Energy Exchange

Lessons From A Toxic Waste Dump

By Dan Mueller / Published: September 19, 2013

Texas is home to half the oil and gas exploration and production in the United States. Looking out west is the Permian Basin. To the north is the Barnett. Out east is the Haynesville and due south is the Eagle Ford. Oil and gas is a vibrant industry in Texas. Historically it’s been the lifeblood of the state’s economy. But, as with any industrial development, it comes with its own set of serious risks to the environment. Impacts on our land, air, water and climate that if not managed correctly can have lasting consequences.

As an engineer working on water quality issues and related environmental issues for over 30 years, I’ve seen firsthand the effects of unregulated industrial activity. In 1980, the federal government passed the Comprehensive Environmental Response, Compensation, and Liability Act, better known as Superfund. Superfund legislation gave the Environmental Protection Agency broad authority to compel the cleanup of abandoned hazardous waste sites in our country, suing those responsible, and even establishing a trust fund to address toxic sites with no known responsible party. In Texas, these sites were the result of decades of industrial development caused by, for example, old lead production plants dating back to the early 1900s, World War II era defense manufacturing and the rise of the petrochemical industry.
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ICP Protocol For Standard Commercial Projects

By EDF Blogs / Published: September 18, 2013

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

The Investor Confidence Project (ICP) is pleased to announce the release of our newest Energy Performance Protocol for Standard Commercial projects – defined as multiple-measure energy efficiency projects typically costing less than $1MM.

This protocol strikes a balance between engineering and measurement and verification best practices and the need for a streamlined, cost-effective approach to developing a standardized investment quality energy efficiency project. This latest addition complements our existing Large Commercial Protocol in an effort to develop a family of protocols addressing the range of projects types common in the growing energy efficiency retrofit marketplace.

The goal of the Energy Performance Protocols, as a whole, is to reduce transaction costs associated with investing in energy efficiency projects by standardizing how projects are baselined, engineered, installed, operated and measured. This allows investors and building owners to gain confidence in the long-term return on their energy efficiency investments. The goal is to bring together project originators, building owners and investors in a more transparent, and thus more robust, marketplace.

Posted in Energy Efficiency, Investor Confidence Project / Comments are closed

A New Study Measures Methane Leaks In The Natural Gas Industry

By Mark Brownstein / Published: September 18, 2013

This commentary originally appeared on our EDF Voices blog.

Source: Penn State Outreach/flickr

Earlier this week, a prestigious scientific journal, the Proceedings of the National Academy of Sciences (PNAS) published “Measurements of methane emissions at natural gas production sites in the United States.” This study is the first in a comprehensive research initiative that Environmental Defense Fund is helping to produce with more than 90 partner universities, scientists, research facilities and natural gas industry companies. This effort, the largest scientific undertaking in EDF’s history, is an unprecedented attempt to measure where and how much methane is being released across the entire natural gas supply chain.

By the time the work is finished, around the end of 2014, scientists working with EDF will have completed sixteen studies characterizing methane emissions in five key areas of the natural gas system: production, gathering and processing,transmission and storage, local distribution and use in operating and fueling heavy and medium weight trucks.

The study that published Monday was led by Dr. David Allen of the University of Texas at Austin (UT) and is based on some of the first-ever direct measurements of methane emissions from shale gas wells that use hydraulic fracturing, or “fracking.”

Posted in Natural Gas, Texas / Tagged EPA, fracking, Natural Gas | Comments are closed

Keeping It Clean: California Should Use Clean Resources To Integrate Renewables

By Lauren Navarro / Published: September 17, 2013

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

As the 8th largest economy in the world, California remains a global leader in clean tech investment, innovation and adoption of landmark climate and energy policies. What defines our success? Our ability to try things first, set the bar high, and get policies right.

California’s Renewable Portfolio Standard (RPS) is a perfect example of that bold, pioneering spirit. Passed in 2011, the RPS required that 33% of electricity come from renewables by 2020 – a lofty benchmark, even by California’s standards. Along with self-generation and solar rooftop programs, California is successfully adding solar, wind, and other distributed generation to its resource portfolio.

In fact, renewables are successfully becoming a large part of daytime energy production, the California Independent Systems Operator (CAISO) – the organization in charge of balancing the statewide grid – is concerned over how to make up for that energy when the sun goes down while evening energy demand spikes. The question is: How can the CAISO reliably integrate renewables?

The CAISO is currently figuring out how to address this need for “flexible” power and will have a draft decision out on October 2nd. Just like people prefer to take routes they know well when they drive, the CAISO is most comfortable with what they know: familiar fossil fuels. Using clean resources and demand response instead is new territory for them that will require careful orienteering.

Posted in California, Grid Modernization / Tagged California, Demand Response | Read 1 Response

On-Bill Repayment In California: A Step Forward And A Missed Opportunity

By Brad Copithorne / Published: September 17, 2013

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

Yesterday, the California Public Utilities Commission (“CPUC”) updated their June 25 proposed decision that included implementation rules for an On-Bill Repayment (“OBR”) program for public and commercial properties. An OBR program allows property owners to finance energy efficiency upgrades on their buildings and repay the obligations through their utility bills. Banks and other private investors provide the funding and borrowers get low interest rates because the obligations are an integral part of the utility bill and, under the EDF proposal, are fully transferable upon change in ownership or occupancy.

The CPUC’s revised decision contains many of the elements necessary for a successful program including making the OBR obligation an integral part of the utility bill through a tariff. Ed Wojtowicz, VP of Finance at Honeywell recently told me, “By integrating the financing charge into the utility bill, we expect that OBR will help many towns, cities and school districts approve money saving energy efficiency projects.” We have heard similar sentiments from other market participants and are optimistic that this OBR program will accelerate money-saving clean energy investments in municipal and school properties.

Unfortunately, our California utilities — PG&E, SoCal Edison and Sempra — have been fighting OBR tooth and nail for the past two years, as they fear that a successful OBR program would increase investment in distributed solar, potentially reduce utility control of energy efficiency programs and allow other companies to have access to the utility bill and customer relationships. Over the past three weeks, the utilities have had ten separate private meetings with CPUC commissioners or staff in an attempt to halt the OBR program.

Posted in On-bill repayment / Comments are closed

Natural Gas And The Methane Problem: Study Shows Climate Benefit Depends On Fixing The Leaks

By Dan Grossman / Published: September 16, 2013

Methane, the primary component of natural gas, is a powerful greenhouse gas – 72 times more potent than carbon dioxide over a 20-year time frame. The largest single source of U.S. methane emissions is the vast network of infrastructure and activity involved in the production, processing and delivery of natural gas. These emissions, if not controlled, pose a significant risk to the climate. In the near term, the opportunity to maximize the climate benefit of natural gas compared to other fossil fuels rests on whether methane emissions can be minimized.

A groundbreaking study released today demonstrates that some operators have been successful in deploying technologies and strategies to minimize methane emissions from production, creating optimism that we can make the natural gas climate bet payoff. However, we also know that such technologies and strategies are not universally deployed in the industry and, not surprisingly, other studies demonstrate much higher methane leakage rates.

We simply need to be vigilant to ensure that such production is done right.

The University of Texas study, published in the Proceedings of the National Academy of Sciences, involved taking direct measurements of actual methane emissions – as opposed to estimating emissions through indirect methods such as engineering formulas, as has often been the case in earlier studies. Measurements were taken at well sites in multiple geographic regions – including the Rocky Mountain West. It is the first of 16 studies EDF is participating in to assess the scope of methane leakage throughout the natural gas supply chain (from production on through to local distribution and key end users). Read More »

Posted in Methane, Natural Gas / Tagged Colorado | Read 1 Response