Energy Exchange

New BLM Proposals For Large Oil And Gas Fields Ignite Wyoming Air Quality Concerns

By Jon Goldstein / Published: March 7, 2013

Wyoming is already one of the country’s top natural gas producers. And large new developments under review by the

Source: Anne Nowell

U.S. Bureau of Land Management totaling more than 25,000 new wells in the coming years could further solidify Wyoming’s status as a national energy leader.

But what will this leadership look like? Will this series of development projects lead to worsening air quality or set an example for safe, responsible development?

The first of these, the Continental Divide – Creston Project, is alone one of the largest onshore natural gas developments ever proposed on federal lands in the United States. This enormous development slated for the Wamsutter area of south-central Wyoming, includes drilling nearly 9,000 new natural gas wells across 1,672 square miles (or 1.1 million acres) of public and private lands — an area a bit larger than the state of Rhode Island. The well-known Jonah Field in western Wyoming, by comparison, covers about 21,000 acres and includes about 3,500 wells.

The scale, concentration and vicinity of new wells proposed by the CD-C project are fueling concern for regional air quality issues. If managed improperly, this project could lead to more unhealthy air for local residents and workers.

Unhealthy air, as a result of oil and gas development, has been a particular issue in Pinedale, a community just northwest of the CD-C proposal in Wyoming’s Upper Green River Basin. The past few winters have earned the area unwanted national attention for its U.S. Environmental Protection Agency nonattainment designation for ground-level ozone pollution — one of the first non-urban areas to report such high levels of smog. Read More »

Posted in BLM Methane, Climate, Methane, Natural Gas / Tagged | Comments are closed

Solar, Wind Prompting Electricity Grid Innovation In California

By Jamie Fine / Published: March 4, 2013

In a February Wall Street Journal article (“California Girds for Electricity Woes”), reporter Rebecca Smith gives an alarmist and misleading account of California energy regulators’ efforts to secure a cleaner, less expensive, more reliable electricity grid.  Right now, California has plenty of power:  44 percent more generating capacity than it typically uses, including a considerable fossil fuel energy portfolio.  Renewables – large scale, rooftop solar, wind, and, increasingly, energy storage – make up almost 15 percent of the grid, a percentage that will more than double in the next decade.  These clean, innovative energy technologies are working to improve the system by reducing the need for fossil fuels.

The reality is that the grid is changing, driven by California’s quest to secure an environmentally safe and affordable electricity system. Increasing the amount of renewable energy on the grid will mean that more generation is variable; electricity output from solar and wind depends on sunshine or windiness, respectively.    Up to this point, California has met this challenge by backing up clean resources with fossil fuels.  But California’s ratepayers can’t afford to keep doing this, so instead of “girding for woe,” the CAISO and the CPUC met to proactively address our changing future – to move California towards cleaner, less expensive electric grid planning.

This new approach can increase California’s ability to rely on clean energy generation by building greater flexibility into the system – while giving more options to consumers.  Not only can customer-based (“demand-side”) clean energy technologies reduce reliance on polluting power plants, they are quite likely to be more reliable and are potentially more cost-effective.   Demand response, or the ability of customers to choose to save money by responding to a price or electronic signal from the grid operator in times of excess system demand, will be key to integrating large amounts of intermittent solar and wind without back-up fossil or storage.   In fact, during afternoon peak demand, where supply is extremely limited in its ability to serve load, the addition of virtual generation resulting from the participation of DR into the market will actually lower energy prices.

California has already installed a robust digital metering infrastructure – and it’s time to put these meters to work by enabling customers to participate in demand response and other demand-side programs.  Coupled with technologies that now allow for fast, reliable, automated ‘set-it-and-forget-it’ adjustments to electricity use, we can seamlessly integrate variable electricity resources, such as wind and solar, without disrupting energy users.  Customers can choose to become an energy resource instead of fossil fuel plants.  Read More »

Posted in California, Grid Modernization, Renewable Energy / Tagged , | Comments are closed

Study Intends To Determine Methane Leakage Associated With A Growing Natural Gas Transportation Sector

By EDF Blogs / Published: March 4, 2013

This blog post was written by Jason Mathers, Senior Manager of EDF’s Corporate Partnerships Program.

Source: Waste Management

The use of natural gas to power our nation’s freight fleet vehicles is a hot topic in these days of rising diesel and falling natural gas prices. There are several reasons to be excited about this opportunity, including operating cost savings, use of a domestic fuel source, and the potential for a reduction in greenhouse gas (GHG) emissions compared to diesel heavy-duty trucks. However, significant concerns remain with the development of new gas supplies, including the threat of fugitive methane emissions from natural gas vehicles and the fuel supply chain.

Methane is the main ingredient in natural gas and a GHG pollutant many times more potent than carbon dioxide (CO2), the principal contributor to man-made climate change. Even small amounts of methane leakage across the natural gas supply chain can undermine the climate benefit of switching to natural gas from other fossil fuels for some period of time.

In a paper published last year, EDF scientists and other leading researchers examined the impact of potential fugitive emissions on the climate benefits of a switch from diesel to natural gas heavy-duty trucks. The study found that, according to the best available data, methane leak rates would need to be below 1% of gas produced in order to ensure that switching from diesel to natural gas produces climate benefits at all points in time. They also found that – using the EPA leakage rate estimates at that time – converting a fleet of heavy duty diesel vehicles to natural gas would result in increased climate warming for more than 250 years before any climate benefits were achieved.

EDF is working with leading researchers and companies in a series of studies designed to better understand and characterize the methane leak rate across the natural gas supply chain. The studies will take direct measurements at various points across the production, gathering and processing, long distance transmission and storage, local distribution, and transportation. The first study, led by researchers at the University of Texas, is measuring emissions from natural gas production. Results will be released in the coming months. Read More »

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

Clean Energy Market Poised For Rapid Growth In California

By Brad Copithorne / Published: March 1, 2013

Environmentalists and other policy makers have long touted the economic benefits of investing in energy efficiency and renewable projects.  For California, that vision is on course to being realized.

Yesterday, EDF, Citi and Wilson Sonsini held Innovations in Energy Efficiency Finance II, a sequel to the successful conference we hosted in 2011.  That year, we discussed several interesting ideas about how we might finance projects.  Yesterday we heard from sector leaders on how those ideas are being implemented in California and beyond.

Citi and EDF conceived of this event as an opportunity to bring the energy efficiency and renewable industries together to discuss these opportunities and to build momentum for increased transaction flow.  Judging by the makeup of the audience, I think we succeeded.  I attend quite a few conferences to discuss energy efficiency and most of them are dominated by fellow public policy types.  Yesterday, however, was a different story.  Of the 185 attendees, over 2/3 were representing private sector companies in the clean energy or financing business.

As former Governor of Colorado, Bill Ritter noted, “California continues to take bold steps toward clean energy and provide the private sector with clear opportunities to invest in energy efficiency and renewables, critical components of our nation’s economic growth. A key part of achieving our clean energy potential, and creating jobs in America, is ensuring access to quality financing for homes and businesses that want to participate in the new energy economy.”

Read More »

Posted in California, Energy Efficiency, On-bill repayment, Renewable Energy / Tagged | Read 2 Responses

Results Are In: Auction Continues California’s Winning Streak to Fight Climate Change

By Tim O'Connor / Published: February 22, 2013

Three months ago California officially opened its world class cap-and-trade program for greenhouse gas pollution – establishing the first ever carbon price in the Golden State and leading the nation on a path toward true climate change action.

Earlier this week, California’s march toward meeting emissions reduction goals was bolstered with a second auction of carbon allowances in the cap-and-trade program, and just today, the results of that auction were released. All signs point to marked success for the program in the second auction, and suggest California is on its way toward fully realizing the goals of the Global Warming Solutions Act of 2006 (AB 32).

As shown by the results released at noon today, overall participation in the February 19, 2013 auction was high, with almost 2 ½ times more credits bid on than were sold. Initial reports show this has beaten all market expectations, and the clearing price of $13.62 suggests a strong belief in the longevity of the overall program.

By selling more than 7 million state-controlled carbon allowances, California’s second auction also raised about $83.5 million – money that will be used to advance the goals of AB 32. Furthermore, since recent legislation was passed in 2012 that requires at least 25% of the auction proceeds to benefit disadvantaged communities, this auction will inspire more than $20 million in investments that can benefit Californians in need.

With respect to who participated in the auction, market statistics show there was approximately a 25% increase in the number of qualified auction participants as compared to the last auction. This increased participation was no doubt partly responsible for the fact that 2013 credits were purchased by a diverse array of bidders (as opposed to credit purchases being concentrated in a few entities). This diversity of participation, coupled with the strong regulatory oversight being used by state agencies and expert market monitors is an important guard against market manipulation and is yet another example of how this market looks to be strong and diverse, a good sign moving forward.

In addition to auctioning off credits that can be used for emissions obligations in 2013, California’s second auction also offered advance vintage credits that can be used for compliance starting in three years (2016). Based on the sales volume of these credits (greater than 4.4 million sold), there continues to be moderate demand going forward for future vintage credits, another indication of the belief of the programs longevity.

A California carbon price opens the door for cleaner energy and clean air, as the State finally has an ongoing cost that can be attributed to carbon pollution. California’s next auction will occur in 3 months, though investments made now can be assured their carbon reduction value can be both calculated and counted on. As shown by today’s auction results, while much of the nation has waited to take concrete action against climate change, California’s train is out of the station and picking up steam every day.

Posted in General / Comments are closed

Bipartisan Consensus: Wasting Energy Is Senseless

By Isabelle Silverman / Published: February 20, 2013

In his State of the Union address, President Obama announced the goal of cutting energy waste in buildings and homes in half over the next 20 years.  House Speaker John Boehner clapped approvingly.  U.S. buildings and homes waste so much energy that a 50% reduction of such energy waste would save businesses and individuals billions of dollars, would deliver healthier air to all Americans and would put us on the path of energy independence.  Most of our energy comes from burning fossil fuels; so, consuming less fossil fuel will reduce toxic emissions and improve air quality.  Cleaner air will save lives.  Studies estimate that over 35,000 Americans die every year due to air pollution related illnesses.

Cutting energy waste in half won’t just happen on its own, though, and it won’t be easy.  We need to identify the opportunities where we can eliminate energy waste, and then invest in the types of technologies that lead to more energy efficient buildings and homes. The good news is that these modern, cost-effective technologies are available now.

Clearly, opening windows when a building is overheated is not the solution. For example, building owners will need to invest in control technologies that cut overheating and turn off lights and equipment when not needed. These are smart energy efficiency investments with typically short pay-back periods. And, in reducing the energy we waste, we improve our quality of life with more money in our pockets and fresher air in our lungs.

Finally, let’s not forget about the environmental impacts of energy exploration, which is another reason why we shouldn’t waste the energy that was so hard to get out of the ground in the first place.  The actual extraction of fossil fuels is the second biggest source of U.S. greenhouse gas emissions, and – if developed irresponsibly – can pollute our water, air and oceans — jeopardizing our health, livelihoods and quality of life.  When you consider the whole range of health and environmental impacts involved with using, and (of course) wasting, energy –it is blatantly obvious that wasting energy is already coming back to hurt us.

If Washington can agree that wasting energy is senseless, let’s keep the momentum going and support smart efforts, policies and investment tools that will help energy efficiency reach its full potential.  Cutting energy waste is a win for our wallets, our health and our children’s’ future.

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