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Fact Sheet: Obama’s Historic Carbon Pollution Standards for Power Plants

Repost from the White House Press Release

Fact Sheet: President Obama to Announce Historic Carbon Pollution Standards for Power Plants

August 3, 2015

The Clean Power Plan is a Landmark Action to Protect Public Health, Reduce Energy Bills for Households and Businesses, Create American Jobs, and Bring Clean Power to Communities across the Country

Today at the White House, President Obama and Environmental Protection Agency (EPA) Administrator Gina McCarthy will release the final Clean Power Plan, a historic step in the Obama Administration’s fight against climate change.

We have a moral obligation to leave our children a planet that’s not polluted or damaged. The effects of climate change are already being felt across the nation. In the past three decades, the percentage of Americans with asthma has more than doubled, and climate change is putting those Americans at greater risk of landing in the hospital. Extreme weather events – from more severe droughts and wildfires in the West to record heat waves – and sea level rise are hitting communities across the country. In fact, 14 of the 15 warmest years on record have all occurred in the first 15 years of this century and last year was the warmest year ever. The most vulnerable among us – including children, older adults, people with heart or lung disease, and people living in poverty – are most at risk from the impacts of climate change. Taking action now is critical.

The Clean Power Plan establishes the first-ever national standards to limit carbon pollution from power plants. We already set limits that protect public health by reducing soot and other toxic emissions, but until now, existing power plants, the largest source of carbon emissions in the United States, could release as much carbon pollution as they wanted.

The final Clean Power Plan sets flexible and achievable standards to reduce carbon dioxide emissions by 32 percent from 2005 levels by 2030, 9 percent more ambitious than the proposal. By setting carbon pollution reduction goals for power plants and enabling states to develop tailored implementation plans to meet those goals, the Clean Power Plan is a strong, flexible framework that will:

  • Provide significant public health benefits – The Clean Power Plan, and other policies put in place to drive a cleaner energy sector, will reduce premature deaths from power plant emissions by nearly 90 percent in 2030 compared to 2005 and decrease the pollutants that contribute to the soot and smog and can lead to more asthma attacks in kids by more than 70 percent. The Clean Power Plan will also avoid up to 3,600 premature deaths, lead to 90,000 fewer asthma attacks in children, and prevent 300,000 missed work and school days.
  • Create tens of thousands of jobs while ensuring grid reliability;
  • Drive more aggressive investment in clean energy technologies than the proposed rule, resulting in 30 percent more renewable energy generation in 2030 and continuing to lower the costs of renewable energy.
  • Save the average American family nearly $85 on their annual energy bill in 2030, reducing enough energy to power 30 million homes, and save consumers a total of $155 billion from 2020-2030;
  • Give a head start to wind and solar deployment and prioritize the deployment of energy efficiency improvements in low-income communities that need it most early in the program through a Clean Energy Incentive Program; and
  • Continue American leadership on climate change by keeping us on track to meet the economy-wide emissions targets we have set, including the goal of reducing emissions to 17 percent below 2005 levels by 2020 and to 26-28 percent below 2005 levels by 2025.

KEY FEATURES OF THE CLEAN POWER PLAN

The final Clean Power Plan takes into account the unprecedented input EPA received through extensive outreach, including the 4 million comments that were submitted to the agency during the public comment period. The result is a fair, flexible program that will strengthen the fast-growing trend toward cleaner and lower-polluting American energy. The Clean Power Plan significantly reduces carbon pollution from the electric power sector while advancing clean energy innovation, development, and deployment. It ensures the U.S. will stay on a path of long-term clean energy investments that will maintain the reliability of our electric grid, promote affordable and clean energy for all Americans, and continue United States leadership on climate action. The Clean Power Plan:   

  • Provides Flexibility to States to Choose How to Meet Carbon Standards: EPA’s Clean Power Plan establishes carbon pollution standards for power plants, called carbon dioxide (CO2) emission performance rates. States develop and implement tailored plans to ensure that the power plants in their state meet these standards– either individually, together, or in combination with other measures like improvements in renewable energy and energy efficiency. The final rule provides more flexibility in how state plans can be designed and implemented, including: streamlined opportunities for states to include proven strategies like trading and demand-side energy efficiency in their plans, and allows states to develop “trading ready” plans to participate in “opt in” to an emission credit trading market with other states taking parallel approaches without the need for interstate agreements. All low-carbon electricity generation technologies, including renewables, energy efficiency, natural gas, nuclear and carbon capture and storage, can play a role in state plans.
  • More Time for States Paired With Strong Incentives for Early Deployment of Clean Energy: State plans are due in September of 2016, but states that need more time can make an initial submission and request extensions of up to two years for final plan submission.  The compliance averaging period begins in 2022 instead of 2020, and emission reductions are phased in on a gradual “glide path” to 2030. These provisions to give states and companies more time to prepare for compliance are paired with a new Clean Energy Incentive Program to drive deployment of renewable energy and low-income energy efficiency before 2022.
  • Creates Jobs and Saves Money for Families and Businesses: The Clean Power Plan builds on the progress states, cities, and businesses and have been making for years. Since the beginning of 2010, the average cost of a solar electric system has dropped by half and wind is increasingly competitive nationwide. The Clean Power Plan will drive significant new investment in cleaner, more modern and more efficient technologies, creating tens of thousands of jobs. Under the Clean Power Plan, by 2030, renewables will account for 28 percent of our capacity, up from 22 percent in the proposed rule. Due to these improvements, the Clean Power Plan will save the average American nearly $85 on their energy bill in 2030, and save consumers a total of $155 billion through 2020-2030, reducing enough energy to power 30 million homes.
  • Rewards States for Early Investment in Clean Energy, Focusing on Low-Income Communities: The Clean Power Plan establishes a Clean Energy Incentive Program that will drive additional early deployment of renewable energy and low-income energy efficiency. Under the program, credits for electricity generated from renewables in 2020 and 2021 will be awarded to projects that begin construction after participating states submit their final implementation plans. The program also prioritizes early investment in energy efficiency projects in low-income communities by the Federal government awarding these projects double the number of credits in 2020 and 2021. Taken together, these incentives will drive faster renewable energy deployment, further reduce technology costs, and lay the foundation for deep long-term cuts in carbon pollution. In addition, the Clean Energy Incentive Plan provides additional flexibility for states, and will increase the overall net benefits of the Clean Power Plan.
  • Ensures Grid Reliability: The Clean Power Plan contains several important features to ensure grid reliability as we move to cleaner sources of power. In addition to giving states more time to develop implementation plans, starting compliance in 2022, and phasing in the targets over the decade, the rule requires states to address reliability in their state plans. The final rule also provides a “reliability safety valve” to address any reliability challenges that arise on a case-by-case basis. These measures are built on a framework that is inherently flexible in that it does not impose plant-specific requirements and provides states flexibility to smooth out their emission reductions over the period of the plan and across sources.
  • Continues U.S. Leadership on Climate Change: The Clean Power Plan continues United States leadership on climate change. By driving emission reductions from power plants, the largest source of U.S. greenhouse gas emissions, the Clean Power Plan builds on prior Administration steps to reduce emissions, including historic investments to deploy clean energy technologies, standards to double the fuel economy of our cars and light trucks, and steps to reduce methane pollution. Taken together these measures put the United States on track to achieve the President’s near-term target to reduce emissions in the range of 17 percent below 2005 levels by 2020, and lay a strong foundation to deliver against our long-term target to reduce emissions 26 to 28 percent below 2005 levels by 2025. The release of the Clean Power Plan continues momentum towards international climate talks in Paris in December, building on announcements to-date of post-2020 targets by countries representing 70 percent of global energy based carbon emissions.
  • Sets State Targets in a Way That Is Fair and Is Directly Responsive to Input from States, Utilities, and Stakeholders: In response to input from stakeholders, the final Clean Power Plan modifies the way that state targets are set by using an approach that better reflects the way the electricity grid operates, using updated information about the cost and availability of clean generation technologies, and establishing separate emission performance rates for all coal plants and all gas plants.
  • Maintains Energy Efficiency as Key Compliance Tool: In addition to on-site efficiency and greater are reliance on low and zero carbon generation, the Clean Power Plan provides states with broad flexibility to design carbon reduction plans that include energy efficiency and other emission reduction strategies.  EPA’s analysis shows that energy efficiency is expected to play a major role in meeting the state targets as a cost-effective and widely-available carbon reduction tool, saving enough energy to power 30 million homes and putting money back in ratepayers’ pockets.
  • Requires States to Engage with Vulnerable Populations: The Clean Power Plan includes provisions that require states to meaningfully engage with low-income, minority, and tribal communities, as the states develop their plans. EPA also encourages states to engage with workers and their representatives in the utility and related sectors in developing their state plans.
  • Includes a Proposed Federal Implementation Plan: EPA is also releasing a proposed federal plan today. This proposed plan will provide a model states can use in designing their plans, and when finalized, will be a backstop to ensure that the Clean Power Plan standards are met in every state. 

Since the Clean Air Act became law more than 45 years ago with bipartisan support, the EPA has continued to protect the health of communities, in particular those vulnerable to the impacts of harmful air pollution, while the economy has continued to grow. In fact, since 1970, air pollution has decreased by nearly 70 percent while the economy has tripled in size. The Clean Power Plan builds on this progress, while providing states the flexibility and tools to transition to clean, reliable, and affordable electricity.

BUILDING ON PROGRESS

The Clean Power Plan builds on steps taken by the Administration, states, cities, and companies to move to cleaner sources of energy. Solar electricity generation has increased more than 20-fold since 2008, and electricity from wind has more than tripled.  Efforts such as the following give us a strong head start in meeting the Clean Power Plan’s goals:

  • 50 states with demand-side energy efficiency programs
  • 37 states with renewable portfolio standards or goals
  • 10 states with market-based greenhouse gas reduction programs
  • 25 states with energy efficiency standards or goals

Today’s actions also build on a series of actions the Administration is taking through the President’s Climate Action Plan to reduce the dangerous levels of carbon pollution that are contributing to climate change, including:

  • Standards for Light and Heavy-Duty Vehicles: Earlier this summer, the EPA and the Department of Transportation proposed the second phase of fuel efficiency and greenhouse gas standards for medium- and heavy-duty vehicles, which if finalized as proposed will reduce 1 billion tons of carbon pollution. The proposed standards build on the first phase of heavy-duty vehicle requirements and standards for light-duty vehicles issued during the President’s first term that will save Americans $1.7 trillion, reduce oil consumption by 2.2 million barrels per day by 2025, and slash greenhouse gas emissions by 6 billion metric tons through the lifetime of the program.
  • Low Income Solar: Last month, the White House announced a new initiative to increase access to solar energy for all Americans, in particular low-and moderate income communities, and build a more inclusive workforce. The initiative will help families and businesses cut their energy bills through launching a National Community Solar Partnership to unlock access to solar for the nearly 50 percent of households and business that are renters or do not have adequate roof space to install solar systems and sets a goal to install 300 megawatts (MW) of renewable energy in federally subsidized housing by 2020. Through this initiative housing authorities, rural electric co-ops, power companies, and organizations in more than 20 states across the country committed to put in place more than 260 solar energy projects and philanthropic and impact investors, states, and cities are committed to invest $520 million to advance community solar and scale up solar and energy efficiency for low- and moderate- income households. The initiative also includes AmeriCorps funding to deploy solar and create jobs in underserved communities and a commitment from the solar industry to become the most diverse sector of the U.S. energy industry.
  • Economy-Wide Measures to Reduce other Greenhouse Gases: EPA and other agencies are taking actions to cut methane emissions from oil and gas systems, landfills, coal mining, and agriculture through cost-effective voluntary actions and common-sense standards. At the same time, the U.S. Department of State is working to slash global emissions of potent industrial greenhouse gases, called hydrofluorocarbons (HFCs), through an amendment to the Montreal Protocol; EPA is cutting domestic HFC emissions through its Significant New Alternatives Policy (SNAP) program; and, the private sector has stepped up with commitments to cut global HFC emissions equivalent to 700 million metric tons of carbon pollution through 2025.
  • Investing in Coal Communities, Workers, and Communities:  In February, as part of the President’s FY 2016 budget, the Administration released the POWER+ Plan to invest in workers and jobs, address important legacy costs in coal country, and drive the development of coal technology. The Plan provides dedicated new resources for economic diversification, job creation, job training, and other employment services for workers and communities impacted by layoffs at coal mines and coal-fired power plants; includes unprecedented investments in the health and retirement security of mineworkers and their families and the accelerated clean-up of hazardous coal abandoned mine lands; and provides new tax incentives to support continued technology development and deployment of carbon capture, utilization, and sequestration technologies.
  • Energy Efficiency Standards:  DOE set a goal of reducing carbon pollution by 3 billion metric tons cumulatively by 2030 through energy conservation standards issued during this Administration. DOE has already finalized energy conservation standards for 29 categories of appliances and equipment, as well as a building code determination for commercial buildings. These measures will also cut consumers’ annual electricity bills by billions of dollars.
  • Investing in Clean Energy:  In June the White House announced more than $4 billion in private-sector commitments and executive actions to scale up investment in clean energy innovation, including launching a new Clean Energy Impact Investment Center at the U.S. Department of Energy (DOE) to make information about energy and climate programs at DOE and other government agencies accessible and more understandable to the public, including to mission-driven investors.

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Officials hope 1st US offshore wind farm will boost industry

Repost from the Minneapolis Star-Tribune

Officials touring site of 1st US offshore wind farm hope milestone will boost industry

By Jennifer McDermott, AP, July 27, 2015 — 3:00pm
The first foundation jacket installed by Deepwater Wind in the nation’s first offshore wind farm construction project is seen Monday, July 27, 2015, on the waters of the Atlantic Ocean off Block Island, R.I. Deepwater Wind will consist of five turbines producing a total of 30 megawatts of electricity. STEPHAN SAVOIA — AP Photo

NORTH KINGSTOWN, R.I. — Construction has begun off Rhode Island’s coast on the nation’s first offshore wind farm, a milestone that federal and state officials say will help the fledgling U.S. industry surge ahead.

U.S. Secretary of the Interior Sally Jewell said Monday that lenders, regulators and stakeholders can now see a path forward.

“It’s great to witness a pioneering moment in U.S. history,” she said during a boat tour of the site. “We are learning from this in what we do elsewhere. I think it will help the country understand the potential that exists here.”

Deepwater Wind is building a five-turbine wind farm off Block Island, Rhode Island, which it expects to power 17,000 homes as early as next year. It began attaching the first of the steel foundations to the ocean floor Sunday. The first one touching the seabed is known in the industry as the “first steel in the water.”

Deepwater Wind CEO Jeffrey Grybowski said it was a “spectacular” moment. The company took officials and project supporters to the site by boat Monday to celebrate.

They saw the first of two steel pieces for the first foundation in the water. It has four legs and braces like a stool and rises about 30 feet above the waterline. An installation barge with a large crane was next to it, and two barges carrying additional foundation components were nearby. The foundations will be installed by mid-September, Grybowski said.

The wind farm should be operational in the third quarter of 2016, Grybowski said. Deepwater Wind also plans to build a wind farm of at least 200 turbines between Block Island and Martha’s Vineyard.

“We want to build more and larger offshore wind projects, up and down the East Coast,” Grybowski said.

Gov. Gina Raimondo said Rhode Island is a leader in a fast-growing industry that is creating jobs.

“It’s the beginning of something great in Rhode Island,” Raimondo said.

The offshore wind industry is far more advanced in Europe. Developers and industry experts say it has been slow to start in the U.S. because of regulatory hurdles, opposition from fossil fuel interests and the trials and tribulations of doing something for the first time.

Cape Wind received approval five years ago to build the nation’s first offshore wind farm, a 130-turbine project off Cape Cod, Massachusetts. That project stalled after opponents challenged it in court.

While there have been setbacks, Jewell said the federal government has now sold nine leases for offshore wind projects in federal waters. The government is poised to auction a new lease off New Jersey this year and is assessing potential sites off multiple states. The Block Island wind farm is in state waters.

“This is an important first step, important momentum. A lot is happening across the country,” said Abigail Ross Hopper, director if the Bureau of Ocean Energy Management.

One hurdle, however, is that the renewable energy industry has to fight, regularly, to keep the tax credits and incentives it has, while the well-established oil and gas industry has tax credits it no longer needs, Jewell said. She said that should change.

Several environmental leaders also made the trip. Collin O’Mara, president and CEO of the National Wildlife Federation, said it was overwhelming to see the start of construction.

“To see it in American waters fills me with patriotic pride,” he said. “This idea that we could create a new industry and tens of thousands of jobs, spur manufacturing and protect wildlife, it’s just an incredible opportunity.”

Bank Advises Clients Against Fossil Fuel Investment

Reprint from Time Magazine

HSBC Advises Clients Against Fossil Fuel Investment

By Nick Cunningham / Oilprice.com, April 29, 2015
The HSBC logo on the facade of HSBC France headquarters in Paris on Feb. 9, 2015.
The HSBC logo on the facade of HSBC France headquarters in Paris on Feb. 9, 2015.

The bank wrote to its clients that fossil fuel companies will become “economically non-viable”

The fossil fuel divestment campaign is picking up steam.

Often dismissed as unwise by oil industry proponents and criticized as a distraction even by supporters of action on climate change, the divestment movement is no longer being ignored.

Look no further than CeraWeek, an annual get-together of North America’s fossil fuel elite. On April 22, amid discussion panels such as “Asia: Still the Promised Land for New Energy Investment?” or “Canada’s role in the rising North America energy powerhouse,” there was also a session dedicated to divestment and the implications for energy companies. The conversation analyzed how sustainable the business model is for fossil fuel companies as the world moves towards regulating carbon emissions.

The attention paid to the divestment at CeraWeek suggests that the growing publicity and success from the environmental movement’s ability to secure divestment commitments from universities, banks, pension funds, churches, and other wealth funds are starting to be perceived as a threat by the fossil fuel industry.

A few weeks earlier, The Guardian made a splash with its “Keep it in the Ground” campaign, a very firm declaration in support of divestment. The Guardian Media Group vowed to divest its £800 million fund as well.

The growing concern over carbon pollution raises the possibility of a regulatory or tax crackdown, both at the national and international level. Newsweek reported on April 21 that HSBC wrote in a private note to its clients that there is an increasing risk that fossil fuel companies will become “economically non-viable.” As a result, HSBC advised its clients to divest from fossil fuels because they may be too risky. If investors fail to get out of fossil fuels, the bank says, they “may one day be seen to be late movers, on ‘the wrong side of history.’” As the divestment campaign builds up steam, major oil and gas companies are starting to see the writing on the wall.

But there could be a way to adapt. The Carbon Tracker Initiative (CTI) just published a “blueprint” for fossil fuel companies to adapt to a carbon-constrained world. The blueprint provides several recommendations. For example, oil companies should avoid high cost projects such as the struggling Kashagan field in Kazakhstan or expensive oil sands projects in Canada. High-cost projects put companies at risk when they are hit with unforeseen events, such as an oil price crash, a decline in demand, or a change in tax regimes. Instead, companies should invest in lower risk projects with higher rates of return, CTI says. CTI also insists that corporate governance within fossil fuel companies is critical – management needs a clear-eyed prognosis of how exposed their assets are to a potential scenario in which their oil and gas reserves are no longer wanted.

It is far from clear whether or not the oil majors will heed CTI’s advice on adapting their companies. In mid-April, 98 percent of BP’s shareholders voted in favor of an initiative that would force the company to disclose which of its assets would become “unburnable” in a low-carbon world. The results of that analysis will be much anticipated. ExxonMobil undertook a similar study, but summarily dismissed the likelihood that its assets would be affected in the future by climate action.

“Our analysis and those of independent agencies confirms our long-standing view that all viable energy sources will be essential to meet increasing demand growth that accompanies expanding economies and rising living standards,” William Colton, ExxonMobil’s vice president of corporate strategic planning, said in a March 2014 statement. In other words, investors have little to fear — ExxonMobil will be fine.

However, much has changed since then. The divestment movement has gathered quite a bit of momentum as protests hit more campuses and city halls. The U.S. and China reached a landmark agreement to reduce their greenhouse gas emissions. More countries will set policies to reduce energy demand ahead of international negotiations in Paris later this year. Oil prices have crashed, highlighting the vulnerabilities of many over-leveraged oil companies. And clean energy continues to make inroads, amid falling costs for solar, wind, and energy storage.

Oil companies ignore the divestment campaign – and other threats to their business models – at their own peril.

This article originally appeared on Oilprice.com.

 

America’s new and improved energy mix

Repost from Fuel Fix
[Editor:  Significant quote: “Since 2008, wind and solar energy capacity in the U.S. has tripled. A new report from the Energy Information Administration found that electricity generated from wind and solar grew a lot faster than electricity generated by fossil fuels last year.”  – RS]

Guest commentary: America’s new and improved energy mix

By Paul Dickerson and Thomas R. Burton III
Mintz Levin, April 25, 2015 8:00 am
(Sam Hodgson/Bloomberg)

Not too long ago, America was governed by an either/or energy market. Back in the 1970s and early 1980s, the rise and subsequent demise of solar energy as a viable energy alternative was directly related to the jump and collapse in crude prices before and after the OPEC oil embargo. Solar was resuscitated – along with a host of other nascent alternatives – in the first decade of this century when oil prices spiked once again. Plenty of pundits warned that investments in solar, wind and other energy alternatives would prove short-sighted when the price of oil finally retreated.

But something significant happened along the way: demand for energy alternatives became untethered from oil and natural gas prices. At a time when the price of crude oil has plunged by more than half and natural gas prices have plumbed two-year lows, growth in energy alternatives has actually accelerated. Since 2008, wind and solar energy capacity in the U.S. has tripled. A new report from the Energy Information Administration found that electricity generated from wind and solar grew a lot faster than electricity generated by fossil fuels last year. So-called distributed generation – a better proxy for real-time demand because it measures installations such as solar panels by end users and not utilities – exhibited even faster growth. In fact, by the time you’ve read this, another new solar project will have come online (it happens every 150 seconds).

A host of drivers help explain why these energy technologies are holding their own this time around. Whether you agree with them or not, growing concerns about climate change and energy’s role in it has created generous federal and state incentives for energy sources that aren’t derived from fossil fuels.

Incentivized by these policies, public and private sector innovation has driven down the cost of these technologies so they can increasingly compete on price even as their subsidies expire. Wind energy’s dramatic success here in Texas is a key reason why state senator Troy Fraser, a key proponent of Texas’s Renewable Portfolio Standard and Competitive Renewable Energy Zones, recently argued that those programs have accomplished their objective and are no longer needed.

Finally, innovation has migrated to the industry’s financing models. Previously, much of solar’s growth was driven by technology advancements. More recently, however, growth is being driven by financial improvements such as more flexible leasing models, a greater availability of capital that lowers costs for installers, and better analytics that enable installers to target customers more effectively. The result has been a rapid change to the competitive landscape, which has transformed and invigorated the market.

By now you might be wondering: Why does this matter to me? The answer is because there are huge implications from diversifying our nation’s energy supply.

The first benefit is the ability to hedge our energy positions when the price of one technology soars. Much in the way that investors are adding alternative investments to complement their holdings in stocks and bonds, a national energy portfolio that can draw on solar, wind and other alternatives is much less susceptible to downside risks. While still a small piece of the overall energy pie, these energy technologies give us a degree of flexibility in weathering market fluctuations. This flexibility makes us less reliant on any one energy source, putting downward pressure on the prices we pay to heat or cool our homes or fuel our cars.

The second big benefit is ensuring the reliability of our energy supply. Solar and wind technologies need to work in concert with 24/7 solutions such as natural gas since they can’t produce energy all of the time. Having access to more alternatives gives our electricity grid operators the flexibility to prevent or work around disruptions, use real-time usage data to identify and tap the most efficient energy sources at all times, and continue to meet our growing energy demands. Of course, we still have some work to do in this respect, and we urge federal and state legislators to continue to support programs that help develop the technologies needed to seamlessly integrate our growing array of energy choices.

A third reason, one that we are painfully familiar with as much of Texas remains gripped by drought, is water. One of the biggest demands for water is power generation, and as people continue to move to Texas, demand for electricity will continue to rise. By developing wind and solar sources, we will ease the burden of that growth on our already stressed water supplies.

Finally, a nation with greater flexibility in the way it meets its energy needs is one far less prone to the will or whims of others. In recent years, the term “energy independence” has been thrown around a lot. It’s a laudable goal, but we can’t achieve it by drilling alone. Before we can have true energy independence, we first must have energy diversity.


Thomas R. Burton III is the founder and chair of the Energy & Clean Technology Practice at Mintz Levin in Boston. Paul Dickerson, of counsel at the firm, is a former chief operating officer at the US Department of Energy.