Smil then turns his attention to more recently in-the-news “myths”, or more accurately, over-hyped technologies or principles, including peak oil, carbon sequestration, biofuels from plants, wind power, and the pace of energy transitions. His main point in this section is that it is very easy to be either overly pessimistic about the energy situation we face or, perhaps more disconcertingly, to be overly optimistic about both new technologies and energy sources and the rate at which they can be implemented. For example, corn ethanol policy is meant to help farmers by providing a market for their crop, to reduce our energy dependence on other nations, and to reduce carbon emissions. However, it is debatable whether any of those goals have been even slightly achieved. Additionally, the resource is limited in how much can be produced and how much can be demanded. Currently, about 10% of the gasoline you pump into your vehicle is ethanol and the EPA is hesitant to raise that to 15%, so the industry has hit a “blend wall” wherein the market is saturated with product unless the gasoline consumption of the U.S. increases. On the other hand, Smil points out that if we tried to replace all of the gasoline used in U.S. with corn ethanol, more arable land would be required to produce the corn required than actually exists in the United States.
In a similar manner with the other energy myths, misconceptions, and overexcitements, Dr. Smil uses both the extensive body of literature on various energy sources and some simple arithmetic to provide sound evidence and advice to his audience, from concerned citizens to policymakers.