Energy Exchange

Loose Use Of Facts Undermines Credibility Of White’s OpEd

This commentary was originally posted on the EDF Texas Clean Air Matters Blog.

An erroneous and misleading opinion piece by Kathleen Hartnett White with the Texas Public Policy Foundation, ran in Sunday’s The Austin American-Statesman. In the article, White misrepresents several important details from a 4-year old EDF report that was prepared by Dr. Al Armendariz, a former Regional Administrator of the Environmental Protection Agency. The report catalogued emissions from oil and gas production in the Barnett Shale area. Her purported facts about the study findings are just plain wrong.

First, she claims that the report concluded that ozone precursor emissions from Barnett Shale production are twice as large as all mobile source emissions in the area. In fact, the report concluded that peak Barnett Shale emissions, while significant, were roughly comparable to emissions from cars and trucks (see press release accompanying the report).

White then claims that Dr. Armendariz’s study considered methane to be an ozone precursor, contrary to what is clearly stated in the report at p. 8. While it is true that methane does form ozone, albeit slowly, the report states “[m]ethane and ethane are specifically excluded from the definition of VOC” (volatile organic compounds). Thus, the report excluded methane from the comparison to mobile emissions of ozone precursors.

It is unclear if the author even read Dr. Armendariz’s work, which was not computer modeling, as she claims. Rather, it was an emissions “inventory,” a catalog of the air pollutant emissions from oil/gas sources in the Barnett Shale area, constructed using established engineering practices and industry-backed data sources. The core pieces of information for the inventory were oil/gas production data that are available for every county in Texas from databases at the Texas Railroad Commission. Dr. Armendariz’s resulting emissions estimates were in reasonable agreement with estimates issued by the Texas Commission on Environmental Quality later in 2009 (10-20% difference).

You can’t make a strong case when you get facts wrong. And, it is irresponsible for White to make her case by manipulating science, while cynically blaming government bodies of committing the same sin.

It’s time we all get the facts right and use science to expose truths, not veil our own agenda. For our part, EDF is working with leading academic researchers and industry leaders to conduct scientifically rigorous measurements of emissions from natural gas production. Leaks that occur during production (as well as distribution and use) stand to significantly undermine the potential of natural gas as a lower carbon energy source.

Posted in Methane, Natural Gas, Texas / Comments are closed

Hurricane Sandy: A Lesson In Risk Planning For The Power Industry

Living in New York City through a week of Sandy and her aftermath was a reminder of just how critical electricity is to our lives.

Electricity is the difference between feeling safe in well-lit buildings and streets, or vulnerable in the dark. Between food kept well-preserved in refrigerators and water pumping through pipes, or dinner spoiling and taps gone dry. Between communications and productivity, or isolation and economic losses — which are now forecasted, from Sandy alone, to reach $50 billion.

For some, electric power is literally life or death: heat on

(Credit: Master Sgt. Mark Olsen/U.S. Air Force)

a cold night, access to vital medical services.

The responsibility for providing these essential services rests on utilities. And the gravity of that responsibility – along with a reliance on long-lived and costly assets – has led to a culture of caution. One that has given the power industry pause in moving away from the tried and true methods it has used to generate and deliver power for the past 100 years.

But what the increasingly intense storms rolling across the country reveal is that – sometimes – what seems the cautious path is in fact the most risky.

With an estimated 9.5 million homes and businesses having lost power thanks to Sandy, the utilities faring best at restoring their customers to warmth and safety are those that have begun modernizing their grids with advanced information technologies, and using those “smart grids” to build resilience and reliance on community-based energy resources. I spoke with Bloomberg Businessweek earlier this week to discuss our outdated grid and the crucial need for modernization.

We’re already seeing proof these investments can reduce recovery time, keep crews and customers safer, and save lots of money. Thanks in part to federal stimulus grants, a number of utilities are embedding sensors, communications and controls across their networks. On the power lines that it has helped prevent cascading disasters like the one that knocked out power to 55 million people in 2003, when a single Ohio tree fell on a power line. Automated systems can detect a fault, cordon it off and reroute power flow around it.

Digital “smart” meters, capable of two-way communications, have also proved their worth: providing utilities real-time, granular visibility into their networks, without resorting to (often failing) phones or trucks dispatched on wild goose chases.  Programmed to send a “last gasp” signal when they lose power, those meters have enabled rapid diagnostics – pinpointing exactly which homes or blocks were out, where the break had occurred – and expedited repairs.

Baltimore Gas and Electric, for instance, has installed about 10 percent of its planned 1.3 million smart meters. Linked to a “smart command center” borrowed from sister utility ComEd of Illinois (with whom EDF has been working on developing a set of performance metrics for its grid investments), the meters are telling them when their power restoration efforts have been successful or when further troubleshooting is needed. Without smart meters, they’d have to phone customers to ask if the power is back on. In storm conditions, according to Jeannette Mills, BG&E’s VP of Customer Operations, two-thirds of those calls go unanswered, which means they have to dispatch crews block by block across the region. This time, they’ve been able to ping the meters, asking “are you on?” Mills reports “a much higher rate of success getting through to smart meters than we do reaching customers by phone” enabling far more efficient dispatch of crews.

Utilities with smart grids have also kept customers better informed. A Pennsylvania Power and Light customer described to Smart Grid News how the real time tracking enabled by smart meters allowed him not only “to check on repair status for my own home (with crew on site info and estimated time to repair) … but also remotely online check the status of our two rental houses without having to physically drive to each to check them out.”

One of the first utilities to demonstrate a smart grid’s resilience was Alabama Power, which was slammed in April 2011 by 30 tornadoes across 70 miles with winds up to 190 mph. The twisters left 400,000 without power and thousands of poles, wires and substations damaged or destroyed. But by using its 1.4m smart meters to locate the outages and prioritize repairs, the utility restored all of its customers within a week. It also drives 4 million fewer miles each year.

The security benefits of a smarter, more resilient grid have caught the attention of the U.S. military. It has begun installing smart grid technologies on bases so they can function as “microgrids”: decoupling from the commercial grid in the case of a natural or manmade disaster and maintaining vital homeland security operations. The bases will also become reliability resources themselves, capable of supplying power to the grid, or reducing demand, at times when the grid is stressed.

Most importantly, these smart grids will enable the military to meet its aggressive goals for shifting to low-carbon, domestic energy resources, particularly renewable energy on or near bases. Secretary of the Navy Ray Mabus has set a goal for the service to get half its power from renewable resources by 2015. A smart grid will be absolutely critical to enabling the integration of millions of smaller, regional resources, and for managing the on-again, off-again character of the wind and sun.

The Secretary’s leadership reflects his recognition of the greatest risks that come from sticking to our tried and true ways of making and delivering power:  the national security threats posed by climate change. These include the threats we’ve seen this last week, again, from rising seas and extreme weather, as well as the casualties incurred by troops having to protect vulnerable fuel supplies, and the acceleration of instability and conflict warned of in a 2010 DOD report. When it comes to power, the greatest risks will come from failing to be bold.

Posted in General / Read 7 Responses

EDF Energy Innovation Series Feature #13: Building Interaction and Reimaging From e7

Throughout 2012, EDF’s Energy Innovation Series will highlight around 20 innovations across a broad range of energy categories, including smart grid and renewable energy technologies, energy efficiency financing, and progressive utilities, to name a few. This series will demonstrate that cost-effective, clean energy solutions are available now and imperative to lowering our dependence on fossil fuels.

Find more information on this featured innovation here.

Over the last few months, our Energy Innovation Series has featured companies and organizations that are working on various energy generation, management and efficiency issues. But there are other innovations that extend far beyond what most of us conceptualize as energy.

Across the country, many universities and colleges are investing in energy efficiency and renewable energy and adopting a conservation mindset that has helped these institutions cut energy usage and expenditures, and direct the money saved towards education and other core initiatives.

The Los Angeles Community College District (LACCD) is the largest community college system in the country, serving more than 250,000 students on more than 10 sites around the region.  The system is in the midst of a $6.2 billion bond project that will add 80 state of the art buildings on nine campuses.  And rather than simply sticking new buildings in empty lots, planners are reimagining how these facilities will operate and work together.

e7 Studios is a new architectural organization that is leading the process.  And while the e7 team has energy on its mind, its approach to both data analysis and visualization reaches far beyond standard energy efficiency measures.

“This isn’t a simple renovation,” said architect and e7 director Michael Rendler.  “It’s a re-imagining of how these campuses function and how their pieces interact.  And we believe that to do that correctly, you have to see what you’re working with.  Being able to visually move through a design allows us to find new opportunities for energy efficiency and understand how our design choices impact usability and environmental performance.”

A cornerstone of e7’s approach is a massive database that allows designers to build 3D walk-though visualizations of their designs.  It allows for a whole systems design approach to building management, which will – in turn – help LACCD achieve their “carbon neutrality” sustainability goals.

“Large facilities and campuses really need to be viewed as interconnected organisms, and each part and aspect of a facility generates data that can be captured and visualized,” Rendler said.  e7 is working to develop a single, standardized data model to which buildings, campuses and urban areas around the country can be applied.  “Eventually, designers in any part of the world will be able to tap into this information and see their designs.”

The wealth of standardized and shared data, Rendler says, will allow better design and performance for a lower cost, as well as more environmental benefits.

In addition to its new approach to design, e7 Studio is focused on bringing new approaches to education.  The studio is not only leading the design process, but it is also involving LACCD students in the process.  Its internship program provides front row seats to one of the world’s largest education design and construction projects.

This approach not only serves as a model for urban and campus redevelopment, it trains a generation of experts who can apply their skills to projects around the world. LACCD hosted Sukreet Singh, an EDF Climate Corps fellow this past summer from the University of Southern California.

Posted in Energy Innovation, General / Comments are closed

Watch EDF’s New Video On The Triple Bottom Line Benefits Of Clean Energy

We launched a compelling video today that illustrates how clean energy is strengthening our economy, creating American jobs, allowing for energy independence and lessening our carbon footprint.

This video shows how clean energy is thriving and seeks to arm policymakers, entrepreneurs and clean energy advocates with success stories to back that statement up. The video features interviews with Helen Brauner, Senior Vice President of Marketing & Strategic Planning for Green Mountain Energy; Congressman Lloyd Doggett, U.S. Representative for Texas’ 25th Congressional District; and Stephen Frank, Electrical Engineer for Xtreme Power.

Like innovations in medicine and telecom, energy innovation shouldn’t be a political issue. But clean energy has suffered from some expensive negative attacks recently.  Not surprisingly, these attacks have mainly come from those who stand to profit from today’s fossil fuel industry – which receives 75 times more subsidies than clean energy sources.

Despite the fact that clean energy has become the “modern-day whipping boy,” it is indeed alive and thriving.  The clean energy sector now creates more jobs than the fossil fuel industry and, just last year, grew nearly twice as fast as the overall economy.

Earlier this year, EDF launched the Energy Innovation Series to promote the role innovation has played in the energy industry and highlight clean energy technologies and new business models that hold the promise of revolutionizing the way we create, transport, manage and use energy.  Throughout 2012, we have highlighted innovations across a broad range of energy categories, including smart grid and renewable energy technologies, energy efficiency financing, and progressive utilities, among others.

See the video and learn more at edf.org/energyinnovation.

After you’ve watched the video, please click here to ask EDF Clean Energy Analyst Colin Meehan any questions you may have. Colin will answer you via Facebook tomorrow, October 23rd, from 4:30-5 pm Eastern Time.

Posted in General / Read 1 Response

EDF Pushes Colorado For Full Adoption, Stronger Enforcement Of EPA Oil And Gas Rules

Ten of the nation’s 100 largest natural gas fields are located in Colorado.  Three of the nation’s largest 100 oil fields are located here.  Overall, Colorado is host to over 45,000 oil and gas wells.

And yet, the agency here in Colorado responsible for inspecting oil and gas wells for compliance with air quality regulations employs a mere eight inspectors.  Yes, eight.

If we’re going to do it right in Colorado – developing energy resources in ways that protects communities, public health and the environment – the state is going to have to give agencies the resources they need to oversee industry operations.  No one should be forced to sacrifice clean air and a healthy community, and regulators can’t do their job with one hand tied behind their back.

Oil and gas operations emit a variety of air pollutants, including pollutants that contribute to ground-level ozone or “smog,” toxic air pollutants, including known human carcinogens, and methane, a potent climate-disrupting pollutant.

In April, the Environmental Protection Agency adopted ground-breaking rules to reduce harmful pollution from oil and natural gas production.  The New Source Performance Standards (NSPS) contain critical safeguards for human health and the environment that will help improve air quality in Colorado.

EDF applauded EPA’s adoption of the NSPS standards as an important first step to minimize the environmental impact of oil and gas production.  And now our attention is turning to the states that are deciding whether to adopt and implement the new federal standards as their own or to cede enforcement to the EPA.

Despite Colorado’s past leadership in adopting clean air measures for the oil and gas sector, the state is now foregoing an opportunity to reduce harmful emissions from oil and gas operations through full adoption of the NSPS.  The primary reason for the decision not to fully adopt the federal standards is the lack of state inspection and enforcement resources.

Today, the Air Quality Control Commission (AQCC) indefinitely delayed adoption of the new EPA clean air standards as they apply to certain aspects of gas well operations while additional information is gathered.  Moreover, the Commission voted to adopt standards that apply to other facets of production (e.g., compressing stations) “only to the extent that they already trigger the combination of existing reporting and permitting requirements in Colorado.”

This “partial adoption” approach approved by the AQCC will (1) unduly delay the clean air benefits that the NSPS rules can bring to Colorado and (2) create a confusing and inefficient dual-agency enforcement regime that likely will fail to bring regulatory certainty.

The Colorado Air Pollution Control Division staff has indicated that the partial adoption approach is necessary given the sparse resources available for permitting, inspections and enforcement.  This concern is valid.  Even with new inspectors being brought on board, the Air Quality Control Division will only have eight employees to cover over 45,000 wells, for an astonishing inspector-to-well ratio of 1 to 5,625.  However, punting to the EPA for enforcement is not likely to improve the resource issue given that Region 8 employs fewer than five full-time oil and gas air inspectors for the entire six-state region.

Today, EDF and our allies implored the AQCC to fully adopt the NSPS standards for oil and gas operations and called on the Hickenlooper administration and the legislature to give state agencies the resources they need so they can provide effective oversight of the industry.

Oil and gas activity continues to grow at a breakneck pace in Colorado, and it is imperative that we take quick action to make sure it’s being done right.  Doing it right means not only putting strong standards in place, but also making sure our oversight agencies have the resources they need to ensure communities and our environment are protected.

To read the testimony we and our colleagues filed on this issue, click HERE.

Posted in Natural Gas / Tagged | Read 1 Response

Standing Or Elbow Room In The Energy Sector?

GridWeek 2012 convened earlier this month in Washington D.C., and as a first time attendee, I left breathless and hopeful – yet confused – by inexplicable lingering complacency.  Unbeknownst to me, by agreeing to be a panelist in two sessions, I was setting up a comparative experiment. For the first panel, I spoke on “New Utility Business Models” to a packed room of the glimmer-eyed new energy intelligentsia, which is what makes GridWeek so exciting. In the later days of the conference, about a dozen GridWeek participants interspersed amongst a room of mostly empty seats to hear my panel presentation on “Smart Grid’s Role in New Air Quality Standards.”      

It would seem that I, and the handful of attendees at the air quality panel, see the productive overlaps between air quality standards compliance, smart grid and new utility revenues.   There are several ways that smart grid provides a value proposition for utilities faced with increasingly stringent air quality regulations, most recently the Mercury and Air Toxics Standards (MATS) rule. Here’s a short, but by no means comprehensive, list of both synergies and potential tensions:

  • Renewable Portfolio Standards (RPS): Smart grid supports achieving higher and higher proportions of intermittent, non-dispatchable renewable electricity generation.   Achieving high levels of RPS will be expensive unless we can use new strategies to manage intermittency and power quality.  New pricing structures for utility services can provide incentives to invest on both sides of the meter, and open the door for historically hidden utility services (such as voltage regulation) to be priced and sold.  For incumbent utilities, there is an opportunity to identify and price network services that traditionally have been bundled into rates.
  • Electric Vehicles (EV):  EVs are an important new frontier for utilities, and like most frontiers, offer both promise and peril.  Overloaded distribution networks might keep the utility engineers up at night, while the emerging new customer class has utility shareholders thinking like venture capitalists.  Though still small in number, EVs are quickly driving utility planners and system operators toward a fork in the road. Do we provide safe reliable service to new and existing customers using expensive dirty methods of the past (i.e., more big power plants) or do we take a deep breath (of cleaner air) and trust in the power of the people by embracing distributed energy resources?  
  • Distributed Energy Resources (DER):  Rooftop solar, energy efficiency, and demand response, collectively known as distributed energy resources, unquestionably can provide the low cost, clean pathway towards both energy independence and a sustainable economy.  However, DER is harder to plan and dispatch, and it threatens the traditional utility business models of incumbent institutions.   In California, net energy metering policy has been an important ignition switch, fueled by the California Solar Roofs Initiative, but these successful policies need to evolve to achieve DER at larger scales.   Again, the key is precisely pricing the goods and services on both sides of the meter.  Utilities should be paid for power quality and storage services provided to owners of rooftop systems, while electricity from those rooftops should be priced fairly to provide incentive to invest.
  • Clean air standards:  Oxides of nitrogen, particulate matter, acidifying compounds and carcinogens, such as mercury, are the power sector’s long-time emissions concerns.  Across the nation, electricity generators must hold permits to pollute and tradable emissions allowances that must be acquired at nontrivial prices.   Starting in 2013, California electricity generation that emits global warming pollution will have an associated cost –carbon allowances in the state’s cap-and-trade program.  Already, polluters in Southern California must acquire emissions allowances for the RECLAIM program, and power plants nationwide must comply with the acid rain emissions allowance program established in the Federal Clean Air Act .  Similarly, the Regional Greenhouse Gas Initiative (RGGI) program puts a price on carbon emissions for nine northeastern states, and the Western Climate Initiative is endeavoring to do the same for West Coast states and Canadian provinces.  These programs use emissions allowances that are fungible and tradable, yet they represent real costs – and thus economic opportunity when avoided.  Pollution pricing is changing business models throughout North America.    But there is more to come.  For example, improved environmental performance enabled by smart grid technologies, such as increasing DER, presents new avenues to meet air quality requirements.  For the Environmental Protection Agency (EPA) and other oversight agencies, the ability to measure, verify and enforce DER is key to granting compliance credit, and such capabilities are increasingly cost-effective with smart grid deployment. 
  • Consumer empowerment:  The mobile phone revolution is a prelude to what may be possible once consumers and producers begin to see true pricing in the energy marketplace.  While load-serving entities can find new revenues through services, consumers and entrepreneurs will be motivated by new ways to make a buck, or avoid spending bucks through unnecessary energy waste. 

The new smart grid business frontier has, in fact, many frontiers.  The California Public Utilities Commission conceived of an electricity ecosystem comprised of smart consumers, smart markets and smart utilities.  Utilities are trying to find their new niche within the ever changing food web, and all ears are perked for new opportunities.  That’s why only standing room was available in the business model panel session at Gridweek.

Meanwhile, in the air quality session of GridWeek, there was plenty of elbow room.EPA is considering flexible strategies for meeting new emissions standards for carcinogens.  Many utilities are operating in permit constrained areas that fail to meet National Ambient Air Quality Standards.  Enlightened utilities are seeing demand-side strategies as increasingly viable with smart meter deployment, and a means to improve returns to shareholders.  Performance-based rate of return can be structured to both reduce sales of energy to customer and to improve utility earnings. 

Gridweek revealed to me that many are educating themselves about new business opportunities, but precious few have the connected the dots to air quality improvements.   If I could, I’d bet on the folks who attended both sessions.

Posted in Energy Efficiency, Grid Modernization, Renewable Energy, Washington, DC / Read 1 Response