Energy Exchange

Seeing Green: Emission Reducing Fuel Policies Help Lower Gas Prices

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

By: Tim O’Connor and Shira Silver

Californians struggling with high gas prices should feel optimistic about the future.  A new memo by economists from EDF and Chuck Mason, a prominent economist at the University of Wyoming, demonstrates that policies established to reduce emissions and help the state reach its climate change goals also help to arm consumers at the pump.

The Low Carbon Fuel Standardcap and trade, and other complementary policies such as Governor Brown’s Zero Emission Vehicle program and national Renewable Portfolio Standards seek to integrate lower or zero-carbon fuels into the energy market in an effort to reduce greenhouse gas pollution.

As our memo explains, in California these efforts also help to increase the market share for alternative, lower-carbon fuels. Between now and 2020, alternatives may grow to occupy between 15 and 24 percent of the market, creating new jobs and addressing the large market share that oil companies have in California.

Currently six oil companies control 94 percent of the fuels market in California. Through a set of mergers and other factors they have developed a strong lock on fuel in the state, and more specifically on consumers’ pocketbooks at the pump.

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Posted in California, Electric Vehicles / Tagged , , | Comments are closed

Local Energy-Water Solutions Should Be A Model For The Nation

Over the past several weeks, I’ve written a lot about the intimate and inextricable connection between energy and water. The energy-water nexus involves a number of technologies, environmental factors and stakeholders. Thus, it’s no surprise that water and energy’s fundamental connection has eluded policymakers for so long. With this post, I review the lessons discussed so far, so that policymakers can understand the key issues surrounding the energy-water nexus and what’s at stake if we fail to act now.

The Bottom Line

Conventional electricity sources, like coal, natural gas and nuclear power plants, require an abundance of water — about 190 billion gallons per day. Because the majority of our electricity comes from these sources, high energy use strains the water system and contributes to Texas’ prolonged drought. Coincidentally, extreme drought could force power plants to shut down.

Climate change is having a profound effect on our weather patterns, making extreme heat and drought more common in Texas and throughout the Southwest. If we don’t set the energy-water system on a sustainable course, we risk a compounded problem.

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Posted in Climate, Energy Efficiency, Energy-Water Nexus, Texas / Tagged , , , , , , | Read 2 Responses

Austin Energy + Nest: Empowering Texans To Take Control Over Their Own Energy Use And Electric Bills

Source: Nest

If you have been following our Texas Energy Crunch campaign over the last year, you know that demand response (DR) can play a pivotal role in meeting Texas’ energy needs without relying on dirty, inefficient fossil fuels that pollute our air and consume much-needed water.  Simply put, demand response rewards those who reduce electricity use during peak (high energy demand) times, resulting in more money in peoples’ pockets, a more stable and reliable electric grid and less harmful pollution from fossil fuel-fired power plants.

That said, fully harnessing DR in Texas homes has been a bit of a challenge, despite the high electricity prices that result from the scorching summer temperatures.  To understand the issue, it’s important to look at the obstacles emerging technologies often face.  I highlight some of these obstacles in a recent EDF Voices blog and will be diving deeper in future posts.  Namely, the infrastructure to fully enable residential DR adoption isn’t in place, yet.

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Posted in Demand Response, Energy Efficiency, Texas / Tagged , , , , , | Read 1 Response

A Smart Approach To Smart Meters

John FinniganA new documentary about smart meters opens on September 5th called Take Back Your PowerThe film suggests that smart meters cause illness.  According to an August 12 USA Today story, the film’s director was inspired by a friend who became seriously ill after a smart meter was installed at his home.  Naturally, this type of personal experience might shape one’s view on smart meters, but correlation is not causation.

Electric utilities have installed over 38 million smart meters across the country and there “has never been a documented injury or health problem associated with such meters.”  According to the Federal Communication Commission (FCC), “no scientific evidence establishes a causal link between wireless device use and cancer or other illnesses.”

Smart meters send information to utilities by using radio frequencies (RFs) such as those currently used by televisions, radios, baby monitors, cell phones and wifi routers.  RF signals have permeated our atmosphere for as long as we’ve had televisions and radios.

We use these devices every day, and many of them create much higher levels of RF exposure than smart meters.  The exposure level depends on the strength of the RF signal emitted by the device, the duration of the RF signal and—importantly— the distance from the source.  Cell phones emit up to several thousand times more RF signals than smart meters.  Smart meters also transmit intermittently and briefly during the day, while we talk on cell phones for long periods.  Finally, smart meters are located outside the home, while cell phones are often used close to one’s head.

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Posted in Grid Modernization / Tagged , , , | Read 25 Responses

Aloha for Clean Energy Finance: A Tale of Two States

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

For over two years, EDF has been working to establish an On-Bill Repayment program in California that would allow property owners to finance energy efficiency or renewable generation projects and repay the obligation through their utility bill.  Since utility bills tend to get paid and the obligation could ‘run with the meter’, defaults are expected to be low, which will improve the availability and reduce the cost of financing.  In May 2012, the California Public Utilities Commission (“CPUC”) agreed with our position and ordered the large utilities in California to develop a program for commercial properties.  EDF estimates that this program could generate $5B of investment over 12 years, which is expected to support 36,000 jobs.

Unfortunately, we are still waiting for the nonresidential OBR pilot in California to be implemented and if the utilities get their way, we may be waiting for close to another full year.  The California utilities appear to be fearful of change, distributed generation, and the impact of reduced demand.  They have employed aggressive tactics with teams of lawyers arguing and re-arguing every potential issue, even after the issues have presumably been settled by the CPUC.

This stands in sharp contrast to what is happening in Hawaii.  On March 25, the Hawaii Public Utilities Commission (“HPUC”) ordered the primary Hawaii utility, Hawaiian Electric Company, (“HECO”) to establish an OBR program for residential and commercial customers.  I just returned from 3 days in Honolulu and it appears that they are working cooperatively to get the program running in the first quarter of 2014.  This timetable of 12 months from HPUC order to implementation is less than half of what we seem to need in California, despite the fact that the Hawaii program covers a much broader range of property types and relies on public as well as private sources of financing.

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Posted in California, Energy Efficiency, On-bill repayment / Tagged , , , | Read 1 Response

A Powerful Proposal To Increase Groundwater Knowledge In Wyoming

Jon GoldsteinThe Latin phrase “Scientia potentia est” may not ring a bell, but its translation should: knowledge is power.

The oil and gas industry spends millions every year to expand  its knowledge of underground energy reserves. That is because better geologic knowledge is powerful stuff, it can mean the difference between a very profitable well or a very expensive dry hole.

Doesn’t it make sense then for the industry to also invest in better knowledge of local water resources? Investing a small amount in understanding local groundwater quality before you drill, and following up to monitor whether that water is potentially impacted once energy production commences is also incredibly powerful for local residents, state regulators and the industry alike.

Wyoming oil and gas regulators have proposed a testing program that aims to do exactly this – establish a groundwater quality baseline in areas where oil and gas development is planned, and then follow up with two sets of tests to monitor for potential impacts from this specific activity. Read More »

Posted in Natural Gas / Tagged | Read 3 Responses