Energy Tradeoffs Podcast #28 – Sanya Carley

In this week’s EnergyTradeoffs.com podcast episode, the University of Colorado’s Sharon Jacobs interviews Sanya Carley of Indiana University about Sanya’s work on Alternatives talks with about Sanya’s work on “Energy Justice.”

Sanya explains her efforts to identify communities that are particularly likely to be harmed as the country moves to cleaner energy sources. She describes steps that the government can take to address these disparate impacts and how to allow affected communities to participate in developing solutions.

This conversation relates to a number of Sanya’s recent publications, including a paper titled “A framework for evaluating geographic disparities in energy transition vulnerability,” that was published in Nature Energy in 2018.

The Energy Tradeoffs Podcast can be found at the following links: 
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Energy Tradeoffs Podcast #26 – Michael Gerrard

This week’s EnergyTradeoffs.com podcast episode features Columbia’s Mike Gerrard talking with Shelley Welton about his research on “Deep Decarbonization: Legal Impediments to a Massive Renewables Build-Out.”

In the interview, Mike explains why dramatic cutting U.S. greenhouse gas emissions will require a massive build out of new zero-carbon power sources to 1) replace coal and gas power plants and 2) electrify the other parts of the energy system that currently depend on fossil fuels, such as gasoline for cars and natural gas for heating. Mike and Shelley explore how federal environmental statutes, especially the National Environmental Policy Act, are holding up new investment in renewable energy.

The discussion relates to a larger project, known as “Legal Pathways to Deep Decarbonizaton” and Mike’s 2017 article in the Environmental Law Reporter, “Legal Pathways for a Massive Increase in Utility-Scale Renewable Generation Capacity.”

The Energy Tradeoffs Podcast can be found at the following links: 
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Energy Tradeoffs Podcast #24 – Arne Olson (Part II)

This week’s EnergyTradeoffs.com podcast episode is Part II of Arne Olson‘s discussion with David Spence on “Modeling Decarbonization in the West.” This two-part series covers Arne’s research on achieving a reliable transition to low-carbon energy on the West Coast. Today’s 15-minute podcast episode starts where the last one left off, focusing on California.

Arne describes why California may need to maintain some natural gas power to address wintertime shortages, unless it is able to develop significant nuclear power or long-term energy storage.

The interview builds on another of Arne’s recent papers, “Long-Run Resource Adequacy under Deep Decarbonization Pathways for California.”

The Energy Tradeoffs Podcast can be found at the following links: 
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Energy Tradeoffs Podcast #23 – Arne Olson

This Thursday’s EnergyTradeoffs.com podcast episode features Arne Olson talking with David Spence about his research on achieving a reliable transition to low-carbon energy on the West Coast. This week’s 18-minute podcast is the first part of a two-part series on “Modeling Decarbonization in the West,” and it focuses on the Pacific Northwest.

Arne and David’s discussion focuses on the reasons that natural gas may play a continuing useful role in the grid as it moves to lower and lower carbon emissions. Arne explains why the grid can decarbonize while maintaining natural gas power to ensure reliability during emergencies.

The interview builds on Arne’s recent paper, “Resource Adequacy in the Pacific Northwest.”

The Energy Tradeoffs Podcast can be found at the following links: 
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Energy Tradeoffs Podcast #22 – Leah Stokes

Happy new year! For this week’s EnergyTradeoffs.com podcast interview, we have David Spence interviewing Leah Stokes, from the University of California – Santa Barbara about her research on “The Politics of Technology Transitions.”

Leah and David discuss politically sustainable methods of accomplishing an energy transition, focusing on Leah’s research on the history of policies supporting renewable and zero-carbon technologies. She traces a trajectory for transition that begins with subsidies to nurture new technologies until they are politically potent enough to take on incumbent industries. Leah and David also discuss Texas’s support for solar and wind power.

The discussion builds on three papers that Leah has recently published with co-authors: “The political logics of clean energy transitions,” “Politics in the U.S. energy transition: Case studies of solar, wind biofuels and electric vehicles policy,” and “Renewable Energy Policy Design and Framing Influence Public Support in the United States.”

The Energy Tradeoffs Podcast can be found at the following links: Apple | Google

Energy Tradeoffs Podcast #20 – Carey King

Today’s EnergyTradeoffs.com podcast episode features David Spence interviewing Carey King, his colleague at the University of Texas, about Carey’s research on “Economic Growth, Inequality & Decarbonization.”

Carey and David discuss several ways that transitioning to cleaner energy sources will change the economy. In particular, Carey notes that “lower carbon infrastructure tends to be higher capital cost relative to operating cost, implying less labor and lower employment” and explains how this could affect economic growth and inequality.

NB: This increased emphasis on capital investment means that the cost of cleaner energy will increasingly depend on reducing the cost of capital, a challenging task in a time of legal uncertainty. I have recently published two pieces on this topic: “Energy Market and Policy Revolutions: Regulatory Process and the Cost of Capital” and “Pipelines & Power-Lines: Building the Energy Transport Future.”

The discussion builds on two of Carey’s recent articles: “Modeling the point of use EROI and its implications for economic growth in China” & “Delusions of grandeur in building a low-carbon future.”

The Energy Tradeoffs Podcast can be found at the following links: 
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Energy Tradeoffs Podcast #13 – Eisen & Welton

In this week’s EnergyTradeoffs.com podcast interview, the University of Richmond’s Joel Eisen and the University of South Carolina’s Shelley Welton talk with David Spence about their research on “Net Metering & the Value of Distributed Solar Generation.”

David, Joel, and Shelley discuss hot-button questions about net-metering, which effectively pays homeowners with rooftop solar the retail price for the electricity that they provide to the grid. This price is higher than that received by other power generators. Net metering offers environmental benefits but imposes costs on other electricity users. David kicks off the discussion by addressing the common question whether net-metering is regressive and segues into a discussion of the broad array of studies on the effects of net metering.

The interview builds on Joel & Shelley’s just-published article in the Harvard Environmental Law Review, which is titled “Clean Energy Justice: Charting an Emerging Agenda.”

The Energy Tradeoffs Podcast can be found at the following links: 
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Energy Tradeoffs Podcast #12 – Amy Stein

Another week, another EnergyTradeoffs.com podcast episode. This week, the University of Florida’s Amy Stein talks with David Spence about her research on “Maintaining Reliability in a Distributed Energy World.”

Amy and David explore the challenges of maintaining power grid reliability when an increasing amount of electricity is produced by distributed sources such as rooftop solar. Amy explains how energy storage and demand response can provide this reliability. And she describes how these “reliability resources” may be a poor fit with historical methods of utility investment and regulation.

The interview builds on Amy’s 2016 article on “Distributed Reliability,” which was published in the University of Colorado Law Review.

The Energy Tradeoffs Podcast can be found at the following links: 
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Energy Tradeoffs Podcast #11 – Frank Wolak

This Thursday’s EnergyTradeoffs.com podcast episode features Stanford’s Frank Wolak talking with David Spence about his research on “Market Solutions to Reliability Challenges in Electricity Markets.”

Frank explains different approaches to ensuring the reliability of the electric grid, including Texas’s approach of allowing very high prices during periods of peak demand to encourage sufficient power supply—an approach that has been repeatedly tested during hot weather in the past month. He also explains the other, more common, approach of a regulatory mandate to purchase reserves in advance, and the downsides of that conventional approach.

Frank also explains why Southern California’s solar creates ideal conditions to motivate short-term battery storage of electricity: a quick spike of lots of power for a short slice of the day that then ramps down quickly just as power demand peaks.

The Energy Tradeoffs Podcast can be found at the following links: 
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Comparing Candidates’ Climate Plans

Tonight, CNN will air seven hours of back-to-back townhalls from the ten top Democratic candidates on their climate plans. So far coverage of these plans has focused on initiatives that would require Congress to pass new laws, such as various versions of the “The Green New Deal,” proposals to take over or clean up the power sector, and plans to spend trillions fighting climate change. None of these proposals would pass the Senate in anything like their proposed form.

If you want to understand what the candidates would actually do on climate, you should focus on three things:

  • How they would change federal permitting of oil and gas extraction and transport;
  • How much they hope to spend on climate change; and
  • How they approach tradeoffs between climate regulation and the economy.

Here’s a guide to what the candidates have said on these issues and the key questions that should be asked of their plans in coming months.

  • How Candidates Would Change Federal Oil & Gas Permitting

By far the most important question for the candidates on climate change is how they would use existing presidential authority—particularly through executive orders. The candidates can be held to these promises because they don’t require any action from Congress.

By contrast, all the candidates’ proposals for legislation would need to be passed by the Senate, which currently has a Republican majority. Even if the Democrats somehow gained a Senate majority next year, they would still need to win over moderate Democrats such as Joe Manchin who famously won his seat by shooting President Obama’s cap-and-trade bill to advertise his opposition to climate regulation. There are no such obstacles to executive authority so the most important question for candidates is how they’d use it.

The most important executive action proposed to date is Vice President Biden’s plan to ban “new oil and gas permitting on public land and water” by executive order on his first day in office. This would have three dramatic effects:

  1. It would ban new oil and gas leases across all federal land, including centers of the energy industry such as the Gulf of Mexico.
  2. It would ban new drilling on existing leases, because every new oil and gas well needs a permit.
  3. It would ban new oil and gas pipelines from Canada and to Mexico, because these require a federal permit. It would ban new liquefied natural gas exports to Europe and Asia. And it could even ban new domestic pipelines, because even intra-state pipelines typically cross federal streams and rivers, which a fully comprehensive permitting ban would forbid.

So Biden’s ban would entirely shut down the oil and gas industry on public lands. And it would choke off the private energy industry by cutting off the new pipelines and gas export facilities that it needs to get its products to market.

The argument for this ban is that the world needs to leave oil and gas in the ground to meet its goals of limiting climate change to 2 degrees Celsius. No major oil producer has ever considered shutting in an economic resource of this size—the United States is the world’s largest producer of oil and gas and is in the middle of history’s biggest oil boom—so this would be a truly dramatic commitment to climate action.

The argument against Biden’s ban is that there are far less economically damaging ways to cut U.S. carbon emissions. As I explain in this new op-ed, this ban would cause serious economic pain to Americans. And a ban on new fossil fuel transport would cut off U.S. gas more than oil—oil can easily be shipped by rail, truck, barge, or tanker but gas can only be shipped on pipelines or as liquefied natural gas. And U.S. gas exports are bringing huge environmental benefits to the world by replacing dirtier fuel sources in places with air quality problems, so Biden’s ban could damage the global environment.

Here’s a chart of the Democratic candidates climate policies, ordered by their current standing in national polls. (This is drawn from the candidates websites and their responses to questions here and here.) As you can see, many of the top candidates also support a ban on federal oil and gas leasing, but many have not said whether, like Biden, they would ban all new permitting—including new wells on old leases and new international and domestic pipelines. This is the single most important issue for the candidates to discuss in tonight’s town halls and it should be the focus of savvy reporters’ questions moving forward.

I am keeping this chart updated as candidates and climate plans evolve. (Last Update 3/1/2020)

  • How Much Candidates Would Spend on Climate Change

Although new spending requires congressional action, Congress must regularly reach agreement with the President to fund the federal government, which gives a new President some leverage to spend money on his or her priorities. The Democratic candidates have widely varying goals on climate spending, from Mayor Buttigieg’s plan to spend $25 Billion per year on green research & development to Senator Sanders plan to spend $16.3 Trillion to transform the energy economy.

To understand those massive numbers, let’s put them in context. There are 128 million American households. So Mayor Buttigieg is planning to spend $219 per household per year and Senator Sanders is planning to spend $127,344 per household. Vice President Biden’s plan to spend $1.7 trillion would be $13,281 per household.

Another way to put those numbers in context would be to look at the magnitude of the climate harm they are trying to avoid. There are many estimates of the harm from climate change, but last year’s Nobel Prize winner said the present value of that harm is about $25 trillion and that optimal climate regulation could lower that cost by about $10 trillion. The U.S. estimates that it will experience 7-23% of the cost of climate change, so very, very roughly speaking, optimal climate regulation could save the U.S. a couple trillion dollars.

It would be helpful to hear more about how the candidates will prioritize their climate and environmental spending. If Congress will only give them so much money, would they prioritize spending it on research & development, on climate change projects abroad, or would they consider other environmental issues such as improving air quality and removing lead from the water and soil? This should be a secondary focus of reporters’ questions.

  • How Candidates Would Balance Climate Regulation and the Economy

So far, the candidates have said little about how they would balance their climate and economic goals, in part because media coverage has focused on the Green New Deal, which asserts that there is no tradeoff between environmental and economic goals. But a new president would make countless decisions on how much to cut greenhouse gas emissions from cars, from power plants, and from industrial sources using existing regulatory authority. So we need to know what the candidates will do when their economic and environmental goals come into conflict.

As I explain in this podcast with UCLA’s Ann Carlson, the fundamental innovation of the Green New Deal is that it promises to achieve environmental and economic goals simultaneously. It will remove 100% of greenhouse gas emissions from the power sector in ten years. And it will “guarantee[] a job with a family-sustaining wage, adequate family and medical leave, paid vacations, and retirement security to all people of the United States.” What it doesn’t say is what it will do when those goals come into conflict.

There are many possible ways to manage tradeoffs between the environment and the economy. Historically, environmental laws have often mandated the cleanest technology that is “available” or “demonstrated.” And government regulators have interpreted those standards as requiring that industry cut emissions as much as it can without risking plant closures or job losses.

Another way to manage environmental and economic tradeoffs is with carbon pricing: a carbon tax or a cap-and-trade system. These systems make polluters pay for their greenhouse gas emissions. But if a product is so valuable to society that consumers are willing to pay the cost of manufacturing it plus its environmental cost, then they can still purchase it.

Almost all the candidates have said they support the Green New Deal, but they should be asked how they will balance their climate and economic goals. Will they use traditional standards that asks the fossil fuel industry to clean up but doesn’t shut it down? Or do they think that industries should only survive if they can pay the price of their carbon emissions? Or, like Vice President Biden, do they think that some industries should be shut down regardless of the cost? These questions arise every day for climate regulators so reporters should ask the candidates how they will manage these energy tradeoffs.

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