Energy Exchange

North Dakota Steps Up to Curtail Wasteful Flaring, But Will it be Enough?

rp_NatlGasFlares_142558250_Photos-RF-300x197.jpgEveryone agrees that burning off as much as a third of the natural gas produced in North Dakota is a terrible waste of an important natural resource. The flaring problem arises out of the fact that energy companies are primarily drilling for oil in North Dakota.  A lot of natural gas comes out of those very same wells, though; and since the infrastructure isn’t in place to take that gas to market, companies end up flaring gas as a “waste” byproduct of oil production.

This isn’t a problem that can be fixed overnight.  Building the gathering systems, processing capacity and transmission pipelines to get this gas to market requires major planning and investment.  But we also have to recognize that in a capital-constrained world, the incentive is for companies to put their next dollar toward the next oil well – not toward lower-return (but still lucrative) investments in gas infrastructure.  If a company’s bottom line was all that mattered, that might be fine.  But we have other issues at play here.

Flaring natural gas undermines national energy security, has negative impacts on the region’s air quality, results in unnecessary greenhouse gas emissions and represents millions of dollars of lost revenue for the state, local governments, schools and mineral estate owners. In fact, in 2012 alone, flaring resulted in the waste of around $1 billion in fuel – or enough gas to heat more than a million homes.

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Also posted in Natural Gas / Tagged , , | Read 1 Response

Methane leaks need to be a thing of the past, and Sacramento is taking a step in the right direction with SB 1371

California has more than 100,000 miles of often-aging natural gas transmission and distribution infrastructure.   Methane, the primary component of natural gas, when vented or allowed to leak into the air is 84 times more potent than carbon dioxide at contributing to climate change over a 20-year timespan.  In addition, according to data from the Intergovernmental Panel on Climate Change, more than one-third of today’s human-caused global warming comes from short-lived climate pollutants that include methane. Taken together, this data shows how critically important it is to minimize natural gas leaks quickly.

Senate Bill (SB) 1371, authored by California State Senator Mark Leno, aims to cut methane pollution from California’s gas transmission and distribution system by requiring the Public Utilities Commission to get more aggressive in requiring utilities to find and fix natural gas leaks.  Yesterday, SB 1371 passed a critical vote in the State Assembly and is well on its way toward final passage later this summer. 

What does SB 1371 do?  Put simply, SB 1371 changes the way utilities respond to natural gas leaks.  Read More »

Also posted in California, Clean Energy, Climate, Methane, State / Comments are closed

Texas Wind Energy Continues to Blow Us Away

Source: katsrcool/Flickr

Source: katsrcool/Flickr

We have a lot to celebrate this Global Wind Day (June 15). Across the nation, wind energy accounted for almost one-third of new power capacity over the past five years and the American Wind Energy Association (AWEA) estimates that wind energy has the potential to double over the next few years.

Nowhere is the growth in wind energy more evident than in Texas, the nation’s top wind producing state. Texas’ wind energy generation grew by 13% in 2013 and more than 60% of all wind projects under construction in the first part of the year were in Texas.

This success has been aided by the Renewable Energy Production Tax Credit (PTC), a modest tax credit for new facilities good for ten years after the wind farm’s start date. Like those received by the oil, gas, and nuclear industries, tax incentives help ignite growth in the market. EDF has strongly advocated for this incentive over the past few years.

Unfortunately, the breaks that oil and gas have received over the last 100 years are often (conveniently) ignored by those wanting to maintain the status quo, making the PTC a point of debate among politicians. Read More »

Also posted in Clean Energy, Climate, Renewable Energy / Comments are closed

The United States Supreme Court Hears the Other Side of the Story on California’s Cleaner Fuels Policy

rp_OCONNOR-PHOTO-MAY-20121-200x300.jpgYesterday, the Environmental Defense Fund, the Natural Resources Defense Council, the Sierra Club and the Conservation Law Foundation filed a brief in opposition to March 2014 petitions for Supreme Court review in American Fuel & Petrochemical Manufacturers Association v. Corey and Rocky Mountain Farmers Union v. Corey, cases in which oil and ethanol companies attack the constitutionality of California’s Low Carbon Fuel Standard (LCFS).

The LCFS, adopted under California’s trail blazing Global Warming Solutions Act, is a central contributor in the effort to move the transportation system away from the current paradigm of unsustainable global warming pollution, foreign energy dependence, and community-choking air pollution. The LCFS works by putting market incentives in place that encourage the production and use of low carbon fuels that were not prevalent when the program went into effect. It is projected to reduce greenhouse gas emissions from California’s use of transportation fuels by 16 million metric tons per year by 2020.

As we have explained in prior posts here and here about this important case, the challengers in the litigation have argued that the LCFS discriminates against ethanol and oil coming from outside of California and that it attempts to regulate actions occurring outside the state in violation of the U.S. Constitution’s Dormant Commerce Clause. A panel of the United States Court of Appeals for the Ninth Circuit rejected these arguments in September 2013. In their March 2014 petitions, the industry challengers seek Supreme Court review of the appeals court’s decision. The Supreme Court’s decision on whether to take the case could come as early as late June. Read More »

Posted in General / Comments are closed

New Study: California Climate Law Cuts Billions in Health, Pollution Costs

rp_OCONNOR-PHOTO-MAY-20121-200x300.jpgCalifornia drivers don’t have much choice when it comes to what fuel they fill their cars with, or how dirty it is. As recently as five years ago, nearly 97 percent of the energy used for transportation in the Golden State came from gas and diesel – over half of which was made from imported oil.

This basic lack of consumer choice means that California drivers like myself are stuck with a high-priced product that is made from dirty crude and controlled by a few major multinational oil companies.

What’s more, our transportation system has a direct effect on our health – in addition to contributing to climate change and energy insecurity.

And it’s not a pretty picture.

A study just out from the Environmental Defense Fund and the American Lung Association, with modeling by Tetra Tech, finds that the negative impacts of California’s transportation system cost us a staggering $25 billion per year. It also shows that the benefits of policies aimed at supporting the use of cleaner fuels can significantly reduce such costs.

25 million drivers, worst air pollution in the U.S.

I’m probably similar to many other drivers around here. Last year I drove some 15,000 miles, paying about $2,400 for gas – a sizeable portion of my disposable income. This gas is always more expensive in the summer than in winter, and it won’t matter if I fill up my car at the Shell station on the corner or from Chevron at the freeway on-ramp.

My 15,000 miles of driving last year released about 5 tons of greenhouse gas pollution and other air contaminants. When combined with the pollution released from California’s other 25 million drivers, I have, unfortunately, helped give California the nation’s worst air pollution.

Not only is our state home to the top five most polluted cities in the United States, but countless Californians suffer from lung and heart problems, and even risk early death, from pollution-related health impacts cause by transportation. Read More »

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Clean Energy Conferences Roundup: May 2014

Source: National Retail Federation Flickr

Source: National Retail Federation Flickr

Each month, the Energy Exchange rounds up a list of top clean energy conferences around the country. Our list includes conferences at which experts from the EDF Clean Energy Program will be speaking, plus additional events that we think our readers may benefit from marking on their calendars.

Top clean energy conferences featuring EDF experts in May:

May 11-13: 2014 American Council for an Energy-Efficient Economy Energy Efficiency Finance Forum, Washington, DC

Speaker: Brad Copithorne, Financial Policy Director

  • Designed specifically for investors, financiers, utilities, and policymakers, the Energy Efficiency Finance Forum will explore the latest opportunities in financing and investing in energy efficiency. Over the past seven years, the conference has grown to become one of the premier venues for discussions of energy efficiency financing policies, and an important networking opportunity. Read More »
Also posted in Conference Roundup / Comments are closed