Energy Exchange

By Kate Zerrenner

This commentary originally appeared on EDF's Texas Clean Air Matters blog.

(Source: Bluebonnet Electric Co-op)

Everywhere you turn these days, you hear someone mention the emergence of big data and how our lives will be more and more reliant on numbers.  Well the world of electric cooperatives (co-ops) is no exception.  Originally emerging out of the establishment of the Rural Electrification Administration, co-ops enabled rural farmers and ranchers to create customer-owned electric utilities in areas that are not serviced by traditional utilities.

I recently visited the Bluebonnet Electric Cooperative (Bluebonnet), one of the Texas’ largest co-ops providing energy to 14 counties, spanning the outskirts of Austin to Houston and boasting an impressive 11,000 miles of electric lines, 83,000 electric meters and 63,000 members.  Who would have thought so much big data is coming out of rural Texas?

What makes this co-op particularly unique is its smart grid, which is attracting some serious attention.

Unlike other traditional utilities, Bluebonnet does not generate any of its own electricity.  Instead, it buys electricity from the Lower Colorado River Authority and CPS Energy, both pioneers for clean, renewable energy.  Because of this, Bluebonnet is able to concentrate its energy (pun intended) on using new technologies to provide reliable power and enhance customer satisfaction.

Bluebonnet’s CEO Mark Rose and his staff recently gave me a tour of the co-op’s online dashboard, which provides Bluebonnet members with detailed information on their electricity use.  The amount of information readily available to customers is impressive, and the dashboard acts as a great tool to boil down much of this big data into digestible, understandable formats.  Bluebonnet members view the information on their own personal energy dashboards in three categories: cost, usage and environmental impact:

Cost

The cost tab displays your current monthly electricity bill, as well as a projected monthly bill for the following month based on previous usage.  If you want to dive deeper (like I would), a different chart can show you your energy usage each day.  On top of that, you can view hourly data to see what time of day you use the most energy.

All of this information empowers Bluebonnet members to control how they use energy and reduce electricity costs.  Presently, the dashboard shows data with an eight hour delay, but Bluebonnet’s goal is to show energy data the exact moment it’s used (real-time), so that members can gain control and make savvy energy choices.

Usage

While the cost tab shows electricity in dollars and cents, the usage tab shows energy in terms of units (i.e. kilowatt-hours or kWh).  This tab compares the current month’s energy consumption to the previous months, highlighting if you’ve increased or decreased your electricity use.  Just like the cost tab, you have the option to view daily or hourly usage, but this time in kWh rather than dollars. Additionally, on its website Bluebonnet offers some effective tips for members looking to conserve energy.  The site even shows a breakdown of how much energy appliances use nationally.  For instance, heating and cooling use about 56% and refrigerators use about 5%.

Impact

Bluebonnet’s unique approach shows members the environmental impact of their energy decisions in the form of understandable, real-world comparisons such as pounds of trash produced, number of trees needed to offset pollution or exhaust produced from certain number of cars driving per day.  These types of comparisons make our energy carbon footprints feel ‘real’ and, hopefully, manageable.

In addition to its dashboard, Bluebonnet has a mobile app that enables members to check their electricity usage from anywhere.  Members can also sign up for email or text message alerts to notify them when their bill reaches a certain dollar amount, which makes saving money even easier.

One challenge the utility faces is insufficient internet access in many of the rural communities it serves.  Poor internet access makes two-way communication between Bluebonnet and its members difficult, but the co-op understands this communication gap and is figuring out how to bridge this.  Regardless, the co-op should be commended for making a serious commitment to becoming a leader in clean energy and providing health, environmental and economic benefits to its members.

In the future, Bluebonnet hopes to give its members even greater opportunities to manage the energy use and further reduce their electric bills.  As the old saying goes, “knowledge is power”, especially when it comes to reducing our energy use and its environment impact.

By Brad Copithorne

In last my post about Connecticut’s clean energy finance efforts, I alluded to an important innovation in their Property Assessed Clean Energy (“PACE”) financing program for commercial properties.  PACE programs have been in place for several years, and the basic concept is that property owners are able to pay back clean energy financing through their property tax bill over time.  Rates tend to be low because property taxes are almost always paid back and the PACE assessment will survive foreclosures.

To date, PACE transactions have generally been structured as a set of fixed payments to finance retrofits managed by the property owner.  Functionally, these transactions have been quite similar to loans.  In the solar industry, however, the vast majority of financings have been structured as leases or power purchase agreements (PPAs) in order to fully capture the tax benefits associated with solar investments.  This has generally resulted in fairly low use of PACE by solar installers and limited installations of solar on commercial properties.  (Most commercial properties have large mortgages and are not good candidates for additional financing unless PACE or On-Bill Repayment (OBR) can be used to improve credit quality.  The exceptions are buildings that are owned or occupied by very high quality credits, such as a large corporation or city.)

Connecticut is breaking new ground by allowing leases and PPAs to participate.  The lease or PPA payments would simply become part of the property tax bill.  If necessary, true-up mechanisms could be used to adjust payments and ensure that customers are not overbilled.  Additionally, we understand that this flexibility will likely be available for innovative energy efficiency financing for commercial properties.  EDF has long advocated for this type of flexibility (and we see this as a major benefit of OBR), but – to date – PACE programs have not incorporated this feature.

Hats off to Connecticut for once again showing us how to get things done!

By Jim Marston

No one likes being told “I told you so.”  But since DOE released its report last week, I’ve been tempted.

The report warns that the existing American energy infrastructure is highly vulnerable to climate change.  That increasing temperatures will stress the U.S. water system and enhance the likelihood of drought. That because conventional power plants require huge volumes of water to operate, lower water availability will mean less reliable power.  And that the changing climate will prompt more extreme and frequent storms, increasing energy demand due to extreme temperature changes and threatening our aging and already stressed electric grid with potential blackouts.

In essence, the affirms the many the calls-to-action that EDF and many other groups have been leading for years and the lessons we learned from Superstorm Sandy made painfully real and salient:  Our existing energy technologies and policies were designed for a 20th century climate.  To weather the extremes of a 21st century climate, we need to a 21st century energy system – one  that promotes energy efficiency, enables widespread adoption of homegrown, renewable sources of power and allows people to control their own energy use and reduce their electricity costs.

I have been very encouraged by President Obama’s recent movement on climate change, and the DOE report provides research backing the urgency of his Climate Action Plan.  Hopefully, this recent movement will translate into real national momentum, as our national approach to energy truly needs an overhaul.

Consider this outdated thinking:

• Utility Business Models

If utilities are paid more when customers use more energy, what incentive do they have to invest in energy efficiency programs that urge customers to use less?  Utilities that control generation (and profit from energy demand no matter how high it goes) have zero incentive to burn less fossil fuels and encourage renewables. We need to create new business models that reward utilities for providing a platform for clean energy, allowing them to earn at least as much from investing in clean energy as they do from investing in fossil fuels.

• Smart Grid

(Source: Iwan Baan/Getty Images)

The fundamental design of our grid is the same as when Thomas Edison invented it over 100 years ago.  For all the talk about the power of America’s tech-economy, our energy system is remarkably low-tech.  The DOE report warns that climate change could outpace our best adaptation efforts if we don’t adopt a comprehensive and accelerated approach to grid resiliency.  And new, proven technology can help us do just that.  Conventional utility business models were built around large-scale, centralized fossil-fuel power plants located far away from electricity customers.  Today, a whole suite of new clean energy technologies is enabling more on-site power generation and customer-side participation.

Increasing the amount of electricity sourced locally makes the grid fundamentally more resistant to damage caused by extreme weather events.   And unlike conventional fossil fuel-based power generation, clean energy sources don’t contribute to a worsening climate.  Utilities can empower their customers to become energy “prosumers” (rather than energy consumers) by incentivizing renewable energy, energy efficiency and demand response, which rewards those who reduce electricity during peak times.

• Energy-Water Nexus

Finally, the national energy discussion woefully ignores the fundamental connection between energy and water.  But in this era of a changing climate, policymakers must also take a comprehensive approach to energy and water management.  The energy-water nexus, as policy wonks call it, is a classic example of a vicious cycle.  As the climate changes, air and water temperatures will increase, resulting in higher energy demand (due to ramped up use of air conditioners and heaters, among others).  But higher temperatures reduce power plant efficiency, which – in addition to the higher electricity demand – will increase power plants’ water demand.  With large parts of the country in the midst of historic droughts like the one gripping Texas, now is FINALLY the time to recognize this important relationship and inject it into our energy policy.

It would be wise to take the DOE’s warnings and recommendations to heart before the next major storm, flood or prolonged drought.  Investing in innovative clean energy technologies provides a two-fold benefit for our energy system, making it more resilient to climate change and reducing harmful carbon emissions.

Without the right incentives in place to encourage adoption of climate-resilient energy technologies, we could wind up spending trillions to band-aid a broken energy system.  Instead we need to build a resilient and reliable electric grid that is fit to withstand more extreme weather events in the future.

By Marita Mirzatuny

Back in March, I wrote about the American Legislative Exchange Council’s (ALEC’s) state-by-state attack on renewable energy. The attacks contribute to ALEC’s growing reputation as a “shadowy right-wing front group,” funded by the likes of Koch Industries, ExxonMobil and Peabody Energy, the largest private-sector coal company in the world. ALEC’s legislative efforts were aided by the Heartland Institute, a “free-market think tank” and notorious climate change denier.

ALEC has a clear motive: to serve the interests of dirty fossil fuel power plants and block progress towards greater use of clean, homegrown energy.

I’m happy to announce that ALEC and the Heartland Institute’s efforts to roll-back individual state’s renewable energy goals decisively failed in legislatures spanning from West Virginia to Kansas. In total, 26 bills designed to remove renewable energy standards (RPS) for eight states were denied, according to a report from Colorado State University’s Center for the New Energy Economy.

Now, Kansas, Missouri, Ohio, North Carolina, Texas, West Virginia and Wisconsin will continue on the path towards a clean energy future. Even better, some states increased their energy guidelines, namely Colorado, Connecticut, Maryland and Minnesota.

This news comes as a resounding victory for the climate, consumers, and Americans who care to see the U.S. progress into the global $ 2 billion clean energy economy.

Renewable energy is not only a vital component of the national plan to address climate change, but also a bargain for consumers. For example, Texas’ RPS, established in 1999, led the state to become an international powerhouse for wind energy. Texas has already reached its RPS goal, set for 2015, and now boasts more than 1,300 companies employing more than 100,000 workers in industries directly and indirectly related to renewable energy. On top of that, renewable energy is driving down the energy costs for consumers. A Public Utility Commission report to the 81st Legislature states that “prices are lower [ERCOT]-wide when there are large amounts of wind energy being produced.”

Texas’ experience with wind energy is no outlier. Colorado proclaims that the state’s RPS will save customers as much as $100 million over the next 25 years. Just last week, Xcel Energy, the state’s largest utility, moved to purchase another 700 megawatts of wind energy, saving its customers over $590 million in fuel costs over 20 years. Colorado will reap the benefits from a reduced reliance on foreign oil imports, stable prices and less harmful air pollution.

In a way, ALEC and the Heartland Institute’s failure to roadblock progress in these states is no surprise. Carbon-free sources, like renewable energy and energy efficiency, are the key to addressing climate change and lowering energy costs.

The American people understand these fundamental benefits—despite the propaganda ALEC and the Heartland Institute like to promote. A resounding 92 percent of voters, including 84 percent of Republicans, support an increase in renewable energy.

While this is a huge victory, we can’t rest our laurels just yet.  ALEC will be back for their attack on the clean energy, low carbon economy.  We must be just as vigilant if we are going to keep up the momentum to accelerate the transition into clean energy nation.

By Brad Copithorne

Connecticut’s Clean Energy Finance and Investment Authority (“CEFIA”) was created in 2011 to help the state increase public and private investment in clean energy solutions that are cheaper and more reliable than traditional solutions.  I had the chance last week to catch up with Bryan Garcia, CEFIA’s CEO, and his impressive team.  I found three of their initiatives to be particularly innovative and impactful.

• Commercial PACE (C-PACE) – Property Assessed Clean Energy (PACE) is an innovative, market-based approach that helps alleviate the steep, upfront costs that property owners generally incur for energy improvements by using loans that are seamlessly repaid through an additional charge on their property tax bills. While many jurisdictions have implemented PACE programs, CEFIA has had a particularly hands-on approach of working with property owners, contractors, lenders and mortgage holders to reach agreement on transactions that meet the needs of each party.  This strategy appears to be paying off as CEFIA has received 190 applications since the program was launched in April 2013.  Additionally, the Connecticut program appears to be the first PACE program that supports commercial solar installations with the lowest-cost financing structures such as leases and power purchase agreements.  I believe this could be a game changer for installing solar projects and plan to write about this in greater detail in a blog post coming soon.

• Distributed Solar – Financing solar projects in a cost-effective manner can be quite complex due to the tax benefits associated with solar installations.  Earlier this month, CEFIA worked with six financial partners to develop an innovative investment fund that has reduced credit requirements and increased availability of funds for Connecticut homeowners looking to install solar panels by local installers.  This fund also plans to invest in C-PACE commercial solar installations as discussed above.

• Residential On-Bill Repayment (OBR) – Legislation requires CEFIA to establish an OBR program to finance clean energy retrofits for residential properties.  As a private capital solution to financing energy efficiency and renewable energy projects, OBR enables building owners to access low-cost capital, with repayment on their utility bills. The program looks to have many of the key features that we believe are necessary for success, including treating the OBR obligation as an integral part of the utility bill, allowing it to run with the meter upon changes in building ownership and financing a broad range of energy upgrades (including renewables).  We look forward to working with CEFIA for a successful implementation of OBR in Connecticut.

By EDF Blogs

This commentary, authored by James Lester, originally appeared on Cleantech Finance. 

Last month, we discussed an influential new report by Ceres and the Investor Network on Climate Risk (INCR), Power Factor: Institutional Investors’ Policy Priorities Can Bring Energy Efficiency to Scale. The report detailed several policies that if put in place, could unlock broad-based financing from institutional investors for energy efficiency, a potential several hundred billion dollar investment opportunity.

Among the issues that prevent large scale energy efficiency financing, Ceres and others have found that there is no systematic method to measure the accuracy of the initial predicted energy and financial savings of each project. There is not a robust fundamental way to make sure the upgrades are performing after they have been completed. The Environmental Defense Fund (EDF) and a collection of expert partners are working to change that.

EDF has worked with a variety of industry experts to design a straightforward set of protocols that define a clear road-map from efficiency opportunity to an investment quality project with reliable returns and access to markets. The project, known as the Investor Confidence Project (ICP) hopes to enable a market for investment quality energy efficiency projects, by reducing transaction costs and engineering overhead, while increasing the reliability and consistency of savings.

The ICP encourages the funding of building energy efficiency projects by taking the variability out of the process. The project has built a coalition of both equity and debt finance companies, building owners and managers, energy service providers, insurers, engineers, utilities, and a range of NGO and public sector organizations. These experts and the ICP have come up with standardized protocols for a five-step evaluation for energy efficiency retrofits. The five-steps represent the lifecycle of a “well-conceived and well-executed energy efficiency project” and include:

1. Baselining
2. Savings projections
3. Design, construction, and commissioning operations,
4. Maintenance and monitoring,
5. Measurement and Verification (M&V)

The protocols are designed to add value to the various participants in the energy efficiency ecosystem. Project developers benefit from better access to capital resources, standardized origination processes, and the ability to benchmark projects. Building owners and managers will see a more competitive bidding process and get better rates and terms for their projects. Investors will be able to underwrite deals more efficiently by having reduced transaction costs and consistent yields. Once consistent protocols are adopted, the entire industry will benefit from smaller transaction costs, more consistent project performance, and increased access to capital. Last year, the project released its first protocol, the Energy Performance Protocol for Large Commercial (EPP-LC).

One of ICP’s partners is Noesis Energy, who we have recently profiled here. Noesis has developed a platform that connect energy efficiency projects requiring third-party funding with financing lenders. Last week, ICP and Noesis combined to conduct an interesting webinar on how the ICP Energy Performance Protocols can be leveraged as a pathway to securing investment in energy efficiency projects such as those Noesis offers.

ICP and its partners are also working on another of the Ceres report’s key conclusions. The project is working on a range of public programs focused on driving demand and overcoming barriers, such as Commercial PACE, on-bill repayment, and benchmarking programs. The ICP is just one of several ways that energy efficiency finance is entering the mainstream world of institutional investment. As Ceres and other experts have noted, building energy efficiency retrofits is a nearly $280 billion dollar investment opportunity that can save building owners more than $1 trillion over 10 years. ICP is helping private-sector financing models develop and expand to meet this huge market, so be sure to check their website and news aggregator for their latest research and webinars.

By EDF Blogs

This commentary, authored by Dan Upham, originally appeared on EDF's Voices blog.

When the folks at oilprice.com wanted to take a look at the clean energy landscape and see what opportunities might exist for energy investors, they turned to Jim Marston, the head of Environmental Defense Fund’s U.S. Climate and Energy program and regional director of our Texas office.

“As an environmental organization, EDF doesn’t offer investment advice,” Marston was quick to explain. “There are other, far more qualified people to recommend investment options.”

When it comes to market-based environmentalism and the economic benefits of clean energy, however, we’re in our comfort zone. And Marston is particularly comfortable talking about the “smart power” sector; the ideas, products and services that focus on clean, renewable energy and energy efficiency.

“Keep in mind that the U.S. will spend around $2 trillion over the next two decades to upgrade our outdated energy infrastructure,” Marston said, “And many companies realize that there’s a real market for products that make the existing electric grid better, greener and ‘smarter.'”

Read the full interview on oilprice.com for more.

By Marita Mirzatuny

Last month, while I was speaking at the 7th Annual Platts Texas Energy Markets Conference in Houston, I missed out on celebrating a very important milestone here in Austin: The grand opening of the Pike Powers Laboratory & Center for Commercialization! The ribbon cutting on June 11th brought over 150 people, including “leaders from major technology firms, like Dell, Intel Corporation, Schneider Electric and National Instruments, along with representatives from the U.S. Department of Energy.” Named after the godfather of Austin’s technology scene, Pike Powers is located in the Mueller community in the shadow of the former air traffic control tower. As the research arm of Pecan Street Inc., the lab will be the “nation’s first non-profit smart grid research laboratory, serving as an elite industry-caliber facility for members of the Pecan Street Research Consortium.”

Priorities

Pecan Street is inviting startup firms to take their questions and challenges and incorporate them into the mission of the lab, which is driven by three priorities: commercialization, research and education.

Commercialization: Pecan Street provides a pathway for companies and utilities to test and demonstrate innovative technologies in a controlled environment and bring advanced products to market, such as new electric vehicle chargers. The lab will also conduct field-testing on technologies, such as set-and-forget home energy management tools, to ensure that products are properly evaluated before hitting the shelves.

Research: The lab’s state-of -the -art testing facility will bring together member companies, entrepreneurs and researchers to conduct research using the most robust set of consumer energy data in the country. The lab (literally) opens the door for exploration that will help modernize the way we create, transport, manage and use energy.

Education: Thanks to the many contributors who provide financial support, Pecan Street is able to fund scholarships and stipends for university students to support research and grow into thought leaders among the smart grid community. The result: Effective educational materials that will teach entrepreneurs, policymakers and other key stakeholders about the smart grid and energy conservation. Pecan Street’s education focus goes beyond traditional research, as it will also include Science, Technology, Engineering and Mathematics (STEM) Educationcomponents for college and high school students studying energy, wireless and consumer electronics.

Bells & Whistles

(Source: Pecan Street)

According to Pecan Street, the new lab would make any research facility feel ‘green’ with envy.  With “nearly 80 TB of high speed Dell computing systems, based on Intel® Xeon® processors and sophisticated National Instruments and Schneider product testing equipment as well as near real-time analytics powered by the Intel® Distribution for Apache Hadoop”, the Pike Powers Lab is ready to take on the challenges (and thrills) that come with testing big data, solar panels, natural gas fuel cells, energy storage, electric vehicle charging and much more.

“We can test, verify and help develop almost anything with an on-off button,” said lab director Scott Hinson. “I’ve been working in product development and testing for over a decade, and I’ve never seen anything like it.”

The lab’s Chief Technology Officer, Bert Haskell, boasts: “We built the Lab as a sophisticated facility where companies can test their innovations, improve their performance and obtain independent performance reports that they can show to customers and funders.”

At the ribbon cutting ceremony, the man himself, Pike Powers, summed up the larger mission of the lab in a way only he can: “We’re going to innovate, we’re going to create, we’re going to jazz this sucker up and keep right on going. We’re going to disrupt, we’re going to converge, whatever it takes…to make new things happen.”

Click here for a slideshow of the opening!

By EDF Blogs

This commentary, authored by Robert Fares, originally appeared on Scientific American's "Plugged In" blog.

The U.S. Department of Energy recently partnered with Texas Tech University to commission a Scaled Wind Farm Technology (SwiFT) laboratory, which helps researchers understand how wind turbine placement affects performance. (Source: Texas Tech University)

In my last post, I discussed a House subcommittee’s shortsighted vote to slash funding for the U.S. Department of Energy’s (DOE’s) innovative Advanced Research Projects Agency – Energy (ARPA-E). I’m sorry to report that the rest of the House has now followed suit, passing a $30 billion energy spending bill that cuts a huge chunk out of clean energy programs.

Not only does the bill contain the subcommittee’s 81 percent cut to ARPA-E, it also guts energy efficiency programs and even rolls back progress in energy efficient lighting. The House’s embargo on funding for clean energy doesn’t just hurt our footing in the international race towards a new energy economy, it also drags down an entire community of American innovators working to achieve a sustainable future.

We deserve more than political posturing and moves as antiquated as the incandescent bulb. Right now, a convergence of environmental, economic and technological forces is transforming the global energy landscape. Just last month, the International Energy Agency (IEA) projected that renewable energy sources would eclipse nuclear and gas generation by 2016, and provide a quarter of the world’s energy supply by 2018. Renewable energy is unequivocally a major component of the energy landscape.

With the global rise of renewables, clean energy has become an inextricable component of energy science and engineering. Programs in sustainability, renewable energy, smart grid, and energy efficiency have emerged at major universities all over the United States. These programs popped up as fields like mechanical and electrical engineering identified climate change as a key challenge facing humanity. Engineers have always sought to apply scientific knowledge to overcome technical challenges and ensure human safety and progress. Now, more than ever, academic researchers are passionately seeking solutions to address global warming.

Renewable energy has become a topic of choice for project-based learning, which helps engage students with difficult subjects like science and math. (Source: Green Mountain Energy)

As top engineers and scientists have acknowledged the need to address the threat of climate change, so too have aspiring young scientists and engineers. Sustainability has become part of innovative educational programs across the country. Today, it is rare to see a science classroom without a miniature solar panel or wind turbine on its shelves. Why? Because students of all ages are compelled by the chance to design the next device or system that will help us overcome the challenges resulting from climate change. Students’ passion for clean energy helps them endure difficult subjects like math and science, making the U.S. more competitive internationally.

We owe it to these students to keep up the pace of clean energy education and research. Government funding agencies like ARPA-E and the DOE have a direct influence on science and engineering departments all over the country. Cutting these agencies has a ripple effect that hurts students, professors and other educators across the nation. Whether our elected leaders like it or not, researchers and academics will continue to explore the potential of the new energy frontier. The question is, will the government promote their efforts, or squander the momentum thousands of talented Americans have built up over many years of dedicated work?

Robert Fares is a Communications Intern at Environmental Defense Fund and a Ph.D. student in the Department of Mechanical Engineering at The University of Texas at Austin. Robert’s research at The University of Texas looks at how energy storage models can be used with large-scale data and optimization for economic operational management of battery energy storage. Through his research, Robert hopes to demonstrate the marketability and technical compatibility of emerging storage technologies.

By Kate Zerrenner

When I tell people that the best way to conserve energy is to conserve water, I am often faced with a confused response.  I’m not surprised really.  Energy and water policies are rarely discussed in the same forum.  For a long time, we’ve overlooked the inextricable relationship between water and energy use.  Coal, nuclear and natural gas plants use enormous amounts of steam to create electricity.  Producing all of that steam requires 190,000 million gallons of water per day, or 39% of all freshwater withdrawals in the nation.

Connection between energy and water

The longstanding division between energy and water considerations is particularly evident in the case of energy and water management.  These resources are fundamentally intertwined: Energy is used to secure, deliver, treat and distribute water, while water is used (and often degraded) to develop, process and deliver energy.  Despite the inherent connection between the two sectors, energy and water planners routinely make decisions that impact one another without adequately understanding the scientific or policy complexities of the other sector.  This miscommunication often hides joint opportunities for conservation to the detriment of budgets, efficiency, the environment and public health, and inhibits both sectors from fully accounting for the financial, environmental or social effects they have on each other.

This lack of collaboration between energy and water planners is especially dire considering Texas is in midst of an energy shortage that is exacerbated by the multi-year drought.  Without adequate planning, we could someday have to choose between keeping our lights on and turning on the faucet.

Need for efficiency

Source: NY Times

Energy and water infrastructure upgrades are expensive, and this reality continues to stifle the transition to a more water and energy efficient system.  Energy and water policies at both the federal and state levels were developed to support existing electricity generation and water technology, but conditions have changed dramatically and the policies haven’t kept up.

Competitive markets, new technologies, resource constraints and increasing greenhouse gas emissions are all part of the new planning reality, but are not adequately addressed when energy and water planning are carried out in siloes.  At the most basic level, even the language between the two sectors does not match up, making it difficult for energy and water planners to speak to each other effectively.  But don’t think this lets regulators and policymakers off the hook.

Policy

There have been calls for joint water and energy resource management.  In 2011, the U.S. Energy and Water Research Integration Act was formulated “to ensure consideration of water intensity in the Department of Energy’s energy research, development, and demonstration programs to help guarantee efficient, reliable, and sustainable delivery of energy and water resources.”  Although it was not enacted into law, this bill put the energy-water nexus on the national stage.  Later, in the 2013 Texas legislative session, Senator Kirk Watson nearly passed a bill (Senate Bill 199) that would have required electricity generators to report their water use and needs annually.  While some lawmakers have a clear vision to address energy and water needs together, we lack a consensus and broad understanding among stakeholders to make that vision a reality.

To compound the problem, energy and water resources are managed at multiple levels—local, regional, statewide and national.  Having these different planning and regulatory levels means more opportunities for miscommunication or misalignment of policy goals from each sector.  Addressing energy and water on a more coordinated basis could help overcome language barriers between the two and ensure that each resource is more adequately protected.

Energy and water management is too crucial to be upheld by disjointed decision making that doesn’t look at the whole picture.  While it may be difficult to breakdown the longstanding separation between energy and water management, doing so will reveal novel conservation strategies to ensure Texans – or anyone else for that matter – never have to choose between keeping our lights on or running water to meet our daily needs.

This is one of a group of posts that examines the energy-water nexus, Texas’ current approach to energy and water policy and what Texans can learn from other places to better manage its vital resources.

By Scott Hofmeister

Source: EnergyRM

At EDF we are always on the lookout for innovative clean energy financing models, especially those that complement On-Bill Repayment (admittedly, one of our favorites).  When we heard about EnergyRM’s recent financing approach – which uses a combination of an Energy Service Agreement (ESA), innovative measurement and verification (M&V) and utility bill repayment – we had to find out more.

EnergyRM’s Metered Energy Efficiency Transaction Structure (MEETS) went live on the Bullitt Foundation headquarters building last month. The promise of MEETS, developed by Rob Harmon’s EnergyRM, was quickly all over the news, including the New York Times.

Quick Factoid:  The name Rob Harmon may be familiar to energy enthusiasts – he pioneered the Renewable Energy Credit (REC) 15 years ago.  The REC served to catalyze the renewables industry. Harmon hopes his newest innovation will do the same for the efficiency market.

MEETS relies on EnergyRM’s DeltaMeter, a proprietary energy modeling software, to report energy savings in real time.  The DeltaMeter seeks to address a perennial Achilles heel of many energy efficiency transactions: measurement and verification of energy savings.  EDF is addressing this same problem head-on by working with stakeholders to establish protocols and standards for efficiency projects through the Investor Confidence Project.  This complex problem, which has traditionally been part science and part art, has been impervious to a silver bullet solution.  Lots of interested folks are itching to take a look inside the DeltaMeter black box and see how EnergyRM plans to solve it.

The real innovation, though, may be the MEETS deal structure. It incorporates some key aspects of a Power Purchase Agreement (PPA), an ESA and OBR.

Here's how it works

Like OBR, MEETS enables third-party investors to provide the financing for an efficiency retrofit.  With MEETS, the investor pays a monthly fee to the building owner for the opportunity to install the efficiency measure in the building (just as a wind farm investor pays a rental fee to ranchers for use of their land).

M&V provides reports on baseline energy use (or, rather, “what would have been used” without the efficiency retrofits), current energy use (with retrofits) and the associated energy savings.  As you can guess, the complexity lies in reporting “what would have been” without the retrofits, and getting all parties to agree on it.

In the MEETS’ pilot in Seattle, the investor signed a 20-year PPA with Seattle City Light for all of the electricity savings produced by the efficiency measure.  The utility checks the DeltaMeter to determine the level of energy savings and pays the investor a price for each “negawatt-hour” produced (or energy generation avoided).  This gives investors a time horizon long enough to finance deep retrofits, but also leaves them bearing the performance risk of the retrofit (that is, if the efficiency savings don’t materialize, the investor doesn’t get paid).  The utility company gets the added benefit of being able to sell those electrons that would otherwise have been used to someone else without having to build new capacity from an energy source such as a power plant.

While the investor reaps the rewards from energy savings, what happens to the building owner?  Similar to an ESA, they continue to pay for baseline energy use.  However, where MEETS differs from an ESA is that the customer pays the utility company, rather than a contractor or Energy Service Company (ESCO) – meaning the utility will see no drop in revenue due to efficiency upgrades.  This has been a thorn in the side for utilities in traditional, non-decoupled energy markets, as increased efficiency, and therefore decreased energy use, historically meant decreased revenue.

Is this model going to change things?                                                                 

MEETS’ ultimate success is likely a function of two variables:  The attractiveness of contract terms (in particular, the PPA price that utilities are willing to pay) and whether or not investors are willing to assume performance risk.  That said, the launch of MEETS represents another bright point in the future of energy efficiency.  The DeltaMeter could represent a technical leap forward, and MEETS is another welcome contributor to the growing energy efficiency finance market.  If MEETS does take off, perhaps utility companies will no longer have to worry about efficiency measures eroding their top and bottom lines.  Investors can engage in deep energy retrofits and still be rewarded through the extended time horizon of long-term PPAs.

If nothing else, the launch of MEETS is an indication that energy efficiency is here to stay, and is growing fast.

By EDF Blogs

This commentary, authored by Robert Fares, originally appeared on Scientific American's "Plugged In" blog.

Modeled after the successful Defense Advanced Research Projects Agency (DARPA), the Advanced Research Projects Agency – Energy (ARPA-E) uses small grants to bring transformative energy technologies to commercialization. (Source: ARPA-E)

Last month, a subcommittee of the U.S. House of Representatives quietly voted to gut funding for the U.S. Department of Energy’s (DOE’s) efforts to promote innovative energy research. The DOE’s Advanced Research Projects Agency – Energy (ARPA-E) was first on the chopping block. The subcommittee voted to slash its funding from the current level of $252 million to just $50 million—an 80% cut. On top of that, the subcommittee cut funding for the DOE’s work on renewable energy in half.

ARPA-E was created by the 2007 America COMPETES Act, signed into law by then President George W. Bush. The agency is modeled after the successful Defense Advanced Research Projects Agency (DARPA)—credited for transformative innovations like GPS and computer networking. ARPA-E is intended to facilitate small government grants for basic research into transformative energy technologies that are too risky for the private sector. Since its first funding allocation from the Obama administration in 2009, ARPA-E awardees have already doubled the world-record energy density for a rechargeable lithium-ion battery and pioneered a near-isothermal compressed air energy storage system.

With help from a $4 million ARPA-E grant, Envia Systems doubled the world-record energy density for a rechargeable lithium-ion battery. (Source: Envia Systems)

ARPA-E’s numerous success stories and proven funding model have given it a measure of bipartisan support. ARPA-E is a major component of the Obama administration’s push for clean energy jobs, drawing high praise from Vice President Biden. Notably, Republican presidential candidate Mitt Romney agrees with the administration on this point: “Government has a role to play in innovation in the energy industry. History shows that the United States has moved forward in astonishing ways thanks to national investment in basic research and advanced technology.” In addition to Romney, other key Republican lawmakers have voiced support for ARPA-E: Senator Lisa Murkowski of Alaska and Senator Lamar Alexander of Tennessee both spoke at ARPA-E’s annual summit in February. Considering the fact that ARPA-E has already attracted over $450 million in private sector funding, its bipartisan support should come as no surprise.

This recent move to axe clean energy funding does nothing to truly address our budget woes and hurts our footing in the international race towards a clean energy future. As President Obama laid out in his landmark speech on climate change, it is time for Americans to come together and create a smart, clean, low-carbon economy that protects future generations from the threat of climate change. Programs like ARPA-E provide the vital funding needed to see innovative energy technologies through to commercialization.Now is not the time to cut these vital programs. We must continue supporting clean energy research and inspiring the next great generation of scientists and engineers.

Robert Fares is a Communications Intern at Environmental Defense Fund and a Ph.D. student in the Department of Mechanical Engineering at The University of Texas at Austin. Robert’s research at The University of Texas looks at how energy storage models can be used with large-scale data and optimization for economic operational management of battery energy storage. Through his research, Robert hopes to demonstrate the marketability and technical compatibility of emerging storage technologies.

By Brad Copithorne

This commentary originally appeared on EDF's California Dream 2.0 Blog

Last week, the California Public Utilities Commission (“CPUC”) issued a proposed decision with the final implementation rules to create the nation’s first On-Bill Repayment (“OBR”) program for commercial properties.  If properly constructed, the program is expected to allow building owners to finance clean energy retrofits with third party capital and repay the obligation through their utility bills.

The good news is the CPUC’s proposed decision contains the vast majority of the program elements necessary to create a flourishing financing market for energy efficiency and renewable projects.  The CPUC ordered robust disclosure to tenants and property owners of any OBR obligation in place, required a centralized program administrator to reduce expenses for market participants, required an equitable share of partial payments between the utility and the lender and agreed that nonpayment of an OBR obligation will result in the same collection procedures from the utility as nonpayment of an electricity charge.

Unfortunately, constructing a successful financing program is much like building a boat.  A boat with 90% of its hull in place will not travel very far.  The proposed decision appears to also have a potentially fatal flaw.  The CPUC has required all subsequent owners and tenants of a property to provide consent to ‘accepting’ the OBR obligation, but does not specifically state what will happen if the consent is not given.

OBR can work for lenders when it significantly reduces risk and simplifies the underwriting decision.  ‘If the lights are still on, then the lender is getting paid’ is a simple rule that will provide significant comfort to ratings agencies and credit committees.  Downtown office buildings and suburban shopping malls are foreclosed on a regular basis, but in almost all cases the lights stay on.  If an OBR obligation is sure to be paid — even after a foreclosure — the availability of investment and cost of financing will improve dramatically.

On the other hand, if repayment is somehow dependent on the next owner and tenant providing consent, then the bank will have a new and unknown underwriting risk.  Furthermore, the bank will likely assume that, given a choice, most new owners would choose not to provide consent.

Based on numerous conversations with financial institutions, EDF believes an OBR program that allows future tenants or landlords to change the nature of the OBR obligations will not generate any meaningful interest from lenders and investors.

Fortunately, the CPUC still has time to get it right.  EDF will be working closely with several financial institutions and project developers to make sure that the CPUC clarifies that a lack of consent will not affect the nature of the OBR obligation.

Assuming we get a good OBR program in place, there is a large group of project developers, lenders, ESCOs, solar investors and other vendors that are expected to participate in the program.  The CPUC proposed decision indicates an effective date near the beginning of 2014.

By Jamie Fine

This commentary originally appeared on EDF's California Dream 2.0 Blog

When was the last time you really gave a lot of thought to your electric bill?

If your answer is “not very often”, then you’re not alone. In fact, the typical household thinks about their electric bill only six minutes a year.

The California Public Utilities Commission (CPUC) now has the opportunity give people another way to control household energy bills by creating a system where changing the time you use electricity can save money. This won’t mean you’ll need to invest more time thinking about energy use, but you’d be well-served to think about the timing of it.

Last week, the CPUC held a public workshop inviting stakeholders — PG&E, SCE and, SDG&E, along with consumer, industry, and environmental groups — to present and discuss their proposals for revising the system of charges for residential electricity use. I had the pleasure of presenting EDF’s proposal for a time-of-use (TOU) pricing system: For customers looking for another option for saving money on their monthly bill, EDF sees TOU as the best pricing policy for both people and the environment; customers uncomfortable with this option would be able to “opt out” and choose another pricing structure.

Currently, the standard “tiered” rate charges customers higher prices for higher electricity usage. The approach is intended to send the message: “The more you use, the more you pay.”

Yet, current rates hide the true cost of electricity service at certain times of the day – and most customers don’t know where their usage falls until they actually see the bill at the end of the month. Ultimately, this lack of information prevents customers from making informed decisions about their energy use, limits their options for keeping bills within budget, and makes the overall energy system in California dirtier and more expensive.

As detailed in our proposal, EDF has found that updating the current pricing policy to be based on the timing of actual energy use will empower consumers to save money, dramatically lower overall system costs, facilitate more efficient usage of electricity generation assets, lower peak energy demand, provide more accurate and effective energy conservation incentives, and more equitably share energy system costs amongst customers. Here is a short list of what TOU can do for you, and California:

• Dramatically Lower System Costs.  Using the utilities’ own data on the costs of serving electricity to customers, EDF estimates that if half of residential customers adopt the optional TOU rates available already , we’d reduce the cost of service by around $500 million each year.  If translated directly into savings for residential electricity customers, electricity rates could be reduced significantly: a roughly 15% rate decrease would be enjoyed by all customers. How can this be so?  Simply put, it is most expensive to provide customers with electricity at times when demand for electricity is highest.  If customers paid for energy based on actual costs of electricity service, they would see higher prices at peak times and thus be motivated to shift energy use to cheaper times of the day.  This shifting is better for overall system costs, and better for your wallet.

• Avoid Adverse Environmental Impacts. TOU will: (1) reduce the need for “peaker” power plants that tend to be fossil-fueled, expensive to operate and among the most polluting resources on the system, (2) reduce the environmental impacts and costs of siting, operating and building power plants and transmission lines, and (3) help to integrate increasing quantities clean, renewable resources.

• Attract Clean Energy Investments for Residential Consumers. TOU will spur innovation in the electricity marketplace, promoting the development of new services and technologies that enable utilities and customers to better manage electricity production and use through distributed, resilient, clean, and low-cost energy services and products. While the average customer may not think much about how and when they use electricity, service and technology companies live and breathe it. TOU rates provide new value propositions that clean energy innovators will deliver to our doors.

• Reward you for your choices. A recent survey of nearly 5,000 customers by Pacific Gas and Electric and Southern California Edison found that 75 percent have tried shifting their energy use already – even though they receive no financial rewards to do so.

EDF’s proposal is a win-win for people and the environment, and takes us along the path to a cleaner, cheaper, and more resilient energy system. I urge the CPUC to conclude the same with a decision this Fall that will set the direction of California electricity pricing and prompt utilities to provide the robust consumer education and enablement with set-it-forget-it technologies.

While the concept may be complex, TOU will be better for you, for the environment, and the clean energy marketplace.

By Elizabeth Stein

One of the ways you can tell that in idea is gaining real momentum is by looking at the people being tapped to lead it.  Last week, New Yorkers got a good idea how serious their leaders are about clean energy when the State Senate confirmed Governor Andrew Cuomo’s appointment of Audrey Zibelman, an internationally-recognized expert in energy policy, markets and smart grid innovation, to the New York Public Service Commission (PSC).  The PSC regulates the state’s public energy utilities, and once Ms. Zibelman assumes office, Governor Cuomo will designate her as chair of the PSC.

Ms. Zibelman was president and chief executive officer of Viridity Energy Inc., a pioneering smart power company she founded after more than 25 years of electric utility industry leadership experience in both the public and private sectors. Previously, Ms. Zibelman was the executive vice president and chief operating officer of PJM, the Regional Transmission Organization that operates the world’s largest wholesale electricity market and serves 14 states throughout the eastern United States.

Ms. Zibelman’s is not a symbolic appointment.  It is a welcome sign of New York State’s commitment to building a smarter, modernized energy system that enables wider use of renewable energy and energy efficiency and offers greater resiliency to extreme weather events like Superstorm Sandy. Change takes both leadership and expertise, and EDF believes that Ms. Zibelman will provide both.

With her help, the state should work with key stakeholders to enable wider use of clean energy sources and innovative energy technologies that give consumers more flexibility in how they use and produce energy. Doing so will help make the grid stronger and more crisis-resistant, and open up opportunities for new ways to finance the upgrades needed to take full advantage of energy efficiency in New York’s built environment.

This is an exciting time for New York, and EDF looks forward to working with Ms. Zibelman in her new role.

By EDF Blogs

Source: Bulk Transporter

This blog post was written by Jason Mathers, Senior Manager of EDF’s Corporate Partnerships Program.

The International Energy Agency weighed in last week as bullish on the future of natural gas as a transportation fuel.

According to the Wall Street Journal, the IEA “expects natural gas use in road and maritime transportation to rise to 98 billion cubic meters by 2018, covering around 10 percent of incremental energy needs in the transport sector.”

Three factors are behind this increase in the use of natural gas for transportation, according to Maria van der Hoeven, the IEA's executive director. These are the fuel’s “abundant supplies as well as concerns about oil dependency and air pollution." The cost factor is particularly a driver for commercial fleet operators where current fuel prices have become more favorable for natural gas over diesel.

In the U.S., all new trucks fueled by diesel or natural gas must meet the same standards for emissions of particulate matter and nitrogen oxides. Natural gas engines for medium- and heavy-duty trucks have surpassed U.S. Environmental Protection Agency’s stringent standards for particulate matter emissions by as much as 80 percent and for nitrogen oxides by up to 35 percent. Cummins Westport, the leading producer of natural gas engines, is investigating the feasibility of reducing NOx emissions from its spark-ignited natural gas engines to levels significantly below the current federal emissions standard.

Natural gas trucks have the potential to deliver tangible greenhouse gas emissions benefits over their petroleum-based counterparts. This certainty that natural gas vehicles are able to consistently deliver on their potential climate benefits in part depends on minimizing methane leaks caused by vehicle operations, refueling and maintenance.

In March, EDF announced our work with leaders in vehicle emissions research and the trucking and natural gas fuel industries to determine emissions of methane associated with routine operation of natural gas fleet vehicles fueled by compressed or liquefied natural gas.  Already in progress, this study is the first attempt to directly measure methane emissions at CNG and LNG fueling sites and vehicles. The study includes transit buses, tractor trailers, and vocational fleet vehicles at both public and private fueling location.

Principal Investigator for this project, Nigel Clark said:

“The West Virginia University team is in the data-gathering stage. Some areas we have already explored and have taken measurements of include fuel system leaks from several fleet trucks, tailpipe emissions from over-the-road trucks and refuse trucks and methane loss at CNG fueling stations. We are also defining our field measurement protocol and developing a model and experimental plan to describe LNG station methane loss.”

In an exciting recent development, Clean Energy, North America’s largest provider of natural gas fuel for transportation, signed on as a partner in the study. Clean Energy builds, operates and maintains CNG and LNG fueling stations.

Clean Energy joins a group of industry leaders seeking to understand the scope of methane emissions associated with the refueling and operation of natural gas fleet vehicles. Other industry partners in this study include the American Gas Association, Cummins Westport, PepsiCo, Shell, Volvo Group (Volvo Trucks and Mack Trucks), Waste Management and Westport Innovations.

The International Council on Clean Transportation – an independent nonprofit organization that conducts transportation research and analysis – is also supporting the project.

The WVU study is part of a broader EDF effort involving a number of researchers and companies to better understand and characterize methane leakage rates across the natural gas supply chain. The results of the first study, led by researchers at the University of Texas and that focuses on production emissions at the well pad, will be released in the coming weeks. Results of the WVU study are expected to be published in a peer-reviewed journal in early 2014.

As the IEA projections released last week made clear, natural gas is poised to play an increasingly important role as a transportation fuel – both here in the U.S. and around the globe. Most of this natural gas is likely to be consumed by medium- and heavy-duty trucks, an already significant source of greenhouse gas emissions within the transportation sector. Better understanding the climate impacts of a switch to natural gas in these areas is essential – and is precisely why EDF is involved.

When you’re on the road to someplace new, much like the uncharted path ahead for a growing natural gas fleet market, a map can be the difference between getting where you’re going or ultimately missing your mark. This cooperative study is an effort to ensure that these vehicles live up to their environmental potential. Bringing data to the fore that will provide much needed direction on the actual scope of methane emissions associated with operating a natural gas fleet. This information will be critical to putting solutions in place that minimize leaks and maximize the greenhouse gas benefit of natural gas as a transportation fuel.

By Elena Craft, PhD

This commentary originally appeared on EDF's Texas Clean Air Matters Blog

Last week, the City of Houston announced that it would increase its purchase of renewable electricity to cover half of its energy use.  The city will use almost 623,000 megawatt-hours of electricity from renewable sources per year—equivalent to the energy used by 55,000 residential homes annually.  The purchase makes Houston the largest municipal buyer of renewable energy in the nation.  While Houston’s latest renewable energy purchase may seem at odds with its reputation as an oil and gas hub, it’s exactly the sort of common-sense decision we expect from a city that’s touted as the energy capital of the nation.

Houston is in good company among other Texas cities. The City of Austin already gets 100% of its electricity from renewable sources.  To make the switch, the city leveraged Austin Energy’s GreenChoice program, one of the nation’s most successful utility-sponsored and voluntary green-pricing programs.  The program is part of Austin’s Climate Protection Plan, which establishes a 35 % renewable portfolio goal for Austin Energy by 2020.  In San Antonio, the municipally owned CPS Energy has emerged as a leader in smart power. Through its New Energy Economy initiative, CPS Energy is growing its network of smart meters and expanding its installed solar capacity, among many other sustainable initiatives.  Today, CPS Energy uses more solar energy than any other Texas utility, while still having the lowest electric rates among the top 10 largest cities in the United States.

Beyond its latest renewable energy purchase, Houston is home to a number of other clean energy efforts.  With funding from the U.S. Department of Energy, the city is working to streamline and refine the solar permitting process.  On top of that, the city actively supported SB 385 (Property Assessed Clean Energy Act), which helps break down barriers to financing water and energy conservation efforts. Houston is also exploring how innovative energy technologies can help shield residents from extreme weather events.  The city used grant funding to install 17 emergency solar-powered generation units at fire stations, parks, neighborhood centers and schools.  All in all, Houston’s progressive energy initiatives have helped reduce the city’s building energy use by 30% and its emissions from municipal operations by 26 %.

Earlier this week, President Obama’s landmark climate speech called on America to develop its potential for a clean, low-carbon economy that protects our children from the threat of air pollution and climate change.  What we’re seeing in Houston and other Texas cities is indicative of a larger national movement toward common sense, smart power policies that cut harmful carbon pollution while driving innovation, cutting energy waste and energy bills, creating jobs and protecting public health.  With its latest renewable energy purchase, Houston shows us that it will continue its position as a leader in the new American energy economy.

By EDF Blogs

This commentary originally appeared on the EDF Climate Corps Blog

By: Katie Ware, EDF Senior Marketing Communications Specialist

The environmental community is abuzz with reactions to President Obama's wide-ranging Climate Action Plan. His speech introducing the plan Tuesday sparked immediate conversations about the Keystone XL Pipeline, the coal industry, the transportation sector and half a dozen other hot button environmental issues.

For me, his speech hit home in the first minute. Addressing the crowd at Georgetown University, he said he wanted to speak directly to my generation “because the decisions we make now and in the years ahead will have a profound impact on the world that all of you inherit.”

Confident, connected and open to change (says Pew), we Millennials are 95 million strong. We elected and then re-elected Obama looking for precisely this type of bold action on issues we feel passionately about.

“Someday our children and our children’s children will look us in the eye and ask did we do all that we could when we had the chance to deal with this problem and leave them a cleaner, safer, more sustainable world. I want to be able to say yes we did. Don’t you want that?” he asked.

My answer to the President is, heck yes, and my peers are with me.

As we speak, 116 of the nation’s brightest and best Millennials are proving their willingness to do this through participation in EDF Climate Corps. EDF Climate Corps fellows hail from the nation’s top graduate schools and could spend their summer internships working wherever they want. But year-after-year, many of the nation’s most capable MBA and MPP students choose to roll up their sleeves to tackle the energy challenge for some of America’s most influential public and private sector organizations.

Since 2008, EDF Climate Corps has hand-selected, trained and embedded 400 energy efficiency superstars in hundreds of corporations and public sector organizations around the U.S. These young people have found $1.2 billion in energy savings at participating organizations like Google, GM, PepsiCo and Verizon, and they’re graduating with job offers for positions like Director of Sustainability and Energy Manager.

The President reminded us that we can choose to fear the future, but Americans have always taken the path to shape the future. That’s just what EDF Climate Corps is doing – building the next generation of business leaders with the skills we need to shift our nation toward a cleaner, more prosperous future.

He was smart to call us to action. We Millennials are outspoken and online. He knows that. He told us to tell our classmates, our colleagues, our parents and our friends what’s at stake – to remind them “there’s no contradiction between a sound environment and strong economic growth.” That’s what EDF Climate Corps fellows are doing every day in these organizations, in their schools and right here on the EDF Climate Corps Blog.

How do you plan to answer the President’s call to help spread the word?

By Jim Marston

Source: Ethan Miller/Getty Images

Today President Obama took an important step toward meeting the promise of his inaugural address to “respond to the threat of climate change, knowing that the failure to do so would betray our children and future generations.”  The headline, of course, is the commitment to take serious action to address the most significant challenge our generation faces – climate change. And, with it, the extreme weather and public health burdens that are already making life harder for vulnerable regions and people nationwide, and that stand to become so much worse as the root cause remains unaddressed.

In his Climate Action Plan announced at Georgetown University, the President laid out his vision for putting in place common sense policies that will cut harmful carbon pollution while driving innovation, cutting energy waste and energy bills, creating jobs and protecting public health. 

Most Americans would be shocked to know that there are no current limits on carbon pollution from power plants. By setting the first standards in history for carbon pollution from power plants in the United States – which produce 2 billion tons of this pollution each year, or about 40% of the nation’s total – the President will help modernize our power system, ensuring that our electricity is reliable, affordable, healthy and clean.  And we can do this in a way that can give industry the flexibility it needs to make cost-effective investments in clean energy technologies.

A modern, intelligent, interactive electricity system will help minimize problems that arise from extreme weather events and other disruptions and maximize renewables, efficiency and consumer choice.  Since the President took office, our country has seen the beginnings of a revolution in the energy sector – technological innovations have put us on track to energy independence and clean, homegrown energy resources constitute a growing share of electric generation capacity.  Reducing wasted energy and using more clean energy offer enormous potential for our health, economy and climate, including:

-          Little to no harmful pollution = improved public health

-          An unlimited, homegrown energy supply = less reliance on foreign oil

-          Economic development = more jobs

-          Stable energy prices = lower electric bills and improved economic stability  

-          A more reliable, resilient energy system = less costly, scary blackouts

-          A global leadership position in the multi-trillion dollar clean energy economy = reclaimed pride and competitiveness for America’s manufacturers

President Obama’s speech recognized that America must develop this potential, and his plan charts a clear path forward to accelerate the transition to a clean, low-carbon economy.  Thanks to the President, the days of silence and inaction on climate are over. This plan could become an important part of his legacy.  We still have a long way to go.  Now it’s up to all of us to join with the President in confronting the defining challenge of our time.