[USA] 15 states and D.C. announce joint MOU to accelerate bus and truck electrification

In a press release on July 14, 2020 by the Northeast States for Coordinated Air Use Management (NESCAUM), a nonprofit association of air quality agencies in the Northeast, governors from 15 states and the mayor of Washington, D.C.[1] announced a memorandum of understanding (MOU) committing to zero-emissions vehicles (ZEV) in 100% of medium- and heavy-duty sales by 2050 and interim target of 30% electric vehicle (EV) sales by 2030.[2][3] Collectively, these states account for nearly 50% of the U.S. economy and about 40% of goods moved by truck (by value).[4] To meet the targets of the MOU, key policies, including the Advanced Clean Truck Rule (California’s  zero-emission commercial truck requirement) and investments in electric vehicle charging infrastructure, are identified in the MOU.

The participating locations will work through NESCAUM’s Multi-State ZEV Task Force to develop a roadmap to increase electric vehicle supply, encourage zero-emission vehicle purchases, and establish a supportive ecosystem comprised of a trained workforce, charging infrastructure, and financing tools. The Multi-State ZEV Task Force’s 2018 action plan focused on light-duty vehicles. Under the MOU, the task force will focus on developing a plan for heavy duty vehicles like trucks and buses in the next six months.

[1] Participating locations: California, Colorado, Connecticut, Washington D.C., Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Washington, and Vermont

[2] https://www.nescaum.org/about-us/newsroom/#

[3]http://d31hzlhk6di2h5.cloudfront.net/20200714/dc/3a/2b/58/794e750e808dd4a82ae402dd/MHDV_ZEV_MOU_7-14-20.pdf

[4] https://www.nrdc.org/experts/patricio-portillo/15-states-take-historic-action-transportation-pollution

[USA] Department of Homeland Security announces plan for securing critical infrastructure against cyberattacks

On July 7, 2020, the Department of Homeland Security's Cybersecurity and Infrastructure Security Agency (CISA), the federal civilian agency responsible for advising critical infrastructure (CI) partners on how to manage industrial control systems (ICS) risk, revealed a five-year plan titled Securing Industrial Control Systems: A Unified Initiative FY 2019–2023 to address the challenges posed by protecting critical infrastructure networks from hackers.[1] ICS is a term used to describe different types of control systems which include the devices, systems, networks, and controls used to operate or automate industrial processes. ICS underpin everything from power grids to oil and gas pipelines. According to CISA, cyberattacks on ICS can "result in significant physical consequences, including loss of life, property damage, and disruption of the essential services and critical functions upon which society relies.” CISA’s plan lays out a four-part initiative to secure ICS against cyber threats. The four parts are: (1) deepen existing partnerships while expanding the scope of activities with the broader ICS community; (2) develop and use technology to mature ICS cyber defense; (3) build “deep data” capabilities to analyze and deliver information the can be used to disrupt cyberattacks; and (4) enable informed and proactive security investments by understanding and anticipating ICS risk.

[1] https://www.cisa.gov/publication/securing-industrial-control-systems

[USA] Sunrun strikes deal to acquire Vivint Solar for $1.46 billion

Sunrun, the largest residential solar company in the U.S., announced on July 6, 2020 that it has struck a deal to acquire residential energy competitor Vivint Solar, the second largest residential solar company in the U.S., for about $1.46 billion in an all-stock deal, a type acquisition where shareholders of the acquired company receive shares in the acquiring company as payment rather than cash.[1] Sunrun offers energy storage and grid services, working directly with utilities and grid operators. Vivint targets customers through direct-to-home sales which eases customer access to services and drives product purchases. Sunrun shareholders will hold about 64% of the combined company. The deal is expected to deliver about $90 million in annual cost savings between the companies. Based on Sunrun’s stock price on July 6, 2020, the combined entity will be valued at approximately $9.2 billion. In a statement regarding the acquisition, Sunrun said, "We expect to benefit from efficiencies in large scale project finance capital raising activities and are excited about the opportunity to build an even stronger and more recognizable consumer brand in residential energy services.”

[1] https://investors.sunrun.com/news-events/press-releases/detail/207/sunrun-announces-definitive-agreement-to-acquire-vivint

[USA] Duke and Dominion cancel Atlantic Coast Pipeline amid ongoing legal battles

On July 5, 2020, Duke Energy and Dominion Energy announced that they are cancelling the Atlantic Coast Pipeline—originally slated to run 600 miles from West Virginia to eastern North Carolina to provide additional natural gas capacity in the region—due to ongoing delays and cost uncertainty.[1][2] The Atlantic Coast Pipeline project has run into several legal challenges which has increased cost estimates from $4.5 billion to $8 billion. In June 2020, the Supreme Court ruled 7-2 overturning a lower court’s decision to block the pipeline from crossing beneath the Appalachian Trail, a protected national scenic trail overseen by the U.S. Forest Service. Despite this win, Duke and Dominion pointed to other legal battles as barriers to the project. In particular, the U.S. District Court for the District of Montana decision to overturn federal permit authority for waterbody and wetland crossings and a Ninth Circuit ruling on May 28, 2020 are stated as major concerns.

In addition to the announcement regarding the Atlantic Coast Pipeline, Dominion announced the sale of its natural gas transmission and storage assets to a Berkshire Hathaway affiliate for $9.7 billion.[3] However, this sale does not include Dominion's interest in the Atlantic Coast Pipeline.

[1] https://news.duke-energy.com/releases/dominion-energy-and-duke-energy-cancel-the-atlantic-coast-pipeline

[2] https://news.dominionenergy.com/2020-07-05-Dominion-Energy-and-Duke-Energy-Cancel-the-Atlantic-Coast-Pipeline

[3] https://news.dominionenergy.com/2020-07-05-Dominion-Energy-Agrees-to-Sell-Gas-Transmission-Storage-Assets-to-Berkshire-Hathaway-Energy-Strategic-Repositioning-Toward-Pure-Play-State-Regulated-Sustainability-Focused-Utility-Operations

[USA] House Democrats release new proposal to address climate crisis

On June 20, 2020, Democrats in the House Select Committee on the Climate Crisis released a comprehensive proposal called the Climate Crisis Action Plan which establishes a goal of reaching net-zero greenhouse gas (GHG) emissions in the United States by 2050; directs the president to set ambitious interim targets to meet or exceed that goal; and calls for achieving net-negative GHG emissions after 2050.[1] The report recommends investments in infrastructure; investments in clean energy and decarbonization technologies; and decarbonization of the transportation and electricity sectors. The report does not directly recommend an end to natural gas fracking or coal-fired power. It also leaves the door open for carbon capture technology and nuclear power to play a role in a net zero-carbon grid.

The majority staff for the Select Committee previewed its draft policy recommendations with Energy Innovation: Policy and Technology LLC (Energy Innovation), a nonpartisan think tank. Energy Innovation modelled the emissions reductions and co-benefits from implementing a subset of the Select Committee’s recommendations. According to Energy Innovation, the Select Committee majority staff’s policy recommendations will set the country on a path to achieving net-zero greenhouse gas emissions by 2050.

[1] https://climatecrisis.house.gov/sites/climatecrisis.house.gov/files/Climate%20Crisis%20Action%20Plan.pdf

[USA] U.S. Department of Commerce recommends tariffs on wind tower imports from four countries

On June 30, 2020, the U.S. Department of Commerce announced the results of its antidumping duty and countervailing duty investigations into importers of wind towers from Canada, Indonesia, South Korea (antidumping only), and Vietnam.[1] According to the Department of Commerce, importers of wind towers from these countries sold their products at less than fair value in the United States. Antidumping duties prevent products manufactured overseas from being sold by foreign firms in the U.S. at "less than fair value.” Countervailing duties attempt to offset the subsidies that foreign governments provide for some exporting firms by imposing duties on the goods exported to the U.S. According to the Department of Commerce, the four countries combined accounted for about 76% of all imported utility-scale wind towers in 2019, or about $350 million worth. The Department of Commerce recommended tariffs ranging from roughly 5% (Korean imports) to 66% (Vietnamese imports) of the value of the imports. Those fees would go into effect if the U.S. International Trade Commission decides to support the recommendation in August 2020.

The Department of Commerce investigation stems from a request made in July 2019 by the Wind Tower Trade Coalition (WTTC), which argued that imports were undercutting U.S. producers. However, a majority of the wind industry oppose the request. The American Wind Energy Association (AWEA) has warned that the request would raise the average cost of wind turbines by 10% to 18%.[2]

[1] https://www.trade.gov/press-release/us-department-commerce-finds-dumping-and-countervailable-subsidization-imports-0

[2] https://www.awea.org/Awea/media/Resources/Fact%20Sheets/AWEA_Tariffs-Put-Jobs-at-Risk-FINAL.pdf

[USA] Dominion announces successful installation of 2nd offshore wind farm in United States

Dominion Energy announced on June 29, 2020 that it has successfully installed its two turbine, 12-megawatt Coastal Virginia Offshore Wind (CVOW) pilot project 27 miles off Virginia Beach.[1] The CVOW pilot project is the first offshore wind farm to be installed in federal waters and is the second offshore wind farm in the United States. The CVOW pilot project—engineered and constructed by the world's largest offshore wind developer, Ørsted A/S—is currently undergoing testing and is anticipated to come online by the end of summer 2020. According to Dominion, the pilot will provide enough power at peak capacity to power 3,000 homes. The pilot project lays the groundwork for a separate Dominion 2,600-MW proposal which will be built in multiple phases about 30 miles from Virginia Beach starting in 2024 and generate enough power for 650,000 homes. In a statement, Dominion Energy Chairman, President and CEO Thomas F. Farrell, II said, "The construction of these two turbines is a major milestone not only for offshore wind in Virginia but also for offshore wind in the United States.” He also emphasized the importance of the pilot for bringing new clean energy jobs to Virginia, which Virginia Governor Ralph Northam echoed in his own statement.

[1] https://news.dominionenergy.com/2020-06-29-Dominion-Energy-Completes-Construction-of-First-Offshore-Wind-Project-in-U-S-Federal-Waters

[Japan] Japan’s Ministry of Economy, Trade, and Industry Issued an Interim Report on the Post-2020 Infrastructure Systems Export Strategy

On May 21, 2020, Japan’s Ministry of Economy, Trade, and Industry (METI) announced that the Roundtable Panel for the Post-2020 Infrastructure Systems Export Strategy had published its interim report. The interim report includes the results of discussions from the two sessions held by the panel on April 24, 2020 and May 11, 2020. The panel discussed Japan’s current position in the global market. The panel also discussed strategies for promoting the export of electricity and energy infrastructure systems moving forward, considering the global economy, environmental issues, and the new challenges introduced by COVID-19. The panel consists of members from industry, government, and experts in the fields.

The report noted that access to a stable electricity supply is increasing in global importance. In the short-term, the outbreak of COVID-19 has accelerated the digitalization of society as more people work remotely and rely on online services, which has increased the demand for electricity. In the medium to long term, the electricity demand will continue to grow primarily in the Asia Pacific due to regional population and economic growth.

There will be a shift to renewable energy and distributed energy resources globally. However, it is expected that many emerging countries will continue to rely on fossil fuels to meet their electricity demand. The report also noted that the market environment for sustainable energy solutions will become increasingly competitive as the interest in SDGs (Sustainable Development Goals) rises. 

Recognizing the increasing competition in the global market, the report provided a potential approach for the Japanese government and industry to support energy and electricity infrastructure systems exports. It addressed the importance of strengthening public and private partnerships in order to put forward projects that cater towards each country’s energy and sustainability goals in terms of technology solutions, infrastructure, capacity building, and financing. The report recommends that Japanese industry members should accelerate their renewable energy systems exports and focus on Japan’s competitive areas, such as offshore wind and consumer energy solutions. The report also identified other potential areas for opportunities, including hydrogen utilization, CCS (Carbon Capture and Storage), energy efficiency, and advanced coal fired technologies.[1] [2] [3]

[1] https://www.meti.go.jp/press/2020/05/20200521001/20200521001-1.pdf

[2] https://www.meti.go.jp/press/2020/05/20200521001/20200521001.html

[3] https://www.meti.go.jp/english/press/2020/0521_003.html

[USA] West Coast utilities propose charging stations for electric trucks along I-5 and connected highways

In a report issued on June 17, 2020 through the West Coast Clean Transit Corridor Initiative, nine West Coast utilities and two agencies representing 24 municipal utilities[1] have recommended electric-charging stations for trucks every 50 miles along Interstate 5 (I-5) and connecting highways.[2] [3] According to the report, the first phase would build 27 sites along I-5 for medium-duty electric vehicles (EVs) by 2025. By 2030, 14 of those charging sites would be expanded to also accommodate heavy duty EVs. The report says that by 2030, 8% of all trucks on the road in California are expected to be electric. Sixteen of the sites will be in California, five in Oregon, and six in Washington. The report found that the plan could take years because rural areas do not have the generating capacity for charging medium-duty EVs and no rural area along I-5 can serve heavy-duty EVs so infrastructure to provide these services have to be built. However, most utilities in urban areas have the ability offer medium-duty EV charging.

The report recommends expanding state, federal, or private programs that provide funding for electrification. Several utilities in California like Pacific Gas & Electric Company (PG&E) and Southern California Edison (SCE) have programs that support the adoption of electric trucks, but more support will be needed for the report’s recommended infrastructure.

[1] Los Angeles Department of Water & Power (LADWP), Northern California Power Agency (NCPA), Pacific Gas and Electric Company (PG&E), Pacific Power, Portland General Electric (PGE), Puget Sound Energy (PSE), Sacramento Municipal Utility District (SMUD), San Diego Gas & Electric (SDG&E), Seattle City Light (SCL), Southern California Edison (SCE), and Southern California Public Power Authority (SCPPA)

[2] https://westcoastcleantransit.com/resources/WestCoastCleanTransitNewsRelease-Website.pdf

[3] https://www.westcoastcleantransit.com/#resources-section

[USA] FERC issues white paper considering incentives for voluntary cybersecurity investments

On June 18, 2020, the Federal Energy Regulatory Commission (FERC) released a white paper on transmission incentives for utilities making cybersecurity enhancements to the electric grid.[1] The white paper asks stakeholders to address a variety of questions, including whether a project- specific return on equity (ROE) for voluntarily employing cybersecurity enhancements is enough to incentivize investments that exceed the requirements of the Critical Infrastructure Protection (CIP) Reliability Standards. For non-ROE incentives, the white paper proposes that cybersecurity investments be eligible for Construction Work in Progress, recovery of abandoned plant costs, and accelerated depreciation which are the same incentives offered under FERC’s electric transmission incentives policy. Construction Work in Progress incentives allow a party to record the current costs related to long-term projects. Recovery of abandoned plant costs is the ability of an entity to recover costs if the project is canceled for reasons beyond the entity's control. Accelerated depreciation allows for greater tax deductions in the early years of an asset. The white paper requests comments on the paper within 60 days and reply comments within 75 days.

[1] https://www.ferc.gov/sites/default/files/2020-06/notice-cybersecurity.pdf

[USA] Report: U.S. local governments signed 335 renewable energy deals since 2015

According to data released on June 17, 2020 from the Local Government Renewables Action Tracker, local governments have signed 335 deals to procure 8.28 gigawatts (GW) of renewable energy in the last five years.[1] [2] That figure is more than the total combined energy generation capacity of Alaska, Hawaii, Rhode Island, and Vermont. A few of the largest deals from the last five years include a 50 MW solar deal by Sanford, Maine, and a 100 MW deal by Cincinnati, Ohio. The Local Government Renewables Action Tracker was created by the American Cities Climate Challenge Renewables Accelerator, an initiative that supports Bloomberg Philanthropy’s cities renewable program, to show and support the growing shift by local governments toward clean energy. The tracker has two primary components: a transaction map that shows all renewable energy transaction implemented by local governments from January 1, 2015 to March 31, 2020; and an engagement map that details the efforts those governments have made to advance their renewable goals.

[1] https://www.wri.org/news/2020/06/release-us-local-governments-lead-way-clean-energy-transition

[2] https://cityrenewables.org/local-government-renewables-action-tracker/

[USA] Vectren Energy announces plans to reduce coal mix 78% to 12% by 2025

On June 15, 2020, Vectren Energy, a subsidiary of CenterPoint Energy based in Indiana and parts of Ohio, announced it would retire 730 MW of coal by 2030 which would bring its resource mix to 12% coal-fired power by 2025.[1] As of 2020, the utility’s generation portfolio is 78% coal. Under Vectren’s preferred integrated resource plan (IRP), which is based on an all-resource request for proposals, the utility would add 700 MW to 1000 MW of solar+storage, 300 MW of wind, 30 MW of demand response resources and 460 MW of combustion turbine natural gas plants. In total, the mix would be 64% renewable energy plus demand response by 2025. According to Vectren, the proposed plan is expected to reduce greenhouse gas emissions (GHG) 75% below 2005 levels by 2035 and save customers up to $320 million over the next 20 years.

In recent years, the utility has been under pressure from state legislators to keep Indiana coal online. In 2019, Indiana lawmakers proposed legislation that would place a moratorium on new resources in the state in order to protect coal-fired power from getting replaced.[2] Though the bill failed in the 2019 legislative session, in early 2020 lawmakers passed House Bill 1414 which makes coal plants in the state more difficult to retire.[3] Vectren’s new plan, though, bucks these pressures.

[1] https://www.centerpointenergy.com/en-us/corporate/about-us/news/1348

[2] http://iga.in.gov/documents/b14c355b

[3] https://legiscan.com/IN/bill/HB1414/2020

[USA] Supreme Court reverses lower court decision, allows construction on Atlantic Coast Pipeline

On June 15, 2020, the Supreme Court issued a 7-2 ruling reversing a lower court decision on Atlantic Coast Pipeline LLC v. Cowpasture River Preservation Association which stopped construction on the $7.4 billion, 600-mile Atlantic Coast Pipeline (ACP) owned by Duke Energy and Dominion Energy.[1] The Supreme Court ruling gives the U.S. Forest Service, an agency of the U.S. Department of Agriculture that administers U.S. national forests and grasslands, the authority to grant the ACP developers right of way on the project because it goes over 600 feet underground across a portion of the Appalachian Trail, which is part of the National Park System. This does not necessarily mean that the U.S. Forest Service will approve the project. Critics of the pipeline say that the pipeline still has other hurdles in its path and the decision is not a definitive greenlight for the project. However, both utilities issued statements that the ruling is "an affirmation for the Atlantic Coast Pipeline."

The Supreme Court ruling will also affect the Mountain Valley Pipeline, a 303-mile project running from West Virginia to southern Virginia by crossing the Jefferson National Forest.[2] Construction on the nearly completed project was previously halted due to the Atlantic Coast Pipeline case.

[1] https://www.scotusblog.com/case-files/cases/atlantic-coast-pipeline-llc-v-cowpasture-river-preservation-association/

[2] https://www.mountainvalleypipeline.info/

[USA] Minnesota Power energizes Great Northern Transmission Line

On June 11, 2020, Minnesota Power, the state’s second largest investor-owned utility, energized its 224-mile, 500 kV transmission line, Great Northern Transmission Line (GNTL), that will bring the utility to 50% renewable energy in 2021.[1] The GNTL brings 250 MW of hydropower from Manitoba, Canada to Northern Minnesota and was completed in February 2020. With the GNTL energized and connected to Manitoba Hydro’s Manitoba Minnesota Transmission Project, the utilities now have a unique “mechanism that quickly balances energy supply and demand in Minnesota and Manitoba" which enables the utilities to use wind power more effectively. The utility first filed permits for the project in 2014. This is a big shift for Minnesota Power which generated most of its power from coal in the early 2000s.[2] Now, the only coal units in the utility’s portfolio are Boswell Energy Center’s 355 MW and 585 MW units 3 and 4, respectively.

[1]https://minnesotapower.blob.core.windows.net/content/Content/Documents/Company/PressReleases/2020/20200611_NewsRelease.pdf

[2] https://www.mnpower.com/Company/Generation

[USA] DOE announces $11 billion in energy cost-savings from Better Buildings Initiative partners

On June 9, 2020, the U.S. Department of Energy (DOE) announced the roughly 950 public and private sector organizations in DOE’s Better Buildings Initiative have reached nearly $11 billion in energy-cost saving.[1] [2] Better Buildings Initiative partners have also saved nearly 1.8 quadrillion British thermal units of energy (Btu), which is equivalent to the electricity consumption of 27 million homes in one year. Partners represent 32 of America’s Fortune 100 companies, 12 of the top 25 U.S. employers, 12% of the U.S. manufacturing energy footprint, and 13% of U.S. commercial building space. Of these partners, 20 reached their energy efficiency goals in the past year, including Bank of America, Michigan State University, and University of Utah. Other partners like Iron Mountain and Kohl’s Department Stores have previously reached their energy efficiency goals and have set new ones.

DOE’s Office of Energy Efficiency and Renewable Energy also announced four new Better Buildings efforts: the Better Buildings Workforce Accelerator, the Better Buildings Sustainable Corrections Infrastructure Accelerator, the Integrated Lighting Campaign, and the Building Envelope Campaign.[3] [4] [5] [6] These new programs aim to increase energy productivity, encourage investments in renewable energy and energy storage in public facilities, integrate advanced lighting controls in buildings, and help building owners and managers develop more energy-efficient building materials.

[1] https://www.energy.gov/articles/doe-announces-11-billion-energy-cost-savings-better-buildings-initiative-partners

[2]https://betterbuildingssolutioncenter.energy.gov/sites/default/files/attachments/DOE_BBI_2020_Progress_Report.pdf

[3] https://betterbuildingssolutioncenter.energy.gov/accelerators/workforce

[4] https://betterbuildingssolutioncenter.energy.gov/accelerators/corrections-infrastructure

[5] https://betterbuildingssolutioncenter.energy.gov/alliance/technology-campaigns/integrated-lighting-campaign

[6] https://betterbuildingssolutioncenter.energy.gov/alliance/technology-campaigns/building-envelope-campaign

[USA] Alabama regulators approve Southern Company’s request for nearly 2 GW of natural gas

On June 9, 2020, the Alabama Public Service Commission (PSC) unanimously voted to authorize Southern Company to buy, build, or contract for nearly 2 GW of natural gas resources to guarantee system resilience.[1] Previously, Alabama Power, a Southern Company subsidiary, had announced that it is switching from a summer-peaking to a winter-peaking system, and proposed several expansions in solar, energy efficiency, and natural gas for a total of about $1.1 billion. According to Alabama Power, the additions are part of a nearly 20% fleet capacity increase necessary for resilience. In addition to the approval of natural gas, about 200 MW of energy efficiency programs were approved. However, regulators did not approve the five proposed solar-plus-storage projects, stating that those resource additions should be considered on a separate docket not focused on resiliency.

The decision not to include solar-plus-storage has received backlash from environmental groups who claim that the solar-plus-storage projects would have saved customers more. According to Docket participants from Energy Alabama and the Southern Environmental Law Center, an environmental advocacy group and an environmental public interest law firm, respectively, Alabama Power’s analysis showed solar-plus-storage options were the least costly solution.[2]

[1] https://www.youtube.com/watch?v=XNRjWy1IgJo

[2] https://www.southernenvironment.org/news-and-press/press-releases/psc-approves-alabama-powers-1-billion-gas-expansion

[USA] FERC prohibits pipeline construction until legal issues are resolved

On June 10, 2020, the Federal Energy Regulatory Commission (FERC) issued an order prohibiting natural gas pipeline developers from beginning construction on a project until regulators act on rehearing requests.[1] The order partly addresses the issues raised during the D.C. Circuit Court of Appeals’ April 2020 en banc hearing, a hearing held in front all the judges in court, in Allegheny Defense Project v. FERC, which regards the Atlantic Sunrise Pipeline project to expand existing pipelines.[2] Under the Natural Gas Act (NGA), litigation is prevented until FERC makes a ruling on requests for rehearing, but FERC is capable of delaying those requests through tolling orders. Petitioners argued that the commission has been delaying requests for rehearing indefinitely while also allowing construction on pipeline projects to proceed. Critics say this practice has led to a legal purgatory of opposition to critical orders on wholesale markets which favors pipeline developers. FERC Commissioner Richard Glick dissented in part to the order, stating that although the order is a good first move, it does not address concerns that pipeline developers can still begin to condemn private land through eminent domain before the landowner is able to challenge the developer's ability to do so.[3]

[1] https://www.ferc.gov/CalendarFiles/20200609181333-RM20-15-000.pdf

[2] https://www.ferc.gov/legal/court-cases/briefs/2020/DC17-1098etalAlleghenyDefenseProject.pdf

[3] https://www.ferc.gov/media/statements-speeches/glick/2020/06-09-20-glick.asp#.XuKfvjpKg2y

[USA] Businesses, lawmakers urge federal investment and support of the clean energy sector

On June 2, 2020, two unrelated groups sent letters to Congressional leaders and lawmakers urging the government to increase support for the clean energy industry in the wake of the COVID-19 pandemic. In the first letter, 57 Democratic Senators and Representatives, led by Sen. Martin Heinrich, D-N.M., called for “additional flexibility” for energy tax credits in order to support the clean energy sector and work force.[1] According to the letter, the clean energy sector has seen a 17.4% decline in employment—nearly 600,000 jobs—compared to the April 2020 national unemployment rate of 14.7%.

The second letter included about 80 companies and organizations and proposed federal appropriations of $22 billion over five years to retrofit critical public facilities.[2] The group has also proposed $18 billion for state and local public buildings through the federal State Energy Program over five years, $2.5 billion for improvements to federal buildings through the Federal Energy Efficiency Fund, and $1.5 billion for energy efficiency improvements in public housing. The funding would go toward a range of efficiency and resilience measures. The letter claims that the federal funding could help leverage an estimated private investment of $88 billion to deliver a total of $110 billion in economic activity. Organizations signed on to the letter include: ConEdison Solutions, Constellation, DuPont Specialty Products USA, FPL Energy Services, Greentech Energy, Schneider Electric, Siemens Corporation USA, and the Sheet Metal and Air Conditioning Contractors National Association.

[1] https://www.heinrich.senate.gov/press-releases/heinrich-tonko-lead-bicameral-call-for-inclusion-of-clean-energy-workforce-support-in-covid-19-economic-recovery-packages

[2] https://www.documentcloud.org/documents/6935575-Mission-Critical-Facility-Renewal-Letter-to.html

[USA] DOE to provide $30 million to develop small-scale solid oxide fuel cell systems and hybrid energy systems

On May 29, 2020, the U.S. Department of Energy’s (DOE’s) Office of Fossil Energy (FE) announced up to $30 million in funding for cost-shared research and development projects for Small-Scale Solid Oxide Fuel Cell Systems and Hybrid Energy Systems.[1] The new funding supports the development of technologies that can advance the present state of small-scale solid oxide fuel cells (SOFC) hybrid systems, which produce electricity directly from oxidizing a fuel, using solid oxide electrolyzer cell (SOEC) technologies. The development of advanced technologies will increase the commercial readiness of hydrogen production and power generation. The funding will solicit applications for multiple areas of interest, corresponding to the research outline in DOE’s 2019 Congress report, Report on the Status of the Solid Oxide Fuel Cell Program.[2] The three primary areas of interest are small-scale distributed power generation SOFC systems, hybrid systems using solid oxide systems for hydrogen and electricity production, and cleaning process for coal-derived syngas to be used as SOFC fuel.

[1] https://www.energy.gov/articles/doe-provide-30-million-develop-small-scale-solid-oxide-fuel-cell-systems-and-hybrid-energy

[2] https://www.energy.gov/fe/report-congress-status-solid-oxide-fuel-cell-program

[USA] Energy efficiency continues to be cheaper than natural gas

According to new research released by the U.S. Department of Energy’s (DOE) Lawrence Berkley National Laboratory on May 13, 2020, natural gas energy efficiency programs through utilities saved energy at a cost of about $0.40/therm (1 therm is equal to 100,000 Btu) from 2012 to 2017.[1] [2] Compared to natural gas—which averaged about $1/therm—energy efficiency programs are significantly cheaper. Researchers also found that commercial and industrial (C&I) programs had the lowest savings-weighted average cost of gas savings ($0.18/therm) during the study period. However, C&I programs represented only about 20% of overall efficiency program spending. For residential and low-income program savings costs were $0.43/therm and $1.47/therm, respectively. Savings costs varied widely by geographic region. For instance, savings in the Midwest averaged $0.29/therm while in the West saving averaged $0.59/therm. The study says this is likely due to higher spending on low-income programs in the West, as well as differences in savings opportunities between cold and temperate regions.

In response to the study, many efficiency advocates claim there are even more savings to be had through the electrification of end-uses, but the study did not consider this in their analysis. Additionally, efficiency advocates say the natural gas industry may be building unnecessary infrastructure; the Natural Resources Defense Council says around 90% of proposed gas power plants and their respective pipelines will likely be unnecessary by 2035.[3]

[1] https://emp.lbl.gov/news/energy-efficiency-continues-be-cheaper

[2] https://eta-publications.lbl.gov/sites/default/files/cose_natural_gas_final_report_20200513.pdf

[3] https://www.nrdc.org/experts/sheryl-carter/energy-efficiency-still-abundant-and-cheaper-gas