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Congress & Reconciliation: Why This New Clean Energy Program Matters

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Originally published by Union of Concerned Scientists, The Equation.
By John Rogers

With its passage out of a key committee in the House of Representatives last week, the Clean Electricity Performance Program (CEPP) is a step closer to reality, as part of the powerful budget reconciliation bill (the Build Back Better Act). The bill, and that provision, still have a ways to go to get through Congress, as the House and Senate negotiate a final package. But it’s really important for clean energy to have this and complementary pieces moving — and even more important to get strong versions of them across the finish line.

To understand why, consider how the current design of the CEPP component answers the questions we had recently offered for gauging the robustness of the policy. The good news is that there’s a lot to like in what our elected representatives have laid out so far, and a whole lot to want to defend as its legislative journey continues.

And as for those five questions … the answers are very closequite possiblycheckTBD, and yes. Here’s how the House language stacks up.

Would the targets be as strong as needed? Very close.

While “as needed” is tricky, since we need much more globally than has been put on the table so far, one useful benchmark might be the current US commitment under the Paris climate accord (50- to 52-percent reductions in heat-trapping emissions below 2005 levels by 2030), and specifically the power sector implications of that (approximately 80-percent clean electricity).

The focus of the CEPP is retail electricity providers — investor-owned utilities, municipal utilities, electric cooperatives, and third-party retail electricity providers in states with competitive power markets. The CEPP that passed out of the House Energy and Commerce Committee (E&C) would reward those providers that increased their clean electricity supply by at least 4 percentage points in a given year (or per year, given some multiyear flexibility written into the plan). And it would collect payments from those that missed that benchmark.

That level of annual growth across the board, coupled with other complementary programs moving through the Build Back Better Act, such as clean energy tax incentives, would get us most of the way to the national target of 80 percent by 2030, according to analysis by the Rhodium Group. And the CEPP as envisioned provides a strong incentive for providers to beat that 4-percent-per-year level of growth to get us the rest of the way, together with all the clean energy pushes from states, utilities, companies, institutions, and households.

Would there be enough funding to power the transition? Quite possibly.

The early stages of the budget reconciliation process had the House and Senate approve the key top line number of $3.5 trillion, plus the allocations to the various committees. That resulted in $150 billion carved out for the CEPP within the portion the E&C is shepherding.

Is that sum enough? The performance grants for providers hitting the 4-point target would be $150 per megawatt-hour (MWh) of increased clean energy above a certain level. And that math — $150/MWh times the number of MWh needed to get to 80-percent clean electricity — works out pretty well, coming in close to the $150 billion.

So the next question is whether the resulting credit (including avoided payments for coming in too low) is enough to motivate providers to make the necessary push — and make the transition as easy and affordable as possible for customers. That level of incentive should make the willingness to invest in new renewables (directly or indirectly) at the pace and scale required all the more powerful.

So grants at that level under the CEPP could be a powerful complement to the extensions of the tax credits also included in the House reconciliation package to drive high levels of clean energy deployment.

Photo credit: John Rogers

Would the funding be used well? Check.

The current House text is explicit about what a provider can do with the performance grants it earns: use it “exclusively for the benefit of the ratepayers.” It then includes examples, such as direct bill assistance, clean energy and efficiency investments, and worker retention.

We agree: The CEPP grants should be used for purposes that directly and solely benefit the public by achieving the transition to clean electricity at a low cost and for maximum gain to consumers. So that’s good, strong language.

And it can be built on. We’ve recommended to lawmakers that they further specify allocation of the resources to ensure that this policy is doing its part to meet the administration’s Justice40 effort aimed at getting at least 40 percent of the benefits from federal investments to flow directly to disadvantaged communities.

Another clause in the E&C bill helpfully addresses the penalty portion for providers that don’t make the threshold in a given period: The legislation would let those payments be recovered only from “shareholders or owners.” That stipulation is particularly important in the case of investor-owned utilities.

Will it drive the cleanest sources? TBD.

As I’ve noted before, there’s low-carbon energy and then there’s really clean energy. Wind and solar would be the overwhelming favorites for providing the bulk of the new electrical capacity fueled by the CEPP. But the House does leave the door open to other options.

The E&C bill doesn’t spell out particular sources for inclusion or exclusion, instead setting a carbon intensity target — the maximum carbon pollution (carbon-dioxide equivalent on a 20-year global warming potential basis) per unit of electricity allowed for a source to qualify.

The good news is the House’s carbon intensity target is potentially quite strong, if it includes the emissions from the fuel supply (“upstream” emissions), although that isn’t clear from the current bill language. If upstream emissions are in there (again TBD), any fossil fuel generation would need a pretty high level of carbon capture and storage to count for the CEPP. A colleague has estimated that, with those upstream emissions included, coal or gas plants would need to capture and store at least 80 to 90 percent of their carbon dioxide emissions.

But the legislation needs to be clearer about those upstream emissions indeed being in the calculations. And the Union of Concerned Scientists (UCS) also has recommended other changes to make sure this section is as strong as it needs to be:

  • explicitly excluding particular sources, such as municipal solid waste incineration and conventional natural gas generation;
  • prorating performance grants for resources that meet the carbon intensity standard but are still above zero; and
  • putting in place strong guardrails for bioenergy, hydroelectric, carbon capture and storage, and nuclear projects to address other environmental and fuel-cycle impacts.

Would all electric utilities be covered? Yes!

This one is maybe the most straightforward. The E&C language seems quite clear that all retail electricity providers, regardless of type or size, would be covered. That’s good news, because it means that all electricity customers would benefit from the transition to clean energy.

Stronger is better

So a strong performance by the House Energy and Commerce Committee, with a few things to strengthen and a lot worth defending as this piece continues through Congress.

And all this is in the context of maintaining the crucial top line $3.5-trillion number — and the boldness needed for a “rapid, just transition to clean energy.”

Be assured that UCS will continue to push for the reconciliation package as a whole — and you can, too, by contacting your members of Congress. And we also will continue to weigh in to make sure that the Clean Electricity Performance Program lives up to its full promise and becomes a powerful tool for our clean energy transition.

 

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Source: https://cleantechnica.com/2021/09/24/congress-reconciliation-why-this-new-clean-energy-program-matters/

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Never Mind the Torque Talk, Feel the Romance 

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As relayed by Majella Waterworth to David Waterworth 

Conversations collected at the AEVA EV experience day in Cleveland, Queensland, 26th September 2021.


Two young men were enamored by our Tesla Model 3. Majella showed them the tech and then got the comment: “I couldn’t afford this and an expensive engagement ring for my fiancé.” Apparently, he was expected to pay 3 months’ salary — about  $10,000 — for the ring.  My wife, who is quite the expert on jewelry, suggested he look at estate jewelry. But he said if he bought something second hand he would be divorced before he got married.

Then there would be the expense of the date on which he would present the ring. So, she showed him Romance Mode, Netflix access, the quality of the music, and how the panoramic glass roof would be the piece de résistance of a very affordable romantic date. The lower boot in the back would be just right for the chilled champagne and beer, and the frunk would hold the pizzas. Now, that was a hit, and they all had a good laugh.


A young couple arrived and began asking the usual questions about range, charging, and price. They had a two-year-old and another on the way in less than 2 months. Majella suggested they check out the back seat, and when they saw the baby seats, they realized a Tesla could be a family car. They checked out the screens that shielded the glass roof and made the car more comfortable for the children. They were impressed by the space afforded by the frunk and the two boots – you need all the room you can get when you are out with two small children. Karaoke with the Disney tunes was a hit, as was the ability to use Spotify for more kids music.

They live in a unit block and were concerned about where they could plug in. Majella showed them the PlugShare app on her phone. Dad was really surprised at the amount of information available – type of plug, speed of charging, availability. He was impressed at how many charge points there were close to home. He loved the lightning bolt on the Tesla screen that showed where the Superchargers were and how to get to them. 

Photo by Zach Shahan/CleanTechnica.


Majella is a mother and grandmother. She has practiced her people skills over many years in retail. She is an amateur gemologist who enjoys faceting gemstones she has found herself.

 

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Source: https://cleantechnica.com/2021/10/17/never-mind-the-torque-talk-feel-the-romance/

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Bright Yellow Rivian R1T Spotted In NYC

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Sam Sheffer shared a short video of a beautiful, bright yellow Rivian R1T to TikTok yesterday. The electric truck was spotted in New York City and Sam noted in the video captions that he had a longer video on his YouTube channel — although, at the time of this article publishing, it is not yet up. In his TikTok video, Sam started with the front of the truck and showed that the frunk opened and closed automatically (sorry, Earl, no frunkpuppy submission here).

As with Tesla, Rivian has cameras everywhere. There are also very cool and unique roof-rack latches that easily snap on and off and can also be moved to the back of the truck above the bed area. The tires are 20 inch tires.

“Now, Rivian says this is an adventure vehicle, so in case of emergency, check this out,” Sam says while opening the door to the truck and then pressing a button along the inside of the door. “Inside the door is a built-in flashlight. How cool is that? And if the flashlight wasn’t enough for you, inside the center console thing is a portable Bluetooth speaker that charges in here!”

The truck also has an automatic liftgate that is activated by the push of a button and a gear tunnel where you can put anything from skateboards to groceries in. He also gave an inside look at the cab and showed the displays and the wooden dash. The seats are made with vegan leather, he added.

While demonstrating the charging port, which has a light to help its owner see at night, he asked, “Is this a transformer or is this a truck?”

You can watch Sam’s video on TikTok here.

 

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Source: https://cleantechnica.com/2021/10/17/bright-yellow-rivian-r1t-spotted-in-nyc/

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US & Denmark Unveil Big Plans For Wind Power

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Here’s the thing about renewables like wind and solar that many people don’t get. The “fuel” that makes them work is free. That is not to say the devices we construct to harvest energy from wind and solar don’t cost anything and don’t contribute some greenhouse gas emissions. But let’s not pretend that somehow all the concrete, steel, and piping that go into making a thermal generating plant are inexpensive and carbon free.

And yes, getting the power generated by renewables from where it is made to where it is used requires building new transmission lines. But they don’t leak oil and gas into our rivers and oceans the way pipelines do. Isn’t it odd how fossil fuel apologists question the need for new transmission infrastructure when it involves electricity from renewables but never do when it comes to electricity from thermal sources? One is a scourge while the other is a blessing? Does that make any sense?

The central point is, once the fuel for thermal generating plants gets consumed, we have to go out and find more of it. Prices for coal, oil, and gas aren’t stable. They fluctuate constantly — sometimes wildly — which makes it hard to make long term business decisions. The world is about to get a hard lesson in the true cost of relying on fossil fuels this winter. With unnatural gas in short supply, prices are expected to skyrocket. The cost of electricity in some places could double or triple as a result.

Yet the cost of sunlight never goes up. It is free and always will be. All we have to do is gather it up and distribute it efficiently and humans will have all the electrical energy they could possibly need forever.

Wind Is Solar

Wind is just solar energy in a different format. Think about it. Wind is air moving from one place to another. And what causes the air to move? Temperature differences. And what causes temperature differences? The sun. Whether we are talking about a breeze that fills the sails of a boat or the jet streams that encircle the globe, the sun is the ultimate source of all air movements on Earth.

Denmark Opts For Wind Islands

Denmark has been experimenting with offshore wind power since 1991. It’s no wonder two of the world’s largest wind turbine companies — Vestas and Ørsted — are both Danish. For years, it has thought about constructing artificial islands in the North Sea and the Baltic Sea to serve as bases for offshore wind farms. Now the government has officially sanctioned the idea. The Danish government will own 50.1% of the islands with private partners owning the rest.

The island in the North Sea will have a capacity of 3 GW, which is equal to the electricity consumption of three million households and twice the amount of energy provided by all offshore wind turbines in Denmark today. It also corresponds to approximately half of Denmark’s total electricity consumption. The capacity will be expanded in phases to a maximum of 10 GW, which could cover the electricity consumption of 10 million households and contribute to the further electrification of Denmark and its neighboring countries.

In the Baltic Sea, the artificial island will be located offshore near the island of Bornholm. Electricity from the offshore installation will be distributed from Bornholm to electricity grids on Zealand and neighboring countries. The turbines off the coast of Bornholm will have a capacity of 2 GW, corresponding to the electricity consumption of two million households.

The decision to establish the two energy islands was reached under the climate agreement of 22 June 2020, which was entered into by the Danish Government, the Liberal Party, Danish People’s Party, Social Liberal Party, Socialist People’s Party, the Red-Green Alliance, Conservative Party, Liberal Alliance and the Alternative.

The US Offshore Wind Initiative

Offshore wind is popular because the equipment can be placed well out to sea where it is invisible to people on land. We don’t object to a welter of poles, wires, and transformers cluttering up our built environment but heaven forfend we have to deal with the sight of a spinning turbine. Eeeek! Also, wind speeds tend to be more stable and predictable out over the ocean than they are on land, which makes offshore wind more reliable.

This past week, the US government announced plans for seven major offshore wind farms along both coasts and in the Gulf of Mexico. They are part of a plan by the Biden administration to create 30 GW of offshore wind energy by 2030 — enough for 10 million homes. Sharp eyed readers will note Danish authorities expect that much electricity to power 30 million homes, which tells you something about how much electricity the average home in the US uses compared to homes in the rest of the world.

Interior Secretary Deb Haaland said her department hopes to hold lease sales by 2025 for areas off the coasts of Maine, New York and the mid-Atlantic, as well as the Carolinas, California, Oregon and the Gulf of Mexico. The projects could avoid about 78 million metric tons of carbon dioxide emissions while creating up to 77,000 jobs, according to The Guardian.

In addition to offshore wind, the interior department is working with other federal agencies to increase renewable energy production on public lands, Haaland said, with a goal of at least 25 gigawatts of onshore renewable energy from wind and solar power by 2025.

The government’s wind initiatives will face a host of technical and political challenges. Who will ever forget a certain ex-president telling a group of fawning admirers that wind turbines “kill all the birds”? Yet the same people don’t bat an eye when offshore oil rigs (many of which are visible from land) spill millions of gallons of crude oil into the ocean, when pipelines threaten the water supply of millions of people, or fracking turns domestic drinking water toxic. Can you say “hypocrites,” boys and girls? Yeah, we knew you could.

The government is taking steps to address those concerns, however. The DOE announced last week it allocate $11.5 million to study the risks offshore wind development may pose to birds, bats, and marine mammals. It will also monitor changes in commercial fish and marine invertebrate populations at an offshore wind site on the east coast and spend $2 million on visual surveys and acoustic monitoring of marine mammals and seabirds at potential wind sites on the west coast.

“In order for Americans living in coastal areas to see the benefits of offshore wind, we must ensure that it’s done with care for the surrounding ecosystem by coexisting with fisheries and marine life – and that’s exactly what this investment will do,” Energy Secretary Jennifer Granholm announced.

The Takeaway

The bottom line is what is known in the industry as the levelized cost of electricity — the triple net, absolute measure of what it costs to generate kilowatt of electricity. Water seeks its own level, nature abhors a vacuum, and business craves the lowest cost option. Today, the LCOE of wind and solar energy is lower than thermal generation and getting cheaper all the time. And why not? The cost of fuel for renewables is zero. It doesn’t get much cheaper than that!

Fossil fuel adherents will fuss and fume about national security, energy independence, and the wonders of military might, but the truth is renewables not only slash carbon emissions, they can enhance national security, provide energy independence, and eliminate much of the need for standing armies to any country and all for free. What could we possibly be waiting for?

 

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Source: https://cleantechnica.com/2021/10/17/us-denmark-unveil-big-plans-for-wind-power/

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Cool & Fun Alternatives Manufacturers Can Use To Lower Insurance Premiums For Fast EVs (Part 2)

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In Part 1, I explored the problem of high insurance rates for EVs, and the problems that can come with giving insurance companies even more data. Long story short, there are life-and-death level privacy risks that come from having your personal data out there, the data isn’t as good as we think, and insurers will eventually want even more of our data or money.

In this article, I want to explore the problem a little more so we can see why alternative approaches are necessary, and then go through some of the options I’ve come up with.

I May Be Wrong, But I’m Not Alone

I know not all readers will agree with what I’ve had to say in Part 1, and some will think I’m being extreme or paranoid. Keep in mind that I’m not saying that you personally shouldn’t be able to purchase such insurance or share your personal data with whoever you want. I think customer choice is a great thing, and you should be able to choose that option if you’re comfortable with it and think it suits you.

Even if us “luddites” who don’t want telematics-based insurance are 100% wrong and 200% stupid, around a third of insurance customers aren’t comfortable sharing telematics data, so addressing this concern with alternatives is still a smart move. Leaving a third of the market to a company’s competition isn’t a great move, and if a manufacturer’s insurance monitoring programs are really saving lives, having 1/3 of the population sit those out leaves a lot of chances to improve safety on the table.

Manufacturers and insurers should come up with alternative approaches that we can choose from depending on our comfort level. That way, people comfortable with the risks of telematics-based insurance can still use it, while people like me can have alternatives to choose from. Plus, you can do telematics plus alternatives, and save even more!

On top of this, public support for innovative insurance programs can be improved when people aren’t reading about how something like a “safety score” could lead to bad driving. People don’t like to feel like guinea pigs, especially when it’s for an experiment they didn’t sign up to be part of. Once again, even if these concerns are unfounded, they should still be considered if a manufacturer doesn’t want the government coming down on them.

Things Any Alternatives Must Do

High performance vehicles often come with high insurance premiums because the history of other owners with the same make and model isn’t so great. Big wrecks, a high number of small wrecks, or anything else that drives the average cost of claims for that make and model up leads to a high “symbol,” and high premiums for the owners of that vehicle type.

Telematics helps insurers offer lower rates because (in theory) they don’t have to guess at who is more likely to do something irresponsible with a vehicle that has 2–5 times the power of the average family sedan they had a good driving record in before.

For any alternative solution to work at reducing what you pay for insurance, it must (A) lower the actual number of wrecks and the costs of those wrecks for the make and model in the wild and/or (B) help insurers to see that you’re personally a less risky driver. Ideally, both should happen.

Idea #1: Tutorial Mode For New Owners

One of the biggest problems with fast cars is that it’s a lot easier to get in over your head. People who have been driving a gas car with only 100–300 horsepower don’t know how different a vehicle’s dynamics can be with 500+ horsepower and full, instant torque from zero RPM. Thus, even experienced drivers can make big, big mistakes.

If manufacturers offered an optional “Tutorial Mode” for new owners, insurers would likely approve a discount for drivers that went through the tutorial and gradual got used to the higher power levels a performance EV offers.

The car can start out offering only a small fraction of its full potential power for a set number of miles, while offering safety tips through the infotainment system. With a reasonably good driving score (with plenty of leeway for the occasional need to do things like stomp the brakes), the vehicle can unlock higher levels of power a little at a time until the driver finishes the tutorial and has full power at their disposal.

No data, other than that the driver passed the tutorial program, would need to be sent to insurers, so privacy concerns wouldn’t be an issue if one chose to use these “training wheels.”

Idea #2: In-Person Training For New Owners

The Jurassic Park-like entrance to the Bronco Off-Roadeo.

Earlier this year, I had a lot of fun going to Ford’s “Bronco Off-Roadeo” near Austin, Texas. The event is meant for new Bronco and Bronco Sport owners to get familiar with the off-road capabilities of their vehicles in a controlled environment with professional instructors. Perhaps more importantly, the training time is included in the price of the vehicle.

Not only was it a fun experience and a great show that Ford put on, but I left the event knowing a lot more about how the new Ford Bronco works, and where the vehicle’s features would work best. I didn’t leave there knowing everything, but anyone would be a safer off-roader after attending such an event.

The gathering area for the training drives.

There’s no reason that other manufacturers, including the manufacturers of high-performance EVs, couldn’t do the same. Insurance companies already give discounts for additional driver training, so this would be a great approach.

Idea #3: In-Car Virtual Reality Training

In-person training is expensive, especially if a customer has to travel to the event. Fortunately, modern technology gives us other options, and today’s EVs are well-suited to this kind of thing.

It may surprise some readers that the United States Air Force uses the DCS World flight simulator software to train A-10 Warthog pilots. The simulator runs on a normal gaming computer, using off-the-shelf VR goggles like the Oculus Quest. Add a decent set of controls (joystick, throttle, and a few other odds and ends–all available for cheap on Amazon), and you can provide a person with a simulation of flying that’s close enough to the real thing for the Air Force to allow it to serve as training time.

Here’s the thing: Tesla already uses the vehicle’s controls for in-car games. Beach Buggy Racing 2 Tesla Edition uses the car’s steering wheel and pedals to control the video game car on the car’s center display.

Tesla’s computing hardware is also up to the task of powering advanced VR software, especially the newer ones. So, that’s not going to get in the way. Add some power-steering-based wheel force feedback and modified sim racing software to the car, work any adjustable suspension to add realism, plug in a pair of VR goggles, and you can have a very robust and realistic car simulator software.

The gaming potential of using a Tesla as a sim racing rig is cool on its own, but it could also serve as a great virtual environment for safety training. While parked, the driver can experience all sorts of driving situations we would rather not ever see on the real streets, and learn to effectively deal with them to avoid collisions.

This could enable every Tesla to come with a months-long advanced driver training course that drivers could go through in their spare time to get insurance discounts. If other manufacturers’ in-car computers are sufficient to do this, any EV could potentially serve as a training area.

I’ve personally tried DCS World, and found the experience very realistic. I’ve also done Star Wars Squadrons in VR, and while I have no idea what flying a TIE fighter is really like, it did feel very realistic. But, none of my personal experience is anywhere close to what an Air Force flight instructor or a professional race car driver has. If today’s VR is good enough for them, it should be good enough for anybody.

Do You Have More Ideas?

I’m going to hand this back to the readers now. Do you have any ideas that EV manufacturers could use to improve safety? Do you have any other ideas to reduce insurance costs without introducing potential dealbreakers like monitoring or tracking?

I’d love to hear about them in the comments!

Featured image by United States Air Force (Public Domain)

 

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Source: https://cleantechnica.com/2021/10/17/cool-fun-alternatives-manufacturers-can-use-to-lower-insurance-premiums-for-fast-evs-part-2/

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