Energy Efficiency

Crain’s Chicago Business: Oops! Exelon’s compromise energy bill nearly zeroes out green-power funding

When Exelon last week unveiled its new plan to preserve two Illinois nuclear plants in danger of closure, the company touted concessions to its traditional environmentalist adversaries, including $140 million in spending annually on new solar power projects in the state.

But when green groups and renewable power companies read the actual language of Exelon’s bill a few days later, it turned out the measure would only generate about $7 million a year. That would effectively kill Illinois’ clean-energy law, which has a goal of gradually boosting the state’s reliance on wind, solar and other renewable electricity sources over time.

Exelon acknowledged what environmentalists said about the bill language. But the company said that wasn’t its intention and maintained a drafting error was to blame.

The error, Exelon said in a statement, “already has been fixed to ensure all of (the bill’s) intended benefits, which include $140 million in new funding for solar, solar rebates for customers and increased energy efficiency, are fully included. The reality is that changes to legislative language are a normal part of the process to make corrections and incorporate negotiated changes into a pending bill, and we have submitted an amendment to correct the error.”

Not everyone in the green camp accepted the Chicago-based power-generation giant’s explanation.

And at the very least, the mistake exacerbates the lack of trust some enviros have in the intentions and word of a company that carries far more clout in Springfield on energy issues than any other company or organization in Illinois.

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ELPC’s Schmitz Represents NDARE at Briefing with Secretary of Energy

ELPC’s North Dakota-based Government Relations Specialist Mindi Schmitz, who also chairs the North Dakota Alliance for Renewable Energy (NDARE), participated in a clean energy business briefing with US Energy Secretary Ernest Moniz on April 26th in Washington, D.C. Schmitz attended the event at the invitation of the Pew Clean Energy Initiative.

Schmitz was one of nearly 40 business and clean energy leaders from 17 states in attendance at the briefing. In addition to the briefing, Schmitz met with staff from the North Dakota congressional delegation to reinforce the importance of renewable energy development in North Dakota and to discuss federal support for clean energy innovation.

Huffington Post: ELPC’s Learner Discusses Making A Greener Chicago

By Howard Learner

Chicago is becoming a “greener city,” but let’s recognize some key challenges and the need for solutions moving forward. Environmental progress is being achieved together with job creation and economic development. The old myth about jobs versus the environment is simply that: old and false. This Earth Day, we should be proud of what Chicago has accomplished and candid about some important environmental challenges still requiring solutions.

Wind Power: Illinois has leaped from no wind power in 2003 to more than 3,842 megawatts today. A decade ago, who thought that Illinois would become No. 5 in the nation for wind power capacity and that Chicago would now have 11 major wind power corporate headquarters?

Next Steps: Illinois policymakers should say “no” to Exelon’s opposition and finally modernize the Illinois Renewable Energy Standard, which helps drive wind power development. Let’s make it work well and advance Illinois’ national leadership in the restructured electricity market.

Solar Energy can be our next boom. The city and county are advancing policies to streamline solar energy installations by speeding up permitting and standardizing grid connections. Solar panel efficiencies are steadily improving — think about other rapid technological advances in smart phones, digital cameras and computer speeds — and becoming economically competitive. Solar energy is truly a disruptive technology, especially combined with battery technology improvements. It can succeed by installations on residential rooftops and commercial buildings’ spacious flat roofs, and can transform underutilized industrial brownfields into “solar brightfields” in Chicago.

Next Steps: Let’s seize the opportunities to accelerate solar energy by better using Chicago’s many flat rooftops on commercial, industrial and multifamily residential buildings for solar photovoltaic panel installations producing clean electricity? First, the Illinois Commerce Commission should remove regulatory barriers that protect monopoly utilities from competition. Second, the Commission and state legislators should adopt policies that better enable community solar projects for local businesses and neighborhood residents to join together in sharing clean energy resources. Third, if Argonne National Labs’ engineers and scientists achieve their goal of batteries that are five times more efficient at one-fifth the cost, that’s a game changer.

Energy Efficiency saves businesses and residential consumers money on their utility bills, avoids pollution, creates jobs and keeps money in Chicago’s economy. There’s a quiet revolution occurring with more energy efficient lighting, appliances, cooling and heating equipment, pumps and motors, and other technologies. Commonwealth Edison reports that electricity sales declined (-1.5 percent) in 2015 in Northern Illinois while the Chicago regional economy grew 2.5 – 3.0 percent. Chicago’s economy is growing, more efficiently.

Next Steps: Let’s make sure that homes in all Chicago neighborhoods gain energy efficiency benefits through job-creating retrofits that can reduce electricity and natural gas bills. Electricity waste costs businesses and people money and drains dollars out of the Chicago economy for the part of the utility bills spent on out-of-town uranium, coal and gas fuels. Let’s save money, boost our economy, create more installation jobs and reduce pollution. That’s a winner.

Public Transit: Chicagoans are driving less with fewer cars, but Chicago can’t be a greener “city that works” unless CTA is modernized. Chicago is looking to both innovative financing and new transportation approaches, including Bus Rapid Transit and Divvy bikes, in addition to upgrading the aging Red Line and other transit lines.

Next Steps: Let’s face it — no good public transit, no green city. Chicago’s public transit system must become faster and provide improved, more efficient passenger services. CTA is working on it. Mayor Emanuel, Senators Durbin and Kirk, and Congressmen Lipinski and Quigley are working hard to gain more federal funds for CTA modernization. That’s a priority and necessity.

Higher-Speed Rail: Chicago is the natural hub of the growing Midwest higher-speed rail network connecting Chicago and Milwaukee, Detroit and St. Louis, and the mid-sized cities in-between. Modern higher-speed passenger rail development will improve mobility, reduce pollution, create jobs and spur regional economic growth.

Next Steps: Modernize Union Station so it works well for intercity passenger rail, is attractive to new visitors and can be a multimodal hub connecting with CTA while anchoring West Loop commercial development. Let’s accelerate high-speed rail development here.

Great Lakes: The Great Lakes ecosystem is the Chicago region’s global gem, vital source of drinking water supply and place of recreational joy. The Obama Administration’s investment of about $2 billion in the Great Lakes Restoration Initiative is paying off. Water quality should improve as investments are made in upgrading treatment facilities, building green infrastructure, and restoring wetlands and habitat.

Next Steps: Water efficiency is more than 20 years behind energy efficiency. We can’t afford to waste fresh water that the rest of the world craves and values highly. Let’s make Chicago a water efficiency leader among the Great Lakes cities. Let’s also figure out savvy ways of using lower-cost greywater for industrial processes and save fresh water for drinking supply.

Chicago River: It’s our namesake river and should be a gem increasing recreational enjoyment and property values for all. There’s progress as the Metropolitan Water Reclamation District (MWRD) finally begins to disinfect its wastewater. The Chicago River, however, is still not “fishable and swimmable,” and there’s more cleanup to be done.

Next Steps: The new Chicago Riverwalk and river-focused development on both the north and south sides highlights and builds support for the importance of cleaning up the river as a safe place for recreational use and community enjoyment. MWRD should continue to step up its pollution reduction actions and equipment investments that pay off in clean water benefits for all.

Clean air, clean water, cleaner energy and fewer toxics are important values shared by all Chicagoans. This Earth Day, let’s be proud of our progress, and let’s seize opportunities to advance a cleaner, greener and safer community that works for all.

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Learner Op-Ed in Crain’s Chicago Business: Nine Smart Ideas for Making Chicago Greener

As published in the Crain’s Chicago Business on Wednesday, April 20, 2016.

Chicago is becoming a “greener city,” but let’s be candid about some key challenges and the need for solutions moving forward. Environmental progress is being achieved together with job creation and economic development. The old myth about jobs versus the environment is simply that: old and false.

Wind Power: Illinois has leaped from no wind power in 2003 to more than 3,842 megawatts today. A decade ago, who thought that Illinois would become #5 in the nation for wind power capacity and that Chicago would be now be home to 11 major wind power corporate headquarters?

Next: Illinois policymakers should say “no” to Exelon’s opposition and finally modernize the Illinois Renewable Energy Standard, which helps drive wind power development. Let’s make it work well and advance Illinois’ national leadership in the restructured electricity market.

Solar Energy: Our next boom. The City and County are advancing policies to streamline solar energy installations by speeding up permitting and standardizing grid connections. Solar energy is truly an improving disruptive technology, especially combined with battery technology improvements.

Next: How we can accelerate solar energy by better using Chicago’s many flat rooftops?  First, remove regulatory barriers that protect monopoly utilities from competition. Second, the Illinois Commerce Commission and Springfield legislators should adopt policies that better enable community solar projects for local businesses and neighborhood residents. Third, support Argonne National Labs’ goal of making batteries that are five times more efficient at one-fifth the cost. That’s a game changer.

Energy Efficiency:  There’s a quiet revolution occurring with more energy efficient lighting, appliances, cooling and heating equipment, pumps and motors, and other technologies.  Commonwealth Edison reports that electricity sales declined (-1.5%) in 2015 in Northern Illinois while the Chicago regional economy grew about 3.0%. Our economy is growing—efficiently.

Next:  Let’s make sure that homes in all Chicago neighborhoods gain energy efficiency benefits through job-creating retrofits that can reduce electricity and natural gas bills.

Public Transit: Chicago can’t be a greener “city that works” unless the CTA is modernized.

Next: Let’s face it—no good public transit, no green city. Chicago’s public transit system must become faster and provide improved, more efficient passenger services. CTA is working on it. Mayor Emanuel, Senators Durbin and Kirk, and Congressmen Lipinski and Quigley are trying to gain more federal funds for CTA modernization. That’s a priority and necessity.

Higher-Speed Rail: Chicago is the natural hub of the growing Midwest higher-speed rail network connecting Chicago and Milwaukee, Detroit and St. Louis, and the mid-sized cities in-between.

Next: Modernize Union Station so it works well for intercity passenger rail, is attractive to new visitors and can be a multimodal hub connecting with CTA while anchoring West Loop commercial development.

Great Lakes: The Great Lakes ecosystem is the Chicago region’s global gem, vital source of drinking water supply and place of recreational joy.  The Obama Administration’s investment of about $2 billion in the Great Lakes Restoration Initiative is paying off.  Water quality should improve as investments are made in upgrading treatment facilities, building green infrastructure, and restoring wetlands and habitat.

Next: Water efficiency is more than 20 years behind energy efficiency. We can’t afford to waste fresh water that the rest of the world craves and values highly.  Let’s figure out savvy ways of using lower-cost greywater for industrial processes and save fresh water for drinking. Let’s make Chicago a water efficiency leader among the Great Lakes cities.

Chicago River: Our namesake river should be a gem that increases recreational enjoyment and property values for all. There’s progress as the Metropolitan Water Reclamation District finally begins to disinfect wastewater.  The Chicago River, however, is still not “fishable and swimmable.”

Next: The new Riverwalk and river-focused development is helping build support for the importance of cleaning up the river. MWRD should continue to step up its pollution reduction actions and equipment investments that pay off in clean water benefits.

Clean air, clean water, cleaner energy and fewer toxics are important values shared by all Chicagoans. This Earth Day, let’s be proud of our progress, and let’s seize opportunities to advance a cleaner, greener and safer community that works for all.

Howard A. Learner is the executive director of the Environmental Law and Policy Center, the Midwest’s leading environmental and economic development advocacy organization.

 

Forbes: ELPC’s Learner Discusses the Ease of Being Green

By Jeff McMahon, Forbes

It’s not easy being green, Kermit the Frog lamented when he recorded the hit single “Bein’ Green” in 1970. But it’s getting easier as the flow of capital shifts from fossil fuels to renewable energy sources, a law and policy expert said in Chicago Friday.

“The flow of capital now is moving toward solar energy, retrofitting people’s homes, building wind power instead of building new coal plants,” said Howard Learner, president of the Environmental Law and Policy Center.

“That money, that ingenuity, that innovation will make it easier for people whether they’re in India getting light for the first time through a bulb, or in Chicago. That’s how we make a difference on this.”

The shift in capital, already underway, has accelerated since powerful financial interests put their money behind a new energy economy at the Paris Climate Conference.

“That’s what happened to some degree in Paris,” he said. “The money was put on the table in a very serious way by different coalitions, so that the changes that are happening—there’s money to facilitate and lubricate that globally.”

Meanwhile, he said, no one can get a loan to build a coal plant.

Learner pointed to the share price of Peabody Energy, the world’s largest private coal company, which he said has dropped from $74 five years ago, to the equivalent of 32¢ today, taking stock splits into account. Peabody warned investors Wednesday that it may go out of business.

“It’s lost more than 99 percent of its market value, so you’re going to begin seeing coal and oil stay in the ground as electricity use becomes more efficient. As renewables and efficiencies come into the market, there’s going to be less coal use here and abroad,” Learner said. “The process of bankruptcy is going to have some really bad implications, for communities, for workers, for mine reclamation, but one thing it’s going to do is it’s going to mean there’s less coal being mined.

“How do you keep fossil in the ground? The market for it is going away.”

In the next 20 years, 75 percent of the lights in Chicago will be LED lights, Learner predicted, a single technological innovation that alone will reduce the city’s energy consumption by 7.5 percent. It’s easy for consumers to buy the super-efficient LEDs because lightbulb manufacturers, like GE and Phillips, are shifting to LED, lightbulb retailers, like IKEA are shifting to LED, and the price of LED has dropped.

“If you go to buy a refrigerator you don’t have to buy the green one to get one that’s more energy efficient. Every refrigerator you look at will be 30 to 40 percent more efficient than the one it’s replacing,” Learner said. ”It doesn’t require everybody to decide, ‘I’m going to be green.’ They’re just going to save money.”

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Statement from Illinois Clean Jobs Coalition Re: U.S. Supreme Court’s temporary stay of Clean Power Plan

The Illinois Clean Jobs Coalition issued the following response to the U.S. Supreme Court’s issuing of a temporary stay on implementation of the EPA’s Clean Power Plan:

“While the U.S. Supreme Court may have temporarily delayed implementation, we believe the EPA’s Clean Power Plan (CPP) and the Illinois Clean Jobs Bill are the best ways to create thousands of jobs, cut electric bills and give Illinois clean air.

“We encourage Governor Rauner and the Illinois EPA to begin a stakeholder process that keeps Illinois from falling further behind other states in growing a strong clean energy economy once the court upholds the Clean Power Plan.”

ELPC is a member of the Coalition, which you can learn more about at www.ilcleanjobs.org.

Midwest Energy News: ELPC Standing Up for Consumers, Energy Efficiency Efforts in NIPSCO Rate Hike Case

An Indiana utility is requesting a fixed rate charge increase of more than 80 percent, even as nationwide utility commissions have denied or curbed many such requests and utilities in other states have backed off the strategy.

The northern Indiana utility NIPSCO argues, as other utilities around the country have, that it needs the rate structure revision to make sure that all customers pay their fair share for upkeep of the grid.

Increased fixed charges are widely seen as an attack on distributed solar, since a set charge regardless of how much energy one uses discourages generating one’s own electricity. The increases also discourage energy conservation and efficiency.

In a case filed October 1 (docket number 4468), NIPSCO asked for fixed monthly charges to be increased from $11 to $20 per month for residential customers. Previously the utility Indianapolis Power & Light Company also asked for a fixed charge increase, from $11 to $17 monthly. The Indiana Utility Regulatory Commission is currently considering both cases.

The commission is often viewed as accommodating to utilities, so clean energy advocates fear the fixed charge increases may be approved. A bill introduced, then later pulled, in the Indiana legislature last year would have forced the commission to approve any fixed charge increase requests.

“This conversation is getting underway in Indiana and the NIPSCO case is on top of the list because of the language they used and their stated intent that, ‘This is just the beginning folks, we’ll be back for more every few years,’” said Kerwin Olson, executive director of the Citizen Actions Coalition. “It’s something we’d like to nip in the bud.”

Indiana currently has only a very small amount of distributed solar installed.

In discovery for the rate case, the coalition and the Environmental Law & Policy Center (ELPC) found that NIPSCO has only 80 residential and small commercial customers with distributed solar, out of a total of 410,000 residential customers and about 51,000 small commercial customers. Statewide, there are only about 1,000 utility customers with solar.

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Columbus Dispatch: AEP profit-guarantee case, who’s in and who’s out

American Electric Power has 10 allies in its proposal for a profit-guarantee for certain coal-fired power plants, while 11 parties have said they will fight the plan, and a key player has chosen not to participate.

This sets up a battle that looks like a family feud. Each side includes energy companies, consumer advocates and environmental groups.

They will square off next month in a hearing, and in filings with the Public Utilities Commission of Ohio.

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Howard Learner appears on WGN Radio’s “The Download” to talk about the Paris Climate Conference and More

ELPC Executive Director Howard Learner talks with WGN Radio host Justin Kaufmann about the Global Climate Treaty established in Paris, what climate change will mean for the Midwest, and how energy efficiency is a “two-fer” for environmental protection and economic development.

Listen to the broadcast on WGN’s website. Howard’s segment begins at minute 36. 

Learner Op-Ed in State Journal-Register: Clean Power Plan makes good economic sense for Illinois

Illinois is an economic winner under the new Clean Power Plan because of our state’s robust clean wind power, solar energy and energy efficiency resources and nuclear plants. The Clean Power Plans sets flexible standards for Illinois and other states to reduce carbon pollution.

Building new wind farms in central Illinois creates jobs, boosts property tax revenues for schools and local governments, and provides new income for farmers who can continue to grow corn and soybeans while gaining wind turbine lease payments. Wind power produces clean energy that grows Illinois’ economy while reducing pollution for everyone.

Energy efficiency is the best, fastest and cheapest way to reduce carbon pollution while saving homeowners money on their utility bills and businesses money that improves their bottom lines.

Illinois is now fifth in the nation for wind power capacity. Illinois is home to the nation’s largest nuclear plant fleet. Solar energy is primed to accelerate. Illinois homes and business and governmental and university buildings have untapped opportunities for highly efficient LED lighting, improved heating and cooling systems, better pumps and motors, and other modern energy efficiency technologies that save money and reduce pollution.

The Environmental Law & Policy Center’s Illinois Clean Energy Supply Chain report identified 237 Illinois companies engaged in the solar industry supply chain, and 170 Illinois wind industry supply chain companies. These businesses employ 20,000 people across Illinois. The Clean Power Plan and renewable energy development solutions are good for jobs, good for economic growth and good for our environment.

So, what’s the problem?

Missourian Terry Jarrett’s Dec. 7 guest column attacked the Clean Power Plan that is designed to reduce carbon pollution, help grow the clean energy economy and accelerate practical climate solutions. Jarrett’s economic arguments were based on a report by “Energy Ventures Analysis” that, apparently, was commissioned by the National Mining Association, including Peabody Energy, which is headquartered in Missouri. What does one expect when the cost estimates are being generated at the behest of large coal mining companies?

Let’s set the record straight. Some coal plants in Illinois are retiring because of changing realities in the competitive electricity market: (1) low natural gas prices, (2) economical wind power, (3) affordable energy efficiency holding down electricity demand, and (4) nuclear plants for which Exelon is asking for public subsidies to keep running.

Natural gas prices are low — today, $2.02 MMBtu — and many coal plants are just not competitive on a fuel basis. That’s why Dynegy and NRG are retiring some of their coal plants that are uneconomic in the competitive power market. They are converting some other coal plants to natural gas. These corporate business decisions reflect today’s competitive market prices and reasonable near-term projections; the Clean Power Plan requirements, however, won’t take effect until 2023 at the earliest.

Electricity sales are down about 1 percent annually in Illinois due to energy efficiency. There’s a surplus of electric generating supply over demand here. That results in relatively low wholesale electricity market prices. That’s good for Illinois businesses and residents. That’s not so good for power plant owners.

The Illinois Department of Commerce and Economic Opportunity’s recent study determined that reaching renewable energy and energy efficiency targets already in state statutes would trigger creation of 9,600 new jobs by 2019. The study also found that investments in wind power and solar energy have “led to a dramatic increase in manufacturing jobs at renewable component manufacturers across Illinois from Peoria to Cicero, Clinton, Rockford, and Chicago.”

Illinois should benefit from cleaner air, clean jobs and economic growth that the Clean Power Plan will accelerate. Let’s be smart, move forward and seize these strategic opportunities for progress.

— Howard A. Learner is the executive director of the Environmental Law & Policy Center, an environmental quality and economic development advocacy organization headquartered in Chicago.

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