Energy Exchange

The Social Cost of Stagnation: A Call for FERC Action

By EDF Blogs / Published: October 7, 2014

By: James T. B. Tripp, EDF Senior Counsel

America’s electricity industry – the single largest source of carbon pollution in the U.S. – is at the heart of some of the world’s biggest environmental challenges, especially climate change. Given this connection, you would think an agency called the Federal Energy Regulatory Commission (FERC) would take into account the major environmental consequences of its policies, which fundamentally shape the U.S. power industry. Sadly, you would be wrong.

FERC is charged by law with ensuring wholesale rates and other critical aspects of the electricity industry, such as transmission practices, are “just and reasonable.” Yet FERC’s official policy is to exclude environmental considerations from its regulation of the industry. Why? FERC’s reasoning is based on a combination of questionable statutory interpretation and an approach to energy regulation that is stuck in the past. In fact, FERC’s statutory mandate over wholesale electricity sales and transmission dates back to the 1930s, long before scientists discovered climate change. Read More »

Posted in Clean Energy, Climate / Tagged FERC | Comments are closed

Why EPA’s Press Release Doesn’t Reflect the Real Methane Emissions Numbers

By Mark Brownstein / Published: October 6, 2014

Source: Dan Lurie

At first glance, the Environmental Protection Agency’s Sept. 30 press release looked like a winner: Methane emissions from the oil and gas sector dropped by 12 percent in 2013, with a whopping 73-percent decline from hydraulically fractured natural gas wells making up the largest share of reductions.

The drop in methane emissions shows how effective regulation is in reducing air pollution from oil and gas production. It was led by an early phase of EPA’s air pollution rules, enacted in October 2012, with full implementation expected by January 2015. (Although this regulation targets emissions of volatile organic compounds, it has also reduced methane as a co-benefit.)

Except, the 73- percent decline is not the whole story. It only accounts for 2.3 percent of the total methane emissions reported to EPA’s Greenhouse Gas Reporting Program, leaving a large amount of tons on the table addressed.

Posted in Air Quality, Climate, Methane, Natural Gas / Tagged Greenhouse gas, Methane, Natural Gas | Read 1 Response

While Critics Debate Energiewende, Germany is Gaining a Global Advantage

By Peter Sopher / Published: October 6, 2014

Source: Frank M. Rafik

Economics is the focus of many debates surrounding Germany’s aggressive “energy transition” (or Energiewende), which plans to move the country to nearly 100 percent renewable energy by 2050. Critics say Energiewende’s costs are unjustifiable, arguing they hurt the country’s international competitiveness and systemic inefficiencies exacerbate these costs.

At first glance, it’s hard to argue with them. The scale of investment in Energiewende can seem intimidating: So far, Bloomberg New Energy Finance estimates the total cost of Germany’s clean energy expansion at €106 billion. Furthermore, the Wall Street Journal quotes government sources when predicting total costs through 2040 to be about €1 trillion.

By contrast, however, Germany’s annual investment in fossil fuels has been €90 billion; and, investments in Energiewende go into electric grid upgrades that would need to happen in Germany anyway, whereas fossil fuel investments leave the country.

When viewed in context, there are many reasons to believe investments in Energiewende will reap economy-wide rewards, giving Germany a competitive global advantage over other countries that lagged behind investing in the future.

Live Stream EDF’s Panel Discussions at SXSW Eco Oct. 6-8

By EDF Blogs / Published: October 5, 2014

SXSW Eco attracts a global community to explore, engage, and co-create solutions for a sustainable world. A uniquely inclusive platform for professionals, SXSW Eco examines the critical challenges of our times through a kaleidoscopic lens of design innovation, policy tipping points, technological breakthroughs, conservation practice, entrepreneurial spirit, and a culture of creativity to transform inspiration into action.

EDF will be there in full force, including participating in four panels (CST): Read More »

Posted in Clean Energy, Texas / Comments are closed

Report Finds Opportunity for Natural Gas Job Growth—But it’s not Where you Think

By Sean Wright / Published: October 3, 2014

In 1933, Milton Heath senior opened a small, family-run consulting firm to find leaks from natural gas pipelines by conducting vegetation surveys in New England Fields. More than 80 years later, the family business has grown substantially, and now the Texas-based company provides more than 1,200 manufacturing and service jobs across the country. Their business model may have changed—but their commitment to finding and reducing leaks of methane—a potent greenhouse gas—has not wavered.

Stories like Heath’s are the focus of a new report released this week by Datu Research. The Emerging U.S. Methane Mitigation Industry looks at the growing industry that specializes in manufacturing technologies and providing services that help oil and gas companies reduce their environmental impact and deliver a valuable product to market. The report analyzes more than 70 companies that limit emissions of methane and provide high-paying, highly skilled jobs to thousands across the country. These companies are part of an increasingly strong market growing amidst rising awareness of the need to reduce methane pollution alongside the domestic energy boom. Read More »

Posted in Methane, Natural Gas / Read 3 Responses

Texas Comptroller’s New Report Should Not Play Favorites

By Marita Mirzatuny / Published: October 3, 2014

Recently, the Texas Comptroller, Susan Combs, decided to come out swinging against renewable energy, specifically wind, in a report entitled Texas Power Challenge: Getting the Most From Your Energy Dollars. It would be easier to take this report seriously if it applied the same pressure and scrutiny to the oil, gas, and coal industries, which have received subsidies and incentives hand over fist. But, no, the attacks seem to focus only on renewables.

What’s worse is the Comptroller’s report is not based in fact. One of the main points of contention is the CREZ transmission lines that were built to ease the bottle-necked energy congestion in West Texas. Yes, this congestion was partly due to more wind energy on the power grid needing to make its way to cities in the East, but natural gas very much benefited from the added transmission lines as well. Even Railroad Commissioner Barry Smitherman, a Republican ally of Combs’, took her to task for this in a statement to the Texas Energy Report: Read More »

Posted in Clean Energy, Renewable Energy, Texas / Comments are closed