Category: Environmental Defense

By Michael Panfil

Late Wednesday night, the U.S. Department of Energy (DOE) released its so-called “study” on grid reliability.

Secretary Perry commissioned the report in this April memo, asking the DOE to investigate whether our electric grid’s reliability is threatened by the “erosion of critical baseload resources,” meaning coal and nuclear power plants. Perry took the unusual step of providing his own, pre-study conclusion, claiming that “baseload power is necessary to a well-functioning electric grid.”

His own report disagrees. It’s largely a backward-looking report that sometimes argues with itself, but comes, albeit grudgingly, to the same conclusion as every other recent study: the electric grid continues to operate reliably as uneconomic coal diminishes. Moreover, coal is declining because it can’t compete, and other resources are ensuring reliability at more affordable rates.

Perry seems undeterred by the evidence however, and the report’s accompanying cover letter and recommendations appear ready to double down on his pro-coal agenda. Here are three ways he tries to twist the facts in favor of dirty coal – a move that ignores more efficient, affordable, and innovative solutions and comes at a cost to Americans.

The misdirection spin

Perry’s letter accompanying the report included this nugget:

“It is apparent that in today’s competitive markets certain regulations and subsidies are having a large impact on the functioning of markets, and thereby challenging our power generation mix.”

Although Secretary Perry continues to blame “regulations and subsidies” for “challenging” the power generation mix (despite the mix becoming more, not less, diverse as more renewables come online), he would be well advised to read his own report if he’s looking for the real driver of coal retirements. The report he commissioned clearly states:

“The biggest contributor to coal and nuclear plant retirements has been the advantaged economics of natural gas-fired generation.”

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Secretary Perry continues to ignore the evidence on grid reliability, even his own
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This is hardly new information; extensive study has found that “decreases in natural gas prices have had a much larger impact on the profitability of conventional generators than the growth of renewable energy.” Coal is simply too costly to compete. And low natural gas prices, in addition to flat demand for electricity, are making energy more affordable.

The reliability spin

On reliability, again Perry’s letter takes one stance:

“The industry has experienced massive change in recent years, and government has failed to keep pace.”

And the report states the opposite:

Grid operators “are working hard to integrate growing levels of [renewable energy] through extensive study, deliberative planning, and careful operations and adjustments.”

Although Perry appears unaware of the thorough performance his own study references, grid operators are required by law to ensure reliable electricity at affordable rates. And indeed, government has kept pace. As the DOE report noted, the North American Electric Reliability Corporation’s most recent annual State of Reliability analysis concluded that the electric grid was reliable in 2016. And 2015. And 2014. And 2013. And although the DOE report neglected to mention it, this same State of Reliability analysis found that reliability has been increasing.

Certainly, more can and should be done. As the DOE report mentions, increasing the use of fast, flexible resources support a healthy grid. Unfortunately for Perry, coal can’t provide what’s needed, as the DOE report notes,

“For a power plant to make money today, it must be able to ramp up and down to coincide with the variable levels of renewable generation coming online. That makes combined cycle natural gas plants profitable…but coal plants have relatively high and fixed operating costs and are relatively inflexible.”

Coal, simply put, is too slow and old to respond nimbly.

The resiliency spin

Perry also attempts to pivot from focusing on reliability to resiliency, a lesser defined term:

“Customers should know that a resilient electric grid does come with a price.”

Like everything worth having, resiliency comes at a price, but that price should be cost-effective. But coal is part of the problem, not the solution to achieving affordable, resilient, and reliable electricity. Not only do coal-fired power plants unexpectedly break down more than any other resource, they have performed poorly during extreme weather events, as his report notes:

During extreme weather events in 2014 “many coal plants could not operate due to conveyor belts and coal piles freezing.”

“Forced outages,” meaning the instance when a power station is unavailable to produce power due to an unexpected breakdown, are higher for coal than any other resource – almost twice as high, in fact, as the next highest resource. Coal also needs twice as much scheduled maintenance, referred to as “planned outages,” as any other resource.

A terrible solution in search of a problem

When Secretary Perry originally requested the DOE report, he already knew the grid reliability answer he was looking for. Unfortunately for him, the final report – despite best efforts – only further illustrates why his pre-study pro-coal conclusion is wrong. The report’s recommendations and his letter double down on coal despite the evidence, no matter the cost to the American public; no matter the cost to human health and the environment; and no matter the cost to the well-being of the electric grid itself.

Now that the report is finally here, coal companies likely will continue complaining and seeking help for their uneconomic power plants. Meanwhile, America’s grid will continue to embrace new, innovative technology that builds a cleaner, reliable, affordable, and resilient energy system.

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By Aileen Nowlan

This week, the oil and gas giant Shell took a positive step toward addressing methane emissions. The company announced a new technology trial at a wellsite in Alberta, Canada, where it is piloting a specially designed laser to continuously monitor emissions of methane, a powerful pollutant known to leak from oil and gas equipment.

The move by Shell is a glimpse into the future and demonstrates growing market interest in smart, sensor-based methane detection technology. Shell’s project joins a similar field test already underway in Texas, operated by the Norwegian producer Statoil, and a California utility pilot run by Pacific Gas and Electric Company.

Each of these deployments is promising, but the ultimate test will be broad-scale adoption of innovations that generate actual methane reductions.

For industry, there is an incentive to move ahead. An estimated $30 billion of natural gas (which is largely methane) is wasted every year due to leaks and flaring from oil and gas operations worldwide. In addition, roughly 25 percent of global warming is driven by methane. Oil and gas methane emissions also contain chemicals that adversely affect public health.

For these reasons, methane is a problem that has caught the attention of regulators, investors and consumers alike. Advancing new technologies to enable the oil and gas industry to tackle this challenge more efficiently is key, even as companies use established tools to manage emissions now.

Collaborations Spark Methane Innovation

When you bring the right people to the table, innovative solutions will follow. Behind the Shell, Statoil and PG&E demonstration projects is a collaborative initiative, the Methane Detectors Challenge, begun by the Environmental Defense Fund four years ago. The project united eight oil and gas companies, R&D experts, and technology innovators in an effort to accelerate the development of next-generation methane detectors.

The formation of this project was motivated by a key insight: new technology to manage emissions needs to be created and deployed faster than ever. The Methane Detectors Challenge offers a unique resource to innovators – access to real facilities and collaboration with potential customers – which is essential to help entrepreneurs understand the market, demonstrate demand, and ultimately achieve economies of scale.

Both the Statoil and Shell pilots are using a solar-powered laser, created by Colorado-based Quanta3. The technology uses the Internet to provide real-time data analytics to wellsite managers via mobile devices or web portals.

Continuous Visibility, Faster Response

The oil and gas industry has a lot to gain from smart methane sensors that can prevent the loss of valuable product and reduce pollution.

Imagine a future where continuous leak detection systems allow operators to digitally monitor methane emissions occurring across thousands of sites. It’s a game-changer on the horizon. The burgeoning field of continuous methane monitoring offers a range of possibilities – including technologies capable of identifying emission spikes in real-time, allowing operators to cut mitigation time from months to days. Over time, smart sensors on wells may even help predict and prevent leaks and malfunctions before they occur.

Smart Methane Sensors Triggering New Market

The methane-sensing laser deployed by Shell and Statoil is one of many technologies in the emerging methane mitigation industry. In North America alone, more than 130 companies provide low-cost methane management technologies and services to oil and gas customers – a number likely to expand as innovators innovate, pollution requirements tighten, and producers increasingly appreciate the urgency of dealing with methane to maintain their social license to operate.

Smart automation technologies are already being used across the oil and gas industry to improve operating and field efficiencies. Continuous methane detection technology is the next logical step, which has the potential to provide significant economic, environmental and societal benefits.

The Shell pilot is a milestone to celebrate and we recognize the company for its early leadership. Now, we need governments and industry to show the determination needed to meet the methane challenge head-on. Sustained leadership is a prerequisite. But the keys to solving this problem are smart policies that incentivize ongoing innovation, and clear methane reduction goals—supported by technologies like continuous monitoring.

Image source: Shell/Ian Jackson

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By Jon Goldstein

Be Prepared. It’s not just the Boy Scout motto, it’s also the way most smart businesses try to operate. Better to anticipate future compliance issues today and bake them into your forward planning, than to be caught flatfooted tomorrow.

That is a big part of the reason major multinational oil and gas producers like ExxonMobil and Shell have said they are already following methane pollution rules finalized by the U.S. Environmental Protection Agency last year. Despite EPA Administrator Scott Pruitt’s best efforts to delay implementation of these rules, the courts have repeatedly ruled in favor of their speedy and complete implementation.

Most recently the DC Circuit last week rejected the latest attempt to undermine methane pollution limits for sources in the oil and gas sector and put those standards into full force and effect. It’s a decision that shows the wisdom of ExxonMobil’s and Shell’s strategy to lean in on regulatory compliance (and highlights the danger for other oil and gas producers that seem to be content dragging their feet and exposing their investors to compliance risk).

A second policy shift last week again underlines the benefits of proper prior preparation from the oil and gas industry. Last Wednesday, the Pruitt EPA withdrew its attempt to extend the deadline for compliance with the new, more protective, health based standard for ground-level ozone, commonly known as smog. This decision came one day after a coalition of 16 state Attorneys General joined a lawsuit challenging the delay (EDF and partners also challenged the delay). This means that EPA will now again have to meet an Oct. 1 deadline for determining which areas of the country fail to meet healthy air standards.

This ozone decision is terrific news for residents of areas that struggle with smog pollution tied to under-regulated oil and gas development. With this decision, EPA and states should now have the impetus to continue working on a more expedited timeline to reduce oil and gas pollution and restore healthy air.

It’s also a workable development for the forward thinking oil and gas companies since compliance with EPA’s methane rules will also help reduce the emissions that lead to the formation of unhealthy smog. By thinking ahead on methane, these producers have also put themselves in a better position to address smog problems.

There is a real danger for the oil and gas industry in this era of federal regulatory uncertainty. By pushing the pendulum so far toward deregulation, the worst actors in oil and gas may find themselves creating the very regulatory confusion they and their investors loathe. But you don’t have to take our word for it, as Kevin Book Managing Partner with ClearView Energy Partners recently told Pamela King of E&E News, “If the Trump administration veers more toward a ‘rip it up’ approach to rulemaking, the implication could be that uncertainty limits future investments.”

A stable regulatory environment, investment certainty and cleaner air. Addressing methane is the smart move for the oil and gas industry no matter how you look at it.

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By Matt Watson

Let me first make this important point: I’ve met and worked with a lot of folks in the oil and gas industry who are truly dedicated to making their operations as safe and clean as possible – people who care about the communities they live and work in and who take pride in the reputation of the companies they work for.

That said, I’ve always rolled my eyes a little when I see companies boast in sustainability reports that they comply with all applicable federal and state laws.  Really?  Not breaking the law is the high bar you’re shooting for?

But , as it turns out, one of the nation’s largest oil and gas trade associations is now saying that not only does it oppose common-sense laws requiring companies to reduce their emissions of methane and other harmful air pollution, it’s casting doubt on the extent to which companies should even comply.

The courts have repeatedly struck down efforts by the Trump administration and industry lobbyists to suspend these pollution standards.  And these rules are now in full legal effect.

Yet, in last week’s Inside EPA/Climate, Lee Fuller of the Independent Petroleum Association of America (IPAA) is quoted saying that the court’s rejection of these efforts makes compliance “an EPA enforcement issue, and we have had no guidance from EPA on the enforcement process that they will undertake.”

There should be no confusion here. Compliance is not an enforcement issue. Compliance is a legal obligation. Any company that refuses to meet that obligation is operating outside of the law, regardless of how EPA decides to approach enforcement.

Cries that companies haven’t had enough time to get ready for these standards also fail to pass the straight-face test.  These rules were issued in June 2016 and gave the industry a full year to start taking basic steps to detect and repair leaks – using cost-effective techniques that were pioneered in the states and which have long been in use by leading oil and gas operators.

In fact, operators were required to conduct their first leak surveys at well sites and compressor stations by June 3, 2017, several days before EPA’s unlawful 90-day suspension of the standards was published. Any company that wasn’t implementing these find-and-fix practices was breaking the law then.  And any company that isn’t complying since the court ruled the suspension illegal is violating the law now.

Some in industry have bemoaned the cost and confusion of “regulatory uncertainty” as the Trump EPA attempts to roll back basic public health and environmental protections and the courts time and time again rule those efforts illegal. Even now, EPA Administrator Scott Pruitt – backed by players who represent industry’s lowest common denominator – is attempting another delay of the methane rules, this time for two years.

If the industry is truly worried about regulatory uncertainty, trade groups and the industry lobby should stop litigating against these vital protections, cease sowing doubt about their legal effect and urge Scott Pruitt to abandon his lawless efforts to undermine them. The chaos they bemoan is entirely of their own making.

It’s worth noting that not everyone in industry is playing that game.  Leaders aren’t throwing up smoke screens and dodging the issue, they’re moving forward.  In fact, both Exxon and Shell confirmed their compliance with the operational requirements of the methane rules even before the 90-day stay had been overturned by the court. That’s the kind of responsible action that’s not only good for communities and the environment, it’s good for business – in terms of both bottom-line and reputation.

As I said at the outset, I know a lot of good people in the oil and gas world – people who don’t like the turn things have taken in D.C. and who know that any short-lived upside will pale against the backlash this industry will face at home and abroad if it’s seen as doing nothing but fighting against the shift to a cleaner, lower-carbon future.

It’s time for leaders in industry to step out from behind the shadows.  If the IPAA’s of the world are allowed to speak for everyone, companies that are trying to do the right thing will be tagged as retrograde thinkers right along with them. Instead of proving that they can evolve, adapt and be part of the solutions demanded by and owed to both their host communities and the planet, they’ll be riding a side-car to obsolescence.

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By Boma Brown-West

Walmart made two big moves last week to reinforce its commitment to leadership on safer chemicals. In 2013 Walmart sent a major demand signal for safer chemicals through the supply chain – issuing its Sustainable Chemistry Policy that covered 700 suppliers and over 90,000 cleaning, personal care, and cosmetics products on its shelves. The policy called for greater ingredient transparency and the reduction and elimination of chemicals harmful to human and environmental health, starting with eight prevalent chemicals of concern. Last week, Walmart released its latest results following up on these commitments and became the first retailer to participate in the Chemical Footprint Project annual survey (and the second major retailer to become a CFP signatory).

Walmart’s participation in the Chemical Footprint Project is a new indicator of its continued commitment to safer products

The Chemical Footprint Project is an initiative to benchmark how effectively companies are managing the chemicals in their products and supply chains. As I mentioned in a previous blog, it’s a way for investors and large purchasers to assess which firms are carrying heavy chemical risk and which ones are demonstrating competitive leadership in response to growing demand for safer products. So far, 24 companies, including Walmart, participate in this program – sending a clear signal to their suppliers, investors, and consumers that chemicals management is material to business success. Leaders identified in the CFP survey show that adopting and enforcing policies and measuring progress are key to reducing chemicals of concern.

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Walmart just made two big moves to reinforce its commitment to leadership on safer chemicals
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Progress on its ground-breaking policy

Also last week, Walmart quietly released its second annual Sustainable Chemistry Policy report, showing progress on its policy to eliminate priority chemicals. The chemicals of concern were drawn from 16 reputable regulatory and other authoritative lists – starting with eight High Priority Chemicals.

A chemical inventory is the first step in meeting a commitment to reduce your chemical footprint

Before jumping into the results, let’s review why this public disclosure of results is important. If you can’t measure something, you can’t improve it effectively. Walmart’s public reporting of quantitative data shows that it is serious about measuring its chemical footprint and being transparent about it. Walmart uses aggregate chemical inventory information across and within the departments under the policy to track progress.

Clear, meaningful metrics to track progress are the next step

Walmart tracks progress by looking at both weight volume – pounds of chemicals going out the door – and ubiquity – number of suppliers using these chemicals and the number of products in which they are using them. Both are important indicators of the prevalence of these chemicals in our world. Last year, Walmart achieved a 95% reduction in its High Priority Chemicals (HPCs) at Walmart US stores, equivalent to 23 million lbs. Since then, another 372,230 lbs have been removed – a 30% drop compared to the 2015 weight volume and a 96% drop since the policy began in 2014. Similar reductions continue to happen at Walmart’s Sam’s Club stores:  another 75,629 lbs have been eliminated, a 53% drop compared to the 2015 weight volume and a 68% drop compared to 2014. The second year results also reaffirm that a concerted effort to reduce a select set of priority chemicals, i.e. HPCs, drives results faster. Overall usage of Walmart Priority Chemicals continues to decrease (at Walmart US stores), but not nearly at the rate of that of Walmart HPCs.

Walmart’s public disclosure also shows that the company isn’t afraid to share where performance is lagging

Though overall weight volume of the HPCs continues to drop, their ubiquity continues to be a challenge. Both the number of products (i.e. UPCs) containing the HPCs and the number of suppliers using them continues to drop, at both Walmart US and Sam’s Club stores, but at a rate slower than the weight volume reduction.

The tools for success

In the end, Walmart continues to make progress against its policy as demonstrated through real data. Beyond data, what else contributes to Walmart‘s success?

• Clear targets
• Driving action through the business (where relationships between buyers and suppliers stress the importance of the commitments)
• Public accountability

With new notable commitments popping up from other major retailers like Target and CVS, we hope to see similar tracking and reporting of meaningful results both directly and through the Chemical Footprint Project survey.

FURTHER READING: See EDF’s previous analysis of Walmart’s first year results here and here.

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Boma Brown-West is Senior Manager of Consumer Health at EDF + Business. You can follow her on Twitter for insights and analysis on safer chemicals leadership in the supply chain and subscribe to her Behind the Label newsletter here.

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By Maddie Venn, clean energy communications intern

Recently, it seems like everyone is competing to become the next big thing in the energy sector. Whether it’s electric vehicles, smart grid technology, or energy storage, innovation continues to pop up left and right as we work to build a smarter, cleaner electric grid.

If innovation and technology spark your competitive drive, here’s your opportunity to dive in and join a community of engaged researchers working to solve some of our most pressing energy concerns. Pecan Street is hosting its second student research competition, inviting the best and the brightest to use the organization’s extensive collection of energy-use data to help solve real-world problems.

Open to all full-time graduate and undergraduate students and with prizes totaling $10,000, the competition aims to connect Pecan Street’s well-established dataset with the innovation of young minds. As the grid gets smarter, data can help people play a more active role in how their electricity is made, moved, and used. Competitions like Pecan Street’s will get us there faster.

What is Pecan Street?

Founded in Austin, Texas with the goal of better understanding the behavior of energy users, Pecan Street’s research network provides the most granular understanding of electricity and water use on the planet. The organization is collecting massive amounts of anonymized data in real time from thousands of houses across the nation, providing a near-constant stream of data on water and energy use.

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Research competition invites students to solve real-world energy problems
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The data collected at these different sites is compiled and made available to university researchers around the world interested in finding out more about the way people interact with the grid. With this information, the possibilities for discovery and innovation are seemingly endless, presenting both a challenge and an opportunity to all interested researchers.

The competition

To help spark some of these new and innovative ideas, competition organizers have provided a list of potential research topics that may be of interest to students, including:

• understanding the breakdown of energy use within the home,
• characterizing what impact young children have on grid flexibility, and
• understanding how charging electric vehicles at different times impacts the grid.

Each suggested topic can serve as a jumping off point for research that can have significant real world implications. While it is recommended that researchers utilize these suggested topics, it is not required.

In a previous competition, the student who won first prize used Pecan Street’s dataset to ease the pressure that residential air conditioning puts on the grid. Using a centralized control, the winner created a system to adjust thermostats and distribute use throughout the day. This cuts pollution by reducing the need for costly, dirty “peaker” plants, which operate only a few hours each year when demand is high (like on a hot summer afternoon when many people simultaneously crank up the AC).

The opportunity for discovery with this next round of competition grows even larger as Pecan Street expands its testbed and data collection.

Interested?

Visit Pecan Street’s website for more information and suggested research topics. All proposals must be submitted to info@pecanstreet.org by January 30, 2018 to be considered. Four finalists will be selected and flown to Austin to present their research at Pecan Street’s annual research conference, with the chance to win big and get involved with this up-and-coming research community.

Smart grid technology is already transforming our energy system, and there has never been a better time to get involved in this fast-growing industry. The future of the national grid may be impacted by the work that comes out of this competition, and you could be influential in the next wave of energy innovation.

This post originally appeared on Energy Exchange blog.

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