Restoration panel adds scientific oversight to plan for spending spill fines
By Annie Snider, Energy & Environment. Aug. 22, 2013.
"The federal-state panel tasked with overseeing the billions of dollars expected to flow to the Gulf Coast from civil fines related to the 2010 Deepwater Horizon oil spill yesterday released a final plan for how it will spend the money on restoring the region's ecosystems and economies…" (read more).

Gulf oil spill trial's 2nd phase to last 16 days, judge says
By The Associated Press. Aug. 22, 2013.
"A federal judge says he expects the second phase of a trial over BP's 2010 oil spill in the Gulf of Mexico to last 16 days…" (read more).

Analyst: Wetlands plan doesn’t have enough money
By Jean-Paul Arguello, The Daily Comet (Houma, La.). Aug. 22, 2013.
"The 50-year master plan the Legislature approved last year to restore wetlands has a $50 billion budget, but that isn’t enough according to a financial analyst…" (read more).

BP works toward culture of safety after 2010 oil spill
Opinion by C.T. Carley, MSU professor emeritus. Hattiesburg American. Aug. 21, 2013.
"After an accident-marred decade, BP is no longer “beyond petroleum.” It is now a smaller and vastly better managed company than the one Mississippian Bob Dudley took over when he became BP’s chief executive officer in the aftermath of the disastrous Deepwater Horizon oil spill three years ago…" (read more).

Don Briggs: Coastal lawsuit a money grab, impure and simple
Opinion by Don Briggs, Louisiana Oil and Gas. The Advertiser (Lafayette, La.). Aug. 22, 2013.
"The battle between public opinion and truth is under way. Dozens of editorials, newspaper articles and reports have now been written regarding the South Louisiana Flood Protection Authority East’s accusation that the oil and gas industry has caused massive erosion and land loss for the coast of Louisiana…" (read more).

BP argues it's being bilked in spill claims
By Zack Colman, The Hill. Aug. 23, 2013.
"BP has launched a public relations offensive to argue it is being bilked for fraudulent damages related to the 2010 Gulf of Mexico oil spill…" (read more).

Levee board, Jindal administration remain at odds over lawsuit after hints of reconciliation
By Bob Marshall, The Lens. Aug. 22, 2013.
"So much for olive branches, or for the Jindal administration calling the oil and gas industry to to the table to discuss its role in damaging coastal wetlands…" (read more).

BP Oil Spill Claims Deadline Likely to Be Extended
By Andrew Callus, Reuters. Aug. 23, 2013.
"The April 2014 deadline for compensation claims against BP over its U.S. oil spill is almost certain to be extended, say both side of the legal settlement that governs payouts, possibly into 2015…" (read more).

This is the first in a series of posts about wildlife tourism and the Gulf Coast economy.

By Will Lindsey and Rachel Schott, Environmental Defense Fund

A new economic report by Datu Research LLC studied the important contribution that wildlife tourism provides to the economic vitality of 53 coastal counties and parishes across the Gulf Coast states. Wildlife tourism, which includes wildlife watching, recreational fishing and hunting, generates $19 billion per year in revenue for the Gulf Coast. Renowned for its unique culture and outdoor opportunities, the Gulf Coast environment provides world-class recreational activities for millions of tourists every year.

According to the report, “Wildlife Tourism and the Gulf Coast Economy,” more than 20 million people participate in these activities across the five Gulf Coast states every year. The study found that after taking into account businesses and economic sectors that rely on wildlife tourists, the industry produces more than $19 billion per year in revenue. This income is generated by a variety of industries, including guide and outfitter business as well as the lodging and restaurant establishments that provide services to wildlife tourists traveling to the area.

The study demonstrates that a healthy Gulf Coast is not only an important ecological resource for the region but is also a vital economic resource, providing more than $5.3 billion in tax revenues annually and numerous employment opportunities throughout the region. From sunbathing on the beaches of Alabama and Florida to fishing and hunting in Louisiana and Texas, tourists find enjoyment in the natural beauty of the Gulf Coast.

Yet this critically important wildlife recreation sector will continued to be threatened unless policy makers take bold steps to protect our eroding and degraded coastlines. “It is important that we take care of our most valuable natural assets,” said Mark Romig, President of the New Orleans Tourism Marketing Corporation, at a press conference in New Orleans for the release of the report. “We need coastal restoration to protect our economic base… It’s right for the environment, right for business, right for people, and right for jobs.”

Knowing the economic impact of wildlife tourism on the Gulf Coast region makes coastal restoration even more essential and timely. Many people and businesses rely on the resources provided by the Mississippi River Delta and Gulf Coast, and the economic viability of the area can be secured by ensuring the resiliency of this diverse, yet fragile, region for decades to come.

Investing in coastal restoration, as through the RESTORE Act and other monies stemming from the Deepwater Horizon oil disaster, will help the Gulf Coast ecosystem as well as the tourism industry which depends on a healthy Gulf.

By Elena Craft, PhD

Source: online.liebertpub.com

Do you have ideas to help federal decision makers ensure that environmental justice issues are adequately represented in new rules?

The Environmental Protection Agency (EPA) recently developed a technical guidance document to equip its staff with tools and information to include environmental justice (EJ) issues in the agency’s rulemaking process. Completed in August 2012, the draft technical guidance is now open for public comment until Sept 6, 2013. Time is running out to have your voice heard!

What is Environmental Justice?

EPA defines Environmental Justice as the fair treatment and meaningful involvement of all people regardless of race, color, national origin or income with respect to the development, implementation and enforcement of environmental laws, regulations and policies. EPA launched its EJ movement in the early 1980s to provide an open forum for citizens and communities particularly impacted by environmental and pollution hazards. For instance, communities disproportionately impacted by pollution around the Houston Ship Channel or near the Port of Houston would be considered EJ areas.

What is the expected result of these efforts?

The technical guidance document will serve as a tool to incorporate the principles of EJ in new EPA rulemakings. This is a significant step, because in the past EPA’s rulemaking process often overlooked underrepresented communities. The agency’s goal is to include EJ issues in its rulemaking in a comprehensive, proactive and consistent manner—and it’s making concrete progress.

Recently, EPA has seen an uptick in EJ involvement for proposed rules. On average, more than twenty EJ studies were conducted per year from 2010-2012, versus an average of less than two per year from 1995-2009.

I serve on a science advisory board technical review committee that is evaluating EPA’s draft technical document, as well as any public comments. Dr. Keith Moo-Young of Washington State University Tri-Cities chaired the first meeting of the review committee earlier this summer. The meeting showed us that that one of the most difficult challenges will be engaging with the EJ community in the rulemaking process in a meaningful way. EJ communities often don’t have the resources or technical capacity to participate in the comment process in as robust a way as other stakeholders or established environmental groups.

The technical guidance document is just one element of EJ Plan 2014 that EPA released under former Administrator Lisa Jackson’s leadership. To discover more about the progress of the 2014 EJ Plan, check out the EJ Plan 2014 progress report.

For more information, or to submit comments on the draft technical guidance itself, click here.

Editorial: BP oil spill dangers persisting
By Editorial Page staff, Tampa Bay Times. Aug. 21, 2013.
"A new study by the University of South Florida underscores the need to continue monitoring the impact of the 2010 BP oil spill. Researchers testing the toxicity of the Gulf of Mexico found that a portion of the spilled oil could have moved southeastward toward the Tampa Bay area, potentially affecting marine life in ways that might not be known for years. This is the latest reminder of the importance of tracking the spill's long-term impact…" (read more).

Congressmen spar over BP money
By Jordan Blum, The Advocate (Baton Rouge). Aug. 21, 2013.
"WASHINGTON — U.S. Reps. Bill Cassidy, R-Baton Rouge, and Steve Scalise, R-Jefferson, sent a letter Wednesday criticizing the Senate Appropriations Committee for proposing to take $10.2 million out of the Gulf Coast recovery pool from the BP oil disaster…" (read more).

The Gulf is Still Struggling, But BP’s Done Paying
By John Light, Moyers & Company. Aug. 21, 2013.
"Three and a half years after an explosion on the Deepwater Horizon drilling rig dumped 205 million gallons of crude oil into the ocean, leaving 11 workers dead and damaging hundreds of miles of shoreline, the Gulf Coast is still recovering. And BP, the oil company behind the spill, is no longer willing to foot the bill for the cleanup or to compensate those whose lives were affected…" (read more).

House Republicans raise funding questions on implementation of Restore Act
By Bruce Alpert, NOLA.com | Times-Picayune (New Orleans). Aug. 21, 2013.
"WASHINGTON – Two Louisiana congressmen Wednesday urged the Senate Appropriations Committee to reconsider a spending bill that allocates $7.4 million in Restore Act funding to help the Treasury Department oversee distribution of the law's funds to the five Gulf states…" (read more).

Fireworks continue over lawsuit against oil and gas industry
By Amy Wold, The Advocate (Baton Rouge). Aug. 22, 2013.
"DULAC — In the latest thrust in a multipronged defense of the oil and gas industry by Gov. Bobby Jindal’s administration, the state Coastal Protection and Restoration Authority voted Wednesday to oppose the audacious lawsuit that Southeast Flood Protection Authority – East filed last month against about 100 oil and gas companies for their role in wetland destruction…" (read more).

Louisiana Coastal Protection and Restoration Authority asks levee board to drop lawsuit
By The Associated Press. Aug. 21, 2013.
"DULAC, Louisiana — The state's coastal restoration authority voted Wednesday to ask a New Orleans-area flood control board to drop its lawsuit seeking damages from nearly 100 oil and gas companies over coastal erosion allegedly caused by dredging and digging for canals and pipelines…" (read more).

If industry does not pay, we all will
Opinion by Jonathan Henderson, Gulf Restoration Network. The Daily Comet. Aug. 21, 2013.
"Gov. Jindal has a chance to be a great governor for our coast. However, when it comes to paying for restoration, he wants to protect Big Oil from paying its fair share…" (read more).

State coastal authority votes to demand that East Bank levee authority drop its oil, gas, pipeline lawsuit
By Mark Schleifstein, NOLA.com | The Times-Picayune (New Orleans). Aug. 21, 2013.
"The Louisiana Coastal Protection and Restoration Authority on Wednesday voted to ask the East Bank levee authority to drop its lawsuit against 97 oil, gas and pipeline companies that is aimed at getting the energy firms to repair damage done to wetlands and land, or to pay for unrepairable damages, with the money to be used to improve levees…" (read more).

Grand Isle oyster hatchery embarks on new chapter
By Rob Masson, FOX 8 News (New Orleans). Aug. 21, 2013.
"Grand Isle, La. – Oyster production in Louisiana continues to sag since the BP oil spill, but there's a new effort underway in Grand Isle that could revolutionize an industry that may be ripe for change…" (read more).

Lawsuit Accusations Are Just That
By Don Briggs, The Louisiana Record. Aug. 21, 2013.
"The battle between public opinion and truth is under way. Dozens of editorials, newspaper articles and reports have now been written regarding the South Louisiana Flood Protection Authority East’s (SLFPAE) accusation that the oil and gas industry has caused massive erosion and land loss for the coast of Louisiana…" (read more).

Polls show Louisianians disappointed with Jindal, blame Obama for post-Katrina response
By Lauren McGaughy, NOLA.com | The Times Picayune (New Orleans). Aug. 21, 2013.
"A little more than one-quarter of Louisianians approve of Gov. Bobby Jindal's job performance, a new low, according to numbers released by Public Policy Polling on Wednesday. A related poll showed Louisianians aren't sure whether President Barack Obama or George W. Bush was responsible for the federal government's "poor" response when levees broke after Hurricane Katrina…" (read more).

Sinkhole renews activity, swallows more trees (Video)
By David Mitchell, The Advocate (Baton Rouge). Aug. 22, 2013.
"The Assumption Parish sinkhole swallowed a sizeable clump of tall cypress in less than a minute Wednesday evening, pulling them down in a frothy swirl that roiled the usually placid surface of the year-old, 24-acre opening in the earth near Bayou Corne…" (read more).

Hurricane Season Enters Prime Time
By Daniel Phillips, KATC-TV (Lafayette, La.). Aug. 21, 2013.
"When it has come to the tropics this season is has been so far, so good. With only five named storms so far, and none of them being hurricanes it has certainly been quieter then some early season forecasts predicted…" (read more).

By Kate Zerrenner

This commentary originally appeared on EDF's Energy Exchange blog.

Source: feww.wordpress.com

Over the past few weeks, I’ve written a number of posts to help shed light on the fundamental connection between energy and water. Because many of our energy sources gulp down huge volumes of water, it’s imperative that we break down the long-standing division between energy and water planning — especially in drought-prone states like Texas. I’d like to take a step back and look at how Texas’ neighbors are addressing energy and water co-management. While Texas may be an extreme example, looking toward its immediate neighbors could provide ideas and best practices to improve the state’s situation.

A number of western states are facing many of the same challenges as Texas. Electricity production is a major drain on the region’s water supply. A study co-authored by Western Resource Advocates and EDF showed that thermoelectric power plants, such as coal, natural gas and nuclear, in Arizona, Colorado, New Mexico, Nevada and Utah consumed an estimated 292 million gallons of water each day in 2005 — roughly equal to the amount of water consumed by Denver, Phoenix and Albuquerque combined (and we’re talking water consumption, not just withdrawals). Like Texas, the western states face a future of prolonged drought. Scientific models predict climate change will increase drought throughout the Southwest, placing greater stress on the region’s delicate water supply.

Additionally, electricity production, numerous thirsty cities and widespread agricultural activity all strain the water system, too. Because so many flock to western states for fishing, kayaking, rafting and other recreational water activities, setting the region’s water system on a sustainable path is a critical economic issue. The exceptional challenges facing western states have already prompted some states to consider the energy-water nexus when planning to meet future water and electricity needs.

Arizona

Palo Verde Nuclear Center. Source: SouthwestClimateChange.org

Arizona is at the forefront of innovative co-management policies that address the energy-water nexus. The Arizona Corporation Commission (ACC), the state agency charged with regulating electricity, has considered water in its electric resource planning for over ten years — and as we have acknowledged before – water use is no small consideration. The agency has gone so far as to deny permits for proposed natural gas power plants partially due to their impact on groundwater supplies. The ACC has also ordered Arizona Public Service (APS), the state’s largest and longest-serving electric company, to consider building new solar farms, specifically noting solar energy’s low-water needs. To APS’ credit, the company has reported water consumption for its energy portfolio since 2009, although water has been a factor in energy planning for far longer than that. Since the 1980s, the Palo Verde nuclear plant has used treated wastewater from the city of Phoenix rather than fresh water, successfully offsetting 20 billion gallons of fresh water consumption each year.

One of Arizona’s largest utilities, the Salt River Project (SRP), provides both water and electricity services to the Phoenix metropolitan area. Oddly enough, SRP considers water in its electric planning, but does not consider electricity in its water planning. In its electric planning, SRP estimates the monetary and social costs of new water supplies needed for power plants, but doesn’t consider the explicit economic value of the water resource itself. Thus, despite SRP’s admirable work on the energy-water nexus, it’s not looking at the full picture.

While the electric side of the equation is making strides to bridge energy and water planning, the water side is farther behind. An illustrative example is the Central Arizona Project, a 336-mile aqueduct that delivers 500 billion gallons of water per year to Tucson and Phoenix. In addition to being the largest and most expensive aqueduct system ever constructed in the United States, it is also the leading electricity user in Arizona. Each year, the aqueduct uses 2.8 million megawatt-hours of energy (about a quarter of the energy produced by a coal-fired power plant) to move water across the desert and up mountains.

Some areas of Arizona are working to reduce water’s enormous energy footprint. For instance, the City of Tucson has a robust water recycling program. By using recycled water rather than drinking water for irrigation, the city saves enough water to provide for over 60,000 families each year, reducing the city’s reliance on more energy-intensive freshwater supplies.

Colorado

Colorado is another state working to unite energy and water planning. The state’s renewable portfolio standard, passed by voters in 2004, highlights renewable energy’s smaller water footprint. The state also encourages the Colorado Public Utilities Commission (PUC) to consider water resources in its electric planning and to include water usage when evaluating permits for new power plants. For the past three years, the state has required utilities to report water withdrawal and consumption information for all of their power plants.

Notably, it seems Colorado policymakers have realized the energy-water nexus is a two-way street. In addition to the state’s electric sector considering water use, the state’s water planners intend to include a segment on the energy-water nexus in their upcoming state water plan. Some Colorado cities have even stepped up to address the challenge.

Fort Collins quantified its greenhouse gas (GHG) emissions as part of its Climate Action Plan and, in the process, discovered that 26% of the city’s GHGs came from its water and wastewater facilities. Within two years, city officials were able to reduce electricity use for water and wastewater by over 7%. Having a comprehensive climate action plan that acknowledges the connection between energy and water enabled city planners to identify novel energy savings and tackle the energy-water interconnection head on.

While all of the western states are threatened by the effects of climate change and the energy-water nexus, some states are doing more to prepare than others. Western states should look to regional leaders, like Colorado and Arizona, as they develop policies to address this imminent challenge. Texas can learn from what other states in the West are doing. Our water and electricity planners should be looking at each other’s sectors as a matter of course and adopting innovative solutions that reduce energy’s water needs and water’s energy needs for a sustainable future—solutions I plan to investigate in my next post.

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

By Kate Zerrenner

Source: feww.wordpress.com

Over the past few weeks, I’ve written a number of posts to help shed light on the fundamental connection between energy and water. Because many of our energy sources gulp down huge volumes of water, it’s imperative that we break down the long-standing division between energy and water planning — especially in drought-prone states like Texas. I’d like to take a step back and look at how Texas’ neighbors are addressing energy and water co-management. While Texas may be an extreme example, looking toward its immediate neighbors could provide ideas and best practices to improve the state’s situation.

A number of western states are facing many of the same challenges as Texas. Electricity production is a major drain on the region’s water supply. A study co-authored by Western Resource Advocates and EDF showed that thermoelectric power plants, such as coal, natural gas and nuclear, in Arizona, Colorado, New Mexico, Nevada and Utah consumed an estimated 292 million gallons of water each day in 2005 — roughly equal to the amount of water consumed by Denver, Phoenix and Albuquerque combined (and we’re talking water consumption, not just withdrawals). Like Texas, the western states face a future of prolonged drought. Scientific models predict climate change will increase drought throughout the Southwest, placing greater stress on the region’s delicate water supply.

Additionally, electricity production, numerous thirsty cities and widespread agricultural activity all strain the water system, too. Because so many flock to western states for fishing, kayaking, rafting and other recreational water activities, setting the region’s water system on a sustainable path is a critical economic issue. The exceptional challenges facing western states have already prompted some states to consider the energy-water nexus when planning to meet future water and electricity needs.

Arizona

Palo Verde Nuclear Center. Source: SouthwestClimateChange.org

Arizona is at the forefront of innovative co-management policies that address the energy-water nexus. The Arizona Corporation Commission (ACC), the state agency charged with regulating electricity, has considered water in its electric resource planning for over ten years — and as we have acknowledged before – water use is no small consideration. The agency has gone so far as to deny permits for proposed natural gas power plants partially due to their impact on groundwater supplies. The ACC has also ordered Arizona Public Service (APS), the state’s largest and longest-serving electric company, to consider building new solar farms, specifically noting solar energy’s low-water needs. To APS’ credit, the company has reported water consumption for its energy portfolio since 2009, although water has been a factor in energy planning for far longer than that. Since the 1980s, the Palo Verde nuclear plant has used treated wastewater from the city of Phoenix rather than fresh water, successfully offsetting 20 billion gallons of fresh water consumption each year.

One of Arizona’s largest utilities, the Salt River Project (SRP), provides both water and electricity services to the Phoenix metropolitan area. Oddly enough, SRP considers water in its electric planning, but does not consider electricity in its water planning. In its electric planning, SRP estimates the monetary and social costs of new water supplies needed for power plants, but doesn’t consider the explicit economic value of the water resource itself. Thus, despite SRP’s admirable work on the energy-water nexus, it’s not looking at the full picture.

While the electric side of the equation is making strides to bridge energy and water planning, the water side is farther behind. An illustrative example is the Central Arizona Project, a 336-mile aqueduct that delivers 500 billion gallons of water per year to Tucson and Phoenix. In addition to being the largest and most expensive aqueduct system ever constructed in the United States, it is also the leading electricity user in Arizona. Each year, the aqueduct uses 2.8 million megawatt-hours of energy (about a quarter of the energy produced by a coal-fired power plant) to move water across the desert and up mountains.

Some areas of Arizona are working to reduce water’s enormous energy footprint. For instance, the City of Tucson has a robust water recycling program. By using recycled water rather than drinking water for irrigation, the city saves enough water to provide for over 60,000 families each year, reducing the city’s reliance on more energy-intensive freshwater supplies.

Colorado

Colorado is another state working to unite energy and water planning. The state’s renewable portfolio standard, passed by voters in 2004, highlights renewable energy’s smaller water footprint. The state also encourages the Colorado Public Utilities Commission (PUC) to consider water resources in its electric planning and to include water usage when evaluating permits for new power plants. For the past three years, the state has required utilities to report water withdrawal and consumption information for all of their power plants.

Notably, it seems Colorado policymakers have realized the energy-water nexus is a two-way street. In addition to the state’s electric sector considering water use, the state’s water planners intend to include a segment on the energy-water nexus in their upcoming state water plan. Some Colorado cities have even stepped up to address the challenge.

Fort Collins quantified its greenhouse gas (GHG) emissions as part of its Climate Action Plan and, in the process, discovered that 26% of the city’s GHGs came from its water and wastewater facilities. Within two years, city officials were able to reduce electricity use for water and wastewater by over 7%. Having a comprehensive climate action plan that acknowledges the connection between energy and water enabled city planners to identify novel energy savings and tackle the energy-water interconnection head on.

While all of the western states are threatened by the effects of climate change and the energy-water nexus, some states are doing more to prepare than others. Western states should look to regional leaders, like Colorado and Arizona, as they develop policies to address this imminent challenge. Texas can learn from what other states in the West are doing. Our water and electricity planners should be looking at each other’s sectors as a matter of course and adopting innovative solutions that reduce energy’s water needs and water’s energy needs for a sustainable future—solutions I plan to investigate in my next post.

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

August 21, 2013

FOR IMMEDIATE RELEASE

CONTACTS: Erin Greeson, National Audubon Society, 503.913.8978, egreeson@audubon.org
Emily Guidry Schatzel, National Wildlife Federation, 225.253.9781, schatzele@nwf.org
Elizabeth Skree, Environmental Defense Fund, 202.553.2543, eskree@edf.org

RESTORE Council Releases Initial Gulf Coast Restoration Plan

Groups urge Council to prioritize ecosystem restoration, Louisiana Coastal Master Plan in final plan

(New Orleans, LA – August 21, 2013) Today, the Gulf Coast Ecosystem Restoration Council released its Initial Comprehensive Plan: Restoring the Gulf Coast’s Ecosystem and Economy. Leading national and local conservation and restoration organizations – Environmental Defense Fund, National Audubon Society, National Wildlife Federation, Coalition to Restore Coastal Louisiana and the Lake Pontchartrain Basin Foundation – released the following statement:

“We thank the Gulf Coast Ecosystem Restoration Council for its efforts toward a comprehensive plan to restore the invaluable Gulf ecosystem. As the Council takes its next crucial step of prioritizing ecosystem restoration projects, we urge them to embrace the Louisiana Coastal Master Plan as its guiding document for restoring the Mississippi River Delta, which was ground zero for the 2010 Gulf oil disaster.

“Since the Mississippi River and its surrounding wetlands are a driving force behind ensuring a healthy Gulf Coast ecosystem, thriving local economies and protected communities, these Mississippi River Delta restoration projects will create an important cornerstone for Gulf-wide ecosystem restoration. Truly restoring the delta will be a critical component to successfully restoring the entire Gulf region – both ecologically and economically.

“As the Council moves from planning to implementation, it should work with Louisiana to achieve the vision set forth in its Coastal Master Plan. A vibrant Gulf of Mexico starts with a strong Mississippi River Delta.

“We look forward to working with the Gulf Coast Ecosystem Restoration Council as it moves its plan from conception to completion.”

###

By Emily Reyna

For those following cap and trade, today is another success for California’s economy and environment. The fourth auction came and went last Friday and the results published by the California Air Resources Board (ARB) are once again decisively positive. With complete sale of current allowances, diverse bidder participation and stable clearing price, the health and staying power of the carbon market is clear.  Let's take a closer look at the results:

Results Summary

Allowance year Allowances offered Allowances sold Settlement price 2013 13,865,422 100% $12.22 2016 9,560,000 100% $11.10

Current allowances sold and settlement price: All of the current 2013 allowances offered in this auction were purchased, which indicates that the carbon market remains healthy and competitive. The price per allowance settled at $12.22. This is 13% below May’s clearing price. While this dip was expected by analysts –with one contributing factor being the possible amendment to the cap-and-trade regulation that would increase free allowances to industry and natural gas emitters in the second compliance period — there are a number of reasons why the moderate prices for allowances are good news.

Low prices actually suggest that regulated companies believe they will have lower than expected costs in complying to allow California to meet the carbon cap. And as noted in a separate EDF post, the right way to judge a carbon market is in the cap, not the prices. Another promising reason for lower prices may be the fact that regulated entities like California refineries are investing in energy efficiency projects that cost-effectively reduce both emissions and the companies’ energy bills.

Future allowances sold and settlement price: For the first time in the history of the cap-and-trade regulation, all futures sold at a clearing price of $11.10 over the floor price $10.71. This points to increased certainty in the future strength of the market. As we approach the second compliance period, participants are preparing to meet their compliance obligations. In addition, the market is responding to ARB’s continued commitment to ensuring the longevity of this program by proposing changes like additional cost containment and maintaining stringency on the transportation sector. Another reason for strong demand in the advanced auction can be seen by the fact that over 96% of future allowances were purchased by compliance entities, meaning some of the programs biggest polluters may have started buying credits for their post 2016 obligations.

Qualified Bidders: With each auction, the pool of qualified auction participants continues to diversify. This auction saw 79 qualified bidders. This diversity in participants reflects the great interest in California’s carbon market and demonstrates that there is no single company controlling the market.

Auction proceeds: This auction brought almost $140 million to the state, for a total of almost $400 million to date. California communities should look forward to Governor Brown holding up his commitment to ensure those proceeds are used to advance the goals of AB 32, directing them towards the highest priority, most effective investments for climate pollution reductions, especially in disadvantaged communities which will get at least 25%  or almost $100 million to date.

Sparking International Interest

We’re about nine months into what many have called a “grand experiment,” and far from the doomsday warnings from opponents who argue California’s climate change law will hurt consumers, jobs, and the ability of businesses to expand.

Today, we are seeing a quite different future.

In fact, those sky-is-falling messages continue to be out of sync with economic reality and public opinion in both California and around the world.

A recent PPIC survey shows a record-high majority of Californians say California should act now to reduce greenhouse gas emissions, rather than wait until the economy and job situation improves. And various other jurisdictions are following California’s lead, including other states, provinces and countries. Since California’s first cap and trade auction in November 2012, the state approved linkage with Quebec; Shenzhen, a city on the South China Sea launched the first of seven Chinese regional pilot carbon market systems with California’s top climate change official, California Air Resources Board (CARB) Chair Mary Nichols in attendance at the launch; and the Australia Government Clean Energy Regulator signed a Memorandum of Understanding with California focusing on “information-sharing” to improve our respective market base programs to reduce climate pollution.

The California carbon market continues to march forward with good news. And while a true “global” carbon market may still be a ways off, others around the world are looking to learn from the Golden State.

By Marita Mirzatuny

This commentary originally appeared on EDF's Voices blog.

Source: Department of Energy Solar Decathlon/Flickr

These days, the future is often in the news. It’s not uncommon to come upon articles about cars that drive themselves, vacation trips to space, and automated smart houses a la the Jetsons.

I don’t know much about space tourism or self-driving cars, but I do know that smart homes and the associated technologies are already allowing for the possibility of environmental benefits and economic savings that are nothing short of futuristic.

Our utility grid is the largest machine in world. Unfortunately, however, this machine exacts human and environmental costs all the way down the line — from extraction to combustion. But we’re at the beginning of an energy revolution in home energy management systems that may make consumers key players in solving these problems.

What are home energy management systems (HEMS)?

The platform for increased interaction between consumers and the energy grid will be home energy management systems (HEMS), devices that are part iPad-for-your-home and part thermostat. Some of these devices already exist – from apps that allow users to play games and earn rewards while saving electricity, to GPS-enabled programs that  cool down your house when you’re on your way home from work in the summer .

It has been forecast that the number of households with HEMS will grow to more than 40 million in 2020. (Companies like SONY and Hitachi are in the R&D phase with HEMS devices, while Nest and Check-It already have some on the market.) And if HEMS can be combined with services we already use — like utilities, security, cell and Internet, then more consumers will buy in.

Why aren’t more people using home energy management systems?

The problem, so far, is that technological advances in our electrical grid have tended to benefit the utilities more than the consumer. For example, by the end of 2015, approximately “45% of all U.S. households will be served by smart meters. But as few as 10% of those meters will be enabled for two-way communications” via HEMS.

Lacking that interactive connection with the energy grid,  consumers won’t fully benefit from HEMS’ capabilities, like providing them with real-time information on energy costs and usage, which will let people save money by using power when its costs are lowest, and even earning money by selling unused, locally generated power (say from rooftop solar panels) back to the utilities.

That’s where the future of energy usage is today. We’ve reached the point where we have the technical ability to create a true interactive smart grid that benefits consumers and utilities and the environment. But we haven’t yet put in place the state-by-state rules and regulation that will allow all that futuristic technology to take full effect.

There are market-based obstacles that can be overcome, and EDF is working in a number of states – from Illinois to California to Texas – to get the regulations needed for a true smart grid that will bring convenience, savings and environmental benefits to consumers, utilities and the environment.

Oil from BP spill pushed onto shelf off Tampa Bay by underwater currents, study finds
By Craig Pittman, Tampa Bay Times. Aug. 20, 2013.
"The thick globs of BP oil that washed ashore on beaches along Florida's Panhandle in 2010 never reached Tampa Bay, to the relief of hotel owners, restaurateurs, anglers, beachgoers and local officials. But oil from the Deepwater Horizon spill, floating beneath the surface after being sprayed with dispersant, settled on a shelf 80 miles from the Tampa Bay region within a year of the spill's end, according to a scientific study published this week…" (read more).

Gulf Coast compensation fund under attack: Our view
By The Editorial Board, USA Today. Aug. 20, 2013.
"Gulf Coast residents, victimized in 2010 by BP's Deepwater Horizon oil rig disaster, are being victimized again, this time by trial lawyers exploiting a legal system ill-equipped to handle such calamities…" (read more).

BP not a victim: Opposing view
Op-ed by Stephen Herman and James Roy, USA Today. Aug. 20, 2013.
"Three years ago, the Gulf Coast was devastated by the worst man-made environmental disaster in American history. Eleven men lost their lives on the Deepwater Horizon oil rig, and millions of gallons of oil destroyed countless wildlife. The region's economic backbone was shattered…" (read more).

Levee board appointments may let Jindal interfere with suit
By Jeff Adelson, The Advocate (Baton Rouge). Aug. 21, 2013.
"Gov. Bobby Jindal’s administration will have its first opportunity to directly interfere with a massive lawsuit claiming oil and gas companies contributed to the destruction of Louisiana’s coast next month, when a nominating committee considers whether to reappoint key members of the flood control board that filed the suit…" (read more).

BP puts Louisiana justice on trial: Kemp
By John Kemp, Reuters. Aug. 20, 2013.
"BP's increasingly bad-tempered spat with the U.S. federal court, claims administrators and legal community in New Orleans over oil-spill compensation payments suggests the company has given up trying to win the case locally…" (read more).

New BP ads say people without losses seeking money for 2010 oil spill
By Bruce Alpert, NOLA.com | Times-Picayune (New Orleans). Aug. 20, 2013.
"BP is back with new newspaper ads, this time aimed at what are billed as unscrupulous trial lawyers seeking a big pay day gaining compensation for people who didn't suffer any losses from the 2010 Deepwater Horizon oil spill…" (read more).

USF scientist says BP oil spill residue still on Florida shelf
By Tampa Bay Business Journal. Aug. 21, 2013.
"A new report published in the journal Environmental Science and Technology by marine science professor at the University of South Florida Dr. John Paul suggests that Tampa Bay’s sea life is still in danger due to BP’s 2010 Deepwater Horizon oil spill and the chemicals used to disperse oil…" (read more).

BP says community would notice if they were gone
By Howard J. Castray, Jr., Tri-Parish Times (Houma, La.). Aug. 20, 2013.
"BP is making good on its commitment to the region, awarding $625,000 to projects in St. Mary Parish and $6 million to Terrebonne, according to the company’s community relations director…" (read more).

State agency could take action on levee authority's oil and gas lawsuit
By WWL-TV (New Orleans). Aug. 20, 2013.
"Louisiana's Coastal Protection and Restoration Authority meeting in Dulac Wednesday could take action on the Eastbank Flood Authority's lawsuit against nearly 100 oil and gas companies for damage to Louisiana's wetlands…" (read more).

BP Deepwater Horizon oil lingers; BP shirks responsibility
By Tom Young, The Legal Examiner. Aug. 21, 2013.
"Results from a new study conducted by the University of South Florida show that oil from BP’s Deepwater Horizon blowout settled approximately 80 miles off the coast of Tampa Bay, hundreds of miles south of the stricken wellhead. Findings from USF oceanographer John Paul’s study were published this week in the journal Environmental Science & Technology…" (read more).

Seafood safety testing continues three years after oil spill
By Steve Phillips, WLOX-TV (Biloxi, Miss.). Aug. 20, 2013.
"Since the BP oil spill three years ago, the Department of Marine Resources has tested 622 seafood samples. And all of those samples have been shown "safe" to eat. The Commission on Marine Resources heard an update on the seafood safety program at Tuesday's monthly meeting…" (read more).

August 20, 2013

Editorial: BP court case still causing waves
By Editorial Page staff, The American Press (Lake Charles, La.). Aug. 16, 2013.
"As the tropics begin heating up for the traditional height of hurricane season, so, too, is the court case related to the 2010 Deepwater Horizon oil rig explosion and environmental calamity in the Gulf of Mexico…" (read more).

Opinion: BP tries to duck oil spill accountability
By CityBusiness Editorial staff, New Orleans CityBusiness. Aug. 15, 2013.
"It should come as little surprise that BP is going on the offensive as it faces billions of dollars in damage claims from the 2010 Macondo explosion and spill that killed 11 rig workers and tainted the Gulf of Mexico and coastal shorelines with an estimated 4.9 million barrels of oil…" (read more).

Gulf Spill Sampling Questioned
By Henry Fountain, The New York Times. Aug. 19, 2013.
"An analysis of water, sediment and seafood samples taken in 2010 during and after the oil spill in the Gulf of Mexico has found higher contamination levels in some cases than previous studies by federal agencies did, casting doubt on some of the earlier sampling methods…" (read more).

Jindal administration could move against oil, gas lawsuit this week (Video)
By Michelle Millhollon, The Advocate (Baton Rouge). Aug. 20, 2013.
"The governor’s coastal adviser, Garret Graves, said Monday that a state entity could decide this week to legally intervene in a controversial lawsuit against the oil and gas industry…" (read more).

Levee board opens door to settling lawsuit
By Jeff Adelson, The Advocate (Baton Rouge). Aug. 19, 2013.
"The East Bank flood protection authority opened the door to negotiations Thursday in its coastal erosion suit against about 100 oil and gas companies after meeting with the state’s top coastal official…" (read more).

Opinions clash on the effectiveness of diversion projects
By Amy Wold, The Advocate (Baton Rouge). Aug. 17, 2013.
"An article in Nature Geosciences magazine touts diversions of freshwater and sediment from the Mississippi River as the savior of Louisiana’s coastline…" (read more).

Public opposition to Plaquemines Parish coal terminals grows
By Susan Buchanan, The Louisiana Weekly. Aug. 19, 2013.
"Louisiana, a major exporter of coal from other states, could ship far more of that fossil fuel once the Panama Canal is widened and deepened in 2015. Next year, RAM Terminals, LLC hopes to build a coal export facility in Plaquemines Parish in Myrtle Grove near Ironton–30 miles south of New Orleans…" (read more).

Experts clash on estimates of oil spilled into Gulf
By Harry Weber, The Houston Chronicle. Aug. 18, 2013.
"A sparring match between some of the world’s top scientists over how much oil spewed into the sea following the 2010 Gulf of Mexico disaster is heating up as a civil trial is set to resume next month…" (read more).

Editorial: Lawsuit targets only one of many
By Editorial Page staff, The Daily Advertiser (Lafayette, La.). Aug. 17, 2013.
"Many questions are being raised about the recent lawsuit filed by the Southeast Louisiana Flood Protection Authority-East against 97 oil and gas producers and pipeline companies…" (read more).

Oil and gas are vital to Louisiana
Letter to the Editor by Chris John, Mid-Continent Oil and Gas Association. The Houma Courier. Aug. 19, 2013.
"The Louisiana House-Senate Transportation Committee met last week to discuss the New Orleans levee district’s lawsuit against oil and gas companies for damage to the state’s coastal wetlands…" (read more).

Scientists Investigating Troubling Trend in Kemp's Ridley Numbers
By Janine Reyes, KRIS-TV (Corpus Christi, Tex.). Aug. 15, 2013.
"More than 3 years after the BP Deepwater Horizon oil spill, some effects of the mess are still being felt…" (read more).

Trying to wash us away
By Clancy DuBos, Gambit (New Orleans). Aug. 20, 2013.
"It's more than a tad ironic that Gov. Bobby Jindal penned a syrupy paean to New Orleans last week — hailing us as "America's Comeback City" — when he's doing everything he can to make sure that New Orleans will be surrounded by the Gulf of Mexico by the end of this century…" (read more).

Eight years after Katrina, a stronger system of storm protection: Editorial
By The Editorial Board, The Times-Picayune (New Orleans). Aug. 18, 2013.
"Hurricane Isaac provided a real-life test for the New Orleans region's new $14 billion storm protection system last September, and the floodwalls and gates built in the past eight years proved their worth…" (read more).

BP's tough talk will backfire, Gulf spill lawyer says
By Andrew Callus, Reuters. Aug. 15, 2013.
"BP's hard-line legal tactics aimed at capping the financial blowout from the 2010 Gulf of Mexico oil disaster will backfire, according to Joe Rice, negotiator of last year's settlement on behalf of over 100,000 compensation claimants…" (read more).

New study questions oil spill data, fish safety
By Dee Dee Thurston, The Houma Courier. Aug. 16, 2013.
"The level of cancer-causing pollutants left behind in Gulf waters by the BP oil spill was greater than reported by the federal government, according to a report issued this week by a group of independent scientists…" (read more).

Documents describe fees, hiring of private attorneys for coastal loss lawsuit
By Bob Marshall, The Lens (New Orleans). Aug. 19, 2013.
"The Jindal administration has criticized the Southeast Louisiana Flood Protection Authority-East for enriching trial attorneys, acting without state approval and offering inadequate public notice before the authority sued oil, gas and pipeline companies for damage to coastal wetlands…" (read more).

Key disagreements remain between levee board, Jindal administration over coastal loss lawsuit
By Bob Marshall, The Lens (New Orleans). Aug. 16, 2013.
"What was changed Thursday by the local levee authority’s offer to hold off on some of its lawsuit against the oil and gas industry if the Jindal administration met certain conditions?…" (read more).

New Orleans levee authority will consider 45-day pause to coastal erosion lawsuit
By Benjamin Alexander-Bloch, The Times-Picayune (New Orleans). Aug. 15, 2013.
"The New Orleans levee authority on Thursday passed a resolution to consider placing a 45-day pause on its lawsuit against about 100 oil, gas and pipeline companies. The authority said the pause could allow the group to work further with the governor’s office and set up “a task force to examine and review all ramifications of the lawsuit.“…" (read more).

Regulations to restock fisheries and keep fishermen safe ought to go hand in hand. Unfortunately, in an effort to control how many fish are caught, regulators frequently impose rules that end up putting fishermen in harm’s way. For instance, if fishermen are limited to a set number of days on the water, there is pressure [...]

By John Finnigan

If Ben Franklin lived today, he might say that nothing is certain but death, taxes and cyber-attacks.  Cyber-attacks occur when individuals or groups hack into another group’s computer information systems to steal, alter or damage key infrastructure.  Our nation’s electric grid is under constant attack according to a survey of electric utilities by U.S. House Representatives Henry Waxman and (now) Senator Edward Markey.  The grid was the greatest engineering achievement of the 20th Century, but cybersecurity was equally unknown to those grid engineers as it was to Ben Franklin.  We need to do more to protect our energy infrastructure.

The U.S. has finally called out China for repeated and pervasive cyber-attacks.  Mandiant, a cybersecurity firm, released an alarming report in February 2013 regarding the ongoing cyber-attacks by the Chinese army.  James Clapper, the Director of National Intelligence, described cyber-attacks as a soft war already underway and a dire global threat in his April 2013 World Threat Assessment to the U.S. House Permanent Select Committee on Intelligence.  In May of this year, for the first time, the Pentagon’s annual report to Congress on the Chinese military openly accused China’s military of repeated cyber-attacks on the U.S. government and defense contractors.

Cyber-attacks are underway not only by China, but also by Iran, Russia, Al-Queda, organized crime, industrial spies, ex-utility employees and rogue hackers.  The U.S. Department of Homeland Security investigated over 200 serious cyber-attacks against critical infrastructure during the first half of 2013.  The electric grid was targeted in over half of these attacks.  At the recent Black Hat security conference in Las Vegas, Cyrill Brunschwiler of Compass Security explained how the smart grid’s wireless network can be easily exploited to steal electricity and to cause massive blackouts.  Though innovation and new clean energy technologies are key to modernizing our antiquated energy system, the electric grid is more vulnerable to cyber-attacks with increased use of smartphones, tablets, mobile apps and electric vehicles to connect with our home electronic devices.  A July 2012 report by the Government Accountability Office (GAO) outlines the various threats to the electric grid.

Have any of these grid cyber-attacks succeeded?  Some experts blame cyber-attacks for the Northeast blackout of 2003 and a massive 2008 Florida blackout.  The Central Intelligence Agency (CIA) has reported that cyber-attacks against the electric grid have caused blackouts in several cities around the world.

Here are the key highlights of our country’s efforts to protect the U.S. electric grid:

• In 2002, the nuclear industry adopted cybersecurity standards; the Nuclear Regulatory Commission expanded these standards in 2009 with cybersecurity regulations for nuclear facilities.

• The Energy Policy Act of 2005 authorized the Federal Energy Regulatory Commission (FERC) to approve mandatory cybersecurity reliability standards for the grid.  FERC selected the North American Electric Reliability Corporation (NERC) to develop these standards.

• In 2006, NERC developed mandatory reliability standards for the grid.

• In 2007, FERC approved NERC’s Critical Infrastructure Protection (CIP) cybersecurity reliability standards.

• The Energy Independence and Security Act of 2007 authorized the National Institute of Standards (NIST) to develop technical standards for interoperability of smart grid equipment and software, including cybersecurity standards.  In 2009, NIST formed the Smart Grid Interoperability Panel (SGIP), a public-private partnership, to develop these standards.  In turn, SGIP formed the Cyber Security Working Group (CSWG).

• In 2010, NIST issued its initial cybersecurity standards for smart grid equipment and software, developed by the CSWG.

• In 2010, FERC issued Order 743, directing NERC to revise its reliability standards to cover all electric facilities necessary to operate an interconnected grid.

• In 2011, FERC clarified the reliability standards regarding actions utilities can take to keep the grid running during electric emergency conditions.

• In 2012, FERC approved NERC’s revised reliability standards for the electric grid.  In January 2013, NERC asked FERC to approve further revisions and FERC is reviewing these new revisions.

Source: InSerbia

• In February 2013, President Obama issued Executive Order 13636, which directs NIST to develop a Cybersecurity Framework with standards for the protection of critical infrastructure facilities, including the electric grid.

• In April 2013, the SGIP was formally established as an independent organization, known as SGIP 2.0, Inc.  The organization will continue to function as a public-private partnership, and will be funded by industry and NIST.  Cybersecurity standards will be developed by the Smart Grid Cybersecurity Committee of SGIP 2.0.  This committee is developing a user’s guide for the NIST cybersecurity standards.

• In July 2013, NIST released a preliminary version of its Cybersecurity Framework.

Here’s what our country still needs to do to protect the U.S. electric grid:

• Our leaders must ensure that federal budget cuts do not impair the Department of Homeland Security’s capability to protect our nation’s critical infrastructure.

• Our leaders must develop a clear, overarching cybersecurity strategy, governance methods and cybersecurity response procedures, as the GAO recently recommended.

• FERC and electric utilities must implement the GAO’s recommendations, detailed in its July 2012 report Cybersecurity: Challenges in Securing the Electric Grid.

• NIST must finish developing its Cybersecurity Framework and utilities must implement the standards.  NIST is scheduled to release the Cybersecurity Framework for public comment in October 2013, and to finalize the standards by February 2014.

• Electric utilities should comply with NERC’s voluntary cybersecurity recommendations.  Currently only 20% of electric utilities follow these recommendations.

• The public and private parties responsible for protecting our critical infrastructure facilities must adopt GAO’s recent recommendations for implementing better communication protocols.

• The Department of Homeland Security and the Federal Communications Commission must develop performance standards for cybersecurity measures for the communications network and the internet in a timely manner, as recommended by a recent GAO report.

• The Department of Homeland Security must implement the GAO’s recent recommendations regarding the Regional Resiliency Assessment Program.

• The Senate should pass the Cyber Intelligence Sharing and Protection Act of 2013, which better enables the government and companies to quickly share vital information needed to respond to a cyber-attack.  The electric utility industry provided input for this bill and is a strong supporter.  The bill passed the House on April 18, 2013 by a 288-127 vote.

As the U.S. improves its preparedness, we must strike the appropriate balance between security and privacy.  Preparation and privacy rights can co-exist and are not mutually exclusive.  This has been brought into critical focus by Edward Snowden’s release of top-secret National Security Administration surveillance practices.

We can and must improve the cybersecurity of our critical electric infrastructure.  As Ben Franklin also said: “By failing to prepare, you are preparing to fail.”  Let’s prepare to succeed in protecting the electric grid with effective cybersecurity measures.

By Emily Reyna

By Emily Reyna and Katherine Hsia-Kiung

 

Last Friday, California companies participated in the fourth cap-and-trade auction since the program’s historic opening in November 2012. The results of this auction will be made public on Wednesday, but even without the exact numbers, the program’s previous success is proving the carbon market won’t be going anywhere anytime soon. Just look at the scoreboard so far and you’ll see California’s economy is rebounding. And, despite efforts by the program’s opponents to shut down the program, every auction to date has seen strong and diverse bidder participation, complete sale of current allowances, and steady demand for future allowances.

This shouldn't come as a surprise, given California’s successful, albeit brief, history of cap-and-trade.  On the eve of the first auction, the California Chamber of Commerce filed a lawsuit to invalidate the auctions and spark doubt in the minds of the auction participants. However, this underhanded ploy was unable to achieve what it had intended, and the auction went off smoothly.

Similarly, just before the third auction last May — and on the same day as the release of the state’s plan for program expansion –Pacific Legal Foundation strategically filed a similar lawsuit on behalf of a handful of companies attempting to block the auctions. This once again did nothing to thwart the program’s success. Every current allowance was purchased come auction time at a settlement price an impressive 31% above the floor price. Almost 80% of the future allowances were also purchased, indicating the overall belief that the litigation brought against the program had no validity.

Since the third auction, the secondary market (for future sales of) carbon allowances has remained relatively stable. While there might be a bearish tone to this week’s auction with regard to price of allowances, we remain quite bullish with regard to the main goal of the program, which is to reduce carbon emissions in the most cost-effective way possible. This is happening. The program’s ambitious cap is in place, companies are already finding ways to reduce emissions, and the fact they can do it while paying around $14 per permit is also telling. It means they can grow their business without producing so much carbon that they need to surrender more allowances.

The continual success of the cap-and-trade program is evidence of a well-constructed, strong, and adaptive policy that will undoubtedly continue to achieve the ultimate goal of curbing California’s carbon pollution while growing the California economy.  The carbon market naysayers have long made claims that this program would increase the cost of business in California, decrease the number of jobs, and lead to economic disaster. But we’re seeing just the opposite. According to an analysis published by Bloomberg early last week, California’s economy is experiencing sustained and promising growth, prodded on by a strengthening housing market and decreasing unemployment rate. In June alone, more than 30,000 new jobs were created in the state, the largest increase for that month in the entire country. In the past 12 months, the unemployment rate in California has fallen by 2.1 percentage points, outpacing the rest of the country by a factor of more than three.

During nine of those months, the state has been regulated under the cap-and-trade program. It is clear that arguments mounted against the policy claiming negative repercussions on the state’s economy are completely unfounded.

California is leading the country in the number of green jobs  up and down the state, from Orange County to San Joaquin County.  As we await the results of the fourth auction, we can cite this data and be confident in a viable and efficient carbon market that’s helping to make California stronger than ever.

By Chris Meyer

(This post was written with the help of Sarah Marlay, EDF summer intern and graduate student at Yale School of Forestry and Environmental Studies)

In the face of the growing threat of climate change, Reducing Emissions from Deforestation and Forest Degradation (REDD+) has been a hot topic in international climate negotiations for nearly a decade.

Parties of the United Nations Framework Convention on Climate Change (UNFCCC) are currently in the process of deciding on many important elements of the REDD+ policy framework. The ‘non-carbon benefits’ of REDD+ activities is one such issue that is just now being discussed in two different forums under the UNFCCC.

In June, countries at the UNFCCC’s 38th session of the Subsidiary Body for Scientific and Technological Advice (SBSTA) proposed a draft text to be considered at the Conference of the Parties’ (COP) 19th session this coming November. The draft text acknowledged the need for clarity on the types of non-carbon benefits and related methodological issues and for the discussion to take place in 2014.

Also, this week Parties will convene a workshop on the COP Work Programme on Results-based Finance for REDD+, with the mandate to explore ways to incentivize non-carbon benefits.

In this post, I offer my answers to the two key issues related to non-carbon benefits that have been raised by the Parties this summer: the lack of clarity surrounding non-carbon benefits; and the need to identify ways to incentivize non-carbon benefits in REDD+.

For a more in-depth discussion, please see  our policy paper on non-carbon benefits.

Lack of Clarity Surrounding Non-Carbon Benefits

Defining Non-Carbon Benefits

‘Non-carbon benefits’ are positive outcomes resulting from REDD+ activities beyond those associated with carbon storage and/or sequestration. Non-carbon benefits are often broken down into 3 main types: social, environmental and governance benefits.

The diagram below provides several examples of potential non-carbon benefits in each of these 3 categories:

One difficulty with the term ‘non-carbon benefits’ is that it encompasses such a wide range of potential benefits that it becomes challenging to target and promote specific non-carbon benefits at the national level.

To provide additional clarity on non-carbon benefits, specific non-carbon benefits should be identified and prioritized at the national level, according to each country’s objectives and context.

Once selected, these priorities for non-carbon benefits can inform the design of the national REDD+ program.

Clarifying the Relationship between Non-Carbon Benefits and Safeguards

At COP 16 in Cancun, Parties of the UNFCCC adopted a list of safeguards that should be promoted and supported by REDD+ activities. Through this decision, key non-carbon benefits were formally incorporated within the framework of ‘REDD+ safeguards.’

While certain safeguards are protective in nature and set minimum standards for REDD+ actions, other safeguards fall within the category of ‘non-carbon benefits’ by extending beyond protective measures to require that REDD+ activities promote and/or enhance social, environmental and governance benefits.

Incentivizing Non-Carbon Benefits

Centrality of Non-Carbon Benefits to the Success of REDD+

There has been growing global recognition of the fact that, if REDD+ is to succeed in mitigating climate change, non-carbon benefits must play a part. It is often through the promotion of these benefits that many REDD+ strategies address the root causes of drivers of deforestation and achieve real and permanent emission reductions.

Ways to Incentivize Non-Carbon Benefits

The discussion in the COP Work Programme this August will focus on Phase 3 of REDD+, when payments for REDD+ results will be made.

Here, I suggest ways that non-carbon benefits can be incentivized in Phase 3 by both the UNFCCC and avenues external to the UNFCCC.

The UNFCCC should incentivize non-carbon benefits by making results-based payments conditional upon compliance with the REDD+ safeguards link more explicit.

Despite significant progress in the UNFCCC in institutionalizing safeguards, Parties have not clearly defined ‘results-based payments.’

‘Results-based payments’ should be defined under the UNFCCC as payments for emission reductions that are conditional upon compliance with the REDD+ safeguards. Under this definition (and as already stated in the Cancun Agreement), only REDD+ activities that enhance social and environmental benefits, incentivize the conservation of natural forests and their ecosystem services, and promote effective forest governance mechanisms, along with the other safeguards, will be eligible to receive payments.

Outside of the UNFCCC and the REDD+ mechanism, REDD+ activities can receive direct compensation for non-carbon benefits by securing funds from funding sources that promote specific non-carbon benefits.

For example, Payment for Ecosystem Services (PES) initiatives worldwide have promoted and directly paid for diverse ecosystem services, like biodiversity conservation.

Additionally, emission reductions associated with non-carbon benefits are more competitive in carbon markets and in attracting multilateral or bilateral funding, thereby providing another incentive for REDD+ activities to promote non-carbon benefits.

In the voluntary carbon market, emission reductions achieved while promoting non-carbon benefits often receive higher prices, and there has been growing demand for larger quantities of these credits. Also, national REDD+ programs with prominent non-carbon benefits may have a higher likelihood of securing multilateral or bilateral funding arrangements (the case of the Forest Carbon Partnership Facility’s Carbon Fund).

The Role of the UNFCCC Moving Forward

To help bring clarity to the discussion surrounding non-carbon benefits, Parties of the UNFCCC should begin identifying and prioritizing non-carbon benefits at the national level. This progress will help clarify the types of non-carbon benefits that will be promoted and potential challenges to their implementation.

In order to incentivize non-carbon benefits, Parties should adopt a definition for results-based payments that clearly defines them as payments for emission reductions that are conditional upon compliance with the REDD+ safeguards.

While there is general consensus that non-carbon benefits are closely tied to the success of REDD+, what remains is for the Parties of the UNFCCC to clarify the role of non-carbon benefits in the global REDD+ framework, and in doing so, strengthen the foundation of REDD+ itself.

By Marita Mirzatuny

On Saturday, the Austin-American Statesman ran a review I wrote on Asher Price and Kate Galbraith’s new book, The Great Texas Wind Rush: How George Bush, Ann Richards, and a Bunch of Tinkerers Helped the Oil & Gas State Win the Race to Wind Power. Not only is it a great read and a thorough history of Texas’ wind industry, it mentions EDF multiple times; our own Mark MacLeod and Jim Marston played prominent roles in the grand negotiation that established Texas’ Renewable Portfolio Standard during the state’s electric utilities deregulation in 1999.

Today, Texas leads the nation in wind power, but it was not always so. The book charts how the early days of wind turbine mishaps and misfortunes ushered in the present state of affairs, with wind providing over 9% of state’s overall electricity in 2012 and up to 28% of the state’s power when the wind is at its best. The authors craft the story well, pulling from legendary tales of the Wild West, romantic literary and artistic accounts from the likes of Cormac McCarthy and Woody Guthrie and the gubernatorial regimes of Ann Richards and George W. Bush. To entice you to pick up a copy, here are some excerpts, including a quote from Jim Marston who, rightfully so, has the last words in the book.

Starting with the early days of the “tinkerers”, Galbraith and Price, both energy and environmental reporters from the Texas Tribune and the Austin-American Statesman, respectively, feature many characters, including Marcellus Jacobs:

One of these hobbyists was a farm boy from the northern plains named Marcellus Jacobs, born in North Dakota in 1903. The family soon moved to a lonely spot in eastern Montana, and Jacobs, one of eight children, grew up relying on kerosene lamps and a gasoline generator. He was a born handyman – ‘when I was still in high school, I built and sold little peanut radios that operated on storage batteries,” Jacobs remembered decades later – and together, Marcellus and his older brother Joseph combined the rear axle of a Model-T Ford with the fan of a water windmill and created a machine that would generate electricity. Using ideas about airplane propellers that Marcellus had learned while flying during the 1920s, they refined it to a three-bladed machine, the design that endures today…One of the brothers’ machines, installed on the South Pole in 1933, was still whirling more than two decades later.

Summarizing the future, the authors highlight wind pioneer Michael Osborne, one of the principal characters in the book:

The future of Texas wind lies, for the moment, in the very places [T.Boone] Pickens and [Herman] Schellstade could not make it work. The biggest hopes are the Panhandle and the coast, though mostly onshore rather than off. Pickens had picked Pampa not only because his folksy ways would resonate with the landowners, but also mostly because the area sported some of the state’s most consistent winds. This was the same place, after all, where nearly three decades earlier hometown boy Michael Osborne, inspired by watching a glider soar and swoop during his childhood, had plugged five spindly turbines into the grid in 1981 and pronounced it the first wind farm in Texas.

And last but not least, from the founding director of EDF’s Texas office, Jim Marston:

Texans, for their part, stand ready to claim the credit. “Whatever stereotypes people might have,” says Marston, “if Texas can do it, hell, anyone can do it.”

By Marcelo Norsworthy

More and more companies are taking an interest in supply chain sustainability and realizing that environmental responsibility is important for business success in the U.S. and abroad. Additionally, Latin America is a key trading partner for Texas and the fastest growing trade region for the United States. It goes without saying that as trade in the Americas expands, companies, governments and organizations throughout the region should increase cooperation on freight sustainability.

Given the growing demand for green logistics, Environmental Defense Fund (EDF) is pleased to speak at the 5th Forum on Sustainability and Supply Chain to be held next week in Buenos Aires, Argentina. This distinctive event plays an important role in Latin America by bringing together practitioners, experts, advocates and business leaders to advance supply chain sustainability.

The forum is hosted by Foro Logística and WebPicking.com, a group that specializes in supply chain logistics in Latin America, and will take place at the Technological Institute of Buenos Aires (ITBA). We look forward to sharing our experience promoting green freight with regional partners and learning about successful strategies that can be implemented in Texas.

BP Asks Judge to Deny Investors’ Bid to Sue as Group Over Spill
By Laurel Calkins and Margaret Cronin Fisk, Bloomberg Businessweek. Aug. 15, 2013.
"BP Plc (BP/) asked a federal judge to deny U.S. investors the right to pursue a class action, or group, lawsuit claiming the company misled them before and after the 2010 Gulf of Mexico oil spill…" (read more).

Legislators question levee lawsuit
By Michelle Millhollon, The Advocate (Baton Rouge). Aug. 15, 2013.
"Legislators delving into a controversial lawsuit against the oil and gas industry got into a war of words Wednesday between the Jindal administration and New Orleans-area levee board officials…" (read more).

Opposition to suing oil firms is politically motivated: Letter
Letter to the Editor by Ronald R. Besson, The Times-Picayune (New Orleans). Aug. 14, 2013.
"Re: "Levee group opposes lawsuit, " Metro, Aug. 11. Why not allow this lawsuit to be decided in a court of law?…" (read more).

Lawmakers criticize Flood Protection Authority for suing oil and gas companies
By Bob Marshall, The Lens (New Orleans). Aug. 14, 2013.
"When the Southeast Louisiana Flood Protection Authority-East filed its lawsuit against oil and gas companies for damages to coastal wetlands last month, vice president John Barry said he fully expected serious blowback from much of Louisiana’s political establishment…" (read more).

Tropical Depression 5 forms in eastern Atlantic, low pressure in Caribbean threatens to be T.D. 6
By Mark Schleifstein, NOLA.com | The Times-Picayune (New Orleans). Aug. 14, 2013.
"Tropical Depression 5 formed in the eastern Atlantic Ocean near the Cape Verde Islands late Wednesday, and a low pressure system approaching Mexico's Yucatan Peninsula continues to show signs of becoming a tropical system in the next 48 hours, according to the National Hurricane Center…" (read more).

Scientific Study Raises Questions over Extent of BP Oil Spill Toxicity and Status of Gulf of Mexico Fisheries
By Ted Williams, Fly Rod & Reel Online. Aug. 15, 2013.
"A collaborative team of independent scientists has just released a research study of various toxic compounds associated with the BP oil spill in the Gulf of Mexico (GOM)…" (read more).

State coastal chief assails suit against oil, gas
By Kevin McGill, The Associated Press. Aug. 15, 2013.
"A south Louisiana flood prevention board's lawsuit against oil and gas companies is an assault on a vital job-producing industry and throws a monkey wrench into a coordinated state effort to save and restore Louisiana's eroding coast, the state's top coastal official told a legislative panel Wednesday…" (read more).

Post-Katrina study: New Orleans rebuilding, but struggling with erosion, low education
By Kevin McGill, The Associated Press. Aug. 14, 2013.
"Recovery after Hurricane Katrina has been a major reason for a doubling of construction jobs around New Orleans, a new study shows…" (read more).

Busiest part of hurricane season begins
By Nicondra Norwood, FOX 8 (New Orleans). Aug. 14, 2013.
"Nerves can run high in south Louisiana when it comes to stormy weather. The traditional peak of hurricane season is about a month away, and a good way to calm those nerves is to take stock of your hurricane plan now…" (read more).

Two storms could threaten Gulf — one as quickly as this weekend
By Mississippi Business Journal blog. Aug. 14, 2013.
"Two possible tropical storms are developing just in time for the traditional peak of the Atlantic hurricane season…" (read more).

Lawmakers, flood authority spar over wetlands lawsuit
By Lauren McGaughy, NOLA.com | The Times Picayune (New Orleans). Aug. 14, 2013.
"Members of a New Orleans levee authority got an earful from state lawmakers in Baton Rouge on Wednesday, during a three-hour meeting to discuss the massive lawsuit the group filed against the oil and gas industry. Legislators said the authority should have coordinated with other state agencies and criticized the decision to employ trial lawyers for the case…" (read more).