DETROIT – It's been less than a year since government agencies conducted an extensive review of the Obama administration's fuel efficiency standards, and clean energy advocates want to put the brakes on a new attempt to repeat the entire process.
On Wednesday, the Environmental Protection Agency held an all-day meeting on its proposal to reconsider requirements that the U.S. car and light truck fleet achieve an average 54.5 miles per gallon by 2025.
Carol Lee Rawn, director of Transportation Programs for the nonprofit group Ceres, attended the hearing. On top of the health benefits of reducing emissions, she maintains the current standards are keys to innovation and to ensuring that Detroit stays a driving force in the automotive world.
"It's necessary to have strong standards in place in order to protect the leadership position of the United States,” she stresses. “It's not going to be able to compete in this new world if it's falling behind on fuel efficiency and new technologies."
Critics say clean car standards place too much of a burden on manufacturers. However last year's review, in which the car companies were involved, found the standards to be reasonable and affordable for both consumers and automakers.
Michigan currently has more than 180 facilities that make components and materials that improve fuel efficiency, providing jobs that Rawn says would be in jeopardy if the standards were rolled back.
Dave Cooke, a senior vehicles analyst with the Union of Concerned Scientists, says there is clear evidence the standards already are working to save drivers money and cut emissions. He says any kind of a rollback will hit Americans in the pocketbook.
"To date, we're saving about $50 million a day thanks to the standards that are on the books,” he states. “And as long as we stay the course, by 2030 that number will grow to over $300 million per day. "
A recent report found that in the last midterm review, the costs of achieving the standards were overestimated by as much as 40 percent.
The Sierra Club, the American Lung Association and the Environmental Defense Fund are among the groups opposing rollbacks. To date, more than 300,000 comments in favor of keeping the standards have been received by the EPA.
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Kentucky House lawmakers are considering a bill that could make it harder to close aging coal-fired power plants.
At the Kentucky Resources Council, Program Attorney Bryon Gary said the bill is part of the larger legislative effort to tip the state's energy planning process in favor of the coal industry.
He explained Senate Bill 349 would create a new "energy planning and inventory" commission tasked with reviewing utilities' plans to retire their aging plants.
"To artificially limit what resources a utility can build," said Gary, "and to artificially require them to keep running power plants that are well beyond their useful life and incredibly expensive to run, is just going to make the problem worse."
The bill's sponsor, state Sen. Robby Mills, R-Henderson, and supporters say the change is needed to ensure the state has a reliable power supply.
Kentucky has several aging coal-fired power plants from the 1970s and 1980s that are no longer economically competitive and are set to be decommissioned within several years.
President of LG&E and KU Energy John Crockett said creating the new commission isn't in customers' best interest.
"It's a group that's almost entirely without expertise in generating or distributing electricity," said Crockett. "And it's designed to promote and perpetuate coal generation outside of a traditional 'least cost reasonable' analysis that has served Kentucky well for decades."
Gary added the bill also would impose a six-month deadline for the state's utility regulator to make decisions for certain types of cases.
He said this could silence voices from low-income communities and other groups affected by rate hikes.
"And would weaken the due process protections for all parties involved," said Gary, "by shortening the timeline for things that are essential to make sure that cases are fully heard and vetted, such as discovery and a hearing and briefing of all the parties."
The Kentucky Energy and Environment Cabinet and the Public Service Commission warn the bill doesn't allocate funds to cover costs related to the new commission.
They're also concerned about the bill's time limit for fuel adjustment clause proceedings, which help return millions of dollars in utility bill refunds to Kentucky customers.
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New York's state lawmakers are considering a measure that would shake up the way Long Island's power grid operates.
The Long Island Power Authority Public Power Act would make LIPA the sole operator of the grid, ending the long-standing public-private model. Residents feel this model has made communication between ratepayers and their power company inefficient.
Ryan Madden, climate and energy campaigns director for the Long Island Progressive Coalition, said the status quo creates something akin to "a game of unnecessary telephone."
"For example, an issue is raised, and it's brought either from the LIPA board or LIPA staff brings it to the LIPA board," Madden explained. "It then has to be passed along to PSE&G. PSE&G takes weeks, months in order to come back. Then they have to bring in the Department of Public Service of Long Island."
In 2023, numerous groups from Long Island and the Rockaways called for an end to this model, and customers have expressed concerns over how Long Island power responds to bad weather. After Superstorm Sandy, PSE&G replaced National Grid as the third-party manager because people felt the company mishandled power restoration to the area.
Residents have a similar feeling for how PSE&G dealt with the aftermath of Tropical Storm Isaias.
The bill is under review by the Assembly's Corporations, Authorities and Commissions Committee.
Supporters have contended that replacing the public-private model would put more money back in ratepayers' pockets. A 2023 study found that a fully public Long Island grid could save ratepayers around $500 million over the next decade.
Madden said terminating PSE&G's contract would create some of the initial savings.
"There's been some ranges depending on conservative estimates," he noted. "Anywhere from $60 million to $80 million saved in the functioning of the utility, right? So we're getting rid of $80 million in management fees for PSE&G."
Madden said LIPA could use some of the savings to make improvements in the grid, expand programs and increase stakeholder input. He also said he thinks this will help make the grid more climate-efficient in a way that doesn't further disadvantage certain communities.
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Minnesota already has a law calling for 100% carbon-free electricity by 2040. Now, there's a similar plan for transportation, and a legislative committee will consider the idea today.
The clean transportation standard has a target year of 2050 for phasing out carbon-intensive fuel sources for cars and trucks.
Producers slow to adapt would have to buy credits, while companies distributing cleaner products would receive incentives.
Transportation accounts for about a quarter of Minnesota's greenhouse gas emissions, and Fresh Energy's Senior Lead for Innovation and Impact Margaret Cherne-Hendrick said this approach could help reduce that total.
She pointed to newer types of biofuels, beyond standards like ethanol.
"For example, winter oil seeds are better for the environment," said Cherne-Hendrick. "They require much less fertilizer. "
University of Minnesota researchers note these seeds could benefit parts of the transportation sector that face challenges in going electric, such as heavy-duty trucks.
Under the bill, fuel sources would be graded on their carbon intensity - to determine where they rate with the standard.
Skeptics, including some environmental researchers, say the plan could have unintended consequences in reducing emissions.
State Senate Transportation Committee Chair Scott Dibble - DFL-Minneapolis - said while there's a strong push for electric vehicle adoption, many people right now still have to buy cars powered by traditional fuel sources.
"The market penetration is still very small for EVs," said Dibble, "and they're going to own and operate that liquid fuel-based car for the coming 20 plus years."
As the EV market takes shape, he said it makes sense to fill these other cars with the cleanest fuels possible.
There's still a lot to sort out in establishing the standard, and Dibble acknowledged it might have to start as a goal, given the current state of fuel technology.
His bill calls for a one-time appropriation of $900,000 for implementation, but Dibble insisted the incentives market would largely support itself in the long-term.
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