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How Climate Change Affects Internal US Business and Policy
Executive Summary
Climate change is becoming a rising global threat and US businesses are likely to suffer economic losses.
To lower the consequences, US businesses are setting internal policies that will highly likely lower greenhouse gas emissions.
Executive Summary
- The repealing of the Clean Power Plan is highly likely not enough to save the coal industry
- Repealing Sue and Settle laws
- Federal court ruling in favor of climate change will reduce the number of leases to companies to mine coal within the next five years
Key Findings
- California Air Resources Board highly likely to set auto emissions policy for the US
- It is highly likely that US automakers will set an all-electric vehicle plan within the next five years
- Gas prices are highly likely to drop in the upcoming years
Key Findings
- The cost of electric cars is likely to drop in the upcoming years
- It is highly likely that US businesses and state/local government plan to lower greenhouse gas emissions at the Bonn Climate Change Conference
Key Findings
Repealing the Clean Power Plan
Clean Power Plan
- The repealing of the Clean Power Plan is highly likely to cause immediate harm to the environment
- With this repeal, it is highly likely to not to stimulate the coal economy
October 10th 2017 announcement
Oct 10th 2017
EPA administrator Scott Pruitt announced that the war on coal is over.
Pruitt issue a proposed rule to repeal the Clean Power Plan.
"The Clean Power Plan was an overarching policy from the Obama administration that favored alternative resources."
- Scott Pruitt
The Clean Power Plan
- The plan to curb emissions by 32% by 2030 for coal fired plants
- To promote cleaner and more efficient power plants while expanding natural gas and alternative power sources
Clean power Plan
Effects of repeal on the environment
Effects of Repeal
- Acid rain
- Fly Ash
- Particulates
- Low Air Quality
Clean Coal
- Clean is mostly found in the Powder River basin
- It has low sulfur content
- Low ash content
- Abundant
- Cheap
Clean Coal
Natural Gas better alternative
Natural Gas
- Does not require scrubber to remove pollutants
- 1/3 of workers needed
- Massive deposists recently found
- Cheaper operations costs
- Conversion to natural gas is more cost effective than modernization
Reducing The Number of Mining Leases
Mining Court Decisions
- The Poweder River Basin is home to half of the countries coal production
- US policymakers who favor climate change highly likely to reduce the number of leases to companies mining coal within the next five years
- Court rulings in favor of climate change will likely see government officials and companies placing new policies to reduce emissions
Company Challenges
- Court decisions could challenge any company whose mining projects do not account for climate change
- It is likely that the frequency of leases approved will reduce within the next five years
Challenges
Bureau of Land Management
- The activist groups of WildEarth Guardians and Sierra Club protested the BLM's lease to mine the Powder River Basin
- BLM's Application was denied by US Court of Appeals due to calculations made by the company who did not take into consideration the effects of greenhouse gas emissions
- This court decision is likely to see more lease cases ruled in favor of climate change
Coal Industry Backlash
- The resurgence of the coal industry is highly likely to see backlash from the federal government and activist groups alike
- The recent victory on the war on coal, won by activist groups is likely a major starting point in the ongoing efforts to fight companies that affect climate change
Coal Mining
Sue And Settle Dissolution
Sue And Settle
- Scott Pruitt announcement on October 14th
- There are two types of settlements
- Sue and settle laws benefited interest groups
October 14 2017
- Scott Pruitt ends Sue And Settle through an agency directive
- "The days of regulation through litigation are over"
-Scott Pruitt
October 14
What is Sue And Settle?
- Sue And Settle was the idea that private interest groups could fight the EPA in court on overlooked environmental issues.
What is it?
Two Types Of Settlements
- Decision Forcing- Forces the government to make a decision. Any decision when action is overdue.
- Substantiate- Compels the government to make a decision on a current event.
Types of settlements
Dissolution
What Does Dissolution Do?
- Makes it harder for private interests groups to get attention from the EPA
- Allows corporations carte blanche at business practices
Auto Emissions Policy Infographic
Auto Emissions Policy
All-Electric Vehicles Plan
- It is highly likely that US automakers will set an all-electric vehicle plan within the next five years
- Major oil and gas companies affected by company’s transferal of energy to electric, will likely adapt to demand of new trends
All-Electric Vehicles Plan
Announcement
The Announcement
- Ford Motor Co and General Motors (GM) have announced a plan for an all-electric vehicle lineup within the next six years
- This move by two industry leaders will highly likely influence other automakers’ to follow plans to lower greenhouse gas emissions
Greenhouse Gas Emissions
Greenhouse Gas Emissions
- China, India, France and the United Kingdom have announced plans to phase out vehicles powered by fossil fuels
- The California Air Resources Board (CARB), is considering a ban on gasoline fueled vehicles
- It is likely that US policymakers will develop plans towards a national ban on internal combustion engines
Following Leaders
Following The Leaders
- The shift in energy policies has automakers making all-electric plans to cut greenhouse gas emissions caused by the burning of fossil fuels
- Toyota-Mazda, Daimler, Jaguar-Land Rover, Groupe Renault, Volvo, Volkswagen Group, BMW Group, all have made all-electric plans within the next five years
Big Oil And Gas Companies
Big Oil and Gas
- It is likely that big oil and gas companies will adapt to the threat of automakers transition into clean energy
- Royal Dutch Shell plan to precure NewMotion, one of Europes largest electric vehicle charging providers
- British Petroleum plan on making charging stations across the globe
- French Company Total is working with Tesla on transitioning the country to electric vehicles
Projected Production Of Electric Cars Highly Likely To Result In The Drop Of Gas Prices
Gas Prices
- Gas prices are highly likely to drop in future
- Electric car production is a growing industry
- The cost of electric cars is likely to drop in future
- Big companies are investing in electric cars
Gas price drop
Gas price expected to start dropping after the next few years
- There is a 20% expected drop in 10 years
- Consumption is expected to drop
Electric cars production
Electric car production is a growing industry
- 500% increase in production since 2012
- More than 30 million Americans plan on buying an electric car
- Price is expected to drop from 40.000 to 22.000 by 2020
Companies involved in electric vehicles
Companies involved with electric vehicles
- Tesla
- Nvidia
- Ford
- Panasonic
Bonn Climate Change Conference
Bonn Climate Change Conference
- US leadership likely to offer plan to lower greenhouse gas emissions
- US representation at the conference likely to be of opposing positions
- Highly likely that other states and business will follow these policies
The Conference
Climate Change Conference 2017
- President Trump openly rejected global warming diplomacy by pulling out of the Paris Climate Agreement
- Businesses and local governments are developing their own policies for greenhouse gas emissions
- California Governor Jerry Brown is opposing Trumps view and is leading other states and businesses to adopt their own polices on climate change
Brown's Policies
Brown and Bloomberg's Policies
- Brown and former NYC Mayor Michael Bloomberg are being assisted in their efforts by the US Climate Action Center
- Brown, with support of the California Air Resources Board is implementing nationwide policies for emissions despite government opposition
- It is highly likely that the White House will encourage US to promote the efficient use of coal, nuclear energy and natural gas
Presenting Policy Change To The World
World Stage
- It is likely that governor Brown and supporters will show their results of lowering greenhouse gas emissions on the world stage
- This will likely set the standard for other countries to develop similar policies to combat climate change
Conclusion
Conclusion
- Clean Power Plan
- Mining Court Decisions
- Sue And Settle
- Auto-Emissions Policy
- All-Electric Vehicles Plan
- Gas Prices
- Bonn Climate Conference
Analytic Confidence
Confidence and Contact
Analytic Confidence: Medium
Overall Source Reliability: High
Minor conflicts among sources
Analysts Expertise: Moderate
Analysts Worked In A Team Of Four
Subject Complexity: High
Time Available: Adequate
Contact Info
Contact Information
Name: Gregory Durr II
Email:
Telephone Number:
Name: Aleksa Timilic
Email: atimil13@lakers.mercyhurst.edu
Telephone Number: +381601575947
Name: Anthony Dramisino
Email: adrami76@lakers.mercyhurst.edu
Telephone Number: 8152808025
Name: Theophilus Blackston
Email: tblack91@lakers.mercyhurst.edu
Telephone Number: 3042816907
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