Energy Exchange

Caught On Film: Watch How AT&T, QTS & New York City Housing Authority Saved Energy

This commentary was originally posted on the EDF Business Blog

It sounds so simple:  saving energy saves money.  McKinsey & Company estimates that the U.S. could reduce its annual energy consumption 23 percent through efficiency measures, cutting greenhouse gas emissions by over a gigaton and saving both companies and consumers over a trillion dollars.

So why do we as a nation still waste so much energy?  And how do we stop? The fact is organizations face many barriers to implementing energy-saving projects, which have nothing to do with technology and everything to do with the way people make decisions.

One of the most common challenges is the lack of information.  So in the holiday spirit of sharing, we worked with three of our EDF Climate Corps hosts to tell the story of how they are capturing their piece of that trillion-dollar opportunity.

AT&T, QTS and the New York City Housing Authority (NYCHA) welcomed EDF’s cameras into their facilities and spoke openly about the energy efficiency projects they’ve got in the works. Together, we compiled a series of videos spotlighting successful projects in lighting, cooling, heating and data centers.

Here’s a quick rundown of featured projects along with a link to each video:

  • AT&T worked with EDF Climate Corps to uncover potential savings of up to 50 percent associated with cooling costs at 250 of AT&T’s facilities by using a technique called “economizer mode” – a process in which cool external air replaces the need for mechanically chilled air during cool months.
  • AT&T also worked with EDF Climate Corps to find ways to cut its lighting energy use by 80 percent. A project that is now being rolled out across its 250 largest central offices.
  • Data center provider QTS worked with EDF Climate Corps to optimize efficiency in its LEED Gold datacenter and reduce annual costs by $4 million. The company plans to invest $10 million to implement these projects.
  • New York City Housing Authority worked with EDF Climate Corps to analyze the energy savings potential of installing Wireless Energy Modules across its portfolio. The EDF Climate Corps fellows found that the project would lead to more consistent, comfortable temperatures for residents, save $56 million in NYCHA’s annual costs and avoid 177,000 metric tons of CO2 emissions each year.

AT&T, QTS and NYCHA have all helped get the word out about how they’re maximizing energy opportunities. AT&T recently shared insights on potential savings at 250 facilities; QTS announced a plan to invest $10 million in energy efficiency projects at the world’s second largest data center; and New York City Housing Authority announced its mission to spur public housing authorities and private landlords around the nation to make smart energy investments.

You can help share these lessons too. Send a video along to a company, city, or university you know, to help them cut costs and carbon emissions in a big way.  Or tell them about EDF Climate Corps, which has uncovered a billion dollars in energy savings for participating organizations in its first four years.  We’re recruiting now for 2012 — visit edfclimatecorps.org to learn more.

EDF Climate Corps places specially-trained MBA and MPA students in companies, cities and universities to develop practical, actionable energy efficiency plans. Sign up to receive emails about EDF Climate Corps, including regular blog posts by our fellows. You can also visit our Facebook page or follow us on Twitter to get regular updates about this project.

Posted in EDF Climate Corps / Tagged | Read 3 Responses

Top 10 Clean Energy Stories Of 2011

Although we have said goodbye to 2011, the advances and achievements in clean energy last year have propelled us into 2012 and will only become more widespread and successful with each passing year. As Steven Lacey at Climate Progress points out in his “Top 10 Clean Energy Stories of 2011”, it was an “odd” year for the clean energy sector, but with great successes. While public demand favors a move to a clean energy economy and environmental sustainability necessitates it, some politicians and their corporate cronies are doing their best to demonize and stall the inevitable leap forward. The reasons why there is obstruction are obvious but it still is a pretty bad calculation and ultimately they are on the wrong side of history. My colleague Colin Meehan responded just a few weeks ago to Grover Norquist’s ill-informed rant against renewable energy. But once we break through the noise and distraction, the reality of what the future holds becomes encouraging. While deniers love to isolate the Solyndra scandal as their defining proof that we must keep and accelerate fossil fuels, it hardly defines the activity and achievements on the ground. In fact, as Lacey articulates, there are much better parameters to judge the new energy revolution:

1.     Renewable Power Investments Top Fossil Fuels for First Time

According to Bloomberg New Energy Finance, “electricity from the wind, sun, waves and biomass drew $187 billion last year compared with $157 billion for natural gas, oil and coal.” And they project that renewable energy investments will “double over the next eight years and reach $395 billion per year.”

2.     Cost Reductions Make Solar PV Competitive

While complete grid parity will be more of a phased process than a singular result, according to Tom Dinwood, CTO of SunPower, Dan Shugar, CEO of Solaria, and Adam Browning, Executive Director of Vote Solar Initiative, “solar PV is no longer a fringe, cost-prohibitive technology, but rather, a near-commodity that is quickly becoming competitive with nuclear, natural gas, and soon coal.”  Solar power is quickly becoming more than cute.

3.      Regional Greenhouse Gas Initiative (RGGI) Is A Success

As the aforementioned deniers (in this case the Koch Brothers front group Americans for Prosperity) cried wolf about the RGGI, claiming it would “inflate bills 90% in New Jersey,” the reality of the situation was much different –“RGGI generates greater economic growth in every one of the 10 states that participate than would occur without a carbon price.” This is from a new report, which found that “America’s first mandatory, market-based carbon cap and trade system added $1.6 billion in value to the economies of participating states, set the stage for $1.1 billion in ratepayer savings, and created 16,000 jobs in its first three years of implementation.

4.     Pension Funds & Large Companies Invest Big in Energy Efficiency

Further proving you can bet on energy efficiency projects to pay off, two of the largest US pension funds, CalPERS and CalSTERS announced in September they would invest $1 billion toward efficiency projects. In June, the AFL-CIO and the American Federation of Teachers announced over $150 million in similar investments, which utilize product retrofits that have over 90 percent of the content made right here in the USA. “If we retrofitted just 40 percent of the nation’s residential and commercial building stock, we would mobilize a massive amount of domestic labor— more than half a million (625,000) sustained full time jobs over a decade. This would generate as much as $64 billion per year in cost savings for U.S. energy ratepayers. That’s means $300 to $1,200 in savings for individual families.” These are wise investments that “out-perform investments in new oil and gas exploration as a form of job creation or economic stimulus by a factor of 3-to-1.”

5.     Geothermal Potential is Massive

Texas’ own SMU recently released a map that shows how much “potential [geothermal] energy is locked beneath America.” While there is still a lot of ground to cover, so to speak, in realizing this resource, we at least know that under our feet lies a huge source of impending power.

6.     Green Jobs Reach 2.7 Million

While much of the economy has declined and stagnated over the last few years, green jobs have actually increased, with the “clean economy growing by 8.3% from 2008-2009 — almost double what the overall economy grew during those years.”  Not only is this providing jobs in the sectors of energy, transport, building, etc. they are better paying jobs as well at “$7,727 more than the median wages across the broader economy.

7.     Google Phases Out Clean Energy R&D in Favor of Deployment

(credit: www.thinkprogress.org)

While it was reported that Google was abandoning renewables, the media failed to accurately depict the situation. The truth is that Google is “now shifting its focus to project financing rather than R&D, citing the need for more sophisticated research on CSP technologies beyond Google’s scope, and the rapidly changing economics of solar PV switched.” This includes investing more than $850 million in renewable technologies.

8.    America is a $1.9 Billion Exporter of Solar Products

Despite the notion that China is outperforming the U.S. in this field, a report from GTM Research and the Solar Energy Industries Association found that the U.S. has a $247 million trade surplus with China.  Here is a great chartto illustrate:

9.     What Free Market? Subsidies Have Always Been a Big Part of Energy Industry, New Report Shows

This one is pretty self explanatory and frankly, states the obvious. I don’t think we needed a study to tell us that the fossil fuels lobby on Capitol Hill has a pretty good ROI. But it’s always nice to have backup. There is really no clearer depiction of hypocrisy than with the false outrage, served with a little red herring on the side, associated with the Solyndra scandal (as mentioned above).  While railing against subsidies for clean energy, these same politicians are not only all too willing to subsidize fossil fuels but prior to politicizing it, were keen on renewable energy monies as well.  As Lacey points out, “apparently, many in Congress have forgotten about the last 100 years of government investments in oil, gas and nuclear — all of which have far outpaced investments in renewable energy like solar PV, solar thermal, geothermal and wind.” To be clear, “energy industries have enjoyed a century of federal support. From 1918-2009, the oil and gas industry received $447 billion (adjusted for inflation) in cumulative energy subsidies. Renewable energy sources received $6 billion (adjusted for inflation) for a much shorter period from 1994-2009.  There is a striking divergence in early federal incentives. For example, federal support for the nuclear industry overwhelms other subsidies as a percentage of federal budget, but equally striking is the support for oil and gas which was at least 25% higher than renewables, and in the most extreme years 10x as great.

10.   Being Anti-Clean Energy is Bad Politics

Despite all the findings listed in this blog, for some reason those with a vested interest in maintaining the fossil fuel polluting status quo just don’t get it! Americans want to be free of fossils and want to embrace the new energy revolution.  According to a poll by the non-partisan Civil Society Institute, “77% of Americans— including 65% of Republicans surveyed — believe ‘the U.S. needs to be a clean energy technology leader and it should invest in the research and domestic manufacturing of wind, solar and energy efficiency technologies.’” And as a segue from number 9 on the list above, the poll found that, “Americans support subsidies for renewable energy over fossil energy 3 to 1. When asked to choose between only subsidizing clean energy or fossil energy, 38% of respondents said they’d choose renewables, while 13% would choose fossils.

2012 is going to be an intense year. February brings us a leap on the 29th, politicians will be battling each other leading up to November, and then a new sun begins, according to Mayan tradition a month later on December 21st. Let’s hope that the clean energy momentum continues and that the will of the people and the condition of the environment that sustains us all is truly at heart. The future looks so bright!

Posted in Climate, Energy Efficiency, Renewable Energy / Read 1 Response

ERCOT Reliability: “It’s Complicated”

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

It seems like only yesterday that ERCOT was issuing dire warnings of rolling blackouts as a direct result of regulations required by the court system to ensure cleaner, healthy air for Texans and our neighboring states.  Well, maybe not yesterday, but at least as recently as this month.  Buried deep within the report was ERCOT’s tacit acknowledgement that they have allowed companies to idle more than 1,000 MW of power plants because those plants are not economic in today’s hyper-competitive market.

Source: Texas Tribune

Of course, no announcement made as much news as Luminant’s claim that they were shutting down two of their Monticello lignite power plant units in response to EPA regulations.  Those claims have been pretty well debunked over the last few months as people began to realize that market economics and poor planning were responsible for Luminant’s decision.  As we discussed in September, it was as convenient for Luminant to blame the EPA as it was reflexive of Texas politicians and regulators to threaten rolling blackouts as a result of Luminant’s decision.  ERCOT’s decision to let other power plants shut down for economic reasons calls those claims into serious question, and their recent decision (password required) that idling the Monticello units at the heart of this debate  does not threaten system reliability will hopefully end this cycle of unfounded recrimination and backtracking.

As ERCOT has made clear, the real threats to system reliability are of our own making: market failures have lead to a lack of proper signals to encourage the building of new power capacity; and this year’s record breaking drought, made more extreme by climate change, has threatened to shut down more than 11,000 MW of power plants.  What all of this means is that ERCOT’s reliability issues are far more complicated than a political slogan, and getting rid of sensible regulations that protect our children, elderly and general population from real health risks will do nothing to solve our problems. 

Instead of focusing on the easy political score, our leaders should be looking for real solutions that don’t pose risks to human health or to our water supply.  The solutions are out there: dry-cooled power plants, energy efficiency programs like demand response, as well as wind, solar and other non-water consuming renewable energy. 

The most recent decision by ERCOT that idling Luminant’s power plants poses no threat to grid reliability should end the cycle of unfounded accusations for political gain.  It should focus our state leadership on solutions that will work instead of distractions that only delay solving the problem.  It should also serve as a signal to those who are all too ready to accept unfounded claims for the sake of a good story or a convenient target. When it comes to ERCOT and reliability, the issues are complicated, but the solutions are out there and it will take real focus and effort to prevent Texas from experiencing the same rolling blackouts we had last winter.  It’s winter again (even if it’s just barely starting to feel like it), and next summer looks to be another scorcher. We don’t have a lot of time, so let’s get to work.

Posted in Grid Modernization, Texas / Tagged | Comments are closed

A Response To Attacks On Renewable Energy

Grover Norquist asks us to “rethink” renewable energy, and I think he may be right.  But we differ on the best way to do that.

He seems to think that Renewable Portfolio Standards (RPS) and similar policies that level the playing field and create markets for renewable energy are “unfeasible,” as opposed to the current subsidies and rules that heavily favor fossil fuels.  In his op-ed, Norquist manages to wax poetic about free markets while dodging the billions of dollars in subsidies for fossil fuels and numerous impartial analyses that illustrate how renewable energy saves money for customers and adds much needed revenue to state budgets.

Obscuring the Facts
A recent analysis found that the five states with the highest amount of renewable energy (states that are encouraged by the policies Norquist asks us to rethink) have lower electric rates than the states with the least amounts of renewable energy.  In 2009 the Texas PUC declared that the state’s national leadership in wind energy, driven by their RPS, “has had the impact of lowering wholesale and retail prices of electricity.”  The Texas State Comptroller said, “After the RPS was implemented, Texas wind corporations and utilities invested $1 billion in wind power, creating jobs, adding to the Texas Permanent School Fund and increasing the rural tax base.”

The story is similar in Colorado where, according to the American Wind Energy Association, the state’s RPS supported a total of 5,000-6,000 direct and indirect jobs, generating $7 million in state revenue and $4 million in leasing revenue for landowners who benefit from the policy.  Still, Norquist chooses to focus on a report – not yet released at the time of this writing – by the Beacon Hill Institute, a conservative group founded by Republican politician Ray Shamie, to support some rather speculative claims.  

“Choose Your Own Free Market”
Much like the old “Choose Your Own Adventure” children’s books, the fossil fuel industry would very much like to choose their own free market, one that gives fossil fuels an unfair advantage over all other resources.  Leaving the discussion there would simply perpetuate the junk science cycle that benefits the fossil fuel industry and their attempts to distract from the massive amounts of federal subsidies that these companies claim they need to continue operations.  A discussion on their terms would ignore the very real health impacts fossil fuel use has on infants, pregnant women, the elderly and the general population.   

Fossil fuel use directly impacts human health and we subsidize fossil fuels heavily through increasing health care costs and other expenses. A recent report from Harvard Medical School found that these unwitting subsidies cost us $345 billion annually in emergency room visits, health impacts, loss of life and loss of tourism income among other impacts.  A true free market is one in which industry takes responsibility for the costs it imposes on society.  In this sense, the fossil fuels industry has failed miserably.

Growing Faster Than the Rest of the Economy
While fossil fuels have increasingly clear health costs, the ways in which clean energy production helps the U.S. economy are becoming clearer as well.  According to a study from the non-partisan Brookings Institute, renewable energy jobs – and clean tech jobs in general – have grown at a much faster pace than the rest of the U.S. economy, driven largely by state policies like the RPS (the only exception being hydropower).  Solar jobs alone have doubled in the U.S. to 100,000 since 2009; many of these local installation and service jobs cannot be exported.  Last year alone, U.S. solar energy installations created a combined $6 billion in direct value, $4 billion of which was accrued to the U.S.  Furthermore, Jackie Roberts, Director of Sustainable Technologies at EDF, recently wrote that the U.S. was a significant net exporter of solar energy products when the entire value chain is accounted for, with total net exports of $2 billion in 2010.

A Non-Partisan Issue
Perhaps it’s wishful thinking on Norquist’s part, but he certainly knows about renewable energy’s long history as a non-partisan issue – one where nationally recognized conservative Republicans like Texas Gov. Rick Perry and Kansas Gov. Sam Brownback have publicly supported the same policies that Norquist decries.  Polls across the country show strong voter support for renewable energy, reaching across political ideology and party lines.  In fact, the most recent Republican President and the previous Governor of Texas created the most successful Renewable Portfolio Standard in the country and reportedly consider it one of their proudest achievements in Texas.  Speaking in Dallas last year at the American Wind Energy Association’s annual conference, former President Bush noted that “when we diversify our energy supply, we create jobs.”

Mr. Norquist asks us to rethink renewable energy, and I think he may be right. Recently, fossil fuel industry-funded attacks on renewable energy have grown, which makes me think they are beginning to feel the pressure from cleaner renewable energy with no fuel cost.  Pseudo scientific claims like those found in Norquist’s op-ed make front page news while the incredible growth rates of renewable energy projects and jobs in the U.S. barely make the back page, which leads me to believe that the media is more focused on reporting controversy than facts.  The public remains committed to clean energy, while public officials waver, seeking to catch the political wind.  All of this makes me think that we need to recommit to a cleaner energy future with less pollution, healthier children and more local jobs.

Posted in Renewable Energy / Tagged | Read 2 Responses

First Of Its Kind Non-Profit Network On Carbon Capture And Sequestration Launched

Last week, Environmental Defense Fund (EDF), along with eight other environmental advocacy organizations, announced the launch of the Environmental NGO Network on Carbon Capture and Sequestration (CCS) – a collaborative effort to ensure domestic and international policies and regulations allowing for CCS ensure that the highest standards are met for public safety, atmospheric and environmental protection.

Right now, CCS projects are being developed by some of the world’s biggest energy and oil companies, and international negotiations are looking to provide carbon credit opportunities for use in carbon control regulations.  The CCS Network will serve as a communications medium between EDF and other member environmental organizations as we work towards a responsible CCS industry, enabling the world’s top experts from the NGO community to contribute and share ideas. 

New CCS projects represent an opportunity for long term carbon reductions, though they must adhere to best operational and environmental standards to enable long-term success.  The CCS Network will work together to find common ground on CCS-related efforts and work toward ensuring responsible development.

For more information about the network, visit: www.engonetwork.org.

Posted in General / Tagged | Comments are closed

Colorado Sets The Bar On Hydraulic Fracturing Chemical Disclosure

Big news out of Denver this morning

Source: WLF

After weeks of intense wrangling between industry and environmental representatives, the Colorado Oil and Gas Conservation Commission (COGCC) adopted a hydraulic fracturing fluid chemical disclosure rule that, in many ways, serves as a model for the nation.

It’s been a learning process these last couple of years – as EDF has worked to get disclosure policies adopted in the states.  With their own disclosure rules, Wyoming, Arkansas, Texas and Montana have all made important contributions to the debate.  And in Colorado, we’re finally seeing things start to coalesce.

Colorado’s Rule 205A settles key questions about what kinds of information the public expects to see and how the information should be presented, including:

Requirements for Searchable Database

Picking up on a recommendation from the shale gas subcommittee of the U.S. Secretary of Energy Advisory Board (a panel on which EDF President Fred Krupp served), the Colorado rule requires chemical information to be made available on a website that allows people to search and sort data by company, chemical ingredient, geographic area and other criteria.

This is a big step that will allow land owners, neighbors, regulators and policymakers to focus and refine their questions and research about hydraulic fracturing.

We’re also fans of the fact that the rule requires operators to post their disclosures on Frac Focus, which must be made searchable by January 1, 2013.  If Frac Focus doesn’t have these upgrades in place by then (or isn’t clearly on a path to do so), the rule requires the COGCC to build its own searchable database.

The creators of Frac Focus – the Ground Water Protection Council (GWPC) and the Interstate Oil and Gas Compact Commission (IOGCC) – are already talking about searchability, and the Colorado rule provides a clear signal that the states want to see it happen and happen soon.

(The Texas disclosure rule, which was also adopted today, uses Frac Focus as the disclosure platform, but doesn’t require searchability.  In adopting the rule, the Texas Railroad Commission agreed that Frac Focus should be made searchable and said it would work with GWPC and IOGCC to make those upgrades).

Full Disclosure of Chemical Ingredients

Colorado also set a national standard by requiring disclosure of the identities and concentrations of all chemical ingredients, not just those that have been determined to be “hazardous” according to Occupational Safety and Health Administration (OSHA) regulations.  Other states have taken the step of requiring disclosure of the identities of all chemicals, but Colorado is the first to require disclosure of both chemical identities and concentrations for all chemicals.

As readers of our blog posts on fracturing fluid disclosure know, just because a chemical hasn’t been identified as “hazardous” under OSHA Hazard Communication rules, it doesn’t necessarily mean the chemical isn’t dangerous.  OSHA regulations require that chemicals be identified as hazardous when studies show they could be dangerous in a workplace setting.  These regulations don’t look at the question of whether a chemical might be dangerous if exposure occurs through an environmental pathway.  Moreover, a chemical might be dangerous in both a workplace setting and through environmental exposure – but if the studies haven’t been done yet, OSHA regulations don’t require you to list it as hazardous.

According to industry, at least half of the chemicals used in hydraulic fracturing fluids don’t fall under these OSHA Hazard Communication rules.  And toxicological data on many, if not most, of these chemicals is very thin.  So requiring full disclosure of hydraulic fracturing chemicals is a critical first step toward building up our understanding of the risks they may present.

The Colorado disclosure rule isn’t perfect, but it’s darn good.  And with the provisions for searchability and full chemical disclosure, it has set a national standard on two key issues.

Posted in Natural Gas / Read 1 Response