Monthly Archives: April 2012

California sets pace on clean energy funding, patents and adoption, while cutting pollution

California continues setting the pace in the clean economy and is reaping tangible economic and environmental benefits from doing so. These are two of the key takeaways from a report released today by Next 10, which found that clean technology is fueling the state’s economic rebound and driving its efforts to cut climate pollution.

The 2012 California Green Innovation Index compiled by Collaborative Economics is the fourth annual report that tracks the “economic impacts of policies that help reduce state carbon emissions.” California’s Global Warming Solutions Act (AB 32) was among the policies cited as helping to drive the state’s economic growth.

According to the report, clean tech investments in California rose 24% between 2010 and 2011 to $3.5 billion. This represents 57% of all the venture capital (VC) funding in the country and 40% in the world. Additionally, California clean tech companies filed the most patents: 910 between 2008 and 2010. New York came in a distant second with companies filing 475.

Our solar industry did exceptionally well, attracting $1.2 billion, 62% of all U.S. VC funding in 2011. In part because of this investment, the Golden State reached a major milestone by installing 1,000 megawatts of solar capacity. Only five other countries in the world have hit this mark. Between January 1995 and January 2010, 1,503 solar businesses were founded here, an increase of 171%.

While this economic news is impressive, equally important were findings related to the environmental benefit: climate pollution fell even as the state’s population was rapidly expanding. By 2009, for every dollar of gross domestic product (GDP), California was producing 28% less carbon emissions than it did in 1990. These reductions happened as the population grew by 8 million residents. Specifically, since 1990, California’s per capita GDP expanded 16% while carbon emissions per capita fell. This is particularly encouraging as California prepares to launch a carbon market that will limit overall pollution in the state to 1990 levels by 2020.

This latest report further demonstrates that environmental policies lead to economic growth. We wholeheartedly agree with Doug Henton, CEO of Collaborative Economics, who said that by “setting the market rather than chasing it,” California’s leadership is “paying off in the form of investment, innovation, and growth.”

Posted in General / Comments are closed

Strong Clean Air Standards For Natural Gas Leaks A Trifecta For America

Yesterday, the Environmental Protection Agency finalized important clean air measures to reduce harmful pollutants discharged from a variety of oil and natural gas activities.  Leaks, venting and flaring of natural gas from oil and gas activities contribute to ground-level ozone (“smog”), toxic air pollution such as benzene, and destabilizes the climate.  The limited federal standards that existed prior to these clean air measures covered only natural gas processing plants, and were most recently updated in part 13 years ago; other aspects of the air standards for the oil and gas industry are more than a quarter-century old.

These standards represent an important first step toward fulfilling the President’s commitment, in his State of the Union Address, to develop natural gas responsibly: “We have a supply of natural gas that can last America nearly 100 years.  (Applause.)  And my administration will take every possible action to safely develop this energy . . . . Because America will develop this resource without putting the health and safety of our citizens at risk.” (emphasis added) http://www.whitehouse.gov/the-press-office/2012/01/24/remarks-president-state-union-address

Likewise, at the President’s direction, Secretary of Energy, Steven Chu convened the Secretary of Energy Advisory Board (SEAB) Natural Gas Subcommittee, which included a diverse array of members with experience in the industry, government, and non-profit sectors.  The Subcommittee was tasked with identifying “immediate steps that can be taken to improve the safety and environmental performance of fracking and to develop, within six months, consensus recommended advice to the agencies on practices for shale extraction to ensure the protection of public health and the environment.” In its 90-day Report, the Subcommittee noted that it “supports adoption of emission standards for both new and existing sources for methane, air toxics, ozone-forming pollutants, and other major airborne contaminants resulting from natural gas exploration, production, transportation and distribution activities.”

Public health groups, including the American Lung Association, the American Thoracic Association, and others have support these common sense standards as these EPA clean air measures make important reductions in pollutants linked to asthma, cancer, and other illnesses.   In a recent letter to the President, these groups noted that “we see irrefutable evidence of serious damage to human health from air pollutants emitted during oil and natural gas production, including sulfur dioxide, nitrogen oxide, and volatile organic compounds (VOCs), including air toxics such as benzene and formaldehyde, as well as increasing levels of ozone and particulate matter.”  As a result, the groups urged that “[t]he standards must be strengthened to keep up with the expansions and the new technology in the oil and gas industry.”    

EPA’s clean air measures achieve these health protective reductions by, in many cases, plugging leaks across the system.  One of the key protections under these national emission standards is the requirement to perform a reduced emission completion or “green completion.”  This, along with other standards in the rule, will reduce ozone-forming volatile organic compounds by an estimated 190,000 to 290,000 tons; reduce hazardous air pollutants like benzene by an estimated 12,000 to 20.000 tons; and reduce methane, a potent climate forcer by an estimated 1.0 to 1.7 million short tons [about 19 to 33 million tons of CO2 equivalent]. This results in saving both a domestic energy resource and saving producers money.  In fact, EPA estimates that the combined rules will yield a cost savings of $11 to $19 million in 2015, because the value of natural gas and condensate that will be recovered and sold will offset costs.

These common sense clean air measures are a win-win-win for a healthier environment, for our economy and for our energy security.  While there are additional opportunities remain to encourage safe, clean development of natural gas, EPA’s clean air measures are an important first step along this path.

Posted in Natural Gas / Read 9 Responses

What Will It Take To Get Sustained Benefits From Natural Gas?

Natural gas is reshaping our energy landscape. Though the potential energy security and economic benefits are compelling, the challenge is that natural gas comes with its own set of risks to public health and the environment, including exposure to toxic chemicals and waste products, faulty well construction and design, local and regional air quality issues and land use and community impacts.

There has also been much confusion about the impacts of increased natural gas use on the climate.  While natural gas burns cleaner than other fossil fuels when combusted, methane leakage from the production and transportation of natural gas has the potential to remove some or all of those benefits, depending on the leakage rate.  Methane is the main ingredient in natural gas and a greenhouse gas (GHG) pollutant many times more potent than carbon dioxide (CO2), the principal contributor to man-made climate change.

Proceedings of the National Academy of Sciences (PNAS) Paper

EDF has teamed up with several respected scientists to find a better way to examine the climatic impacts of increased use of natural gas and compare it in place of other fossil fuels in a paper titled “Greater Focus Needed on Methane Leakage from Natural Gas Infrastructure” published yesterday in the Proceedings of the National Academy of Sciences (PNAS).  While methane absorbs more heat energy than CO2, making it a much more potent GHG, it also – luckily – has a shorter duration in the atmosphere.  The combination of these factors makes it difficult to compare methane emissions to other GHGs using conventional methods.

Instead, in the PNAS paper, we propose the use of an enhanced scientific method: Technology Warming Potentials (TWPs).  Specifically, this approach reveals the inherent climatic trade-offs of different policy and investment choices involving electricity and transportation.  It illustrates the importance of accounting for methane leakage across the value chain of natural gas (i.e. production, processing and delivery) when considering fuel-switching scenarios from gasoline, diesel fuel and coal to natural gas.  TWPs allow researchers, policy makers and business leaders to make fuel and technology choices while better accounting for their climate impacts.

PNAS Paper Key Findings

We illustrated the new approach by analyzing commonly discussed policy options.  Using the Environmental Protection Agency’s (EPA) best available estimated leakage rate of 2.1% of gas produced (through long-distance transmission pipelines but excluding local distribution pipelines), generating electricity from natural gas in new combined cycle power plants decreases our contribution to climate change, compared to new coal-fired plants.  This is true as long as methane leakage rates stay under 3.2%.

Natural gas powered cars, in contrast, do not reduce climate impacts unless leakage rates are reduced to 1.6% (compared to our estimate of current “well-to-wheels” leakage of 3.0%).  In heavy trucks, the reduction would need to be even more pronounced—converting a fleet of heavy duty trucks to natural gas damages the climate unless leakage is reduced below 1.0%.

The PNAS paper only provides illustrative calculations with EPA’s current estimate of the methane leakage rate and better data is needed to more accurately determine leak rates.  Measuring how much gas is lost to the atmosphere and where the leaks are occurring will help to further target leak reduction opportunities to ensure that natural gas will help mitigate climate change.  EDF is working to obtain extensive empirical data on methane released to the atmosphere across the natural gas supply chain, since the climatic bottom line of fuel switching scenarios involving natural gas is very sensitive to this parameter.

Not only is the data on methane leakage far from definitive, but climate impacts from leakage – and other key public health and environmental risks – could be reduced by strong standards and improved industry practices.  There are many practices and technologies already being used in states such as Colorado and Wyoming, and elsewhere by natural gas companies to reduce gas losses, which results in greater recovery and sale of natural gas, and thus increased economic gains. The return on the initial investment for many of these practices is sometimes as short as a few months and almost always less than two years.  In these tough economic times, it would seem wise to eliminate waste, save money and reduce environmental impact.

In sum, the paper’s results suggest that methane leakage rates matter: they can materially affect the relative climate impacts of natural gas over coal and oil.  While the paper does not draw hard and fast conclusions about the future implications of fuel switching, it does provide guidance in terms of the leak rates necessary for fuel switching to produce climate benefits at all points in time.

EDF Methane Leakage Model

We also released a new methane leakage model, based on the science described in the PNAS paper, which allows anyone to test a range of scenarios to quantify the climate benefits, or damages, of natural gas production and usage given specific methane leakage rates.  Users can vary the key system attributes independently to see how they affect net radiative forcing (the primary index used to quantify the effect of greenhouse gases [GHGs] on global temperatures) from U.S. emissions over time.  Visit http://www.edf.org/methaneleakage to plug in different variables and observe the outcome.

For more information, visit http://www.edf.org/methaneleakage.

Posted in Methane, Natural Gas / Read 1 Response

General Motors Reposts EDF, Revokes The Heartland Institute

(Source: www.inhabitat.com)

Did EDF’s own Jamie Fine and Colin Meehan have a little influence on General Motors (GM)? Perhaps? Just a few days after GM reposted on their website a blog written by Jamie and Colin on the EDF Energy Exchange explaining the Chevy Volt’s brief production suspension and emphasizing it is not a reason to worry about the future of electric vehicles (EVs), GM decides to change course on climate change. Whereas once they were a denier by proxy, they have now seen the light. On Friday, GM announced they are pulling funding from the climate-denial group the Heartland Institute, an industry front group with contributors like Charles Koch and the U.S. Chamber of Commerce.

This announcement came after GM’s CEO Dan Akerson gave a speech last month stating that they are operating under the assumption that climate change is happening. This new messaging for GM is now consistent with their advances in alternative auto technologies such as the Volt. It would be difficult for many consumers to choose the Volt while wondering why GM takes those dollars – $45,000 over the last 3 years including 2012 – and funds active climate deniers like the Heartland Institute.

As we told you a few weeks ago, the recent pause in production of the Volt is not a reason to worry. Despite not reaching their rather optimistic sales projections, the Chevy Volt and Nissan Leaf are actually beating the sales history of their hybrid cousins. When the Toyota Prius and Honda Insight were offered as the first commercially available hybrids in 2000, only 9,350 cars were sold. The Prius is now among the best selling cars in the U.S. with over 2 million vehicles on the road. Meanwhile just last Friday, GM announced that record Volt sales in March are reportedly leading them to consider ramping up production. Change takes time and if the Volt is already outpacing its hybrid competitors, we can potentially expect millions of Volts on the road in the next decade. But you wouldn’t believe that if you listened to the naysayers.

Maybe after being on the receiving end of faux alarmists – who are all too excited to write the obituary for “Government Motors” and a fossil free future – GM is rethinking its support for groups that ignore the truth and distort facts just the same.

Posted in Climate, Electric Vehicles / Comments are closed

EDF Climate Corps Trains The Next Generation Of Leaders At Tribal Colleges And Universities

By: Chaprece Henry, EDF Energy Efficiency Research Associate, and David Fox, EDF Energy Efficiency Coordinator

Last week, students from Tribal Colleges and Universities (TCUs) attended the 31st Annual Student Conference featuring EDF’s Climate Corps team, hosted by the American Indian Higher Education Consortium (AIHEC) and NASA Innovations in Climate Education (NICE). The conference, held in Rapid City, South Dakota, attracted students from schools across the Great Plains and Midwest, including the College of Menominee Nation in Wisconsin, Salish Kootenai College in Montana and Haskell Indian Nations University in Kansas.

Chaprece Henry and David Fox represented EDF Climate Corps at the conference by holding an energy efficiency training session focusing on no cost and low cost energy efficiency solutions for college campuses. About 20 students and five faculty members attended the session representing a range of academic sectors, including environmental science, renewable energy and engineering. Participants learned the ins and outs of energy efficiency from thermostat setbacks to lighting and heating upgrades to quantitative energy analyses. Everyone took home a certificate of completion, packet of energy assessment training materials and a flash drive containing financial analysis tools.

 What’s most exciting is the impact these students and faculty members will have their newly gained learnings and tools. Students will return to their respective TCUs to perform energy assessments and make the business case for energy efficiency, while faculty members plan to integrate energy efficiency into curriculums.

Reflecting on the training, Andi Geyer, Educational Program Manager at NICE, said, “I think this session had a really big impact on the American Indian students that participated. They are already attuned to the environment and the changes that are happening around them and are actively looking for ways to help.”

The training by EDF Climate Corps will have huge impacts for TCUs, as many of them are underfunded. Future energy efficiency projects spearheaded by students and faculty will not only generate energy savings to free up resources needed elsewhere, but also reduce energy consumption and carbon emissions.

EDF Climate Corps (edfclimatecorps.org) places specially trained MBA and MPA students in companies, cities and universities to build the business case for energy efficiency. EDF Climate Corps fellows analyze energy-saving opportunities and develop custom energy efficiency investment plans that cut costs and carbon emissions. If you would like to host an EDF Climate Corps fellow at your school, please contact Chaprece Henry at chenry@edf.org or visit edfclimatecorps.org for more information.     

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