Clean Energy Initiative

President Obama Addresses Energy Issues

This Thursday, President Barak Obama gave a major address at Georgetown University.  The following is an outline of his remarks:

Reducing oil imports

In 2008, America imported 11 million barrels of oil a day.  By 2025 – a little over a decade from now – we will have cut that by one-third.

  • Expanding Safe and Responsible Domestic Oil and Gas Development and Production:
    • Implementing critical safety reforms:  In response to the Deepwater Horizon oil spill in the Gulf of Mexico, the Obama Administration has launched rigorous and comprehensive environmental and safety reforms to ensure the responsible development of offshore oil and gas resource
    • Identifying underdeveloped resources:  The President asked the Department of the Interior (DOI) to issue a report on the status of unused oil and gas leases.  That report showed that 57 percent of all leased onshore acres and 70 percent of offshore leased acres are inactive – meaning that they are neither being explored or developed.
    • Developing incentives for expedited development and production: DOI is developing incentives for expedited development of oil and gas production from existing and future leases.  For its offshore leasing program, the DOI has already begun to employ incentives, including the shortening of some lease terms to encourage earlier development, and requiring drilling to begin before an extension can be granted on a lease.  DOI is also evaluating the potential use of graduated royalty rate structures, such as those adopted by the State of Texas, to encourage more rapid production.
  • Securing Access to Diverse and Reliable Sources of Energy:  The U.S. is acting in the international arena to moderate global oil demand and secure additional supplies of liquid fuels and clean energy.  We are working with our international partners to increase natural gas supplies, replace oil with natural gas in power generation, and increase responsible oil production in a manner that ensures safety .  We are also increasing sustainable bioenergy production, building a new international framework for nuclear energy, and promoting energy efficiency.  
  • Developing Alternatives to Oil, Including Biofuels and Natural Gas:  Some of our most effective opportunities to enhance our energy security can be found in our own backyard.  We are committed to finding better and smarter ways to use these abundant energy resources. That means:
    • Expanding biofuels markets and commercializing new biofuels technologies:  Corn ethanol is already making a significant contribution to reducing our oil dependence, but increasing market share will require overcoming infrastructure challenges and commercializing promising cellulosic and advanced biofuels technologies.  To help achieve this goal, the Administration has set a goal of breaking ground on at least four commercial-scale cellulosic or advanced bio-refineries over the next two years. And as we do all of these things, we will look for ways to reform our biofuels incentives to make sure they meet today’s biofuels challenges and save taxpayers money.  
    • Encouraging responsible development practices for natural gas:  The Administration is committed to the use of this important domestic resource, but we must ensure it is developed safely and responsibly. To that end the Administration is focused on increasing transparency about the use of fracking chemicals, working with state regulators to offer technical assistance, and launching a new initiative to tap experts in industry, the environmental community and states to develop recommendations for shale extraction practices that will ensure the protection of public health and the environment. 
  • Cutting Costs at the Pump with More Efficient Cars and Trucks:   The Administration is building on recent investments in advanced vehicles, fuel, technologies, high speed rail, and public transit:
    • Setting historic new fuel economy standards: Standards for model years 2012-16 will raise average fuel economy to 35.5 miles per gallon by 2016, and save 1.8 billion barrels of oil over the lifetime of the vehicles covered. In July, the Administration will also finalize the first-ever national fuel economy and greenhouse gas emission standards for commercial trucks, vans and buses built in 2014 - 2018.  These standards will cut oil use and promote the development and deployment of alternative fuels, including natural gas.  The Administration is also developing the next generation of fuel economy and greenhouse gas emission standards for passenger vehicles 2017-2025 and expects to announce the proposal in September 2011.
    • Paving the way for advanced vehicles:  The President has set an ambitious goal of putting 1 million electric vehicles on the road by 2015.  To help us get there, the President’s FY 2012 Budget proposes a redesigned $7500 tax credit for consumers, competitive grants for communities that encourage the adoption of electric vehicles, and funding for R&D to drive innovation in advanced battery technology.  At the same time, the President is calling on Congress to move forward with policies that can help unlock the promise of natural gas vehicles.
  • Leading by Example With the Federal Fleet.  The Federal government operates more than 600,000 fleet vehicles.   We have already doubled the number of hybrid vehicles in the federal fleet.  Today, the President is calling for administrative action directing agencies to ensure that by 2015, all new vehicles they purchase will be alternative-fuel vehicles, including hybrid and electric vehicles. 

Innovating Our Way to a Clean Energy Future 

Charting a path  towards cleaner sources of electricity and greater energy efficiency, and remaining on the cutting edge of clean energy technology.

  • Creating Markets for Clean Energy:  To move capital off of the sidelines and into the clean energy economy – creating jobs in the process – we need to give businesses and entrepreneurs a clear signal that there will be a market for clean energy innovation.  That’s why the Administration is committed to pursuing a Clean Energy Standard (CES), an ambitious but achievable goal of generating 80 percent of the Nation’s electricity from clean energy sources by 2035 – including renewable energy sources like wind, solar, biomass, and hydropower; nuclear power; efficient natural gas; and clean coal.
  • Cutting Energy Bills through More Efficient Homes and Buildings: Our homes, businesses and factories consume over 70 percent of the energy we use.  By making smart investments in energy efficiency in the residential, commercial, and industrial sectors, we can improve U.S. competitiveness and protect our environment, while saving consumers money on electricity bills.  That is why the Administration is on track to weatherize 600,000 low-income homes through Recovery Act investments, and why we remain committed to a series of policies that increase efficiency across sectors – including a HOMESTAR program to help homeowners finance retrofits, a “Better Buildings Initiative” to make commercial facilities 20 percent more efficient by 2020, and steps to promote industrial energy efficiency.

Staying on the Cutting Edge through Clean Energy Research and Development:  Through the Advanced Research Project Agency-Energy (ARPA-E) program, we have invested in over 100 cutting-edge projects in areas ranging from smart grid technology, to carbon capture, to battery technology for electric vehicles. Past Budgets funded three “Energy Innovation Hubs” that explore building efficiency, fuel from sunlight, and nuclear reactor modeling and simulation.  The FY 2012 Budget request more than doubles funding for ARPA-E and doubles the number of Hubs to include new Hubs that will advance smart grid technology, critical materials research, as well as batteries and energy storage

Michael Granoff to Speak at 2nd New York Clean Energy Forum

New York Members mark your calendar for Tuesday, April 11.  Our second New York Clean Energy Forum will feature Michael Granoff and will be held Tuesday, April 12, 8:30am at the Harvard Club, 35 W 44th St, in the Mahogany Room.  The title of the speech  will be:  Securing Oil Independence through Electric Cars at Scale: Lessons from Israel”.

Michael Granoff is the head of oil independence policies for Better Place, an organization dedicated to accelerating the transition to sustainable transportation through a revolutionary switchable battery model for electric cars.  Mike Granoff works with stakeholders of all types to calibrate policies consistent with ending the corrosive effect of oil dependence on the economy, the environment, and U S national security.   Stakeholders with which Granoff works include governments on every level, industry, non-governmental organizations, and current and future Better Place partners. Granoff is founder of Maniv Energy Capital, a New York-based investment group and the first investor in Better Place.   In 2004, he became a founding board member of Securing America’s Future Energy, a Washington, D.C.-based group that works with corporate and retired military leaders to advocate for policies that contribute to the energy security of the U.S.

 These forums focus on issues surrounding the modernization of the electricity architecture and the promotion of clean energy in the United States. The host of our forum is Michael Moynihan, Director of our Clean Energy Initiative and a New York native.

Japanese Nuclear Situation, Follow up to Yucca Mountain Nuclear Waste Facility Debate

As a follow up to last week’s nuclear disaster in Japan, on some level things have quieted down somewhat, but then some have revved up.  At Japan’s Fukushima nuclear complex, Unit’s 5&6 are operating normally, and Unit 1 and 2 could be operating within a matter of days.  This leaves Unit 3 the only real problem reactor.  However there are still concerns. Dangerous radiation levels found some 25 miles from the Fukushima complex raise questions about U.S. emergency-response plans that call for evacuating only residents within 10 miles of a disaster. In the United States, only one commercial reactor is within 10 miles of a densely populated city, but 29 are within 25 miles and nearly half are within 50 miles of a metro area with more than 500,000 people.

Those of us who have been following the Yucca Mountain nuclear waste disposal facility are not surprised that the Japanese nuclear disaster brought the Yucca Mountain debate to the forefront – again.  Matthew Wald of the New York Times has a front page story this morning on how Japan's crisis is reviving the fight over Yucca Mountain and nuclear storage.  

Yucca Mountain was first voted on for a nuclear waste site in 1987and has been hotly debated ever since.  In 1987, three states were under consideration for nuclear waste disposal:  Washington, Texas and Nevada.  At that time, Vice President George H W Bush and House Speaker Jim Wright were from Texas, Majority Leader Tom Foley was from Washington, and Harry Reid was a freshman Senator from Nevada.  Not surprisingly, the state of Nevada drew the short card.

Political tides have shifted over the years.  Senator Reid is now the Majority Leader of the Senate.  President, Obama, following up on a 2008 campaign pledge, ordered the Department of Energy to withdraw application to the Nuclear Regulatory Commission (NRC) for Nevada to become a waste disposal site.  The President then appointed a Presidential Panel to review and explore nuclear waste disposal, headed by Lee Hamilton, former Member of Congress, and Brent Scowcroft, former National Security Advisor.  Coincidentally, the report is due in a few weeks. 

As my colleague Jake Berliner pointed out from a trip to his alumni Tufts University:

"The abiding lesson that Three Mile Island taught Wall Street was that a group of N.R.C.-licensed reactor operators, as good as any others, could turn a $2 billion asset into a $1 billion cleanup job in about 90 minutes."  Peter Bradford, former Nuclear Regulatory Commissioner

Mr. Bradford makes a good point about this independent Commission.  But these issues aren’t always so cut and dry.  When the Energy Department said in June that it wanted to withdraw its application for Yucca Mountain, a panel of three administrative law judges rejected the idea, which was then appealed to the five member NRC. 

One of the commission members had to recues himself because of earlier work on the Yucca Mountain debate.  The remaining four members seem to be deadlocked on whether the application can be withdrawn. A 2-to-2 vote would fail to override the three-judge panel.  Mr. Jaczko, the commission chairman and a former member of Senator Reid’s staff, has refused to bring the matter to a final vote, leaving it unsettled.

At the House Energy and Commerce Committee hearing last week, Representative John Shimkus, Republican of Illinois, asked Mr. Jaczko why he had suspended the commission’s work.  Mr. Jaczko replied that he had acted within his authority.  Congressman Shimkus countered that this debate was far from being over.

No doubt, there will be further hearings on Yucca Mountain nuclear storage issue.  They will be especially interesting in light of the expected report from the Presidential Panel headed by Lee Hamilton and Brent Scowcroft shortly. 

Future of Nuclear in Disarray

The fluidity of the nuclear meltdown in Fukushima Daiichi in Japan has congealed.  Complex and confusing information have become grim reality with deadly serious consequences.

In a statement Wednesday of this week, Greg Jackzo, Chair of the Nuclear Regulatory Commission (NRC), said it was "prudent" for U.S. citizens in Japan to evacuate beyond a 50-mile radius of the reactors, in stark contrast to the 12-mile radius recommended by the Japanese government. In a briefing today, Jackzo stated that the U.S is and will continue to work closely with Japan to monitor these nuclear reactors and currently the US has 11 technical experts on the ground collecting information and analyzing the situation.

This dire situation is a huge setback for nuclear power.  For the past few years, the industry has been undergoing what many call a renaissance for the nuclear industry.  But this disaster has renewed calls from environmental groups and some lawmakers for a more cautious approach to nuclear power projects.  On their website, The Sierra Club states they are "unequivocally opposed to nuclear power" citing the dangers of reactor safety, nuclear proliferation and long term storage of spent fuel.  Leading lawmakers have made statements urging caution on further nuclear plants.

 The nuclear industry is fighting hard to limit the negative impact on their industry.  Alex Flint, chief lobbyist for the Nuclear Energy Institute (NEI) has had meetings with over 50 legislators and briefings for staff in packed rooms during this week.  Exelon, a major utility who is the largest owner of nuclear plants with 17 reactors in 3 states is doing the same.  For good reason, the nuclear industry is the recipient of generous U.S. taxpayer subsidies.

For starters, the US Government guarantees huge loans for nuclear power plants. Wall Street has been skeptical and hesitant to invest in nuclear energy over the years, but not our federal government.  In addition, the government insures nuclear power plants against the risk of catastrophic disaster.  Private insurance companies are extremely leery of insuring a nuclear power plant, but not the U.S. government.  Nuclear power is central to the President’s vision for a clean energy future because of its 0 emissions and the Obama Administration budget asked to triple the funding for these loan guarantees.

‘The president believes that meeting our energy needs means relying on a diverse set of energy sources that includes renewables like wind and solar, natural gas, clean coal and nuclear power,” said Clark Stevens, a White House spokesman. “Information is still coming in about the events unfolding in Japan, but the administration is committed to learning from them and ensuring that nuclear energy is produced safely and responsibly here in the U.S.”

It remains to be seen what the ultimate reaction of the American public will be on the subsidizing and building of new nuclear power plants.  In 1979 after the Three Mile Island reactor meltdown, the public spurned nuclear power plants.  But things are different today and I suspect that the public will not be so quick to eschew nuclear.

However, a paper recently released from the Brattle Group made the point that  building more nuclear reactors "cannot be expected to contribute significantly to U.S. carbon emission reduction goals prior to 2030 but that investments in more-efficient buildings and factories can reduce demand now, at a tenth the cost of new nuclear supply.

What has yet to play out is whether the Washington policy makers message collides with the United States public.

Solar Power Enters Maturity

The year 2010 was a significant shift in the US Solar market.  A new report by the US. Solar Market Insight™ was a collaboration between the Solar Energy Industries Association (SEIA®) and GTM Research.  This report looks at the trends of the United States industry including photovoltaic (PV), concentrating solar power (CSP) solar hot water and space heating (SWH) and solar pool heating (SPH) markets using surveys of installers, manufacturers, utilities and state agencies.

 

Three themes dominated the solar market for 2010. 

  1. The U.S. solar market doubled to 878 megawatts of PV in 2010 and 78 megawatts of CSP. The industry’s total market value grew a whopping 67 percent from $3.6 billion in 2009 to $6.0 billion in 2010.
  2. The year 2010 saw 242 megawatts of utility-scale projects come on-line and that trend is projected to grow.
  3. The American solar story used to be dominated by California, but now California is just 30 percent of the U.S. market, with 16 states installing at least 10 megawatts each in 2010. Just as Germany is no longer the "savior state" for global PV, California is now just one of many U.S. PV markets.

The market's expansion was driven by the federal section 1603 Treasury program, completion of large utility scale projects, expansion of new state markets and declining technology costs. The section 1603 Treasury program helped fourth-quarter installations surge to a record 359 megawatts and was critical in allowing the solar industry to employ more than 93,000 Americans in 2010.  

The executive summary is available for download here. The full report is available here and here

Energy Budget Dominates Week

The main story of interest this week is the President’s Budget request  released on Monday, February 13.  The White House Federal Budget Overview can be found here.       

 

The FY 2012 budget request for Department of Energy increased DOE spending by 11.8% over the FY 2010 budget to a total of 29.5 billion.  Allocation of this 29.5 billion is as follows:

  • 11.9 billion for nuclear weapons and nonproliferation missions
  • 6.3 billion for environmental cleanup and radioactive waste management
  • 5.9 billion  for basic science and advanced research projects agency – energy
  • 291 million for innovative and advanced energy technology credit programs
  • 4.8 billion for  energy supply and energy efficiency programs

Of critical interest to Electricity 2.0 in this Budget Request are the following:

  • $450 million increase in funding for basic energy science research which will create three Energy Innovation Hubs to focus on batteries, critical materials and Smart Grid technologies. 
  • 88% increase in technology funding for solar energy including a  61% increase in technology funding for wind energy; a 135% increase in technology for geothermal energy and a 58% increase in biomass energy. 
  • $69 million in new and increased funding for Smart Grid electricity transmission technologies and energy storage
  • Expansion of the DOE Loan Guarantee Program with $200 million proposed to subsidize new loans, which could translate to as much as $2 billion in additional loan volume for renewable energy and energy efficiency renovations

Electricity 2.0 programs and areas that will benefit as a result of the FY 2012 Budget:

  • Electric Vehicles – to back up the President’s goal of putting one million electric vehicles on the U.S. roads by 2015, the budget includes $200 million in competitive programs to encourage communities that invest in electric vehicle infrastructure
  • Clean Energy Strategy - the budget proposes to double the share of electricity from clean energy sources by 2035.  By clean energy sources, the Administration includes  renewable technologies, clean coal, nuclear power, and natural gas
  • Research and Development –$8.7 billion federal investments in R & D that focus on accelerating the diffusion of clean energy technology in the marketplace
  • Renewable energy – a 70% increase in renewable energy R&D support for 1 dollar a watt initiative to make solar energy cost competitive and funding for a 24 hour geothermal storage and increased funding for wind energy R&D

Other Agencies with Energy related funding:

  • Department of Agriculture:   $6.5 billion for financial assistance to USDA electric cooperatives to promote expansion of renewable energy technologies
  • Department of Defense: a focus on projects to reduce carbon based energy use, the deployment of more efficient turbine engines, alternative energy sources and storage technologies that reduce need for local generators
  • Department of Interior:  $73 million for renewable energy development activities including the review and permitting of new solar wind and geothermal activity generation capacity on federal lands.

 Chair of Senate Energy and Natural Resources Committee, Jeff Bingaman  (D-NM) in a press release stated his strong support of the increases pro9posed for Department of Energy programs.  DOE Secretary  Steve Chu testified before the Senate Energy Committee on Wenesday, February 16, on the proposed DOE Budget. 

Meanwhile, on the House side, Chair of the House Energy and Commerce Committee, Fred Upton (R-MI) was far more concerned with the Continuing Resolution’s EPA blocking language.  Meanwhile, Congressman Henry Waxman (D-CA), Bobby Rush, and John Yarmuth circulated a “dear colleague” letter attempting to rally support for their efforts to strip EPS-blocking language.  To read the letter click here. 

 

Jason Scott will be first speaker for E 2.0 New York Speaker Series

NDN/New Policy Institute is excited to announce our new Clean Energy Forum to be held in New York.  This Forum will focus on issues surrounding the modernization of the electricity architecture and the promotion of clean energy in the United States.  The host of this forum is Michael Moynihan, Director of our Clean Energy Initiative.  Mr. Jason Scott will be the first speaker of the forum on March 8, at 8:00am for a breakfast event. 

Jason Scott is co-founder and Managing Partner for EKO Asset Management Partners.  He has more than a decade of experience developing and managing firms seeking to sustainably manage and invest capital.  Previously, Jason was the founding Director and investment analyst at Generation Investment Management, co-founded by David Blood and former Vice President Al Gore.  Jason serves on the boards of the Clean Economy Network, Forest Philanthropy Action Network, Public Allies and Youth Development Program Groundwork. He served on the Obama Administration’s transition boards for Energy and the Environment as well as Technology and Innovation.

The event will be held on  March 8, at  8:00am at the Harvard Club, located at 35 West 44th Street in the Mahogany Room.  Breakfast will be available. Click here to RSVP.

Senator Bingaman Outlines Energy Priorities at National Press Club

Senator Jeff Bingaman, Chair of the Energy and Natural Resources Committee outlined his priorities for an energy agenda for the 112th Congress at a packed luncheon of over 250 people at the National Press Club on Monday, January 31 hosted by NDN/New Policy Institute.

The Senator outlined four elements which he said should be at the heart of a comprehensive energy legislation to make the United States competitive in global energy markets.

  • to ensure that the U.S. remains at the forefront of energy research and development.
  • to ensure that the U.S. has a strong domestic market for clean energy technologies to create the incentive to manufacture and deploy these technologies in the USA. 
  • to ensure that the U.S. has  the necessary financial infrastructure and incentives to provide the capital needed to build advanced energy technology projects. 
  • to ensure that the U.S. have explicit policies to promote the development of U.S. manufacturing capabilities for these clean energy technologies. 

Senator BingamanLast week in the State of the Union President Obama advocated for "80% of the country's electricity to come from clean sources which he said included solar, wind, natural gas, clean coal, and nuclear energy.  Senator Bingaman indicated a desire to work with the White House, "My own view is that if we can develop a workable clean energy standard that actually continues to provide an incentive for renewable energy projects to move forward and can provide an additional incentive for some of the other clean energy technologies, nuclear being one, I would like to see that happen," I'm approaching the issue with a willingness to work on trying to come up with a way to achieve what the president set out."

Click here to read full text of Senator Bingaman's Speech before NDN

Click here for a video of Senator Bingaman's speech before NDN

Click here for audio of Senator Bingaman's speech before NDN

Senator Bingaman: Energy Priorities for the New Congress

As Simon notes below, this coming Monday, January 31 at 12:00pm, NDN and the New Policy Institute's Electricity 2.0 Initiative will host Senator Jeff Bingaman who will deliver his thoughts on Energy Priorities for the New Congress.  To accomodate the tremendous interest in this event, we have moved it to the National Press Club.  As Simon notes, come early to get a good seat.

As chairman of the Senate Energy and Natural Resources Committee and a long term leader on energy issues, there is no person whose views on energy are more important to the national debate on the future of energy policy than Senator Bingaman.  And there arguably is no more pressing time than now to think about our energy priorities, particularly in light of the President's call in the State of the Union earlier this week for America to accelerate clean energy deployment in order to win the future.

Senator Bingaman has played a leadership role in all of the major legislation shaping energy in recent years. Many believe there is an opportunity this year to make historic progress on clean energy and renewable electricity.

The stakes could not be higher.  The United States leads the world in the development of many cutting edge clean technologies like thin film solar.  But we have fallen well behind in measures including integration of wind and solar, percentage of renewable energy, the smart grid and the manufacture of solar panels and wind turbines.  China, Japan and Europe have made clean energy a key priority.  The question is, can the United States combine our R&D, capitalist system, spirit of entrepreneurship and productivity to lead again?  In electricity, can we create a second golden age similar to that of Edison and Tesla? Can we mobilize and empower Americans who want to be involved but who have remained on the sidelines so far to lead this revolution?   

Following the Senator's remarks, we have convened a distinguished panel to discuss the coming legislative session and new energy policy ideas.

Our panelists include:

  • Hon. Tony Knowles, Former Governor of Alaska and President of the New Energy Policy Institue
  • Hon. William Massey, Former Commissioner, Federal Energy Regulatory Commission
  • Stephen Harper, Global Director, Environment and Energy Policy, Intel Corporation
  • Steve Corneli, Snr. Vice President of Sustainability, Strategy and Policy, NRG
  • Michael Moynihan, Director NDN and NPI Electricity 2.0 Project (moderator).

I hope you will join us for this timely event.

Senator Bingaman: Energy Priorities for the New Congress
with Panel Discussion to Follow
Monday, January 31, 2011 - 12:00 Lunch, 12:30 Program Begins
The National Press Club
529 14th St. NW, 13th Floor Washington, DC
RSVP

Michael Moynihan leads thoughtful discussion on Electricity Transmission

Michael Moynihan, Director of NDN's Electricity 2.0 Program. lead a thoughtful and engaging discussion at the Clean Economy Network Summit yesterday afternoon.  This discussion focused on a new vision for the delivery of electricity in the new 21st century.  FERC Commissioner John Norris was an important part of this roundtable discussion of 29 thought leaders in the electricity arena.  Commissioner Norris outlined  three important areas that will drive this discussion:  Transmission and Cost Allocation, Demand Response and Compensation, and Vertical Integration of Renewables. 

Moynihan moderated the discussion among energy opinion makers that included identifying barriers facing the modernization of the electricty grid, what could be done to overcome these barriers and what relevant regulatory bodies (FERC, PUCs, ISOs) can help (or hinder) in this process. For more on the CEN summit, please click here

Moynihan has authored several papers on this very topic which include our signature piece, Electricity 2.0: Unlocing the Power of an Open Energy Network, and  Solar Energy: A Case for Action.

Senator Jeff Bingaman, Chair of the Energy and Natural Resources Committee, will be at NDN, Monday, January 31, addressing energy initiatives for the 112th Congress.  RSVP here.

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