Energy Exchange

Wyoming Raises the Bar on Air Quality for Oil & Gas

By Jon Goldstein / Published: November 7, 2013

Source: Evolving ITSM

When it comes to willingness to show leadership in the critical field of air quality, Wyoming is once again first out of the gate with important new requirements to reduce harmful emissions from leaking oil and gas equipment — a major source of air pollution that can create serious air quality problems.

A Wyoming program finalized last week requires operators that are requesting permits for new and modified sources, such as wells or tanks, in the state’s most active oil and gas fields to find and fix leaking equipment under required Leak Detection and Repair (LDAR) programs.  Companies are required to inspect their operations quarterly utilizing reliable, technologically-precise detection methods at those sites most likely to leak.

This sort of leadership is not new to the Cowboy State. Wyoming has a tradition of being a first mover on air pollution reduction requirements, including pioneering the so-called “green completion” rules to reduce emissions from new wells that have since become the federal standard.

Wyoming’s LDAR program is a smart step forward on sensible, effective air quality regulations for the oil and gas industry. Tightening systems so that leaks are plugged will both protect the air we breathe and reduce the waste of a precious natural resource. In fact, strong LDAR programs may be the best, most cost-effective way to fix leaks and minimize pollution.

EDF, the Wyoming Outdoor Council (WOC) and Citizens United for Responsible Energy Development (CURED) offered their strong support for the state’s proposed LDAR program in joint comments, while also suggesting key improvements – chiefly, that the state  ensure these programs use readily-available, cost-effective technologies (like infrared cameras) to detect pollution.

We are pleased that this improvement was included in the final requirements and it shows the state’s willingness to work collaboratively in addressing Wyoming’s air issues.

Next up, the state should consider making these strong requirements apply to existing sources, such as previously drilled wells already in production, and on a statewide basis. But in the meantime, other states, including Colorado, should take note. On protecting the air we breathe, Wyoming just raised the bar.

 

Posted in Colorado, Natural Gas, Wyoming / Tagged , , | Comments are closed

Don’t Miss Three Important, Upcoming Webinars from EDF’s Investor Confidence Project

By EDF Blogs / Published: November 6, 2013

By: Matt Golden, Senior Energy Finance Consultant, Environmental Defense Fund

 

Nearly 40% of U.S. energy is consumed by both residential and commercial buildings, which emit more than a third of our country’s greenhouse gases. Realizing all of the available cost-effective energy efficiency savings would require roughly $279 billion of investment, resulting in more than $1 trillion in energy savings over ten years.

Environmental Defense Fund’s Investor Confidence Project (ICP) opens up energy efficiency to investment markets by laying the foundation necessary to enable organizations to tap into this vast potential. This means turning energy efficiency upgrades in the commercial building sector into an asset that can be bought and traded, much like stocks and bonds.  By developing a straightforward set of protocols that define a clear road-map for upgrades, ICP creates an investment-quality asset class whose risks and returns are transparent. Ultimately, large-scale adoption of the ICP framework will reduce transaction costs and engineering overhead, while increasing the reliability and consistency of savings.

ICP will be hosting a series of webinars targeted at specific stakeholders in the energy efficiency sector, and strongly encourage individuals and organizations interested in the future of the energy efficiency industry to attend.  With the assistance and feedback of industry leaders, investors and programs, ICP has developed a range of Energy Performance Protocols tailored to market needs and project types that will reduce transaction costs, manage performance risk and increase deal flow.  Our webinar schedule this fall will focus on how these protocols can create value for individual projects, organizations and the energy efficiency industry as a whole.

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Methane: a Key to Dealing With Carbon Pollution?

By Steven Hamburg / Published: November 5, 2013

Carbon is typically considered enemy number one in the context of climate-altering pollution. There is good reason why. Carbon dioxide (CO2) emitted from power plants is the leading source of U.S. greenhouse (GHG) emissions. Beyond our borders, the historic level of 400 parts per million of GHGs entering into our earth’s atmosphere was passed just five months ago – an indication of the rapid rise in human-produced emissions.

And while reducing carbon pollution is the primary goal of EDF’s climate agenda, so is minimizing methane emissions from natural gas development. That’s because methane, the main ingredient in natural gas, is a powerful GHG that can cause major climate damage in the short term. In fact, a recent analysis by many of the world’s top experts on evolving climate science, the Intergovernmental Panel on Climate Change (IPCC), reports methane to be at least 84 times more potent than CO2 over the first two decades. On a 100-year timeframe, methane is at least 28 times more potent. These are noticeable changes in methane’s Global Warming Potential (GWP) from the IPCC’s last assessment in 2007, with values raised from 72 to 84 and 25 to 28, roughly a 17 percent increase on a 20-year time horizon and a 12 percent increase on a 100-year basis.

IPCC’s fifth assessment (AR5) also quantitatively discusses two additional indirect effects that further increase, albeit modestly, methane’s GWP. First, IPCC considers climate-carbon feedbacks and reports two sets of GWP values: one that accounts for the feedbacks and another that excludes them (they conclude that including this effect is “likely” to give a more accurate estimate of climate impacts from emissions of greenhouse gases like methane or CH4). The 20-year GWP for methane with feedbacks increases from 84 to 86, with the 100-year GWP up from 28 to 34. The explanation for this feedback is diminishing ability of oceans and soils to absorb carbon dioxide as the climate warms. As a result, as methane emissions warm the climate, more CO2 that would have historically been absorbed by the land and ocean remains in the atmosphere, causing additional warming. The second effect now quantified by the IPCC is the production of additional CO2 as CH4 is oxidized in the atmosphere, which adds another point or two to methane’s GWP.

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At a Key Moment for Energy, California Should Seize Demand Response

By Lauren Navarro / Published: October 31, 2013

This commentary originally appeared on EDF’s California Dream 2.0 blog. 

Traditionally, if an area’s population grows — or it loses a power plant — it needs more energy. But California and some other states can approach it differently and reduce the use of fossil fuels.

Instead of asking, How can we add more energy?” the real question becomes “How can we reduce demand?”

Two words: Demand Response (DR).

DR is an incentive that has been proven to work on the East Coast and elsewhere, encouraging energy users who voluntarily participate to reduce their electricity usage temporarily when demand could outpace supply.

Recently, the California Energy Commission’s Integrated Energy Policy Report (IEPR) Draft recognized DR as a technology with a high potential to maximize energy efficiency. This report comes at an important time for the state, when greenhouse gas emissions from large facilities have increased in California after decreasing the previous years, in large part due to the closing of the San Onofre Nuclear Generating Station (SONGS) power plant.

In our recently submitted comments, EDF commended the Commission on thinking big on demand response, a cutting edge load management technology that can lower wholesale energy prices when they are highest, dramatically minimize system costs, and reduce air pollution and greenhouse gas emissions.

In their report the Commission also acknowledged that while DR is a great tool if used well, there still “has been little progress towards increasing the amount of DR used in the state.”  The Commission included several recommendations to bolster DR going forward, which EDF supports and will advocate for.

We also made suggestions for how the Commission could maximize the use of DR in California, including:

Time of Use (TOU) tariffs allow customers to pay prices for energy that depend on both when and how much they use. By giving customers the option to save money for reducing their energy use at peak times, older, less efficient peaker plants aren’t used as much and the overall system costs go down dramatically. If half of Southern California Edison’s ratepayers adopted its voluntary TOU program, this would replace the need for two thirds of the San Onofre generating capacity.

  • Set clear and ambitious goals for demand response in the state

The Commission should set ambitious benchmarks in regard to demand response capacity.

  • Foster consumer adoption of innovative demand response technology

Modern technology allows for automated thermostats, ‘set it and forget it’, and other options for easy to use systems that allow interested electricity customers to quickly and consistently respond and reduce energy use when demand is high and the grid is stressed. The Commission should plan to increase consumer uptake of these technologies.

  • Support new technologies and quick scaling up of pilot projects

Demand response opportunities exist on a broad scale in California.  Innovative ideas like charging electric cars when solar power is abundant to help maximize the benefits from renewables are still being developed. The Commission should encourage and support these new technologies, and look for successful pilots that are both cost-effective and fully scalable.

  • Establish effective enforcement mechanisms

By putting in place proper monitoring and enforcement mechanisms, the Commission will help ensure expected environmental benefits.

The Commission’s IEPR is a great step forward, and comes at a key moment for managing California’s energy system. We urge the Commission to continue its work with other stakeholders to increase this momentum, and to utilize its authority – such as appliance and buildings standards and electricity forecasting – to help implement the state’s vision for demand response.

Posted in California, Demand Response, Energy Efficiency / Tagged , | Comments are closed

A New Day For Energy Efficiency In North Carolina

By Greg Andeck / Published: October 30, 2013

The North Carolina Utilities Commission issued an important ruling this week that reaffirms the importance of energy efficiency as the fastest and cheapest way to reduce pollution from fossil fuels, protect the health of our families and promote our economy.

The ruling approved a new “shared savings” program that allows Duke Energy to make favorable returns on energy efficiency investments, but only if the company saves their customers money in the process.  The shared savings model is the most common financial tool in the United States to encourage electric utilities to make energy efficiency investments.

The new program will motivate the utility to implement energy efficiency measures as broadly and cost-effectively as possible.  Duke’s investments, in turn, can help ensure a robust market for providers of energy efficiency goods and services.

The shared savings model also provides an additional financial incentive for Duke to achieve the voluntary energy savings it agreed to when the company merged with Progress Energy in 2012.  The merger agreement included a minimum 1% per year energy savings starting in 2014 and 7% cumulative energy savings over five years (from 2014-2018).  If the company achieves certain energy efficiency targets, it will receive a financial incentive.

Notably, the ruling requires Duke Energy to convene a stakeholder discussion on the feasibility of commercial and industrial on-bill repayment and combined heat and power programs, which will enable the commercial sector to achieve high levels of energy efficiency performance.

The commission’s decision replaces Duke’s avoided cost energy efficiency program, known as “Save-a-Watt.”  That program, which expires at the end of 2013, was successful in motivating Duke to make investments in energy efficiency.  In fact, the company exceeded its energy savings targets.  The downside: Save-a-Watt was overly complex for energy regulators and stakeholders.  In contrast, the new shared savings program is simple, transparent and will continue to expand Duke Energy’s energy efficiency investments.

EDF is pleased to see that the ruling incorporates all of the major elements of an agreement that we helped secure in August with Duke Energy, the Commission Public Staff, North Carolina Sustainable Energy Association and environmental colleagues.  We look forward to watching Duke Energy achieve its full energy efficiency potential.

Posted in Energy Efficiency, General, North Carolina, On-bill repayment / Tagged , , , | Comments are closed

From the Pacific Coast Climate Plan, a Path Forward for the Low Carbon Fuel Standard

By Tim O'Connor / Published: October 30, 2013

While several stories have been written on this week’s historic climate pact signed by California, Oregon, Washington and British Columbia, little has been mentioned about the path its created for low carbon fuels in Western North America. Such a clear statement on the direction for West Coast low carbon fuels development has never been made, so it certainly deserves a deeper dive.

In Part II of the pact: “Transition the West Coast to clean modes of transportation and reduce the large share of greenhouse gas emissions from this sector” the leaders agreed to “Adopt and maintain low-carbon fuel standards in each jurisdiction. Oregon and Washington will adopt low-carbon fuels standards, and California and British Columbia will maintain their existing standards.”

The relevance of this statement cannot be understated.

According to the US Energy Information Agency, the 3 western states burn a combined 23.7 billion gallons of gas and diesel every year, emitting just over 200 million metric tons of carbon dioxide. British Columbia, for its part, releases about 15.5 million tons from burning gas and diesel in cars and trucks every year.

Furthermore, based on recent projections of alternative fuel industry growth from the California energy commission, the US Energy Information Agency, and consulting firms like Navigant, stringent Low Carbon Fuel Standards (LCFS) are achievable.

For example, according to recent cutting-edge research on electric vehicle (EV) sales, California and Washington will likely lead the nation in EV sales by the year 2022 with about 813,000 and 105,000 EV’s sold respectively. Additionally, the state of Oregon is expected to account for over 5% of all EV sales in 2022. With policies like the LCFS, these vehicles can capitalize on the huge amount of zero carbon power (hydroelectric, wind, etc.) produced throughout the pacific northwest on a yearly basis – yielding even greater economic investments while also significantly reducing pollution that causes climate change and public health impacts.

In addition to the EV example, a set of LCFS standards across the western region can build upon the large amount of low carbon biofuels that are being produced. By way of example, according to the US EIA, at least 14 different biodiesel production facilities with a production capacity of 183 million gallons of fuel are already located in California, Oregon and Washington, with more to come. Furthermore, as documented by the California Energy Commissions, at least a 3-fold increase in alternative fuels production is expected by 2020, enabling the achievement of goals for “petroleum displacement, in‐stage biofuel production, and LCFS compliance.”

These alternative fuel facilities and companies mean local jobs, economic growth and reduced imports – a much different picture than the current trend of buying massive amounts of foreign crude oil and sending billions of dollars abroad.

For years, members of the oil and traditional ethanol industries have fought to undermine the LCFS in the media, the courts and at the ballot box. These groups have spared no expense to build implementation road blocks and cast doubt over the standard, hiring consulting firms that deliver highly criticized sky-is-falling cost estimates, sponsoring industry groups aimed at casting doubt over implementation readiness, and suing California in state and federal court. With this most recent announcement, those efforts were again proven futile.

Though time will tell how Oregon and Washington will implement the LCFS portion of the recent climate pact, for now, a green light means it’s go time for low carbon fuels across the region.

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