Tuesday, April 12, 2011
Many pundits have reduced the November 2010 election results to quick generalized sound bites reflecting the noisiest politicians, but the impacts on environmental and transportation issues are more complicated. Most of the elected Midwest Governors are reasonably pragmatic and open-minded when it comes to renewable energy, energy efficiency, natural resources preservation and high-speed rail development. However, there is little federal support for climate change action or movement on the Midwest Governors’ Association’s climate initiatives.
All of this is playing out in the face of four broad, contradictory contexts:
- First, unprecedented state budget crises and federal funding cuts that severely constrain environmental protection actions and services by responsible public agencies.
- Second, high unemployment and a public focused on jobs – we need to make “green jobs” real to people by showing where they are growing in their communities.
- Third, extraordinarily poisonous partisan, ideological politics.
- Fourth, strong public support for policies and programs to achieve clean air and water, better transportation, and a healthier, less toxic environment.
So, let’s look at what happened and the opportunities and challenges for progress.
The Midwest Governors’ races produced diverse results. Governor Pat Quinn (D- IL) is a leader on clean energy and high-speed rail, and Governor Mark Dayton (D-MN) has a strong environmental record. Governor Terry Branstad (R-IA) is a pragmatic supporter on some renewable energy and environmental issues, and Governor Rick Snyder’s (R-MI) technology interests should lead to continued initiatives (though focused differently) to spur solar energy, advanced battery manufacturing technologies and high-speed rail development, building on Michigan’s progress during the Granholm Administration.
On the other hand, Governor Scott Walker(R-WI) is an ideological opponent of most things environmental, and Governor John Kasich (R-Ohio) has not been supportive. We expect little support from North Dakota Governor Jack Dalrymple (R), but hope to continue working well with South Dakota Governor Dennis Daugaard (R) who supports wind power development policies.
All of the Midwest/Great Plains Governors, except for Indiana Governor Daniels, are newly elected. Many have little experience with the state renewable energy standards (RES) and energy efficiency performance standards (EEPS) that have been working well. Additionally, they haven’t been part of the Midwest Governors’ collaborative work on regional high-speed rail and Great Lakes restoration. They are appointing new senior energy and environmental staff and new EPA Directors and Public Utilities Commission (PUC) Chairs. The clean energy and environmental/public health advocacy community should help to re-build the institutional understanding for the new appointees so that ground gained during the last few years isn’t lost.
State Legislatures have shifted. Republicans’ control both the State Senate and House in all of the states, except in Illinois where Democrats retained their Senate and House majorities and in Iowa where Democrats held their State Senate majority. In both Michigan and Iowa, the Republican state legislators may constrain Governor Snyder’s and Branstad’s abilities to advance clean energy and environmental programs. On the other hand, Illinois presents opportunities for environmental and clean energy leadership.
Overall, the Republican shifts in the Governors’ offices and State Legislatures will affect the remaps of both Congressional and state legislative districts going into the November 2012 elections.
The Congressional elections were swept by Republicans across much of the Midwest. Republicans captured all contested U.S. Senate seats in Illinois, Indiana, Ohio, North Dakota and Wisconsin, and defeated many incumbent Democratic Congressmen. The defeat of U.S. House Transportation Committee Chair James Oberstar (D-MN) is a significant loss for high-speed rail advocates. Most of the newly-elected Republicans are not environmental supporters and some are very hostile, especially on climate change legislation. Senator Mark Kirk (R-IL) may prove to be an exception based on his Congressional record for protecting the Great Lakes and advancing renewable energy and high-speed rail. We may gain support from Senator Rob Portman (R-OH) on energy efficiency and clean water issues. Some newly-elected Republicans (e.g., Illinois’ Robert Dold and Joe Walsh) were elected in districts that have strong pro-environment constituencies, and they will seriously hamstring their 2012 re-election efforts if they continue voting so negatively.
Our biggest challenges are: (1) State budget crises that will severely limit environmental agencies’ capacity to implement and enforce the Clean Air Act, Clean Water Act and other environmental laws; (2) Unprecedented ideological opposition to environmental progress among too many state legislators across the Midwest; and (3) The public’s focus on job creation and retention rather than environmental and other quality of life issues.
There are, however, opportunities for environmentalists, clean energy and clean transportation advocates to play offense, not just defense. We must be more creative in targeting specific strategic opportunities. Lately, I’ve been describing our approach as akin to the Clue board game: “matching Colonel Mustard in the library with the pipe wrench.” In other words, pick the right issues with the right coalition partners as joint messengers in the right places.
1. High-speed rail development can be a winner even though it’s situated differently among the Midwest states with some Democratic rail champions (Quinn and Dayton) and some Republican rail opponents (Kasich and Walker). Governors Walker and Kasich returned billions in federal high-speed rail funds. We must challenge these Governors for losing local jobs and stunting economic growth to score partisan political points. (This advocacy is now beginning to have an impact: Governor Walker is now applying for federal high-speed rail grant funds for the Chicago-Milwaukee corridor.)
Illinois and Minnesota strongly support high-speed rail development, and our public advocacy is vitally important to keep Iowa and Michigan “on track” with their states’ high-speed rail projects.
The public wants modern and convenient passenger rail service that can improve mobility, reduce pollution, create jobs and spur economic growth. High-speed rail is President Obama’s and Secretary LaHood’s #1 transportation priority. Though it won’t be easy, we can win and advance this structural transformation of the Midwest’s transportation system.
2. Energy efficiency makes sense to many state policymakers on both sides of the aisle. In tight economic times, energy efficiency saves money for residential and business consumers, reduces pollution, improves reliability and creates jobs. It’s a winner when explained in practical terms, and we can show how investments in Energy Efficiency Performance Standards and other programs have produced economic benefits and will keep improving over the next decade.
3. Wind and solar power have strong public support at the state level, and policymakers on both sides of the aisle recognize the job creation and economic growth benefits. The RESs in Illinois, Michigan, Minnesota, Ohio and Wisconsin are self-ratcheting measures that increase development, and major wind power developments are also going forward in Indiana, Iowa and the Dakotas. We must continue to overcome barriers to moving RESs forward and make the case for job growth and economic development in granular, in-the-district terms. As more projects are developed and more manufacturers build supply-chain equipment, more legislators will see the jobs, jobs, jobs benefits in their districts.
4. Challenges to force the clean up or shut down of old coal plants will likely benefit from less state funds available for various publicly-subsidized retrofitting schemes that keep arising and less willingness among PUCs to approve rate hikes in the current economy.
5. Federal budget cutbacks and state budget crises will limit new, unaffordable, sprawl-inducing highway projects, just as budget cuts hamper many important environmental and conservation programs.
6. In Iowa, Republican Governor Branstad defeated Democrat Culver by 10%, while the Iowa Water and Land Legacy Amendment ballot measure won 63% – 37%. That means at least 40% of Iowa’s Republican voters for Branstad also voted for a new trust fund for clean water and natural resources protection. This strong voter support creates an opportunity to leverage clean water and land conservation policy action by Governor Branstad and state legislators and has sent an important message heard in Illinois and Indiana, among others.
There are major challenges and some significant opportunities for progress. We are moving on both paths with our colleagues and diverse potential allies. Although many new legislators have spoken out against climate change legislation, many have expressed support for renewable energy development, conservation values and high-speed rail development. We believe there will continue to be opportunities to work with the Governors, state legislators and the Congressional delegations to advance key components of our clean energy and smart transportation policy agendas. Let’s go forward and win!
Friday, February 18, 2011
This week, Florida Governor Rick Scott rejected $2.4 billion in federal funds to build a modern passenger rail line between Orlando and Tampa that would have created jobs and supercharged Florida’s tourism industry. Instead, he placed short-sighted partisan politics above people’s transportation needs and job creation. Governor Scott’s apparent motivations were reflected in his partisan statements criticizing President Obama.
Americans want modern, fast and better rail service that can improve mobility, reduce pollution, create jobs and spur economic growth. Polling shows that high-speed rail support is not limited to people in so-called “red” states or “blue” states. People want better transportation options. According to a recent Rockefeller Foundation survey, 80 percent of those polled agree that federal investment to improve and modernize transportation “will boost local economies and create millions of jobs from construction to engineering.”
Scott’s ridership math is misleading and uninformed. He attempts to justify his ridership skepticism by saying that “only” 3.2 million people ride the Northeast’s Acela trains, but ignores the other 7.6 million passengers who take the slower, but less expensive, Northeast Regional trains in the same corridor. Together, these trains serve more passengers than all airlines combined in these markets.
Scott has cost us thousands of jobs and billions in economic development at a time when people are hurting. He has prioritized scoring partisan political points against the President over gaining job creation and better transportation options for many people. The American public deserves better, especially in these challenging times.
Wednesday, January 26, 2011
STATEMENT OF HOWARD A. LEARNER, Executive Director
Environmental Law & Policy Center
“Americans do believe that environmental progress can be achieved together with job creation and economic growth. President Obama’s address identified Midwestern clean energy and high-speed rail development projects where this is already happening.
Hundreds of old-line Rust Belt manufacturers are retooling to produce equipment for the growing clean energy economy, as shown by the Environmental Law & Policy Center’s recent reports. Federal investments in renewable energy are spurring job growth and revitalizing the Midwest manufacturing sector. The Michigan solar company highlighted in the President’s speech is a good example. After decades of decline, America’s clean energy industry is creating new manufacturing jobs and making us more globally competitive.
We can’t build a 21st century economy with a 19th century transportation infrastructure. In Illinois and Michigan, federal investments in high-speed rail are creating construction and supply chain jobs today that will improve and expand transportation options tomorrow. Modern, fast, comfortable and convenient rail development will improve mobility, reduce pollution, create new jobs and spur economic growth.
The President’s clean energy and high-speed rail proposals are investments in America’s future. Here, in the Midwest Heartland, let’s seize these opportunities to strengthen our economy, create jobs and improve our environment in ways that make good sense and make our nation more competitive.”
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Wednesday, December 8, 2010
Dear Friends,
This has been both a remarkable and challenging year for our nation’s political durability, our economy and the Environmental Law & Policy Center’s (ELPC) work to protect our environment, preserve the Midwest’s natural heritage and grow the green economy. ELPC is promoting win-win-win solutions for environmental progress, job creation and economic development. We are achieving remarkable progress in these challenging times.
I am writing to ask you to make a financial contribution to ELPC during this holiday season. ELPC combines strong legal advocacy with a core belief that we can achieve environmental progress and economic development together – the right approach for our times. ELPC’s pioneering “green economy” vision has become a defining policy driver for the Obama Administration and governors on both sides of the partisan divide.
ELPC has achieved banner successes over the past year. Clean water, clean air and natural resources protection litigation victories in Illinois, Iowa, Michigan, Minnesota and Wisconsin. Breakthrough energy efficiency and renewable energy development policies in Illinois, Indiana Iowa, Michigan, Ohio and South Dakota.
Overall, there are three game-changing policy shifts: (1) Clean renewable energy development and energy efficiency strategies and technologies have moved from hope and vision to a central driving mission to achieve the win-win-win of job creation, economic growth and environmental quality benefits; (2) High-speed rail development has moved from ELPC’s and a few others’ vision to be the President’s “#1 transportation priority” with major federal funding; but (3) The previously growing bipartisan Congressional and state movements to achieve climate change solutions have broken down into partisan battling and regional divisiveness.
The clean energy and high-speed rail development shifts represent strategic opportunities that ELPC must seize. Carpe diem! Scientists make clear that climate change is occurring; we can’t just “push the pause button” on smart advocacy until the economy and political climate improve.
- High-Speed Rail Development – Huge Success: ELPC’s long-time leadership led to dramatic breakthroughs in 2010. The Federal Railroad Administration made $10.5 billion in grants to jumpstart high-speed rail development nationally. The Midwest High-Speed Rail Network received $3 billion to advance modern, fast, comfortable and convenient trains connecting Chicago and the 11 major cities within a 400-mile radius. The impacts: improved mobility, less pollution, more jobs and greater economic growth by better connecting our region and pulling jobs, people and business into the downtowns. High-speed rail is the much-needed cleaner “third option” that will transform our national and regional transportation systems.High-speed rail development is viewed very differently by the new Midwest Governors: Two Democratic champions (Pat Quinn–Ill. and Mark Dayton–Minn.), two Republican opponents (John Kasich–Ohio and Scott Walker–Wisc.) and two Republicans proponents (Terry Branstad–Iowa and Rick Snyder–Mich.). We hope as the detractors transition from campaigning to governing that their views will evolve as they face losing jobs and returning hundreds of millions of dollars of grant funds to the Federal Railroad Administration. U.S. Secretary of Transportation Ray LaHood made clear that states cannot transfer and use rail funds for highways.
Illinois, Michigan and, hopefully, Iowa appear ready to go for the jobs and to request re-allocated high-speed rail funds to support even better Chicago–St. Louis, Chicago–Detroit and Chicago–Des Moines development as the initial backbone for the Midwest network. Challenge coming in 2011: Gain high-speed rail funding in the federal transportation reauthorization legislation.
- Federal Climate Change Solutions Legislation – Huge Challenge: Solving our global warming problems is the moral, business, economic, policy, political and technological challenge of our generation. As a global leader, the United States must step up and lead. The federal climate change legislation is sadly stuck in Congress’ partisan quagmire. ELPC and our colleagues are calling on Congress to not impede the U.S. EPA from exercising its legal responsibility to reduce carbon dioxide and other harmful pollution. It’s time for solutions now.
- Solar Power – Big Opportunity: Solar photovoltaic panel prices are low due to excess global supply, and the technology is rapidly improving. The Midwest is not Arizona, but Chicago has more solar intensity than Berlin and Tokyo, which are among the world’s leading solar markets. ELPC is advancing pro-solar policies throughout the Midwest states to capture environmental benefits and create new green jobs. Solar can play a key role in meeting peak demand with clean energy.
ELPC is the Midwest’s premier environmental legal advocacy and eco-business innovation organization, and we’re among the very best in the country. Thank you for considering a contribution to support our success in protecting the Midwest’s environmental quality and preserving our natural resources. My best wishes to you for a happy and healthy new year.
Sincerely,
Howard A. Learner
Executive Director
Friday, September 10, 2010
We mourn the passing of our former colleague, Charlie Kubert. Charlie was passionately committed to developing cleaner renewable energy and energy efficiency to improve our environment and benefit everybody. He worked to make the world a better place, and we will all miss him and the fine work he would have continued to do had he had the chance to live longer. All of our best wishes to his family.
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Monday, August 23, 2010
BP/Enbridge Lessons:
Electric Vehicle Solutions That Reduce Oil Dependence, Reduce Pollution, Create Jobs and Boost the Midwest’s Economy
The BP and Enbridge oil spill disasters reminded everyone of the dangers from our addiction to oil. Most Americans are looking for cleaner and safer ways to power our cars and heat our homes. The good news is that shifting to cleaner cars and trucks can create new jobs, improve the environment and boost our economy at the same time.
Advancing cleaner cars provides an opportunity for new manufacturing jobs and product lines in the Midwest industrial states as automakers develop innovative technologies and better pollution controls. Parts of the federal economic stimulus package are spurring the growth of the electric vehicle industry in the Midwest. Let’s look at some of these new opportunities:
• On July 15th, President Obama attended groundbreaking ceremonies at Compact Power in Holland, Michigan, which is one of nine new advanced battery factories supported by $2.4 billion in Recovery Act funds. This new factory will produce battery cells for 53,000 Chevy Volts annually and is expected to create hundreds of local jobs.
• Delphi Automotive Systems in Kokomo, Indiana gained a federal economic stimulus grant of $89.3 million to support building a $178.6 million manufacturing facility. This plant will produce power electronics components for about 200,000 electric vehicles by the end of 2012 and help ensure that automakers have a globally competitive U.S. source for these components. The project has thus far created/saved 60 jobs thus far and is expected to create/save 190 jobs at full production in 2014.
• Dow Kokam announced that it will use $161 million in stimulus money to develop an 80,000 square-foot battery manufacturing facility near its Midland, Michigan headquarters. This new plant will employ about 1,000 construction workers and then 800 people when complete.
• In Elkhart, Indiana, some hard-pressed gas-guzzling RV builders now plan to be manufacturing about 20,000 electric vehicles by 2013 for Norwegian-based Think motors. Think plans to invest $43.5 million improving and equipping its Elkhart plant, and expects to create more than 400 jobs in the area.
• Indianapolis-based EnerDel Inc. says that $118.5 million in federal stimulus money will enable it to double the size of its headquarters on the city’s northeast side. EnerDel will also soon employ up to 1,400 people manufacturing lithium-ion battery systems for electric and hybrid vehicles in Greenfield, Indiana. EnerDel and Ener1 Inc. plan to grow from 300 jobs today to 3,000 jobs or more by 2015.
• On July 26th, EnVision Motor Company announced its plans to produce electric vehicles at a new assembly plant in Webster City, Iowa. The EnVision model will use foreign-produced car bodies and American-made electrical parts. The new Webster City plant is expected to employ 300 people.
• Ford Motor announced its plans to invest $135 million, including $62.7 million in federal stimulus funds, for design, engineering and production of next-generation electric vehicles. Ford plans to relocate battery assembly work from Mexico to its Rawsonville, Michigan plant, and electric-drive transaxle production from Japan to its Van Dyke plant, resulting in 170 manufacturing jobs in Michigan.
The Midwest’s pool of highly skilled workers should be building the cleaner new cars and components. These good manufacturing jobs are the “green jobs” for our future.
Under federal clean car standards finalized this spring, the average fuel economy for passenger cars will improve by almost 40 percent — from 27.5 mpg in 2009, to 37.8 mpg by 2016. The new innovative technologies are expected to save up to 11.6 billion gallons of gasoline annually by 2016. That’s equivalent to cutting U.S. oil imports from Saudi Arabia in half.
Building cleaner, more fuel efficient cars will save consumers $35 billion annually at the pump (at $3/gallon gas prices), and they will reduce lifetime greenhouse gas pollution from vehicles produced between 2012 and 2016 by more than 655 million tons. That’s a big step forward.
The transition to cleaner cars of the future should be accompanied by deploying modern technologies to clean up the electricity generating sources. Driving an electric car doesn’t help the environment as much if it’s charged by electricity generated from older, highly-polluting coal plants. We can and should use clean power to charge electric vehicles. Let’s build charging stations powered mostly by solar and wind energy
Solar energy is most available on the hot, sunny afternoons when power market prices are highest and the power is needed most. Wind power is plentiful at night and provides “no pollution, no fuel cost” energy. If electric vehicle charging stations are powered by solar and wind energy, the pollution equation works well. The state Public Utilities Commissions and our state legislatures should strengthen “net metering” rates and standards for the charging stations to sell valuable solar-generated power back into the grid when it is not fully used for charging cars. Likewise, the Commissions should create discounted night-time charging rates for electric vehicles to reflect the lower power market prices and available wind power generation.
The Midwest is America’s auto industry center and should be the leader in gaining the jobs of the future by building the cleaner cars that increase our energy independence, reduce pollution, save us money at the pump and grow our economy. Getting cleaner, more efficient cars on the roads is a key step forward for reducing our oil dependence. As the BP and Enbridge oil spills unfortunately showed us, business as usual is not the right path for our economy or environment. Let’s be smarter and do better.
Thursday, June 24, 2010
Cleaner Cars, Less Reliance on Oil, Better Mileage, More Jobs, Less Pollution and More Savings at the Pump
The BP oil spill disaster in the Gulf of Mexico has awakened many Americans to the dangers of our addiction to oil. The latest polls show that most Americans want to find cleaner and safer ways to power their cars and heat their homes. The good news is that a shift to more fuel efficient cars and trucks will both improve the environment and boost our economy.
Under the new federal greenhouse gas reduction and fuel economy standards that were finalized in Spring, the average fuel economy for passenger cars will increase from 27.5 mpg in 2009 to 37.8 mpg by 2016 – an improvement of almost 40 percent. Building cleaner cars will reduce lifetime greenhouse gas pollution from vehicles produced between 2012 and 2016 by more than 655 million tons. That’s a big step forward.
The shift toward cleaner cars provides an opportunity for new manufacturing centers and product lines in Indiana, as automakers develop more efficient technologies and better pollution controls. In Elkhart, for example, former RV builders will now be manufacturing electric vehicles for Think motors. Think is planning to produce about 20,000 vehicles annually in Elkhart by 2013. Likewise, just outside of Indianapolis, EnerDel will soon employ up to 1,400 people manufacturing batteries for electric vehicle.
Indiana’s pool of highly trained autoworkers will be building the cars – and the economy – of the future. These good manufacturing jobs are “green jobs” for our future.
The new federal technology-forcing and innovation-encouraging standards for the cars of the future are expected to save as much as 11.6 billion gallons of gasoline per year by 2016. That’s equivalent to half the oil that the U.S. imports from Saudi Arabia each year. That reduction in gasoline purchases will save consumers around $35 billion annually at the pump if gas costs $3 per gallon.
The transition to cleaner cars should be accompanied by deploying modern technologies to clean up and diversify our electricity generating sources. Driving an electric car doesn’t help clean up the environment as much if it’s charged by electricity generated by older, highly-polluting coal plants. We can and should use clean power to charge plug-in hybrids and other electric vehicles. Let’s build charging stations powered mostly by wind and solar energy
Solar energy is most available on the hot, sunny afternoons when power market prices are highest and the power is needed most. If electric vehicle charging stations are powered by solar, the pollution equation works well. Let’s try to locate charging stations in places where there is good solar access. The Indiana Utility Regulatory Commission and the Legislature should also adopt robust “net metering” rates and standards for the charging stations to sell valuable solar-generated power back into the grid when it is not fully used for charging cars.
Indiana can and should be a leader in gaining the jobs of the future from building new, cleaner cars that increase our energy independence, reduce pollution and save us money at the pump. Getting cleaner, more efficient cars on the roads is a key step forward for reducing our oil dependence. As the BP oil spill disaster unfortunately reminds us daily, business as usual is not the right path for our economy and environment. Let’s be smarter and do better.
Monday, May 10, 2010
The Environmental Law & Policy Center commends the Illinois State Senators who twice rejected proposed legislation that would have allowed a tire-burning incinerator special treatment as akin to clean renewable energy. The Tire Burning Bill (SB 380) would have benefited Geneva Energy, the tire-burner plant owner, which repeatedly violated its air pollution permit levels according to the Illinois EPA.
“Burning tires is clearly not clean energy, and we commend the legislators who rejected this cynical ploy to contort state laws designed to promote renewable energy,” said Howard A. Learner, Executive Director of the Environmental Law & Policy Center. “The public is angry about being asked to bailout money-losing banks and, this time, to subsidize an unprofitable tire burner that has consistently violated the environmental pollution and public health laws. Enough is enough,” said Learner.
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Friday, April 30, 2010
The Environmental Law & Policy Center commends the Obama Administration for proposing new federal air pollution reduction standards today that would sharply reduce mercury and other toxic pollutants from industrial boilers and solid waste incinerators. According to the U.S. Environmental Protection Agency (US EPA), the proposed rules would reduce mercury pollution by more than 50 percent from about 200,000 industrial boilers, heaters and solid waste incinerators across the country.
“The US EPA is stepping up to protect children’s health, the Great Lakes and our environment by reducing toxic mercury pollution from major sources,” said Howard A. Learner, Executive Director of the Environmental Law & Policy Center. “Mercury is a neurotoxin that can pass through a pregnant woman’s placenta and harm fetal brain development. Coal plants and these industrial smokestacks are the largest sources of mercury pollution. Today’s announcement leads the way to better protection for children’s health and the environment.”
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Sunday, April 4, 2010
This article by ELPC Executive Director Howard Learner appeared in the “Green Issue” of the New York Times’ Chicago Life Magazine.
Many of us are excited by the new plug-in hybrid vehicles (PHEVs) coming into the market later this year. They’re cool, high-tech and use less gasoline from countries that don’t like us very much and threaten America’s national security. They’re a big winner for reducing pollution in the Northern Illinois market. What’s not to like about cars with environmentally-friendly names like the Nissan Leaf, or charged-up names like the Chevy Volt?
The devil is in the details, however, when it comes to whether driving and charging the PHEVs will lead to less, instead of more, pollution compared with “conventional” hybrid gas-electric vehicles (HEVs) that are available to consumers today. As my real estate friends say, it’s about “location, location, location.” It’s also about what time you’re charging the PHEV. Whether the mix of electricity generating sources used for charging are high-CO2 or low-CO2 depends a lot on the location and the time of day. In short, if the charging source is electricity generated by old highly-polluting coal plants, on balance, that may hurt the environment more than it helps in some cases.
That’s the conclusion of a 2009 study by the National Research Council of the National Academies and a 2007 study issued by the Minnesota Pollution Control Agency. When coal plants supply more than 50% of the power mix, the equation is not favorable for PHEVs compared to HEVs when it comes to the CO2 pollution (global warming) and SO2 (acid rain-causing) pollution; for other pollutants the data varies. HEVs work better for the environment in these places.
PHEVs are an important emerging technology — where the cleaner energy power sources are used to charge their batteries. Let’s compare and contrast among markets. In Indiana, about 95% of the electricity is supplied by coal plants. It’s not a good place to look for PHEVs as a pollution solution. However, in Northern Illinois, most of the power supplied at the margin at night is from low/no-CO2 wind power and nuclear power plants. Much better.
Peak power prices are very high on hot summer afternoons when the most highly polluting plants tend to be running on the margin to meet soaring electricity demand from cranked-up air conditioners and fans. However, at night, the Northern Illinois power market has so much surplus nuclear and wind power available that prices are very low. Indeed, during some night-time hours, as supply exceeds demand, the prices are so low that the can’t-easily-be-shut-down (so-called “must run”) nuclear plants and wind turbines are “running negative” They make money selling power during the day, but are essentially giving it away at night.
Here are three policies and actions help make the PHEV pollution equation work favorably:
1. Location Matters – Let’s Pick Our Places for PHEVs vs. Conventional HEVs: Let’s push for PHEVs and favorable policies in those places where wind power, solar power, hydro power and nuclear power supply more than half of the power mix. Northern Illinois (nuclear and wind power) is a good market. South Dakota, too (hydro and wind power). Coal-heavy Indiana and Southern Illinois are not. Sorry. In many places, HEVs work better for the environment.
2. Time Matters – Discount Off-Peak Electric Rates for PHEV Charging: In most Midwestern states, electricity rates are flat, while power market prices are not. On a hot summer day, consumers may be paying less then the market price per kw of electricity, but on that same summer night, the utility may be charging much more than the power, transmission and delivery actually cost. Therefore, utilities have an incentive to encourage PHEV owners to charge their cars during off-peak night times, rather than during high-price peak power day times. Time of use rates are economically justified, but complicated for many social, practical and equity reasons to implement on an across the board basis. However, there are steps that we can take in a sensible direction.
Offering discounted off-peak rates that incentivize PHEV owners to charge their cars in their garages at night, instead of during the day, is a win-win-win-win when the location is right as discussed above. The wind power, nuclear power and hydro power generating companies gain new, more profitable sales. The utilities gain profitable electricity sales, rather than losing money by selling peak-priced power at lower flat rates on hot summer days. Consumers who charge their PHEVs at night save money (about $150 – $175 per year in Northern Illinois) through the discounted off-peak rates. All of us gain environmental quality benefits from PHEV charging when the energy mix equation results in less pollution instead of more.
Let’s bring environmental groups, consumer groups, auto companies, utilities, nuclear plant owners and wind power owners and developers together to petition the state public utility commissions to authorize pilot programs of discounted off-peak rates for PHEV charging. New meters will be required, but those costs can be amortized through the rate savings over time.
3. Time Matters – Solar Power Works Well for PHEV Charging: Solar energy is most available on hot, sunny afternoon when power market prices are highest and the power is needed most. So, if PHEV charging stations are powered by solar, the pollution equation works well. How can we encourage that to happen? First, by using planning, zoning and electric utility regulatory laws and policies to encourage location of charging stations in places where there is good solar access. Second, authorizing favorable “net metering” rates for charging stations to sell solar-generated power back into the grid when it is not fully used for charging cars.
The Northern Illinois Plug-In Hybrid Opportunity: President Obama stated his national goal of 1 million PHEVs on the road by 2015. Let’s look at the opportunities in his Northern Illinois home area of, which is one of the best places in the country for PHEVs to accelerate:
- Large market of car buyers and users in third largest metro area in the U.S.
- Large amount of auto manufacturing and suppliers, including two existing plants that could potentially be retooled – the Ford plant on the southeast side of Chicago, and the Chrysler plant in Belvedere.
- Surplus, zero marginal cost, no-greenhouse gas wind power on-line and under development. Some of this excess wind power supply is now being sold out-of-state.
- Surplus, low marginal cost, no-direct greenhouse gas nuclear power generation.
- Precedent for setting pilot program time-of-use rates, which would offer low off-peak electricity rates for charging PHEV batteries at night.
In short, the markets, policies and players are aligned in Northern Illinois for this PHEV strategy to succeed. This is a win-win-win-win for more transportation efficiency and better national security, less global warming pollution, more utility and energy generation company revenues, and more job creation.
Getting more PHEVs on the road is a key step forward in terms of reducing our dependence on foreign oil and, in some parts of the country, they also can sharply reduce both CO2 pollution. However, in places whose electricity comes primarily from coal, we need to develop PHEVs simultaneously with legislation to clean up the electricity system. Then everyone can take full advantage of PHEVs’ technological improvements.
The pollution equation shifts dramatically depending on the power mix in the charging location and the time of day. From an environmental standpoint, location and time matter, a lot. We should focus on supporting PHEV rollouts in Northern Illinois and other places and at those times where there is excess low/no-CO2 wind, hydro and nuclear power available at the margin. Let’s drive the market to achieve common benefits for the car-buying public, clean energy generators and utilities, clean car manufacturers and auto workers, and national security.
