Overnight Energy & Environment

Energy & Environment — Climate bill could prevent up to $2T in damage

by Rachel Frazin and Zack Budryk 08/23/22 06:46 PM ET

The White House is projecting serious cost-savings from averted climate damage thanks to the Inflation Reduction Act. Meanwhile, green groups are seeking a ban on new gas heating in homes and buildings.

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IRA could avert $1.9T in climate damage: analysis

The Inflation Reduction Act, the tax and climate bill President Biden signed into law last week, could reduce the costs from climate-related damages by up to $1.9 trillion, according to an analysis by the Office of Management and Budget (OMB).

The analysis published Tuesday is based on three models crafted by Rhodium Group, Energy Innovation and Princeton University. They found the law’s climate provisions could potentially cut up to 1 billion annual metric tons of carbon dioxide by the end of the decade, nearly meeting the White House target of cutting emissions in half relative to 2005 by 2030.

To model the reductions beyond 2030, the analysis uses the “social cost of carbon” metric, or the financial damages associated with a projected future level of carbon pollution. The analysis notes that the model assumes yearly reductions through 2030 will continue at a comparable pace through the next two decades, which is likely a conservative estimate.

Meeting these projections could reduce financial damages from climate impacts by between $700 billion and $1.9 trillion up to 2050, the OMB models found. In addition to reduced property damage from climate disaster, the savings would also come in the form of fewer negative health impacts and fewer energy costs associated with hotter temperatures.

In the nearer term, the models project the law could save between $34 billion and $84 billion a year by 2030.

Advocates ask Biden to ban new natural gas heating

Environmental advocates are asking the Biden administration for a federal ban on new natural gas-powered heating appliances in homes and commercial buildings.

In a petition submitted to the Environmental Protection Agency (EPA) on Tuesday,
26 health, environmental and consumer protection organizations asked the agency for the ban.

Environmental and health advocates have fought to bar natural gas appliances in homes and buildings at the city and state levels, citing health and climate impacts.

In their new petition, the 26 groups largely focused on health impacts. They specifically asked the EPA to prohibit new heating systems that emit nitrogen oxides, which have been linked to negative respiratory outcomes and are also a precursor to smog, which can worsen lung conditions like asthma.

While natural gas is more widely used, the groups are also seeking to prevent new oil-powered heating.

In the U.S., 47 percent of households use natural gas as their main heating fuel. Under the proposal, these households would not be required to make immediate changes.
But newly manufactured appliances wouldn’t be allowed to emit nitrogen oxides, effectively preventing the new manufacturing of fossil fuel-powered heating appliances.

Amneh Minkara, the Sierra Club’s Building Electrification Campaign deputy director, said the groups’ request fills a hole, addressing previously unregulated emissions.

“Regulations for other major sources like the industrial sector, the energy sector, the transportation sector, they’ve all been regulated by the EPA thus far, but a massive source of these emissions from the building sector have not,” Minkara said.

The natural gas industry argued against the petition.

“This proposal would impose undue burdens on consumers at every step of the process, including our most vulnerable communities,” said a statement released by the American Gas Association.