Energy Exchange

Environmental Accomplishments And Missed Opportunities From The 83rd Texas Legislative Session

By EDF Blogs / Published: May 31, 2013

This blog post is co-authored by Marita Mirzatuny and Kate Zerrenner.

In addition to passing tax cuts and making pecan pie the official state pie of Texas, the 83rd Legislature heard numerous energy-related bills.  As a solution to our Texas Energy Crunch efforts, EDF supported 13 bills that would have provided relief to Texas’ resource adequacy problems; in other words, the issues Texas faces as a result of increasing energy demand, scorching temperatures and a record drought.  Among those bills (which we review on page 13 of our ‘State of the Texas Energy Crunch’ report) are a few, highlighted below, that made some – albeit not enough – progress.

Energy Legislation

A big success this session was the passage of Senate Bill (SB) 385 by Chairman John Carona.  SB 385, or the Property Assessed Clean Energy (PACE) bill, clears some of the hurdles that prohibit commercial and industrial properties from taking advantage of new financing for energy improvements.  PACE allows property owners to pay for water and energy efficiency upgrades or renewable energy improvements with loans, which are then repaid through an annual charge on their property tax bill.  For more on this legislation, please see our recent blog post covering PACE in Texas.

Chairman Carona’s demand response bill, SB 1351, passed and was referred to State Affairs in the House.  Demand response (DR) initiatives allow customers to voluntarily reduce peak electricity use and receive a payment for doing so in response to a signal from their utilities.  Additionally, Chairman Rafael Anchía introduced the companion bill, House Bill (HB) 2194.  HB 2194 allows for customer, or demand-side resources (DSR), from “residential, commercial, and industrial customers to participate in all energy markets” and specifies that DSR “must be designed and implemented in a manner to increase market efficiency, competition, and customer benefits.” This bill clears the way for demand response, renewable energy, and energy efficiency to become important players in the market.

SB 1280, by Senator Kirk Watson, passed out of the Business and Commerce Committee with a seven to two vote.  This bill, regarding Texas’ reserve margin for the electric grid, requires that power regions (such as the Electric Reliability Council of Texas, or ERCOT) estimate the available generation at any given time, the expected peak demand (demand at the hottest part of the day when the most energy is being used) and the amount of reserve energy needed to ensure a reliable electricity supply.  SB 1280 also directs the use of voluntary load participation programs (think demand response) with at least 20 percent of peak energy demand coming from each of the residential, commercial and industrial sectors.

Senator José Rodríguez’s net metering bill, SB 1239, successfully passed out of the Business and Commerce committee.  Texas is one of only seven states where customers are not guaranteed fair compensation for the electricity they provide to the grid.  SB 1239 clarifies that all retail electric providers, municipal utilities and cooperatives must buy back extra electricity from residential customers along with churches and schools at a reasonable, market-based value.  For example, Los Angeles implemented the largest solar buyback program in the nation earlier this year, paying customers 17 cents a kilowatt hour for excess energy produced.

In the House, HB 303 by Representative Eddie Rodriguez called for a new renewable energy goal – to supply 35 percent of energy demand with clean energy by 2020, with at least two percent coming from solar.  This marks an important precedent for the clean energy standards introduced in state legislatures around the country.  Additionally, Representative Rafael Anchía authored HB 2196, a bill that addresses payments to customers for renewable energy and other demand-side contributions to the electric grid.

While it’s great that some of the bills gained some traction, only SB 385 made its way to the Governor’s desk.  With a hotter than average summer approaching, possibly worse than 2011, electric reliability is not a guarantee and these bills would have provided solutions to help address our energy issues.  Already Texas is receiving national attention for our impeding energy shortages.

Source: www.lavacacountytaxpayers.org

Water Legislation

At the last minute, the House and Senate, after much back door negotiating and out front wrangling, approved a plan to fund the State Water Plan.  HB 4, by Chairman Allan Ritter, set up two funding accounts to pay for water projects.  These accounts must be approved by voters, because the bills would amend Texas’ Constitution to allow the plan to be initially funded with a portion of the Rainy Day Fund. Read More »

Posted in Demand Response, Energy Efficiency, Renewable Energy, Texas / Comments are closed

EDF Releases New Blog For All Our Expert Voices

By EDF Blogs / Published: May 29, 2013

Environmental Defense Fund’s new flagship blog collects stories, ideas and arguments from all of our EDF expert voices in one place.

 

EDF’s Energy Exchange blog is where we discuss how to accelerate the transition to a clean, low-carbon energy economy. We keep you updated on the latest clean energy news and provide thoughtful analysis on the issues. However, we know you may have a broad interest in environmental issues.

That’s why we wanted to share with you Environmental Defense Fund’s new flagship blog, EDF Voices. EDF Voices collects stories, ideas and arguments from all of our EDF expert voices in one place. Our thought leaders use this space to weigh in on all sorts of environmental issues, from tips on how to convince people of the reality of climate change to reflections on how a businessman turned conservationist decided to leave a natural legacy for future generations.

We hope you like what you read on our new EDF Voices blog and become a subscriber.

 

 

Posted in General / Comments are closed

Heat Without Fire: Geothermal For A Cleaner, Sustainable Future In New York City

By EDF Blogs / Published: May 21, 2013

By: Mark Franks, EDF Energy Research Intern

Source: Achrnews.com

Hurricane Sandy proved that New York City’s energy system is not up to the challenges of the present day.  And, as we have highlighted before, the city faces some major challenges to reducing dangerous air pollution caused by heavy heating fuels.  One promising solution seeking to significantly reduce NYC’s carbon footprint, improve air quality, and increase grid resiliency during storms is geothermal heat pumps.

The U.S. Environmental Protection Agency (EPA) has called ground source heat pumps the “most energy-efficient, environmentally clean, and cost-effective space conditioning systems available.”  Geothermal heat pumps or exchangers, also known as geo-exchange, require no fossil-fuel burning on-site, use 70 percent of their energy from Earth’s renewable sources and are, on average, nearly 50 percent more efficient than gas furnaces.

Last month, I had the honor of watching NYC Mayor Bloomberg sign a bill tasking the New York City Office of Long-Term Planning & Sustainability to study geothermal energy resources and the feasibility of city-wide adoption of geothermal heating and cooling.  As Mayor Bloomberg’s sustainability leadership – in an official capacity at least – comes to an end, his plans to ensure that the city’s mission to find sustainable, cost-effective solutions to combat air pollution are well underway.  Though the geothermal heating and cooling bill is very important, it is only one aspect of the Mayor’s larger PlaNYC effort.

During his speech, Mayor Bloomberg remarked, “So what is geothermal anyway? I am having it installed in the new place I just bought and I know it works and how much it costs but nothing else.”  His words sum up the greatest challenge for geo-exchange yet – lack of awareness.  Geo-exchange technology needs our help to move it out of its prolonged infancy and into the mainstream. Read More »

Posted in Energy Efficiency, New York / Tagged , | Read 4 Responses

California Leading The Way To Clean Energy Innovation While A Few Lag Behind Investing In Litigation, Obstructionism

By EDF Blogs / Published: April 17, 2013


This commentary by Erica Morehouse, EDF Staff Attorney was originally posted on EDF’s California Dream 2.0 blog.

Climate pollution threatens the health of California’s families and the prosperity of our economy. Last November, California began a vitally important program that reduces climate pollution, rewards clean energy innovation, and helps ensure that the biggest emitters are responsible for their own pollution.

The program places a firm limit on overall climate pollution from the largest industrial emitters in California, allows flexible solutions to achieve that limit across sources, and requires major industrial emitters to bear a small portion of their pollution costs by requiring them to obtain carbon emissions allowances under the state’s cap-and-trade program, under which allowances may be obtained in public auctions or trades on the open market.

Fast forward five months, Californians are already realizing critical health and economic benefits from this groundbreaking environmental policy. And, the Golden State continues to lead the way in clean energy and transportation jobs due in large part to AB 32, which has opened the door for greater investment in the clean energy economy. More good news: Yesterday, the state fulfilled a requirement of 2012 AB 32 Legislation by releasing its blueprint for how to expand these benefits by investing proceeds from auctions to strengthen our economy, our health, and the environment.

California’s plan focuses on making key greenhouse gas reductions in three sectors: transportation, energy, and natural resources. The goal is to create multiplier effects that allow Californians to draw benefits from these opportunities that far outweigh the investment. And every day new research shows just how widely the benefits of clean economy investments can ripple. EPA recently released a study showing that if energy costs accounted for the health impacts of burning fossil fuels, they would increase by between $361 and $886.5 billion annually. When California invests in clean energy those hidden health benefits accrue for years to come – and they protect our families and our children.

Read More »

Posted in California, Energy Efficiency, Renewable Energy / Comments are closed

Lowering The Price Of Residential Solar Starts In The Neighborhood

By EDF Blogs / Published: April 11, 2013

By: Guest Blogger Scott A Robinson, University of Texas at Austin – Energy Systems Transformation Group 

Source: SolarCity

The price of solar panels has been decreasing rapidly in recent years. This decrease in price has been reflected in residential markets, with installation numbers booming. However, the total costs of the system remain high enough to discourage mainstream adoption of the technology—even in places like Texas, which have abundant solar resources.

From a customer’s viewpoint, there are two components of the cost of a solar photovoltaics (PV) system. The first is the “sticker price” of the system: the price you pay out of pocket. The second is information cost:  the time you must spend researching the technology to understand if it would be a good investment overall. This is a more difficult task for PV technology than it is for a new phone, or even a new car. The complexity of assessing solar PV creates a cost barrier on top of the reported price of the system.

To better understand these costs to consumers, and what can be done to decrease them, Dr. Varun Rai and I looked at data from PV owners across the state of Texas. We wanted to better understand the drivers behind the length of time people spent researching solar PV before deciding to buy. Our paper describing the results of the research, “Effective Information Channels for Reducing Costs of Environmentally-friendly Technologies: Evidence from Residential PV Markets”, was published last month in Environmental Research Letters (ERL). Read More »

Posted in Investor Confidence Project, Renewable Energy, Texas / Read 1 Response

Study Intends To Determine Methane Leakage Associated With A Growing Natural Gas Transportation Sector

By EDF Blogs / Published: March 4, 2013

This blog post was written by Jason Mathers, Senior Manager of EDF’s Corporate Partnerships Program.

Source: Waste Management

The use of natural gas to power our nation’s freight fleet vehicles is a hot topic in these days of rising diesel and falling natural gas prices. There are several reasons to be excited about this opportunity, including operating cost savings, use of a domestic fuel source, and the potential for a reduction in greenhouse gas (GHG) emissions compared to diesel heavy-duty trucks. However, significant concerns remain with the development of new gas supplies, including the threat of fugitive methane emissions from natural gas vehicles and the fuel supply chain.

Methane is the main ingredient in natural gas and a GHG pollutant many times more potent than carbon dioxide (CO2), the principal contributor to man-made climate change. Even small amounts of methane leakage across the natural gas supply chain can undermine the climate benefit of switching to natural gas from other fossil fuels for some period of time.

In a paper published last year, EDF scientists and other leading researchers examined the impact of potential fugitive emissions on the climate benefits of a switch from diesel to natural gas heavy-duty trucks. The study found that, according to the best available data, methane leak rates would need to be below 1% of gas produced in order to ensure that switching from diesel to natural gas produces climate benefits at all points in time. They also found that – using the EPA leakage rate estimates at that time – converting a fleet of heavy duty diesel vehicles to natural gas would result in increased climate warming for more than 250 years before any climate benefits were achieved.

EDF is working with leading researchers and companies in a series of studies designed to better understand and characterize the methane leak rate across the natural gas supply chain. The studies will take direct measurements at various points across the production, gathering and processing, long distance transmission and storage, local distribution, and transportation. The first study, led by researchers at the University of Texas, is measuring emissions from natural gas production. Results will be released in the coming months. Read More »

Posted in Climate, Methane, Natural Gas / Tagged , | Read 1 Response