Monthly Archives: February 2012

California’s On-Bill Repayment Program Takes Two Steps Forward

This commentary was originally posted on the EDF California Dream 2.0 Blog.

Last month, the California Public Utilities Commission released for comment EDF’s proposal to create the first statewide on-bill repayment (OBR) program that pays for energy efficiency and renewable energy upgrades for residential and commercial properties using third-party financing. The proposal is taking two important steps forward this week.

The first step: Senator Kevin de Leon (D-LA) and Senator Lou Correa (D-Orange County) today introduced enabling legislation for the program. Based on preliminary conversations, we are optimistic that this proposal will receive support from members of both political parties.  This bill is designed to deal with questions regarding the agency’s authority to develop an OBR program.  It also provides a mechanism for property owners to disclose OBR projects to prospective renters or buyers. This disclosure will enable a building occupant to see how the money saved by the efficiency project will be used to pay back the OBR investment tied to their property.   

The second step: the CPUC is hosting workshops in San Francisco on February 8-10 to discuss the OBR proposal and other aspects of energy efficiency finance. More than 200 stakeholders and other members of the public are expected to participate in the workshops, including several contractors, lenders, Energy Services Agreement (ESA) companies and building owners that see an attractive economic opportunity in the program.

EDF looks forward to working with all interested parties, to construct a successful program that can begin financing projects early next year.

Posted in California, Energy Efficiency, On-bill repayment / Comments are closed

Creating Energy Champions

This commentary was originally posted on Duke Energy’s Shedding A Light Blog.

In late January, I had the great pleasure of joining a group of Charlotte, N.C. city employees at an “Energy Champions” training hosted by Duke Energy and Charlotte Center City Partners. The city workers were bursting with enthusiasm, inventing creative ideas on the spot about how to motivate people to reduce energy use in the workplace. Many involved “friendly” competitions, around things like turning off monitors and lights: I for one would not want to be the recipient of the “Dim Bulb Award.”

Participants were excited to help Charlotte shine as a leader in innovation and to be part of Envision Charlotte, an initiative to make their city the most sustainable urban core in the country. Environmental Defense Fund (EDF) is pleased to be part of this innovative public-private partnership, along with Duke Energy, Charlotte Center City Partners, Bank of America and others.

One goal of Envision Charlotte is to reduce energy use in more than 60 large commercial and government buildings in Uptown Charlotte by 20 percent within a five-year timeframe. Why target buildings? Because buildings account for more than 30 percent of total energy use, and 65 percent of electricity consumption. Reducing energy use in buildings, especially the large buildings participating in Envision Charlotte (more than 10,000 square feet each), can have a huge impact and presents an enormous opportunity to cut costs and greenhouse gas emissions.

One of the ways Envision Charlotte will accomplish this goal is through Duke’s Smart Energy Now program. Duke and its partners Cisco Systems and Verizon Wireless have already installed smart meters and information kiosks in participating buildings. These displays show in real-time how much energy is being used in the city’s center every day, and provide tips on how to reduce that use. Information is also available through a secure portal, accessible to building owners and managers, which shows how much energy each individual building is using. This information will help employees, building owners and facilities managers make smart decisions about how they use energy every day of the week.

As a smart grid expert, I’m particularly interested to see what role smart technologies will play in making these buildings more efficient, and in shifting demand away from times of peak electricity use, when energy is most expensive and most polluting, and (ideally) to times when renewable energy is available on the grid.

Duke and its partners will host more Energy Champions trainings over the next few months, targeted specifically to different segments of building users: executives, workers and facilities managers. There is already palpable excitement in the city with the Democratic National Convention coming in the fall, which will place Charlotte in national, and even international, spotlights. Only these spotlights will be energy efficient. And please turn them off when you’re done.

Posted in Energy Efficiency, Grid Modernization, North Carolina / Comments are closed

California Follows Smart Meter Best Practice: Proactively Address Public Concerns

This commentary was originally posted on the EDF California Dream 2.0 Blog.

Energy powers our economy. But our outdated energy system is wasteful, expensive and a major source of pollution, leading to the deaths of approximately 60,000 Americans per year. Utilities in California and across the country are now investing billions of dollars to modernize that infrastructure, making use of the information technologies that have revolutionized so many other realms of our lives. The smart grid they’re building will improve air quality and the health of millions of Americans affected by air so dirty it is often dangerous to breathe.

Smart meters are a key component of the smart grid. They unlock air quality, climate pollution and public health benefits by enabling two-way, real-time communication that gives households, small businesses, manufacturers and farmers (and the utilities that serve them) the data they need to cut energy use and electricity costs. These devices help ensure that every day energy users reap the many benefits of the smart grid.

Yesterday, the California Public Utilities Commission (CPUC) approved a proposal by Pacific Gas & Electric (PG&E) that allows customers to keep their analog meters and opt out of using the new wireless smart meters. This decision is designed to address concerns of individuals who describe themselves as having electromagnetic hypersensitivity to radio frequencies (RF), and report getting headaches, fatigue, nausea and insomnia from exposure.

The radio frequencies used by smart meters are now pervasive in our lives, emitted by our cell phones, microwaves, baby monitors, and numerous other devices we use daily. To understand the potential health risks associated with use of these devices, EDF has completed a thorough review of the scientific literature on the potential effects of electromagnetic and radio frequencies (EMF/RF) on human health. We have reviewed reports from the World Health Organization (WHO) and the California Council of Science and Technology (CCST). We also consulted with outside experts, including Dr. Leeka Kheifets, a Professor in Residence at UCLA who sits on the Standing Committee on Epidemiology for the International Commission on Non-Ionizing Radiation Protection.

The WHO review states that “in the area of biological effects and medical applications of non-ionizing radiation, approximately 25,000 articles have been published over the past 30 years. Scientific knowledge in this area is now more extensive than for most chemicals.” These studies, it concludes, find that “current evidence does not confirm the existence of any health consequences from exposure to low level electromagnetic fields.”

The WHO assessment spotlights the importance of conducting rigorous scientific research to evaluate environmental and health problems, a core principle of EDF. Our policies are based on the best available science and are altered as necessary when new evidence comes to light.

This research helped inform EDF’s position that the limited RF exposure levels associated with smart meters should not result in reduced support for the smart grid, especially in light of the significant health benefits it will deliver by enabling far less use of fossil fuels and far greater reliance on clean, renewable energy, including small, community-based generation like rooftop solar PV.

Today’s ruling strikes the proper balance: sustaining progress toward a smart grid with its multiple public health benefits while addressing individuals’ concerns. It gives consumers the same type of choice about what technologies to use in their everyday life.

We support the PUC’s decision and continuing research on the possible health effects of radio frequencies.

For more information on this topic, please see EDF President Fred Krupp’s memo on “Health and the smart grid.”

Posted in California, Grid Modernization / Tagged | Read 3 Responses

Are Natural Gas Vehicles Good For Climate Change?

Source: Pike Research

Last week, in a speech in Las Vegas, President Obama called for getting more natural gas vehicles (NGVs) on the road in the United States.  NGV proponents applauded the speech and immediately reiterated the conventional wisdom that because natural gas burns cleaner than gasoline or diesel, NGVs lead to reduced greenhouse gas emissions.  However, recent science shows that the conventional wisdom may not be right.

While it is clear that the actual combustion of natural gas is cleaner than the combustion of gasoline or diesel, there are other emissions associated with the production, delivery and use of those fuels.  Natural gas is essentially methane, a potent greenhouse gas.  Over 2o years, a pound of methane is 72 times more potent than a pound of carbon dioxide.  As natural gas is produced and piped across the country, there are plenty of opportunities for it to leak into the atmosphere. EPA estimates that leak rate to be somewhere between 2-3%, but the exact amount is the subject of much debate. 

What we do know is that whatever the percentage of methane that is lost to the atmosphere, it erodes the climate benefits of combusting natural gas.  In other words, the higher the leak rates the less the benefits.  If leakage is high enough, NGVs can actually be worse for climate for some period of time. A newly published study concluded that over 20 years, NGVs were worse for the climate than gasoline or diesel vehicles unless current leak rates are reduced.  With current leak rates, even after 100 years NGVs are no better for the climate than gasoline or diesel vehicles.

Because methane is more potent over shorter time frames, if we remove more methane now,  we can reap quick benefits for the climate system.  However, if we emit more methane now, it will have a greater negative impact on the climate system.  This may be precisely the outcome we get if we aren’t careful in how we proceed with NGVs.  Before large-scale policies encouraging NGVs are written into law, we should better understand the leak rate of methane from the natural gas supply and take actions to ensure it is low enough that putting more NGV on the road does not harm the climate. Understanding and reducing leak rates is critical to accepting NGVs as a legitimate GHG strategy. EDF is working to do this, but until we have better data and see an industry committed to reducing leaks, we will reserve judgment on whether the President’s call for accelerating NGVs is justified.

Posted in Natural Gas / Comments are closed