U.S. CHAMBER OF COMMERCE

Faulty Claims Stack the Deck Against ACE

By Stephen D. Eule and Dan Byers

 Mark Twain reportedly observed in 1919 that "A falsehood can travel around the world and back again while the truth is lacing up its boots." When it comes to the debate surrounding Environmental Protection Agency (EPA) recent rules, Twain’s quip still rings true.

 Take, for example, EPA’s Affordable Clean Energy (ACE) proposed rule on power sector carbon dioxide emissions slated to replace the Obama Administration’s Clean Power Plan (CPP). Issued in 2015, the CPP final rule raised a host of legal concerns, including that it swept away decades of agency precedent and dramatically stretched the EPA’s authority under the Clean Air Act beyond recognition. The Supreme Court also weighed in and, in an unprecedented move, suspended the CPP more than two and a half years ago, a clear sign of its legal vulnerability. We have long supported EPA’s efforts to produce a new proposal that addresses emissions without exceeding the statutory limits of the Clean Air Act. ACE does this and is superior to CPP in many ways, as we have detailed elsewhere.

Seriously flawed claims about this replacement plan, however, have taken on a life of their own, making it difficult to distinguish fact from fiction. In fact, faulty claims about ACE have appeared in the pages of multiple major publications and been repeated by elected officials and advocacy groups.

Let’s start with the assertions made about ACE in the Washington Post last August. It reported the plan, “. . . is projected to release at least 12 times the amount of carbon dioxide into the atmosphere compared with the Obama rule over the next decade . . . By 2030, according to administration officials, the proposal would cut CO2 emissions from 2005 levels by between 0.7 percent and 1.5 percent, compared with a business-as-usual approach [emphasis added].” There was no attribution for either statement.

In late November, the New York Times weighed in with a similar story. It said, “. . . the Trump administration’s replacement unveiled in August, known as the Affordable Clean Energy rule, sets no national benchmark. It aims to cut carbon dioxide emissions from 2005 levels by 0.7 to 1.5 percent by 2030. According to estimates by [unnamed] environmental groups, that means the amount of carbon dioxide emitted from American power plants over the next decade could be up to 12 times higher than it would have been under the Obama-era plan [i.e., CPP].”

These claims have proliferated farther and wider than Twain could have imagined. The “12-times” allegation especially has been picked up and uncritically repeated as fact in Fortune, CNBC, Yahoo News, Slate, Clean Technica, Yale University, in material from advocacy groups (such as here, here, here, and here), at EPA’s public hearing on the ACE proposal, and even in a letter from 23 U.S. Senators. Some of these sources cite the August Post story, while others link to an (original) August 21st story in Britain’s Guardian (which removed the “12 times higher” statement in an updated story). Not surprisingly, the claims also have generated a lot of buzz on Twitter.

As dire as these reported claims sound, there’s nothing to substantiate them.

Let’s start with the claim that under ACE, carbon dioxide emissions would fall 0.7% to 1.5% “from 2005 levels” by 2030. Carbon dioxide emissions from the power sector in 2005 were 2,416 million metric tons (MMT). The EPA’s Regulatory Impact Assessment (RIA) for the proposed rule examines three different scenarios, and these indicate that with ACE in place, power sector emissions reach between 1,619 MMTCO2 and 1,631 MMTCO2 in 2030. These figures translate into 32% to 33% below the 2005 level, far more than the alleged 0.7% to 1.5%. In fact, for this allegation to be true, the expectation would be that power sector emissions under ACE would rise about 37% from 2017 to 2030. What EPA actually said was that ACE would lower emissions between 0.7% to 1.5% below the projected baseline trend out to 2030, something entirely different.

The second claim, of unknown provenance, is that total power plant emissions over the next decade could be 12 times higher under ACE than under CPP. Again, the facts don’t substantiate this.

In percentage terms, 12 times higher equates to 1,100% higher. So to accept this claim, one would have to believe that power plant emissions with the ACE rule in place would be 1,100% higher than they would be with the CPP rule in place—not remotely credible. EPA’s analysis suggests the difference is more like 2%.

Here’s what a “12 times higher” scenario might look like. EPA’s proposed rule includes emissions projections for ACE for 2021, 2023, 2025, and 2030. Using these figures, we estimate total emissions of about 16.2 gigatons of total emissions for each of the three ACE scenarios for the decade from 2021 to 2030. That averages out to 1,620 MMTCO2 a year, about 33% percent below the 2005 level.

To achieve 12 times less than that 16.2 gigatons, emissions would need to be limited to 1.4 gigatons, an average of 135 MMTCO2  per year or about 94% below the 2005 level over the 10-year period. That’s not a decline to 94% below 2005’s level by 2030, but an average of 94% below over the decade. (See the chart nearby.) We’re not aware of anyone suggesting CPP would result in emission cuts of consistently greater than 90%. For the record, EPA’s modeling has emissions under CPP averaging 34% below 2005’s level from 2021 to 2030.

 No matter how you approach the question, the idea that power sector emissions under ACE will be 12 times higher than they would be under CPP is—and we’re being generous here—ridiculous.

Sadly, this episode is not unusual, so we’ll continue to keep our boots laced up to ensure that the facts remain in the race.

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