Monday, March 18, 2013

President Calls For New Clean Energy Security Trust

Mar 15: On Friday afternoon, President Obama delivered a speech at Argonne National Laboratory in Lemont, Illinois, connecting the dots between the American economy, jobs and energy policy. He said, "I'm here today to talk about what should be our top priority as a nation, and that's reigniting the true engine of America's economic growth -- a rising, thriving middle class and an economy built on innovation. . . So I chose Argonne National Lab because right now, few areas hold more promise for creating good jobs and growing our economy than how we use American energy. . ." He continued:
"After years of talking about it, we're finally poised to take control of our energy future. We produce more oil than we have in 15 years. We import less oil than we have in 20 years. We've doubled the amount of renewable energy that we generate from sources like wind and solar -- with tens of thousands of good jobs to show for it. We're producing more natural gas than we ever have before -- with hundreds of thousands of good jobs to show for it.  We supported the first new nuclear power plant in America since the 1970s. And we're sending less carbon pollution into the environment than we have in nearly 20 years. . .
 
"So think about this: Just a few years ago, the American auto industry was flat-lining.  Today, thanks in part to discoveries made right here at Argonne, some of the most high-tech, fuel-efficient, pretty spiffy cars in the world are once again designed, engineered and built here in the United States. And that's why we have to keep investing in scientific research. . .
 
"We can't afford to miss these opportunities while the rest of the world races forward. We have to seize these opportunities.  I want the next great job-creating breakthroughs -- whether it's in energy or nanotechnology or bioengineering -- I want those breakthroughs to be right here in the United States of America, creating American jobs and maintaining our technological lead. . .
 
"So we're making progress, but the only way to really break this cycle of spiking gas prices, the only way to break that cycle for good is to shift our cars entirely -- our cars and trucks -- off oil. That's why, in my State of the Union address, I called on Congress to set up an Energy Security Trust to fund research into new technologies that will help us reach that goal. Now, I'd like to take credit for this idea because it's a good idea, but I can't. Basically, my proposal builds off a proposal that was put forward by a non-partisan coalition that includes retired generals and admirals and leading CEOs.  And these leaders came together around a simple idea -- much of our energy is drawn from lands and waters that we, the public, own together. So what they've proposed is let's take some of our oil and gas revenues from public lands and put it towards research that will benefit the public so we can support American ingenuity without adding a dime to our deficit.
 
"So these leaders all say we need to fix this.  This is not a Democratic idea or a Republican idea. This is just a smart idea. And we should be taking their advice. Let's set up an Energy Security Trust that helps us free our families and our businesses from painful spikes in gas once and for all. Let's do that.  We can do it. We've done it before. . ."
        The White House released a fact sheet on what it called, "President Obama's Blueprint for a Clean and Secure Energy Future." The fact sheet indicates that the Obama Administration is calling on Congress to establish a new Energy Security Trust, which is designed to invest in breakthrough research that will make the technologies of the future cheaper and better -- technologies that will protect American families from spikes in gas prices and allow us to run our cars and trucks on electricity or homegrown fuels.
 
    The proposal would set aside $2 billion over 10 years and will support research into a range of cost-effective technologies -- like advanced vehicles that run on electricity, homegrown biofuels, fuel cells, and domestically produced natural gas. The mandatory funds would be set aside from royalty revenues generated by oil and gas development in Federal waters of the Outer Continental Shelf (OCS), already included in the administration's five year plan. These revenues are projected to increase over the next several years based on a combination of leasing, production, and price trends, with additional revenues potentially generated as a result of reforms being proposed in the FY 2014 Budget. The Administration says the Trust is paid for within the context of the overall budget.
 
    The fact sheet indicates that, "President Obama is committed to an 'all-of-the-above' approach that develops all American energy sources in a safe and responsible way and builds a clean and secure energy future." The President's Plan: Challenges Americans to double renewable electricity generation again by 2020; Directs the Interior Department to make energy project permitting more robust; Commits to safer production and cleaner electricity from natural gas; and supports a responsible nuclear waste strategy. The Plan also sets a goal to "cut net oil imports in half by the end of the decade" and commits to partnering with the private sector to "adopt natural gas and other alternative fuels in the Nation's trucking fleet."
 
    Additionally, the Plan establishes a new goal to double American energy productivity by 2030 including a "Energy Efficiency Race to the Top challenge"; Challenges States to Cut Energy Waste and Support Energy Efficiency and Modernize the Grid; Commits to build on the success of existing partnerships with the public and private sector to use energy wisely; and, Calls for sustained investments in technologies that promote maximum productivity of energy use and reduce waste.
 
    Finally, the Plan includes an international agenda that: Leads efforts through the Clean Energy Ministerial and other fora to promote energy efficiency and the development and deployment of clean energy; Works through the G20 and other fora toward the global phase out of inefficient fossil fuel subsidies; Promotes safe and responsible oil and natural gas development; Updates our international capabilities to strengthen energy security; and Supports American nuclear exports.
 
    The House Science, Space, and Technology Committee Chairman Lamar Smith (R-TX) and Energy Subcommittee Chairman Cynthia Lummis (R-WY) both commented. Rep. Smith said, "The President wants more money to fund more pet projects, but it is clear that his administration has not been responsible with the taxpayer dollars that have already been spent.  As we have seen time and again, much of this spending is duplicative and wasteful. We need to better prioritize federal spending. Federal dollars should be focused on research and development, not picking winners and losers, which is a role better left to the private sector." 

    Rep. Lummis said, "As Chairman of the Energy Subcommittee and co-chair of the Congressional Western Caucus, I have long advocated for unleashing the energy potential of the American West.  A recent report by the Institute for Energy research found that opening new areas on and offshore to energy production could yield the Federal government an additional $24 billion annually and help supply Americans with abundant and affordable domestic energy.  It is extremely disappointing that the President's proposal—which clearly recognizes the revenue potential of these vast resources—does not intend to open up any new lands to expanded production." 

    The American Petroleum Institute (API) Group Director for Upstream & Industry Operations Erik Milito issued a brief comment saying, "Eighty-three percent of federal lands and waters are still off limits to oil and natural gas development. By failing to unlock new areas for energy production, the president's plan misses a golden opportunity to create jobs and generate billions of dollars in government revenue."
 
    Michael Brune, executive director of the Sierra Club, issued a statement on the Plan saying, "Today, President Obama proposed a robust and compelling plan for furthering research into technologies that will help break our nation's dangerous dependence on oil. In addition to helping the U.S. lead the way on clean technology, these investments will also create new jobs, lower energy costs, and reduce the amount of dangerous carbon pollution that is wreaking havoc on our climate. "While we applaud the President for proposing new investments in clean transportation innovations such as advanced battery technology for electric vehicles, hydrogen fuel cells and alternative fuels, we urge him to focus on these clean technologies rather than fossil fuel options like natural gas vehicles. If the President is truly serious about moving beyond fossil fuels and fighting the climate crisis, natural gas is not the answer. The Sierra Club strongly opposes opening up new land to destructive drilling and fracking, as has been proposed in Illinois. The President should instead go all in on electric vehicles and clean energy sources like wind and solar, while boosting common sense climate solutions like energy efficiency."
 
    Environment America issued a release calling the President's Plan a "dirty plan for clean energy." They said, "President Obama's proposal promises to save the United States from its dependence on oil by deepening its dependence on oil. Today's plan fails to directly confront the key question on oil and transportation policy: Are we building a future in which we use more oil, or are we building a future in which we use less? Instead of promoting policies that trap us in a catch-22, President Obama should reject more drilling, reject the Keystone XL pipeline, and find sustainable sources of funding for clean energy research."   
 
    Access the full text of the President's Argonne speech (click here). Access the complete fact sheet with further details on all of the above items (click here). Access a release from the Republican leaders on the House Science Committee (click here). Access the statement from API (click here). Access the statement from Sierra Club (click here). Access a release from Environment America (click here). [#Energy]
 
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Posted by JPMcJ at 3/18/2013 03:25:00 PM 0 comments

Friday, March 15, 2013

DOI Findings On Shell's 2012 Arctic Exploration Operations

Mar 14: Outgoing Department of Interior (DOI) Secretary Ken Salazar announced the findings of a Departmental review of Shell's 2012 Arctic operations, which will help guide the conduct and oversight of future Arctic exploration. In January, Secretary Salazar directed a high-level review of Shell's 2012 offshore drilling program in the Beaufort and Chukchi Seas -- including the company's preparations for last year's drilling season and its maritime and emergency response operations -- to identify challenges and lessons learned. The review focused on Shell's inability to obtain certification of its containment vessel, the Arctic Challenger, on a timely basis; the deployment difficulty of the Arctic Challenger's containment dome; and serious marine transport issues associated with both of Shell's two drilling rigs, the Noble Discoverer and the Kulluk, including the grounding of the Kulluk off Kodiak Island during a towing operation. On February 27, 2013, Shell announced it has decided to pause its exploration drilling activity for 2013 in the Beaufort and Chukchi Seas to focus on preparation of equipment and plans before resuming its Arctic exploration program. [See WIMS 2/28/13].

    Secretary Salazar said, "Exploration in the Arctic is a key component of the President's all-of-the-above energy strategy, and is important to our understanding of the oil and gas potential in this frontier region. We have said all along that exploration in the challenging and sensitive environment of the Arctic must be done cautiously and subject to the highest safety and environmental standards. This assessment took a close look at Shell and the problems they encountered offshore Alaska last year, and makes important recommendations that Shell should follow as it resumes its Arctic program."

    The review team, led by Principal Deputy Assistant Secretary for Land and Minerals Management Tommy Beaudreau, included senior staff from several bureaus at DOI as well as other Federal agencies. The review team met with representatives from Shell as well as key contractors that Shell retained for work related to its Alaska operations, the State of Alaska, the Mayor of the North Slope Borough, and the Arctic Slope Regional Corporation. The review team also sought information from a broad range of other stakeholders and experts, including representatives from the oil and gas and maritime industries and conservation non-governmental organizations. The Department retained the international consulting firm PricewaterhouseCoopers LLP (PwC) to provide expertise and support in reviewing issues related to safety and operational management systems.

    The assessment found that Shell entered the 2012 drilling season without having finalized key components of its program, including its Arctic Challenger containment system, which put pressure on Shell's operations and schedule and limited Shell from drilling into oil-bearing zones last summer. Weaknesses in Shell's management of contractors on whom they relied for many critical aspects of its program -- including development of its containment system, emission controls to comply with air permits, and maritime operations -- led to many of the problems that the company experienced.

    Beaudreau said, "Shell simply did not maintain strong, direct oversight of some of its key contractors. Working in the Arctic requires thorough advance planning and preparation, rigorous management focus, a close watch over contractors, and reliance on experienced, specialized operators who are familiar with the uniquely challenging conditions of the Alaskan offshore. In some areas Shell performed well, but in other areas they did not, and Alaska's harsh environment was unforgiving."

     The report recommends that the company should submit to the Department a comprehensive, integrated plan describing every phase of its operation from preparations through demobilization. The report also recommends that Shell complete a full 3rd-party management system audit that will confirm that the company's management systems are appropriately tailored for Arctic conditions and that Shell has addressed the problems that it encountered during the 2012 drilling season.

    DOI indicates that the report also stresses the critical need for coordination -- across the Federal government and with State and local partners, as well as with companies, local communities and other stakeholders. It notes, as a success of the 2012 season, Shell's extensive efforts to communicate and minimize conflict with Alaska Native communities that rely on the ocean for subsistence use.

    Deputy Secretary of the Interior David Hayes, Chair of the Interagency President's Working Group on Domestic Energy Development and Permitting in Alaska said, "We have held Shell to very high standards specific to the Arctic, including the requirement for in-theater subsea containment systems capable of responding in the event of an emergency, and coordinating across the federal government to review and oversee Arctic exploration. The report confirms that we need to continue using a cautious, coordinated approach that adopts specialized practices for conducting drilling and related operations in the Arctic."

    In its conclusions, the report reinforces that an Arctic-specific model is necessary, and it recommends continuing work on safety and environmental practices appropriate for the Arctic. Shell's 2012 drilling program was subject to a number of Arctic-specific conditions and standards, such as requiring deployment of subsea containment systems as a prerequisite to drilling into hydrocarbon-bearing zones, limitations on the Chukchi Sea drilling season to provide time for open-water emergency response, a blackout on drilling activity during the subsistence hunts in the Beaufort Sea, and surrounding vessels with pre-laid boom during fuel transfers.

    Beaudreau said, "Our findings reinforce the importance of taking a regionally-specific approach to offshore oil and gas exploration the Arctic. We must recognize and account for the unique challenges of this region, which holds significant energy potential, but where issues like environmental and climate conditions, limited infrastructure, and the subsistence needs of North Slope communities demand specialized planning and consideration."

    In addition to Interior's report, the U.S. Coast Guard is undertaking a comprehensive marine casualty investigation regarding the recent grounding of the drill rig Kulluk. The Coast Guard also provided technical assistance for the Interior report. James Watson, Director of the Bureau of Safety and Environmental Enforcement said, "We thank the U.S. Coast Guard for their collaboration in support of our report, and look forward to reviewing their findings as well."

    U.S. Sen. Lisa Murkowski (R-AK) released a statement saying, "There's a history of safe drilling in Alaska's Arctic waters going back to the 1970s. While Shell's exploratory drilling program maintained that record of safety, they did experience problems with transportation and in other areas that need to be addressed before Shell proceeds. However, I want to review the full report to ensure that stricter oversight is not code for prohibiting access to our resources. Alaska's offshore resources represent one of our greatest opportunities to improve America's energy security, generate badly needed revenue without raising taxes, keep the trans-Alaska oil pipeline operational, and show the way for Arctic exploration around the world." The Senator indicated that the Beaufort and Chukchi seas are estimated to contain 27 billion barrels of oil and 132 trillion cubic feet of natural gas.
 
    Earthjustice President, Trip Van Noppen issued this statement calling the DOI review "disappointing." He said, "It took a season full of mishaps and near misses for the Administration to comprehend the uniqueness of the Arctic region and the conditions the oil industry will have to be able to endure. The report highlights that the industry is not ready to drill in the Arctic Ocean but offers little more than 'recommended undertakings' to address those problems. The report also fails to turn the lens on the Department's own failings in authorizing such an ill-prepared venture.
 
    "Ultimately, we believe this report should be a first step in a much broader effort to revisit the administration's position on drilling in the dangerous and sensitive waters of the Arctic Ocean. DOI should not make new decisions about whether and under what conditions to allow offshore drilling until it has completed a more thorough review. Our country's Arctic offshore oil and gas program was premature and it is imperative that the Administration re-evaluate important development decisions about the Arctic Ocean and the standards that govern those decisions. The initial operations were unprepared and unimpressive. The Arctic Ocean remains one of the most pristine and least understood portions of the planet. Alaska Native communities depend on the Arctic to meet their substantial subsistence food needs. A major oil spill would devastate Arctic marine and coastal resources as the vast majority of the oil could not be recovered."

    Access a release from DOI (click here). Access a copy of the 52-page assessment (click here). Access a release from Sen.Murkowski (click here). Access a release from Earthjustice (click here). [#Energy/OCS, #Energy/Arctic]

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Posted by JPMcJ at 3/15/2013 03:03:00 PM 0 comments

Thursday, March 14, 2013

Comments Wanted On Dems Draft Carbon-Pricing Legislation

Mar 12: Representative Henry Waxman (D-CA), Senator Sheldon Whitehouse (D-RI), Representative Earl Blumenauer (D-OR), and Senator Brian Schatz (D-HI) released draft carbon-pricing legislation and are soliciting feedback on it from stakeholders and the public. The legislation would establish the polluter pays principle for dangerous carbon pollution, requiring large emitters to pay for the pollution they emit.

    According to a release, the "discussion draft" released today (March 12) contains a new and straightforward approach to putting a price on carbon pollution. The nation's largest polluters would have to pay a fee for each ton of pollution they release. The legislation assigns responsibility for the assessment and collection of the carbon fees based upon the expertise that has already been developed by EPA and the Treasury Department. Under the discussion draft, EPA's database of reported emissions would determine the amount of pollution subject to the fee. The Treasury Department would be responsible for the collection and handling of the fees.

    Rep. Waxman said, "Putting a price on carbon could help solve two of the nation's biggest challenges at once: preventing climate change and reducing the budget deficit. There have been carbon tax proposals made by others. What's unique about this one is its novel design. We are seeking to craft a system in which each agency does what they are good at and that minimizes compliance burdens and administrative costs. Utilities, oil companies, and other major sources are already reporting their emissions to EPA. We build off of this existing program."

    Sen. Whitehouse said, "Putting a price on carbon is the best way to reduce carbon pollution and slow the effects of climate change. For far too long, carbon polluters have pushed the true cost of their pollution onto the American people in the form of dirty air, acidified water, and a changing climate. This framework is the beginning of a collaborative process to craft legislation that will reduce carbon pollution while also upholding an important principle: that all of the revenue generated through this carbon fee will be returned to the American people."   

    Specifically, the discussion draft outlines a legislative framework that would:

  • Establish a carbon pollution fee that applies to all six categories of greenhouse gases.
  • Require large carbon pollution sources to pay the fee for carbon pollution permits based on the quantities of carbon pollution reported by the sources under the EPA's Greenhouse Gas Reporting Rule.
  • Create a program to be jointly administered by the Department of the Treasury and EPA. EPA would implement and enforce emissions reporting under EPA's Greenhouse Gas Reporting Rule, and Treasury would assess, collect, and enforce the fee requirements at the point where carbon pollution is emitted or passed on to consumers, depending on the type of source.

    The Members indicate that the approach would: Drive significant carbon pollution reductions; Generate substantial revenue to be returned to the American people; and, Provide broad coverage of greenhouse gas emissions, while minimizing compliance and administrative burdens and utilizing each agency's area of expertise.

    The Members are soliciting comments on the discussion draft from stakeholders and the public. Although comments on any aspect of the draft are welcome, the Lawmakers are specifically requesting feedback on the following questions and requesting that comments be submitted no later than April 12, 2013:

1. What is the appropriate price per ton for polluters to pay?  The draft contains alternative prices of $15, $25, and $35 per ton for discussion purposes.
2. How much should the price per ton increase on an annual basis?  The draft contains a range of increases from 2% to 8% per year for discussion purposes.
3. What are the best ways to return the revenue to the American people?  The discussion draft proposes putting the revenue toward the following goals, and solicits comments on how to best accomplish each:  (1) mitigating energy costs for consumers, especially low-income consumers; (2) reducing the Federal deficit; (3) protecting jobs of workers at trade-vulnerable, energy intensive industries; (4) reducing the tax liability for individuals and businesses; and (5) investing in other activities to reduce carbon pollution and its effects.
4. How should the carbon fee program interact with state programs that address carbon pollution?

    Access a release from the Members with links to a 1-page summary; a section-by-section summary; a backgrounder; and the draft bill text  (click here). Submit comments to the following Email address: (click here). [#Climate, #Air/GHG]

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Posted by JPMcJ at 3/14/2013 02:46:00 PM 0 comments

Wednesday, March 13, 2013

GAO Report On Renewable Energy Development On Federal Lands

Mar 13: The U.S. Government Accountability Office (GAO) released a report entitled, Renewable Energy: Agencies Have Taken Steps Aimed at Improving the Permitting Process for Development on Federal Lands (GAO-13-189, Jan 18, 2013). The report was prepared at the request of Representative Edward Markey (D-MA), the Ranking Member on the House Committee on Natural Resources. GAO is not making any recommendations in the report. In commenting on a draft of this report, the Department of Agriculture concurred with its findings, while the Departments of Energy and the Interior had no comments.
 
    GAO indicates that concerns over reliance on imported oil and greenhouse gas (GHG) emissions from fossil fuel use have led to increased interest in producing electricity from renewable sources, including wind, solar, and geothermal energy. Because Federal lands, including those managed by the Departments of Agriculture and the Interior, encompass areas with high renewable energy potential, interest has increased in permitting such activity on those lands. Energy Policy Act of 2005 (EPAct 2005) includes several provisions intended to increase renewable energy development on Federal lands, including goals for approving renewable energy projects. GAO was asked to look at: (1) the status of renewable energy permitting on Federal land, including time frames for processing permits applied for since EPAct 2005; (2) actions Federal land management agencies have taken to facilitate renewable energy development on Federal land, particularly since the passage of EPAct 2005; and (3) factors affecting renewable energy development on Federal land. To conduct this work, GAO reviewed laws, regulations, and policies; interviewed agency and industry officials; and surveyed BLM staff responsible for processing applications for renewable energy permits on Federal lands.
 
    GAO found that since passage of the Energy Policy Act of 2005 (EPAct 2005), Federal land management agencies -- primarily the Department of the Interior's Bureau of Land Management (BLM) -- have received hundreds of applications for utility-scale renewable energy projects and authorized 25 projects: 7 wind, 10 solar, and 8 geothermal projects. Applications for the majority of projects were withdrawn by the applicants or denied by BLM because of insufficient information. Applications for about one-fourth of the projects are still pending with the agencies. Time frames for permitting wind and solar projects ranged from 1.5 to 4 years from receipt of the initial application to approval of the project, with time frames decreasing for applications submitted in later years. For geothermal projects, permitting time frames ranged from 1 to 4 years from receipt of the initial application to approval for construction. In all, for projects applied for since EPAct 2005, BLM has authorized projects with the capacity to generate a total of about 5,450 megawatts of electricity, contributing to the act's goal of approving projects capable of generating 10,000 megawatts of electricity on public lands by 2015.

    Federal land management agencies have taken several steps to foster renewable energy development on Federal lands since EPAct 2005. Specifically, these agencies have developed or revised policies aimed at, among other things, improving the renewable energy permitting process, formalized coordination within and across agencies and with state and local governments, and devoted increased resources to processing applications for renewable energy permits. One of BLM's most comprehensive actions was the completion of programmatic environmental impact statements for renewable energy development, intended to streamline the permitting process. The agencies also took steps to improve coordination through regularly established meetings and development of memorandums of understanding between federal and state agencies. They also added staff and increased funding for this development. For example, BLM tripled its staff devoted to processing wind and solar energy applications. To help ensure that its actions are achieving their intended purposes, BLM issued an instruction memorandum in December 2012 aimed at increasing the efficiency and effectiveness of its renewable energy permitting process.

    According to BLM respondents to a GAO questionnaire, industry representatives, and others GAO interviewed, many factors affect the pace of renewable energy development on Federal lands. Some of these factors are specifically tied to the agencies' permitting processes, primarily BLM's. For example, respondents cited effective coordination among the involved parties and the amount of resources the agency can devote to permitting as factors that facilitated the permitting process. On the other hand, they often cited problems with the quality of applications received as a factor that may hinder or slow the permitting process. Respondents also cited a number of factors outside of permitting agencies' control that can affect the pace of renewable energy development, such as access to transmission lines (which are often scarce in areas where renewable energy is abundant) and competition from electricity generated using conventional energy sources, such as natural gas.

    Access the complete 56-page report (click here). [#Energy/Renewable]
 
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Posted by JPMcJ at 3/13/2013 03:23:00 PM 0 comments

Tuesday, March 12, 2013

Major Differences Continue On Pros & Cons Of LNG Exports

Mar 12: The Center for International Environmental Law, Clean Water Action, Earthjustice, Earthworks, Environment America, Friends of the Earth, League of Conservation Voters, Sierra Club, and The Wilderness Society have sent a joint letter to the President strongly pushing for a "timeout on natural gas exports until critical national economic, environmental, and trade concerns are thoroughly analyzed and carefully addressed."

    The letter to the Obama Administration comes following the recent public comment period to the Department of Energy (DOE), who commissioned NERA Consulting to conduct a study of the impacts natural gas exports would have on the nation's economy [See WIMS 12/7/12]. DOE is currently reviewing proposals for 16 export facilities.  If all of these facilities were approved and developed, they would export a volume of gas equal to almost half of the natural gas currently produced in the US. Sierra Club and a number of allied groups also filed extensive technical comments on the NERA economic study, stating it is incomplete, extremely flawed, and favors the interests of dirty fuel investors over those of the majority of Americans.

    In the letter to the President, the groups highlighted shared concerns that natural gas exports will raise domestic energy prices, disproportionately harming the middle class and manufacturing, while further exacerbating the climate crisis and leading to more dirty and dangerous fracking and drilling on our nation's lands.  

    The groups indicated in a release that the expansion of drilling and fracking "will further pollute our air, water and put the health and safety of our communities at additional risk.  Expanded drilling will also substantially increase emissions of methane, which is a powerful climate disrupting pollutant that puts the public at risk of worsening climate change." They said in spite of the many environmental risks, however, DOE has failed to undertake a comprehensive analysis of the national environmental impacts that exports and increased natural gas production would create.
 
    In addition, they said the US is currently negotiating a new trade agreement, the Trans-Pacific Partnership (TPP), with ten nations across the Pacific Rim. Additional countries are considering joining the pact, including Japan--the world's largest natural gas importer. They said the agreement, in its current form, would leave the Administration unable to condition or deny export licenses to "hungry international gas markets" in TPP countries, even if those exports would harm public health and the US economy.
 
    In light of the risks and the deficiencies of the DOE's oversight and review process to date, the group letter urges the Obama Administration to thoroughly study and diligently address the economic, environmental, and trade aspects of gas exports before making any final decisions on  proposed export terminals.
 
    The concern about LNG exports is not limited to environmental groups. In December 2012, following DOE's release of the NERA report, Dow Chemical Company's chairman and chief executive officer Andrew Liveris issued a release saying, "The report issued by the DOE on liquefied natural gas (LNG) exports is flawed, misleading, and based on outdated, inaccurate and incomplete economic data. The report fails to give due consideration to the importance of manufacturing to the U.S. economy. Manufacturing is the largest user of natural gas in the U.S., and creates more jobs and more value to the U.S. economy from natural gas than any other sector. The value of every unit of energy used by the manufacturing sector is multiplied by as many as 20 times from the production of thousands of high value products though the value chain. Compare this to the 1-time value created by exporting energy as liquefied natural gas. Furthermore, for every manufacturing job created on the factory floor 5-8 more are created in the larger economy."

    Liveris continued, "The report also fails to consider the tremendous competitive advantage that affordable, abundant domestic natural gas offers to the nation. Instead, the report offers the baffling conclusion that the U.S. would be better off using its domestic natural gas advantage to fuel growth and jobs in other regions versus strengthening the U.S. economy through manufacturing and benefiting consumers with lower energy costs. Industry has announced over 100 capital investments representing over $90 billion in spending and millions of new jobs predicated on abundant and affordable natural gas, none of which were captured in this report. Unfortunately, policy makers have been given a flawed report that overlooks vital dynamics, including a manufacturing renaissance that is already underway and much needed by this country."

    Dow has joined a recently-formed group called America's Energy Advantage (AEA), whose members also include the American Public Gas Association, Alcoa Inc., Eastman Chemical, Nucor Corporation, and Celanese Corporation. Today (March 12, 2013), AEA released a report from Charles River Associates (CRA) which they said adds to the growing list of studies that warn against the dangers of unrestricted exports. AEA said DOE should use the to "overcome the rebuttable presumption for LNG exports created by the Natural Gas Act." DOE is required by the Natural Gas Act to determine if exports of LNG are in the public interest and these data from CRA are designed to help the Department make these decisions, and overcome the "rebuttable presumption" contained in the law.

    Peter Huntsman, President and CEO of Huntsman Corporation said, "The U.S. government must ensure that we can meet the present and rapidly growing future demand for natural gas in our country before we launch blindly into massive exports of LNG. The data in this report quite clearly indicates that our nation has much more to gain from using this abundant resource to manufacture value-added products, than from merely exporting this resource as LNG." AEA's position is counter to other major industry associations including the U.S. Chamber of Commerce and National Association of Manufacturers (NAM) who are actively supporting increased exports. On January 18, Dow Chemical Company withdrew its membership from NAM over the issue [See WIMS 1/22/13].
 
    The Chamber's President and CEO Thomas Donohue's said, "We are now in a position to export liquefied natural gas and coal, thus reducing our trade deficit and bringing billions of dollars into the United States. The abundance of affordable natural gas is attracting good manufacturing jobs back to America, particularly in the chemical and steel industries. All of this adds up to a lot of jobs, growth, improved national security, and more revenues for government." [See WIMS 1/16/13].    
 
    U.S. Representative Ed Markey (D-MA), Ranking Member of the Natural Resources Committee, has also questioned the NERA report and LNG exports in general. In December 2012, he released his own report and said in a letter to DOE, "I was disappointed to find fundamental flaws with the study that I fear may have led to conclusions that severely underestimate the negative impacts of large-scale natural gas exporting. Given the important role this study may play in determining U.S. natural gas export policy, I strongly urge that the study's methodology be reevaluated in some key areas, that the most recent projection data available be utilized in the model, and that the model be re-run and re-analyzed." He outlined what he called "major flaws." Rep. Markey introduced legislation in the 112th session, H.R4024, to put the brakes on these applications while a large-scale export policy is analyzed, as well as H.R.4025 to restrict the export of natural gas produced from America's public lands.
 
    On January 24, in an effort lead by Representatives Bill Johnson (R-Marietta, OH) and Tim Ryan (D-Youngstown, OH), 110 House Members (89 Republicans and 21 Democrats), sent a letter to DOE Secretary Steven Chu, urging him to allow America to be a major player on the world energy market by opening America's vast reserves of natural gas to the global energy marketplace. The Representatives said, ". . .we cannot rest until every person who needs a job has one. Exporting natural gas is a chance to provide that employment -- and is a promising development that we cannot afford to miss." [See WIMS 1/28/13].
 
    Access a release from the groups with links to the letter and technical comments (click here). Access more information on the Sierra Club's Beyond Natural Gas website (click here). Access a release from Dow Chemical (click here). Access a release from Rep. Markey (click here). Access the 7-page letter and analysis from Rep. Markey which contains links to referenced information (click here). Access legislative details for H.R.4024 (click here); and H.R.4025 (click here). Access an overview of the CRA report, a release and link to the complete report (click here). Access the AEA website (click here). Access a release from the U.S. Chamber (click here). Access a release from the Ohio Representatives and link to the letter with signatures (click here). Access a notice from DOE and link to the FR notice of availability; the EIA analysis; the NERA analysis; and a summary of LNG export applications (click here). [#Energy/LNG]
 
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Posted by JPMcJ at 3/12/2013 03:17:00 PM 0 comments

Monday, March 11, 2013

Amplified Greenhouse Climate Effect Shifts North's Growing Seasons

Mar 10: An international team of university and NASA scientists examined the relationship between changes in surface temperature and vegetation growth from 45 degrees north latitude to the Arctic Ocean. Results show temperature and vegetation growth at northern latitudes now resemble those found 4 degrees to 6 degrees of latitude farther south as recently as 1982. The study was published Sunday in the journal Nature Climate Change.

    Ranga Myneni of Boston University's Department of Earth and Environment said, "Higher northern latitudes are getting warmer, Arctic sea ice and the duration of snow cover are diminishing, the growing season is getting longer and plants are growing more. In the north's Arctic and boreal areas, the characteristics of the seasons are changing, leading to great disruptions for plants and related ecosystems." Myneni and colleagues used satellite data to quantify vegetation changes at different latitudes from 1982 to 2011. Data used in this study came from NOAA's Advanced Very High Resolution Radiometers (AVHRR) onboard a series of polar-orbiting satellites and NASA's Moderate Resolution Imaging Spectroradiometer (MODIS) instruments on the Terra and Aqua satellites.

    As a result of enhanced warming and a longer growing season, large patches of vigorously productive vegetation now span a third of the northern landscape, or more than 3.5 million square miles (9 million square kilometers). That is an area about equal to the contiguous United States. This landscape resembles what was found 250 to 430 miles (400 to 700 kilometers) to the south in 1982. Co-author Compton Tucker of NASA's Goddard Space Flight Center in Greenbelt, MD said, "It's like Winnipeg, Manitoba, moving to Minneapolis-Saint Paul in only 30 years. The Arctic's greenness is visible on the ground as an increasing abundance of tall shrubs and trees in locations all over the circumpolar Arctic. Greening in the adjacent boreal areas is more pronounced in Eurasia than in North America.

    An amplified greenhouse effect is driving the changes, according to Myneni. Increased concentrations of heat-trapping gasses, such as water vapor, carbon dioxide and methane, cause Earth's surface, ocean and lower atmosphere to warm. Warming reduces the extent of polar sea ice and snow cover, and, in turn, the darker ocean and land surfaces absorb more solar energy, thus further heating the air above them. Myneni said, "This sets in motion a cycle of positive reinforcement between warming and loss of sea ice and snow cover, which we call the amplified greenhouse effect. The greenhouse effect could be further amplified in the future as soils in the north thaw, releasing potentially significant amounts of carbon dioxide and methane." 

    To find out what is in store for future decades, the team analyzed 17 climate models. The models show that increased temperatures in Arctic and boreal regions would be the equivalent of a 20-degree latitude shift by the end of this century relative to a period of comparison from 1951-1980. However, researchers say plant growth in the north may not continue on its current trajectory. The ramifications of an amplified greenhouse effect, such as frequent forest fires, outbreak of pest infestations and summertime droughts, may slow plant growth. Also, warmer temperatures alone in the boreal zone do not guarantee more plant growth, which also depends on the availability of water and sunlight.

    Researchers found more plant growth in the boreal zone from 1982 to 1992 than from 1992 to 2011, because water limitations were encountered in the latter two decades. Data, results and computer codes from the study will be made available on NASA Earth Exchange (NEX), a collaborative supercomputing facility at Ames. NEX is designed to bring scientists together with data, models and computing resources to accelerate research and innovation and provide transparency.

    Access a release from NASA with images and links to related information (click here). Access information on obtaining the complete paper from the journal Nature Climate Change (click here). [#Climate, #Land, #Agriculture]

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Posted by JPMcJ at 3/11/2013 03:15:00 PM 0 comments

Friday, March 08, 2013

USGCRP Releases Our Changing Planet Report

Mar 8: The Administration's interagency U.S. Global Change Research Program (USGCRP) delivered its annual report to Congress entitled, Our Changing Planet: The U.S. Global Change Research Program for Fiscal Year (FY) 2013. The report indicates that it is also, "A Supplement to the President's Budget for Fiscal Year 2013" and highlights recent activities by 13 Federal agencies to strengthen the scientific understanding of global changes -- including climate change -- the threats and opportunities they present, and how they are likely to evolve over time.

    USGCRP's scientific portfolio spans multiple systems and scales, from organisms to ecosystems to the entire planet -- including changes brought about by human behavior as well as by larger natural forces. It incorporates information from nearly all forms of scientific work, including laboratory experiments, field research, computer modeling, scientific assessment, and observations of Earth from land, air, sea, and space. The vast body of work has been carried out by 13 government agencies -- all working together to paint a clearer picture of global change so that citizens and decision makers have the information they need to plan, prepare, and respond.

    USGCRP indicates that the benefits of this work extend far beyond pure science into domains that are directly relevant to the day-to-day lives of Americans and others around the world. They support weather forecasting, water and land resource management, agricultural crop production, and many other functions that impact lives, livelihoods, and communities. The report showcases tangible results of work carried out by USGCRP agencies, including, for example, some of the most detailed, data-rich maps of Alaskan permafrost ever generated; the most precise map ever produced of carbon stored in Earth's tropical forests; critical information about the number and magnitude of extreme weather events in the United States; and updated maps that help gardeners and growers plan for harvesting seasons.

    For more than two decades USGCRP has continued to fulfill the Congressional mandate to "understand, assess, predict, and respond to human-induced and natural processes of global change." Building on 20 years of scientific experience, USGCRP scientists continue to expand the knowledge of Earth's past and present climate, improve projections of future climate change, and achieve a better understanding of the impacts and risks associated with global change -- all with the aim of getting practical information, useful tools, and reliable data into the hands of those who need it.

    The report indicates that, "Global change is happening now. Increases in population, industrialization, and human activities have altered the world's climate, oceans, land, ice cover, and ecosystems. In the United States, climate change has already resulted in more frequent heat waves, extreme precipitation, wildfires, and water scarcity. These are serious challenges that directly affect American families, communities, and jobs. The only way to respond effectively is with a sound understanding of the changes underway, the threats and opportunities they present, and how they will change over time. . . "

    The report notes that the USGCRP is designed to coordinate the Federal Government's $2.6 billion annual investment in global change research -- the largest such investment in the world. A new Research Plan for 2012-2021 lays out clear goals and objectives to achieve an ambitious new emphasis, including the expansion of stakeholder participation in all stages of the scientific process, and dissemination of results and information to broad audiences, including the public [See WIMS 4/30/12]. Data collected and reported by USGCRP agencies indicate for example:

  • In 2011, the United States experienced a record-breaking 14 weather disasters producing insured losses of more than $1B each. The previous record was nine, set in 2008.
  • The average temperature for the contiguous United States during July 2012 was the hottest for any month on record (since 1895).
  • In the United States, the 12-month period ending July 31, 2012 was the warmest since recordkeeping began in 1895
    and NOAA announced in December 2012 that 2012 was poised to go down in the record books as the hottest since 1895.
  • During July 2012, 2.01 million acres were burned by wildfires in the United States -- the 4th largest extent on record. In the same month, 9,869 fires burned -- the 5th highest number on record for July over the past dozen years.
  • 62.9 percent of the contiguous United States experienced moderate to exceptional drought at the end of July 2012. The maximum value of 63.9 percent reached on July 24 set a record for the 13-year history of the United States Drought Monitor
  • The National Snow and Ice Data Center -- an interagency center funded jointly by NASA, NOAA, and NSF -- recently reported that Arctic sea ice reached its lowest-ever measured extent in September 2012.
    Increasingly, decision makers are adopting an array of climate adaptation policies, plans, and actions. Moving forward, it will be critical to evaluate what works, what fails, and where more scientific support is needed. USGCRP is working to meet this need by monitoring and evaluating adaptation actions taking place on the ground. This will help decision makers determine whether their adaptation actions are successful and how they can be enhanced.
 
    The report also indicates that, "Climate change poses potentially serious challenges to human health, including increased heat stress mortality, increases in diarrheal disease, degraded air and water quality, changes in vector-borne disease patterns, more severe pollen seasons, and danger from more frequent extreme weather events. In addition to threatening human well-being, these challenges can also contribute to increased healthcare costs."
 
    USGCRP has identified five priority areas of focus for FY 2013 including: Integrated Observations, Research and Modeling for Earth and Social Systems; Adaptation Research; Sustained Assessments; Interagency Global Change Information System; and Communications, Education, and Engagement. The FY 2013 budget request for USGCRP programs is $2.7 billion -- an increase of approximately 7 percent over the 2012 enacted level.

    Access a posted announcement of the new report (click here). Access the complete 67-page report (click here). Access the USGCRP website for more information (click here). [#Climate]

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Posted by JPMcJ at 3/08/2013 04:21:00 PM 0 comments

Thursday, March 07, 2013

NatLab Partnership Releases Green Infrastructure Financing Guide

Mar 7: In the wake of Superstorm Sandy and 2012's unparalleled extreme weather events, a new groundbreaking green infrastructure financing guide was released by the NatLab consortium -- a path-breaking collaboration between two of the world's leading environmental organizations, the Natural Resources Defense Council (NRDC) and The Nature Conservancy, and sustainable asset management firm EKO Asset Management Partners. 

    The report, which was developed in collaboration with the Philadelphia Water Department (PWD) and funded by the Rockefeller Foundation, focuses on Philadelphia's innovative Green City, Clean Waters program as a model for stimulating investment in natural infrastructure. It demonstrates how local municipalities and state government can potentially drive billions of dollars of private investment to modernize broken, aging stormwater systems and keep stormwater pollution out of waterways. Nearly 10 trillion gallons of polluted runoff -- sometimes mixed with raw sewage -- are currently dumped into local rivers, lakes, beaches, and drinking water supplies annually.

    Dr. Judith Rodin, President of The Rockefeller Foundation said, "Governments across the country must find new and innovative ways to build infrastructure that is resilient to nature's shocks and stresses. The Rockefeller Foundation is proud to support the creation of such a critical tool for local leaders to understand the best practices for leveraging private dollars to support public infrastructure projects such as stormwater system repair.  It will only be through innovative partnerships across sectors that we are able to build truly resilient cities."

    NatLab's report, "Creating Clean Water Cash Flows," and companion report, "Greening Vacant Lots," validates the business case for both innovative public policy and private investment in green infrastructure by drawing from lessons from the energy efficiency finance sphere. The report provides in-depth guidance on key strategies that cities can deploy to attract private capital to green infrastructure development on private as well as public land, including: project aggregation, offsite mitigation and credit trading programs, subsidies, private-public partnerships, and transformation of vacant lands.

    Natural infrastructure -- such as porous pavement, green roofs, parks, roadside plantings and rain barrels -- addresses stormwater pollution by capturing rain on or near where it falls, preventing the rain from carrying runoff from dirty streets to local waterways and oceans, instead storing the rain or allowing it to naturally filter back into the ground. These sustainable practices not only restore the health of local waterways, but also beautify neighborhoods, cool and cleanse the air, reduce asthma and heat-related illnesses, save on heating/cooling energy costs, boost economies and support American jobs -- usually at the same or lower cost than a purely "traditional" gray infrastructure solution.

    Larry Levine, a senior attorney in NRDC's Water Program said, "We already know green infrastructure solves massive urban stormwater problems, but we need to pick up the pace of implementation by using the full toolkit of public investment, smarter regulations, and innovative private financing approaches." Alisa Valderrama, senior project finance attorney in NRDC's Center for Market Innovation said, "The time is ripe for partners from the private and public sector to work together towards cities that have cleaner water, greener neighborhoods, and decreased tax payer burdens."

    NatLab develops large-scale financing solutions to help cities leverage private capital for green infrastructure investments.  NatLab's work since 2012 has focused on Philadelphia, but the efforts in Philadelphia aim to shed light on a range of strategies that many cities can utilize to help draw from private investment capital to "green" their approach to stormwater management. NRDC indicates that this first-of-its-kind resource comes opportunely, as many cities are urgently seeking financing for much-needed upgrades to their sewer and stormwater infrastructure. Additionally, this summer, the EPA considers a once-in-a-generation opportunity to expand the robust deployment of green infrastructure by reforming its national requirements designed to tackle urban runoff. A proposed clean water rule to reduce polluted runoff and enhance community livability is expected to be announced in June 2013.

    Eron Bloomgarden, partner at EKO Asset Management Partners said, "Harnessing natural infrastructure in the transition from gray to green is of enormous interest to investors, including family offices, foundations, endowments, pension funds and other large institutional investors. Private capital can play an important role to support this transition, and NatLab's work in Philadelphia points the way to several promising investment opportunities that also have meaningful environmental and community benefits."

    According to a release, Philadelphia, which is expected to deploy an estimated public investment of at least $1.67 billion over the next 25 years in stormwater retrofit projects, is leading the way on green infrastructure in America -- developing policies which include innovative fee and credit systems with tremendous potential for stimulating private investment and providing attractive rates of return for project developers. The city's flagship stormwater billing structure provides a significant discount for non-residential property owners if they manage to keep the first inch of rainfall on their property through green practices, rather than letting the stormwater runoff flow into municipal systems.

    Howard Neukrug, Water Commissioner of PWD said, "Leveraging public-private partnerships can help transform and green our City water systems in a brilliantly cost-effective way. PWD has long been incubating and testing financial and programmatic approaches to accelerate the pace of green acre development, our community resilience and other community benefits associated with green infrastructure. We appreciate the Rockefeller Foundation's support and NatLab's collaboration with the Philadelphia Water Department in advancing these potentially game-changing tools."

    While Philadelphia is a leader in deploying green infrastructure, cities around the nation are also pursuing significant green infrastructure investments including: New York City: $1.6 billion over 20 years; Los Angeles: approximately $200 million in the next two years; Kansas City, Mo.: $78 million; Portland, Ore.: $68 million from 2008-2013; Detroit: $50 million over 20 years; Cleveland: $42 million; and Seattle: $24-30 million from 2012-2018.

    Access a release from NRDC (click here). Access an overview and link to the complete 87-page Creating Clean Water Cash Flows report (click here). Access the companion 134-page Greening Vacant Lots report (click here). Access NRDC's 36-page report on Financing Stormwater Retrofits in Philadelphia and Beyond (click here). Access the EKO Asset website for more information (click here). [#Water/Stormwater]

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Posted by JPMcJ at 3/07/2013 03:36:00 PM 0 comments
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