Energy Policy Now

Today's electric grid will need to be reimagined to deliver carbon-free power. MIT's Jesse Jenkins talks about what a deeply decarbonized electricity system might look like, and how to build it at lowest cost. --- In its 2014 report on global warming, the UN's Intergovernmental Panel on Climate Change concluded that carbon dioxide emissions must fall by as much as 70% by mid century to avoid the most "severe, pervasive and irreversible" damage from climate change. A key to reducing carbon emissions will be the near complete decarbonization of the global electricity system, which is today's largest source of greenhouse gasses, and remains largely dependent on fossil fuels. Kleinman Center Visiting Scholar Jesse Jenkins discusses the economics of building a 'deeply decarbonized' electricity system. Jesse, and a group of MIT engineers, have modeled future electricity systems to determine the mix of low carbon energy resources that will create tomorrow's most resilient, cost-effective, and low-carbon electricity systems. Their research is currently working its way through peer review and will be released later this year. Jesse Jenkins is a researcher with the Electric Power Systems Center at the Massachusetts Institute of Technology. He is former Director of the Breakthrough Institute's Energy and Climate Program, where he led research into energy, climate change and innovation policy. Related Content: Solar Industry Growth Set to Slow: https://kleinmanenergy.upenn.edu/blog/2018/01/23/solar-industry-growth-set-slow Clean Energy Costs Continue to Fall: https://kleinmanenergy.upenn.edu/blog/2018/01/22/clean-energy-costs-continue-fall Climate Policy in a Disorganized World: https://kleinmanenergy.upenn.edu/policy-digests/climate-policy-disorganized-world Tilting at Windmills: https://kleinmanenergy.upenn.edu/policy-digests/tilting-windmills A City Blazes Its Clean Energy Trail: https://kleinmanenergy.upenn.edu/energy-policy-now/city-blazes-its-clean-energy-trailSee omnystudio.com/listener for privacy information.

The view of Americans on the environmental and economic implications of fracking continues to be sharply divided a decade after the shale revolution began. But the author of a new book, The Fracking Debate, finds more nuanced perspectives in wellhead communities. -- The shale revolution in the United States is now more than a decade old. In the intervening years, energy companies have tapped vast, previously uneconomical oil and natural gas resources through a suite of technologies, including hydraulic fracturing, commonly called fracking, and horizontal drilling. The results have been dramatic. Today the U.S. is a leading producer of oil, and the top global supplier of natural gas. But the shale revolution has also bred controversy as the country has struggled to balance fracking’s economic and environmental impacts. Those for and against fracking have often gone to great lengths to promote their views. Along the way, previously quiet communities, from Pennsylvania to North Dakota, have struggled to accommodate waves of drilling rigs and energy workers. Guest Daniel Raimi spent several years traveling the country to get to know the communities where fracking takes place. His travels led to a new book, The Fracking Debate: The Risks, Benefits, and Uncertainties of the Shale Revolution. In it Raimi seeks to relate the perspective of communities, and citizens, on fracking’s front lines, and provide unbiased answers to some of the biggest questions surrounding fracking. Related Content Pennsylvania’s Gas Decade: https://kleinmanenergy.upenn.edu/paper/pennsylvanias-gas-decade Polar Stress Test Revisits Gas-Powered Grids: https://kleinmanenergy.upenn.edu/blog/2018/01/03/polar-stress-test-revisits-gas-powered-gridsSee omnystudio.com/listener for privacy information.

U.S. corporations increasingly look to manage their carbon footprints, and energy costs, by entering into clean energy power purchase agreements (PPAs). The contracts offer a tailwind to renewable energy developers, but can challenge traditional utility-customer relationships. --- Ninety-five percent of the world’s largest 250 companies by revenue issue sustainability reports that disclose their environmental and social impact. On the energy front, this often translates into companies setting goals for clean energy use, with Google, Microsoft and Wal-Mart having set 100% clean energy targets for parts of their businesses. As companies look to aggressively reduce their carbon footprint, some are taking the step of making direct investments in clean energy projects through contracts known as wind and solar Power Purchase Agreements (PPAs), under which they buy electricity directly from clean energy generators. Such deals ensure that clean energy purchases pass the additionality test, yet can disrupt traditional utility-customer relationships. Energy legal and regulatory expert Ken Kulak provides insights into corporate America’s efforts to clean up its electricity supply, even as the bulk of America’s electric generation continues to be powered by fossil fuels. Ken Kulak is Partner with the Morgan Lewis law firm in Philadelphia, and a Senior Fellow with the Kleinman Center for Energy Policy. Related Content Utilities Continue Coal Retreat, Advance on Gas and Renewables https://kleinmanenergy.upenn.edu/blog/2017/12/13/part-3-utilities-continue-coal-retreat-advance-gas-and-renewables Tilting at Windmills https://kleinmanenergy.upenn.edu/policy-digests/tilting-windmillsSee omnystudio.com/listener for privacy information.

The Energy Department’s proposal to shore up coal and nuclear power plants could undermine the very foundations of competitive electricity markets. PJM Interconnection’s Stu Bresler, SVP for Operations and Markets, weighs in on DOE’s proposal, and explains PJM’s price formation alternative. --- In October, Department of Energy secretary Rick Perry grabbed the attention of US competitive wholesale electricity markets when he issued an unusual request to the federal agency tasked with overseeing these markets, the Federal Energy Regulatory Commission. Perry’s proposal, known as the resiliency NOPR (or Notice of Proposed Rulemaking), asked that subsidies be paid to electricity generators that the Energy Department maintains are critical to the resilient operation of the electricity system. More specifically, the subsidies would go to coal and nuclear power plants that can store a 90-day supply of fuel on-site. DOE maintains that this would ensure the plants’ continued operation in the event of fuel supply disruptions, for example during extreme weather. But the move to favor certain generators threatens to undermine competitive market principles that are the foundation of electricity markets. It could also disadvantage other forms of generation, mainly natural gas and renewables which, the Energy Secretary maintains, are less resilient. PJM Interconnection, the largest competitive electricity market, has been outspoken in its concerns around the DOE proposal and the resiliency assumptions that underlie it. In this episode, PJM’s Stu Bresler, Senior Vice President for Operations and Markets, presents PJM’s alternative proposal, which aims to reform the way prices are set in energy markets. Critically from PJM’s perspective, it’s price formation reforms would preserve market-based principles. PJM’s proposed plan would increase revenues to electric generators, ultimately benefitting the same endangered coal and nuclear plants that the DOE aims to support. The Kleinman Center’s Christina Simeone, Director of Policy and External Affairs, who has written extensively on issues related to PJM, and handles the questioning. Related Content Initial Questions on PJM’s Price Formation Proposal http://kleinmanenergy.upenn.edu/blog/2017/11/21/initial-questions-pjm’s-price-formation-proposal What the Heck is “Enhanced Price Formation” in PJM http://kleinmanenergy.upenn.edu/blog/2017/11/21/what-heck-“enhanced-price-formation”-pjm PJM Governance http://kleinmanenergy.upenn.edu/paper/pjm-governance Department of Energy Grid Resiliency Pricing Rule NOPR https://www.energy.gov/sites/prod/files/2017/09/f37/Notice%20of%20Proposed%20Rulemaking%20.pdf Initial Comments of PJM Interconnection, L.L.C. on the United States Department of Energy Proposed Rule http://www.pjm.com/-/media/documents/ferc/filings/2017/20171023-rm-18-1-000.ashx DOE Staff Report to the Secretary on Electricity Markets and Reliability https://energy.gov/downloads/download-staff-report-secretary-electricity-markets-and-reliabilitySee omnystudio.com/listener for privacy information.

Mass migration to India’s cities will triple the size of its built environment by 2030, driving up energy use and carbon emissions. An expert on India’s energy sector looks at the country’s efforts to balance development and climate impact. --- Few countries face the challenge of balancing economic development and climate change as acutely as India, and in no other country is this balance likely to directly impact the lives of so many people. Over the next decade, some 200 million rural Indians will move to urban centers. Many will join the middle class, creating new demand for goods and energy while tripling the size of India’s built environment. At the same time, rising temperatures and the desertification of India’s agricultural regions will challenge the country’s ability to feed itself. Energy Policy Now guest Radhika Khosla, Visiting Scholar at the Kleinman Center for Energy Policy, looks at India’s growing demand for energy, and at how the development decisions the country makes today will to a large extent lock in place its energy needs and climate impact for decades to come. Radhika Khosla is a Fellow at the Center for Policy Research in New Delhi, India and India Fellow at the Oxford India Centre for Sustainable Development at the University of Oxford. She is also a visiting scholar at the MIT Energy Initiative, and a former Staff Scientist with the Natural Resources Defense Council. Related Content: Energy Transformation and Air Quality in India http://kleinmanenergy.upenn.edu/blog/2017/11/10/energy-transformation-and-air-quality-india Aligning Local Logic with Global Need http://kleinmanenergy.upenn.edu/policy-digests/aligning-local-logic-global-needSee omnystudio.com/listener for privacy information.

Owners of rooftop solar could soon begin selling power into wholesale electricity markets, the traditional domain of big coal, gas and nuclear generators. The catch: electricity markets need to get fully behind the switch. --- America’s electricity system is undergoing dramatic change, in particular as distributed energy resources – notably rooftop solar and battery storage – become more common. Taken in aggregate, total rooftop solar and electricity storage now equals the generation potential of several traditional power plants. As these resources grow more popular, their potential to impact the larger electricity system also grows. Accordingly, some in the electricity industry have recognized the potential for distributed energy to participate in the same competitive, wholesale electricity markets that have been the domain of large nuclear, gas and coal generators. Ari Peskoe, Senior Fellow in Electricity Law at the Harvard Law School Environmental Law Policy Program Initiative, weighs in on the growth opportunity that wholesale markets can provide to distributed electricity, and at the policy and economic challenges that remain to their participation in these markets. Ari Peskoe is a Visiting Scholar at the Kleinman Center for Energy Policy and Senior Fellow in Electricity Law at the Harvard Law School Environmental Law Policy Program Initiative. Earlier, as an energy attorney, he litigated cases before the Federal Energy Regulatory Commission. Related Content: So What Are Utilities Doing About Storage? http://kleinmanenergy.upenn.edu/blog/2017/10/27/so-what-are-utilities-doing-about-storage A Looming Bust for U.S. Solar Industry? http://kleinmanenergy.upenn.edu/blog/2017/09/25/looming-bust-us-solar-industry Examining the Role of Early-Stage Venture Capital Investment in Industry http://kleinmanenergy.upenn.edu/blog/2017/09/08/examining-role-early-stage-venture-capital-investment-energy Rate Decoupling and Economic and Design Considerations http://kleinmanenergy.upenn.edu/paper/rate-decoupling-and-economic-and-design-considerationsSee omnystudio.com/listener for privacy information.

A growing number of U.S. cities have set aggressive clean energy and efficiency targets, but the complexity and cost of energy transition can be daunting. Philadelphia’s Energy Manager offers insights into his city’s new plan to go 100% renewable and cut energy use. --- In September, the City of Philadelphia introduced its roadmap to dramatically reduce carbon emissions and move to 100% renewable energy. Philadelphia’s plan is a step toward fulfilling its commitment to lowering its carbon footprint, and comes as cities across the United States have moved to act on climate change as the federal commitment to address global warming has withered. Adam Agalloco, Philadelphia’s Energy Manager, outlines Philadelphia’s new Municipal Energy Master Plan, the means available to cities that aim to act independently to address climate change, and the costs of doing so. Adam Agalloco is Energy Manager for the City of Philadelphia and lead planner for Philadelphia’s Municipal Energy Master Plan, the city’s roadmap to reduce carbon emissions and adopt renewable energy. Related Content: Tilting at Windmills: The Emerging U.S. Offshore Wind Industry: http://kleinmanenergy.upenn.edu/policy-digests/tilting-windmills Comparative Path to Regional Energy Transition: http://kleinmanenergy.upenn.edu/pathways Aligning Local Logic with Global Need: http://kleinmanenergy.upenn.edu/policy-digests/aligning-local-logic-global-need Pennsylvania’s Gas Decade: Insights into Consumer Pricing Impacts from Shale Gas (2007-2016): http://kleinmanenergy.upenn.edu/paper/pennsylvanias-gas-decadeSee omnystudio.com/listener for privacy information.

The U.S. government has spent hundreds of billions of dollars over the past decade to rebuild coastal cities and towns following hurricanes, yet coastlines remain vulnerable to repeat disaster. Two Penn urban policy experts discuss coastal resiliency and the process by which government allocates recovery funds. -- Federal spending on hurricane disaster relief has risen dramatically since Hurricane Katrina devastated New Orleans in 2005. Federal agencies have paid out $200 billion dollars for coastal recovery since. And, more recently, Texas governor Greg Abbott projected that recovery from Hurricane Harvey could total $150 billion or more. As spending rises, the need to ensure that coastal towns and cities are more resilient to future, repeat disasters has come to the forefront. And, with much of the nation’s oil refining and chemical industry located in low lying coastal areas, the challenge includes fortifying energy infrastructure, and protecting communities from toxic hazards. Ellen Neises and Billy Fleming, urban policy experts at the University of Pennsylvania’s School of Design, discuss the process government uses to select and fund recovery projects, and how coastal areas can be made more resilient. Ellen Neises is Executive Director of Penn Praxis, the center for Applied Research and Planning at the University of Pennsylvania School of Design. Her recent work has focused on developing solutions to rebuild, protect and improve cities hit by Hurricane Sandy. Billy Fleming is Research Coordinator for the Ian L. McHarg Center at the University of Pennsylvania’s School of Design, where his research focuses on climate adaptation planning along the U.S. coast. During the Obama Administration, he worked on urban policy development on the White House Domestic Policy Council. Related Content Power Down in Puerto Rico: http://kleinmanenergy.upenn.edu/blog/2017/09/28/power-down-puerto-rico Hot Topics on Climate Change: http://kleinmanenergy.upenn.edu/policy-digests/hot-topics-climate-change Comparative Pathways to Regional Energy Transition: http://kleinmanenergy.upenn.edu/pathways Aligning Global Logic with Local Need: http://kleinmanenergy.upenn.edu/policy-digests/aligning-local-logic-global-needSee omnystudio.com/listener for privacy information.

Former EPA Administrator Gina McCarthy weighs in on the fate of the Clean Power Plan, and the EPA itself, under current Administrator Scott Pruitt. --- These are challenging times at the U.S. Environmental Protection Agency. In February of this year former Oklahoma Attorney General Scott Pruitt, who had sued the EPA more than a dozen times to block environmental and health protections, became the agency’s Administrator. In the months since, he has called for cuts to EPA programs, sought to repeal the Clean Power Plan, and debunk science on climate change. How far will EPA leadership may go in rolling back climate protections? And, more fundamentally, can the EPA operate as an objective steward of the environment and public health in an era when politics, rather than science, increasingly appear to set its agenda? In this episode of Energy Policy Now the Honorable Gina McCarthy, Administrator of the EPA during President Barack Obama’s second term, weighs in on the EPA’s current policy direction, the Trump administration’s attack on climate science, and the practical impact of a Clean Power Plan rollback on carbon reduction. Gina McCarthy served as EPA Administrator from 2013 to 2017 under President Barack Obama. She recorded this podcast during her visit to the Kleinman Center for Energy Policy at the University of Pennsylvania, to receive the Center’s annual Carnot Prize in celebration of her contributions to environmental policy and to securing a sustainable energy future during her tenure with the EPA. She is currently Menschel Senior Fellow at Harvard’s T.H. Chan School of Public Health. Related Content from the Kleinman Center Perry’s Regulatory Curve Ball to Bailout Baseload: http://kleinmanenergy.upenn.edu/blog/2017/09/29/perry’s-regulatory-curve-ball-bailout-baseload Reconciling Subsidized Resources in PJM’s Competitive Electricity Markets: http://kleinmanenergy.upenn.edu/paper/reconciling-subsidized-resources Energy Storage in PJM: http://kleinmanenergy.upenn.edu/paper/energy-storage-pjm Hot Topics on Climate Change: http://kleinmanenergy.upenn.edu/policy-digests/hot-topics-climate-change Zero Emissions Credits: An Overview: http://kleinmanenergy.upenn.edu/blog/2017/08/31/zero-emissions-credits-overview Shot and Chaser: http://kleinmanenergy.upenn.edu/blog/2017/08/21/shot-and-chaser The Carbon Tax: http://kleinmanenergy.upenn.edu/policy-digests/carbon-taxSee omnystudio.com/listener for privacy information.

Can tightly regulated coal mining help undo decades worth of environmental damage caused by the coal industry? A Pennsylvania DEP official, and a mining executive, discuss efforts to remediate water and land in the state’s Anthracite coal region. -- Pennsylvania’s economy has long been tied to its coal industry. In the 19th century the state’s pioneering coal companies fueled America’s industrial revolution, and thousands of mining sites opened over the decades that followed. Yet, over a century later, many of Pennsylvania’s coal mines have closed as the resource’s primacy has waned. John Stefanko, Deputy Secretary for the Office of Active and Abandoned Mine Operations at Pennsylvania’s DEP, and Greg Driscoll, Chief Executive of Blaschak Coal Company, look at the environmental damage that remains after mines have been abandoned, and on cooperation between today’s coal industry, and regulators, to clean up some of that damage. The focus is on the Anthracite coal industry of Northeastern Pennsylvania, where the remains of a once large coal industry attempts to find profits, while bearing costs for cleaning up the damage of past decades. John Stefanko is Deputy Secretary for the Office of Active and Abandoned Mine Operations at Pennsylvania’s Department of Environmental Protection. Related Content: The Carbon Tax: http://kleinmanenergy.upenn.edu/policy-digests/carbon-tax Ending Fossil Fuel Tax Subsidies: http://kleinmanenergy.upenn.edu/policy-digests/ending-fossil-fuel-tax-subsidies Comparative Pathways to Regional Energy Transition: http://kleinmanenergy.upenn.edu/pathways Revitalizing Coal Communities: http://kleinmanenergy.upenn.edu/paper/revitalizing-coal-communitiesSee omnystudio.com/listener for privacy information.