Energy Exchange

The BLM rule should be in effect – what happened and what’s next?

January 17th should have been a positive milestone for Westerners and all Americans as limits on the unnecessary waste of American taxpayer-owned natural gas were slated to go into effect. Instead, Secretary of the Interior Ryan Zinke, who has repeatedly shown that the least responsible companies in the oil and gas industry have his ear, has suspended this rule and greenlit the waste of millions of taxpayer dollars that could have gone to infrastructure, roads, education, and more.

The careless act is part of a pattern from Secretary Zinke and the Trump administration of misusing taxpayer resources and cozying up to the most egregious polluters. Even worse, the administration defended its efforts to remove the “burden” of involving the public in decision-making on public lands in a House Natural Resources Subcommittee hearing.

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

New federal tax law is a boon for electric utilities – another reason not to bail out Ohio’s coal and nuclear plants

BLOG UPDATE – FEBRUARY 16, 2018

Environmental Defense Fund and other environmental groups submitted comments [PDF] to the Public Utilities Commission of Ohio on the federal tax reform, and why the Commission should reconsider utilities’ requests to increase rates to help prop up their old coal and nuclear plants. The groups suggest the utilities should pass the savings back to customers and, in addition, consider using some of the funds to modernize the electric grid and benefit customers.

For the past few years, Ohio’s electric utilities have asked state lawmakers and the Public Utilities Commission of Ohio (PUCO) to bail out their old coal and nuclear plants. The storyline is, the power plants are losing money in the competitive wholesale market, so the utilities want customers to subsidize the losses and allow the plants to stay open.

To keep old plants running is throwing good money after bad. And the new federal tax law will give utilities a huge bonanza anyway, so the requested subsidies are even more unnecessary.

Tax breaks and bailouts

The new federal tax law is a jackpot for electric utilities. Congress passed the Tax Cuts and Jobs Act in late December, reducing the corporate income tax rate from 35 percent to 21 percent. For the regulated businesses, the tax cut should benefit customers via lower electricity bills. But for the utilities’ unregulated businesses, the tax cut will benefit the utilities’ shareholders. Read More »

Posted in FirstEnergy, Ohio / Read 3 Responses

Texans for Natural Gas uses misleading data on methane in Texas

Recently, Texans for Natural Gas (TXNG) issued a report claiming methane emissions have drastically decreased in several of the largest natural gas producing counties in Texas from 2011 to 2016.

The notion of methane emissions rapidly declining across Texas during the largest U.S. oil and gas boom of the century is described in the report’s blog post as amazing, which in fact it would be if the report were accurate. It isn’t. The TXNG report doesn’t even come close to providing a complete representation of methane emissions across the featured Texas counties. TXNG claims methane emissions declined 51 percent in several of the state’s largest producing natural gas counties, and 39 percent across ten of the largest oil-producing counties.

And here’s what data is missing: methane emissions generated from onshore production and gathering. Simply put, the vast majority of emissions aren’t even included. (What’s even worse, their original report failed to disclose that the emission data referenced in TXNG’s blog post only accounted for methane emissions from large midstream  gas facilities.) The revised report’s claims about 2016 reductions in Midland County only account for emissions from six processing plants and compressor stations while ignoring the over 2,000 oil and gas wells. Drawing broad conclusions from a tiny fraction of facilities is shoddy analysis at best and deliberately misleading at worst.

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

Trump kills solar jobs, taxes families and businesses, but he can’t kill solar competitiveness

With President Trump’s announcement this week to slap a 30 percent tariff on imported solar cells and modules, the solar industry once again finds itself in the firing line, targeted by the political whims of elected officials.

This political posturing has created uncertainty in the marketplace. In the last decade, solar has suffered from seven changes to the investment tax credit. And in the last few months, the industry got a double whammy of the BEAT tax – which will negatively affect equity investments in solar development – and the threat from the Department of Energy’s plan to prop up dirty coal while undermining solar. The tariff decision this week – a protectionist attempt by Trump to appeal to his anti-free trade base – is the latest assault on clean energy and a tax on American families, businesses, and utilities who want to go solar. Republicans once considered such actions a “tax on consumers.”

Despite these attacks, solar is still booming. Solar Energy Industries Association (SEIA) reports that in the last five years, the U.S. solar industry has attracted more than $100 billion in investment, realized year-over-year growth rates of 21 percent, and now employs more than 260,000 people. The tariff may slow the growth of solar, but it doesn’t kill its competitiveness. Read More »

Posted in Clean Energy, Energy Financing, Renewable Energy, Solar Energy / Read 1 Response

Innovative Illinois initiative seeks to make solar power available for all

We recently celebrated the one year anniversary of the monumental clean energy development package passed by the Illinois state legislature, the Future Energy Jobs Act. Environmental Defense Fund (EDF) joined forces with community-based organizations, fellow enviros, and clean energy industry representatives as part of the Clean Jobs Coalition to push for the historic bill, and now continues to work for its effective, efficient, and equitable implementation.

One of the many remarkable results of the legislation is the Illinois Solar for All program, created to increase access to the solar economy for economically disadvantaged communities and areas that meet program standards for designation as environmental justice (EJ) communities. In fact, the legislation allocates at least 25 percent of funds for three of the four subprograms (described below) to projects located in EJ communities.

The Solar for All program works by addressing the additional barriers these communities face when it comes to participating in renewable energy programs. By providing access to solar with no upfront costs, and a cash-positive experience (i.e. customers can positively manage their energy use and bills), the Illinois Solar for All program has the potential to transform how communities create, interact with, and benefit from clean energy. Read More »

Posted in Illinois, Solar Energy / Comments are closed

California says goodbye to its last nuclear power plant. What will replace it?

Last week, the California Public Utilities Commission (CPUC) issued a momentous final decision to close the state’s last nuclear power plant, Diablo Canyon. This outcome represents the culmination of over a year of effort initiated by Pacific Gas & Electric (PG&E) in 2016. When PG&E first brought this to the commission, they called for the closure because the plant had become uneconomic in the face of customers increasingly leaving the utility for Community Choice Aggregators, like CleanPowerSF, and a changing electric grid that relies more on flexible, distributed energy resources like wind and solar.

With its recent decision, the CPUC agreed with PG&E, stating that renewing Diablo Canyon’s license to operate beyond 2025 would not be cost-effective. Read More »

Posted in California, Clean Energy, Energy Efficiency / Read 9 Responses