By Marita Mirzatuny

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

Priorities

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

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

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

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

Bells & Whistles

(Source: Pecan Street)

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

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

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

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

Click here for a slideshow of the opening!

Federal agencies raise questions about state's Mid-Barataria
By Mark Schleifstein. The Times-Picayune (New Orleans, La.). July 15, 2013.
"The National Marine Fisheries Service has raised a series of questions about a state proposal to build a diversion on the Mississippi River near Myrtle Grove that would pump between 50,000 and 75,000 cubic feet per second of sediment and freshwater into Barataria Bay…" (Read more).

BP launches anti-fraud hotline for claims arising from 2010 oil spill in Gulf of Mexico
By The Associated Press. July 15, 2013.
"NEW ORLEANS –  BP has set up a hotline for people to report alleged fraud involving claims arising from the company's massive 2010 oil spill in the Gulf of Mexico.  Monday's launch of the hotline comes a week after a federal appeals court heard BP's argument…" (Read more).

Amendment targets project costs
By Nikki Buskey. The Daily Comet (Lafourche Parish, La.). July 15, 2013.
"An amendment passed the U.S. House of Representatives last week that would prevent the U.S. Army Corps of Engineers from applying mitigation rules that local leaders say have drastically driven up the cost of projects. Mitigation is work that is legally required to make up for the environmental impact…" (Read more).

BP looks to shave more money off Gulf oil spill fines tab
By Harry Weber. FuelFix – The Houston Chronicle. July 15, 2013.
"BP is asserting that roughly 10 percent of the crude that entered the water during the 2010 Gulf of Mexico oil spill should not be counted in the civil fines it faces because the oil dissolved before reaching the surface, the U.S. government said…" (Read more).

New Map Shows Where Nature Protects U.S. Coast
By Brian Handwerk. National Geographic. July 14, 2013.
"Americans looking to buy seaside property would do well to study the first ever nationwide map showing how and where natural habitats like reefs and vegetation best protect coastal residents from rising seas and catastrophic storms like last year's Hurricane Sandy…" (Read more).

Marine Fisheries Service expresses concerns about Myrtle Grove diversion
By Bob Marshall. The Lens (New Orleans, La.). July 14, 2013.
"In a recent letter to the state Coastal Protection and Restoration Authority, the National Marine Fisheries Service expressed many of the same concerns about the planned Myrtle Grove diversion voiced by opponents of the diversions contained in the state master plan for the coast…" (Read more).

BP is just having buyer's remorse on spill settlement sediment diversion plan
By Jim Hood. The Times-Picayune (New Orleans, La.). July 14, 2013.
"Along the Gulf Coast, we are all too familiar with BP's disingenuous advertisements. Since the Deepwater Horizon disaster on April 20, 2010, we've been subjected to BP's protestations that it is trying to "make things right." Three years and thousands…" (Read more).

By EDF Blogs

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

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

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

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

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

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

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

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

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

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

By Tom Murray

Today, KKR released its 2012 ESG Report, which highlights that the firm faces significant obstacles as it continues to integrate ESG (Environmental, Social and Governance) management throughout its investment process.  It also shows that KKR is prepared to live up to the challenge.

The firm's investment focus is increasingly global in nature and includes large investments in critical services like energy, healthcare and infrastructure, investments with enhanced responsibilities for the management of environmental and social issues.  In addition, recent developments including the Bangladesh clothing factory collapse and explosion at a natural gas well site in West Virginia have awakened more and more leading investors to the fact that environmental and social risks are increasingly material to investment performance.   

KKR’s latest report clearly shows that the firm has the necessary systems, processes and human capital to continue to evolve its already impressive ESG efforts.

In particular, the third annual ESG report highlights how an ESG effort can evolve at a committed private equity firm:

1)      The power of capital allocation: One action that stands out is KKR’s acknowledgement of the power of utilizing an ESG lens in the due diligence process.  Examples include not only better identifying potential ESG risks but also identifying new investment opportunities in renewable energy.  On page 21, KKR lays out its diligence process providing a framework for others to adapt.

2)      Acknowledging a need to further support natural gas investments:  Reducing the risks to public health and the environment from surging natural gas development is a top priority for EDF.  We see numerous opportunities for investors across the natural gas value chain to improve environmental management in these investments and we’re excited to see this commitment shared publicly by KKR.

3)      Green Portfolio Program kickstarted growth in other areas:  We are very proud to have partnered with KKR’s Green Portfolio program over the past five years.  Here’s why:

1. As an environmental advocacy group, we feel the environmental results are meaningful.
2. The financial results have excited the private equity sector about the opportunity that environmental management provides and inspired others to follow KKR’s lead.
3. The impressive results of the Green Portfolio Program prompted KKR to expand its ESG efforts, launching new initiatives and partnerships that are positively impacting human rights, employee health and our nation’s veterans.

But perhaps the most informative part of this year’s report is on its very last pages.  KKR reports against its commitment to the United Nation’s Principles for Responsible Investment and highlights its goals for the coming year.  And it doesn’t appear KKR has any plans to slow down.

KKR's full report can be found at kkresg.com.

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By Elena Craft, PhD

Dr. Joseph Dungan and his team from James Madison high school attended the forum and showed off their solar powered car.

If you haven’t heard already, San Antonio hosted its inaugural air quality forum this past week at the “Castle” headquarters of the socially conscious, innovative company Rackspace, and I felt fortunate to be an invited panelist at this groundbreaking event.

Mike Burke, chair and founder of the San Antonio Clean Technology Forum, and Scott Storment, executive director of Mission Verde Alliance, were leaders in developing the program, “Keeping It Clean: Our Air, Our Health,” to highlight San Antonio’s pressing need to focus on air pollution solutions and engage the local community on ways it can help.

In August 2012, San Antonio fell into “monitored non-attainment”, meaning the region failed to meet both federal ozone standards and the city’s own air quality goals established in the SA2020 plan. Known as a leader in taking proactive measures to address air quality challenges, the seventh largest U.S. city now faces rising levels of ground-level ozone. This increase has much to do with the rapid growth in population (a 16 percent increase in population between 2000 and 2010 according to U.S. census data) and the shift within the state’s energy landscape, with emissions from Eagle Ford oil and gas activities expected to contribute several parts per billion worth of ozone to the region’s airshed. Because city-dwellers have a heightened exposure to pollution, ground-level ozone is particularly dangerous in dense metropolitan areas. Research shows that urban residents are more at risk of respiratory health problems, such as asthma, heart attacks and lung cancer.

The forum discussion ranged from San Antonio’s successful history in meeting air quality standards to new efforts underway to transition from highly polluting coal fired power plants to clean energy solutions, such as solar power. Panelists included Doyle Beneby, president and CEO of CPS Energy, San Antonio’s municipal utility; Dr. Thomas Schlenker, director of the San Antonio Metropolitan Health District; Peter Bella, natural resources director with Alamo Area Council of Governments; and me. Robert Rivard, director of the Rivard Report was the moderator and Judge Nelson Wolff of Bexar County gave opening remarks. An overview of the discussion can be found here.

I applaud San Antonio for its proactive measures to improve ozone levels and empower the community to take simple actions that will create a healthier future for all San Antonians. As San Antonio, and other Texas cities for that matter, continues to grow at such a rapid rate, it is becoming increasingly important to promote sustainability and to simultaneously grow the economy with clean technology.

Some of the recommendations I mentioned at the forum include:

1.  Harness more clean energy:

Currently CPS Energy states that 47 percent of its energy generation comes from coal – that’s higher than the Texas average, which for the first quarter of 2013 was 37 percent, and even higher than the U.S. average of 42 percent. Other Texas cities, such as Austin and Houston, have been more aggressive in the purchase of wind and solar energy, and this commitment to clean energy will enable a healthier environment and better air quality for all.

2.  Raise the minimum energy efficiency standards for new buildings:

San Antonio was the first city in Texas to adopt the 2009 model building codes, established by the International Energy Conservation Code (IECC), but now the city is falling behind. Twenty-two other Texas cities have adopted, or are about to adopt, the 2012 codes, which will reduce new residential energy use by about 15 percent. The 2012 codes would save the average homeowner in San Antonio $21 per month on his or her electric bill, according to an analysis by the Building Codes Assistance Project. Additionally, the energy efficiency standards reduced nitrogen oxide (NOx) emissions by 879 tons in 2009 (equal to the emissions from 46,000 cars – according to the Energy Systems Laboratory at Texas A&M).

3.  Limit emissions from oil and gas activities:

Air pollution from oil and gas development is one of the environmental risks associated with a booming natural gas industry. For San Antonio, the aggressive development of the Eagle Ford, as well as the high volatile organic compounds (VOC) content of the gas in the area, means controlling emissions from Eagle Ford will be a critical element of the region’s clean air strategy plan. In fact, it was stated during the panel that these emissions could bring an additional 2-7 parts per billion worth of ozone to the region.

Change won’t happen overnight, but it does happen with a strong commitment and a plan to succeed. We encourage San Antonio to continue its strong leadership in air quality improvement by adopting a clean air campaign that looks at new challenges ahead.

I’d like to give a special shout out to Melissa Gray and her sustainability team at Rackspace for the exceptional effort that went into making the inaugural air quality forum in San Antonio eco-friendly. One hundred percent of the materials for the event were recycled, including 92 pounds of solid food waste that were composted. Gray’s forward thinking and thoughtful leadership come as a breath of fresh air!

A high court in the UK this week ruled that unused fishing quotas can be redistributed by the government from large scale vessels to smaller ones. Small scale inshore fishermen and fisheries minister Richard Benyon celebrated the decision as bringing added value to coastal communities in the UK. The judgment affirmed the Ministry’s authority to [...]

Fading away: Coastal erosion threatens Louisiana's fragile wetlands and economy
By Cole Avery. The News-Star (Monroe, La.). July 14, 2013.
"Ryan Lambert has seen amazing things in the Louisiana bayou. Skies full of ducks. Waters teeming with fish. Lush plant life giving habitat to the game that make the state “The Sportsman’s Paradise.” He’s spent 33 years sharing his home with thousands of tourists…" (Read more).

Our Views: Don’t waste BP funds
By The Advocate Editorial Board (Baton Rouge, La.). July 15, 2013.
"On the question of what coastal states should do with the windfall from BP fines, Ben Raines has a modest proposal: Use some of the money to buy up fragile wetlands. The BP oil company owes billions in fines because of a 2010 oil rig explosion off the coast of Louisiana that spewed…" (Read more).

Top 10 Cities for Hurricane Storm Surge Threat
By Becky Kellogg. Wunderground Blog. July 15, 2013.
"Just as the tropics heat up, a new report  warns that 4.2 million homes on the East and Gulf Coasts are at risk of storm surge flooding from hurricanes this year.  While storm surge has always been a significant, dangerous threat during hurricane season, it rose to the forefront of American consciousness during the 2012 hurricane season…" (Read more).

Louisiana Seafood: In wake of BP spill and river diversions, oysters show strain
By Benjamin Alexander-Bloch. The Times-Picayune (New Orleans, La.). July 14, 2013.
"It’s difficult to talk about Louisiana seafood these days without the BP oil spill working its way into the conversation. It wasn't that long ago, after all, that television screens were filled with high-def images of fouled coastal marsh and angry fishermen forlornly staring at their idled fleet…" (Read more).

Natural defences can sharply limit coastal damage
By Virginia Gewin. Nature News. July 14, 2013.
"Coastal forests, coral reefs, sand dunes and wetlands are just a few of the natural habitats that protect two-thirds of of the US coastline from hazards such as hurricane storm surges — shielding not only high-value properties in New York and California but also the poor in Texas and the elderly in Florida…" (Read more).

Leaking Gas Well Sealed Off Gulf Coast, Official Reports 
By The Associated Press. July 12, 2013.
"NEW ORLEANS — A gas well that started leaking several days ago in the Gulf of Mexico off the Louisiana coast has been sealed.  Eileen Angelico, a spokeswoman for the federal Bureau of Safety and Environmental Enforcement, said Friday that Energy Resource Technology LLC began the sealing…" (Read more).

Gulf Coast Economics: Fish and Wildlife Dollars Hammer Development
By Bob Marshall. Field & Stream: The Conservationist. July 12, 2013.
"Conservationists fighting to protect fish and wildlife habitat usually are up against the same opponent: Business development.  In the Midwest, that can mean agriculture. In the Northeast, it’s often sprawling business parks.  But down on the Gulf Coast, where protecting wetlands is critical for fisheries…" (Read more).

The Gulf of Mexico: We must protect this natural resource
By Bonnie Schumaker. The Sun Herald (Biloxi, Miss.). July 12, 2013.
"The 2010 Deepwater Horizon disaster made it clear that more effective oversight of offshore industry is absolutely necessary. As oil continued to spew from the Macondo wellhead that summer, citizens across the Gulf region urged Congress and the Obama administration…" (Read more).

FEMA announces program analyzing non-federal levees after criticism from Vitter, parish presidents
By Andrea Shaw. The Times-Picayune (New Orleans, La.). July 12, 2013.
"Five parishes that rely on their locally built levees for flood protection will participate in a FEMA pilot program aimed at setting new rules for determining risk in areas with non-federal systems. The Federal Emergency Management Agency, which does not recognize…" (Read more).

The short seasons, decreasing bag limits and failing management of the recreational red snapper fishery in the Gulf of Mexico has everyone that cares about the fishery upset.  States are demanding changes from the National Marine Fisheries Service (NMFS), lawsuits have been filed, contentious proposals are before the Gulf Council and Congress has started to [...]

Gov. Bobby Jindal praises construction of 3 barrier islands, while urging Congress to fund coastal restoration
By Mark Schleifstein. The Times-Picayune (New Orleans, La.). July 11, 2013.
"Gov. Bobby Jindal flew a group of parish and state officials and news reporters by helicopter to the southern edge of Plaquemines Parish on Thursday afternoon to praise state officials for the speedy construction of three barrier island restoration projects, and to demand that the federal…" (Read more).

Gulf oil spill settlement payment offers reach nearly $4B
By Harry Weber. FuelFix – The Houston Chronicle. July 11, 2013.
"As BP awaits an appeals court ruling over its challenge to the handling of its  Gulf oil spill class-action settlement, the administrator overseeing the program has offered another $400 million in payments to claimants in the last month alone, putting the total to date at nearly $4 billion…" (Read more).

Morganza report finalized
By Nikki Buskey. The Houma Courier (Houma, La.). July 11, 2013.
"The U.S. Army Corps of Engineers signed off Thursday on a final report updating Terrebonne Parish’s planned $13 billion federal levee system. Completion of the Chief’s Report wraps up a six-year detour for the federal Morganza-to-the-Gulf levee system, which was approved…" (Read more).

Go “Boots on the Ground” on Louisiana’s New Barrier Island
By Tyler Wing. WGNO (New Orleans, La.). July 11, 2013.
"Ripped to shreds by Katrina, protective barrier islands along Louisiana’s gulf coast are being rebuilt as we speak. WGNO  flys along with Governor Bobby Jindal who`s wants congress to speed up the process.  “We are here to say enough is enough,” says Governor Jindal along with parish leaders…" (Read more).

Leaner BP Blanches at Bill for Cleanup
By Clifford Krauss and Stanley Reed. The New York Times. July 11, 2013.
"HOUSTON — Three years after its disastrous oil rig accident in the Gulf of Mexico, BP has managed to strengthen its finances by divesting itself of less profitable operations, ramping up new oil production in the North Sea and Angola and reducing its exposure to volatile investments in Russia…" (Read more).

The Water Institute Of The Gulf Addressing Coastal Restoration Challenges On The Northshore
By George Bonnet. WWNO 89.9 (New Orleans, La.). July 11, 2013.
"An email sent recently to hundreds of Northshore inboxes contained a startling attachment. It was a picture of south Louisiana 80 years from now. The land loss projection map showed what could happen if the coastal erosion problem goes unchecked — the Northshore…" (Read more).

 

Draft rules that would require oil and gas drillers to scientifically establish the quality of aquifers around sites before drilling occurs — if done well — would be cheap insurance and pr Thu, 2013-07-11 Contact:  Lauren Whittenberg, 512-691-3437, lwhittenberg@edf.org Chris Merrill, 307-223-0071, chris@wyomingoutdoorcouncil.org Jon Goldstein, 505-603-8522, jgoldstein@edf.org Richard Garrett, 307-349-2423 richard@wyomingoutdoorcouncil.org

Draft rules that would require oil and gas drillers to scientifically establish the quality of aquifers around sites before drilling occurs — if done well — would be cheap insurance and provide “a first line of defense” for Wyoming citizens, two environmental groups say.

A coalition of groups, including the Wyoming Outdoor Council and the Environmental Defense Fund, submitted comments on Thursday on draft regulations establishing a statewide groundwater testing program in Wyoming.

"Governor Mead and his staff are showing great leadership in this effort,” said Richard Garrett, energy policy analyst with the Wyoming Outdoor Council. “The governor is right — and just about everyone agrees — collecting baseline water quality data prior to drilling, and following up with post completion sampling, are necessary steps. If done right, it'll protect everyone: landowners, Wyoming citizens, and industry. Our task now is to participate and do everything we can to help ensure that the final rule is strong, scientifically valid, and protects the people of Wyoming."

Jon Goldstein, senior energy policy manager with EDF, said “On the whole, the draft rule would create a strong, scientifically-valid groundwater testing program. Wyoming regulators and the governor should be praised for the solid, science-based approach outlined in this draft. If these rules stay strong, this program will give Wyoming residents important information about the quality of their water.”

A solid, scientifically-valid testing program will provide a first line of defense in detecting any groundwater contamination that may occur as a result of well development activities – including both surface and subsurface activities – in order to protect public health and quickly remediate any problems that arise.

The draft rule requires sampling from existing water wells within a half-mile radius of proposed oil or gas wells when submitting an application for a permit to drill. Subsequent sampling must be conducted in two future time windows.

The Wyoming draft rule’s statewide applicability, use of a radial approach without an artificial cap on the number of wells tested, ability to rely on the experienced technical staff of the Wyoming Oil and Gas Conservation Commission and their understanding of local hydrogeological conditions in reviewing and approving testing plans, and the use of a required Sampling and Analysis Protocol are of special importance.

In particular the groups’ note, Wyoming’s proposed SAP is currently the most detailed guidance provided by any state regarding how private wells should be sampled.

“Overall, Wyoming’s draft rule fixes the mistakes others have made and establishes a strong, scientifically-valid program without costing operators any more than what they will need to spend to comply with other, less valid approaches,” EDF’s Goldstein added.

While the groups offer overall support for the approach taken in the draft, they also recommend several improvements to the program. These include adding clear statements of program and sampling objectives, requiring that well logs and groundwater gradient survey information be reviewed whenever possible, adding a phrase to the liability clause to ensure no assumption is made either for or against liability, requiring baseline sampling reports be completed and submitted with all sampling results to help add explanation and context, and adding a clause requiring consideration of equal treatment of proximate landowners.

The WOGCC is expected to consider comments on the draft rule and decide on proceeding to a formal rulemaking process at a July 16 meeting.

# # #

Environmental Defense Fund (edf.org), a leading national nonprofit organization, creates transformational solutions to the most serious environmental problems. EDF links science, economics, law and innovative private-sector partnerships. See twitter.com/EDFEnergyEX; facebook.com/EnvDefenseFund; and http://blogs.edf.org/energyexchange/.

The Wyoming Outdoor Council (wyomingoutdoorcouncil.org) is Wyoming’s oldest independent conservation organization. The Wyoming Outdoor Council’s mission is to protect Wyoming’s environment and quality of life for future generations.

Jon Goldstein

Study urges spending on coastal restoration
By Janet McConnaughey. Associated Press. July 9, 2013.
"NEW ORLEANS — Wildlife tourism, from hunting and fishing to bird and dolphin watching, is a $19 billion-a-year business along the Gulf of Mexico, and states spending their settlement money from the 2010 BP oil spill should focus on restoring ecologically sensitive areas that keep guides, hotels and others working, a study says…" (Read more).

Congressmen Urge Funding for Coastal Restoration Projects
Press Release. Dredging Today. July 11, 2013.
"Congressmen Cedric Richmond, Steve Scalise, and Bill Cassidy spearheaded an effort to ensure critical funding for coastal restoration projects in Louisiana. The amendment to the Energy and Water Appropriations Bill passed unanimously…" (Read more).

Bird report highlights success of conservation on private land
By Nikki Buskey. The Houma Courier (Houma, La.). July 10, 2013.
"A new report on the state of birds in the United States says voluntary land conservation programs have had a positive impact on the nation's avian species.  'Sixty percent of U.S. land is in private hands, making the efforts of farmers, ranchers and landowners critical…'" (Read more).

US government assessment of BP oil spill 'will not account for damage'
By Suzanne Goldenburg. The Guardian (United Kingdom). July 11, 2013.
"The US government cannot hope to arrive at a full accounting of the environmental destruction caused by the BP oil disaster in the Gulf of Mexico using its current methods, an expert panel has said. A report from the National Research Council said the US government's efforts to put a price on damage…" (Read more).

La. 1 elevation efforts continue
By Xerxes Wilson. The Houma Courier (Houma, La.). July 10, 2013.
"Plans to further raise La. 1 in south Lafourche are moving forward with money now set aside by the state. This year’s state construction budget for public projects includes $40 million that will go toward raising La. 1 into the safety of south Lafourche’s levee system…" (Read more).

Louisiana Gas Leak: Crews Work To Stop Flow From Talos Energy Well
By Janet McConnaughey. Associated Press. July 10, 2013.
"NEW ORLEANS — Crews worked Wednesday to seal an old oil and gas well off the Louisiana coast that began leaking during work to plug it permanently.  Eileen Angelico, a spokeswoman for the Bureau of Safety and Environmental Enforcement, said the bureau is reviewing plans…" (Read more).

BP Appeals Oil Spill Settlement Agreement Over Damage Claims
By Judy Woodruff. PBS Newshour. July 9, 2013.
"BP's battle in the Gulf Coast over economic damages from the big oil spill of 2010, one of the worst environmental accidents in the country's history.  Last year, the oil giant agreed to an uncapped financial settlement following the disaster in the Gulf of Mexico…" (Read more).

 

By Kate Zerrenner

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

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

Connection between energy and water

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

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

Need for efficiency

Source: NY Times

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

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

Policy

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

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

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

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

By Kate Zerrenner

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

Connection between energy and water

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

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

Need for efficiency

Source: NY Times

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

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

Policy

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

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

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

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

By Elena Craft, PhD

Last week, the U.S. Environmental Protection Agency (EPA) collected final comments on the proposed Tier 3 vehicle emission and fuel standards. EPA is expected to finalize the standards by the end of the year, enabling automakers to gear up to meet the standards. The anticipated standards, which go into effect in 2017, will reduce the amount of sulfur in U.S. gasoline and tighten emission controls on new passenger vehicles going forward.

These standards will reduce the amount of sulfur in U.S. gasoline and tighten emission controls on new passenger vehicles going forward. With over 19 million cars and trucks on the road, Texas stands to benefit a great deal from the new vehicle regulations.

The American Lung Association’s (ALA’s) 2013 State of the Air report revealed the grim state of air quality in the Lone Star State, placing both Houston and Dallas in the top 10 most ozone-polluted cities in the country. In total, 15 Texas counties received a grade of “F” for ozone pollution. Despite these findings, we believe that Texas has the potential to reduce air pollution throughout the state, and that the EPA’s proposed Tier 3 vehicle emission rules will help.

The ALA’s primary recommendation to address excessive air pollution comes in the form of new regulations on vehicle tailpipe emissions. Unlike power plants and larger industrial facilities, tailpipes release their emissions at ground level in densely populated areas. Thus, busy roadways are an especially hazardous source of air pollution. Many roadways stand as a round-the-clock source of nitrogen oxides (NOx), volatile organic compounds (VOCs), carbon monoxide and particulate matter. This puts those who live or work near highways and expressways at greater risk.

Click to enlarge

If you’ve been to Houston, you know that an unsettling number of Houston residents live or work near some of the busiest highways in the United States. This includes students at dozens of primary and secondary schools located within 200 meters of major roads in the Houston metro area (see the map on the left). In many ways, these students are at greater risk for respiratory problems caused by excess tailpipe emissions. Airborne pollutants from roadways contribute to thousands of asthma attacks and other emergency room visits each year—not to mention 1.8 million missed school days and work days. On top of that, scientists are finding new links between air pollution and ailments, such as heart disease, cancer and even autism.

The science behind the dangers of tailpipe pollution is clear. Now, we have effective policy in the EPA’s Tier 3 standards to reduce the harm caused by these emissions. The new standards will reduce non-methane organic gases and nitrogen oxides released from light-duty vehicles by approximately 80 percent. At the same time, the standards will reduce per-vehicle particulate matter emissions by 70 percent. The standards will also place new limits on gasoline sulfur content, bringing national gasoline standards to the levels already in place in California, Europe, Japan, South Korea, and several other countries. Added to these benefits, the EPA projects that Texas will see some of the greatest ozone reductions of any state once the rules are finalized.

Yet another benefit is that the Tier 3 standards are among the most highly cost-effective air quality control measures currently available. The new regulations on gasoline sulfur content would cost consumers just about one penny per gallon. New emissions controls required to meet tailpipe standards would cost about $130 per vehicle and would provide between $8 and $23 billion in annual health benefits by 2030.

In absence of any effective standards on tailpipe emissions from our state regulators, Texans should embrace the new standards proposed by the EPA. The new standards were carefully crafted through an engaged stakeholder process, including domestic and international automobile companies, to provide the greatest benefit for Americans at least cost. The last time the EPA laid out new tailpipe emissions regulations was in 2000. It’s time for us to modernize vehicle standards and improve the health of all Americans, Texans included.

 

Louisiana, Gulf Coast wildlife tourism means billions of dollars, thousands of jobs, study says
By Mark Schleifstein. The Times-Picayune (New Orleans, La.). July 9, 2013.
"Wildlife tourism in the five states that border the Gulf of Mexico — including wildlife watching and recreational fishing and hunting — is responsible for 2.6 million jobs, $19.4 billion in annual spending and $5.3 billion annually in federal, state and local tax revenue, according to a new report released Tuesday…" (Read more).

The RESTORE Act, one year later
By Leigh Isaacson. WVUE – Fox 8 News (New Orleans, La.). July 9, 2013.
"Terrebonne Parish, La. — Some Louisiana restoration projects are nearly shovel-ready, but the RESTORE Act money isn't flowing in yet. The RESTORE Act has been law for one year, and it directs 80 percent of penalty money from civil trials related to the BP oil spill to restoration projects in the Gulf states…" (Watch news report).

Natural gas leaking from well off Louisiana coast
The Associated Press. USA Today. July 9, 2013.
"NEW ORLEANS (AP) — Natural gas leaked Tuesday from a well at a platform producing oil and gas in the Gulf of Mexico about 75 miles off the Louisiana coast after a crew working to temporarily plug the well lost control of it, the Coast Guard said…" (Read more).

Editorial: Preserving our paradise sound investment for state
By American Press Editorial Board (Lake Charles, La.). July 9, 2013.
"A recently completed study indicates that the wildlife tourism industry has an annual $19 billion impact on Louisiana and the other four Gulf of Mexico states.  The ‘‘Wildlife Tourism and the Gulf Coast Economy’’ report, conducted by Datu Research…" (Read more).

By the Numbers: The Oil Spill and BP's Legal Troubles
By Murrey Jacobson. PBS Newshour. July 9, 2013.
"The Gulf Oil Spill of 2010 captured the world's attention with the scale of its destruction. It polluted the waters of the Gulf of Mexico with millions of barrels of oil; shut down businesses, fisheries and beaches; and fouled marshes and wetlands. Eleven men were killed when the Macondo Well blew out some 45 miles off the coast of Louisiana…" (Read more).

Lake Boudreaux freshwater reintroduction moves forward
By Nikki Buskey. The Houma Courier (Houma, La.). July 8, 2013.
"A $25.7 million project that aims to reintroduce fresh water to the Lake Boudreaux basin is moving forward, according to local and federal officials. The long-stalled Lake Boudreaux freshwater reintroduction project would funnel fresh water from the Houma Navigation Canal into Lake Boudreaux…" (Read more).

BP, plaintiffs' lawyers argue before 5th Circuit on challenge over oil spill payments
By Richard Thompson. The Times-Picayune (New Orleans, La.). July 8, 2013.
"An attorney for BP told an appellate court panel Monday that a court-appointed claims administrator of a multi-billion-dollar settlement with Gulf Coast businesses that lost money in the 2010 Deepwater Horizon disaster is paying out 'fictitious, exaggerated, and excessive awards…'" (Read more).

PRESS RELEASE

Contacts:
Molly Moore, Sanderson Strategies Group, 202.682.3700, molly@sandersonstrategies.com
Elizabeth Skree, Environmental Defense Fund, 202.553.2543, eskree@edf.org

 

Gulf Tourism Depends on a Healthy Gulf

New report shows wildlife tourism is central to Gulf Coast economy

(New Orleans—July 9, 2013) The coastal environment of the Gulf of Mexico supports a $19 billion annual wildlife tourism industry that is highly dependent on critical investments in coastal environmental restoration, according to a survey released today by Datu Research LLC.

“Wildlife Tourism and the Gulf Coast Economy” concludes that wildlife tourism is extremely valuable to the Gulf Coast economy and relies heavily on the health of the endangered Gulf Coast ecosystem in the five states of Louisiana, Florida, Texas, Alabama and Mississippi. Wildlife tourism includes recreational fishing, hunting and wildlife watching.

Key findings of the report show that wildlife tourism:

• Generates more than $19 billion in annual spending.
• Attracts 20 million participants annually across the five Gulf Coast states.
• Delivers $5.3 billion annually in federal, state and tax revenues.

The study also found tourism jobs can account for 20-36 percent of all private jobs in coastal counties and parishes that are particularly dependent on wildlife activities. Those 53 counties and parishes have more than 25,000 tourism-related businesses and nearly 500,000 associated jobs.

The study reported that all forms of tourism generate 2.6 million jobs in the Gulf states, nearly five times the number of jobs provided by the region’s other three largest resource-based industries: commercial fishing, oil and gas, and shipping.

“With so many outdoor adventure opportunities, tourism is a critical industry to our coastal parishes,” Louisiana Lt. Gov. Jay Dardenne said. “Sportsman’s Paradise is more than our state’s nickname. If Louisiana is to remain the Sportsman’s Paradise, we have to ensure that funds Louisiana receives as a result of the Deepwater Horizon spill are properly and wisely spent preserving our paradise.”

Lt. Gov. Dardenne will speak at a press conference Tuesday, July 9 in New Orleans along with Billy Nungesser, president, Plaquemines Parish; Charlotte Randolph, president, Lafourche Parish; John F. Young, Jr., president, Jefferson Parish; Capt. Ryan Lambert, owner, Cajun Fishing Adventures; Mark Romig, president, New Orleans Tourism Marketing Corporation; Alon Shaya, executive chef, Domenica, Besh Restaurant Group; and Marcy Lowe, president, Datu Research LLC.

The study’s findings underscore the direct connection between the health of the ecosystem and the economic health of the Gulf region and the urgency for using the pending influx of monies from the RESTORE Act and other payments resulting from the 2010 Deepwater Horizon oil spill to properly and effectively restore the fragile Gulf Coast ecosystems.

“The conservation solutions that last are the ones that make economic sense and consider the needs of local communities,” said Scott Burns, director of the environment program at the Walton Family Foundation, which helped fund the survey. “This study connects the dots between a healthy Gulf environment, abundant wildlife and the good jobs that depend on tourism. This report adds to the growing evidence that investing in real restoration in the Gulf is the best way to create jobs and build economic prosperity across the region.”

Datu Research LLC is an economic research firm whose principals were part of the Duke University Center on Globalization, Governance & Competitiveness. They have previously released three analyses of supply chains associated with the work of coastal restoration, showing that more than 400 businesses in 36 states would benefit from such work.

This study was funded by Environmental Defense Fund with support from the Walton Family Foundation.

Part II: Supporting comments

Comments from participants in release of study: Wildlife Tourism and the Gulf Coast Economy

John Young, president, Jefferson Parish: “This study further supports the direct link between a healthy coastal environment and a robust economy which depends on a $19 billion wildlife tourism industry. The well-being and continued growth of our coastal communities depend on the health of the Gulf, restoring and strengthening our fragile ecosystems, and promoting a wildlife tourism industry which can thrive, not only in Jefferson Parish but in all Gulf Coast states.”

Billy Nungesser, president, Plaquemines Parish: “Plaquemines Parish and Louisiana are the nation’s premier delta coastline. We are strategically positioned as the fishing capital of the world, the sportsmen’s paradise state and the seafood capital of the United States, and these factors which make Plaquemines and Louisiana unique depend on the health of our coast.”

Michael Hecht, president & CEO, Greater New Orleans, Inc.:  “Tourism overall, including wildlife tourism, provides 2.6 million jobs across the Gulf States – and many of these are with small businesses. To protect this vital economic base, as well as other important coastal industries, we must prioritize large-scale coastal restoration projects that will ensure a stable coast and healthy environment.”

Mark Romig, president,  New Orleans Tourism Marketing Corporation: “New Orleans attracts the experiential discover type of tourist, one who enjoys using the city as a base to go out and explore any authentic and unique aspects of the city and region, including the natural world. For the many businesses in this region, the need to restore and preserve our coastal wetlands is not optional; it’s an urgent economic necessity.”

Capt. Ryan Lambert, owner, Cajun Fishing Adventures: “I’ve grown up loving and making a living from the waters of the Louisiana coast and for more than 30 years, my business has been taking people fishing in those waters. But every year, as I see places disappearing from the map, I fear I may be part of the last generation to live off the water.”

Ralph Brennan, president, Ralph Brennan Restaurant Group: “Family restaurants like mine depend on a healthy Gulf Coast for the fresh seafood that has made New Orleans the culinary capital of the United States. The money states are beginning to receive to repair the damages from the Deepwater Horizon spill are our best – and may be our last real chance – to reverse decades of mistakes.”

Marcy Lowe, president, Datu Research LLC.: “This study shows the vital connection between the health of the ecosystem and the economic health of the Gulf region. Wildlife tourism is a major contributor to the Gulf Coast economy, but it’s very survival depends on the restoration of an endangered and irreplaceable ecosystem.”

Part III: Key study findings

Report: Wildlife Tourism and the Gulf Coast Economy

Key findings for the Gulf region

“Wildlife Tourism and the Gulf Coast Economy,” a survey produced by Datu Research LLC, finds that in the five Gulf Coast states:

• Tourism generates 2.6 million jobs, nearly five times the number of jobs created by the region’s other three largest resource-based industries combined: commercial fishing, oil and gas, and shipping.
• In Gulf Coast coastal counties and parishes where economies are particularly dependent on tourism, 20-36 percent of all private sector employment is tourism-related.
• Wildlife tourism, which includes wildlife watching, recreational fishing and hunting, generates more than $19 billion in annual spending.
• Wildlife tourism generates $5.3 billion annually in federal, state and local tax revenues, divided roughly equally between local and state tax revenues and federal revenues. In 2011, Gulf Coast state and local governments received $2.5 billion and the federal government $2.8 billion from wildlife tourism. Recreational fishing generates the highest amount of tax revenue at $2.2 billion followed by $2 billion from wildlife watching and $1.2 billion from hunting.
• Wildlife tourism attracts 20 million participants annually across the five Gulf Coast states. The wildlife tourism industry consists not only of wildlife guide businesses that directly serve wildlife tourists, but also the lodging and dining establishments where they eat and sleep.
• Gulf Coast tourism – and wildlife tourism in particular – is highly dependent on a healthy coastal environment.
• More than 11,000 lodging and dining establishments and 1,100 guide and outfitters businesses create business networks that depend on each other for referrals. In a survey of over 500 guide and outfitter businesses, about 40 percent of respondents said clients ask them for hotel recommendations and 55 percent said clients request restaurant recommendations. Likewise, more than 60 percent of guide businesses receive clients based on recommendations from hotels and restaurants.
• Guide and outfitting operations represent a strong network of small businesses that have a large impact on local tourism. More than 86 percent of these businesses have one to five employees, and nearly 60 percent host more than 200 visitors per year, with many hosting several thousand.

###

 

Gulf Tourism Depends on a Healthy Gulf
Press Release. The Wall Street Journal. July 9, 2013.
"NEW ORLEANS, July 9, 2013 /PRNewswire-USNewswire/ — The coastal environment of the Gulf of Mexico supports a $19 billion annual wildlife tourism industry that is highly dependent on critical investments in coastal environmental restoration, according to a survey released today by Datu Research LLC…" (Read more).

As hurricane season nears peak, battle rages over how to rebuild coastal Louisiana
By John Snell. WVUE – Fox 8 News (New Orleans, La.). July 8, 2013.
"East Plaquemines Parish, La. — Charter boat captain Ryan Lambert puts the loss of 1,900 sq. miles of coastal Louisiana into perspective, pointing out it's like losing three Lake Pontchartrains. Lambert, who fiercely defends the state's plans to rebuild parts of coastal Louisiana, notes, "We have lost our protection…" (Read more).

Justice, Louisiana Style
By Joe Nocera. The New York Times. July 8, 2013.
"You can actually pinpoint the moment when the oil company BP began to get hosed in Louisiana: March 2012.  By then, BP had paid out around $6.3 billion to some 220,000 people and businesses in the Gulf Coast region for damages suffered as a result of the 2010 oil spill…" (Read more).

Coastal restoration creates Plaquemines marshes
By Bill Capo. WWLTV (New Orleans, La.). July 8, 2013.
"BELLE CHASSE, La. — It's a trip down tiny, twisting bayous into the heart of Nature's beauty: tall grass, flocks of birds, huge hyacinths, even cows grazing. "Nobody ever comes on the good side," said Captain Ryan Lambert of Cajun Fishing Adventures. "Everybody always takes you to the bad side…" (Read more).

Court hears BP leak challenge
By Kevin McGill. The Associated Press. July 8, 2013.
"NEW ORLEANS — BP PLC is being forced to pay inflated and even “fictitious” claims to businesses because of the way a court-appointed administrator is making payments from a legal settlement following the 2010 oil leak in the Gulf of Mexico, an attorney for the oil giant said Monday…" (Read more).

New oyster shell recycling program announced
By Terri Sercovich. The Plaquemines Gazette (Plaquemines Parish, La.). July 8, 2013.
"The Coalition to Restore Coastal Louisiana (CRCL) and Shell Oil Company are proud to announce the creation of the first oyster shell recycling program in Louisiana. The Louisiana Oyster Shell Recycling and Reef Restoration Program, to be managed by CRCL, is made possible by a $1 million philanthropic gift from Shell Oil Company…" (Read more).

 

By Elena Craft, PhD

Source: EPA

June was a big month for the climate, and I’m not just talking about President Obama’s landmark speech on climate change. In a decision that could affect the lives of 240 million people across the eastern half of the U.S., the Supreme Court announced that it would review a lower court decision that overturned the Environmental Protection Agency’s (EPA’s) Cross-State Air Pollution Rule. See our earlier post here. The Cross-State Rule was enacted by the EPA under the “good neighbor” provision of the Clean Air Act. In July of 2011, the EPA finalized the rule, requiring twenty-eight eastern states to reduce power plant emissions that contribute to pollution from ozone and fine particulate matter in other states. The rule is meant to ensure that the emissions from one state’s power plants do not cause harmful pollution levels in neighboring states in the form of ozone and particulate pollution —otherwise known as soot and smog.

The Supreme Court’s decision to review the lower court’s ruling is especially significant to Texas. Opponents of the clean air standards, including our own Attorney General Greg Abbott, sued to block them. Their chief concern: that the Cross-State Air Pollution Rule might affect Texas’ dirtiest coal-fired power plants. In August of last year, a deeply divided three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit vacated and remanded the Cross-State Rule to EPA.

The state government’s effort to pin the Texas Energy Crunch on the EPA puts the health of Texas and the nation at risk without offering any long-term solutions. The Cross-State Rule would reduce sulfur dioxide levels from eastern power plants by 73%, and nitrogen oxide levels by 54% from 2005 levels. These enormous emissions reductions would prevent 400,000 asthma attacks each year—and save up to 34,000 lives annually. And provide up to $280 billion in annual net health benefits. Despite these substantial health benefits, the State of Texas challenged the rule to prevent a handful of coal plants from switching to low-sulfur coal, increasing scrubber efficiency, or installing readily-available pollution-control technology.

In March, EDF joined the American Lung Association, National Resources Defense Council, Sierra Club, and the Clean Air Council in petitioning the Supreme Court to review the lower court’s decision. EPA also filed a petition, and several states and cities that are adversely affected by interstate air pollution, as well as two power companies, filed briefs supporting the petitions. EDF and Texas citizens concerned about public health applaud the Supreme Court’s decision to reconsider the Cross-State Air Pollution Rule in response to our petitions. Texas has been criticized before about not being a good neighbor, especially with regard to emissions from power plants floating into nearby Oklahoma. We are pleased to announce that the Supreme Court will hear the case later this year. We hope that the court affirms EPA’s right to limit—as it did with the Cross-State Rule—harmful interstate air pollution that affects all Americans. In doing so, the Supreme Court will hasten the transition to a cleaner electricity system that guards Americans from dangerous air pollution.

Senators Mark Warner and Joe Manchin have introduced a cutting-edge piece of legislation that would engage states in a friendly competition for increasing energy efficiency. C4.

By Scott Hofmeister

Source: EnergyRM

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

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

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

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

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

Here's how it works

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

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

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

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

Is this model going to change things?                                                                 

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

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