Yesterday, we covered the Colorado Air Quality Control Commission (AQCC) taking public testimony from citizens who traveled from around the state to speak in support of a groundbreaking proposal that would slash emissions of smog-forming pollutants and greenhouse gases coming from oil and gas activities.
Formal proceedings kicked off today – and will likely run through the weekend – with various parties presenting their opening cases. EDF went early in the day, providing strong evidence that the proposed rule is cost-effective and urgently needed to combat local air quality problems and climate change. We also highlighted some glaring flaws in the methodology industry opponents cooked up to show inflated costs for the rules.
The Colorado Oil and Gas Association (COGA), the Colorado Petroleum Association (CPA) and the DGS group are throwing everything they can at the rule to try to gut it. But they’re in a shrinking minority on the wrong side of history.
This commentary originally appeared on EDF's California Dream 2.0 blog.
With the stroke of a pen, North American efforts to combat climate change and promote clean energy reached a new level today.
I was lucky enough to witness the historic event, as Governor Jerry Brown joined the leaders of Oregon, Washington State and the Canadian province of British Columbia, to sign an agreement that formally aligns climate and clean energy policies in the four jurisdictions.
This signing by these “Fab Four” of the Pacific Coast Collaborative makes sense given all they have in common: they’re geographically connected, share infrastructure, and their combined regional economy accounts for a $2.8 trillion GDP, making it the world’s fifth largest economy.
Progressive Power Providers Show a Path Forward
Traditionally, electric utilities have been in the business of providing reliable power to their customers. Prices for each class of customer are fixed by state regulators and a customer’s choice is pretty much limited to whether they want to turn on the switch or not. Much of the EDF Smart Power initiative is focused on helping to create new utility business models that change this paradigm by increasing customer choice, providing market feedback on these choices and incentivizing the use of cleaner sources of power.
Several electric utilities are getting ahead of the curve by embracing these changes. While both own large fossil fuel assets, NRG Energy and NextEra Energy have also been developing utility-scale and distributed renewable generation projects across the country. NRG Energy develops solar and other renewable projects for government, commercial and other institutional customers, and NextEra Energy, the largest generator of wind and solar power in North America, develops and finances large commercial and small utility solar projects through its subsidiary Smart Energy Capital. Cumulatively, they have provided more than 110 megawatts of distributed solar generation capacity to schools, government and commercial facilities, among others.
Over the past week, two other energy providers, Direct Energy and Viridian, have announced deals with SolarCity to offer no-upfront cost solar installations to their current and prospective customers. In many cases, these solar installations will provide clean energy at a lower cost than the customer currently pays for dirtier, fossil fuel power. Direct Energy even took it a step further by agreeing to provide part of the financing for their customers. Since there are few investors that currently finance solar projects, Direct Energy can expect to earn a very attractive return on their investment. While solar financing has been around for several years, Direct Energy and Viridian can now offer customer solutions that bundle solar installations with other energy services.
This commentary originally appeared on EDF's Climate Corps blog.
By: Sitar Mody, Senior Manager of Strategy, Environmental Defense Fund
Today, EDF Climate Corps is thrilled to launch a major initiative to accelerate energy performance in buildings in the city of Chicago.
Chicago is a beautiful city. Chicago is an historic city. Chicago is also a city with a clear and powerful dedication to advancing energy efforts citywide. Many buildings in Chicago are already on a path to greater energy management having committed to Retrofit Chicago – the city’s premier initiative to help buildings reduce their energy use by 20% over 5 years.
EDF’s new Building Energy Initiative in Chicago will complement Retrofit Chicago by giving building owners and operators the “boots on the ground” to sustain their commitments and facilitate access to advanced energy markets – all to save money and the environment.
EDF is recruiting 50 buildings in the city to participate in EDF Climate Corps and developing a robust network for building owners and operators to accelerate adoption of leading energy management practices and gain confidence in implementing innovative investments. We also have two experts, Devesh Nirmul and Ellen Bell, on the ground in Chicago to provide year-round technical support.
Earlier this year, the Alliance Commission on National Energy Efficiency Policy unveiled a plan to double nationwide energy productivity by 2030. It’s an ambitious move to greatly increase our nation’s use of energy efficiency, which represents a huge – and largely untapped – opportunity. Reducing wasted energy through efficiency cuts harmful pollution and saves people money on their energy bills. After all, the cheapest, cleanest, most reliable electricity is the electricity we don’t have to use.
Source: Church Times
Similarly, the State Energy Race to the Top Initiative (Initiative) is an incentive for states to make voluntary progress to increase their energy productivity. The U.S. Senate is moving forward to make this idea a reality. Originally introduced as a bill in June, the Initiative has now been filed as a potential amendment, sponsored by Senators Mark Warner (D-VA), Joe Manchin (D-WV), and Jon Tester (D-MT), to the Shaheen-Portman energy efficiency bill. If passed, the Initiative will stimulate energy innovation in both the public and private sectors, and allow states to tailor energy saving policies to their particular needs.
Administered by the Department of Energy (DOE), the Initiative will be broken into two phases. In the first phase, following the submission of state proposals through their energy office, DOE selects 25 states to receive funding (a combined $60 million) to move their energy productivity concepts forward. Although states have complete independence in developing and implementing their own clean energy strategies, the DOE will provide technical assistance upon request. Eighteen months later, in the second phase, the 25 states will be asked to submit progress reports to DOE. Based on their projects’ success, DOE will then select up to six states to receive a share of $122 million to continue their energy saving efforts.
Over the past several weeks, I've written a lot about the intimate and inextricable connection between energy and water. The energy-water nexus involves a number of technologies, environmental factors and stakeholders. Thus, it’s no surprise that water and energy’s fundamental connection has eluded policymakers for so long. With this post, I review the lessons discussed so far, so that policymakers can understand the key issues surrounding the energy-water nexus and what’s at stake if we fail to act now.
The Bottom Line
Conventional electricity sources, like coal, natural gas and nuclear power plants, require an abundance of water — about 190 billion gallons per day. Because the majority of our electricity comes from these sources, high energy use strains the water system and contributes to Texas’ prolonged drought. Coincidentally, extreme drought could force power plants to shut down.
Climate change is having a profound effect on our weather patterns, making extreme heat and drought more common in Texas and throughout the Southwest. If we don’t set the energy-water system on a sustainable course, we risk a compounded problem.
Last week, the Hurricane Sandy Rebuilding Task Force released a Rebuilding Strategy, which aims to rebuild communities affected by Hurricane Sandy in ways that are “better able to withstand future storms and other risks posed by climate change.” From an energy perspective, the main goal of these recommendations is to make the electrical grid smarter and more flexible. This effort would minimize power outages and fuel shortages in the event of similar emergency situations in the future.
The Task Force is led by President Obama and chaired by Housing and Urban Development (HUD) Secretary Shaun Donovan. The recommendations put forth in the report were developed with Governor Cuomo, Governor Christie, and a number of federal agencies and officials from across New York and New Jersey, representing an unusual opportunity to make changes that will help communities weather future crises.
This key idea – smarter, flexible energy – is central to resilience, safety and quick recovery in a storm, as well as reducing the harmful pollution linked to climate change in the first place. This has been a key theme of EDF’s efforts to help the Northeast region respond to Sandy.
When the power grid went down on most of New York City following Hurricane Sandy, a number of buildings were able to keep their lights on thanks to existing microgrids and on-site, renewable energy sources. The Task Force report lays out a path forward for taking these isolated success stories to scale and making these clean technologies available to everyone.
Over the past few weeks, I’ve written a number of posts to help shed light on the fundamental connection between energy and water. Because many of our energy sources gulp down huge volumes of water, it’s imperative that we break down the long-standing division between energy and water planning — especially in drought-prone states like Texas. I’d like to take a step back and look at how Texas’ neighbors are addressing energy and water co-management. While Texas may be an extreme example, looking toward its immediate neighbors could provide ideas and best practices to improve the state’s situation.
A number of western states are facing many of the same challenges as Texas. Electricity production is a major drain on the region’s water supply. A study co-authored by Western Resource Advocates and EDF showed that thermoelectric power plants, such as coal, natural gas and nuclear, in Arizona, Colorado, New Mexico, Nevada and Utah consumed an estimated 292 million gallons of water each day in 2005 — roughly equal to the amount of water consumed by Denver, Phoenix and Albuquerque combined (and we’re talking water consumption, not just withdrawals). Like Texas, the western states face a future of prolonged drought. Scientific models predict climate change will increase drought throughout the Southwest, placing greater stress on the region’s delicate water supply.
Additionally, electricity production, numerous thirsty cities and widespread agricultural activity all strain the water system, too. Because so many flock to western states for fishing, kayaking, rafting and other recreational water activities, setting the region’s water system on a sustainable path is a critical economic issue. The exceptional challenges facing western states have already prompted some states to consider the energy-water nexus when planning to meet future water and electricity needs. Read More
As we’ve highlighted in previous posts, water and energy regulators often make decisions in silos, despite the inherent connection between these two sectors. Texas is no exception.
Two very important and intertwined events are happening in Texas right now.
First, the state is in the midst of an energy crunch brought on by a dysfunctional electricity market, drought, population growth and extreme summer temperatures. An energy crunch signifies that the available supply of power barely exceeds the projected need (or demand) for electricity. Texas’ insufficient power supply makes the whole electricity system vulnerable to extreme weather events. An especially hot day (with thousands of air conditioning units running at full blast) could push the state over the edge and force the Electric Reliability Council of Texas (ERCOT), the institution charged with ensuring grid reliability, to issue rolling blackouts.
Second, Texas is still in the midst of a severe, multi-year drought, forcing state agencies to impose strict water restrictions throughout the state. The drought has already had a devastating impact on surface water and many communities are facing critical water shortages.
Although Texas has always had to deal with extreme weather events, we can anticipate even more intense weather as climate change advances. The new climate ‘normal’ makes extreme heat waves, like the historic 2011 Texas summer, 20 times more likely to occur. These extreme weather events heighten the urgency of the energy-water nexus. Read More
Posted in Climate, Demand Response, Energy Efficiency, Energy-Water Nexus, Renewable Energy, Texas, Utility Business Models
Also tagged Demand Response, Energy Efficiency, Energy-Water Nexus, Texas Energy Crunch, Water
Source: ENR New York
The Wall Street Journal recently reported that electricity prices in West Texas skyrocketed over 20% this year. West Texas is home to the Permian basin, one of the world’s largest oilfields, and energy producers use hydraulic fracturing, or “fracking,” here to unlock vast new oil and gas supplies. The increased drilling, oil refining and natural gas processing uses large amounts of electricity.
Cheaper electricity supplies are available, but cannot be delivered to West Texas due to transmission bottlenecks, or “congestion.” The only power that can be delivered is from older coal plants. This leads to transmission “congestion” charges (i.e., higher energy supply costs caused by the transmission bottlenecks), which commercial and industrial consumers must pay as a surcharge on their monthly electricity bills. Using these older coal plants leads to more pollution as well because these plants burn fuel less efficiently and have higher levels of toxic air emissions.
The typical solution is to build new transmission lines to access cheaper electricity supplies. But a better and cheaper approach is to pay consumers for voluntarily reducing their electricity usage when energy supplies are tight. Known as “demand response,” this solution: