Topic: alternative energy
A Tradition Like No Other? NRC Approves Nuclear Reactors
For the first time since 1978, the Nuclear Regulatory Commission (NRC) has approved the construction of two new nuclear reactors in the United States. The reactors are being built at the Vogtle nuclear power plant complex near Augusta, Georgia by a group of utilities headed by the Southern Company. The reactors are expected to cost $14 billion and will be backed by an $8.3 billion loan guarantee from the Department of Energy.
Although new reactors have become operational during the last three decades, all had received their initial licenses prior to 1978. Safety concerns following the Three Mile Island accident, recently underscored by the Fukushima disaster in Japan, have been a major factor in the lack of approvals. However, the new reactors, which are being built by Westinghouse, are designed to avoid the problems that affected reactors in the past. For instance, the new reactors can withstand a complete blackout and include a safety feature that shuts down the reactor using passive (rather than electrical) cooling systems.
Despite the benefits of nuclear power – reliability and negligible green house gas emissions – it is unclear whether the approvals will signal a rebirth for the nuclear power industry. There are still environmental concerns over the disposal of nuclear waste, as well as concerns about the huge costs associated with bringing a reactor online. However, with an additional 20 applications pending before the NRC, nuclear power has not completely melted down quite yet.
New Hope for PACE Program
A recent federal district court ruling in California has revived the Property Assessed Clean Energy (PACE) program, a policy that allows municipalities to issue bonds to property owners as a way to finance the upfront costs of energy-efficient improvements such as solar panels. The program has been lifeless since July 2010, when the Federal Housing Finance Agency (FHFA) ordered Fannie Mae and Freddie Mac not to underwrite mortgages with PACE loans, as PACE liens are senior to home mortgages.
The court cited the FHFA’s failure to solicit public comment and ordered the FHFA to conduct hearings and open a “full-blown” rule-making process on the PACE program.
While PACE legislation has been adopted in 28 states, only three series of bonds have been issued to date. Advocates are hopeful that this new ruling will bring homeowners one step closer to finding a financing solution for clean energy projects. In California, there is extra reason for hope as legislators have taken an additional step to facilitate the issuance of PACE bonds. Enacted in October 2011, SB 555 expands the definition of PACE bonds to include bonds secured by a tax levied by community facilities districts, thus making clean energy projects acceptable improvements under the Mello-Roos Act.
For more information on the PACE program’s developments, see “Powerful Solar Financing Program for Homeowners Gets Reprieve,” in Forbes.
Construction of Mojave Desert Solar Project Underway
The pros and cons of solar fields will be on bright display in Ivanpah Valley, CA, during the coming months. BrightSource Energy plans to construct a $2 billion solar project that will include 173,500 mirrors erected over more than 3,500 acres (approximately 6 square miles) of public land. The mirrors are expected to generate 370 MWs of solar power – enough to power 140,000 residences at peak usage levels.
While this project appears to be a laudable ally in the battle against global warming, it does not come without some controversy. In order to build the new plant, BrightSource has razed several acres of indigenous vegetation and displaced numerous species of desert-dwelling wildlife. Public parks, including Joshua Tree, Death Valley and the Mojave National Preserve, will be affected by the development. Some experts say that the development could kill many of the desert tortoises that reside in the area, a species whose existence is already threatened.
An article about the trade-offs related to the BrightSource solar power project can be found in the Los Angeles Times.
Judge Rules Part of AB 32 Unconstitutional
A district court judge in California dealt a major setback to AB 32, California’s landmark global warming law. With the goal of reducing greenhouse gas emissions to 1990 levels by 2020, AB 32 set a Low Carbon Fuel Standard that required the carbon content in gasoline to be reduced by 10% and required that 20% of total gasoline used in the state come from renewable fuels.
The law was one of the first in the country to use a “carbon intensity” analysis to determine the total amount of green house gases emitted during the production and transportation of fuel. By capping the amount of carbon permissible in the fuel, the law would provide marketable credits to producers and distributors who emitted less carbon. Those who could not comply with the standard would face increased fuel costs as they would be forced to buy additional credits.
However, the law, which went into effect this year, may have stalled before even leaving the gates. According to the judge, the new standard unconstitutionally discriminated against out-of-state producers and attempted to regulate activity that occurred outside of state borders. As a result, the law violated the Dormant Commerce Clause of the Constitution.
The lawsuit was brought by various farm groups, ethanol producers, refiners and truckers. The California Air Resources Board has said it would appeal.
Court Finds HOAs Have More Rights to the Sun
“Court Finds That HOA Has More Rights Regarding Where Solar is Installed,” posted today on CleanEnergyAuthority.com, discusses the Tesoro V. Griffin case and the rights homeowners associations (HOAs) have under the California Solar Rights Act. See the full post in which Goodwin Procter Partner Doug Praw is quoted here.
Clean Energy Spending to Double by 2020
Global spending on new renewable energy projects has increased dramatically during the last two years. According to a report by Bloomberg New Energy Finance, the annual value of installed renewable energy capacity hit a record $195 billion in 2010. By 2020, experts predict that annual clean energy investments will climb to $395 billion and eventually reach $460 billion in 2030. This translates to a 3% increase in total energy production coming from renewable energy sources.
The forecast also predicts a shift in the location of these investments. While Europe, the United States and Canada will continue to see steady project construction, much of Asia and other developing countries will contribute significantly to the rise in annual investments. India, the Middle East, Africa and Latin America are expected to show increases in spending rates of between 10% and 18%. China is expected to far surpass most countries – in just four years, it is projected to spend almost $50 billion on renewable energy projects.
Driving this investment spike is renewed excitement in many forms of renewable energy. Steep reductions in the cost of solar facilities, which ironically helped lead to the recent bankruptcy of solar power company Solyndra, is expected to spur an investment of $130 billion in solar projects over the next 20 years. Similarly, it is anticipated that emerging markets such as Australia, Turkey, Africa and Latin America will spend many of their energy dollars on onshore and offshore wind facilities.
@KBHome Receives 2011 LEED for Homes Award
KB Home’s Primera Terra community has received a U.S. Green Building Council (USGBC) 2011 LEED for Homes Award in recognition of “demonstrated leadership in the residential building marketplace.” Primera Terra is a 52-condominium community outfitted with energy saving and water conservation features located in Playa Vista, CA, an established pedestrian-friendly master-planned community.
KB Home estimates that the heating and cooling costs of the Primera Terra homes are as little as $57 per month. Efficiency levels were achieved without incorporating a solar power system or other renewable energy resources. Instead, KB focused on optimizing the building envelope and incorporating features like a cool roof to keep homeowners’ monthly operating costs low.
KB Home was also recently recognized by the U.S. Environmental Protection Agency (EPA) for its “great strides in increasing water efficiency and awareness of the WaterSense label” with a 2011 WaterSense Partner of the Year award. WaterSense-labeled fixtures are standard features in all new homes built by KB Home.
LEED Pilot Credit for “Demand Response” Revised
Pilot Credit 8: Demand Response, introduced in 2010 under the LEED Pilot Credit Library, USGBC’s mechanism for testing proposed credits that have not yet been formally vetted, has been revised. The credit attempts to incentivize participation in automated demand response (“DR”) programs that are important to developing a smart grid. DR refers to the ability to control consumption of electricity to better correspond with supply conditions.
Projects will earn a point toward LEED certification if they can show a 10% shift in their energy consumption away from peak energy periods. Extra points may be earned by projects that employ semi- or fully-automated demand response programs in their buildings. Education and market feedback are also incorporated into the program to help promote the sharing of information and to gauge the effect that the building community can have on the grid and the environment.
Read more about how the credit works here.
Weekly Quick Hits
EPA Promotes Green Development in State Capitals – The Environmental Protection Agency (“EPA”) is continuing its Greening America’s Capitals project that launched in 2010 by partnering with the capital cities of Alabama, Arizona, Mississippi, Nebraska, and the District of Columbia this year, in order to promote green development and economic revitalization. (EPA)
Stickers, Checklists Help Schools Cut Energy Costs – New York schools managed to cut their energy consumption by approximately 11% since 2008, by implementing relatively simple changes that aim to change people’s behavior. (New York Times)
Feds Approve Largest Public Solar Project to Date – The recently approved 550-megawatt Desert Sunlight Solar Farm project—located in the California desert east of Palm Springs—is set to generate enough power for more than 165,000 homes, create 630 jobs, and pump $336 million into the local economy. (U.S. Department of the Interior)
LA Debates Future of Trash, Recycling Policies – Los Angeles officials are considering making changes to the trash pickup and recycling policies that apply to apartment buildings, as residents express concerns regarding the current system. (Los Angeles Times)
LADWP’s Revised Solar Incentive Program
Los Angeles Department of Water and Power’s (LADWP) revised Solar Incentive Program takes effect September 1, 2011. Since the program’s initial launch in 2007, rebates for commercial buildings have dropped 8% and incentives for governments and nonprofits have fallen by 32%.
The program is currently budgeted to provide $60 million in financial incentives to LADWP residential and non-residential customers who purchase and install their own solar power systems. Additional funds are also available to those who purchase photovoltaic modules manufactured within the City of Los Angeles.
