NDN Blog

On December 21, 2011, the Environmental Protection Agency issued an historic ruling which set the first ever national standards to reduce mercury and other toxic air emissions.  This ruling will not only impact our air quality and environment but will significantly impact the utility sector, the business industry, and other related entities.     

To better understand this ruling, NDN/New Policy Institute has invited Gina McCarthy, Assistant Administrator for the Office of Air and Radiation at the EPA to speak to our Clean Energy Initiative.  Please join us for a luncheon discussion on Friday, January 20, at 12noon at the NDN event space which is located at 729 15th Street on the first floor.  Ms. McCarthy will spotlight the broad implications of these newly instituted standards which will require deep cuts in emissions and most likely reshape the utility industry in the process.  

Gina McCarthy’s presentation is the sixth in our “Clean Energy Solution Series" to showcase the leaders, companies, ideas and policies who are hastening our transition to a cleaner, safer and more distributed energy paradigm of the 21st Century.

Please RSVP today at cgiesen@ndn.org or 202-384-1216.

Rick Santorum is the one Republican Presidential candidate who would score 100% rating from conservative and tea party Republican primary voters.  The grandson of a Pennsylvania coal miner, he  is pledging to champion fossil fuels while taking an axe to energy subsidies, but it is on the issue of climate change that he can draw the sharpest distinction from Romney.  "I've never been for any scheme or even accepted the junk science behind the whole narrative," states Santorum, who is opposed to any notion of climate change.

Meanwhile, the influential Boston Globe endorsed Jon Huntsman in an editorial today citing among many reasons, Huntsman's desire to lead for the U.S. to lead the world in renewable energy. Normally newspaper endorsements have only marginal effect on election outcome, but the New Hampshire primary is wholly different and an endorsement from the Boston Globe can make a difference. Having said that, Jon Huntsman's chances at winning the NH primary are, at best, a long shot. 

Mitt Romney routinely gets accused of flip flopping on issues and I'll give you yet another example of his heinous hypocrisy.  Romney has been a loud critic of the Department of Energy's stimulus program that gave the $535 million loan to Solyndra.  But  under his administration as Massachusetts Governor, two energy firms that received state loans later defaulted.  Sound familiar?

Two recent wins for General Electric's Grid IQ suggest two important trends for 2012. First, the move to "cloud-based" hosted services is under way in earnest. Second, many of the sector's biggest players are targeting coops and municipals for their next round of deals.

Speaking of Munis, Naperville, IL, a Chicago suburb, on Wednesday became one of the first communities in Illinois to begin installing "smart meter" grid technology for all its electricity consumers — even as opponents with privacy and health concerns sought a court order halting the $22 million project.  The crews in Naperville, a city of 145,000 west of Chicago, started fitting the wireless devices that broadcast electricity usage directly to utilities at homes and businesses on Wednesday. Officials say it will take several months to install all 57,000 devices.

The City of Chicago is in early stages of implementing smart grid technology on their grid.  Touting a promise of 2,400 jobs for Chicago, ComEd on Wednesday launched the hiring blitz it promised in exchange for a $2.6 billion rate hike that will finance “smart-grid” technology.  Mayor Emanuel held a news conference with ComEd President Anne Pramaggiore to tout the benefits of legislation - hiring will begin with 350 to 400 Chicago jobs this year and up to 2,400 over the next decade according to Pramaggiore and Mayor Emanuel.

Business Week has a great story about declining residential electricity use.  A significant reason is the energy efficiency standards for refrigerators, air conditioners and other appliances set in place during the Clinton Administration.  From 1980 to 2000, residential power demand grew by about 2.5 percent a year. From 2000 to 2010, the growth rate slowed to 2 percent. Over the next 10 years, demand is expected to decline by about 0.5 percent a year.  According to Michael Lapides, a utilities analyst at Goldman Sachs,  "It's already having an impact and we may just be in the early innings of this." Other reasons for decline include a growing awareness of energy efficiency and a need to cut back due to a lackluster economy.  

China's state owned energy company, Sinopec, has made a deal with Devon Energy Corporation to develop several shale fields in Michigan and Ohio.  Sinopec has a one third stake in this development.  China is the third foreign company to venture into the development of United States shale oil fields in as many months.

According to Forecasters from Pikes Research, revenue from remote microgrids will reach $10.2 billion by 2017.  This growth is  especially driven by a more economical solar industry.  According to Pikes senior analyst Peter Asmus, "The global remote microgrid segment is the most attractive of all microgrid segments from a revenue perspective. Recent research indicates that this sector is far more robust than previously reported, and with solar PV prices continuing to decline, is poised for substantial growth, even without government incentives."

New Jersey faces tough challenges and tougher decisions on energy policy. The price of Solar Renewable Energy Certifcates (SRECS) are on the slide and the Democratic Legislature is poised to act on legislation to strenghen the power of SRECS.  Both the Governer and the Legislature agree that offshore wind is important to the state's energy portfolio and to job creation and plan to work together on legislation to provide major government assistance to offshore wind projects.  Driving down power prices is another huge issue for New Jersey which has some of the nation's highest utility rates.  Developers of three power projects given much-contested ratepayer subsidies will bid in an annual energy auction, seeking the right to begin providing electricity.

The Massachusetts Supreme Court throws out Challenge to Cape Wind, in all probability cementing this massive offishore wind project as a go.  Earlier in 2010, National Grid signed a major purchase agreement to purchase half of power generated by the Cape Wind the massive offshore wind project off the shore of Massachusetts.  But the Alliance to Protect Nantucket.

New York Times has interesting editorial  last week about the 'real jobs in America'.  According to the NYT editorial, the 20,000 new jobs from Keystone Pipeline is wildly inaccruate, 6,000 is more accurate and most of those are temporary.  Real jobs, they say are in the expansion of clean energy stating that power plant upgrades required by the new rule governing mercury emissions are expected to create about 45,000 temporary construction jobs over the next five years, and as many as 8,000 permanent jobs as utilities install pollution control equipment.  The Energy Department predicts that its loan guarantee programs could create more than 60,000 direct jobs in the solar and wind industries and in companies developing advanced batteries and clean energy technologies.

The Environmental Protection Agency official unveiled important new standards regarding mercury emissions yesterday.  These standards would require deep cuts in emissions of mercury, acid gases and soot from coal-fired power plants and are likely to help reshape the industry as companies turn off old plants and decide whether to clean up existing ones or switch to cleaner-burning fuels such as natural gas.  

The White House is billing this as a health measure, stating that although it will cost $9.6 billion annually to implement, it will provide much more in health benefits including 100,000 fewer heart and asthma attacks. According to the Administration, "This crucial step forward will bring enormous public health benefits. By substantially reducing emissions of toxic pollutants that lead to neurological damage, cancer, respiratory illnesses, and other serious health issues, these standards will benefit millions of people across the country, but especially children, older Americans, and other vulnerable populations. Cumulatively, the total health and economic benefits to society could reach $90 billion each year."  

Understandably many power plants and manufacturers  have concerns and fear that  these regulations will have a significant negative impact.  Republican officials have criticized the rule and are likely to challenge it in court and in Congress. They say it is too expensive and would force the premature closing of scores of power plants, eliminate hundreds of thousands of jobs and threaten the supply of electricity in some parts of the country.

In a New York Times article, Scott H. Segal, who represents utilities that would be affected by the rule, said the E.P.A. was playing down the costs and double-counting the benefits. “The bottom line,” he said in an analysis of the regulation, is that “this rule is the most expensive air rule that E.P.A. has ever proposed in terms of direct costs."  

The Wall Street Journal points out that the rule is sure to fact legal challenges and Republicans will continue efforts to delay it with legislation.  Revisions to the Clean Air Act. passed by Congress in 1990. required reductions of mercenary and other pollutants.  

On the other hand, Sierra Club President, Michael Brune in a press release today stated "President Obama and EPA Administrator Lisa Jackson marks a milestone for parents and families across the country. It means that, after decades of delay, we now have strong nationwide protections against toxic mercury, and most of all, it means peace of mind for the parents of more than 300,000 American babies born every year that have been exposed to dangerous levels of mercury".

Bottom line  this ruling will face legislative challenges by Republicans in Congress and court challenges by the utilities and manufacturing industry.  These challenges will be fought in Congress by many Democrats and defended in court by Environmentalists.  The regulations will stick.  They are a result of legislation passed by Congress in 1990 and for over twenty years legislators and industry have known that these regs would come to pass. In the meantime, hopefully our air quality will siginificantly improve. 

Lisa Jackson of EPA will release the EPA's first rules for mercury and air toxics emissions from utility power plants today at 2pm.  The Republican leadership on the House Energy and Commerce Committee admantly opposes this ruling which is not surprising because they oppose most everyting EPA.  Morning Politico hints that the  finalized rules include so-called safety valve provisions that would give some power plants an extra year - beyond the three or four usually allowed under the Clean Air Act - to comply with the utility MACT.  Details will be linked in tomorrow's blog.

Internet Company Google announced that it is putting $94 million into Recurrent Energy projects construction of solar panels.  These solar panels will feed into  Sacramento Municipal Utility District (SMUD), raising it's investments in clean energy to an extrodinary $915 million.  

David Roberts writes in Grist that the enviromental community needs to re-work their messaging because the Keystone Pipeline presents a perfect opportunity for environmentalists.  Roberts argues that the compromise throws the decision on whether to move forward on the pipeline to the State Department, where they will most likely kill it.  He suggests the enviro messaging be positive and proactive.

Scott Rosenberg writes an interesting piece in Grist on how effectively the House Republicans have used Clean Energy to bait the President and the Democrats in Congress.  I am not sure I necessarily agree with him, but because I cannot understand why energy has gone from regional to stridently partisan, his arguments do make sense.

Senator Reid told the Huffington Post this morning, "no negotiations until Boehner follows through and passes the compromise that Senators Reid and McConnell negotiated at his request, and which received 90 percent support in the Senate. It's shameful that he won't even give it an up or down vote.  Hopefully fellow Republicans can prevail upon their wayward colleagues in the House."  By refusing to appoint conferees for negotiation, Senator Reid is rendering Speaker Boehner's challenge a mute one.  There is little hope either party will be able to bridge this disagreement in the next 11 days that remain before the payroll tax cut ends.

Concentrated solar thermal power sits alongside photovoltaic electricity solar energy as a commercially available renewable energy technology which is capable of harnessing immense solar resources.  A new study by the European Academies Science Advisory Council examined the current status and challenges of CSP and at the same time evaluated the potential contribution of CSP in the Europe and the Middle East region in the first half of this century.  The findings report that with significant investment CSP could offer a cost effective way of enabling signigicant contribution to meeting this regions need for clean energy.

Renewable Energy Activists are fighting to keep tax and grant programs alive, but it doesn't appear that this GOP controlled Congress is inclined toward their efforts.  The Solar industry is fighting to renew the 1603 Treasury grant program which gives renewable and solar developers cash payments of up to 30% of their project costs in lieu of future tax credits.  At the same time the wind industry is actively working Congress to extend their Production Tax Credit which pays wind farm owners 2.2 cents for every kilowatt hour of energy it produces during the first decade of operation.   Both solar and wind industries argue that a decision needs to be made sooner than later for future planning purposes, but it looks like Congress will adjourn for 2011 without consideration of these programs.

Energy Storage Systems are considered a crucial component of the future energy system, enabling the widespread adoption of everything from renewable energy, smart grid technologies and backup power, to electric vehicles and portable devices.  A New analysis from Frost & Sullivan finds that  the development of electric energy storage technologies is currently being driven by factors such as grid stability and reliability, the need to integrate intermittent renewable energy generators, and the push to limit greenhouse gas emissions and use energy resources more efficiently.

In a last minute deal, the House GOP successfully killed new energy efficiency rules for light bulbs when House and Senate negotiators included a rider to block enforcement of the regulations in the year-end spending bill.  Normally, industry loves it when GOP fights business regulations. but companies like General Electric millions of dollars prepping for the new rules and say pulling the plug now could cost them. The looming possibility of the new standards, signed into law by President Bush in 2007, and the fact that places like Europe, Australia, Brazil and China have already put similar measures in place has already transformed the industry.  For years I have stockpiled hundreds of what will soon be illegal 'incandescent  bulbs'.  The legal energy efficient bulbs' ugly and cold light are a bane to good decorating and a happy home.

An Op-Ed by Michael Webber, University of Texas energy analyst, states that the oil and gas industry has flourished under the Obama Administration and is experiencing the largest growth since the 1950s.  U.S. oil production is up 14% since Obama took office while foreign oil consumption is only 45%.  Obama opened up offshore drilling and continued this even after the BP oil spill, Administration investments energy and research resulted in filling the innovation pipelines with new devices and entrepreneurial opportunities.

House of Representatives  Committee on Oversight and Government Reform held a hearing on the Nuclear Regulatory Commission.  The hearing aired complaints from all five members of the Nuclear Regulatory Commission.  Gregory B. Jaczko, chair of the committee and an ally of Senator Reid, has had trouble with the the four members in terms of information flow to other commissioners.  

California gets ready to integrate more renewables on the market.  Five things are critical to this process: adequate interconnection, good market design, advanced market tools, system flexibility, and last of all agreed upon rules fo this.