New technology is evolving electricity transmission from a centralized, one-way system to a more distributed, interactive one. This system necessitates new electricity rates, and the National Association of Regulatory Utility Commissioners (NARUC) unveiled this week at its annual summer meeting a draft manual that will help states across the U.S. design them.
The Distributed Energy Management Compensation Manual is basically a compendium of rate design options that regulators can consider, and it outlines each option’s pros and cons. NARUC President Travis Kavulla charged his staff with writing the manual – a monumental undertaking – and we commend the organization for this effort.
I was pleased to speak during the Town Hall event at which NARUC rolled out the draft manual, and my remarks focused on one critical need: good rate design process. Choosing the right electricity rate for a state is important, but so too is the process by which regulators arrive at that decision. Early in the document it recognizes, “A jurisdiction will need to identify its current status regarding DER [distributed energy resources], what role it expects DER to have in the future, understand the nature of DER adoption rates, and identify necessary policy developments to accommodate that future.” Now is the time to encourage NARUC to include in the manual a dedicated section that shows states how to build a process for ratemaking that will be sustainable, benefit consumers, and advance in tandem with electricity distribution technology. Read More
The U.S. Bureau of Land Management should do more to protect taxpayers from unnecessary waste of their natural gas resources. That’s the main takeaway from a new report from the nonpartisan U.S. Government Accountability Office. Its findings again underline the urgent need for BLM to finalize strong new standards to reduce methane waste.
Methane is both the primary component of natural gas and a very potent climate pollutant. In fact, pound for pound, methane is more than 80 times worse for our climate than carbon dioxide in the short term. This means that unnecessary methane waste and pollution like the GAO found in this new report is a double whammy – depriving taxpayers of revenue due to us for the development of our natural gas resources and dangerously accelerating climate change.
The GAO finds that BLM needs more consistent policies in place to better limit methane waste and pollution from the oil and gas production it oversees on hundreds of thousands of acres of federal and tribal lands. It’s a big problem. Read More
As a major producer and consumer of oil and gas, California can set the bar for reducing methane leaks. And today, the Golden State showed it’s up to the challenge, making a critical change in proposed rules aimed at cutting methane pollution from oil and gas wells, pipelines and equipment of the like – now putting California firmly on the path to adopt the nation’s strongest methane controls anywhere.
This matters because methane, the main ingredient in natural gas and a common byproduct of oil production, is a damaging greenhouse gas, with more than 80 times the warming power of carbon dioxide over a 20-year time frame.
A big lesson-learned from the months-long, mega-gas leak at Aliso Canyon, and the similarly tragic eight month gas leak in Arvin, CA in 2014, is that oil and gas infrastructure can fail. While leaks the size of Aliso Canyon are rare, it’s an example of the risk we face daily as this infrastructure ages, and a sobering reminder of how important it is to have protections that ensure methane stays in the pipelines—and not in our air. Read More
Mexican President Peña Nieto today formalized Mexico’s plan to join the U.S. and Canada in making oil and gas methane reductions a national priority, marking yet another country taking leadership to address this extremely potent greenhouse gas. The three leaders agreed that each of their countries would develop rules to cut up to 45 percent of methane escaping from across the continent’s oil and gas industries by 2025. It’s a pledge that once fully realized would have the same 20-year climate effect as taking 85 million cars off the road. Featured among a package of broader energy and climate commitments, the common methane reduction goal is a centerpiece.
This announcement is a milestone for North America energy integration and cooperation. But, it’s also an important moment for Mexico. The commitments Mexico is making both in-country and as part of the continental pact on methane, distinguishes Mexico as a clear world leader on energy and climate issues, along with the U.S. and Canada. By taking advantage of low-cost, oil and gas methane reductions, Mexico can make an immediate down payment on its climate goal – cuts can deliver about 10% of the greenhouse gas reductions Mexico pledged, and all at a cost savings. The key will be implementation and what steps Mexico takes next are critical. Read More
In partnership with Mexico’s Mario Molina Center and Canada’s Pembina Institute, EDF released a policy brief in Mexico City this week that illustrates that national action in the United States, Canada and Mexico could cheaply and quickly eliminate 232 billion cubic feet of methane from the North American oil and gas industry.
Titled “North American Climate Leadership: A road map for global action,” the brief synthesizes analyses included in ICF’s North American report and its research conducted in the U.S. (2014), Canada (2015) and Mexico (2015). All of ICF’s analyses found that reducing methane from the oil and gas supply chain is cost-effective and environmentally beneficial. Even at today’s historically low gas prices, the cost of capturing methane would add just one penny to the current price of gas, based on the cost of solutions and the ability to sell the recovered gas. Read More
By Mark Brownstein and Steve Hamburg
An organization in North Carolina this week asked the U.S. Environmental Protection Agency to examine questions about the accuracy of measurements from a device used in two of the large and growing list of studies published in recent years quantifying the enormous amounts of methane released into the atmosphere by the U.S. oil and gas industry each year.
That long list of studies is a major reason why EPA recently increased its official estimates of industry emissions by 34 percent, and why the agency is pursuing new rules to start fixing the problem. In fact oil and gas methane emissions have moved from obscurity to center stage with remarkable speed, thanks to rush of compelling data.
The particular papers at issue were written by a team of scientists led by Dr. David Allen of the University of Texas. They are among of a group of studies on oil and gas industry methane emissions organized and coordinated by EDF. Possible complications involving a piece of sampling equipment (among several that were used) have been discussed by researchers in both academic literature and the news media for more than a year. You can read the blog that EDF wrote on it back in 2015 here. Read More
Posted in General Tagged Methane