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1 Algirdas Leskys, P.E., J.D. Comments/Testimony on Senate

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1 Algirdas Leskys, P.E., J.D. Comments/Testimony on Senate Algirdas Leskys, P.E., J.D. Comments/Testimony on Senate Bill 254 Assembly Committee on Growth and Infrastructure May 20, 2019 Dear Committee Members:1 As a former employee of the Clark County Department of Air Quality I worked on various tasks that included greenhouse gas (GHG) emissions inventory development and evaluating the potential impacts of federal GHG regulation on Clark County. Given that experience, I thought it would be useful to provide some insights on the following topics concerning Senate Bill 254 (SB254): (i) U.S. Climate Alliance membership requirements, (ii) Question of global warming causation, and (iii) Whether President Trump was justified in rejecting the Paris Agreement. I. Membership Requirements for the U.S. Climate Alliance The same day that SB254 was first heard before the Committees on Growth and Infrastructure, Governor Sisolak announced plans to join the U.S. Climate Alliance. In retrospect, it appears likely that the timing of the events was coordinated since passage oF SB254 would effectively put into statute the membership requirements found on the U.S. Climate Alliance website. 2 Back in 2017, Democrat Governors Jerry Brown (California), Andrew Cuomo of New York, and Jay Inslee oF Washington formed the U.S. Climate Alliance.3 It was a response to President Trump’s announced intent to withdraw the United States from the Paris Agreement. Currently, the U.S. Climate Alliance consists of 19 states governed by Democrats, and three states governed by Republicans (i.e., Massachusetts, Vermont, and Maryland).4 The requirements for membership are threefold: 1 These comments/testimony are an addendum to those previously submitted on March 12, 2019, at the joint meeting of the Senate and Assembly Committees on Growth and Infrastructure. 2 U.S. Climate Alliance, https://www.usclimatealliance.org (accessed March 16, 2019). 3 Benjamin Wallace-Wells, The New Yorker, Jay Inslee wants to be a presidential candidate for the climate-change era (February 28, 2019). 4 The 19 states with Democrat Governors are: California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Virginia, Washington, and Wisconsin. Note that for the three states governed by Republicans: Massachusetts Democrats control 9 out of 9 seats in the House of Representatives; 1 out of 1 seats in Vermont; and 7 out of 8 seats in Maryland. In the U.S. Senate, there is no Republican representation in any oF these three states. 1 First membership requirement: “Implement policies that advance the goals of the Paris Agreement, aiming to reduce greenhouse gas (GHG) emissions by at least 26- 28 percent below 2005 levels by 2025.” 5 Section 2.2(b)(1) of SB254, generally duplicates the first membership requirement. However, Sections 2.2(b)(2) and (c) of SB254, go above and beyond the baseline membership requirement. The latter bill provisions would additionally assess policies that lead to 45 percent GHG emissions reductions by 2030, and 100 percent (or near 100 percent) GHG emissions reductions by 2050. Currently, statewide GHG emissions inventory reports focus solely on emissions generated within Nevada. A more detailed liFe-cycle emission inventory—that additionally focuses on responsibility—would demonstrate the complex nature of the emission inventory assessment process. The State of Nevada Department of Conservation and Natural Resources (DCNR) addressed the complexity in this manner: “For the purpose of this inventory, emissions that were caused by activities that occurred within the geographical boundaries of the State of Nevada were reported. However, it is important to recognize that GHG emissions are not always spatially associated with the related activities. For instance, production (the source of emissions) and consumption of electrical power (the related activity) can take place at very different locations, sometimes in different states. This distinction is particularly critical in evaluating the impact of potential demand mitigation strategies. For example, reuse, recycling, and source reduction can lead to emission reduction from lower energy requirements in material production (e.g., paper, cardboard, and aluminum) even though the emissions associated with material production may not occur within that particular state.” (emphasis added)6 An example of when “GHG emissions are not always spatially associated with the related activities” is when NV Energy purchases electricity from the grid. Such purchases include a mix of sources located throughout the Western United States (see Table 1).7 For the 12- month period ending September 30, 2018, NV Energy purchased approximately 43 percent from the grid to supply its Northern Nevada customers and 20 percent to supply its Southern Nevada customers.8 Table 1: Electricity from Generating Facilities in the Western United States— Consumed by NV Energy Customers Northern Nevada Southern Nevada 5 U.S. Climate Alliance, https://www.usclimatealliance.org (accessed March 16, 2019). 6 State Department of Conservation and Natural Resources, Nevada Statewide Greenhouse Gas Emissions Inventory and Projections, 1990-2030, p. 3 (2016). 7 NV Energy, January 2019 Power Content Label, https://www.nvenergy.com/help/bill- inserts (accessed April 2, 2019). 8 Id. 2 E-2 Energy Source (Percent of Total) (Percent of Total) BioFuel 0.23% 0.24% Biomass 0.37% 0.04% Coal 16.29% 6.12% Geothermal 7.69% 6.56% Hydroelectric 7.57% 2.37% Natural Gas 57.61% 77.35% Nuclear 2.28% 0.23% Oil 0.01% 0.00% Other 0.14% 0.01% Solar 5.69% 5.52% Wind 2.12% 1.56% Total 100.00% 100.00% When a state generates electricity from a coal power plant and sells it to another state, which state is responsible for the GHG emissions? Local and state GHG emission inventories are far more likely to confront this question than inventories that encompass larger geographic boundaries. Therefore national or regional GHG emission inventories provide more useful information to policymakers that desire to mitigate GHG emissions. Second membership requirement: “Tracking and reporting progress to the global community in appropriate settings, including when the world convenes to take stock of the Paris Agreement.” 9 This membership requirement sets forth two elements: (i) tracking, and (ii) reporting. Tracking: The U.S. Climate Alliance does not specify how frequently GHG emissions need to be inventoried. An existing statute (NRS 445B.380) currently requires the DCNR to issue a statewide inventory at least every 4 years. The most recent report (2016) included projected year emissions for years 2014-2030. Therefore the tracking portion of the second membership requirement can be met without any additional legislation. Reporting: The requirement to report progress to the global community is not addressed in SB254. Yet there is a possibility of significant costs associated with this membership requirement. Since there is a fiscal component to this requirement, Nevada legislators should be transparent about the: (i) frequency of reporting, (ii) name(s) of the organizations that constitute the “global community,” (iii) staffing, and (iv) air travel. 10 Third membership requirement: “Accelerate new and existing policies to reduce carbon pollution and promote clean energy deployment at the state and federal level.” 11 9 U.S. Climate Alliance, https://www.usclimatealliance.org (accessed March 16, 2019). 10 Note that there are considerable GHG emissions associated with air travel. 11 U.S. Climate Alliance, https://www.usclimatealliance.org (accessed March 16, 2019). 3 E-3 The third membership requirement is an invitation to introduce fiscally coercive regulations and/or policies that would artificially incentivize changes in the composition of energy sources producing electricity in Nevada. A harbinger of the expense can be found in the per capita electricity costs among the 21 other member states of the U.S. Climate Alliance (see Table 2). They are 35 percent higher than non-alliance states costs.12 Table 2: Average per capita electricity costs Average per capita electricity cost No. of States (cents/kW-hr) U.S. Climate Alliance States * 21 16.27 Non-Alliance States 28 12.04 Nevada 1 11.67 * excluding Nevada Interestingly, the U.S. Climate Alliance website does not expressly state that a condition of membership is to place into state statute the membership requirements of the alliance. Instead, the organization’s website simply requires that “states commit” to the membership requirements. In other words, a Governor’s stated policy commitments would suffice. This is clearly the case since the U.S. Climate Alliance website has already announced Nevada as its newest member.13 Currently there is both public and privately funded research on low-carbon baseline power.14 Technological breakthroughs will make it economically sensible to substantially reduce GHG emission sources from the electricity production and transportation sectors. 15 When that happens, GHG emission reductions will occur with or without SB254. Attempts to force changes through state government policies will likely be very expensive and create undue hardship on the citizens oF Nevada.16 Implementing regulations and/or 12 Estimates are based on 2018 population data and current electricity rates provided by “Electric Choice” (Electricity Rates by State - updated March 2019, www.electricchoice.com (accessed March 17, 2019). 13 (U.S. Climate Alliance, Nevada Governor Steve Sisolak Joins U.S. Climate
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