Energy Exchange

This Oil Industry “Recycling” is bad for the Environment

rp_Tim-OConnor-Nov-2014-214x300.jpgEarlier this year in Oregon, as they did in California several years ago, the American Fuel and Petrochemical Manufacturers (AFPM), together with American Trucking Alliance (ATA) and Consumer Energy Alliance (CEA), filed a federal lawsuit to try and derail a cutting-edge, scientifically-based, and legally sound clean fuel standard. Not discouraged by their recent losses challenging California’s clean fuels program (the Low Carbon Fuel Standard, or LCFS) in the Ninth Circuit Court of Appeals and U.S. Supreme Court, the plaintiffs have proceeded with nearly identical constitutional law arguments – simply recycling issues and claims that were rejected many months ago.

Like the California LCFS, the Oregon Clean Fuels Program reduces the carbon intensity of transportation fuels by requiring fuel sold in state to have reduced lifecycle greenhouse gas (GHG) emissions. Compliance is based on the schedule developed by the Oregon Department of Environmental Protection and designed to spur innovation in the fuel sector, as the California Low Carbon Fuel Standard has already done. The fuels program itself does not choose a formula for carbon reduction, but allows the market to find the best path forward.

A significant portion of Oregon’s climate pollution comes from the use of gasoline and diesel in transportation, as it does in many other U.S. states, and it’s high time for Oregonians to have access to cleaner burning, lower carbon alternative fuels. Once in use, these alternatives not only cut climate pollution, they also deliver reduced emissions of multiple air contaminants that damage the health of the public while also improving energy security. In light of these substantial benefits to the people and economy of Oregon, on March 12, 2015, Governor Kate Brown signed a bill passed by the state legislature that removes the sunset date established in the 2009 law, allowing the Oregon Clean Fuels Program to move forward unimpeded. Read More »

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America’s Renewables: Increasingly the Low-Cost Option

By: Nancy E. Pfund, Managing Partner of DBL Investors, and Anand Chhabra, former Summer Associate at DBL Investors and current JD/MBA Candidate at Stanford University

https://www.flickr.com/photos/usdagov/7556615906/Does more renewable energy mean more expensive electricity? In the nation’s debate on energy, few questions are more important to American families and businesses.

Many critics of renewables allege skyrocketing electricity prices and economic crisis, owing to growing reliance on renewables. This commentary has emphasized “exploding electricity prices,” an “attack on any state’s economy,” and “gouging job creators and American families with higher electricity bills.”

Wait, what?

In our report, Renewables Are Driving Up Electricity Prices – Wait What?, we address this concern directly by assessing average retail electricity prices in the U.S., with a particular focus on whether states rely a lot or a little on renewables. What we discovered is that many of the fears espoused by critics of renewable energy are overblown. Read More »

Posted in Clean Energy, Electricity Pricing, Renewable Energy / Comments are closed

The Good, The Bad, and The Ugly When Oil Giants Shift to Natural Gas

14268938549_54fd0ea6c4_kSix large European oil and gas companies recently announced a commitment to engage on climate policy, calling for a price on carbon. The now-emerging picture of their coordinated corporate talking points, however, leaves no doubt that promotion of natural gas is a core part of the group’s position.

Is this development a beneficial push to help the planet transition to a low carbon economy – or just another marketing campaign? The truth, so far, lies somewhere in between.

Here are the good, the bad and the ugly highlights of what we’ve learned over the past week and what it all means. Read More »

Posted in Climate, Methane, Natural Gas / Comments are closed

Senate GOP Letter on EPA Methane Rule Misstates the Facts

A group of Republican Senators sent a letter to the White House yesterday questioning the administration’s plans to begin regulating methane emissions from the oil and gas sector. While EDF welcomes their engagement, the Senators’ characterization of the problem, their representation of emissions data, and their reference to research funded by EDF are flatly incorrect.

The facts are these: Methane is a potent greenhouse gas—packing 84 times the warming power of carbon dioxide over a 20-year timeframe. That means it’s a serious challenge, but also a huge opportunity to put the brakes on climate change quickly and cost-effectively. EPA’s latest inventory released in April estimates that in 2013, the oil and gas industry released more than 7.3 million metric tons of methane into the atmosphere from their operations—a three percent increase over 2012—making it the largest industrial source of methane pollution. That’s enough to meet the needs of 5 million households, and packs the same short-term climate punch as the CO2 emissions from more than 160 coal-fired power plants. Read More »

Posted in General, Methane, Natural Gas / Comments are closed

Residential Electricity Pricing in California: We Need an Overhaul, not a Tune-Up

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This post has been updated since its original publication on June 11th, 2015.

Here at Environmental Defense Fund (EDF), we love win-win solutions. This is why we’re big fans of time-of-use (TOU) electricity pricing (a type of time variant electricity pricing). As I’ve written before, TOU pricing better reflects the true cost of electricity, which fluctuates throughout the day. What’s more, it brings with it significant benefits for the environment, electric reliability, and people’s wallets. By empowering customers to better control their energy bills and reduce our reliance on fossil fuels, everyone wins with TOU pricing.

Thankfully, the California Public Utilities Commission (CPUC) included TOU pricing as one of the key elements in their plan to reform residential electricity rates. But how and what Californians pay for electricity – the best way to structure rates – is currently up for debate at the CPUC.

The CPUC issued its proposed decision on restructuring California’s residential rates and moving customers to TOU rates in the new structure, which EDF strongly supports as an evolutionary leap forward.  Subsequently, Commissioner Mike Florio issued an alternate proposed decision that nudges the current tiered rate system forward with a time-variation “adder.” Unfortunately, Florio’s alternate proposal amounts to more of a tune-up than the substantial overhaul required to prepare for a future grid that runs on carbon-free renewables, like wind and solar, and also powers our cars, trucks, trains, and boats.

Read More »

Posted in California, Clean Energy, Electricity Pricing, Renewable Energy, Time of Use / Read 2 Responses

What do Uber and Airbnb Have in Common with Clean Energy?

Airbnb_Uber‘Disruptive’ is a favorite word among entrepreneurs and innovators, but start-up companies like Airbnb and Uber truly have disrupted long-standing industries over the past few years. Beyond their youth and success, what further links these two companies as well as many others (such as Teespring, Postmates, Patreon, and Verbling), is the way they empower people.

Exemplified by Airbnb and Uber, among others, is a new kind of business model that is revolutionizing many sectors, including how we get our electricity. Just like hotel and taxi industries, these disruptive, decentralized trends are taking hold in energy – affording people more choice, enabling existing resources and technology, and empowering people to veer from the traditional provider of services. Moreover, they even allow some people to make money in ways that didn’t exist until recently. Read More »

Posted in Clean Energy, Electricity Pricing, Grid Modernization, Renewable Energy, Utility Business Models / Tagged | Comments are closed