Energy Exchange: Energy efficiency

As New Energy Secretary, Rick Perry Will Inherit Trump’s Assault on American Clean Energy

7 years 3 months ago

By Jim Marston

Those of us who lived through Rick Perry’s governorship in Texas were concerned he’d take his “pollution-first” mentality to Washington. But the Trump administration’s assault on clean energy started before Perry cleared the first hurdle for becoming Secretary of Energy today, signaling he’ll likely be confirmed by the full Senate.

In two short weeks, President Trump laid out the dismal, dirty, and dangerous energy platform he’ll expect Rick Perry to execute. It’s up to us to protect and defend the jobs clean energy creates, along with its benefits for business, consumers, health, and our natural resources.

Energy efficiency
President Trump’s regulatory freeze halted four rules designed to reduce energy waste and, consequently, energy bills and greenhouse gas pollution. The Washington Post reported, “The freeze would appear to have the effect of sweeping up four very nearly finished Energy Department energy efficiency standards, affecting an array of products, including portable air conditioners and commercial boilers.” Heating and cooling use the most energy in buildings. This rule on commercial air-conditioners was published last year. The amount of C02 reduction and the fact that the Department of Energy negotiated the rule with industry make it a landmark example of how efficiency rules don’t hurt manufacturers while saving utility customers billions of dollars. Closing off this avenue of cooperation between the government and industry stakeholders takes away drive for innovation and allows others (China) to take the lead.

Free energy markets
On Jan. 27, the president named Cheryl LaFleur acting chair of the Federal Energy Regulatory Commission, bumping former chairman Norman Bay to a regular commissioner. Under Bay’s watch, FERC won the monumental Order 745 demand response case before the U.S. Supreme Court, and it blocked subsidies to aging coal and nuclear facilities in Ohio. LaFleur’s appointment clearly marks a new philosophy, and Bay resigned hours after the announcement.

Renewables
Trump’s team outlined a proposal for eliminating the Office of Electricity and the Office of Energy Efficiency and Renewable Energy. In addition, The Hill reported the proposal would “roll back funding for nuclear physics and advanced scientific computing research to 2008 levels…” – back when the GDP was 20 percent smaller than it is today.

As new energy secretary, Rick Perry will inherit Trump’s assault on American clean energy
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Energy information
The new administration gutted the Department of Energy’s website, essentially erasing most of the home page and deleting blog entries and news items. Numbers on the Energy Department’s web page show, among other things, that 2.2 million Americans are employed, in whole or in part, in energy efficiency jobs. This data loss is part of a pattern of hiding important environmental data on which many sectors of the economy depend.

Clean air funding and rules
A leaked administration draft document shows plans to undercut clean energy – presumably through executive orders, congressional bills, budget cuts – by barring EPA from permit decisions and ending Clean Air Act greenhouse gas regulations.

The Huffington Post’s Nick Visser put it perfectly: “We know what the country looks like without the EPA: Filthy.” Some of us still recall the dirty air, burning rivers, and indiscriminate use of dangerous pesticides that spurred the creation of the Environmental Protection Agency in the first place. We also recall that it was a Republican president who planned and built the agency. When it comes to clean energy and clean air, those of us with long memories know that federal rules are just as important today.

When it comes to clean energy and clean air, those of us with long memories know that federal rules are just as important today.

The EPA is a frequent and easy political target in election years. We’re used to venomous and ignorant soundbites about the agency. But President Trump’s attack on environmental and energy progress goes far beyond the usual rhetoric. In his first two weeks in office, he’s taken a blowtorch to the very institutions that have spurred energy innovation, jobs, and the protection of our children’s health.

Recent clean energy victories in CaliforniaIllinoisMaryland, Michigan, New York, and Ohio, make clear that states are taking the lead as the federal government makes plans to dismantle progress. At EDF, we’re also doing our part to help make sure that doesn’t happen, such as through our new clean energy and sustainability jobs report, which shows the number of clean jobs is growing impressively in the U.S.

But individuals can help, too. We hope you’ll join us through your own grassroots activism, like call-ins around offensive government actions, and by staying informed. Together, we can protect and defend clean energy progress.

Photo source: Flickr/Gage Skidmore

Jim Marston

3 Republican Governors Embrace Clean Energy’s Economic Promise

7 years 3 months ago

By Dick Munson

Last week, the U.S. inaugurated a new president who has vowed to abandon the landmark Paris climate agreement and roll back bedrock American environmental protections.

But turn to the states and you’ll find a different story, even in the red states that elected President Trump. In fact, Republican governors in the Midwest are prioritizing economic growth and job creation by accelerating investments in energy efficiency and renewable energy. In the few weeks after the election, leaders in Illinois, Ohio, and Michigan have adopted new policies that help tackle climate change and grow the clean energy economy.

Illinois

With passage of the Future Energy Jobs Bill, Illinois sent an important signal to the rest of the nation: We can create policies that grow the economy, save customers money, and protect the planet.

Supported by a Republican governor, Bruce Rauner, and a Democratic legislature, the law will lead to $12-15 billion in additional private-sector investment coming to Illinois and create tens of thousands of new jobs. The bill includes provisions for doubling the size of the state’s energy efficiency portfolio, which will lower customers’ electricity bills, and building 4,300 megawatts of new wind and solar generation by 2030.

3 Republican Governors Embrace Clean Energy’s Economic Promise
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These advances put Illinois on track to achieve a nearly 56-percent reduction in greenhouse-gas emissions from the power sector, well beyond what the Clean Power Plan – the nation’s first-ever limit on carbon pollution from power plants – would require. Gov. Rauner said the legislation “allows us to protect jobs, ratepayers, and taxpayers.”

Ohio

In nearby Ohio, Republican governor John Kasich in late December vetoed legislation that would have gutted efficiency and renewable investments in the Buckeye State.

The Ohio legislators behind the bill sought to challenge climate science and restrict competition in electricity markets. But Gov. Kasich stood up to that extreme position, seeking to advance economic development and customer choice instead. Of the decision, Gov. Kasich said, “Ohio workers cannot afford to take a step backward from the economic gains that we have made in recent years.”

Michigan

In Michigan, Republican governor Rick Snyder recently signed a bill that extends and improves the state’s efficiency and renewable standards. The bill, adopted by a Republican legislature, removes the existing cap on energy efficiency program spending, adds tiered incentives to encourage utilities to exceed the efficiency target, and increases the previous Renewable Portfolio Standard requirement for clean electricity from 10 to 15 percent. Gov. Snyder said, “This was one of the finest illustrations of good, bipartisan, and broad-based work I’ve seen in my time as governor.”

These recent bipartisan advances reflect not only a stronger coalition of environmental and clean energy advocates, but also well-organized groups of major corporations seeking investment and cost-saving opportunities from . Finally, they reveal growing support from conservative groups, who want customers to enjoy energy options and markets that allow new competitors to thrive.

As federal leaders back away from climate action and to make our air and water dirtier, Midwestern Republicans are advancing policies that lower harmful pollution and help people save money on their electric bills, while spurring private-sector investment, creating jobs, and saving billions of dollars in wasted energy. These commitments, moreover, are occurring in the very region that proved so critical in the presidential election. The new administration would be wise to listen to fellow Republicans and embrace clean energy’s economic promise.

Dick Munson

The Future is California – How the State is Charting a Path Forward on Clean Energy

7 years 3 months ago

By Jayant Kairam

The late California historian Kevin Starr once wrote, “California had long since become one of the prisms through which the American people, for better and for worse, could glimpse their future.” These words have never felt truer. Just ask Gov. Jerry Brown or the leaders of the state legislature, who are all issuing various calls to action to protect and further the state’s leading climate and energy policies.

California is the sixth largest economy in the world and the most populous state in the nation. What’s more, we’ve shown that strong climate and energy policy is possible while building a dynamic economy. We’ve proved that clean energy creates far more jobs than fossil fuels – nationwide, more than 400,000, compared with 50,000 coal mining jobs – while protecting the natural world for all people.

It’s no shock our leaders are fired up. There’s too much at stake. With our state’s diverse, booming yet  unequal economy, we are not unlike the rest of the nation. State-level leadership is more important than ever, and other states can and should learn from California to drive action across the U.S.

A case study in a clean energy economy

Business and economic growth relies, in part, on certainty and a long-term view. That’s why electric fleet-firm Proterra announced it would manufacture its buses just outside Los Angeles – it understands its market is on the West Coast. Proterra is only the most recent of a long list of firms that understand California’s environmental policies provide market opportunities.

Silicon Valley titans like Google, Apple, and Facebook are all are well on their way to meeting internal commitments to 100 percent renewable energy. And California was recently ranked among the top five states for corporations that seek to buy or build renewable energy generation – attracting job-creating enterprises.

Importantly, clean energy is sparking businesses of all sizes. A new report highlights how the state’s long-standing energy efficiency requirements have helped create 300,000 jobs in energy efficiency – most coming from small firms.

What to watch in California

These are just a few examples of how forward-thinking policy – including the state’s 2030 climate targets and 50 percent renewable portfolio standard – are shaping markets, creating jobs, and stimulating economic growth. Citizens are demanding strong policy as clean energy technologies from LEDs, to smart thermostats, to rooftop solar continue to fall in costs.

Thus, California leadership is looking ahead to the clean energy frontier while also defending what we have. The three themes that guide where we are heading broadly center around effectively integrating cost-effective renewables, capitalizing on the potential of distributed energy resources, and making sure those advancements are accessible to all Californians. As more states make clean energy growth critical to economic and social progress, including the success of wind power in Texas, the recent bipartisan legislative victory in Illinois, and New York’s overhaul of their energy sector, it’s apparent that progress is catching on.

Integrating renewables to shape a clean, reliable grid

Although California is not new to enacting policies aimed at integrating renewables onto the grid, it remains paramount. Recent analysis suggests we are two years ahead of schedule in terms of hitting energy-load predictions associated with the amount and speed of California’s solar growth, illustrated by the infamous . This is, no doubt, a good problem to have. However, the growth  and cost competitiveness of renewables are making ever more pressing the challenge of meeting steep afternoon ramps in energy demand – when Californians come home and switch on their lights and appliances.

We are two years ahead of schedule in terms of hitting energy-load predictions associated with the amount and speed of solar growth."

The state has worked to tackle renewables integration challenges from multiple fronts. Regulators passed rules to incentivize energy storage. Successful and smart design of time-of-use rates has the potential to shift energy load, and drive customers to consume electricity when it’s cheapest and cleanest. Additionally, the push to create a western-wide electric market is in large part due to the need to find new markets for California’s cheap, wasted solar, and to bring in cost-effective renewables from other western states when Californians need it most.

Moreover, a recent study by the California Independent System Operator (CAISO) showed that large-scale solar coupled with the right set of inverter technologies can transform renewables into grid resources that meet ramping and reliability needs. First and foremost, the key will be to extend our fantastic midday solar to serve energy demand throughout the day using clean energy strategies and incentives.

Optimizing distributed energy resources

California leads the nation in many indicators of distributed energy resources from the most advanced meters to solar installation. However, ensuring the positive impact of these clean resources reaches the grid is where the rubber hits the road. This will include mapping out and structuring markets so distributed energy resources, like  battery storage, can provide cost-effective power where it is most beneficial to help offset the need for future generation capacity.

Thankfully, bolstered by California’s leading clean tech industry, the state is already testing market reforms and demonstrations to prove the potential of these distributed resources. Here are a few examples:

  • This past summer, the three major utilities in the state contracted 82 MW in demand response from the Demand Response Auction Mechanism, a cutting-edge market vehicle for residential demand response.
  • Market reform is also happening through aggregation. The CAISO, which controls much of the state’s grid, received approval for a framework in which smaller distributed energy resources can meet reliability needs at the wholesale level when grouped together.
  • The Department of Defense is funding the largest “vehicle-to-grid” demonstration project in the world at the Los Angeles Air Force Base to test the potential of two-way power sources like electric vehicle batteries.  The aim is to determine whether the Defense Department’s fleet of electric vehicles can reliably provide power back to CAISO during times of peak demand.

As we look to further capitalize on the flexibility and affordability of distributed energy resources in forums like the major utilities’ long-term procurement planning processes, it will be critical to continue to push the tools that do the following: use methods like aggregation, use resources like two-way power, take location into account, and rethink the utility business model.

Ensuring success reaches all communities

California, through the SB 350 Barriers Study, is also examining how clean energy can spur growth in low-income and disadvantaged communities across the state. This signals that the state realizes that in order to achieve our energy goals we need to ensure clean energy resources are accessible to all communities. Despite big economic gains, the state continues to grapple with near 20 percent poverty. In both urban and rural regions there are high percentages of renters and seniors, who may not have the financial capital or live in physical environments suitable for investing in clean energy. These barriers make solutions like rooftop solar, high efficiency appliances, and household storage just out of reach.

The state has shown a good track record of protecting burdened communities from further environmental harm and incentivizing job-creating clean energy. However, the robust, far-ranging set of recommendations in the Barriers Study provides a source of inspiration and acknowledgement that we need to do more.

Our state is a multi-faceted economy, built on a diversity of people, politics, and industries, and defined by wealth,  poverty, and millions of hardworking Americans –  just like the rest of the country. We invite states in regions from the Pacific Northwest to the Mississippi Delta to learn from California’s success, and the challenges.

Jayant Kairam

Why Strategic Choices – and Water – Could Make People More Energy-Efficient

7 years 4 months ago

By Kate Zerrenner

At my household, a new year means a new energy and water-use baseline. By that I mean, every month, I look at how much electricity and water I used in comparison to the same month the previous year – so I can try to be as efficient as possible. But I work in the energy field, and I know that’s not a typical New Year’s tradition. Most people don’t examine the trends of their energy-use or spend much time thinking about how to reduce it.

So, what motivates the “average” person to take action and be more energy-efficient? It depends.

A recent study by the Pacific Institute for Climate Solutions and the American Council for an Energy Efficient Economy (ACEEE) looked at the psychology behind individuals’ energy efficiency behavior, and how that information could be used to design more effective programs.

The study came away with some fascinating findings that show electric utilities need to be strategic in the way they create, as well as communicate about, their efficiency programs. Moreover, it led me to believe showing how energy efficiency relates to water – the quality and availability of which many people care about – could help encourage people to be more mindful about their energy use.

Study takeaways

One false assumption often made when designing an efficiency program is, if you give the customer the information and tell them what to do, they will do it. But information alone will not lead people to change their behavior.

Information alone will not lead people to change their behavior.

In order to ensure people actually hear and act on the message, utilities should consider:

  • Tailoring messaging: Rather than simply talking about saving energy, the program could emphasize improving air quality or saving money, depending on your audience. For example, the study concludes “conservatives are more likely to respond to messages about ‘wasted energy’ or ‘climate change’ than to messaging about ‘global warming’.” But first, utilities have to learn more about their customers to understand the language that will work best.
  • The right messenger: People are social animals, and we are more likely to listen to a message from someone we know and trust. The study found that recruiting trusted leaders from a social network, like a neighborhood or church, would be more effective than having the information come from an outsider.
  • Giving feedback: Letting people know their actions are saving energy makes it more likely they will continue to engage in that behavior. Plus, “the more frequently personalized feedback is given, the more effective it tends to be.” Other studies have shown real-time energy-use feedback can result in up to 12 percent household savings.
  • Using pledges: A commitment to do something – like promising to turn off all appliances when not in use – makes people “more likely to follow through with their planned actions.”

How water could help make people more energy-efficient
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The energy-water connection

Unless you live near a power plant or in a place with markedly poor air quality, you probably don’t think about how your own energy use can have a direct impact on the environment.

But what if you tied electricity to something more personal, like water?

I live in Austin, and my water comes from the Highland Lakes, a group of manmade reservoirs from the Colorado River just outside the city. I spent every summer as a kid swimming and boating in Lake Travis, part of the Highland group. In the worst year of the Texas drought, the beautiful Lake Travis looked like a mud pit. Businesses and marinas closed because the water no longer made it to what had been the shore. I’ll never forget how that lack of water made me feel, and it still inspires me to use water wisely. 

Every time you turn your lights on, you might as well be turning on the faucet, too. 

Connecting water to power could sway more people into thinking about how they use energy. Traditional power resources – like coal, natural gas, and nuclear – require a significant amount of water to produce energy: It takes an average of 21 gallons of water to produce one kilowatt-hour of electricity. The average American uses about 900 kWh per month – that’s nearly 19,000 gallons of water per person per month just for electricity! So, every time you turn your lights on, you might as well be turning on the faucet, too. If electric utilities made that connection to customers or policymakers, it could make the reality of our energy behavior more tangible.

Energy efficiency is a great way to reduce customers’ bills, save water, and lower pollution. But if utilities want people to take advantage of their energy efficiency programs, the new study from Pacific Institute for Climate Solutions and ACEEE suggests they should consider strategic tactics and messengers when delivering the critical details surrounding efficiency. One way to enhance engagement could be by emphasizing the inextricable link between energy and water, and helping people understand where their water comes from.

How you use electricity in your own home is a personal decision, but having a deeper knowledge of the impacts of those choices could lead to less energy and water waste – and healthier air for us all.

Photo source: iStock/nicolas_

Kate Zerrenner

Managing Methane: New Jersey’s Largest Utility Using Better Data for Better Decisions

7 years 4 months ago

By EDF Blogs

Data helps prioritize gas line replacement

By Simi Rose George and Virginia Palacios 

A new method of prioritizing gas infrastructure improvements is resulting in faster reductions of greenhouse gas emissions in New Jersey. Just over a year ago, we wrote about an order from the state’s Board of Public Utilities approving a settlement agreement for a $905 million, three-year pipe replacement program by PSE&G, New Jersey’s largest gas utility. This order, and the underlying settlement agreement were pioneering in one major aspect – PSE&G agreed to use environmental data to inform its infrastructure improvement efforts.

The order provided that the company would use data on leak flow rate (the speed at which methane is leaking from gas pipes) to help prioritize its local distribution pipe (“gas line”) replacement program. PSE&G is the first utility in the country to do so. The idea was that this data would be gathered by EDF as part of a collaborative project with Google Earth Outreach and Colorado State University through a survey of sections of PSE&G’s service territory targeted for gas line replacement.

Methane, the main constituent of natural gas, is a powerful greenhouse gas 84 times more potent than carbon dioxide over a 20-year time frame. Replacing the leakiest gas lines first (after safety has been considered) means emissions can be reduced much more rapidly.  In this way, PSE&G is generating benefits not only for the environment and public safety, but also for ratepayers, who pay the costs of leaked gas.

In Practice

Working with our partners, we surveyed 30 one-square-mile grids in PSE&G’s service territory, using a Google Street View car specially outfitted with methane sensors. PSE&G shared the type and location of the gas lines they were looking to replace, making it possible to orient the survey efforts in a manner responsive to the Company’s pipe replacement program. Readings were taken from May 2015 through November 2015.

As always, safety factors remain paramount in the prioritization of PSE&G’s pipe replacement efforts. What the new dataset on leak flow rate provides to PSE&G is a layer of insight not previously available. Where two or more grids have a comparable safety ranking and are not immediately hazardous, PSE&G is addressing the one with the higher methane emissions first. This allows the company to co-optimize environmental, ratepayer and safety benefits.

Impacts

We found an average of about one leak per mile of gas line within the 30 grid areas surveyed. Similar to other national studies on distribution pipeline leaks, we found that a few large leaks contributed to a substantial portion of the emissions we found.

PSE&G prioritized three grids for replacement based on leak flow rate, after replacing gas lines in all the grids that were deemed to have the highest safety risk. These three grids accounted for 37% of the total emissions we quantified, but represented only 9% of the gas line miles in the 30 grids that were surveyed.

Our analysis shows that using leak flow rate for prioritizing pipe replacement allowed PSE&G to achieve an 83% reduction of quantified methane emissions by replacing one-third fewer miles of gas lines than it would have needed to replace in order to achieve the same level of emission reduction under a business-as-usual scenario. These figures take on greater meaning when you consider that the average costs of replacement per mile of gas line on PSE&G’s system ranges from $1.5-$2 million.

The Bigger Picture

These findings have important implications for utilities across the country. In 2011, the Department of Transportation and the federal Pipelines and Hazardous Materials Safety Administration (PHMSA) issued a joint call to action to all state pipeline regulatory agencies, technical and subject matter experts, and pipeline operators to accelerate repair, rehabilitation, and replacement of the highest-risk pipeline infrastructure.  According to PHMSA, cast iron pipes, which are considered to be high risk infrastructure, represent approximately 30 percent of the total leak-prone pipe in the country. The U.S. Department of Energy estimates that the total cost of replacing cast iron and bare steel pipes in gas distribution systems is a massive $270 billion, underscoring the need to direct this investment in the most optimal way possible.

Our analysis shows that methane emissions reductions can be achieved more quickly nationwide if cutting edge leak quantification methods are used to prioritize cast iron distribution pipeline replacement programs. If PSE&G’s ratio of emissions to gas line miles (37% of emissions from just 9% of lines surveyed) were to be found nationally, prioritizing replacements using the method employed by PSE&G for 9% of the highest-emitting cast iron gas lines in the nation could result in 12,000 tons of methane emission reductions. That would have the same climate benefit as taking over 200,000 cars off the roads each year.

More Progress

Other utilities are exploring new leak quantification methods. EDF recently concluded a pilot project with Con Edison to characterize its backlog of non-hazardous leaks in Westchester County in New York. Con Edison will use this data to prioritize repairs of these leaks, addressing the largest ones first. Analysis of the data found that more than half the emissions could be eliminated by addressing the largest 18% of the leaks.

EDF is continuing to advocate before regulatory commissions across the country for this new method of implementing gas infrastructure improvements to be adopted more broadly by utilities. In the meantime, PSE&G is leading the way in using data and analytics to inform its asset management decisions.

EDF Blogs

Illinois’ Future Energy Jobs Bill Shows States are Taking the Lead to Build the Clean Energy Economy

7 years 5 months ago

By EDF Blogs

By Andrew Barbeau, senior clean energy consultant

Two years, three competing major energy reform bills, more than 300 diverse organizations and companies, and countless hours of negotiations have now come down to one important moment: Illinois’ Future Energy Jobs Bill is signed into law today.

A clean energy economic development package of monumental size, the Future Energy Jobs Bill will create thousands of homegrown jobs, save billions of dollars in wasted energy, and secure Illinois’ place at the forefront of the nation’s clean energy economy.

In fact, Environmental Defense Fund’s (EDF) analysis estimates Illinois will see an additional $12 billion to $15 billion in new private investment as a result of the new clean energy priorities in this bill. That’s the greatest economic development package in Illinois in years, and likely will be the largest for the foreseeable future.

It’s also the most significant climate bill in Illinois history. We estimate it will reduce harmful carbon dioxide emissions by more than 33 million metric tons annually in 2030. Combined with the ongoing impact of market changes on the fossil fuel industry, this means Illinois will reduce its carbon emissions by more than 50 percent from 2012 levels by 2030.

Oh, and did I mention customers’ bills will go down? Based on extensive analysis from the Illinois Commerce Commission and Illinois’ consumer watchdog Citizens Utility Board, the Future Energy Jobs Bill’s energy efficiency initiatives will lower customers’ electric bills.

At a time when President-elect Trump is threatening to roll back federal environmental protections, state victories like the Future Energy Jobs Bill are more critical than ever.

That’s the ultimate win, win, win.

At a time when President-elect Trump is threatening to roll back federal environmental protections, state victories like the Future Energy Jobs Bill are more critical than ever. And, with strong bipartisan support in the Illinois General Assembly and being signed into law by a Republican governor, the deal is a clear signal that Illinois is ready to reap clean energy’s economic rewards – even if federal leaders refuse to join us in this endeavor.

The basics

So far, much attention has been placed on the bill’s zero-emission credits, which reward two at-risk nuclear plants for being carbon-free. Yet that piece only represents a small fraction of the more-than-500-page bill, which encapsulates a series of long, hard-fought victories.

Illinois’ Future Energy Jobs Bill Shows States Must Take the Lead to Build the Clean Energy…
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Here’s why we’re calling the Future Energy Jobs Bill the most significant clean energy economic deal in Illinois’ history:

  • Energy efficiency: Building on the success of Illinois’ existing energy efficiency programs – which led to more than 85,000 jobs across the state – Illinois will now be home to one of the most ambitious energy efficiency programs in the U.S. Specifically, it requires the state’s largest utilities, ComEd and Ameren, to significantly reduce their energy use by 2030, with a focus on deeper, longer-lasting savings rather than one-off projects. And, according to an analysis by consumer watchdog Citizens Utility Board, these initiatives will help Illinoisans save nearly $15 on their electricity bills each year throughout the lifetime of the deal.
  • Renewable energy standards: For the past five years, Illinois’ Renewable Portfolio Standard (RPS) – which sets a minimum percentage of power coming from renewables – has not resulted in new renewable energy being built. The policy suffered from structural flaws, and renewable energy development in the state had flat-lined. The Future Energy Jobs Bill addresses the policy’s structural deficiencies and improves Illinois’ RPS, directly leading to the development of – at a minimum – 3,000 MW of solar and 1,300 MW of wind power, or enough to power almost 1 million homes.
  • Low-income initiatives: The deal requires $25 million per year to help low-income homes become more energy-efficient, saving money and energy. It also creates a comprehensive low-income solar deployment and job training program, Illinois Solar for All, which could set a national precedent in increasing access to the clean energy economy.
  • Community solar: Speaking of greater access, the bill creates the state’s first community solar It will allow those who can’t or don’t want to install solar panels on their roof – like home renters or apartment dwellers – to “subscribe” to a solar project at a local church, school, or business.

These clean energy initiatives will drive innovation, create well-paying jobs, and make Illinois more energy independent, while improving the health of both people and the environment.

Collaboration is key

For the past two years, the Illinois Clean Jobs Coalition has been working with the Illinois General Assembly and a wide array of stakeholders, ensuring Illinois would advance energy legislation that created jobs in every part of the state, saved customers money on their electric bills, and combatted the threat of climate change. When environmental organizations join together and work with businesses, members of the faith community, and labor, we can get a lot done.

The U.S. is currently experiencing an unprecedented convergence of clean energy innovation and economic growth, and Illinois’ bipartisan leadership is exactly what we need to take advantage of the opportunity. Modern, clean, and local job creation can and should transcend political divides. With Gov. Rauner’s signature, Illinois is sending an important message to the rest of the nation: we can work across the aisle to create policies that grow the economy and help people save money, while protecting the planet.

Over the next week, we will outline the core pieces of the Future Energy Jobs Bill. Part I of this is the historic agreement to fix and improve Illinois’ renewable energy policy. What does it entail, and what does it mean? Learn more here.

EDF Blogs

What Trump and Pence Don't Get about Clean Energy Jobs

7 years 5 months ago

By Jim Marston

President-elect Trump's victory tour began in Indiana last week, where he and running mate Mike Pence announced they had cobbled together enough taxpayer cash to convince Carrier – a gas furnace manufacturer that planned to move 2,000 jobs to Mexico – to keep some of its jobs in the state.

But just two years ago, Governor Pence allowed Indiana to become the first state to abandon its energy efficiency standards – a move that Carrier and other companies warned would threaten nearly 1,500 jobs and $500 million a year in local economic investment. Evidently, losing 1,500 jobs wasn't enough to worry about. Yet two years and a presidential election later, saving 1,000 on the backs of taxpayers is held up as proof that Trump is making good on his promise to reinvigorate the American economy.

Politics is theatre, but what worries me about the Carrier announcement is that it underscores how our new president and vice president don't understand the true economic potential of clean, modern energy.

The clean energy industry – everything from wind turbines and solar panels, to home energy storage and energy efficiency – is exploding around the country. In 2014, the U.S. clean energy market grew by 14 percent – at nearly five times the rate of the overall economy – to nearly $200 billion. That's bigger than the U.S. airline industry, and roughly equal to the pharmaceutical business. And this growth is creating millions of quality, homegrown jobs. If Trump wants to be the jobs president he promised he would be, someone needs to brief him on the facts.

There are more American jobs in solar energy today than in coal mining and oil and gas extraction. And the number of solar jobs in the U.S. has grown more than 20 percent in each of the last three years.

Wind energy is also a huge employer of Americans – especially in low-income and rural communities. American wind power supported a record 88,000 jobs at the start of 2016, and 70 percent of wind farms are located in low-income counties, supplying them with an economic boost. And despite Trump’s false claims that "we don't make windmills in the United States," over 60 percent of a modern wind farm's value is made in America by 21,000 factory workers. Even veterans are benefiting from the wind industry, as wind jobs use many of the transferrable skills veterans have.

What Trump and Pence Don't Get about Clean Energy Jobs
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And let’s not forget about energy efficiency, an industry that spans construction, manufacturing, and design. 1.9 million Americans are employed, in whole or in part, by the energy efficiency products and services industry – and almost 1.2 million of these jobs are in construction.

These are well-paying jobs that can’t be shipped overseas. In other words, they’re exactly the kind of jobs that Americans voted for this November. And they’re jobs perfectly suited for manufacturing workers that are pinched by today’s economy.

California provides an excellent case in point. Clean energy jobs there have increased 10 times faster than in other sectors over the past decade. Since 2006, the state has seen investments of $27 billion in clean energy venture capital. California experienced this remarkable growth all while lowering its carbon emissions because it embraced clean energy as an economic opportunity and not a threat.

If you add jobs that improve the efficiency of traditional industries – for example, the engineers that are reducing methane emissions from the oil and gas industry or improving the fuel efficiency of automobiles – the impact of "clean energy" on our economy is even larger.

Clean energy makes good business sense, and America's biggest businesses are jumping on board. Walmart plans to power half its operations with wind, solar, and other renewables by 2025. Microsoft invested in 237 megawatts of wind energy to power its data centers. Tesla is as much an energy company as it is a car company. Google is investing in renewable energy. Apple is not just a computer company, but a reseller of the excess electricity generated from its solar panels. America, Inc. is betting on clean energy, and for good reason. Renewables offer shelter from the price volatility of fossil fuels, saving companies money and giving them a competitive edge in the long run.

Clean energy is bi-partisan. There is now more wind and solar energy in Republican districts than in Democrat districts.

Clean energy is bi-partisan. There is now more wind and solar energy in Republican districts than in Democrat districts. My home state, Texas, produces more wind power than most countries. Reliable, modern, clean, and local job creation transcends political divides. It’s a great opportunity for a president who America hopes will spur the economy and heal some deep political wounds.

Finally, and maybe most importantly, clean energy is far more popular with voters than fossil fuel energy. According to a recent Pew Poll, huge majorities of Americans say they want more wind (83 percent) and solar (89 percent) – nearly double the number that want more fracking (42 percent) or coal mining (41 percent). Even 75 percent of Trump voters support taking action to accelerate the development and use of clean energy in the United States.

Across the country, in red states and blue, Americans want the next generation of job growth to come from technologies and industries that create local jobs and keep our communities clean and healthy.

If we learned one thing this election, it's that Donald Trump likes to give people what they want. In that regard, I hope he governs as he campaigned and grabs hold of the clean energy potential right in front of him. It won't just be good for his legacy, it will be good for our economy, our climate, and our future.

This post originally appeared on Forbes.

Jim Marston

The $330 million question: Why new oil and gas waste rules are something we all should support

7 years 5 months ago

By Dan Grossman

Today the Bureau of Land Management finalized new rules that limit the amount of methane oil and gas companies can leak, vent, or flare on the 245 million acres of taxpayer-owned and tribal lands. This is a huge, $330 million dollar problem according to a recent study from ICF international. While an analysis from the Western Values Project estimates taxpayers could lose out on almost $800 million over the next decade – unless the BLM acts to reduce wasteful venting and flaring practices.

Reeling in waste of resources that belong to the nation’s tribes and taxpayers is an effort that folks from across the   political spectrum can get behind.

Methane is the essential ingredient of natural gas and a potent climate forcer when emitted to the atmosphere.  Wasteful drilling practices on public and tribal lands – largely located in the rural Western U.S. – exacts both financial and environmental costs.

Fortunately, the surge in affordable technologies has made it possible for oil and gas companies to capture methane and reduce waste cost effectively.  It’s a key reason why elected officials from across the West and thousands of community members support the BLM’s efforts to crack down on waste.    Moreover, according to a recent poll, 80% of Westerners (Democrats, Republicans and independents)  support these efforts – numbers that were reflected at public hearings where supporters of BLM’s efforts outnumbered adversaries by a 3-to-1 margin. And a recent U.S. House vote saw a number of Republicans cross the aisle to support this rule.

With the transition to a new President and a new administration, many have asked about the fate of some of the energy policies that have been enacted in the last few years. It is too early to draw firm conclusions about what the incoming Trump Administration or the next Congress will decide on specific policies or regulations. But we do know that the BLM proposal is sound policy that will reduce waste of an important domestic energy resource.

The Trump transition team has said it wants to create jobs and harness America’s energy reserves. The BLM natural gas waste rule will create new jobs in methane mitigation and ensure we are putting American energy to good use.

No matter what side of the aisle you’re on, this is what smart energy policy looks like and EDF will work hard to implement and defend it.

Dan Grossman

Affordable Housing Can Save Money, Water, and Energy with this Innovative Finance Tool

7 years 5 months ago

By EDF Blogs

By Laura Sanchez, EDF Climate Corps 2016 Fellow

Like many booming cities, Texas’ capital is experiencing overwhelming demand for affordable housing. Austin’s Mayor Steve Adler highlighted the affordable housing crisis shortly after taking office in January 2015, and urged the use of Property Assessed Clean Energy (PACE) to help encourage affordability. PACE enables commercial, industrial, and multifamily property owners to improve the water or energy efficiency of their buildings – without having to worry about steep upfront costs. Investing in these types of upgrades can reduce a property’s operating costs, as well as tenants’ utility bills.

That’s why I spent this past summer with Environmental Defense Fund (EDF), as an EDF Climate Corps Fellow with Texas PACE Authority, the PACE program administrator in the state. In June 2016, Mayor Adler created a committee of housing experts to determine how to leverage PACE for affordable housing. Alongside the committee, I worked to size up the opportunity, benefits, and challenges of using PACE to help pay for upgrades to affordable multifamily-housing properties.

After conversations with officials and program administrators from over 30 public for-profit and non-profit entities, we found there are significant opportunities – in Texas and nationwide – for the affordable multifamily-housing sector to leverage PACE. We are proud to present a new whitepaper that can serve as a guide to unlocking water, energy, and cost savings.

Using PACE for Texans’ affordable housing

The affordable-housing sector desperately needs upgrades: The U.S. Department of Housing and Urban Development (HUD) reports a $26 billion nationwide backlog of deferred maintenance projects in public housing authorities alone.

Affordable Housing Can Save Money, Water, and Energy with this Innovative Finance Tool
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In Texas, one potential solution lies in PACE, a market-based financing program. Local governments and the private sector work together to fund energy and water savings projects, using a property assessment that ties the financing obligation to the property itself.

There is not enough affordable housing in the United States. For every 100 extremely low income households, there are only 29 adequate, affordable, and available rental units. -Urban Institute

Prior to accepting this fellowship opportunity, I hadn’t worked in the affordable housing sector. My years in the finance industry, however, taught me to cash in on a good deal when I see one. It became clear that PACE, as a standalone or complimentary tool, can enhance housing affordability, the living conditions of tenants, and property owners' net operating income.

Plus, there are undeniable environmental rewards from investing in energy and water efficiency retrofits, as well as onsite power generation: PACE projects can significantly cut a building’s energy or water footprint (or both!), which lowers waste and pollution. All of these benefits are realized with no out-of-pocket costs for property owners.

EDF explores these opportunities for affordable multifamily-housing properties in the whitepaper, which does the following:

  1. Introduces PACE as a financing tool for energy and water efficiency retrofits and investments in distributed energy resources, like home solar;
  2. Provides guidance to stakeholders in the affordable multifamily-housing sector for using PACE to help finance rehabilitation projects; and
  3. Identifies potential pilot projects in Central Texas that serve as examples of how PACE financing might be used within the affordable multifamily-housing sector.

Accelerating PACE

Despite the many benefits of PACE financing to property owners and tenants, barriers to its widespread use remain. One critical barrier has been the lack of information and experience with new PACE programs. The affordable multifamily housing sector contains complex layers of funding – from local, state, and federal funds, to private capital – which can make adding new financial structures appear difficult or cumbersome.

In the above depiction of public subsidies, TDHCA is the Texas Department of Housing & Community Affairs; USDA RD is the U.S. Department of Agriculture Rural Development; and PHA is Public Housing Authorities.

To address these concerns, the paper makes several recommendations on how to effectively utilize PACE and the role policymakers can play in this effort. For one, Texas should amend the Texas PACE Act to make government-owned affordable housing buildings – both existing and new — eligible for PACE financing.

Nationally, HUD should revise its methodology for utility allowance formulas so property owners have economic incentives to invest in energy and water efficiency. These are just two ways we can accelerate PACE’s progress.

A cleaner, more affordable future

Beyond the environmental benefits of clean energy and water conservation projects, there is a clear economic value in making PACE investments. It was impressive this summer to see how receptive the community was, from property owners to private lenders and associations. That said, policymakers have a long way to go. Public agencies, at the local and state level, have created regulatory hurdles in the financing structure of affordable housing properties, which discourage property owners from investing in energy and water efficient solutions.

There remains a huge opportunity in Texas and nationwide to activate PACE as a financing tool for energy and water savings projects in affordable housing. Although the EDF whitepaper focuses on the Texas market, other states can use the approach taken here – creating a coalition of public and private entities to explore PACE opportunities – to determine the benefits the program can offer.

Armed with the right tools and information, governments, property owners, and PACE administrators across the country can maximize the potential of PACE, leading to cleaner, more affordable housing for all. We hope this whitepaper will help achieve that future.

Photo source: iStock/a40757

This post originally appeared on our Texas Clean Air Matters blog.

EDF Blogs

These Energy Efficiency Laws Give New York City a Fresh Start on Power Savings

7 years 6 months ago

By Abbey Brown

The New York City Council has an excellent environmental track record, and I’m pleased to say that most recently it has passed a group of bills tackling energy efficiency in buildings, adding to its stellar standing.

Mayor Bill de Blasio this week signed a package of laws developed by the City Council that address energy efficiency in thousands of buildings citywide. Buildings account for nearly three-quarters of the city’s greenhouse gas emissions, which makes buildings crucial to New York City’s goal of reducing emissions 80 percent by 2050. In fact, the mayor’s office estimates that these bills will reduce greenhouse gas emissions by roughly 250,000 metric tons throughout the city, and create an estimated 100 jobs by spurring retrofits in 16,000 buildings. I attended the bill signing on October 31st, and am proud to say that Environmental Defense Fund (EDF) has been working closely with both the mayor’s office and the City Council to get to this point, along with our partners, the New York League of Conservation Voters, Natural Resources Defense Council, and Urban Green Council.

These new laws – which affect 57 percent of New York City’s buildings (a higher percentage than any other U.S. city) – are important because they mandate that buildings track their energy use. Tracking use will inform necessary energy-efficiency upgrades that will have lasting impacts and ultimately improve the city’s environment and New Yorkers’ public health.

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Here’s a quick overview of the bills:

  • Intro 1163-A expands an earlier requirement so that buildings of at least 25,000 square feet will also benchmark their energy use. Benchmarking allows buildings to collect information on energy performance that shows how they use power compared to other buildings in their category.
  • Intro 1160 will mandate sub-meters that will track electricity for businesses in rented spaces larger than 5,000 square feet. Sub-meters give renters data about their energy use so they can manage it.
  • Intro 1165, an amendment to Local Law 88, mandates lighting upgrades by the year 2025 to buildings larger than 25,000 square feet. With technological improvements happening as quickly as they do, required upgrades will ensure building lighting efficiency keeps pace.

Electricity-use information is essential. The more buildings understand their overall energy use, the more they can take steps to make efficiency improvements to save energy.

Where do we go from here?

New York City is making potential energy savings more tangible by increasing the number of buildings required to monitor energy use. But, benchmarking and identifying a building’s energy efficiency needs are only the first step.

Programs like the NYC Retrofit Accelerator step-in and give buildings tools that actually help make necessary energy efficiency upgrades, so they can save on energy and costs.

We’ve made progress already. Between 2010 and 2013 alone, citywide emissions decreased by 8 percent, and building energy use decreased by 6 percent. But there is still more work to be done. By working closely with the New York City Council, the Mayor’s Office of Sustainability, and other city agencies, EDF will help ensure New York builds on this progress. Stay tuned, and you’ll see it happen.

Abbey Brown

Working Smarter, Not Harder: How Companies Are Setting New Energy Goals

7 years 6 months ago

By Liz Delaney

It’s no secret that companies use goals to push their businesses in a positive direction. Whether it’s about creating more value or reducing impacts, goals provide focus, direction, and a sense of urgency. Recently, a wave corporate, climate-related goals, such as renewable energy and emissions-reductions targets, have grabbed the public’s attention. Companies, cities, and other large institutions are stepping up and committing to reduce their environmental impact. But behind the scenes, are these goals actually leading to corporate action? And if so, what kind?

As program director of EDF Climate Corps, every summer I get a glimpse inside the operations of 100 large organizations that are working to manage energy and carbon in progressively responsible ways. This past summer, 125 EDF Climate Corps fellows – talented graduate students armed with training and expert support – worked to advance clean energy projects in large organizations across the U.S. and in China. Their project work reveals that organizations are more strategic, focused, and results-oriented than ever. More than 70 percent of EDF Climate Corps host organizations have energy or emissions-reductions goals, and to meet these targets, our class of 2016 fellows were strategically deployed to help achieve them. In fact, the majority (two-thirds) of our entire cohort of fellows worked on strategic plans and analyses that will help turn these goals into action. So what did we see this summer?

  1. Ambitious goals are driving big impacts at the building level

A great example of goals driving smart and strategic action in buildings is our recent work in New York City. Over the summer, more than 25 fellows worked within companies, city agencies, and even a local utility to design strategic plans to help meet Mayor de Blasio’s ambitious 80 x 50 goal that pledges to reduce city greenhouse gas emissions 80% by 2050. Rather than approach this one boiler room at a time, our fellows worked on ambitious, portfolio-wide equipment replacement and onsite renewable energy plans, with the potential to impact thousands of buildings at once. It’s great to see a municipal goal drive strategy from both the public and the private sector. The mayor’s goals are clearly spurring action, and large-scale strategy is the way to drive rapid improvements that could take much longer through an incremental approach.

  1. Public goals allow leaders to shine, but also inspire others to follow

Many corporations maintain internal sustainability goals, but shy away from publicizing them for a multitude of reasons, ranging from fears of greenwashing to competitive advantage. But we’ve recently observed that this trend is changing, with more and more of our host companies realizing that smart, data-driven analysis can help them set public commitments with confidence. For example, EDF Climate Corps host Amalgamated Bank wanted to incorporate climate change mitigation in its mission, but first needed to dig deeper into its data to create smart goals and a strategy to achieve them. With the help of their fellow, who conducted its first greenhouse gas emissions inventory and an assessment of its carbon footprint, Amalgamated Bank got the information it needed to set ambitious goals, culminating in an announcement in September to become the second largest net-zero energy bank.

Working Smarter, Not Harder: How Companies Are Setting New Energy Goals
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  1. Supply chains are beginning to benefit from corporate goals

While many corporations have articulated impressive goals related to their corporate operations, setting targets in supply chains is an even more ambitious endeavor. Corporate supply chains are the source of significant carbon emissions and are notoriously hard to manage. Longtime EDF Climate Corps host Verizon – a corporation with a history of setting and achieving sustainability goals – knew that by working strategically it could tackle this daunting challenge. This past summer, Verizon asked its EDF Climate Corps fellow to help the company cross the finish line on its 2017 supplier target. By creating a holistic strategy that used a combination of risk-identification and supplier engagement, Verizon is now on track to accomplish its 2017 supplier goal and formally launch its next target to help manage supply chain carbon emissions.

The EDF Climate Corps community is a living laboratory. Through our fellowships and engagement with large energy users, we see companies and cities trying new things, and working smarter, not harder, to achieve ambitious goals. We’ve mirrored this journey as well, moving from a “one boiler room at a time” mentality to broader, more strategic engagement with companies to help drive progress. Through a focus on smart energy strategy, driven by goals, we know that companies can generate a virtuous cycle of positive returns for their organizations.

This post originally appeared on our EDF+Business blog.

Liz Delaney

Reinvigorating Ohio’s Clean Energy Standards Could Save $5B by 2030. Here’s How.

7 years 6 months ago

By Dick Munson

Ohio policymakers are at a crossroads. They can create jobs, grow the economy, cut pollution, and save customers money by rebuilding the state’s renewable and energy efficiency policies, or they can continue to let Ohio fall behind in the clean energy economy.

A little background: In 2014, the Ohio Legislature placed a two-year freeze on the state’s energy efficiency and renewable energy standards as a result of political pressure from Ohio’s largest power company, FirstEnergy, among others. The standards required electric utilities to generate 12.5 percent of electricity sales from renewable sources, as well as reduce energy consumption 22 percent by 2025 through efficiency programs. Since the freeze, Ohio has lost millions of dollars in energy investment and jobs, and lags behind nearly every other state in percentage of renewable energy generated.

Now that the two years are almost up, it’s time for Ohio to decide how to move forward – if at all – on its clean energy standards. Fortunately, according to a new report from Environmental Defense Fund and The Nature Conservancy, there are at least three achievable routes to reinstate the renewable and efficiency standards – each of which would provide substantial economic and health benefits to the state at a value of $3 to $5 billion by 2030.

Reinvigorating Ohio’s Clean Energy Standards Could Save $5B by 2030. Here’s How.
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Billions in benefits

To evaluate the most financially beneficial mix of clean energy resources, the report, Grounds for Optimism: Options for Empowering Ohio’s Energy Market, produced three forecasts of the state’s electricity market. The scenarios include an Accelerated Efficiency case, an Intermediate Pathway that provides a balanced mix of renewables and efficiency, and an Expanded Renewables case. These scenarios are compared against a baseline that models an extended freeze of Ohio’s renewable and energy-efficiency standards.

All three scenarios are based on clear trends and achievable targets within the state’s growing clean energy industry. Furthermore, each would enable Ohio to meet the goals of the Clean Power Plan, the nation’s first-ever limit on carbon pollution from power plants.

The forecasts show the renewable energy and energy efficiency industries in Ohio are expected to:

  • Create between 82,300 and 136,000 new jobs in Ohio, with the wind industry serving as one of the largest contributors.
  • Enhance Ohio’s GDP by $6.7 billion to $10.7 billion by 2030,
  • Provide between $28.8 million and $50.9 million in savings for Ohio electricity customers by 2030, and
  • Provide between $3 and $5 billion in net benefits by 2030.

In comparison, the baseline – maintaining the freeze – would create zero new jobs, grow the state’s economy by zero dollars, and provide zero savings for Ohioans.

Moreover, how we generate electricity significantly impacts public health. Currently, “Ohio’s coal-heavy generating fleet creates billions in public health costs that are borne by citizens,” according to the report. By increasing renewable energy and efficiency, Ohioans would avoid asthma attacks, heart attacks, pulmonary issues, and other illnesses that would otherwise occur under the baseline. And public health benefits grow over time: The value would exceed $1 billion every year from 2030 onward in all three scenarios.

Governor Kasich seeks standards

Ohio Governor John Kasich recently attended The Texas Tribune festival, where he was asked about his stance on the Buckeye State’s clean energy standards. Although he feels the original policies were overly ambitious, he was very clear on his message to the Ohio legislature, stating, “If you try to kill the standards […], I’ll veto the bill and we’ll go to the higher standards. I’m committed to it.”

In other words, Governor Kasich is determined to see Ohio thaw the freeze and begin to rebuild its clean energy prowess.

If the legislature is wondering how to go about doing so, this new report from The Nature Conservancy and Environmental Defense Fund can serve as a roadmap to getting the Buckeye State back on track. It clearly lays out three paths for creating jobs and growing the state’s economy, while lowering electricity bills and healthcare costs for Ohioans in the long run. The analysis offers flexibility and an array of options, all of which are far superior to letting the freeze stand, or replacing the standards with a toothless goal. The clean energy choices are there – take your pick, Ohio.

Download the full report here and the factsheet here.

Dick Munson

Is Mainstream Corporate America Jumping on the Clean Energy Bandwagon?

7 years 7 months ago

By EDF Blogs

By Ellen Shenette, EDF Climate Corps Analyst

It’s no secret that renewable energy is becoming cheaper, and while we’ve seen companies like Google and Microsoft investing in utility-scale renewables, what about mainstream corporate America? Are large corporations jumping on the clean energy bandwagon or are they dragging their feet? As a data analyst at EDF Climate Corps, I turned to the numbers for answers. Fortunately, I didn’t have to look far. An analysis from our recently release report: Scaling Success: Recent Trends in Organizational Energy Management, says it all.

For almost a decade, EDF Climate Corps has been partnering with business to save money and reduce greenhouse gas emissions by improving energy efficiency through our graduate fellowship program.

As I followed the numbers, a new clean energy trend stood out: over the last 5 years, clean and renewable energy projects have grown five-fold, with 1/3 of our partner organizations working on at least one clean energy project in 2015. Companies have been using their EDF Climate Corps fellows to decipher the complex landscape of technologies, policies, procurement strategies, and financing options for renewable energy. As we tally the results for our 2016 fellowship program, we expect the focus on clean energy to continue to grow, and don’t plan on it stopping anytime soon.

Following the money

But why have we observed this recent uptake in clean energy projects? It seems to be “all about the Benjamins.” Our data shows that fellows are increasingly able to build a solid business case for clean energy projects. In just 2 years, the average payback for clean energy projects decreased dramatically from around 4 years to under 2 years and we’ve seen a surge in positive Net Present Value (NPV) clean energy projects. This tell us that clean energy projects are becoming increasingly cost competitive – a mirror image of industry trends.

Is Mainstream Corporate America Jumping on the Clean Energy Bandwagon?
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Which brings us back to our initial question – are large corporations jumping on the clean energy bandwagon? Yes, mainstream corporate America IS adopting clean and renewable energy- and they are doing it cost-effectively. The winds of change are blowing in the right direction (and hopefully through a wind turbine!) and our EDF Climate Corps fellows are proving that investment in renewables makes good business sense. However, there are still challenges to getting clean energy adoption at scale. Many renewable energy projects with large returns also require large upfront capital investments, and although the projects may have a positive NPV, some still fall outside the required payback period for corporations. We’ve seen that lack of funding and competing internal priorities are still major barriers to implementation.

How companies can continue to drive forward

And so, a new question emerges – what should companies be doing to drive clean energy projects internally? First, corporate leadership should set targets for renewable energy procurement and benchmark against their peers. Second, energy managers should pilot clean energy projects to demonstrate their viability. These pilots can serve as proof points for future projects and larger-scale investments. While navigating the complex clean energy alphabet soup (PV, PPAs, RECs, RPS, ITC, etc.) can be tough, especially given the nuances in state level policy and regulations, partnering with a third-party organization (such as a program like EDF Climate Corps, another NGO or a vendor) is a great way to accelerate your clean energy projects. You just may find that making the business case for clean and renewable energy isn’t as hard as you thought.

I invite you to learn more about what 8 years of EDF Climate Corps data tells us about trends in energy management and clean energy by reading our Scaling Success report.

This post originally appeared on our EDF+Business blog

EDF Blogs

Clean Energy: An Emerging Path for Latino Communities

7 years 7 months ago

By EDF Blogs

By: Andy Vargas, EDF Congressional Hispanic Caucus Institute (CHCI) Public Policy Fellow

Hispanic Heritage Month is in full swing! It has also been a welcome way to kick off my placement with Environmental Defense Fund (EDF) as a Congressional Hispanic Caucus Institute (CHCI) Public Policy Fellow. Each year, CHCI marks Hispanic Heritage Month with a Public Policy Conference elevating the issues most important to Latino communities. This year, I had the pleasure of representing both CHCI and EDF, introducing a panel on an emerging and critical topic for Latinos: clean energy.

Clean energy is key to protecting Latino communities from disproportionate impacts of climate change and pollution. At last week’s conference, the National Hispanic Leadership Agenda (NHLA) highlighted that half the U.S. Latino population currently lives in the country’s most polluted cities. NHLA also noted that asthma and chronic obstructive pulmonary disease are more prevalent in inner city Latino communities near carbon-producing power plants.

But clean energy also creates new “green jobs.” In 2014, for example, the solar industry added jobs nearly 20 times faster than the national average. Many of these jobs pay decent salaries and don't require you to have a bachelor's degree – making those economic opportunities accessible to Latinos who might otherwise struggle to finance expensive higher education for four or more years.

With rapid growth of the clean energy economy, and a population growth on the horizon (Latino communities will double by 2050), the need for leadership that includes Latino voices will be key to ensuring clean energy solutions can offer a new path for their communities.

A public good

Congressman Ruben Gallego, a national Hispanic leader and former U.S. Marine, provided the panel an intense example of how dirty energy has impacted not only his life but the lives of his comrades, noting there were more casualties in fuel transport than in combat itself. Rep. Gallego reminded us that Latinos are too often on the front lines – not only as soldiers, but also on the front lines of climate change – and shifting to cleaner energy can protect our military overseas, as well as our communities at home. Therefore, Members of Congress, voters, business leaders, and others within the Latino community are encouraged to use their voices on climate change.

Clean Energy: An Emerging Path for Latino Communities
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Jorge Morales, City Councilor from South Gate, California, shared a story of the shock he felt after learning that a child’s life is more predetermined by their zip-code than by their genetics. If we truly want to combat climate change, Morales urged, leaders must open doors that increase access to clean energy programs that benefit not only wealthy individuals who can afford them, but also those who need them most.

Across the country, Latino leaders are stepping up. Jennifer Allen, National Director of Chispa at League of Conservation Voters, shared how Hispanic communities from Arizona to Virginia to Nevada are engaging in the clean energy conversation by demanding local and state governments provide more clean energy opportunities that are accessible to all communities.

Efficiency opportunities

With the Latino population increasing, it’s about time Hispanic leaders take clean energy and climate change more seriously and become more vocal.

We are also seeing growing Latino participation in the clean energy private sector. Edwin Luevanos, Founder and CEO of Citizen Energy, is increasing access and affordability by helping buildings shift to energy efficiency and clean energy, like solar power and LED lighting. Recognizing that for many, cost can prevent the adoption of clean energy technology, Citizen Energy offers 0% financing that only gets paid back when their customers start saving on their energy bills. EDF is fostering similar on-bill financing programs among rural electric cooperatives in North Carolina.

With the Latino population increasing, it’s about time Hispanic leaders take clean energy and climate change more seriously and become more vocal. Similarly, Latino leaders in their own fields are needed to offer solutions to climate change – not only within the Latino community but across all communities. Getting Latino communities engaged in clean energy projects that are affordable and easily accessible will be the challenge our Latino leaders face.

EDF Blogs

The Clean Power Plan: Driving Down Electricity Bills for Families

7 years 7 months ago

By Martha Roberts

EDF Fellow Will Bittinger co-authored this post

Here’s one fact you may not know about the Clean Power Plan – it can save you money.

The Clean Power Plan puts the first-ever nationwide limits on carbon pollution from power plants. It’s a crucial step in our efforts to combat climate chaos and protect public health. But it can also help American families save money.

EPA’s analysis of the Clean Power Plan concluded that once the rule is fully implemented in 2030, it will lower the average consumer bill by about seven percent.

The Consumers Union, Public Citizen, and the Illinois Citizens Utility Board – all groups that serve and protect electricity customers – have confirmed these benefits. In a compelling amicus, or “friend of the court,” brief, these three leading consumer advocacy groups highlighted the host of empirical evidence showing that the Clean Power Plan can drive electricity costs down and deliver substantial benefits to consumers, especially those in low-income communities.

According to their brief:

Independent analyses confirm [EPA’s] projection: initiatives taken to meet the rule’s requirements could, by 2030, reduce household electric bills by as much as 20 percent across the board. (Ratepayers Brief at page 8).

Where would the savings come from? The Clean Power Plan will spur vibrant investment in energy efficiency — and by saving energy we can cut both carbon pollution and costs.

As the consumer advocacy organizations note:

[The] Clean Power Plan leverages energy-efficiency opportunities to achieve greenhouse-gas emission reductions in a way that directly benefits consumers, low-income households, and other electricity ratepayers. (Ratepayers Brief at page 2).

In particular, low income communities have a robust opportunity to benefit from the Clean Power Plan’s support for energy efficiency.

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One important element of EPA’s plan, the recently proposed Clean Energy Incentive Program:

explicitly focuses on ensuring that the power program’s benefits reach low-income Americans … [t]he American Council for an Energy-Efficient Economy has calculated that this program could represent $1.2 billion worth of investment in projects in low-income communities… Such incentives would help encourage cost-effective energy-efficiency upgrades for multifamily rental housing – where many low-income Americans live. (Ratepayers Brief at page 9 and 10).

Because low-income households pay a disproportionate share of their income on energy, energy efficiency programs funded by this program will have the significant benefit of lowering energy bills for these families.

The consumer advocacy organizations also refute any hyperbolic, wrong-headed claims that the Clean Power Plan will cause increased electricity costs. Claims like these – which have been advanced by major polluters and their allies who are fighting the Clean Power Plan – wrongly assert that energy efficiency and low cost clean energy opportunities will cause economic disaster.

Local community leaders have challenged these misrepresentations. Rev. Dr. Lester A. McCorn, senior pastor at the Pennsylvania Avenue AME Zion Church in Baltimore, called them a “smear campaign” designed to fight lifesaving standards and protect polluter profits.

These kinds of “sky is falling” claims are, sadly, a familiar scheme to prevent climate progress. When we set the schemes aside, we can see that we have a chance to seize enormous potential by implementing the Clean Power Plan and supporting America’s transition to a low-cost clean energy economy.

In the end:

Refusing to shift America’s energy inf
rastructure towards cleaner, more affordable energy would only leave low-income Americans with higher costs over time – for electricity and for preventable adverse health effects. (Ratepayers Brief at pages 14 and 15).

This post originally appeared on our Climate 411 blog

Martha Roberts

Why Clean Energy is Center Stage on International Day of Peace

7 years 7 months ago

By Jim Marston

Each year since 1981, the United Nations (UN) recognizes an International Day of Peace on September 21. The day is intended to strengthen peace both within and among nations.

As an environmental advocate, I can’t help but think about the effects of climate change on the current state of global peace. And while there are a few climate deniers out there, those who have looked at the science are saying climate change poses a serious threat to global security and peace.

Fortunately, the UN agrees – which is why they chose to focus this year’s International Peace Day on Sustainable Development Goals. Unanimously adopted by all 193 UN member states, the Sustainable Development Goals are broken down into 17 focus areas and are part of a broader agenda to fight inequality, injustice, and climate change by 2030.

Goal 7 – “ensure access to affordable, reliable, sustainable, and modern energy for all” – is a hugely important part of fostering global peace. The world needs affordable, reliable electricity to heat, cool, and power our homes, and to encourage economic growth. But we also need this electricity to be clean, modern, and efficient, so it doesn’t pollute our communities and exacerbate climate change.

Here are four ways the U.S. is doing our part to achieve an affordable, reliable, sustainable, and modern energy system for all:

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  • Affordability: In rural, poverty-persistent parts of the country, energy efficiency is the most direct way to save people money and reduce energy use, but it is often overlooked when families face hard choices about where to spend their money. On-bill financing is one solution that’s helping Americans finance energy efficiency upgrades without the burden of upfront costs. Upgrades are paid for over time (via utility bills) from the resulting energy savings of efficiency improvements. The program reduces energy use and saves people money, which is especially important in rural communities where median household incomes are shrinking compared to their urban and suburban counterparts. In North Carolina, non-profits like Environmental Defense Fund (EDF) and electric cooperatives (or “co-ops,” which supply power to 42 million Americans in rural areas) are partnering to expand on-bill financing.
  • Reliability: Electricity touches everything we do. So when the grid goes down, the effects can range anywhere from inconvenient to life-threatening. With the help of smart meters, which now exist in nearly half of U.S. households and deliver detailed energy-use data to utilities, we can begin to identify outages faster and with great precision (meaning shorter outages). Smart meters can also enable energy management tools like demand response – which pays people to reduce energy when the electric grid is stressed – that can help improve reliability and reduce outages. New York recently approved an historic plan by its largest utility to distribute smart meters to millions of homes. This move will help increase efficiency, improve reliability, and lower pollution.
  • Sustainability: An estimated 6% of U.S. energy use is water-related. That’s equivalent to the annual electricity consumption of 40 million Americans. Ensuring a sustainable future means addressing the way we manage our electricity and our water – part of what’s known as the “energy-water nexus.” Based in Austin, Texas, Pecan Street, Inc., the nation’s largest energy research network and an EDF partner, is studying and piloting some of the same strategies that are helping the energy sector get smart. Just like smart energy meters, smart water meters can help residents conserve resources by giving them access to meaningful data about when and how they use water. By saving water, we can save energy, too, which means fewer polluting power plants.
  • Modernity: A key aspect of modern energy is that it should be accessible to all. While the price of solar panels has fallen 80 percent since 2008, many Americans reside in multi-unit buildings, or don’t own a home on which to install solar panels. But the solar game is changing and new models are emerging. Community solar, defined as “a solar-electric system that provides power and/or financial benefit to, or is owned by, multiple community members,” presents a unique opportunity to bring solar access to the masses. Cities like Los Angeles, California and San Antonio, Texas are actively working to expand community solar. And nationally, community solar is predicted to more than double between 2015 and 2016.

Global consensus

These examples reveal the new look of energy in America. Other nations are making clean energy progress, too, though their circumstances vary. For example, in Lesotho, Southern Africa, clean energy sometimes looks like solar panels on homes in rural areas that can’t be reached by vehicles. In Chennai, India, clean energy can be seen in the solar steam cooking system in a home-school for 650 orphans.

Yet, despite regional differences, this International Day of Peace – with Goal 7: Affordable and clean energy at center stage – reminds us that around the world, efforts to nurture a safer, more prosperous future are cut from the same cloth. It’s also a reminder that the world agrees with Secretary-General Ban Ki Moon’s message: “Affordable, clean energy is the golden thread that links economic growth, increased social equity, and a healthy environment.”

This post is part of a series produced by The Huffington Post to mark the occasion of the one-year anniversary of the adoption of the Sustainable Development Goals (SDGs, or, officially, "Transforming Our World: the 2030 Agenda for Sustainable Development"). The SDGs represent an historic agreement — a wide-ranging roadmap to sustainability covering 17 goals and 169 targets — but stakeholders must also be held accountable for their commitments. To see all the posts in the series, visit http://www.huffingtonpost.com/news/sustainable-development-goals.

Jim Marston

Energy Management Then and Now: What You Need to Know About the Latest Trends

7 years 7 months ago

By Liz Delaney

In 2008, EDF launched Climate Corps, an innovative graduate fellowship program committed to jump-starting investment in corporate energy efficiency.

Now, after almost a decade of embedding over 700 fellows inside large organizations across all sectors—public, private and non-profit—we’ve taken a step back to survey the broader landscape.

What did we find? Energy management today looks very different than when we started out. As large organizations have shifted to take on more sophisticated approaches, significant advancements in management strategies have emerged.

And for those of you toiling away on a daily basis in the complicated world of energy management, we’re pleased to offer you a mile-high view of how your efforts fit into a larger picture of progress.

In our new report, Scaling Success: Recent Trends in Organizational Energy Management, we examine the efforts of more than 350 large organizations over eight years. Through careful analysis of over 3,000 energy project recommendations, we have identified five key trends:

  1. Energy efficiency was just the beginning. Companies have become more strategic and sophisticated about energy management over the years. Equipment upgrades and retrofits have paved the way for higher-level energy analyses and plans, integration of clean energy technologies and more.
  1. Organizations are turning one win into many. By scaling up energy efficiency projects to be multi-site and multi-facility, companies have clearly moved past the “pilot” or “one-off” stage and are now deploying efficiency measures at scale.

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  1. Companies face front-loaded costs, but are realizing greater ROIs on energy projects. The days of the low-cost/no-cost energy efficiency improvement may be over. Projects now require substantial upfront capital investments, but these projects deliver more value.
  1. Energy projects now pack more environmental bang for the buck. As technologies have improved and companies have become more strategic about how they direct spending, investments in energy efficiency are providing significantly more greenhouse gas reductions per dollar spent than they did eight years ago.
  1. Strategic energy management is still hard work. Despite progress made over the years, corporations, municipalities and other large institutions still face significant barriers to project implementation.

To distill it down even further: strategic energy management has evolved from a one-off initiative into an organizational imperative. Despite the barriers, companies are scaling up their efficiency efforts, integrating clean energy more regularly and using data to drive their smart energy strategies.

If you’ve been a part of this evolution (or revolution?), congratulations! If you haven’t, now is the time to take advantage of all these lessons learned and get on board.

Either way, we invite you to learn more about our key takeaways, read our full report and keep moving forward on accelerating your clean energy projects.

This post originally appeared on our EDF+Business blog.

Liz Delaney

How One Utility Is Changing the Clean Energy Business in Brooklyn and Queens

7 years 7 months ago

By EDF Blogs

By Gabriela B. Zayas del Rio, Tom Graff Diversity Fellow, Clean Energy

The system for supplying electricity in the U.S. was premised on the assumption that utilities would make evermore electricity to sell to customers. But, the global need to reduce carbon emissions from traditional power generation, along with the emergence of distributed energy resources – small, grid-connected devices, like rooftop solar and energy storage – have disrupted demand for electricity produced from traditional power plants.

In May, the New York State Public Service Commission introduced a new way to pay the state’s utilities, one where utilities are compensated, not just based on how much electricity they produce, but also for producing environmental benefits aligned with the public good. This approach aligns with Reforming the Energy Vision (REV) – New York’s official plan to make its electric grid cleaner, more efficient, and affordable – and comes at a time of unparalleled population growth in New York.

Map of the Brooklyn and Queens boroughs with the Neighborhood Program area highlighted in blue.

Keeping pace with the changing grid and REV, New York utility Consolidated Edison (ConEd) is delaying investments in new substations and transmissions lines. Instead, the utility is opting for innovative alternatives to meet increasing energy demands in dense urban areas, like Brooklyn and Queens, which led New York’s population growth over the last year. ConEd’s Brooklyn-Queens Demand Management Program, recently rebranded as the “Neighborhood Program,” uses energy efficiency and demand response programs, which pay people to reduce energy use during periods of peak demand. The Neighborhood Program will generate 52 megawatts of electricity, of which 41 megawatts will come from participants’ efficiency and conservation efforts and distributed power sources.

A local model with scalable potential

In this year’s first quarterly report, ConEd announced it had successfully completed and surpassed its goal of generating 9 megawatts (22 percent) of electricity at the peak hour from customer-side energy efficiency measures, before its May 31 target completion date. The company contracted and installed energy efficiency systems by expanding two major programs, the Small Business Direct Install and the Multi-Family Energy Efficiency, as well as conducting virtual building audits free of charge. Both programs are part of the Energy Efficiency Portfolio Standard (EEPS), a state program to reduce electricity use by 15 percent of forecast levels by 2015.

Through Small Business Direct Install, more than 4,300 small businesses have installed, or agreed to install, efficiency measures. As a result, these small businesses have collectively reduced their electricity demand by 6.51 megawatts at peak hours (over 70 percent of the already achieved 9 megawatts) and cut their energy bills by $3,200 a year. More than 1,000 buildings have participated in, or agreed to participate in, the Multi-Family Energy Efficiency program, which is expected to reduce annual energy consumption by more than 15 million kilowatt hours – enough to power over 1,500 homes for a whole year.

How One Utility Is Changing the Clean Energy Business in Brooklyn and Queens
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It’s a win-win situation: reduced energy demand and minimized environmental impact without harming businesses. What’s more, ConEd has achieved about 22 percent of its customer-side solutions, demonstrating that energy efficiency upgrades are worth investing in, especially when they save money for utilities and people. As it continues to advance customer-side solutions in an area with a population of over 300,000 New Yorkers and more than 29,000 public housing apartments, the Neighborhood Program will have to work with public entities and communities to help achieve sustainable reductions in energy demand and costs.

Community partnerships

With a goal of reducing greenhouse gas emissions 40 percent from 1990 levels by 2030, one tenet of REV is giving low-income customers the opportunity to invest in clean energy and reduce energy costs. ConEd has already partnered with the New York City Housing Authority to identify energy saving opportunities. For example, the Multi-Family Energy Efficiency program has helped with the installation of high efficiency fluorescent lighting and more efficient air conditioning units in public housing facilities.

…there is interest within communities impacted by this program to collaborate with the utility to reduce energy use and support local jobs to make the program successful in the long run

But, ConEd’s community engagement can benefit from even more attention, especially because residential properties (one to four-unit family buildings) make up 57 percent of customer accounts and nearly 30 percent of total peak demand in the Neighborhood Program area. As a recent meeting in August between ConEd and community leaders revealed, there is interest within communities impacted by this program to collaborate with the utility to reduce energy use and support local jobs to make the program successful in the long run, and last beyond 2026, the year when ConEd is set to build a new substation plant.

Looking ahead

We have the opportunity to reduce energy use, save money, and proactively break with the marginalization and isolation of low-income customers in the energy sector. This might be the perfect time to start over, giving all New Yorkers an equal opportunity to be part of the clean energy revolution. As Mark Winston Griffith, executive director at Brooklyn Movement Center, a leading organization representing communities impacted by the program, expressed, these communities are championing a third win: economic development and job creation. ConEd has an opportunity to create a clean energy economy for all. Environmental Defense Fund will continue to advocate for more community engagement as we fully materialize the future of REV.

EDF Blogs

3 Reasons We Can Feel Good about Where Energy Efficiency is Headed

7 years 8 months ago

By Ellen Bell

“I am the Lorax. I speak for the trees. I speak for the trees for the trees have no tongues.” – Dr. Seuss, The Lorax.

As a child, that line from the classic Dr. Seuss book struck a chord in me, far beyond the giggle it caused when I thought of trees having tongues. The quote clearly imprinted the idea that – when a situation needs attention – those who can speak, should. For me, one of those situations is sharing the good news that energy-efficient buildings are cleaner and smarter than ever.

Buildings can be big polluters: 70 percent of the world population will live in cities by 2050, adding 40 percent to the current world building stock. As energy-efficient structures develop in growing countries, the U.S. can help stay competitive by retrofitting its existing buildings. Plus, improving building efficiency can contribute to reductions in global CO2 emissions from buildings by 83 percent below business-as-usual by 2050, reports the World Resources Institute.

I believe we are well on our way to creating a cleaner, smarter energy future. My optimism is fueled by efficiency trends in three important arenas: people, places, and partnerships.

People

People are demonstrating they understand just how important efficiency is in their daily lives. According to a recent study, homeowners actually value ENERGY STAR rated appliances (which have been given an efficiency stamp of approval by the Department of Energy) over other, more aesthetic luxuries, like a pool or a state-of-the-art sound system. The greater value being placed on smart energy options has contributed to the use of less electricity in the U.S. and less climate-harming pollution.

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And adults aren’t the only ones getting in on the action. Girl Scouts and their families participated in a recent youth-energy program that proved educating girls on the value of energy savings not only influenced their behavior in a positive manner, but also led to shared activities that drove energy conservation measures at the household level as well. In other words, educating kids helps their families save electricity.

Places

And by places, I mean the “trees” I get to speak for: buildings. A number of recently released studies indicate that commercial buildings are using less energy. Increased interest and investment in energy efficiency – through technologies like LED lighting; heating and air conditioning upgrades; and Building Automation Systems (BAS) – is driven by passionate building managers, who are promoting the twin concepts of financial and social value.

Where once only larger properties could afford to invest in efficiency, the small and medium-size commercial building energy efficiency market is now poised to grow over $13 billion in the next 10 years. Smaller buildings typically have less staff and access to funding; but now, due to emphasis on energy management and its ability to improve bottom lines, smaller buildings are also beginning to explore simple energy efficiency upgrades and more complex retrofitting opportunities.

Partnerships

States across the country, including Illinois, New York, and California, are working on legislation that values clean energy and aims to make communities more energy efficient. Despite the variability in each state’s goals, it’s promising that energy efficiency standards can lead political, environmental, business, and consumer advocates to work together constructively.

Remember, many voices are “speaking for the trees” or, more accurately, speaking to the imperative that we leave our world better – and more efficient – than we found it.

A key example of policy already generating financial and efficiency wins is Illinois’ 2011 Energy Infrastructure Modernization Act. This legislation, which mandated the modernization of Illinois’ electric grid, led to multiple collaborations between environmental groups, consumer advocates, and utilities. So far, it has produced groundbreaking metrics to measure the clean air benefits of smart-grid investments, as well as energy savings for commercial real estate and improved grid resiliency in the state. This work in Illinois offers the opportunity for replication across the country.

We are on track to create a cleaner, smarter energy grid that will help us reduce harmful greenhouse gas pollution. By harnessing the enthusiasm of everyday energy users, taking advantage of the efficiency opportunities in the built environment, and building on legislative advancements already underway, we can leave the next generation with a proud legacy of innovation and leadership. Remember, many voices are “speaking for the trees” or, more accurately, speaking to the imperative that we leave our world better – and more efficient – than we found it.

Ellen Bell

In Win for Environment, Court Recognizes Social Cost of Carbon

7 years 8 months ago

By Susanne Brooks

Co-authored with Martha Roberts

If someone was tallying up all the benefits of energy efficiency programs, you’d want them to include reducing climate pollution, right? That’s just common sense.

Thankfully, that’s what our government does when it designs energy efficiency programs—as well as other policies that impact greenhouse gas emissions. And just this month, this approach got an important seal of approval: For the first time, a federal court upheld using the social cost of carbon to inform vital protections against the harmful impacts of climate change.

So what is the social cost of carbon and why does it matter? It’s a crucial part of the development of climate safeguards and essential to our understanding of the full costs of climate pollution. We know that climate change is a clear and present danger now and for future generations—one that will result in enormous costs to our economy, human health and the environment. And yet, these “social” costs are not accounted for in our markets, and therefore in decision making. It is a classic Economics 101 market failure. Every ton of carbon dioxide pollution that is emitted when we burn fossil fuels to light our homes or drive our cars has a cost associated with it, a hidden one that is additional to what we pay on our utility bills or at the gas pump. These costs affect us all – and future generations – and are a result of the negative impacts of climate change. If we don’t recognize these hidden costs—we aren’t properly protecting ourselves against the dangers of climate pollution.

The social cost of carbon (or SCC) is an estimate of the total economic harm associated with emitting one additional ton of carbon dioxide pollution into the atmosphere. To reach the current estimate, several federal agencies came together to determine the range and central price point – roughly $40 per ton – through a transparent and rigorous interagency process that was based on the latest peer-reviewed science and economics available, and which allowed for repeated public comments.

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It’s critical that we protect against the damages and costs caused by climate pollution. So it’s a no-brainer that when considering the costs and benefits of climate safeguards, we must take into account all benefits and costs – and that means including the social cost of carbon.

In their court opinion, the Federal Court of Appeals for the Seventh Circuit agreed wholeheartedly. Harvard Law Professor Cass Sunstein noted that their decision “upholds a foundation” of “countless” climate protections. In particular, their opinion made two important findings:

  • First, the court affirmed that the DOE was correct to include a value for the social cost of carbon in its analysis. The judges concluded that “[w]e have no doubt” that Congress intended for DOE to have authority to consider the social cost of carbon. Importantly, this conclusion reinforces the appropriateness of including the SCC in future carbon-related rule-makings.
  • Second, the court upheld key choices about how the SCC estimate was calculated. The court agreed that DOE properly considered all impacts of climate change, even those years from now, or outside our borders. These choices, the court concluded, were reasonable and appropriate given the nature of the climate crisis we face.

DOE itself acknowledged “limitations in the SCC estimates.” We couldn’t agree more. As new and better information about the impacts of climate change becomes available and as our ability to translate this science into economic impacts improves, regulators must update the current social cost of carbon estimate. There is still much we do not know about the full magnitude of climate impacts and much that cannot be quantified (as is true of all economic impact analysis) – which means that SCC estimates are likely far lower than the true impact of climate change. But as the Seventh Circuit recognized, their inclusion is a vital step in the right direction for sensible policy-making.

This decision already has positive implications more broadly—in particular, for the Clean Power Plan, our nation’s historic program to reduce carbon pollution from power plants. Just last week, EPA submitted a letter in the Clean Power Plan litigation noting that the Seventh Circuit’s decision further demonstrates the error of challenges to the treatment of costs and benefits in the Clean Power Plan rulemaking. It’s just another affirmation of the rock-solid legal and technical foundation for the Clean Power Plan.

This post originally appeared on our Market Forces blog.

Susanne Brooks
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