Energy Exchange

Hawaii Passes Bill To Democratize Clean Energy

Last week, Hawaii passed a landmark bill, SB 1087, which will allow the state to create and issue a “Green Infrastructure Bond.”  This bond structure will secure low-cost financing for a variety of clean energy installations, with a focus on reaching populations that cannot afford or do not have access to these energy saving improvements today.  The bond proceeds will be used to fund an on-bill program currently under development at the Hawaii Public Utilities Commission (PUC).  The on-bill program, which is very much in line with EDF’s recommendations for on-bill repayment (OBR), will provide access to low-cost financing for clean energy projects for residential and small commercial customers.

The bill’s intent is to use this low-cost capital to expand access to affordable clean energy for all of Hawaii’s consumers, acknowledging that “Existing programs and incentives do not serve the entire spectrum of the customer market, particularly those customers who lack access to capital or who cannot afford the large upfront costs required-thus creating an underserved market.”  Funding projects with a focus on serving populations that do not have access to other means of financing is especially important in the Aloha State, where electricity rates are the highest in the nation.

The state will issue the bonds and then repay bondholders with funds collected from a utility surcharge, providing a secure form of repayment.  The framework enables a portion of the existing Public Benefits Fee (PBF), currently charged to customers, to be redirected so that overall customer bills are not expected to increase. Read More »

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This Green Building Sets A High Bar For The Rest Of America

Source: Miller Hull Partnership

On Earth Day this year, The Bullitt Center opened its doors in Seattle, Washington.  The six-story building is being hailed as the greenest commercial building in the world.  Its specs are very impressive indeed, including:

  • 56,000-gallon cistern for rainwater collection;
  • Solar photovoltaic (PV) panels on the roof that are estimated to generate 230,000 kilowatt-hours per year;
  • Glass panels to showcase the engineering, including quick response codes to allow visitors to use their smartphones to find out more;
  • Real-time measurements of the building’s indoor air quality, energy conservation, PV production and water levels;
  • A mini-weather station that sends data to the building so that it can make adjustments to maximize tenant comfort and energy conservation; and
  • Measurement of energy use down to the individual socket.

The Bullitt Center aims to be certified through the Living Building Challenge, a rigorous set of standards that requires the building to meet complete water and energy self-sufficiency.  The Living Building Challenge has registered nearly 150 projects in 10 countries, but only three buildings have been certified in the US (in Missouri, New York and Hawaii).  It has been endorsed by the US Green Building Council (USGBC), originator of the Leadership in Energy and Environmental Design (LEED) standard, and is not meant to be a competition, rather a challenge to architects and engineers to aim even higher in their sustainable design efforts.

The Bullitt Center is a project of the Bullitt Foundation, and its leaders state that if the building is still the highest-performing office building in ten years, then they have failed.  They want to demonstrate that a building can be both self-sustaining and commercially viable and to serve as an example for others to learn and innovate beyond what they’ve done. Read More »

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The Oil And Gas Industry’s Assault On Renewable Energy

This commentary was originally posted on our EDF Voices blog.

Source: ali_pk/flickr

Renewable energy enjoyed a record year in 2012 – the U.S. wind industry surpassed 50,000 megawatts of electrical power generation capacity and solar proved once again to be the fastest growing energy source in the United States. That’s a milestone worth celebrating, since greater use of clean, homegrown energy resources creates jobs, cuts foreign oil imports, stabilizes prices, makes our system more resilient and reduces harmful pollution. The list of benefits is vast. So who could possibly be upset?

Well, some utilities that own old and often dirty fossil fuel power plants are upset that renewables are making it harder for their older, polluting units to stay in business. Then there are oil and gas industry association leaders like American Petroleum Institute (API) president Jack Gerard, who often talk about wanting a “level playing field” – implying that policies promoting renewable energy are unfair to fossil fuels.

Don’t be fooled. Renewable investments pale in comparison to the amount of money poured into fossil fuel companies since 1918 to fatten their bottom lines and crowd out competition. Fossil fuels have received around 75 times more subsidies than clean energy. Up to 2011 (adjusted for inflation), the oil and gas industry received $446.96 billion in cumulative energy subsidies from 1994 to 2009, whereas renewable energy sources received just $5.93 billion. An industry that has been enjoying federal tax subsidies for over a century has no standing to argue for a level playing field.

Heavily subsidized fossil fuels may have made sense 100 years ago, when we were racing to build the energy infrastructure of the last century. But today we’re racing to build the clean energy infrastructure of the new century — and we need to support a new set of industries. And we’re making real progress.

So it is no surprise that we are seeing a well-funded, industry-backed effort to roll back the policies that have been so successful in developing and deploying renewables. Take, for example, the latest assault on a series of state laws around the country that have increased the amount of clean, renewable energy these states produce.

Front Groups do the Dirty Work for Oil and Gas Industry

So far, 29 states have implemented Renewable Portfolio Standards (RPS) programs that require increased production of energy from renewable sources such as solar, wind, geothermal and biomass. They’ve been adopted in red states and blue – from California to Texas to Maine – through democratic processes and with popular support. RPS programs have helped jumpstart an industry that is spurring economic development, creating American jobs, boosting energy independence and cutting our carbon footprint.

A Bloomberg article released last week details how the oil and gas industry, through some self-described free market organizations that they fund, are trying to engineer a legislative massacre of these policies in more than a dozen states.

The groups may sound familiar: American Legislative Exchange Council (ALEC), which is currently pushing legislation around the country that would mandate the teaching of climate change denial in public school systems, and The Heartland Institute, which ran a billboard campaign last year comparing global warming “admitters” to Osama bin Laden and Charles Manson. Both have long opposed sensible energy policies. And their funders will sound familiar, too: the oil, gas and coal industries and their owners like the Koch Brothers.

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Looking For User-Friendly Data On The Real Benefits Of Energy Efficiency? Try REED

Earlier this month, the U.S. Department of Energy (DOE) announced the Regional Energy Efficiency Database (REED), a user-friendly tool to engage policymakers, customers and industry on the real benefits of energy efficiency. With the support of the DOE, the Northeast Energy Efficiency Partnership (NEEP) created the regional database to create consistent protocols for energy efficiency in Connecticut, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island and Vermont, with Delaware and the District of Columbia to be added later this year. NEEP’s Regional Evaluation Measurement and Verification Forum (EM&V Forum) will then use these protocols to evaluate and measure the results of each participating states’ energy efficiency programs.  

Back in 2010, the EM&V Forum adopted standard guidelines for reporting, and as a result, has been able to develop this database that not only allows users to visually see the benefits of energy efficiency within a state, but also compare them in a meaningful way against other states in the region.  Think of it as a little energy efficiency competition amongst neighbors.

The Northeast region has a robust energy efficiency partnership and network, the Regional Greenhouse Gas Initiative (RGGI), which caps power plants emissions and higher electricity costs than most other regions in the country, all of which incentivizes energy efficiency. By accurate monitoring and verifying energy usage using the EM&V Forum, policymakers can determine which programs are the most impactful, from both and economic and environmental perspective, which ensures consumers that their tax dollars are providing tangible benefits.

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


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.

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A Clean Energy Paradise In The Pacific

When people think Hawaiian paradise, usually beaches, sun and trade winds come to mind. The price of energy? Not so much.

The state actually has the highest electric rates in the nation, approximately 2 to 3 times higher than the average price on the mainland. Given these high rates and the relatively mild climate, it makes sense that Hawaii’s customers are among the lowest monthly consumers of electricity at 585 kWh per month. However, despite low energy use, Hawaii’s customers still have the highest electric bills in the nation, at a whopping $203 per month on average. That’s 20 percent higher than the next highest state’s average bill!

It’s appropriate, then, that the Aloha State is on the forefront of policy measures intended to lower energy bills by looking to energy efficiency and renewable energy. Hawaii’s sunny days, coupled with its extraordinarily high cost of electricity, make going solar a relatively attractive option. And, not to mention, a much cleaner option given that the state relies on petroleum to generate over 75 percent of its electricity. In fact, Hawaii ranks third in the nation for total installed solar electric capacity per capita. However, the upfront cost of installation remains a significant barrier to widespread adoption of clean energy technologies. Access to financing is limited to those with stellar credit, and there is little incentive for renters to pay for energy upgrades to properties they don’t own. In Hawaii, solutions that work for renters are especially important since over 40 percent of the state’s residents rent.

But all is not lost. On February 1st, the Hawaii Public Utilities Commission (PUC) delivered a blueprint of a promising on-bill program to help residents and small commercial customers — including renters — invest in cost-saving, clean energy projects. By allowing for repayment of private financing for energy efficiency and renewable projects on customers’ monthly utility bills, Hawaii would be the first-in-the-nation to offer a statewide residential and small commercial on-bill program. The program works for renters and property owners because the energy benefits and the repayment obligation transfer from tenant to tenant with the property, enabling customers to invest in projects that outlast their terms of occupancy. Read More »

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