Energy Exchange

Jack Gerard And American Petroleum Institute: Deceiving Congress

By Mark Brownstein / Published: September 30, 2013

This commentary originally appeared on our EDF Voices blog.

Source: WCN 24/7 Flickr

Given the widespread press coverage of the release of the University of Texas methane emissions study, we shouldn’t be surprised that Jack Gerard, CEO of the American Petroleum Institute (API) is spinning a false story about its results. In an email to leaders in Congress, Gerard tells them that there’s nothing to worry about. Methane pollution from gas production is low and getting lower. Wrong.

What the study really said is that technology to reduce methane pollution in the transition from drilling a well to full scale production can be very effective at reducing methane emissions when it is deployed – emphasis on when. This is one of the important points Gerard misses, as no national accounting exists to show U.S. producers currently use these methods as a matter of widespread industry practice.

Gerard also conveniently did not tell Congress that the low wellhead emissions detected by the study are the result of EPA regulations adopted last year – rules API lobbied hard to weaken. Gerard further did not explain to Congress that these regulations don’t apply to all unconventional gas production today. Meaning the UT study is not an example to of “problem solved, we can all go home.” Read More »

Posted in Natural Gas / Comments are closed

Setting the PACE on Clean Energy Finance

By Brad Copithorne / Published: September 26, 2013

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

I spend most of my time working to establish On-Bill Repayment programs that allow property owners to use their utility bill to repay loans for cost-saving energy efficiency or renewable energy upgrades. Many of my colleagues work on a similar program known as Property Assessed Clean Energy (“PACE”), which uses the property tax bill for repayment. Since both utility and property tax bills are usually paid, both PACE and OBR are expected to lower the cost and increase the availability of financing for clean energy projects.

Last week, I was invited to attend a meeting of the leading PACE program administrators, property owners and other market participants in the country — and was pleasantly surprised to learn how much progress is being made.

Connecticut launched their program in January and is expected to close $20 million of PACE transactions for commercial properties by year end. The Toledo, Ohio area expects to have executed $18 million of commercial transactions by the end of 2013. Sonoma County, with a population of less than 500,000, has already completed $64 million of financings for residential and commercial properties. In late 2012, CaliforniaFIRST launched a PACE program for commercial properties that has already received 130 applications.

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

A New Study Measures Methane Leaks In The Natural Gas Industry

By Mark Brownstein / Published: September 18, 2013

This commentary originally appeared on our EDF Voices blog.

Source: Penn State Outreach/flickr

Earlier this week, a prestigious scientific journal, the Proceedings of the National Academy of Sciences (PNAS) published “Measurements of methane emissions at natural gas production sites in the United States.” This study is the first in a comprehensive research initiative that Environmental Defense Fund is helping to produce with more than 90 partner universities, scientists, research facilities and natural gas industry companies. This effort, the largest scientific undertaking in EDF’s history, is an unprecedented attempt to measure where and how much methane is being released across the entire natural gas supply chain.

By the time the work is finished, around the end of 2014, scientists working with EDF will have completed sixteen studies characterizing methane emissions in five key areas of the natural gas system: production, gathering and processing,transmission and storage, local distribution and use in operating and fueling heavy and medium weight trucks.

The study that published Monday was led by Dr. David Allen of the University of Texas at Austin (UT) and is based on some of the first-ever direct measurements of methane emissions from shale gas wells that use hydraulic fracturing, or “fracking.”

Posted in Natural Gas, Texas / Tagged EPA, fracking, Natural Gas | Comments are closed

On-Bill Repayment In California: A Step Forward And A Missed Opportunity

By Brad Copithorne / Published: September 17, 2013

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

Yesterday, the California Public Utilities Commission (“CPUC”) updated their June 25 proposed decision that included implementation rules for an On-Bill Repayment (“OBR”) program for public and commercial properties. An OBR program allows property owners to finance energy efficiency upgrades on their buildings and repay the obligations through their utility bills. Banks and other private investors provide the funding and borrowers get low interest rates because the obligations are an integral part of the utility bill and, under the EDF proposal, are fully transferable upon change in ownership or occupancy.

The CPUC’s revised decision contains many of the elements necessary for a successful program including making the OBR obligation an integral part of the utility bill through a tariff. Ed Wojtowicz, VP of Finance at Honeywell recently told me, “By integrating the financing charge into the utility bill, we expect that OBR will help many towns, cities and school districts approve money saving energy efficiency projects.” We have heard similar sentiments from other market participants and are optimistic that this OBR program will accelerate money-saving clean energy investments in municipal and school properties.

Unfortunately, our California utilities — PG&E, SoCal Edison and Sempra — have been fighting OBR tooth and nail for the past two years, as they fear that a successful OBR program would increase investment in distributed solar, potentially reduce utility control of energy efficiency programs and allow other companies to have access to the utility bill and customer relationships. Over the past three weeks, the utilities have had ten separate private meetings with CPUC commissioners or staff in an attempt to halt the OBR program.

Posted in On-bill repayment / Comments are closed

Natural Gas And The Methane Problem: Study Shows Climate Benefit Depends On Fixing The Leaks

By Dan Grossman / Published: September 16, 2013

Methane, the primary component of natural gas, is a powerful greenhouse gas – 72 times more potent than carbon dioxide over a 20-year time frame. The largest single source of U.S. methane emissions is the vast network of infrastructure and activity involved in the production, processing and delivery of natural gas. These emissions, if not controlled, pose a significant risk to the climate. In the near term, the opportunity to maximize the climate benefit of natural gas compared to other fossil fuels rests on whether methane emissions can be minimized.

A groundbreaking study released today demonstrates that some operators have been successful in deploying technologies and strategies to minimize methane emissions from production, creating optimism that we can make the natural gas climate bet payoff. However, we also know that such technologies and strategies are not universally deployed in the industry and, not surprisingly, other studies demonstrate much higher methane leakage rates.

We simply need to be vigilant to ensure that such production is done right.

The University of Texas study, published in the Proceedings of the National Academy of Sciences, involved taking direct measurements of actual methane emissions – as opposed to estimating emissions through indirect methods such as engineering formulas, as has often been the case in earlier studies. Measurements were taken at well sites in multiple geographic regions – including the Rocky Mountain West. It is the first of 16 studies EDF is participating in to assess the scope of methane leakage throughout the natural gas supply chain (from production on through to local distribution and key end users). Read More »

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

The Nuts And Bolts — Or Rather Watts and Volts — Of The Energy-Water Lingo

By Kate Zerrenner / Published: September 16, 2013

A glossary of energy and water terms

In recent posts I’ve discussed the need for energy and water planners to co-manage resources more comprehensively. But another significant barrier exists: language. Water and energy planners use different terminology and a lack of understanding for these distinctions hampers true coordination. Also, it prevents customers from understanding how to make sense of their own usage patterns and maximize energy and water efficiency.

Electricity measurements

Getting into the nuts and bolts — or watts and volts — of the issue can get very dry very quickly, so let’s go over some basic units of measurement to set the stage.

Electricity is measured in watts, usually represented as kilowatts (kW), megawatts (MW), but often discussed as megawatt-hours (MWh). One MW is roughly equivalent to ten running cars engines. A MWh is the total amount of electricity produced by a power plant in one hour, roughly the amount of energy used by 330 homes in one hour. According to the U.S. Energy Information Administration (EIA), in May 2013, Texas generated 12,261 gigawatt-hours (GWh) of electricity from coal-fired power plants (1 GWh = 1,000 MWh) and only 4,116 GWh from renewable energy sources, such as wind and solar.

Posted in Energy Efficiency, Energy-Water Nexus / Tagged Energy-Water Nexus | Comments are closed