An Ignoble Experiment

2. Organizations implore EPA to reconsider NSPS

Most Americans are at least somewhat worried that proposed Environmental Protection Agency (EPA) regulations for power plant emissions will lead to higher electricity prices. According to an online survey of 2,058 adults, conducted by Harris Poll on behalf of the National Mining Association (NMA), this concern is held by 76 percent of respondents; concern is greatest, at 88 percent, among retirees and those with fixed incomes who are most affected by cost increases.

Credit: Jon Zander/Wikimedia Commons

The winter price surge has had an impact on the finances of all households, not just those who are retired on a fixed income. Of the 76 percent concerned about the impact of EPA regulations, 56 percent reported that their day-to-day lives were impacted by higher bills this past winter. Those surveyed said the impacts included setting thermostats to lower than normal, comfortable levels (32 percent); cutting back on leisure activities due to having less disposable income (28 percent); and 19 percent reported a limited ability to buy groceries and pay for healthcare, which could suggest that lower-income households have to choose between heating their homes and feeding their families.

According to the survey, 70 percent of Americans are at least somewhat concerned that new EPA regulations, which would regulate, among other things, coal power plant emissions, will also lead to black- and brown-outs this summer.

"Americans are rightfully concerned about higher electricity prices. If EPA continues to push forward with unrealistic standards for coal-based power plants, consumers' fears will become locked-in for the foreseeable future," Hal Quinn, NMA president and CEO, said. "The leap in electricity bills consumers saw this winter is as much the result of EPA's policies as it is the cold weather."

According to NMA data, proposed EPA regulations will result in more than 20 percent of the country's coal-powered electricity being removed from the energy grid by 2020 (if not sooner), which puts greater price pressure on natural gas and alternative fuels to fill the gap.

"Unfortunately less diversity of our power resources will endanger utilities' ability to provide a reliable supply of energy at the lowest cost to consumers," Quinn said. "This winter served as a warning about the importance of maintaining a diverse energy mix to fulfill the high demands we place on the nation's power supply."

For more:
- see this fact sheet

By Barbara Vergetis Lundin

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3. Clean energy supporters celebrate Obama's Year of Action

The American Public Power Association (APPA), among other industry organizations, has called on the U.S. Environmental Protection Agency (EPA) to withdraw its proposed New Source Performance Standards (NSPS) for carbon dioxide emissions from new fossil fuel-fired power plants. They contend that there are concerns that the proposed standard will effectively eliminate coal from the nation's future electricity generation sources, leading to risky over-reliance on natural gas, and increased costs for electric customers.

Credit: Matthew D. Wilson/Wikimedia Commons

APPA is urging the EPA to set the emissions standard at 1,950 lbs. CO2/MWh -- a rate attainable by the most advanced coal technology currently available. However, the expensive technology that the EPA would mandate has not been proven and none of the projects that EPA references as "demonstrated projects" are operating, APPA notes.

"Public power is having a tough time understanding how something can be demonstrated if it doesn't yet exist," said Public Power (APPA) President and CEO Sue Kelly. "Unfortunately, this new source mandate from EPA won't work in the real world given current technology."

Nothing in the record, the proposal, or the supporting technical documents substantiates EPA's claim that carbon capture and storage (CCS) is the Best System of Emissions Reduction (BSER) adequately demonstrated as required by the Clean Air Act, APPA contends. The EPA concedes that CCS is not in commercial use at any existing electric utility in the country, but relies on a handful of pilot projects to assert that CCS is BSER. The standard for coal relies on the ability of utilities to inject carbon dioxide into the ground and keep it there for hundreds of years -- a process that APPA says has not been adequately demonstrated.

APPA also contends that the standard for new combined cycle natural gas plants is too restrictive and that, due to the variable nature of many renewable resources, natural gas plants are often used to "fill in the gaps." This ramping up and down in support of renewables, such as wind and solar, increases carbon dioxide emissions as the natural gas plants age, APPA notes.

The American Coalition for Clean Coal Electricity (ACCCE) also has serious concerns they have express to EPA through recent comments.

"The proposed regulations set a dangerous precedent that erodes America's global leadership, undermines our ability to realize an estimated $1 trillion in economic benefits from carbon capture and storage (CCS) technology, and leaves the U.S. relying on a more narrow fuel source portfolio putting our economic and national security in jeopardy," said Laura Sheehan, senior vice president of communications for ACCCE.

In its formal comments, ACCCE states:

"ACCCE urges EPA to withdraw the proposal because it is profoundly flawed, biased against the future use of coal to generate electricity, and inconsistent with the president's 'all-of-the-above strategy' for domestic energy. The proposal effectively bans future coal-fueled power plants because it requires such plants to use CCS, a technology that is not commercially available or economically viable for coal fueled power plants. Banning new coal-fueled power plants is bad energy policy for our nation because it will result in an overreliance on natural gas for new base load generation -- a fuel that has a long history of price volatility and deliverability challenges."

The comments continue:

"If EPA does not withdraw the proposal, we ask that EPA re-propose the CO2 performance standard, with emissions levels based on new high-efficiency coal-fueled power plants without CCS. This is required by the Clean Air Act and will allow continued technology development."

The National Mining Association (NMA) is also calling for withdrawal of the proposal.

In a statement, NMA President and CEO Hal Quinn said: "By requiring unproven carbon capture and storage technology, EPA's rule effectively bans the construction of new, high-efficiency coal power plants with lower emissions using demonstrated, best-in-class technology. This denies the nation the opportunity to replace aging power plants and meet future load growth with reliable and affordable generating capacity."

For more:
- see this letter

Read more about: National Mining Association
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By Barbara Vergetis Lundin

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4. DVP receives extra $47M for offshore wind demo in hurricane threatened region

President Obama has announced that 2014 will be a year of action, beginning with more than 300 private and public sector commitments (from multifamily housing, homebuilder and home improvement companies; rural electric cooperatives; commercial retailers, food service, and hospitality companies; and the public sector, including state and city organizations, as well as school districts) to create jobs and cut carbon pollution by advancing solar deployment and energy efficiency.

President Barack Obama. Credit: Elizabeth Cromwell/Wikimedia Commons

These commitments amount to more than 850 MW of solar deployed, as well as energy efficiency investments that will lower bills for more than 1 billion square feet of buildings.

The administration has issued three proposed and four final energy efficiency standards, expanded the Better Buildings Challenge to include multifamily housing, and announced new funding for innovative energy efficiency projects in the U.S.

The White House projects that these actions, among others, will result in more than $26 billion in savings by government, consumers and businesses, while creating new jobs and reducing carbon pollution by 380 million metric tons. New executive actions are also intended to build a skilled solar workforce and strengthen building codes.

To enable a skilled workforce to support the growth of solar deployment, the Department of Energy's Solar Instructor Training Network will support training programs at community colleges across the country -- enabling 50,000 workers to enter the solar industry by 2020 -- building upon SunShot's existing Solar Instructor Training Network of nearly 400 community colleges in 49 states.

Building on the success of the Defense Department's efforts to purchase renewables, the General Services Administration is identifying opportunities for potential Federal Aggregated Solar Procurements in both the National Capital Region and Northern California. The effort seeks to bring together multiple federal agencies to capitalize on economies of scale with the goal of lower electricity bills for individual sites and increased renewable energy production -- while also reducing internal agency overhead costs by sharing procurement and project management resources.

The Treasury Department and IRS will soon clarify how certain investment rules relate to renewable energy installations. The new guidance will provide clarity regarding the treatment of renewable energy installations in real estate investment trusts (REIT), thereby helping to promote investment in the sector.

"With the price of renewable energy plummeting, there is no longer a question of choosing between an affordable energy option or a low-carbon option -- that choice is now one and the same. The initiatives President Obama announced will hasten America's transition to an affordable, low-carbon future," said Letha Tawney, senior associate, Charge Program, World Resources Institute. "Many utilities, businesses, and consumers are already enjoying the cost savings of cleaner energy."

Research from the Business Council for Sustainable Energy (BCSE) supports this statement.

"As highlighted in the 2014 edition of the Sustainable Energy in America Factbook, clean energy technologies in the energy efficiency, renewable energy and natural gas sectors are playing a larger role in the nation's energy production, distribution and use," said BCSE President Lisa Jacobson. "As we look forward, the diverse portfolio of clean energy options can meet the country's energy needs in an affordable and reliable manner, while creating jobs and lowering emissions."

For more:
- see this report

Read more about: Climate Action Plan
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By Barbara Vergetis Lundin

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5. Investors still harbor concerns over carbon disclosure

The U.S. Department of Energy (DOE) has awarded an additional $47 million to Dominion Virginia Power (DVP) for the construction of a 12 MW demonstration project. The project will consist of two 6 MW offshore wind turbines using innovative designs that will lower the cost and risk of future commercial scale offshore wind projects located in hurricane prone regions.

Artist rendering of offshore wind turbines. Credit: Dominion

Selected by the DOE in December 2012, DVP was initially chosen for a $4 million award supporting initial engineering, design, and permitting for a proposed offshore wind demonstration facility approximately 27 miles off the coast of Virginia.

An offshore wind project has yet to be built in an area subject to hurricanes. Part of the Virginia Offshore Wind Technology Advancement Project (VOWTAP) project is establishing the appropriate design standards to ensure that a project located in a hurricane-prone region can withstand such conditions. In addition, turbine suppliers are evaluating and considering hurricane conditions in their designs.

The VOWTAP team will continue development efforts and plans to seek Virginia State Corporation Commission approval to have the turbines generating electricity in 2017. The demonstration project will be directly adjacent to the commercial area that Dominion is leasing from the Bureau of Ocean Energy Management, and Dominion intends to apply the research and lessons learned from VOWTAP to the development of this commercial lease area.

For more:
- see this report

Read more about: U.S. Department of Energy
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By Barbara Vergetis Lundin

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