Category Archives: Clean Energy

Cream Cheese and Time-Of-Use Electricity Pricing

By | Bio | Published: May 7, 2013

“The cream cheese just fell off the roof of the car,” my 7-year old daughter said as I turned into my driveway after a trip to the grocery store.  Right now you might be asking yourself, “What does this have to do with time-of-use pricing?” Allow me to explain.

We live in Alameda, CA, where plastic bags are prohibited and stores must charge for a paper bag. Alas, I had forgotten to bring a reusable one.  To teach my children a lesson and avoid the public scorn (not so much the $0.05 per bag), I carried our groceries and asked the kids to lend their hands. And yes, I put the cream cheese on the roof of the car to free a hand to unlock it.

Once home, I realized that, in addition to almost losing my cream cheese, I’d been making potentially risky tradeoffs.  After all, exiting the supermarket with full hands prevented me from holding my children’s hands while crossing a busy – and dangerous – parking lot.

Don’t get me wrong; I’m not lamenting the ban on plastic shopping bags.  I think it makes perfect sense, but it takes time to start making the adjustment and the risk tradeoffs aren’t always obvious.

This scenario– making adjustments that may seem inconvenient and a bit scary, but are well worth the effort– plays out in other areas of life as well.  Particularly in rethinking how Americans use and pay for electricity.

Most of us don’t think about how the time of day affects the cost of serving us power.  In California, we aim to change that by moving to Time-of-Use (TOU) pricing – which will make electricity more expensive during times of peak, or high, energy demand and cheaper off-peak.  In fact, just yesterday, the Sacramento Municipal Utility District (SMUD) recommended moving all residential customers to time-of-use rates by 2018 in an effort to give customers more control over energy costs.

EDF believes that TOU pricing will be best for people and the environment, just as banning plastic shopping bags effectively reduces their environmental impact.  This approach can encourage conservation and reduce peak energy use while providing customers with more choices that can ultimately lower their monthly bills.

Switching to TOU electricity pricing may feel to some like being thrust into a busy parking lot with an armload of groceries and two children to monitor.  When should I use my dishwasher?  Do I need to reset my air conditioner?  Well, yes and no.  You can choose to do nothing, or you can exercise a choice you don’t have with our current pricing structure: shifting energy use to times of lower electricity prices.  It’s quite doable.

A recent survey of nearly 5,000 customers by PG&E and So Cal Edison found that 75 percent have tried shifting their energy use already – even though they don’t get paid to do it.  Two-thirds of respondents said they’d be willing to risk higher bills for the chance to save energy for environmental purposes.  This willingness, combined with wise policies – such as the “Try-Before-You-Buy” bill protection that prohibits bill shocks for up to one year after a customer changes rate plans – bodes well for the union of can-do attitudes and technology innovations like digital electricity meters and automated “set-it-and-forget-it” learning thermostats.

The rewards will be significant: TOU pricing will reduce the amount of peak electricity needed from dirty fossil fuel “peaker” power plants, thereby avoiding costs from blackouts and new energy infrastructure investments.  It can also help to incorporate more renewable, clean energy resources onto the grid – like wind and solar – with significant benefits for energy independence and reduced air pollution that will put us on a pathway toward stabilizing our climate.

Most consumers will see lower energy bills from TOU electricity pricing without doing anything.  Others will need to make adjustments, particularly homes that use a lot of energy during peak energy times of the day.  With a little planning, knowledge and helpful technology, it can be as easy as keeping extra shopping bags in your car.

Just as banning plastic bags is helping to reduce environmental degradation, so too can TOU electricity pricing.  We just need to get comfortable with the idea.  That way we can have our cream cheese and clean environment, too.

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California’s Cap-and-Trade Auction Investment Plan: Top 10 Reasons it’s a Winning Formula for California

By | Bio | Published: April 25, 2013

California’s clean economy is dominated by industries like clean transportation, energy generation, and energy efficiency. So it comes as no surprise these areas were targeted for cap-and-trade auction proceeds investments in the draft investment plan released by the California Air Resources Board (CARB) last week and discussed at today’s CARB hearing.

 

 

 

 

 

 

 

 

 

 

 

 

Specifically, the plan lays out three major categories for investing auction proceeds: 1) Sustainable Communities and Clean Transportation 2) Energy Efficiency and Clean Energy, and 3) Natural Resources and Waste Diversion. Transportation and energy represent the two largest sources of GHG emissions in California, while natural resources and waste represents a huge untapped potential for reductions that will also create multiple benefits.

What are the facts though?  Why are we so sure that these are the right investments that will create a winning formula for California?

1.         It has worked before. A similar investment strategy in New England turned $912 million of proceeds from selling carbon allowances to the electricity sector into $1.6 billion in benefits which included reduced electricity bills and job creation.

2.         It targets our disadvantaged communities. There is clear data indicating  these communities are the most vulnerable to severe pollution and environmental harm and existing law requires at least 25% of auction proceeds benefit these communities. This investment plan lays out ways to exceed that target so that they can expect to disproportionately benefit from California’s plan.

EDF’s Invest to Grow Report showed that …

3.         Investing in the state’s clean economy is investing in job growth. In California, it has added jobs up to 178% faster than traditional economic sectors over the past 15 years, meaning that we can expect investing auction proceeds in the clean economy will continue to spur job growth for years to come.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4.         California’s clean economy has proven more resilient during economic downturns than traditional economic sectors. While overall state unemployment fell seven percent during the recent recession, clean economy sectors remained stable. This means investing in the clean economy is a safe strategy for long term prosperity.   For example, the following graph shows that during economic downturns in 2002 and 2010, the green economic sectors either grew or remained stable while the rest of the economic retracted.

 

 

 

 

 

 

 

 

 

 

 

 

Investing in clean transportation makes sense because it …

5.         Will improve our health. California suffers from some of the dirtiest air in the nation. Forty percent of California’s GHG pollution comes from the transportation sector (cars, trucks, trains, etc.). Traffic pollution from cars also costs California nearly $15 billion in health damages annually. A recent report by the American Lung Association in California confirmed that in 2012, California was home to 11 of the nation’s 25 most polluted cities – so these investments are needed both now and in the future.

6.         Will create jobs. Every $1 billion invested in public transportation creates approximately 24,000 jobs in California – where the state unemployment rate is still about the national average.

Investing in clean energy and energy efficiency makes sense because it …

7.         Has already proven to be a game-changer for California. Energy efficiency projects have saved Californians over $66 billion in the last 35 years. and lowered energy use 25% below 2008 standards.

8.         Benefits recipients from cities and counties to businesses. An EDF’s Climate Corp program demonstrated that cities in North Carolina could save between $534,000 and $2,192,000 over a five year period.  Department of Energy assessments found that on average industry could reduce its electricity bills by 17% with energy efficiency projects that would pay for themselves in 1-2 years.  

Investing in natural resources makes sense because it …

 

 

 

 

 

 

 

 

 

 

 

9.         Helps farmers and the planet. Fertilizers commonly used in agriculture have a heavy GHG impact so reducing their use can generate big GHG savings; it can also save farmers money while reducing the release of harmful air and water pollutants.

10.      Protects open space and agricultural land. Together they can reduce vehicle miles traveled by preventing urban sprawl.  Estimates show that protecting 25 square miles of agricultural land would save an amount of energy that is sufficient to power 48,000 homes and would create health saving of $38.7 million by reducing air pollution.

Also posted in Climate | Comments closed

Nest Labs: Proof Life Exists in the Smart Grid Ecosystem

By | Bio | Published: April 23, 2013

There are many conceptions of the smart grid; what it is and what it should do for us – the “ratepayers” – who will finance the necessary upgrades to California’s electrical system.  I find the concept of a “smart grid ecosystem” — with smart customers, smart utilities and smart markets — to be a helpful guidepost as we seek to evaluate what should be accomplished by the utilities trusted to deploy our smart grid.

Ecosystems achieve resiliency through diversity.  We want a variety of clean energy resources on the supply side – hydropower, wind, solar photovoltaic, solar thermal – spread across a variety of locations (but never too far from customers).  Similarly, on the demand – or customer – side, Californians, buildings, appliances and electric vehicles create an intricate, synergetic web that can be made more efficient and flexible with customer education and empowerment, customer-focused energy pricing policies, and demand response (which allows customers to voluntarily reduce peak electricity use and receive a payment for doing so in response to a signal from their electric utilities).

There are other ways to contemplate diversity in the energy context:  Unlike some other states, most Californians can’t choose their power providers, though they can choose among rate “plans” (which are payment schemes, not plans to help manage energy use and costs).  EDF recognizes that a smart energy marketplace will thrive with a greater variety of competitors, products and services, and would like to see “3rd party energy service providers” able to participate (that catch-all term includes organizations that deliver energy services and products to customers at a variety of levels throughout the smart grid ecosystem).

Yesterday’s announcement by Nest Labs (Nest) is more proof that the smart grid ecosystem is alive and well.   With utility partnerships in California and Texas, among other places, Nest uses their intelligent, WiFi-connected thermostat to help customers smartly and painlessly trim energy use by learning, and mimicking, their temperature preferences automatically.  For example, the Nest’s Seasonal Savings services will alert your thermostat when new rates apply with a change of season and the device will begin slight adjustments to presets to adapt to predictable weather trends.

Source: Nest Labs

Even more exciting is Nest’s Rush Hour Rewards service that provides centralized, automated small reductions to heating or air conditioning at times of peak demand, when energy use is highest.  The offering in particular is designed to enable customers to be good environmental stewards by enrolling in peak energy trimming programs, such as Southern California Edison’s Peak Time Rebate rate.  Another benefit of participation is lower energy bills.

While customers retain the ultimate authority to override thermostat settings, the basic premise is to accept a payment to adjust settings by a couple of degrees when the electric grid is most stressed.  The trouble is involving people in energy conservation actions is less reliable and slower than communicating directly to appliances with computers.  Enter the Nest, strategically located at the interface between utility and customer, with specific dominion over the biggest energy hog in your home – the heating and cooling system.

The reality is that the electric grid as we know it is changing, driven by California’s quest to secure an environmentally safe and affordable energy system. Increasing the amount of clean, renewable energy on the grid will mean that more generation is variable (meaning electricity output from solar and wind depends on sunshine or windiness, respectively).  Up to this point, California has met this challenge by backing up clean resources with dirty fossil fuels.

Smart grid ecosystems can provide hot beds for innovation, like Nest’s learning thermostat, but they must start by getting energy pricing right.  Nest’s business model will thrive when residential customers see time-variant prices (where the price customers pay reflects the cost of electricity produced at a given time of day) that align with the actual costs of delivering power.  We’ve already seen it work in large, statistically-valid studies.

This is how Nest’s learning thermostat will make a difference to your electricity bill and the environment:

  1. Customers would upgrade their old programmable thermostat,
  2. Customers would sign up for a time-variant electricity rate (perhaps at the same they are online for the utility rebate on the new learning thermostat),
  3. On peak demand days when electricity use is highest and the utility will pay consumers handsomely to trim their energy use for a few hours, Nest Labs will signal customers’ thermostats via WIFI.  It’ll feel to customers like an air conditioner turned up a few degrees when it’s over 100 degrees outside (aka, hard to notice any difference).

For California overall it will add up to avoiding more harmful  pollution from fossil fuel power plants in the coming years and, eventually, could be tuned to work harmoniously with variable clean energy resources like wind and solar.  Nest thermostats are among a growing number of products capable of precooling buildings in advance of peak electricity demand, a strategy that will become commonplace once time-variant pricing pervades.

California has already spent billions of customer dollars installing a robust digital metering infrastructure – and it’s time to put these meters to work by enabling customers to participate in demand response and other demand-side programs, such as building weatherization.  Coupled with technologies that now allow for fast, reliable, automated ‘set-it-and-forget-it’ adjustments to electricity use – like Nest’s learning thermostat and other exciting energy innovations – we can seamlessly integrate variable clean energy resources, such as wind and solar.  In California’s energy ecosystem, customers can now choose to actively, or passively, be part of the clean energy revolution without leaving the comfort of their own nests.

Also posted in Smart Grid | Comments closed

California’s Secret to Green Jobs and a Thriving Clean Economy? It’s Policy.

By | Published: April 10, 2013

California has a thriving clean economy. In fact, the Golden State boasted more green jobs in clean energy and transportation last year than the other top 4 states combined, according to a new report by Environmental Entrepreneurs.

Here are some more highlights:

Innovation – The state is a hub for clean energy innovation. Clean technology patents grew by 26 percent in the past 2 years, outpacing the country and the rest of the world.   It is the “undisputed leader in solar technology patents” according to Next10.org, with totals greater than the cumulative solar patents of the next eight highest states. 

Energy Generation – Total renewable energy generation has grown 28 percent between 2007 and 2011 and wind energy has doubled during this same period.  Earlier this month, the state broke its own record for solar power – over 15,394 megawatt-hours of power to the grid, enough for every Californian to keep a 100-watt bulb lit for four hours.  Not to be outdone, the state also surpassed 4-gigawatts of wind power – similar to what California's two nuclear plants can churn out at full power, or enough to momentarily supply over 2.5 million homes.

Jobs – Green jobs are growing four times faster than the rate of all other jobs nationwide, with the majority happening in California according to the Bureau of Labor Statistics.  EDF’s analysis of California’s clean economy finds that jobs in core sectors like energy efficiency, renewable energy, clean transportation, and advanced storage and materials have not only remained resilient during the worst of the Great Recession (2008-2010), they outpaced all other job growth and grew 109 percent from 1995 to 2010.

Green jobs are also good jobs in California.  They are diverse, across a wide range of education-level and skills, and almost half of all jobs in the clean economy don’t require a college degree according to the Brookings Institution.  On average, green jobs offer a higher median wage and career advancement opportunities. An analysis by Philip Romero, the former Dean of CSU Los Angeles College of Business and Economics finds that “workers command wages with a 50-to-100 percent premium over the average job,” and estimates that the overall clean economy will grow “by at least 60-to-100 percent” by the late 2030’s.

Something exciting is happening in California, and at this point you may be wondering what our secret is? 

It’s policy.   California boasts a legacy of innovation stemming from the state’s leadership in environmental policy – it happens here first and it transforms markets.  It is evidenced in everything from improved tailpipe emission standards and higher performing gas mileage in cars, greater efficiency in household appliances, and greener building practices that has transformed the sector and created hundreds of billions of dollars in economic value.  All these innovations started with policy

I believe good stuff can happen when you set clear policies that signal markets and influence behaviors.  There is a reason why 24 percent of hybrid and 32 percent of electric vehicles in the US are registered in California:  good policy that led to better cars and consumers who could see the improvement to their bottom line at the gas pump.  California leads in renewable energy, efficiency, and clean transportation in strong part because of strong policies like AB 32 which puts a price on carbon and sets a statewide Renewable Portfolio Standard, providing a clear market signal for greater investment in clean technology.

And by the way, someone local has to install all those solar panels and wind turbines, weatherize all those homes, as well as maintain and operate all those buses and rail cars – good jobs in the clean economy follow smart policy.

It turns out that California’s “secret” to growing green jobs and a thriving clean economy is not so secret at all…it’s good policy.

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Solar, Wind Prompting Electricity Grid Innovation In California

By | Bio | Published: March 7, 2013

This commentary was originally posted on EDF's Energy Exchange blog.

In a February Wall Street Journal article (“California Girds for Electricity Woes”), reporter Rebecca Smith gives an alarmist and misleading account of California energy regulators’ efforts to secure a cleaner, less expensive, more reliable electricity grid. Right now, California has plenty of power: 44 percent more generating capacity than it typically uses, including a considerable fossil fuel energy portfolio. Renewables – large scale, rooftop solar, wind, and, increasingly, energy storage – make up almost 15 percent of the grid, a percentage that will more than double in the next decade. These clean, innovative energy technologies are working to improve the system by reducing the need for fossil fuels.

The reality is that the grid is changing, driven by California’s quest to secure an environmentally safe and affordable electricity system. Increasing the amount of renewable energy on the grid will mean that more generation is variable; electricity output from solar and wind depends on sunshine or windiness, respectively. Up to this point, California has met this challenge by backing up clean resources with fossil fuels. But California’s ratepayers can’t afford to keep doing this, so instead of “girding for woe,” the CAISO and the CPUC met to proactively address our changing future – to move California towards cleaner, less expensive electric grid planning.

This new approach can increase California’s ability to rely on clean energy generation by building greater flexibility into the system – while giving more options to consumers. Not only can customer-based (“demand-side”) clean energy technologies reduce reliance on polluting power plants, they are quite likely to be more reliable and are potentially more cost-effective. Demand response, or the ability of customers to choose to save money by responding to a price or electronic signal from the grid operator in times of excess system demand, will be key to integrating large amounts of intermittent solar and wind without back-up fossil or storage. In fact, during afternoon peak demand, where supply is extremely limited in its ability to serve load, the addition of virtual generation resulting from the participation of DR into the market will actually lower energy prices.

California has already installed a robust digital metering infrastructure – and it’s time to put these meters to work by enabling customers to participate in demand response and other demand-side programs. Coupled with technologies that now allow for fast, reliable, automated ‘set-it-and-forget-it’ adjustments to electricity use, we can seamlessly integrate variable electricity resources, such as wind and solar, without disrupting energy users. Customers can choose to become an energy resource instead of fossil fuel plants.

Other “smart” resources could also help to integrate renewable resources, including weather forecasting, scheduling energy at shorter time intervals, and sharing the variability in the output of these generators across large geographical regions to smooth out local variation. While these tested technologies would be newer to the California grid, the truth is that conventional fossil fuel facilities are subject to far greater extreme ranges of temperatures than wind and solar. They fail much more frequently, and have to be taken off line for regular maintenance. But the grid was developed to manage these large forced outage rates, and the costs of handling these uncertainties at great cost to ratepayers the grid. Clean resources, coupled with greater flexibility, can create a far more reliable and less expensive system.

California’s regulators should amplify efforts to put in place the right set of solutions to integrate renewable resources – clean energy resources like demand response and other customer-based resources. The story isn’t about having too much solar and wind. It’s about how traditional fossil fuel power plants aren’t viable if we are to protect the environment and ensure a flexible, reliable and sustainable clean energy economy. This meeting of California regulators was one step forward towards integrating clean, resilient, homegrown resources by empowering consumers and sparking the investment and innovation needed to power California’s future.

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Clean Energy Market Poised for Rapid Growth in California

By | Bio | Published: March 1, 2013

This commentary was originally posted on EDF's Energy Exchange blog.

Environmentalists and other policy makers have long touted the economic benefits of investing in energy efficiency and renewable projects. For California, that vision is on course to being realized.

Yesterday, EDF, Citi and Wilson Sonsini held Innovations in Energy Efficiency Finance II, a sequel to the successful conference we hosted in 2011. That year, we discussed several interesting ideas about how we might finance projects. Yesterday we heard from sector leaders on how those ideas are being implemented in California and beyond.

Citi and EDF conceived of this event as an opportunity to bring the energy efficiency and renewable industries together to discuss these opportunities and to build momentum for increased transaction flow. Judging by the makeup of the audience, I think we succeeded. I attend quite a few conferences to discuss energy efficiency and most of them are dominated by fellow public policy types. Yesterday, however, was a different story. Of the 185 attendees, over 2/3 were representing private sector companies in the clean energy or financing business.

As former Governor of Colorado, Bill Ritter noted, “California continues to take bold steps toward clean energy and provide the private sector with clear opportunities to invest in energy efficiency and renewables, critical components of our nation’s economic growth. A key part of achieving our clean energy potential, and creating jobs in America, is ensuring access to quality financing for homes and businesses that want to participate in the new energy economy.”

John Kinney, CEO of Clean Fund, described how he used the recently enabled commercial PACE program to complete $1.4M of financing for Prologis’ corporate headquarters in San Francisco last year.

Commissioner Mark Ferron of the California Public Utilities Commission discussed his hopes for the upcoming On-Bill Repayment (OBR) program for commercial properties that EDF has been advocating. We heard from numerous lenders, solar project developers and energy efficiency vendors that will use this program to expand their businesses in California, which will create a robust marketplace for energy efficiency lending and save energy users money in the process.

Cisco DeVries, CEO of Renewable Funding described another program that the utilities are developing to provide low cost loans for residential retrofits. Citi is expected to provide funding for this effort and Cisco is working with networks of contractors to develop go to market strategies.

Senator Kevin de Leon (D-LA) reminded us we still have some public policy work to do as he is sponsoring bills to extend OBR to residential properties (SB 37) and to provide money for retrofits in schools (SB 39). On the other hand, he challenged the private sector to use the tools already in place to create jobs and reduce emissions. We look forward to helping industry meet that challenge.

I want to thank Citi and Wilson Sonsini, our partners in organizing this conference. In addition to their generous financial support for this conference, Citi has consistently proven their commitment to supporting clean energy finance, working to develop this market despite limited revenue to date. I am optimistic that their expertise in this sector will pay off as this nascent market develops into a viable new asset class. Co-sponsor Wilson Sonsini has been providing pro bono advice for EDF on OBR and I can heartily vouch for their skillset and experience in energy efficiency and renewable finance.

It’s dedication like theirs — along with environmentalists and policy makers — that have given California a leg up on developing clean energy financing solutions and provide a successful blueprint for the rest of the country to follow.

Also posted in Climate | Comments closed

Results Are In: Auction Continues California’s Winning Streak to Fight Climate Change

By | Bio | Published: February 22, 2013

Three months ago California officially opened its world class cap-and-trade program for greenhouse gas pollution – establishing the first ever carbon price in the Golden State and leading the nation on a path toward true climate change action.

Earlier this week, California’s march toward meeting emissions reduction goals was bolstered with a second auction of carbon allowances in the cap-and-trade program, and just today, the results of that auction were released.  All signs point to marked success for the program in the second auction, and suggest California is on its way toward fully realizing the goals of the Global Warming Solutions Act of 2006 (AB 32).

As shown by the results released at noon today, overall participation in the February 19, 2013 auction was high, with almost 2 ½ times more credits bid on than were sold.  Initial reports show this has beaten all market expectations, and the clearing price of $13.62 suggests a strong belief in the longevity of the overall program.

By selling more than 7 million state-controlled carbon allowances, California’s second auction also raised about $83.5 million  – money that will be used to advance the goals of AB 32. Furthermore, since recent legislation was passed in 2012 that requires at least 25% of the auction proceeds to benefit disadvantaged communities, this auction will inspire more than $20 million in investments that can benefit Californians in need.

With respect to who participated in the auction, market statistics show there was approximately a 25% increase in the number of qualified auction participants as compared to the last auction.  This increased participation was no doubt partly responsible for the fact that 2013 credits were purchased by a diverse array of bidders (as opposed to credit purchases being concentrated in a few entities).  This diversity of participation, coupled with the strong regulatory oversight being used by state agencies and expert market monitors is an important guard against market manipulation and is yet another example of how this market looks to be strong and diverse, a good sign moving forward.

In addition to auctioning off credits that can be used for emissions obligations in 2013, California’s second auction also offered advance vintage credits that can be used for compliance starting in three years (2016).  Based on the sales volume of these credits (greater than 4.4 million sold), there continues to be moderate demand going forward for future vintage credits, another indication of the belief of the programs longevity.

A California carbon price opens the door for cleaner energy and clean air, as the State finally has an ongoing cost that can be attributed to carbon pollution. California’s next auction will occur in 3 months, though investments made now can be assured their carbon reduction value can be both calculated and counted on. As shown by today’s auction results, while much of the nation has waited to take concrete action against climate change, California’s train is out of the station and picking up steam every day.

Also posted in Cap-and-trade auction, Climate, General | Comments closed

California Climate and Energy: Top 10 Blogs of 2012

By | Bio | Published: January 7, 2013

2012 was an exciting year for California’s climate change and energy leadership. Our “Top 10 Blogs of 2012” recap some of the year’s highlights and illustrate how EDF is engaged in groundbreaking work in the Golden State every day. Whether it was helping to pave the way for the opening of North America’s largest carbon market in California, or helping design the first commercial On-Bill Repayment program, EDF was at the center of the most important environmental issues facing California in 2012.

In 2013, we will continue to tout both the economic and environmental benefits of California’s landmark environmental programs. California is our nation’s most important laboratory for meaningful action on climate change and clean energy. We must ensure that California serves as a model for the nation proving that good environmental policy can create jobs, spur our economy, and improve our overall quality of life.  We look forward to a productive and prosperous 2013 and will continue to share with you the stories that impact California and shape our nation.

       1. On-Bill Repayment Bill Introduced In California (Published: December 7, 2012)

California Senator Kevin de León introduced a bill, SB 37, which would create the first On-Bill Repayment (OBR) program entirely financed by private capital. OBR allows property owners to finance energy efficiency and renewable generation upgrades and repay the obligations through their utility bills. Read more…

       2. California Cap-and-Trade Auction Success (Published: November 19, 2012)

The results of California’s first ever auction for greenhouse gas (GHG) emissions allowances are public, marking the start of a new era for stimulating innovative solutions to combat climate change. Coincidentally, earlier today new atmospheric data was released by NOAA showing that 2012 is on pace to be the warmest year, eclipsing the mark set only two years ago. Read more…

       3. California’s record gas prices shows AB 32 will help both your wallet and your health (Published: October 10, 2012)

Fuel prices in California hit historic highs this week, an unexpected price spike that has put the state’s dependence on oil and natural gas into sharp focus. Like many of the state’s former fuel price shocks caused by demonstrable events (i.e. foreign and domestic supply disruptions), oil companies are once again saying that refinery problems and pipeline issues were the root cause. However, most reports on the current price swing aren’t pinpointing the true reason – drivers en masse are too reliant on the current mix of gas and diesel, an energy source that pollutes our environment every time it is used. Read more…

       4. Latino Support Surges for the Environment (Published: October 4, 2012)

California lawmakers take notice: Latino voters want a strong economy AND a clean environment, two things they believe are not mutually exclusive. Read more…

       5. What does history say about the costs and benefits of environmental policies? (Published: September 20, 2012)

With just three months to go before California launches North America's first economy- wide cap on global warming pollution, many businesses large and small all over the state are quietly and effectively creating a clean economy that will get a further shot in the arm when California puts a price on carbon in January. Unfortunately, albeit predictably, opponents of this landmark effort choose to overlook the likely benefits and instead spread questionable information about the assumed costs. Read more…

       6. Californians see global warming as a threat, and support action to abate (Published: August 2, 2012)

Decision makers at every level across California should take notice of today’s affirmation that the public supports California’s efforts to respond to the causes of climate change. Read more…

       7. Invest to Grow: EDF’s newest report highlights the opportunities created by the strategic investments behind California’s landmark emissions reduction program (Published: July 13, 2012)

Over the past 20 years, the unprecedented growth and resiliency of California’s clean and efficient economy has continued throughout economic recessions and budget crises – even while many other sectors of the economy have shrunk. This growth has created a statewide infrastructure of companies providing the products and services that are at the heart of the transition towards a lower carbon economy envisioned by California’s landmark climate law. Read more…

       8. A Dynamic Approach To California Energy Use (Published: July 5, 2012)

Californians are poised for a more functional, data-driven model for setting the prices people pay for electricity. The new model will make the massive differences in costs of providing electricity during the course of a typical day more evident to us as energy users, thereby inspiring more efficient use of electricity resources. Read more…

       9. Outpouring of Support for California’s Low Carbon Fuel Standard (Published: June 25, 2012)

California’s Low Carbon Fuel Standard (LCFS) has received an impressive outpouring of support from a diverse range of “friend of the court” briefs as the case challenging the regulation makes its way through the 9th Circuit Court of Appeals. Back in April, the LCFS won a preliminary victory when the 9th Circuit held that California could continue to enforce the regulation while the court considers the case. On June 8, the state and other appellants, including EDF, submitted the first full brief arguing the merits of the case. A week later, groups filed seven different briefs in support of the LCFS, asserting a wide range of interests in the case. Read more…

       10. Getting ‘Smart’ About Your Energy Use Just Got Easier (Published: January 20, 2012)

On Wednesday, I attended a presentation of the Green Button at EMC2, hosted by Silicon Valley Leadership Group, OSIsoft and SolarCity, and moderated by Aneesh Chopra, U.S. Chief Tech Officer and Advisor to the President. Read more…

 

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On-Bill Repayment Bill Introduced In California

By | Bio | Published: December 7, 2012

Yesterday, California Senator Kevin de León introduced a bill, SB 37, which would create the first On-Bill Repayment (OBR) program entirely financed by private capital. OBR allows property owners to finance energy efficiency and renewable generation upgrades and repay the obligations through their utility bills.

Senator De León said that “every Californian should be able to participate in the clean energy economy, and OBR helps us achieve this goal.” He believes that “OBR will lower utility bills, reduce pollution from dirty energy, and put thousands of Californians back to work. I am proud to be working with a broad coalition dedicated to moving this bill forward."

This bill will authorize the California Public Utilities Commission (CPUC) to extend their groundbreaking commercial OBR program to residential properties. (The commercial program is expected to be effective by the end of March and was recently profiled in the New York Times.)  We expect the residential program to provide retrofit capital to consumers that might not otherwise have access to low-cost funding for retrofits. These retrofits are expected to save money for consumers after financing costs and in many cases allow for more comfortable, healthier homes.

EDF is committed to working with consumer groups to make sure that this bill includes appropriate consumer protections. We will also be working to expand a coalition of supporters from the environmental, labor, business and financial communities.

Also posted in Smart Grid | Comments closed

California Cap-and-Trade Auction Success

By | Bio | Published: November 19, 2012

The results of California’s first ever auction for greenhouse gas (GHG) emissions allowances are public, marking the start of a new era for stimulating innovative solutions to combat climate change.  Coincidentally, earlier today new atmospheric data was released by NOAA showing that 2012 is on pace to be the warmest year, eclipsing the mark set only two years ago.

By establishing a hard cap on emissions and creating a carbon price through a trading mechanism, California’s comprehensive GHG program complements, and is fine-tuned based on experiences from the world’s other climate change cap-and-trade mitigation programs.  For example, lessons learned from the world’s largest cap and trade program in the European Union have shown that emissions of GHGs can actually decrease while the economy grows.  Similarly, as shown by the Analysis Group’s report of the cap-and-trade program in the Northeastern United States, in addition to creating a strong signal for innovation, money generated through an auction can be invested in ways to cut GHGs even further.

Based on today’s results, California’s program is performing according to the expectations of economic experts and policy makers.  The market price ($10.09) for credits that can be used in 2013 was slightly above the floor price of $10 dollars.  Also, there were more bids for 2013 credits than credits sold, with 97% of allowances going to covered entities.  Put simply, regulated businesses are taking this market seriously and believe they can cut greenhouse gas emissions even more cheaply than anticipated.  This is a very good thing for California.

At the same time as the California carbon auction sold 23 million allowances for use starting in 2013, the market also sold 5.5 million allowances for use in 2015 and beyond.  This is a clear signal that investors see this as a lasting program, and provides an important signal that the 9 billion plus dollars of clean tech investment made in California since 2006 has strong backing.

A California carbon price opens the door for cleaner energy and clean air, as we finally have an “official” cost of pollution. We are marching more resolutely than ever into an economically and environmentally sustainable future.

 

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