Energy Exchange

Why EDF Is Working On Natural Gas

By Mark Brownstein / Published: September 10, 2012

Environmental Defense Fund (EDF) is often called upon by those opposed to natural gas development to support a ban or moratorium on drilling. They argue that fighting for tough regulations, as EDF is doing, helps ensure that natural gas development will take place. Some of our friends in the environmental community have questioned why we are working on natural gas at all. They suggest that we should simply oppose natural gas development, and focus solely on championing energy efficiency and renewables. We understand these concerns, and respect the people who share them. And for that reason, we want to be as clear as we can be as to why EDF is so deeply involved in championing strong regulation of natural gas.

Our view on natural gas is shaped by three basic facts. First, hydraulic fracturing is already a common practice in the oil and gas industry. Over 90 percent of new onshore oil and gas development taking place in the United States today involves some form of hydraulic fracturing, and shale gas accounts for a rapidly increasing percentage of total natural gas production—from 16% in 2009 to more than 30% today. In short, hydraulic fracturing is not going away any time soon.

Second, this fight is about much more than the role that natural gas may play in the future of electricity supply in the United States. Natural gas is currently playing an important role in driving out old coal plants, and we are glad to see these coal plants go. On balance, we think substituting natural gas for coal can provide net environmental value, including a lower greenhouse gas footprint. We are involved in an ambitious study to measure methane leakage across the value chain, and we’re advocating for leak reduction in order to maximize natural gas’ potential carbon benefit. We share the community’s concern that we not lose sight of the importance of energy efficiency and renewables, and are working hard to see that these options become preferred alternatives to natural gas over time.

But even if we were able to eliminate demand for natural gas-fired electricity, our economy would still depend heavily on this resource. Roughly two-thirds of natural gas produced in the U.S. is used as a feedstock for chemicals, pharmaceuticals and fertilizer, and for direct heating and cooling. Natural gas is entrenched in our economy, and championing renewables and energy efficiency alone is not enough to address the environmental impacts associated with producing it.

Third, current natural gas production practices impose unacceptable impacts on air, water, landscapes and communities. These impacts include exposure to toxic chemicals and potential groundwater contamination (due to faulty well construction or unsafe disposal of drilling wastewater), harmful local and regional air pollution, greenhouse gas emissions from unnecessary fugitive methane emissions and negative effects on communities and ecosystems. Whatever economic and environmental benefits natural gas may provide should never take precedence over or compromise the public’s right to clean water and clean air. Read More »

Shut Down The Texas Government (Power)!

By Marita Mirzatuny / Published: September 7, 2012

Source: Jon Rogers

These days it seems “shutting down” the government is a popular rallying cry in Texas. So, why not do it…er…or at least shut down the electricity when it’s not being used!?

As many of us enjoy the shortened work week due to the Labor Day holiday on Monday, I thought it would be a good time to look into what kind of demand response (DR) government buildings can participate in during holiday and seasonal closings.

We have discussed the benefits of both residential and commercial DR and governments can represent large or small entities depending on their size. The Texas Facilities Commission (TFC), responsible for “planning, providing and managing facilities for more than one hundred state agencies in over 290 cities throughout Texas,” has a current inventory totaling “24 million square feet of leased and state-owned properties.” Of that, offices make up about 6 million square feet across eight different cities.

These state agencies annually “consume over $200 million in electricity, which is procured and billed on thousands of separate accounts through various providers. In an effort to reduce these expenditures, the Office of Energy Management (OEM) is looking at ways to aggregate the State’s electrical load into fewer accounts, perhaps into just one. This strategic initiative could take advantage of negotiation opportunities, economies of scale, consolidation of facility loads and load scheduling resulting in the TFC saving thousands of dollars a year on electricity alone.”

Furthermore, the “OEM is taking a more expansive look at its resources, including purchasing, producing and distributing, and actual consumption. For example, it recently proposed aggregating the States electrical load to benefit from economies of scale, wholesale rates, reduced peak demand charges, and to acquire a more sophisticated rate structure and is currently studying the possibility of incorporating combined heat and power in its production.”

The TFC is also working with the General Land Office (GLO) to aggregate smaller state agency accounts to provide volume discounts for these accounts. Currently, smaller state agencies procure gas supplies from the local gas companies or in amounts from the GLO that do not render the economies of scale capable with the aggregate consumption with the TFC. By aggregating these smaller amounts, the TFC gets a better deal for the buildings under the TFC’s control and the other agencies. Read More »

Posted in Demand Response, Texas / Comments are closed

Recycling That White Plume Of Smoke On I-95

By Jackie Roberts / Published: August 30, 2012

Today, President Obama signed an Executive Order to facilitate investments in capturing waste heat and developing combined heat and power at many of our industrial facilities (“CHP” projects). This energy efficiency strategy can save manufacturers as much as $100 billion in energy costs over the next decade, and offers a type of “renewable” energy as the heat is already available, but too often vented to the atmosphere. According to Oak Ridge National Labs, many industrial operations have an efficiency of 45% or less; waste heat recycling can increase the efficiency of these systems to 80% by capturing waste heat and putting it back to work.

You may have never thought about waste heat, but you’ve probably seen it many times: visualize driving through an industrial area and seeing white smoke coming out of smokestacks. These plumes often comprise heat and steam, and thus represent a wasted resource that we should be capturing and converting to useable energy.

The Executive Order should spur prompt actions by federal and state agencies to facilitate projects. Examples of possible actions are streamlining state permitting, crediting projects toward state clean air requirements, sharing state best practices, and working to better engage utilities in partnering on projects.

CHP projects will not only help our industrial facilities save money on energy costs, but investing in these projects create jobs across a wide variety of businesses engaged in making components, designing and constructing systems, and operating the new energy resources. For example, a recent study by Duke University on recycling industrial waste energy highlighted the six main components needed in each project: boiler/steam generators, steam turbines, generators, condenser/cooling tower, steel piping and electrical parts such as wires and switchgear.

These components represent standard, high value components made by businesses across the U.S., particularly the Midwest and Texas, but also companies in Oklahoma, Georgia, Illinois, and Arizona. All of these components use smaller parts such as basic bearings, valves, fans, rotors, and so on, not to mention the extensive steel piping used in each project. One project in Port Arthur, Texas used 2.5 miles of steam pipeline – good news for the steelworkers.

In addition to the job of manufacturing all these parts, CHP projects require workers to install the components on-site, such as welders, pipefitters, design engineers, and traditional construction workers. On completion, often 15-20 new workers are hired to run the new steam plant/power facility. The CHP project developer, Recycled Energy Development, notes that the cost savings and increased competitiveness at a project completed for West Virginia Alloys enabled the plant to retain its entire workforce, rather than face job cuts of 20%.

So, every time you pass a white plume of smoke on the highway, be glad that today’s Executive Order moves us one step closer to eliminating this waste and helping America’s industries be more competitive.

Posted in Energy Efficiency, Washington, DC / Read 3 Responses

On-Bill Repayment In California

By Brad Copithorne / Published: August 30, 2012

This commentary was originally posted on the EDF California Dream 2.0 Blog.

Moving Forward with OBR for Commercial Properties

Earlier this year, the California Public Utilities Commission (“CPUC”) issued a decision requiring the state’s investor-owned utilities to establish several financing programs, including an On-Bill Repayment (“OBR”) program for commercial properties. OBR programs allow property owners to finance energy efficiency and/or renewable energy projects with third-party banks or other investors. Property owners repay their loan via their utility bill and that obligation stays linked to the meter upon a sale of the property.

EDF has been working closely with the utilities, environmental groups, financial institutions, project developers and other key stakeholders to craft a program that provides low-cost financing for retrofits, does not require ratepayer subsidies and has maximum flexibility to allow vendors and investors to decide how best to serve their customers’ needs. We are cautiously optimistic that the utility proposal will meet these objectives when it is released to the public on October 1, 2012.

The CPUC, however, believes that they currently do not have the regulatory authority to extend the OBR program to residential properties. EDF has been pursuing legislation to grant this authority to the CPUC, but, at this time, we do not expect that it will pass in the 2012 legislative session. EDF plans to re-introduce the residential-focused legislation in 2013 with a broad range of supporters, including several key members of the legislature.

EDF has also begun work to establish OBR programs in Ohio, North Carolina and Texas. So far, the reception has been quite positive in each state and we are hopeful that OBR may be a market-based, clean energy solution that has appeal across the political spectrum.

Posted in California, On-bill repayment / Tagged CPUC, OBR | Comments are closed

America’s Military Renewables Plan Fast-Tracked And Mission Critical

By EDF Blogs / Published: August 23, 2012

By: Jillian Jordan, EDF Energy Marketing & Communications Intern

This months’ announcement from the White House calling for green energy bids and its plan to fast-track wind and solar projects delivered a clear message that renewable energy is something the American military – and its government – whole-heartily believes in. The federal government’s Renewable Energy Partnership Plan (Plan), headed by the Department of Defense (DoD) and the Department of the Interior (DOI), is pushing new project development on and near numerous military installations to the tune of $7 billion dollars.

Even more compelling is the fact that clean energy is now considered part of America’s national security plan by key political figures and the DoD. The White House’s Heather Zichal, Deputy Assistant for Energy and Climate Change, has commended this strategic move towards clean energy and endorsed the Plan as “operationally necessary, financially prudent and mission critical.”

So mission critical, in fact, that the Army has planned the incorporation of renewables as a high-priority tactic for saving lives. Military convoys have long been known to be one of the most dangerous operations, costing more lives than many other career fields in the armed forces. When supplies like gasoline run out, transportation troops are assigned the duty of delivering them through hostile territory. For every 24 fuel resupply missions, one American life is lost – which constitutes one out of every eight deaths in Iraq. Using clean energy actually saves lives for today’s military. The less fossil fuel used and the less dependent we are on oil, the less convoy trips are needed for refueling and to run diesel generators that power military tents, therefore minimizing the risk for American troops.

The alternative energy infrastructure projects under the Plan will create jobs favoring local economies, produce about 7,200 megawatts of energy and utilize millions of acres of public lands and offshore areas that are best suited for wind and solar projects, all while meeting the goals of the federal Energy Policy Act of 2005. Under the Act, the military has voluntary plans for 25% of its energy produced by clean sources by 2025.

“Developing renewable energy is the right thing to do for national security, as well as for the environment and our economy,” Secretary of Defense Leon E. Panetta said. “Renewable energy projects built on these lands will provide reliable, local sources of power for military installations; allow for a continued energy supply if the commercial power grid gets disrupted; and will help lower utility costs.”

In addition to becoming independent from the national grid, utility costs have been upwards of $4 billion annually and the task force assigned to the Plan is determined to lower the DoD’s energy bill and curtail energy usage. But, above all, the goal is to maintain the military’s ability to remain powered during mission-critical times. Conditions of the Plan offer an added safety net in the event of a massive blackout or, for a worst-case-scenario attack on America’s power grid.

Preliminary site evaluation began with DOI’s Smart from the Start initiative under Secretary of the Interior Ken Salazar. Pilot projects are currently underway in Arizona, California, Nevada and Wyoming, with more fast-tracked proposals to be announced in the next few weeks. The Renewable Energy Partnership Plan signed between the two agencies would allow the military to purchase power produced from homegrown, renewable energy sources, which could lead to a reduction in clean energy costs and an overall boost to the alternative energy sector.

Of the DOI’s 28 million acres, 16 million of which were designated for defense, 13 million that are rich in resources and ideal for wind, solar and geothermal power generation. “Our nation’s military lands hold great renewable energy potential, and this partnership will help ensure that we’re tapping into these resources with a smart and focused approach to power our military, reduce energy costs, and grow our nation’s energy independence,” Salazar said.

Posted in Renewable Energy, Washington, DC / Read 5 Responses

EDF Energy Innovation Series Feature #10: Social Networking From Honest Buildings

By Jim Marston / Published: August 22, 2012

Throughout 2012, EDF’s Energy Innovation Series will highlight more than 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.

Is your office building on LinkedIn? Can you find user reviews of your high-rise on Yelp? Probably not, but the chances are good that you’ll be able to do both on HonestBuildings.com.

Since launching in beta on March 20, 2012, the fast growing real estate network has already aggregated detailed information on over 700,000 buildings across the U.S. From architects to brokers, thousands of real estate, construction and service companies have joined the platform, posting their portfolio of work and connecting with building owners and managers to find new business opportunities.

Honest Building’s co-founder and CEO Riggs Kubiak says that the real estate market is primed for the convergence of data and community, which will lead to more transparency for all stakeholders and accelerate the adoption of high performance buildings.

“Greater transparency about building performance increases the demand for energy efficiency as tenants can make better, informed decisions about where they lease,” said Kubiak. “This accelerates the adoption of all sorts of best practices by building owners and managers in order to command the best leasing rates. From energy efficiency to leasing to design to management, buildings will have to get better, faster. This also gives the best building service providers and vendors the opportunity to scale faster, as the services and technologies with the best track record can leverage a network effect to capture more and more business.”

And when it comes to important energy innovations, tackling the building sector is vitally important. Cars and trucks carry a lot of the blame for climate change. But in the U.S., the building sector is responsible for nearly half of CO2 emissions, compared to a third for the transportation sector. Three-quarters of the electricity produced in the U.S. is used just to operate buildings, and that percentage is even higher globally.

There’s a massive amount of factual, verifiable data about how homes and buildings operate. This data includes square footage, energy costs, walkability – all things that people care about now more than ever. But all this information is very hard for consumers to find and for building professionals to promote. And there is no venue for people — designers, buyers or sellers — to interact.

“The purpose of Honest Buildings is to merge the hard facts with human interaction,” Riggs said. “You can see the data on a building and weigh it against what the community is saying about it.”

In San Francisco, the Honest Buildings platform is using energy benchmarking compliance data to bring together building owners, service providers and local government to create new business opportunities and more efficient buildings. Working with the city’s department of the environment, they’ve created a custom map of all the buildings that have and have not complied with the city’s energy benchmarking ordinance, and helped building owners connect with energy efficiency companies and consultants that can help these building go above and beyond compliance.

“The introduction of real-time energy data for buildings will provide an incredible insight into how they perform,” Riggs said. “Our expectation is that developers and property managers will want to highlight their best performers and create an element of competition that will increase efficiency and sustainability. And the better the technology, the faster that will happen.”

But according to Riggs, data alone isn’t enough. “As with all great services, there has to be a human element,” he said. “People need to be able to weigh in with their voice, and the social network aspect of our service will be just as important as detailed, trustworthy data. Information may help us make better buildings, but people make the decisions.”

Posted in Energy Efficiency, Energy Innovation / Read 3 Responses