Addendum 1 to the Illinois Greenhouse Gas Emissions Inventory and Projections Overview Report: Detailed Greenhouse Gas Emissions Illinois Sectors Prepared for the Illinois Climate Change Advisory Group March 28, 2007 World Resources Institute Overview At the request of the members of the Illinois Climate Change Advisory Group (CCAG), the World Resources Institute (WRI) assembled this addendum to the Illinois greenhouse gas (GHG) emissions inventory, which presents more detailed analysis of sectoral GHG emissions data for Illinois. The information contained in this addendum is divided into sections based on major economic sectors as defined by WRI’s Climate Analysis Indicators Tool (CAIT-US). These sections are: Electricity Generation, Industry, Transportation and Land-use, Land-use Change and Forestry (LULUCF). Data are derived from several sources, including the Energy Information Administration (EIA), Illinois state agencies, and. CAIT-US. For a complete description of the CAIT tool, its data sources, and relevant caveats and data uncertainties, please see Appendix A of the “Illinois Greenhouse Gas Emissions Inventory and Projections” report. Electricity Generation Net electricity exports (figure 1) are calculated as the difference between Illinois’ electricity generation total and its total electricity sales, using data from the EIA. According to recent estimates, Illinois ranks among the top ten states in total exports of electricity, exporting nearly 50 million MWH in 2005. Illinois electricity exports have steadily increased, more than doubling since 1990, with the exception of a clear decrease in 1997-1998. During this time, a portion of Illinois’ nuclear generation capacity was temporarily off-line; this reduced total state electricity generation (see figure 2) as well as net electricity exports but not GHG emissions since some of the lost , zero-emitting nuclear generation was made up by increased coal generation. 1 Illinois Electricity Exports 1990-2005 Thousand MWH 60,000 50,000 40,000 Illinois Electricity Exports 1990-2005 30,000 20,000 10,000 19 90 19 92 19 94 19 96 19 98 20 00 20 02 20 04 0 Figure 1. Source: Energy Information Administration, Electric Power Annual 2005 http://www.eia.doe.gov/cneaf/electricity/epa/epa_sprdshts.html; WRI calculations Illinois Electric Generation by Fuel 1990-2005 200,000 180,000 Other 160,000 Hydroelectric Conventional Thousand MWH 140,000 Other Renewables 120,000 Other Gases 100,000 Petroleum 80,000 Natural Gas 60,000 Coal 40,000 Nuclear 20,000 0 1990 1995 2000 2005 Figure 2. Source: EIA Electric Power Annual 2005 (http://www.eia.doe.gov/cneaf/electricity/epa/epa_sprdshts.html) Figure 2 highlights the principal fuel sources for electricity generation in Illinois. The overwhelming majority of electricity is produced from coal and nuclear energy sources, which, in 2005, accounted for 47.5 percent and 48.0 percent of total generation, respectively. Absolute generation from both sources has grown substantially since 1990. More specifically, generation from nuclear power increased by approximately 30 percent between 1990 and 2005, while electricity generation from coal increased by 68 percent over the same time period. Other fuel sources, including natural gas and renewables, which constitute much smaller shares of total electricity generation, show trends since 1990 that have been much more variable. 2 Since 1990, coal’s share of total generation has been gradually increasing, while the share derived from nuclear has decreased (figure 3). Noticeably, the share of natural gas for electricity generation has grown only slightly since 1990, despite the rapid expansion of natural gas capacity in the late 1990s (figure 4). The fact that this capacity growth has not been mirrored by a similar rise in electric generation from this source (figure 2), indicates that Illinois’ increase in electricity generation from coal has largely spurred overall growth in GHG emissions in this sector (see below). This is significant considering no new coal capacity was installed over this fifteen year time span (see figure 4), instead, existing coal plants increased their generation of electricity and in turn emissions. The share of renewable energy such as wind and solar power (represented as “other renewables” in figures) accounted for less than one percent of total generation in this time period. In 2003, greenhouse gas (GHG) emissions from coal accounted for 83 million metric tons, or 97 percent, of the total emissions attributable to the electricity generation sector in Illinois with natural gas accounting for the majority of the remaining 3 percent followed by oil (CAIT, WRI). The proportion of coal-based emissions to total emissions has been fairly constant since 1990. However, between 1990 and 2003, total emissions from electricity generation grew nearly 53 percent—approximately twice the value of the percentage increase in emissions of this sector at the national level—with roughly equivalent increases in coal-produced emissions. This increase occurred primarily due to increased generation from existing coal fired power plants. Like many states in the 1990s, Illinois experienced a rapid expansion in natural gas fired electric generation capacity. While the installed capacity of nearly all other types of power plants held steady or declined between 1990 and 2005 (such as the case of oil fired power plants) Illinois’ installed natural gas capacity increased by over 760 percent (see figure 4). This capacity has primarily been used to serve peak load demand rather than base load power, running only when demand is at its highest. This is due to the relatively high cost of natural gas compared to coal and the fact most modern natural gas power plants can be ramped up or down much more easily than coal or nuclear plants to serve demand. The paradoxical result of the rush to gas since 1990 is that natural gas power plants account for 35 percent of total installed capacity but less than 4 percent of total generation and only 2 percent of GHG emissions from this sector. According to EIA, an additional 4,524 MW of installed electric generation capacity is planned for operation by 2010 (see figure 4). Coal power plants account for 3839 MW of this new capacity. Meanwhile, no new nuclear, oil fired power plants and approximately 400 MW of natural gas plants are planned before 2010. A small but significant amount (275 MW) of wind power should be on line and operational within this time period. In-state and regional electricity demand and electricity market dynamics in the coming years notwithstanding, new coal plants are likely to drive further increases in GHG emissions in this sector in the near future. 3 Illinois Electricity Generation by Fuel 1990-2005, percent of total 100% 90% Other 80% Hydroelectric Conventional 70% Other Renewables 60% Other Gases 50% Petroleum 40% Natural Gas 30% Coal 20% Nuclear 10% 0% 1990 1995 2000 2005 Figure 3. Source: EIA Electric Power Annual 2005 (http://www.eia.doe.gov/cneaf/electricity/epa/epa_sprdshts.html) Illinois Existing Nameplate Capacity and Planned Capacity Additions by Fuel 1990-2010 Installed Planned 60 Other 50 Other Renewables Hydroelectric Thousand MW 40 Other Gases 30 Natural Gas Petroleum 20 Nuclear 10 Coal 0 1990 1995 2000 2005 2010 Figure 4. Source: EIA Electric Power Annual 2005 (http://www.eia.doe.gov/cneaf/electricity/epa/epa_sprdshts.html) 4 Industry The industrial sector in Illinois produced approximately 38 MtCO2eq in 2003, representing about 14 percent of the state’s total GHG emissions. In 2003, emissions from coal, petroleum, and natural gas sources accounted for 25, 39, and 36 percent of total emissions, respectively (CAIT, WRI). In general, the proportional composition of industrial emissions remained relatively constant between 1990 and 2003, with only slight decreases observed in the percentage contribution from coal and minor increases seen in the percent emissions from natural gas (in both instances, these changes are on the order of 3-6 percent). Of note, however, is that Illinois has experienced a nearly 15 percent reduction in emissions within this sector since 1990, a change significantly greater in magnitude than the comparable national value of -1.6 percent. Figure 5 compares total industrial GHG emissions (broken down by fuel) to total energy consumption in the industrial sector between 1990 and 2003. This analysis reveals that, generally, industrial energy consumption and emissions follow similar trends, as one might expect, rising until around 1997 and gradually declining in recent years. Difficulties arise, however, when trying to interpret the driving forces of the observed trends. Recent reductions in emissions, are partially the result of fuel switching away from coal towards less carbon intensive natural gas. The reduction in overall energy consumption is also a factor. This decline in energy use and emissions could be due to increasing energy efficiency, the result of declining activity overall within this sector, or a combination of both. Illinois Industry Energy Consumption and CO2 Emissions 1990-2003 1600 Emissions (Million Tonnes CO2) 1400 50 1200 40 1000 30 800 600 20 400 10 200 Energy Consumption (Trillion BTUs) 60 Natural Gas Petroleum Coal Energy Consumption 0 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Figure 5. Sources: Energy Consumption--EIA (http://www.eia.doe.gov/emeu/states/sep_use/ind/use_ind_il.html) and Emissions--CAIT (http://cait.wri.org) 5 Transportation The information presented below regarding the transportation sector in Illinois comes from the U.S. Department of Transportation’s Federal Highway Administration (FHWA; fuel use) and the U.S. Department of Energy’s EIA (emissions). These data were compiled and analyzed by members of the Illinois EPA. The following figure 6 is reproduced from FHWA’s "Highway Statistics 2005" publication Table MF-21, Motor Fuel Use (http://www.fhwa.dot.gov/policy/ohim/hs05/xls/mf21.xls). The figure below reports Illinois motor fuel use for 2005 in thousands of gallons. Highway use and nonhighway use categories combine gasoline and gasohol. Illinois Motor Fuel Use, 2005 (thousands of gallons) SUMMARY OF TOTAL USE Highway Non-Highway percent Non-Highway fuel use Total Motor change from Grand last year (gasoline only) Fuel Use Total -0.21 158,305 6,713,901 6,555,596 (Gasoline and gasohol) HIGHWAY USE Private Use Public Use Private & Civilian State, County Public Use Commercial Federal & Municipal Total 4,960,365 6,429 86,451 92,880 Highway Use Total 5,053,245 Special Fuels diesel & alternative Private & Commercial Special Fuel On-Hwy Use 1,502,351 NONHIGHWAY USE Private Use Public Use Private & State, County Non-Highway Commercial & Municipal Use Total 153,798 4,507 158,305 Figure 6. Source: FHWA (http://www.fhwa.dot.gov/policy/ohim/hs05/xls/mf21.xls). Notes from FHWA: “This table is one of a series giving an analysis of motor-fuel consumption, based on reports from State motor-fuel tax agencies. Gasohol is included with gasoline. In order to make the data uniform and complete, public use and nonhighway use were estimated by the Federal Highway Administration. These estimates may not be comparable to data for prior years due to revised estimation procedures. The resulting volumes differ in many cases from the unadjusted data reported in table MF-2. For some States, data are not comparable to prior years due to changes in data analysis and/or improvements in reporting procedures. All data are subject to review and revision.” In summary, according to 2005 estimates, motor fuel in Illinois is principally consumed on highways by private and commercial users. Discounting “special fuels (primarily diesel),” gasoline and gasohol (ethanol) highway consumption accounts for 97 percent of all state-wide motor fuel use when losses due to evaporation and handling (here, estimated at around 14,000 gallons) are also considered. Distillate fuel (primarily diesel fuel) use in Illinois for 2005 is displayed in table 1, below. Onhighway activities account for approximately 82 percent of distillate consumption in the transport sector and 70 percent of total distillate consumption. The transportation sector as a whole represents 84 percent of Illinois distillate use. 6 Table 1. Adjusted Annual Distillate Usage by Sector, thousand gallons, for Illinois, 2005 Sector Residential Commercial Industrial Oil Company Farm Electric Power Thousand gallons 10,715 42,128 78,642 68 195,756 15,909 Transport Railroad Vessel Bunkering On-Highway Military Off-Highway All Other 62,851 124,933 1,460,631 758 139,336 0 Total for Transport Grand Total 1,788,509 2,131,727 Source: EIA (http://tonto.eia.doe.gov/dnav/pet/pet_cons_821dsta_dcu_SIL_a.htm) Illinois’ 2005 CO2 emissions by fuel type and transport sub-sector are delineated below. Table 2. CO2 Emissions from the Transportation Sector in Illinois by Fuel Type, 2005 (Metric tons) 1 % of total Transportation Transportation Fuel Type tonnes/year Aviation Gasoline 35,853 0.0% Distillate (Nos. 1, 2, & 4 Fuel Oil) 3,212 0.0% Diesel Fuel (EF same as Distillate's) 16,849,427 21.4% Jet Fuel 13,836,019 17.6% Kerosene --Liquified Petroleum Gases (LPG) --Motor Gasoline 45,842,054 58.3% Petroleum Coke --Residual Fuel (Nos. 5 & 6 Fuel Oil)* Propane Total Transportation Sector CO2 -1,997,522 78,564,087 -2.5% 100.0% Source: Illinois EPA and DOT Calculations of Prime Supplier Sales Volumes data from EIA website (http://tonto.eia.doe.gov/dnav/pet/pet_cons_prim_dcu_SIL-a.htm). Notes: Emission factors used in calculations are from USDOE's Energy Information Administration (EIA) at http://www.eia.doe.gov/oiaf/1605/coefficients.html. Residual fuel is used chiefly by ships. Reported use varies widely from year to year, and is not available for 2005. Estimates for 2004 were about 74,500 gal/day. "--" means data are not available and are assumed to be negligible. 1 Due to the use of state data in some categories as well as methodological differences transportation emissions data may differ somewhat from data sourced from CAIT-US. 7 Table 3. CO2 Emissions from the Transportation Sector in Illinois by Activity, 2005 (metric tons) Activity On-Highway Aviation Off-Highway Marine Railroad Other sources Total % of total tonnes/year Transportation 57,499,301 73.2% 13,871,872 17.7% 2,689,517 3.4% 1,179,460 1.5% 589,730 0.8% 733,473 0.9% 76,563,353 97.5% Source: Illinois EPA and DOT Calculations of Prime Supplier Sales Volumes data from EIA website (http://tonto.eia.doe.gov/dnav/pet/pet_cons_prim_dcu_SIL-a.htm). Note: Emission factors used in calculations are from USDOE's Energy Information Administration (EIA) at http://www.eia.doe.gov/oiaf/1605/coefficients.html. This table does not include data for residual fuel or propane as these fuels are used in a variety of activities, this is also why percentages to not sum to 100. Not surprisingly, motor gasoline, diesel and jet fuel, which constitute the majority of fuel use in the transportation sector (see table 2), comprise nearly 98 percent of transportation CO2 emissions with motor gasoline accounting for 59 percent of total emissions. With regards to emissions broken down to activity, on-highway transport is by far the largest source of emissions at 73 percent. Aviation emissions are also substantial, comprising nearly 18 percent of Illinois’ transportation emissions. Marine and rail sources make much smaller contributions to total emissions, 1.5 and 0.8 percent of total emissions respectively. It is important to note that for all transport modes and for large interstate travel modes such as aviation, marine and rail in particular, emissions data are assigned to Illinois because that is where the fuel was sold. This methodology is used because assigning emissions at the location of combustion is far more difficult than doing so at the point of sale. Due to the nature of these sources, associated emissions may actually take place outside of the state but are accounted for in Illinois’ total emissions. Table 4 (below) provides a brief summary of trends in vehicle-miles traveled (VMT), population, and emissions between 1990 and 2003. It is notable that during this time period the increase in VMT was significantly greater than growth in emissions, likely due to increased automobile efficiencies. However, both VMT and VMT per capita estimates grew at annual rates that outpace population growth, suggesting that vehicles are being driven further and more often in Illinois than in the early 1990s. Economic development and urban sprawl are the most likely drivers of this trend. 8 Table 4. Transportation Sector Growth in Illinois Illinois 1990 2003 Growth Annual Rate Vehicle-Miles Traveled (billions) 83.6 106.5 27.3% 1.9% Population (millions) 11.5 12.6 10.4% 0.8% 7302.7 8416.0 15.2% 1.1% 55.3 65.5 18.5% 1.3% Vehicle-Miles Traveled per capita GHG Emissions from Transport (MTCO2Eq) Sources: VMT: IL Department of Transportation (http://www.dot.state.il.us/travelstats/2005its.pdf); Population: U.S. Census Bureau (http://www.census.gov/popest/archives/2000s/vintage_2001/CO-EST2001-12/CO-EST2001-12-17.html and http://www.census.gov/popest/states/NST-ann-est.html); Emissions: CAIT (http://cait.wri.org) Land Use, Land Use Change and Forestry (LULUCF), and Land Cover Available CAIT-U.S. data on LULUCF are highly uncertain due to incomplete proxy data sets as well as the variable nature of the biological systems to which the data relate. The following data should be considered illustrative of trends in this sector and taken only as a qualitative assessment rather than an authoritative and quantitative study. Please see the “Illinois Greenhouse Gas Emissions Inventory and Projections” report for important caveats and additional information on this topic. The data provided below show total CO2 emissions (not total GHG emissions) and the amount of carbon sequestered (primarily by forests) as a percent of that total. The data give an indication that the LULUCF contribution to carbon sequestration has been steadily declining since the early 1990s. Specifically, in 1990, CO2 emissions totaled around 194 MtCO2eq, while LULUCF sequestered approximately 14.3 MtCO2 (~7.4 percent of total CO2 emissions). In 2003, CO2 emissions totaled 235 MtCO2eq., while LULUCF sequestered only 7.4 MtCO2eq., or 3.2 percent of total CO2 emissions. The inverse trends of these two variables suggest Illinois’ LULUCF sector is on its way to losing its status as a net “sink” of carbon dioxide. 9 Illinois CO2 Emissions and Percent CO2 Sequestered by LULUCF, 1990-2003 8% 300 7% 250 Total CO2 Emissions 200 5% 4% 150 3% 100 2% % Sequestered Million Tonnes CO2 6% LULUCF CO2 Storage as a % of Total CO2 Emissions 50 1% 0 1990 0% 1992 1994 1996 1998 2000 2002 Figure 7. Source: CAIT (http://cait.wri.org) Given the considerable uncertainty surrounding the data presented above, a second source of data on LULUCF trends in Illinois is included here. Table 5, reproduced from a paper by Dr. Donald Luman of the Illinois State Geological Survey, provides some estimates of how the share of state land area under various land uses changed through the 1990s. Comparing spatial extents of major land cover categories between 1991-1995 and 1999-2000, the table shows that, most significantly, land uses that have relatively low or no carbon storage capacity namely agricultural land and urban areas have increased in land area. Conversely, land uses that have a relatively high capacity to store carbon such as rural grassland and forested areas have declined considerably. The results of this particular study provide some insight as to why there is a precipitous decline in LULUCF sequestration in Illinois during this time period. 10 Table 5. Illinois Surface Area by Principal Land Cover Categories % State Area, % State Area, % Difference 1991-1995 1999-2000 60.37 64.76 4.39 Agricultural Land 18 11.64 -6.36 Rural Grassland 11.59 11.51 -0.08 Upland Forest 3.37 4.54 1.17 Urban Built-Up 1.81 1.81 0 Urban Open Space Nonforested Wetland 0.51 0.69 0.18 Forested Wetland 2.45 3.13 0.68 Shallow Water Wetland 0.49 0.11 -0.38 Surface Water 1.35 1.67 0.32 Barren and Exposed Land 0.05 0.1 0.05 Clouds 0 0.03 0.03 100.00% 100.00% 0.00% Totals: Source: Adapted from Table 2 in Luman, 2003. “Land Cover of Illinois 1999-2000 & Land Cover of Illinois 1991-1995: An Assessment of the Potential for Land Cover Change.” 11