Energy Information Administration Publishes Early Release of 2016 Annual Energy Outlook

Posted on May 17, 2016 by Amber Martin

The Energy Information Administration (EIA) today unveiled an early release of its 2016 Annual Energy Outlook (AEO).  The early release includes a summary of EIA’s analysis of two projections of energy-sector production, consumption, and emissions—the first, a “Reference Case” based on a business-as-usual trend estimate given known technology and technological and demographic trends and assuming Clean Power Plan (CPP) compliance through mass-based standards, and the second, a “No CPP” case which is also based on a business-as-usual trend estimate but assumes that the CPP is not implemented.

Both cases project that electricity-related carbon dioxide emissions will remain well below 2005 levels going forward, due to expected lower natural gas prices, lower technology costs for wind and solar combined with extended tax credits, and reduced coal generation.  While the No CPP case demonstrated a decline in electric-sector carbon dioxide emissions, the Reference Case reflected an additional 20% reduction in carbon emissions.  The findings follow EIA’s report last week that 2015 electric-sector carbon dioxide emissions were the lowest since 1993.

Other notable takeaways from the AEO include projected steady declines in energy intensity, carbon intensity, and per-capita energy use, and steady increases in electricity prices through 2040.  In addition to the electric sector, the AEO also explores projections related to natural gas and petroleum pricing and production.  Detailed data tables and online graphic tools are available here.

The full 2016 AEO is expected July 7, 2016, and will include additional cases and discussion.

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Clean Power Plan Oral Argument Postponed to be Heard in September by the Full Court

Posted on May 16, 2016 by Anjali Patel

Earlier this evening, the D.C. Circuit issued a per curiam order* rescheduling oral argument in West Virginia from June 2 to September 27, 2016 and stating that arguments will now be held before the en banc court.  In other words, all active D.C. Circuit judges will hear oral argument instead of the originally assigned three-judge panel.

Under “usual” federal appellate court practice, cases are heard in the first instance by a three-judge panel.  After the panel issues its decision, the non-prevailing party may choose to petition the court for en banc review.  The standard for granting such a review is high. While it is not unheard of for a court to decide on its own motion to hear an appeal en banc, it is rare.

The D.C. Circuit’s order is silent as to why it decided to forego its normal practice and hold oral argument before the en banc court.  The court may be trying to fast track review to shorten the rule’s path to the Supreme Court, or it may be trying to consolidate its workload on the theory that en banc review is inevitable. Or maybe it is trying to accomplish a bit of both.

The court states that it will be issuing a separate order regarding allocation of argument time.  It remains to be seen whether the court will follow the petitioners’ proposed five hour oral argument schedule, EPA’s proposed shorter schedule, or will issue something entirely different.

*Neither Chief Judge Garland (who is not participating in cases or matters while his Supreme Court nomination is pending) nor Circuit Judge Pillard participated in the matter.

 

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FERC Seeks Input on Energy Storage Participation in Regional Markets

Posted on May 12, 2016 by Anjali Patel

It is widely believed that energy storage will be needed in order to increase the penetration of zero-carbon generation into the nation’s energy portfolio.  FERC is seeking information on changes that might be needed to support the integration of storage into organized energy markets.  In November 2015, FERC sponsored an energy storage panel at its monthly Commission meeting (see Item A-4), and at its last Commission meeting in April 2016, FERC staff announced that docket AD16-20-000 has been opened to collect information on existing barriers, if any, to the participation of electric storage resources in organized wholesale markets (i.e. the RTOs/ISOs) and to assess potential tariff changes to address such barriers.

Each of the existing RTOs/ISOs (i.e. California ISO, ISO New England, Midcontinent ISO, New York ISO, Southwest Power Pool, and PJM Interconnection) have been requested to respond by May 16, 2016 to data requests on these issues.  Specifically, the data requests:

 seek[] information on rules that affect the participation of electric storage resources in the . . . markets, including, but not limited to, the eligibility of electric storage resources to participate in the . . . markets, the qualification and performance requirements for market participants, required bid parameters, and the treatment of electric storage resources when they are receiving electricity for later injection to the grid.

FERC has also invited stakeholders to comment on storage-related market issues, including whether market tariffs are sufficiently clear to facilitate the participation of electric storage resources, whether ISO/RTO technical requirements erect barriers to participation, and whether existing bid parameters allow storage to efficiently participate in the markets.  Stakeholder comments are due by June 6, 2016.

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EPA Issues Methane Standards and a Draft Information Request

Posted on May 12, 2016 by Anjali Patel

Earlier today, EPA released three final rules aimed at further reducing greenhouse gas emissions:

  • Oil and Natural Gas Sector: Emission Standards for New, Reconstructed, and Modified Sources establishes standards for methane, volatile organic compounds (VOCs), and toxic air pollutant emissions from new, modified, and reconstructed equipment, processes, and activities of oil and natural gas sources. Affected sources include “fugitive emissions from well sites and compressor stations” and “equipment leaks at natural gas processing plants,” two categories that are unregulated under current regulations. EPA’s fact sheets on the rule are available here.
  • Source Determination for Certain Emission Units in the Oil and Natural Gas Sector clarifies EPA’s air permitting rules as they apply to onshore oil and natural gas industry and defines the conditions under which oil gas equipment and activities will be deemed a single source for determining whether major source permitting programs apply.  EPA’s fact sheet is available here.
  • EPA also issued a rule establishing a federal implementation plan for certain true minor sources located in Indian country related to the oil and natural gas sector.  EPA’s fact sheet is available here.

In addition to the three final rules, EPA also issued a draft information collection request.  In the request, EPA states that it plans to collect information related to existing oil and natural gas facilities in order to develop regulations to reduce methane emissions from existing sources.  Currently EPA is seeking comment on its proposed information collection methodology.

While the oil and gas industry rules may not directly affect the power sector, the implementation of the rules could affect the economics of energy generation and Clean Power Plan compliance.

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DOE Launches Its First Podcast

Posted on May 10, 2016 by Jeff Bayne

While podcasting began in 2004, the medium first generated widespread attention in the fall of 2014 with the breakout success of Serial.  This week, the Department of Energy (DOE) joined the world of podcasting, launching its own podcast called Direct Current.  As Marissa Newhall, director of digital strategy and communications at the DOE, explains, Direct Current will tell long-form audio stories about how the DOE is spending tax dollars to strengthen the country and economy.

The debut episode, “Tackling the Hidden Costs of Rooftop Solar,” provides an audio history of the DOE (plus podcast-based energy puns) before delving into its main story on the various “soft costs” of going solar.  Soft costs are all of the expenses of getting solar up and running beyond the cost of the equipment itself.  This can include installation, the cost (and time) of the permitting process, and connection fees.  The DOE explains that these soft costs comprise nearly two thirds of the total costs of rooftop solar.

The story also illustrates one of the challenges of grid modernization: coordinating among the various local, state, federal, and private entities involved the today’s electric grid and its policies.  Local jurisdictions often have wide-ranging permitting processes (if there is a process in place at all) and state policies also differ greatly, such as on net metering.  The podcast interviews several employees in the SunShot Initiative at the DOE, which is working to bring together the various actors in the field of solar energy to facilitate coordination and reduce soft costs.  One of the goals of the SunShot Initiative is to enable those seeking to go solar to go from permitting to interconnection in just seven days.

The DOE has not indicated when episode two of Direct Current will be released, but it has promised stories from microgrids to super-sized wind turbines, with an emphasis on the people behind these technologies and policies.

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