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As India reels from a perfect storm of increasing fossil fuel import bills, capital outflows, and a stagnating economic environment, attention to its current account deficit (CAD) has grown exponentially. I've written on the threat coal imports pose to energy security and CAD in the past, but the biggest threat from fossil fuel imports is clearly oil.
Currently the country imports 70 percent of its supplies at a staggering cost. The situation is only going to get worse, which has prompted high-profile calls from people like Akhil Ghupta and Blackstone for innovative solutions including a dramatic expansion of solar power. I recently caught up with Anand Gopal of Lawrence Berkeley National Lab (LBNL) to discuss how India tackles this oil import crisis.
If you're wondering why you should care what Anand and his colleagues have to say, it might be useful to give you a sense of their past work. Their team at the LBNL led a study that recalculated India's wind potential and found 20 to 30 times more potential than the 102 gigawatts the government had officially reported. Their findings have spurred a new wave of investment and interest in wind power in India. As they turn their sites on new challenges, it's worth understanding where they think India's energy future lies.
Here's my interview with Anand.
Justin Guay: Can India do without oil?
Anand Gopal: India has great opportunities to substantially reduce, or at least, stabilize oil consumption. Road transportation, which will be responsible for most of the growth in oil demand in the coming decades currently still accounts for a small share of total Indian primary energy demand. This is because the current vehicle fleet is a fraction of the expected fleet size in 2030 and most of the urban and road infrastructure that will support this growth has not yet been built. Therefore, India, unlike China or Brazil and many other emerging economies, presents us with the opportunity to leapfrog directly to a clean transport future with little need to change existing vehicles or infrastructure. The best part is that as advanced clean vehicle technologies get cheaper through deployment in the West, they can be deployed in India before large scale motorization takes hold.
(1) They can enable greater renewable energy penetration by offering grid balancing and other Vehicle-to-Grid (V2G) services;
JG: Where do electric vehicles fit in to a 'Beyond Oil' solution?
AG: Of the many transportation technologies that use fuels other than oil, electric vehicles (EVs) appear to hold the greatest promise in India. India has such high demand for non-transport uses of biomass that biofuels are unlikely to be a major solution for India. Natural gas vehicles (NGVs) can be part of the 'Beyond Oil' solution, as evidenced by the gasification of transit fleets in some cities, but India's natural gas resources are not abundant and the exploitable shale gas resource does not seem promising. Hence, large-scale deployment of NGVs may only shift India from oil import dependence to natural gas import dependence, doing nothing for the CAD.
EVs on the other hand do not suffer from the problems of biofuels and NG that we described above. EVs also offer some additional benefits:
(2) They substantially improve human health outcomes by eliminating tailpipe pollutant emissions which are one of the main causes of morbidity and early mortality in India; and,
(3) Unlike NGVs, EVs can enable very deep reductions in Indian greenhouse gas emissions because renewable electricity costs are falling dramatically in India.
JG: Why are EV's particularly suited for India?
AG: In our research, we have found that the transition from internal combustion engine cars to power-split hybrid and full electric cars results in much greater real-world fuel economy improvements in India (and China) than we see in the U.S. That's due to four main reasons peculiar to Indian driving behavior:
(2) A higher share of energy per Indian trip is lost in braking, which is almost wholly recovered in an hybrid-electric vehicle (HEV) and EV;
(3) HEVs and EVs use no fuel during idling and the share of idling time in traffic is much higher in India (than the U.S.); and
(4) The average range traveled in India is much smaller than in the U.S., making EVs much more feasible and range anxiety less of an issue.
JG: What technology, business model, and financing breakthroughs (if any) need to happen for EVs to be deployed?
AG: The cost of batteries is the key barrier to EV affordability. So, these would need to drop for greater market uptake. However, the large share of two-wheelers and the smaller power needs for cars there may allow for less energy dense battery chemistries than Li-ion in EVs. We are interested in exploring such possibilities at LBNL.
India's fuel economy test procedures should be more reflective of real-world use. Currently, India uses a modified version of the New European Driving Cycle for fuel economy labels, which has no correlation to Indian driving. This test procedure systematically underrates hybrid and electric vehicles and overrates ICE vehicles.
It may also be helpful to provide incentives for EV purchases. These incentives can be designed in a net revenue neutral manner. The incentive can be set at a level where the EV purchase it facilitates results in the full recovery of costs from fuel savings over the life of the vehicle. The incentive could be even higher because of the macroeconomic stabilization effect from reduced oil imports.
Taken together these changes can finally set India on a path to break oil dependence and solve the CAD.
-- Justin Guay, Sierra Club International
Off-grid applications are clean technology's next big market. Nowhere is this more true than Africa where the International Energy Agency predicts population growth will outstrip grid expansion to leave 645 million people without power. It's predictably tough for companies in this potentially vast market to stick out from the pack - unless of course you're BBOXX. I caught up with Mansoor Hamayun, the CEO of BBOXX, on the eve of a Series A investment from Khosla Impact to discuss the company's evolution and off-grid clean tech 2.0.
(click graphic to enlarge)
BBOXX is, as Mansoor describes it, a classic university start-up that began as a charity focused on one of the great problems of this century - universal electrification. The company realized early on that the grid was an economic question - even if governments provided every household with the grid, the payback period never happened because load was too low. That meant grid extension was a non-starter. As Mansoor puts it, 'I don’t see the grid expanding, and even if it did the reliability issue is huge. Remember the first source of demand for companies like ours is on-grid consumers who have terrible service.'
That meant for Mansoor the solution was a 21st century distributed 'grid.' But to his surprise he couldn't find the products required to build it out. That's because few working on the problem knew what it meant to provide an on-grid service in an off-grid environment - they were simply too focused on kilowatt hours and not service delivery. That meant the field was wide open for creating products and appliances that catered to the realities of the market.
But supplying quality products is one thing, genuine demand is another. It turns out BBOXX was fortunate to move into the African market at an ideal time - right after the Copenhagen climate change conference. That conference created a group of motivated consumers - successful African businessmen - interested in clean energy solutions. They saw off-grid clean energy as a real opportunity but lacked the ability to make it happen.
That's where BBOXX stepped in with nothing more than 45,000 in British Pounds scrounged between the three cofounders. Given their cash-starved state, and the demand driven by their African partners, they were forced to be sales driven - without cash flow they couldn't grow. They turned that motivation into $3 million in revenue and have been opening operations in a new country every six weeks. Currently they're in 14 countries and introducing their own retail network. Not bad for a few years work!
But the real innovations, those that earned them a Series A from Khosla Impact, are the evolving pay-as-you-go finance solutions backed by remote battery monitoring all delivered through their own distribution network.
Sandhya Hegde from Khosla Impact sums up their positive impression this way, "Gathering data on customers' energy usage behavior is the only way we can learn how to provide energy as a reliable service. We believe this innovation is central to unlocking the pay-as-you-go business model and making solar energy an accepted, trusted, and financeable product in the eyes of the off-grid world." This is off-grid clean tech 2.0.
Arguably the most important piece here is consumer financing. That's because entrepreneurs face a harsh market reality: Asking their customers to buy lifetime energy needs on day one. No one in the world is ever asked to do that but it's daily reality in off-grid markets.
BBOXX is responding by moving to a payment plan model supported by an in-house finance company: BBOXX Capital. The sole purpose is to finance end customers. The fund was capitalized with the help of a soft loan of $300,000 from the Africa Enterprise Challenge (funded by DFID) that was matched by franchise partners to reach roughly $1 million. The aim is to use this fund to support 200-300 payment plan products/month in two geographies (Kenya and Uganda).
With financing in place they have overcome the space's biggest hurdle. That means the biggest risk they face now is execution. For BBOXX that means increased service delivery in the form of radio, TV and other products. Because once households have even watt level energy, their demand for transformative services like the internet is enormous. As Mansoor puts it, "It's amazing when I see people streaming YouTube on their phones in rural areas. It blows me away."
In order to get there though they'll need to secure the Holy Grail: a long-term relationship with the customer with a proprietary distribution channel. Because if you own the entire chain, you have the ability to overcome the last-mile challenge and deliver the services of the future – from TV to tablet.
This means that in 21st century Africa off-grid clean tech providers like BBOXX are the future. But Mansoor is not alone. While he says his main competitor is kerosene and consumer habits, he knows other companies are not far behind. From M-Kopa to Azuri, the off-grid clean tech space is quickly filling with exciting competitive companies. But it doesn't seem to bother BBOXX. They're pioneering off-grid clean tech 2.0 and they're not looking back.
-- Justin Guay, Sierra Club International
Today the Tennessee Valley Authority (TVA) announced it will retire three of its coal plants in Alabama and Kentucky. Retiring these plants means less pollution in the air and water in the southeast U.S. According to the Clean Air Task Force, the Colbert coal plant in Alabama alone contributed to 940 asthma attacks, 83 heart attacks, and 57 deaths per year. These retirements also mean less of the carbon pollution that is pushing our climate to the brink.
This is big. It's a great move for public health, for clean air and water, and for our climate. It will also help protect families across the southeast from rising energy bills as the cost of coal-generated electricity has continued to increase. I applaud TVA and its new president and CEO, Bill Johnson, for their leadership in setting this great American institution on a new course for the twenty-first century.
This is also big news for the people of the Tennessee Valley who have been working for years for cleaner air and a healthier environment in the Valley, including our friends at the Southern Environmental Law Center, Southern Alliance for Clean Energy, Earthjustice, Environmental Integrity Project, Our Children's Earth Foundation, and National Parks Conservation Association.
Residents, businesses and industries have spoken loud and clear: they want TVA to provide affordable, reliable and clean power. I grew up in the Smoky Mountains of east Tennessee and went to college at the University of Tennessee in Knoxville, so I know first-hand how much that region has struggled with coal pollution, and how much local residents care about clean air and water.
TVA's next steps during this retirement process are critical. First, as TVA has done in the past, the utility must consider the workers and communities who have depended on these plants and make sure their livelihoods are protected. TVA's Board and CEO have a good track record in this regard, and as part of this announcement, they must continue finding ways to provide a responsible transition for affected workers and communities while making significant new investments in the clean energy economy.
Second, we urge TVA to focus on replacing these retiring coal plants with clean and affordable energy technologies in the Valley, helping create jobs and affordable electricity for decades to come. Wind and solar power are cleaner and cheaper than fossil fuels like coal and natural gas, and there are dozens of examples of for-profit and public-power utilities that are making huge investments in clean energy.
Moreover, a commitment from TVA to improve the energy efficiency of homes, businesses, and industries is the quickest way to achieve sustained energy savings and save consumers money in the process.
Finally, we urge TVA not to choose to rely on natural gas. It's time to leapfrog over natural gas or any other dirty fossil fuel that will continue to exacerbate environmental and public health issues.
The good news is that TVA can deliver on on the promise of clean energy -- it's part of TVA's history.
In the late 1970s, TVA found itself in a similar situation -- sagging demand, declining sales and lower revenues. TVA responded by increasing its commitment to energy efficiency in order to get the company back on track. The result was exactly what you'd expect: customers saved money, pollution decreased and the economy rebounded.
This is TVA's choice again: get its fiscal house in order by developing and deploying ground-breaking clean energy and energy efficiency programs which delivered real results, rather than continuing down a path of using outdated, inefficient, and dirty energy.
TVA has long been a model for utilities across the U.S., and its legacy of public power is an American treasure. They can continue that legacy by seizing the moment and leading on clean energy.
This is a proud and important day for the people of Tennessee, Kentucky, and the entire Tennessee Valley. Thank you to Bill Johnson and TVA for your leadership in moving away from polluting energy that threatens our health, our climate, and the places we love -- including my beloved Smoky Mountains.
-- Mary Anne Hitt, Beyond Coal Campaign Director
We all started arriving here in Warsaw, Poland just after the typhoon Haiyan hit in the Philippines. The destruction and loss of life from this gigantic storm made it the obvious story on the “why” we are here.
At least it’s why the non-governmental folks (we’re the “yellow badges”) are all here—to prevent extreme weather events like this one from becoming a regular occurrences in the future by kick-starting a clean energy economy with international action. This superstorm paints a picture of what scientists say will most likely continue to happen with greater frequency as the Earth warms. There are trackable hot spots in the Pacific Ocean that mean storms that develop over those areas will have even more energy to feed storms, making them even stronger and larger. In fact, the typhoon's winds were so strong, there has been talk of actually extending the rating system for typhoons and hurricanes, adding a sixth category.
Far-removed from the destruction on the ground in Philippines, world leaders from government and nongovernmental organizations are meeting from November 11 to 22 in Warsaw, Poland to decide. Between the complexity of both science and politics—just try to wrap your head around the alphabet soup of acronyms from an event called UNFCCC COP 19/CMP 9—to the exceedingly confusing layout of the venue, our lead delegate likes to quote Tom Peters, “if you’re not confused, you’re not paying attention.”
The lead of the Philippine delegation, Yeb Sano, made an impassioned plea on the floor of the plenary when the COP opened to have concrete action. He has started to fast until action is taken, trying to finally move recalcitrant nations to agree to a plan of action. His vision is that these nations will change from the fossil fuel status quo in order to keep these kinds of storms from becoming even worse and more frequent.
The Sierra Club has come out in solidarity with Mr. Sano. Climate Action Network-International (the umbrella group of NGOs acting on climate issues around the world, of which Sierra Club is a member) is also showing solidarity with Mr. Sano's fast by joining him. (photo here from the action, with Yeb Sano center)
Several of the Sierra Student Coalition delegates here in Warsaw are fasting along with him. SSC delegate Ashok Chandwaney remarked, “Yeb Saño inspires us to act; we fast in solidarity with him, because that’s what we can do. We ask those who make decisions about climate - here at COP 19, back at the EPA, and around the world - to listen to him, summon their courage, and dial up their ambition for the work we must do.”
The youth are speaking out and calling for action to save the world they will inherit. Our friends at SustainUS.org brought attention to U.S. climate policy with an action, urging the Environmental Protection Agency to move forward with the first-ever standards to limit carbon pollution from coal-fired power plants. President Obama needs our support for these common-sense carbon standards so the U.S. can help reduce our own emissions. (another photo there of the EPA 'to do list”) You can help by asking the Environmental Protection Agency to step up and protect our communities from carbon pollution.
--Claire Horn, Sierra Club Georgia Chapter Volunteer
Last week, I rode a bus from Indianapolis to Chicago for one of eleven listening sessions on the carbon pollution standards being proposed by the Environmental Protection Agency. When we arrived in Chicago, I took to the stage to help rally the 500-person crowd (video here), calling on the EPA to put forward strong, just standards for the number one source of the pollution that is wreaking havoc with our climate - power plants.
Let me tell you, it was inspiring.
The volunteers who rode that bus with me, and the thousands more who rallied at listening sessions around the nation, were there for a host of reasons: faith leaders who see climate change as the biggest moral issue of our time, high school and college students worried about their future, business people concerned about the costs of inaction, parents and grandparents terrified about the future for the kids they love.
Local elected officials, students, moms and dads, doctors and nurses, ministers and rabbis - they were all there to weigh in as the EPA begins drafting carbon standards for existing power plants that will be released next June. All told, more than 2,000 people attended these listening sessions to support strong EPA action. From Chicago to Kansas to Washington, D.C., and beyond, here are some of the highlights:
At Chicago's hearing, 500 people rallied in support of the EPA's carbon standards and more than 700 participated in support throughout the day. Attending the listening session was a crowd of more than 70 Detroit residents (pictured above) who made a long bus journey to Chicago. Many were from River Rouge, a community in Detroit suffering from severe environmental injustices, including the pollution from a nearby coal plant. After hearing previous expert testimony that correlated where people live to life expectancy, one River Rouge resident, Barbara Loving - a two-time cancer survivor - spoke about the need for support from the EPA in the community's fight for a healthy environment.
Another River Rouge resident, Reginald Myers, a worker at local Chrysler plant who also traveled to the hearing with his wife, Amina, and their four-month old daughter, testified about his concerns over buying a new home in the downriver community where he grew up while trying to raise a family.
At the EPA hearing in Lenexa, Kansas, more than 150 carbon standard supporters showed up to rally, and then more than 100 testified!
Down in Dallas, crowds of local Sierra Club activists also rallied and testified. Speakers included doctors, pastors, youth groups, scientists, city officials, and many others. Some activists chatted with one of the few coal supporters who told us, "You guys are everywhere!" Even the local news reported that the t-shirts beat the suits that day.
A stroller brigade greeted the EPA listening session in San Francisco (see video of it here), where parents spoke out for the importance of the carbon pollution standards in protecting their kids' futures. Attendees were touched when they heard the mother of a two-year old speak beautifully about how concerned she is for the future of her son's generation. Also powerful: a ten-year old boy spoke about how climate change is affecting his home, and the activities he and others love to do.
I could go on and on - there are stories like those from the Denver, Boston, Seattle, Atlanta, New York, Washington, D.C., and Philadelphia listening sessions as well. Americans want the EPA to require that the coal industry curb its carbon pollution in order to protect our health, keep our air and water clean, and help stop climate disruption.
We applaud the EPA for proving the kind of leadership on climate change that this nation needs so urgently.
-- Mary Anne Hitt, Beyond Coal Campaign Director
Grassroots Activists Across the Globe Condemn World Bank President’s Continued Support of Tata Mundra Coal Plant
Photo credit: BIC
After a yearlong investigation, the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism at the World Bank Group’s International Finance Corporation (IFC), issued a damning report that found serious lapses in the IFC’s $450 million loan for the 4,000-megawatt Tata Mundra coal-fired power plant in Gujarat, India.
The CAO report upheld the complaints of local fishing communities, which have been struggling with severe health effects and the loss of livelihoods due to the project. But instead of withdrawing from the Tata Mundra power plant, or at a minimum, offering reparations to residents and drafting a rehabilitation plan, World Bank President Dr. Jim Yong Kim abandoned his obligation to the affected communities and instead signed off on a response – written by the same people who approved the project at the IFC – dismissing the CAO findings.
Today, 68 groups from 28 countries across six continents sent a letter to Dr. Kim condemning the World Bank Group’s continued support for the deadly project. This action comes on the heels of a letter from over 100 groups in India demanding that the IFC withdraw from Tata Mundra.
Dr. Kim has made numerous public statements on his commitment to public health and fighting climate disruption, charging the World Bank to learn from past mistakes, but this decision flies in the face of his claims and shows the system for accountability within the institution is broken. The CAO found clear violations within the IFC, but instead of addressing the problems, Dr. Kim allowed them to be swept under the rug – and the fishing communities in Gujarat are forced pay the price.
Moreover, Tata Mundra is a failing project. Even its backers admit it is running at unsustainable losses. When the project was proposed, Tata Power argued the local impacts were justified because it would provide power for the poor, but this has proved to be a lie. Instead, the company is asking to raise rates for consumers, putting the price of electricity beyond the reach of the people it was supposedly built to help. Unfortunately, this is hardly surprising. According to the International Energy Agency, if we are ever going to reach 100 percent energy access, over half of services must come from off-grid sources. This means we must start making serious investments in clean, off-grid renewable energy that we can deploy today, without poisoning the air and water, instead of continuing to support centralized coal projects while waiting on costly grid extensions that may never happen.
The overwhelming response from groups throughout India and the world shows that the call to move from coal to clean energy is not an isolated drive, but rather a global movement that is gaining momentum as communities band together to demand their right to clean air, drinkable water, and access to land and livelihoods. It is time to abandon once and for all the notion that coal is inevitable and unquestioningly welcomed in places like India, and that it is acceptable to sacrifice local residents to coal development. It’s time, Dr. Kim, to hold the World Bank Group accountable for its failures and withdraw from the dangerous Tata Mundra project.
--Nicole Ghio, Representative, Sierra Club International Climate Program
Photo credit: @tomkimbis
Today the White House reminded us that those who
serve our country in the military are sometimes also on the front lines of our
clean energy economy. This morning, in a standing room only auditorium in
Washington, D.C.'s Eisenhower Executive Office Building, the White House
Council on Environmental Quality (CEQ) recognized these heroes with the
accolade "Champions of Change." Twelve veterans came from across the
country to DC -- one even called in from Afghanistan -- to join the event,
"Veterans Advancing Clean Energy & Climate Security," where White
House and other Administration officials thanked them for their service -- in
the military and in the advancement of clean energy and climate solutions.
CEQ Chair Nancy Sutley opened the ceremony by thanking the champions. She and Denis McDonough, White House Chief of Staff, who delivered the opening remarks, both called to mind the President's commitments to act on climate -- through his Georgetown University speech from this summer and last week's executive order to create a climate task force.
Delivering the ceremony's keynote address, U.S. Department of Energy Secretary Ernest Moniz spoke of an important link between climate disruption and national security, and what the Obama Administration is doing to connect those dots. In his first term as President, Barack Obama introduced fuel efficiency standards that helped reduce the United States' dependence on oil, and in particular, foreign oil. This, along with the advancement of biofuels and the electrification of vehicles, has helped lessen our dependence on oil and thus strengthened our national security, he said. Renewable energies like wind and solar are also putting us in a much better place, he noted, and it's happening now -- not five or 10 years down the road.
"Look up, the revolution is coming now," he said.
The Energy Department is also committed to getting veterans involved in this revolution. One quarter of the department's hires in 2013 have been veterans, according to Moniz, and through two new programs, the department is hoping to have more women and minorities involved in the clean energy sector.
Mr. Moniz then turned the mic over to the champions themselves, who, in two panels, shared their stories of working on the front lines overseas and their transition to working in various aspects of the clean energy sector.
The first of these panels was moderated by
Sharon Burke, Assistant Secretary of Defense for Operational Energy Plans and
Programs. Her expertise in defense led her to the observation that energy is
often taken for granted -- we don't always think about the risk involved in
obtaining that energy. The panelists, veterans who now work in projects like
solar technology, energy storage, wind development, and energy efficiency for
buildings, have all faced first-hand the risks involved with fossil fuels
overseas. One veteran, Andrea Marr, served in the Navy working on oil platform
security. That dangerous job led her to look into energy efficiency -- where
money and energy can be saved by schools and other buildings and then invested
in other things, like teachers. She said that countries in conflict are less
vulnerable if they are using less energy. Adam Cote, a veteran calling in from
Afghanistan was a combat engineer in the Army National Guard. His engineering
knowledge led him to discover electric thermal storage, a type of technology
that helps decrease the reliance on fossil fuels. Each champion learned from
their experiences on the front lines and brought them back to the States with a
clean energy vision in mind.
Leading a second panel with a slightly different
tone, Assistant Secretary of Defense for Energy, Installations, &
Environment Dennis McGinn asked the next six champions of change to share their
"Aha!" moments. These are the moments when the veterans made the
connection between their service overseas and the need for clean energy and
climate security. Liz Perez-Halperin, a Native American veteran, served 8.5
years in the Navy. Working to bring renewable energy and energy efficiency to
bases, she came to realize that "sustainability equals national security,
and sustainability equals peace and prosperity." For Robin Eckstein, a
truck driver in the Iraq War in 2003, her moment led her to this conclusion:
"It's not a right issue. It's not a left issue. It's an American
issue." To Robin, someone "with boots on the ground, sucking fumes in
the desert," this is an important issue -- and it helps to have more
everyday veterans on both sides of the aisle sharing their stories.
Finally, Sherri Goodman, General Counsel of CNA and Executive Director of CNA's Military Advisory Board, began to close out the ceremony. She pointed out that military leadership could be translated to environmental stewardship in many forms. She then introduced Senator John Warner, former Secretary of the Navy and five-time Senator from Virginia. Senator Warner, a champion of change himself and a hero for many of the veterans and government officials in the room, received a warm, standing ovation as he took the stage. You could hear a pin drop as he addressed the all-ears audience, telling stories of his days as a techie in the military. He said the top-notch training he received in the Marine Corps taught him how technology worked and how electricity flowed, and this set up his desire to advance energy efficiency and clean energy. This training has helped countless others, and we need to see more veterans coming back from service and going into the energy field, he said. The clean energy economy that is here now depends on the inter-workings of all -- Congress, government agencies, the private sector, and non-profits, according to Senator Warner.
As we look to Veterans Day next week, we must thank our veterans for their service and draw connections between our vets and our leaders in the clean energy revolution. These people have already served our country and gained invaluable skills, and now they are using those skills to once again serve the interest of the rest of us and future generations.
--Dan Byrnes, Sierra Club Media Team
Climate history has been made again. Among the announcement of the 150th coal plant closing in the United States, the IPCC’s report about the human cause of climate disruption, and the EPA’s first-ever protections against carbon pollution from new power plants comes another environmental victory. Last week, three west coast governors and the government of British Columbia released a landmark action plan that addresses major climate issues.The governors of California, Washington, and Oregon worked with the Premier of British Columbia to combat climate disruption by setting a price and standards for greenhouse gas emissions and outlining initiatives to invest in clean energy and infrastructure.
The goal of the pact is to “[affirm] our shared vision of Pacific North America as a model of innovation that sustains our communities and creates jobs and new economic opportunities for our combined population of 53 million,” the plan reads.
The governments plan to work together to combat climate disruption so as to make the largest impact possible. Currently, California and British Columbia already put a price on greenhouse gas emissions, and through this pact Washington and Oregon will follow suit.
“California, Oregon, Washington, and British Columbia know that cutting pollution leads to a healthier environment and a stronger economy,” Representative Henry Waxman (D-CA) said in a statement.
The pact not only plans to coordinate the environmental efforts of these states, but aims to target national and international climate policies.“[M]eaningful coordination and linkage between states and provinces across North America and the world on actions to reduce greenhouse gas emissions can improve the effectiveness of these actions, increase their overall positive impact and build momentum for broader international coordination to combat climate change,” the plan continues.
This pact was spurred by the work of the Pacific Coast Collaborative, an organization comprised of west coast states and Canada, which represents 53 million people and a gross domestic product of $2.8 trillion.
--Cindy Carr, Sierra Club Media Team Intern
There are a handful of decisions that are going to be made in the U.S. this decade that will be pivotal in the fate of our climate. The six proposed coal export terminals in the Pacific Northwest are among them. If these terminals are approved, they will unleash one of the biggest carbon sources on the planet, by creating a new pathway for Western U.S. coal to reach Asian markets, and it will be hard to put the genie back in the bottle.
That's why I traveled to Tacoma, Washington, in late October for a public hearing against the proposed Longview coal export terminal. I was floored and inspired to see the sea of red shirts marking the hundreds upon hundreds of clean energy supporters attending and speaking out at the hearing. It's an electrifying movement that has stopped three of the six proposed terminals to date - the climate pollution equivalent of stopping 35 new coal-fired power plants. When we stop all six projects, that will equal the carbon impact of stopping 105 new coal plants.
Washingtonians know that putting this carbon into the atmosphere would be catastrophic for our climate. A new study in the prestigious journal Nature found that by 2050, if we don't reduce our carbon pollution, what are now our hottest years and hottest temperatures may become our coldest years and coldest temperatures.
In 2050, my three-year-old daughter Hazel will be the age I am today. Once our kids are adults, it will be too late to turn this around. We are the last generation of people who can stop climate change.
A coal export terminal is proposed for Oregon as well, and opposition there is just as strong. What's more, one of the companies (Ambre Energy) proposing to build the Morrow Pacific terminal just had to delay its permit again because the state department of lands said the company still had not provided enough information for the agency to make a decision. This is the company's SIXTH permit delay!
That's just another example of a foreign company failing to do their homework so Pacific Northwest families know the full risk posed by exporting coal through their communities.
As a West Virginian, I testified at the Tacoma hearing about the realities of a "coal boom" to the people at that Longview hearing: The coal industry would just love to bring you a boom and bust economy, along with the asthma and heart attacks from coal pollution. The coal industry has been doing that in Appalachia for 100 years.
While I was in Tacoma, I also met with leaders from the Lummi Nation to thank them for their leadership in the opposition to the proposed Cherry Point terminal, which threatens their ancestral fishing and burial lands. It was an honor to meet Jewell James, a longtime Lummi leader who recently made headlines, including this USA Today story, when he led a powerful totem pole journey across sacred lands of the West that ended at the Cherry Point site. Here is how the organizers described it:
On top of that, hundreds also showed up for another hearing last week, Washington Governor Jay Inslee's hearing on how the state can fight climate disruption. People are speaking out in droves for strong action on climate. And their leaders are listening - this week, the governors of Washington, Oregon, and California, along with the premier of British Columbia, signed an agreement to reduce carbon emissions and tackle climate disruption.
This leadership in the Northwest is combining with the efforts nationwide that are making a difference. Over the past decade, communities have worked together to stop 182 new coal plants, and they've also won the retirement of 152 existing coal plants.
Join them - send a comment urging the rejection of the coal export terminals. We want our public officials to demonstrate the leadership on climate change that this nation and the world are desperate seeking.
-- Mary Anne Hitt, Beyond Coal Campaign Director
Congressman Holt (right) and Guests from New Jersey
One year ago today the nation was anxiously watching the Northeastern Seaboard, waiting out the full destruction of Superstorm Sandy. The storm ravaged towns up and down the coast from Maine to Florida, affecting the millions of Americans there and in between. Severe flooding, strong winds, and seemingly relentless rain pounded the coast killing more than 100 people, causing nearly $65 billion in damage, cutting power for more than 8 million, and destroying more than 300,000 homes and properties.
One year later, much of that destruction remains. .
Today, Representative Rush Holt, representing New Jersey’s 12th district, reflected on Superstorm Sandy and the affect it had on his home state and district. He was joined by three New Jersey Superstorm Sandy survivors, and their message was clear: We need to address climate disruption before the next Superstorm Sandy happens.
As Holt spoke about the storm survivors, he remarked, “these people are just representative of millions of people. They are a leading edge of a generation shaped by climate change.”
Each of the three New Jersey natives has a different story to tell but are inextricably connected by Sandy.
Eric Fleming, owner of Cocoa Bakery in Jersey City, was planning on opening his bakery November 17, 2012. When Sandy was about to hit, Fleming and his wife prepared for the storm as best they could, but they had no idea how destructive it would be. Six feet of water flooded their shop, destroying power tools, woodwork, and a nearly $20,000 espresso machine.
“The force of the water had ripped the pipes out of the wall,” Fleming said.
One year later, and their shop has only been open for three weeks. The destruction from the storm was more than just cosmetic damages; it also cost them one entire year of revenue. Unfortunately, Fleming isn’t alone. Many small businesses are still fighting to recover from Sandy.
“A lot of people are still dealing with a lot of damage,” Flemming said.
That includes people like Norma DeNoia. DeNoia is a resident of Seaside Park and owns rental property in the area. When Sandy hit, DeNoia and the other residents on the barrier island had to evacuate. These residents weren’t able to spend the holidays in their homes, and DeNoia lost her renters. It wasn’t until just recently she got one of them back.
“We were ill-prepared for the extent of the damage,” DeNoia said.
Luckily, many people have come to help the residents deal with the destruction. April Kuzas is one of them. Kuzas, a single mother of a son with asthma, had to move out of her Jersey City home for a week following the storm because her son relies on electricity to power his asthma treatment equipment. But Kuzas recognizes that she is lucky to not have lost her home.
“Luckily, we were able to help others,” Kuzas said.
Kuzas has been focusing her efforts on a local housing project that just happens to be located in the same community as Fleming’s bakery. Many of the residents of this housing project weren’t allowed back in their homes for a full month after Sandy, and many still have severe mold damage. This mold is affecting residents, specifically children -- something Kuzas and her son can relate to.
“One woman I’ve gotten close to over the past year, she has three sons,” Kuzas said. “Her sons have been in the hospital five times because of the mold.”
Currently, a bill addressing mold treatment in public housing is being reviewed by the New Jersey Senate. This is just one step in the process of recovering after Sandy and preparing for future weather events.
For years, scientists have been warning that with increased climate disruption comes more frequent and more severe weather. That severe weather is now upon us in the form of hurricanes, floods, droughts, tornadoes, and storms like Sandy.
“This is the new normal,” Holt said. “This will happen again and again.”
While some Members of Congress are skeptical of climate disruption and the consequences of inaction, Holt knows it is important to act now.
“We would do well to invest upfront,” Holt said of clean energy and preparations for future severe weather.
Holt brought these people from his home state to show his peers in Washington that he is not alone in calling for action, and that the sentiment for action on climate disruption spans the country and reaches every community.
“I feel very strongly that something needs to change,” concluded Denoia.
--Cindy Carr, Sierra Club Media Intern
Lincoln County, West Virginia, before mountaintop-removal mining.
On October 7, the West Virginia Public Service Commission issued an order requiring FirstEnergy to, among other things, double its energy efficiency target to one percent annually by 2018. This is a great move for increasing savings on rate-payer bills, fighting climate disruption, and creating new jobs.
It all started when, late last year, FirstEnergy-regulated subsidiary Monongahela Power requested permission from the Commission to acquire nearly 1,500 megawatts of coal-fired capacity from fellow FirstEnergy subsidiary Allegheny Energy Supply, at a price to ratepayers of over $1.1 billion.
The Sierra Club intervened in that proceeding, and, along with others, argued extensively that:
- The proposed price was too steep;
- Acquiring more coal-fired generation was environmentally short-sighted and risky to ratepayers;
- That the utility would be saddled with excess capacity it would be unlikely to recoup through market sales;
- And that investments in energy efficiency along with market purchases of electricity would be a dramatically cheaper way to serve customers, create jobs, and protect the environment.
The Club then participated in a coalition of stakeholders to help drive a settlement with FirstEnergy, resulting in dramatic increases in FirstEnergy's energy-efficiency requirements, investments in home and school weatherization projects to save even more energy, assistance to low-income ratepayers, and a savings of hundreds of millions of dollars to Monongahela Power's West Virginia customers.
The Commission approved the settlement, but also went further. Citing concerns about overreliance on coal in a world seeking to address carbon pollution, the Commission determined that FirstEnergy must bear more of the risk that carbon pricing and future environmental and public health standards would render the investment in more coal-fired generation a bad bet on behalf of its customers. As such, it may only recover from customers funds for part of the asset transfer if it can't sell enough of its new, surplus electricity to non-West Virginia customers.
In the end, the dramatic increase in FirstEnergy's energy-efficiency targets in West Virginia will end up helping keep the air clean, fight climate disruption, protect customers, and create new clean energy jobs in West Virginia.
By Zack Fabish, Attorney, Sierra Club Environmental Law Program
Long Island, New York may soon become clean-energy central thanks to a recent decision by the Long Island Power Authority (LIPA) to approve a 100-megawatt solar feed-in-tariff, which will triple solar generation through the Long Island Clean Solar Initiative program.
"The Clean Solar Initiative and residential solar programs have made Long Island a leader in solar power and reduced our dependence on dirty fossil fuels that pollute our air and make people sick," said Sierra Club Organizing Representative David Alicea. A feed-in-tariff lets people who go solar get paid for generated energy that feeds back into the grid, providing incentive for homeowners and business to adopt clean energy. LIPA's approval came with an additional promise to purchase 280 megawatts of renewable energy.
The Sierra Club's Beyond Coal Campaign in New York played a big role in securing this clean-energy commitment. In September 2012, Beyond Coal organizers launched the "Let's Turn, Not Burn" campaign with local partners and the Long Island Sierra Club group, with the specific goal of pushing LIPA and Governor Cuomo to consider offshore wind energy.
"LIPA was considering several proposals for new energy generation, which included building a new gas plant or purchasing power from an offshore wind project proposed for eastern Long Island," said Lisa Dix of Beyond Coal New York.
While the campaign fell short of a 750-to-900-megawatt offshore wind proposal, the solar feed-in-tariff, a fuel-cell and wind feed-in-tariff, and the 280-megawatt commitment did get the green light last year. However, after Superstorm Sandy plowed through the region, politics threatened to undo the commitment. But the campaign, coalition, and allies were successful in pressuring the governor and legislators in Albany to hold firm on the commitment. "And we won," said Dix.
"We see the renewable energy procurement as the prime opportunity to get the Empire State to finally commit to clean-renewable offshore wind power. It's a sad fact that New York lags behind on renewable energy, an area where it should be leading. This year we will push to double down on wind energy to meet the state's renewable energy targets."
To that end, LIPA's decision marks an exciting development, especially as the anniversary of Superstorm Sandy approaches. The campaign worked with Citizens Campaign for the Environment, Renewable Energy Long Island, the National Wildlife Federation, and others to keep the agency committed to clean energy.
"Long Islanders understand the real devastating effects of climate change," stated Adrienne Esposito, executive director, Citizens Campaign for the Environment. "We need to act now to curb polluting fossil fuels and increase renewable energies, including investing in offshore wind. It takes us a few months to site fossil fuel power plants and decades for clean offshore wind. We must reverse this pattern, tackle climate change and create a new energy paradigm."
-- Brian Foley
It may seem like ages ago, but days before the government closed its doors, the Senate took up a bill that would save us a tremendous amount of money and energy while creating jobs across the country.
This bill, the Energy Savings and Industrial Competiveness Act of 2013 (S.1392 or Shaheen-Portman), has the type of bipartisan and stakeholder support that is increasingly rare. It's supported by an array of uncommon allies: everyone from the U.S. Chamber of Commerce to the National Association of Manufacturers to the Sierra Club. And thanks to months and months of hard work by its two sponsors, New Hampshire Democratic Senator Jeanne Shaheen and Ohio Republican Rob Portman, it also became the first energy bill to be debated in six years.
So why did the Senate abandon it?
It’s a familiar story. While the bipartisan momentum behind the bill was building, one senator stood in the way and derailed the entire process simply to score a few political points. Shaheen-Portman was blocked by Louisiana Republican Senator David Vitter. Vitter, it seems, just couldn’t help himself from offering a totally unrelated amendment pertaining to the Affordable Care Act, adding a partisan poison pill to one of the few bipartisan bills to hit the floor in years. To be clear, there was a whole suite of bad amendments that was offered to S.1392, and Senator Vitter’s amendment was just one of them. But ultimately it was this unrelated amendment that forced leadership to table the bill for the time being.
Right now, our nation faces a host of important problems. We elected Congress to deal with them, and they aren’t doing it. That’s why Americans’ approval rating of Congress has sunk to an all-time low, scrapping the bottom of the barrel at just 5 percent. Be it the budget, the debt ceiling, or an important energy efficiency bill, Congress has to learn its lesson: There are no winners in holding solutions hostage over political agendas. It’s time for this nonsense to stop – and the Shaheen-Portman bill is a good place to start.
After 16 days of a government shutdown that cost our economy billions of dollars, put hard-working Americans out of a job, and shuttered some of our most important watchdog agencies, Congress finally worked together to end a manufactured crisis. It’s a fine start, but how about they work together to solve some real problems? This energy efficiency legislation is the perfect opportunity.
The diverse stakeholder support is there. Champions on both sides of the aisle are there. The chance for the Senate to prove they can still get something done is right in front of them. They shouldn’t miss this opportunity.
Senators Shaheen and Portman, the authors of this bill, have labored together across party lines for nearly four years on designing one of the world’s least controversial yet meaningful bills. It sailed through the Energy and Natural Resources Committee and is ready to go. Key Republicans in the House like Ed Whitfield have announced they are ready to move the legislation. In light of the recent economic damage wrought by the shutdown, Shaheen-Portman can help us recoup some of these losses by spurring growth and job creation. All Congress has to do is leave controversial poison-pill amendments behind and vote.
--Radha Adhar, Sierra Club Associate Washington Representative
Today a group of eight governors announced a landmark initiative to put 3.3 million electric vehicles on the road by 2025. That’s a lot of cars -- more than five times the number of cars the nation’s best selling Ford F-Series pickup sold in 2012 -- that will use no oil. The eight states are California, Connecticut, Maryland, Massachusetts, New York, Oregon, Rhode Island, and Vermont. To put it in perspective, these states combined represent nearly one-quarter of the vehicle market in the United States.
Passenger cars and trucks are responsible for nearly half of our nation's oil consumption and one-fifth of our carbon pollution. Even using energy to power plug-in vehicles from today's electricity sources, EVs are already significantly lower in greenhouse gas emissions than conventional vehicles. And as we shift to more renewable sources of power, these emissions savings will grow even more dramatic.
The eight states announcing this bold initiative will speed the adoption of electric vehicles through a range of strategies. These states will ensure drivers have convenient access to charging stations and coordinate building codes so that new buildings will be more likely to have charging facilities. Each state will lead the way by setting a goal for procuring electric vehicles in their own government fleet, and together they will develop joint education programs. By coordinating through a joint task force, these states will ensure the success of their Zero Emission Vehicle programs.
The momentum behind electric vehicles is growing. Today there are more electric vehicles on the road than ever before, and the number is growing quickly. Sales of plug-in electric vehicles tripled from 2011 to 2012, and in the first half of 2013 alone, sales of electric vehicles doubled compared to that time last year. At Sierra Club, we’ve seen enthusiasm for electric vehicles grow nationwide. Just last month we co-hosted National Plug-In Day, where more than 35,000 people attended events in 98 cities across the country.
This exciting partnership will build on the success of recently adopted fuel efficiency and emissions standards. For years, the Sierra Club, other environmental organizations, consumer and labor groups, and many others worked hard to ensure the adoption of federal vehicle standards that will double the efficiency of new passenger vehicles to an average of 54.5 miles per gallon by 2025. Today’s announcement will build upon these landmark standards and ensure that not only will our cars use less gasoline in the future, many of them won’t use gas at all.
-- Michael Marx, Director of the Beyond Oil Campaign
Chicago. Los Angeles. Austin. Asheville. Wait, what? That's right, Asheville, North Carolina, can now join the ranks of cities that have chosen to move beyond coal. On Tuesday night the city council voted UNANIMOUSLY to move the city from coal-fired electricity toward a clean energy future.
I was just in Asheville in July with my new friend Ian Somerhalder (of TV's "Vampire Diaries" fame) to speak at a rally where hundreds of people gathered to urge the city to invest in clean energy...here's video from that rally...
...and now look at the fantastic results!
This move by the city council is the right choice for clean air, clean water, and the local economy. The resolution establishes a partnership between Duke Energy - owner of Asheville's coal plant - and the city to work together in developing a plan to phase out the use of coal in western North Carolina.
Duke's coal plant in Asheville is the largest source of climate-disrupting carbon pollution in western North Carolina, which makes no sense for a city like Asheville that is a leader on clean air, clean water, and tackling climate disruption.
An investigation by a local riverkeeper also revealed that the coal ash ponds at the plant were leaking toxic chemicals into the French Broad River and groundwater. Coal ash is the by-product of burning coal for power, and it's full of nasty chemicals such as arsenic and lead.
"Duke's toxic coal ash problem is another reason why Asheville needs this plant phased out," said Hartwell Carson, the French Broad Riverkeeper who discovered the coal ash contamination. "The only way to permanently address toxic coal ash waste is to stop burning coal, and the city's resolution is the first step toward that goal here in Western North Carolina."
What an inspiring move, and a great model for other cities. This is an opportunity for Duke Energy to do right for its workers at the coal plant and secure a just transition for them for when the coal plant is retired. The Sierra Club and the Asheville Beyond Coal campaign strongly support transitioning in a just manner.
I'm thrilled for my friends in Asheville -- all those hundreds of people in the coalition there who helped this happed. Congrats to the Asheville Beyond Coal campaign and coalition partners the Western North Carolina Alliance and French Broad Riverkeeper, and the more than a dozen additional groups supporting the campaign.
-- Mary Anne Hitt, Beyond Coal Director
"The question is not whether we need to act.... The question now is whether we will have the courage to act before it's too late."
Those were President Obama's words during his landmark climate speech this past summer at Georgetown University. That speech marked a new, aggressive commitment to addressing the climate crisis by using climate pollution as a yardstick for major energy and environment decisions. The president laid out an ambitious vision for a clean-energy future that would generate jobs, promote healthy communities, and set an example for the world.
That's why we can't help but question why the Environmental Protection Agency would consider performance standards for new gas fueled power plants that could lock in continued reliance on fossil fuels for decades, and fail to carry out the president's vision.
Although the EPA's proposed standard for coal plants will significantly reduce carbon pollution, the standards for natural gas will not require new plants to perform any better than old ones. By setting carbon-pollution standards for new and existing gas-powered power plants that don't achieve any actual emissions reductions -- even though we have the technology to do so -- the EPA's proposal gives the natural gas industry a free pass to pollute. That means no reductions in carbon pollution from natural gas. Clearly, this would be a colossal missed opportunity.
Failure to use this once-in-a-generation opportunity to require the natural gas industry to use existing pollution control technology will undermine the president’s environmental legacy. An International Energy Agency report concluded that converting from coal to gas in the electricity sector would still fuel a global temperature increase of six degrees Fahrenheit. That is unacceptable. If the EPA is serious about the climate crisis, it needs to be serious about reducing emissions from all power plants -- regardless of whether they are fueled by gas or coal.
Remember, too, that burning more natural gas inevitably means more drilling and fracking -- and more pollution. That pollution, which causes respiratory problems and premature deaths, disproportionately harms low-income communities. But all Americans are affected by it. In fact, a recent UT Austin study found that greenhouse gas emissions from fracking for gas alone were equivalent to 10 million cars on the road each year -- and that's just the pollution from fracking, not counting the emissions when the gas itself is burned or leaks along transport lines. Giving a free polluter's pass to natural gas plants is an attack on everyone who values clean air and safe drinking water.
Fortunately, it's not too late. The EPA's upcoming public listening sessions for existing gas plants give us a chance to tell the agency that we want it to make the president's clean-energy vision a reality. That means not letting gas-powered plants off the hook. The best path forward is to set tough standards for new and existing gas plants. Even if you can't attend a listening session, you can send a message to the EPA telling it to protect our air, our water, and our communities from harmful fracking.
The question isn't whether we need to act. We know that more fossil fuels, including natural gas, will lead to a much warmer future. The question is whether President Obama and the EPA are courageous enough to stand up to the oil and gas industry. We must demand they not give a free pass to natural gas.
-- Deb Nardone, Director of the Sierra Club's Beyond Natural Gas Campaign
A few short years ago the assumption that coal demand was essentially endless in China and India was seen as irrefutable. Now this 'coal consensus' is breaking as analysts from Citi Bank to Bernstein predict a rapidly approaching peak in Chinese coal demand. But while the end of the Chinese coal bubble has generated headlines the situation in India has flown entirely under the radar. Now the Indian coal bubble may have popped and no one seems to realize they’re standing in the rubble.
To understand the depth and extent of the Indian coal bubble you have to first understand the country's unique problem: Despite sitting on the world's 5th largest supply of coal, it can't secure affordable coal supplies. That's because the country can't mine coal fast enough, and has failed to expand transportation infrastructure (largely railways) to move coal where it needs to be (the power plants). The resulting supply crunch is so acute that power plants operators and Coal India have fought for years over 'Fuel Supply Agreements' while scores of coal plant developers have moved to India's coastline to bypass domestic supply problems in favor of expensive imports. In sum, this supply crunch is structural, and it's not going away anytime soon.
But it's not that India’s coal supplies have stagnated for lack of effort. Even now Coal India and the Ministry of Forest and Environment have green-lighted mine expansions across the country. The problem is expanding mining operations is easier said than done. You see if you layered maps of mineral resources, tribal populations, and endangered wildlife on top of each other you’d see a scary picture. That's because what's left of India's cheapest coal reserves lies in the exact same places as the country's remaining forests which also happen to be home to the country's remaining tiger populations and large numbers of tribal populations. It's this combustible mix that has fueled 'naxal' insurgencies in many parts of the country's coal belt.
What that means is that India's drive to expand coal supplies (as well as build new power plants) runs face first into fierce local resistance. These local communities have held back the goliath of coal expansion with little more than a slingshot and a rock. That heroism, aided by the beauracratic inefficiency of Coal India and a decrepit transportation infrastructure, has caused stagnating production, and heightened project delay (all of which investors in Coal India would do well to take note of).
Of course tight supplies alone would not merit the title economic 'bubble.' That was formed by a deregulated energy sector given the green light to build a whopping 455 coal plants under the assumption that a coal expansion was inevitable. You see developers rushed headlong into new projects without properly assessing the underlying risks around fuel supplies, and worse, were underwritten by billions in investment from Indian banks. The result is a massive asset bubble whose financial rot could now affect the entire economy.
Unfortunately this is exactly the situation the Reserve Bank of India warned of in 2012 saying 'over-exposure to the coal sector posed systemic default risk' to the Indian economy. It was this warning that should have put the sector in deep freeze. Instead analysts around the world have predicted galloping coal growth, ironically much like they did in China until only a few months ago. But while the RBI warning failed to slow investment, or the narrative that a coal expansion was inevitable, two outside shocks began the inevitable process of deflating this bubble.
First came the coal-gate scandal, which exposed $33 billion in coal leases that were simply given away to powerful companies and rich individuals developing power plants. With Anna Hazare awakening a middle class furious over rampant corruption the coal sector became tarred with the brush of corruption. The result is that dozens of mining expansions around the country have been quietly held in limbo as beauracrats seek to avoid any political exposure to the ongoing scandal. The already tight supply of coal squeezed even further.
Next came capital flight and the current account deficit (CAD) crisis. This was perhaps the knockout blow because it made financing coal projects more difficult while putting a macroeconomic strain on even big companies who might have been able to weather the storm. Particularly hard hit were projects reliant on already expensive imported coal because they have to pay for their fuel with foreign currency at a time when the rupees value continues to plummet. The most emblematic of these, Tata Mundra, has become in the words of Anil Sardana managing director of Tata Power an 'albatross around the neck.'
All of which brings us to our saga’s climax: the news that a whopping 30 'distressed' coal projects are up for sale in India – and no one wants to buy them. This is the moment when the true nature of the coal expansion has been exposed for what it always was: an illusion. The problem is the fallout is only just beginning as State discoms who are supposed to buy the power, have said they simply can't afford it. That means these 30 projects may become stranded assets while new projects will find it nearly impossible to secure financing given that their customers are bankrupt.
But in every crisis is an opportunity and a phoenix may yet rise from the ashes. Already there are high profile calls from Akhil Gupta and Blackstone to diversify India's energy mix starting with solar. After all India still needs energy and it will have to come from somewhere. But the only way deliver is to heed the hard learned lesson from this bubble: coal won't deliver, it's time to diversify.
After decades of presidential promises to wean ourselves from foreign oil, break from the debilitating grip of petroleum cartels, and, more recently, address the urgent need to reduce climate pollution, these problems are still staring us right in the face.
U.S. News and World Report recently carried an opinion piece on a new report written by myself and two others, called "The Plan: How the U.S. Can Help Stabilize the Climate and Create A Clean Energy Future," which seeks to change that. The report outlines the actions and policies that are necessary to go beyond President Obama’s recently announced Climate Action Plan and achieve the emissions reductions that the world’s scientists have deemed necessary.
The set of policies that we have proposed would put the U.S. on a path to carbon neutrality by 2050, ensure that fossil fuels extracted in the U.S. aren't burned elsewhere (after all, the climate doesn't care where the fossil fuels are coming from), and put the U.S. in a position of leadership in order to foster international cooperation.
Here are the six main actions The Plan calls for:
1. Going Beyond President Obama's Plans
The report shows that the President's plans fall short of reducing emissions to the levels we need to reach and posits that they rely too heavily on risky technologies - fracked natural gas, nuclear power, offshore drilling, and carbon capture and sequestration. The administration's plans also lack a forward-thinking vision for our transportation future and fail to prevent emissions from increasing in other countries despite decreases here at home.
2. Comprehensive Greenhouse Gas Fee
A fee on emissions from all energy sources is the most effective single policy tool available to reduce emissions and could provide a much-needed source of revenue. This revenue could be used to protect the most vulnerable households from price changes due to policy, provide adaptation funding, incentivize smart land-use practices, upgrade the electrical grid, and fund research and development.
3. Energy Incentives Restructuring
Providing incentives for bio-sequestration, removing the corn ethanol standard, eliminating fossil fuel subsidies, issuing no new nuclear subsidies, and allowing free competition for federal loan guarantees will ensure fairness in energy markets and encourage the deployment of risk-averse climate solutions.
4. National Green Bank
Such a bank would reduce interest rates for investments in emissions reducing technologies and help leverage private capital. This will reduce the cost of these technologies at no net cost to taxpayers and with savings for ratepayers.
5. Supply-Side Fossil Fuel Regulations
President Obama can use his executive authority to reject major projects that will significantly worsen emissions. He can also ensure that leases of fossil fuels on federal lands are valued to reflect the true costs of combustion.
6. Presidential Commission on the Unfolding Climate Crisis & Our Energy Future
Lastly, our report argues that President Obama hasn’t done enough to engage the American public or Congress on climate solutions like the types we outline in The Plan. While we recognize the limits of Presidential Commissions, we believe that Presidential engagement will be helpful in moving the politics forward.
We acknowledge that changing the course of U.S. energy policy will be no easy task, but the opportunity to take bold climate action is too good to pass up. The U.S. has come to a fork in the road: we can either continue marching down the path that relies on dangerous technologies with insufficient potential to avert the worst effects of climate change, or take the road paved with American leadership and ingenuity that will bring us true energy independence and help to maintain a safe climate. The Plan will put us on the latter.
Matt Lichtash graduated from Wesleyan University in May 2013 with degrees in Economics and Environmental Studies. His co-authors are Evan Weber, who also graduated from Wesleyan in May 2013 with degrees in Economics and Environmental Studies, and Dr. Michael Dorsey, a visiting professor at Wesleyan and the director of Dartmouth College’s Climate Justice Research Project.
After plans moved forward to retire the coal-fired generators at the Big Sandy Power Plant outside Louisa, Kentucky, the question remained, what does it mean for the energy future of eastern Kentucky?
The answer came to light last week when the state Public Service Commission approved an agreement between the Sierra Club and American Electric Power (AEP) that will help expand clean energy in the region. AEP's subsidiary, Kentucky Power, has agreed to invest in clean energy programs with a special focus on low-income community developments in Lawrence County, which sits on the eastern edge of the state next to West Virginia.
"This is an important moment in Kentucky’s history -- a win for public health and the dawn of a new economic era," said Alice Howell, chair of the Cumberland Chapter of the Sierra Club in Kentucky. "However, the impacts of this economic transition go beyond this one case. It is critical that we continue to look for ways to work with the governor to support clean energy investments in eastern Kentucky to help replace coal-related jobs."
The agreement commits Kentucky Power to increase energy-efficiency investments over the next five years, from $3 million this year to $4 million in 2014, $5 million in 2015, and $6 million per year from 2016 to 2018. These in-state energy-efficiency investments will bring jobs directly into the Kentucky Power service areas while decreasing the total energy consumption of eastern Kentucky. The deal includes 100 megawatts of wind energy in Kentucky Power's upcoming planning process, which acts as a "blueprint" for the company's electricity source for the next few years.
Many in Kentucky are ready for a change in an area traditionally dominated by Big Coal interests. Earlier this year, an estimated 1,500 Kentuckians rallied at the state capitol building to celebrate I Love Mountains Day. A month later, activists won a huge victory in Trimble County when a utility's plan to turn a cave into a coal ash pit was blocked. The cave in question was part of the Underground Railroad used by slaves seeking freedom during the 1800s.
The latest developments concerning Big Sandy Power Plant mean that Kentucky Power Company has pledged $1.1 million total toward economic development in low-income communities in Lawrence County and surrounding areas. At least one-third of that money will be used for job training, with a focus on weatherization and energy-efficiency training.
"Investing in wind power is an investment in the future of Kentucky’s economy," said Alex DeSha, a community organizer with the Sierra Club. "When we spend our energy dollars upgrading our power to clean, renewable energy sources, what we're really doing is investing in American workers and public health. Adding opportunities for clean sources of energy will diversify our energy mix and help stabilize electricity costs for Kentucky families."
-- Brian Foley
Washington, D.C. public charter schools will soon have a sunnier future. District Community Solar (DCS), a solar energy development partnership comprised of Sustainable Capital Advisors and the Youngblood Capital Group, is currently working in conjunction with The Arts and Technology Public Charter School (ATA) to complete a solar schools project.
The Foundation for Environmental Education defines a solar school as “a solar electricity installation at any type of school or education center that uses the solar energy system as a teaching tool and hopefully is designed so the panels are visible from the school grounds.”
DCS plans to do just that. DCS is in the final stages of an agreement with ATA, and come December, DCS will finish construction of a solar power plant at the school’s campus. The power plant will be built at no upfront cost to the school, and the energy produced at the plant will be sold to the school at a discounted price. The power plant is expected to produce up to 65 percent of the energy needs of the school each year.
In addition to the money saved on energy bills (about $10,000 per year), there is “an infinite return on investment,” said Hugh Youngblood, chief executive at the Youngblood Capital Group. The school can expect to appreciate the environmental and social benefits, he continued.
The plan is not to just simply build a solar power plant at the school and sell the energy produced. This three-part plan seeks to present educational opportunities, foster community development, and promote energy savings.
DCS has been working in conjunction with the Three Birds Foundation, a local nonprofit organization dedicated to educating students about renewable energy, to create curriculum for schools that incorporates renewable energy education. Teachers will be able to adapt their current curriculum to include the new information from free resources available online, such as and the Three Birds Foundation will help find additional resources as well as provide teacher workshops and after school sessions. Students will receive renewable energy education both in and out of the classroom through the new curriculum as well as engagement during construction and operation of the solar power plant. Students will be able to see the solar power plant construction, ask questions, and learn about it in the classroom.
Youngblood explained that one of the major goals of DCS is help children get exposure to the production and use of renewable technology. In turn, the children will be able to take that exposure and the knowledge they gain through renewable education and use it for the rest of their lives.
This plan for the campus will also affect the community as DCS works with City First Enterprises, a non-profit company focused on community development solutions. DCS hopes to work with the Sierra Club and local government to expand outreach and opportunities for involvement to community members.
Youngblood explained that community members will be given the opportunity to enhance green workforce skills by potentially shadowing contractors and learning about renewable energy.
“It has a big demonstration effect,” Youngblood said. “Community members will be able to see the solar
power plant being built, be able to ask questions, and have a learning benefit.”
“The public is for renewable energy,” the Three Birds Foundation said in an email. “Principals, teachers, parents, and students have all reacted positively to the development of renewable energy programs.”
DCS primarily focuses on schools and nonprofit community institutions in Wards 5, 7, and 8 in D.C. and seeks to reduce operating costs and environmental impacts, educate teachers and students on sustainability, and develop a local energy workforce. The focus is on areas most in need of social, economic, and environmental development.
“Schools are focal points and conversation starters in the community,” the Three Birds Foundation continued in their email. “ This will generate positive conversation around sustainability. These projects also help to develop community identity around renewable energy.”
ATA will be the first school upgrade for the newly established DCS, but the future looks bright. Youngblood explained that the company plans to expand to other public charter schools in the D.C. area, then move to Baltimore, and perhaps work on international development after that. The company also hopes to start storing solar energy created at the power plants so that the schools can be used in the event of a disaster or major weather event. The school could then act as a shelter with a reliable source of energy.
“We’re always looking for more partners,” Youngblood said. “And we’re looking for any other new opportunities.”--Cindy Carr, Sierra Club Media Team Intern