Search
December 26, 2025

Granholm Calls on US to Lead $23T Clean Tech Market

Newly confirmed Energy Secretary Jennifer Granholm came to the Policy Forum of the American Council on Renewable Energy on Wednesday with the clear intent of firing up the troops — with announcements, insights on the challenges ahead and a mantra focused on action.

“No more waiting,” Granholm told the forum’s virtual audience. “Deploy, deploy, deploy.”

Her main message, echoing President Biden, was that beyond its very real existential threat, the climate crisis is a job and innovation generator, and the U.S. must be on the front lines, technologically and economically.

“The products that reduce carbon emissions are going to create a $23 trillion global market over the next decade,” Granholm said. “Where are those investments going to be [made]? Are they going to be in China? Are they going to be in our economic competitors? You better believe that they are strategizing now to corner this market. So, the question for us is: are we going to get in a battle, or are we going to bring a knife to a gunfight?”

Clean Tech Market
Energy Secretary Jennifer Granholm | CERAWeek by IHS Markit

The Department of Energy is first deploying research and development dollars, with $300 million in funding opportunities announced in the past month, to small businesses and clean tech entrepreneurs, workforce development and “one-of-a-kind ventures,” Granholm said. One example, DOE’s Frontier Observatory for Research on Geothermal Energy initiative, will fund “cutting-edge geothermal projects with the potential to power millions of American homes,” she said.

On the research front, Granholm pointed to DOE’s 17 “super powerful” national laboratories and their 70,000 scientists, engineers, researchers and analysts as key components for developing and testing the technologies needed to accelerate the U.S. energy transition.

“I am really thrilled to announce that our Pacific Northwest National Laboratory in Washington is kicking off the design and construction phase of the Grid Storage Launchpad,” she said. “It’s a $75 million research facility where we will be figuring out how to speed up the innovation and deployment of grid-scale technologies for energy storage, so we can get all of this new renewable power onto the system and make our national power grid more reliable, more resilient [and] more secure.”

Ramping up and reviving existing programs ― for example, recruiting clean tech investor Jigar Shah to head DOE’s $40 billion energy loan program ― is only a first step, Granholm said. “We look to work closely with the White House on its upcoming jobs and infrastructure package, which we hope is going to have a huge emphasis on opportunities in the renewable energy sector,” she said.

A new Office of Energy Jobs “is going to help us seize these jobs opportunities in all corners of the country, especially in places that have felt unseen, that have really been hurting, and get them first the benefits of these opportunities,” Granholm said.

Lowest-hanging Fruit

On the inevitable subject of Texas’ recent power outages, Granholm looked beyond the immediate need for grid hardening. Speaking with ACORE CEO Greg Wetstone, she said, “We have to figure out what’s the lowest-hanging fruit. Where are the clog [points] right now and the interconnects, and while we do the quick, low-hanging fruit, we need to plan for the future because we are going to see, especially with electrification of vehicles, a massive amount of need for new capacity on the grid.”

Biden’s Justice40 initiative to ensure that 40% of federal government investments benefit disadvantaged communities will take a “place-based” approach to address the different needs of environmental justice and fossil fuel communities, she said. What might work for coal communities in West Virginia and Appalachia “might not be good for Flint,” Granholm said. “You have to listen very carefully and have bottom-up strategies for these communities.”

Granholm’s closing remarks were similarly strategic. She called on clean energy groups like ACORE to double down on their lobbying and support activities for energy allies in Congress “to make it safe for them to be able to vote to make the investments that are necessary.”

Is the ERCOT ‘Casino’ Going Bust?

Back before COVID-19 and the Great Texas Blackout, Clifton Karnei, general manager of the Brazos Electric Power Cooperative, participated in a 2019 panel discussion on ERCOT’s deregulated market during the Gulf Coast Power Association’s annual Fall Conference.

Asked about the energy-only structure, Karnei, with two decades of experience as a board member for the grid operator, called it a “casino market.” He likened the market to playing a slot machine, saying some years are great for energy providers, others aren’t. (See “Reliability Challenges Ahead,” GCPA Speakers Weigh Texas Market’s Pros, Cons.)

ERCOT Governance
Brazos Electric GM Clifton Karnei during the 2019 GCPA Fall Conference | © RTO Insider

Karnei said the market’s long-term sustainability remained in question, saying, “I think the jury is still out on that.”

The verdict is now in for some market participants.

Brazos filed for bankruptcy on March 1, citing a $1.8 billion debt due to ERCOT as part of the market’s $47 billion in transactions, fueled by $9,000/MWh energy prices incurred during the Feb. 14-19 winter storm. (See ERCOT’s Brazos Electric Declares Bankruptcy.)

Rayburn Country Electric Cooperative is in equally perilous territory, as it has come up short on Tuesday for nearly $340 million in energy costs. The cooperative’s normal weekly bill during February is about $800,000, it said in a filing with the Texas Public Utility Commission.

The city of Denton has filed a lawsuit against ERCOT on behalf of Denton Municipal Electric (DME) when the utility received an energy bill for $207 million following the February winter storm. The city, which has an annual budget of $231.4 million for DME, issued $100 million in new debt to help the utility with its immediate needs.

The city has also secured a temporary restraining order through April 30 against uplift charges. ERCOT had no response to the order.

On Tuesday, Just Energy became the first electric retailer to declare bankruptcy, filing for protection in the U.S. and Canada over more than $250 million owed to the ERCOT market (21-30823).

Three other market participants — retailers Griddy Energy and Entrust Energy and load-serving entity Power of Texas Holdings — have been bounced from the market for failure to make payments or designate a replacement for their services. Entrust was nearly $260 million short through Monday to ERCOT, and Griddy was almost $25 million short.

ERCOT Governance
ERCOT’s list of market participants that have short paid the market through March 8 | ERCOT

Some 20 other retailers are thought to be in danger of going under because of the high prices.

ERCOT itself was short $1.7 billion when Kenan Ögelman, the grid operator’s vice president of commercial operations, testified before the state Senate on March 4. (See “ERCOT Market Under ‘Financial Duress,’” Texas PUC Won’t Reprice $16B Error.)

Staff have been using $800 million of undistributed congestion revenue right auction funds and netted some settlement invoices to help protect market liquidity.

The PUC’s docket on issues related to the storm’s “state of disaster” (51812) is filled with market participants seeking relief from invoices and asking the commission to reprice $16 billion of transactions the Independent Market Monitor identified as being in error. (See “Monitor: $16B ERCOT Overcharge,” ERCOT Board Cuts Ties with Magness.)

According to Reuters, several private equity firms have contacted ERCOT with offers of financial support to cover near-term cash needs.

ERCOT declined to comment on the report.

The grid operator’s Board of Directors has scheduled a conference call Friday afternoon to discuss “market financial matters” and other “urgent” business.

Legislature to Take up Repricing $16B

Add repricing the $16 billion worth of market transactions to the list of bills being filed before the 87th State Legislature’s Friday deadline.

Texas Gov. Greg Abbott has asked lawmakers to consider the repricing as an emergency item. PUC Chair Arthur D’Andrea, who has declined to reprice the $16 billion in transactions, is among those who will testify before the legislature Thursday.

Texas House Speaker Dade Phelan has released a list of seven “priority bills” responding to last month’s power outages. They would:

  • HB 10: restructure the ERCOT board, replacing the unaffiliated members with members appointed by the governor, lieutenant governor and speaker of the House. It would also require all board members to reside in Texas and create an additional seat to represent consumer interests.
  • HB 11: require the state’s electric transmission and generation facilities to be weatherized against extreme weather. Utilities would be required to reconnect service as soon as possible and prevent slower reconnections for low-income areas, rural Texas and small communities.
  • HB 12: create a statewide disaster alert system administered by the Texas Division of Emergency Management (TDEM) to alert Texans across the state about impending disasters and extreme weather events. The alerts would also provide targeted information on extended power outages to the state’s regions most affected.
  • HB 13: establish a council composed of ERCOT, PUC, Railroad Commission and TDEM leaders to coordinate during a disaster.
  • HB 14: require the Railroad Commission to adopt rules requiring gas pipeline operators to implement measures that ensure service quality and reliability during an extreme weather emergency, covering both winter and heat wave conditions. (This bill has not been filed as of press time.)
  • HB 16: ban variable rate products for residential customers to provide consumer protection to residential customers while still allowing the competitive market to flourish.
  • HB 17: prevent any political subdivision or planning authority from adopting or enforcing an ordinance, regulation, code or policy that would prohibit the connection of residential or commercial buildings to specific infrastructure based on the type or source of energy that will be delivered to the end user.

Spring/Summer SARA Delayed 2 Weeks

ERCOT has pushed back by two weeks the release date for its final spring and preliminary summer resource adequacy report, from March 11 to March 25.

ERCOT Governance
Frozen instrumentation on a power plant | Entergy

The grid operator said the release date has been changed to “accommodate new system stress scenarios and related report design changes being implemented” and because of staff’s ongoing support for various winter storm response and preparedness investigations.

ERCOT’s seasonal assessment of resource adequacy (SARA) for the winter has been criticized for under-estimating the severity of winter weather. The winter SARA was based on normal weather conditions during peak periods, from 2004 through 2018, which didn’t account for what IHS Market called one of the most extreme winter events in the state in 70 years.

SERC Seeks to Streamline Audits Post-Pandemic

Constraints on in-person activities because of the COVID-19 pandemic could result in the streamlining of future audits, SERC Reliability said at the 2021 Spring Reliability and Security Seminar this week.

ERO Pandemic-related Measures Extended Again.)

SERC Audits
Ted Bell, SERC | SERC

While the suspension disrupted SERC’s procedures for investigating noncompliance by registered entities, members of the regional entity’s audit staff said the experience has been helpful too.

“The remote virtual audit process has given us challenges, but it’s also allowed us the opportunity to build processes that will allow us to be more efficient performing audits in the future,” said Ted Bell, a critical infrastructure protection compliance auditor at SERC. “We’ve been challenged to use our technology in new ways, to exercise greater communication and scheduling flexibility, and to find new and different ways of communicating.”

Relationships Key to Success

One of the biggest lessons of the pandemic was the importance of maintaining a productive relationship between the audit teams and registered entities. To lessen the burden on utilities trying to implement COVID-related distancing and sanitation requirements, SERC changed its 120-day audit notification to allow entities to complete the first level of its Evidence Request Tool within the first week of receiving the audit notification letter. This meant that the auditors were able to “perform sampling earlier in the process,” while the utility could start on the second level earlier.

SERC’s normal audit procedure also assumes examiners will be able to visit the registered entity in person to interview staff and inspect facilities. The pandemic meant auditors would have to find some other way of getting the required information.

SERC Audits
Barbara Marion, SERC | SERC

“Normally we look forward to the … on-site week. We know that we’re going to have one-on-one, face-to-face contact with individuals, and any pending requests or clarification that’s needed … we’ll get that information,” said Barbara Marion, SERC’s senior operations and planning compliance auditor. “Well, that was not an option at this time. Because of the nature of virtual auditing, collaborative efforts were necessary, [and] consistent communication was key.”

In some cases this meant expanding the areas where entities could self-certify, but in-person contact could not be replaced so easily in other regards. For example, Bell noted that in the case of “a previous risk … identified through a self-report of previous monitoring engagement,” the RE could not rely on the entity’s word that it had corrected the problem.

Video Visits Expected to Continue

For these cases the RE implemented technology tools such as video conferencing as much as possible. In extreme cases, this saw the team replicating the “the three rooms you might have in an on-site audit,” with separate chat rooms for subject matter experts, audit staff and entity representatives. This worked, but sometimes caused problems for staff who were unaccustomed to such arrangements.

“One of the things that we learned quickly is to make sure that you’re muted and unmuted on the appropriate calls,” Bell said. “So if we started hearing from the other room when we weren’t supposed to we would immediately mute [that line].”

SERC Audits
SERC headquarters in Charlotte, N.C. | SERC

Despite these growing pains, auditors said the experience has been positive overall: The unprecedented situation forced them to improve their relationships with registered entities and their familiarity with new technology. While the RE is looking forward to being able to resume on-site audits, Todd Curl, SERC’s senior manager of compliance monitoring, confirmed that utilities can expect audit teams in the future to more closely examine whether such visits are actually necessary.

“Please understand, if we don’t have a need to go on-site, we won’t,” Curl said. “A good rule of thumb is, the higher the risk, the better the probability that we’ll … need to come on-site at least for some aspect of the audit.”

Report: Half of Coal Fleet Could Safely Retire by 2025

More than half the U.S. coal fleet could be retired by 2025 to reduce emissions and generating costs, with no harm to reliability, according to a new report by the Rocky Mountain Institute.

Based on an analysis of NERC data, RMI says 27% of the coal fleet — mostly in the Northeast and Southeast where reserve margins are high — could be retired without replacement. Another 29% could be cost-effectively replaced with wind and solar.

Renewables, storage and demand-side management would be required to maintain reserve margin targets and replace the remaining coal plants in the U.S., it said.

“In considering economic retirement opportunities, utilities and regulators often raise concerns about reliability if coal capacity retires,” says the report, Cutting Carbon While Keeping the Lights On. “We find that these concerns are generally misplaced, and that the United States is on track to have 60 GW of excess generation capacity in 2025, above and beyond reserve margin targets.”

The report notes that most of the country has more dispatchable generation than necessary to meet reserve margin targets. PJM has more than 30 GW of excess generating capacity above its 15% reserve margin and its dispatchable thermal capacity exceeds the reserve margin without including wind or solar.

“No region in this category has experienced a major outage related to inadequate generation capacity in recent years,” it said. The report does not mention the 2014 polar vortex, when as much as 22% of PJM’s generating capacity was idled and the RTO came close to having to shed load.

It notes that ERCOT and CAMX (covering California) already rely on effective load carrying capacity-weighted wind and solar capacity to meet peak demand. SPP depends on wind to meet reserve margin targets.

RMI’s analysts based their economic comparison of coal and renewables on “direct, going-forward costs” of coal plants and did not consider the impact of any price or cap on carbon emissions or other environmental externalities. It noted, however, that a 2020 study by Energy and Environmental Economics found that a $10/ton price on carbon emissions — well below what most economists say is necessary — would cause the economic retirement of all PJM coal capacity by 2030.

RMI said its analysis targeted 2020-2025 “under an assumption that present-day reserve margin targets will continue to govern system planning and operations in the next few years.”

Coal Fleet Retire

Renewable transition category by NERC regions in 2020 and projections for 2025 | Rocky Mountain Institute

“We recognize the importance of reassessing reserve margin targets given the increasing severity of extreme weather that has contributed to the recent outages in California and Texas, but we do not undertake that analysis here,” it added.

NERC did not respond to a request for comment on the report.

In its 2020 Long-Term Reliability Assessment in December, however, NERC said that the growth of renewables and retirement of conventional generation over the next decade means “resource planners must consider greater uncertainty across the resource fleet as well as uncertainty in electricity demand that is increasingly being affected by demand-side resources. As a result, reserve margins and capacity-based estimates can give a false sense of comfort.” (See NERC: Grid Operations ‘Fundamentally Changing’)

Michelle Bloodworth, CEO of coal advocacy group America’s Power, said last month’s extreme cold showed the importance of maintaining “fuel-secure coal units necessary for supporting grid resilience in much of the country.”

“While Texas was experiencing rolling blackouts, we saw that coal was able to increase its output and provide close to half the electricity in all or parts of the 21 states that comprise the MISO and SPP regions,” she said. “This recent experience underscores the importance of maintaining fuel diversity and the need to maintain coal-fired generation, even while the nation’s electricity mix is changing.”

Bloodworth also cited the group’s recent article outlining challenges to decarbonizing by 2035.

Ben Fowke, CEO of Xcel Energy, also has expressed skepticism about an all-renewable generating fleet. In testimony before the Senate Committee on Environment and Public Works Wednesday, Fowke noted that his company expects renewables to make up two-thirds of its energy mix by 2030. “However, renewable energy can only take us so far,” he said. “At higher levels of intermittent renewables, the cost of the energy system begins to skyrocket, and its reliability degrades. That means that the whole industry — even Xcel Energy with our remarkable renewable resources — will need some form of new, carbon-free, 24/7 dispatchable generation to remove the last increment of emissions on our system and get to zero.”

‘All-source’ Procurement

RMI also issued a second report recommending states adopt “all-source” resource procurements and projecting a need for 700 GW of new generation investment over the next decade, including 420 GW in the territory of vertically integrated utilities.

All-source portfolios would include utility-scale and distributed energy resources. RMI said procurements should be aligned with states’ objectives, including resilience, decarbonization and economic development. It also urged a “least regrets” approach to capture the benefits of competition and declining costs of new technologies.

The report cited numerous case studies, including Xcel’s all-source solicitation in Colorado in 2017, saying it was proof “that a solution-agnostic needs description can elicit many bids and record low bid prices for renewable energy and hybrid resources.”

Vertically integrated utilities are expected to spend up to $750 billion through 2030 on new resources, RMI said. “With an improved approach to resource procurement, the industry has a once-in-a-generation opportunity to ensure that this money is spent in ways that leverage the market, support diverse stakeholder priorities and minimize risks going forward. The alternative — continuation of legacy processes and approaches to resource investment — risks squandering capital and locking in customer costs and carbon for decades to come.”

Conn. Officials Push Back on ‘Gas Tax’ Label of TCI-P

Connecticut officials and gasoline trade associations squared off Monday over the Transportation and Climate Initiative Program (TCI-P) during a 12-hour virtual public hearing held by the General Assembly’s Environment Committee.

The hearing sought input on three bills, including one regarding climate change adaptation and another on environmental air quality. But S.B. 884, which would direct the Department of Energy and Environmental Protection (DEEP) to create rules implementing TCI-P, was the main event.

Passage of the legislation is a priority for Connecticut Gov. Ned Lamont. He joined Massachusetts, Rhode Island and D.C. in committing to the cap-and-trade program, aiming to cut greenhouse gas emissions from vehicles by 26% from 2022 to 2032 and invest $300 million per year in cleaner transportation choices and public health improvements. (See NE States, DC Sign MOU to Cut Transportation Pollution.)

DEEP Commissioner Katie Dykes said opponents of the bill want to “mischaracterize” it as a gasoline tax.

“You may hear from folks who will tell you that this bill is essentially a 17-cent gas tax, and that characterization is completely false and is based on misinformation,” Dykes said. “This is not a gas tax. It is an environmental program that will cap greenhouse gas emissions and require the [fossil fuel] industry to pay for the damage it is causing to public health and the climate.”

Dykes said there have been “several years” of modeling TCI-P to assess its impact on reducing emissions and potentially increasing retail gas prices in participating jurisdictions by 5 cents/gallon beginning in 2023, assuming fuel suppliers choose to pass down 100% of allowance costs to consumers. Multiple consumer protection safeguards, including a cost-containment reserve, are designed to limit the program’s impact on prices at the pump and would kick in at 9 cents/gallon.

Dykes said the reserve “acts like a guardrail” to prevent prices from exceeding 9 cents/gallon increase and “operates like the airbags in your car.”

“If we hit the [cost-containment reserve], we don’t just keep driving,” Dykes said. “Instead, we go into a review to adjust the parameters of the program, so that we can ensure that the consumer impacts are not staying at that CCR level.”

According to Dykes, the cost-containment reserve for TCI-P is based on a similar mechanism from the Regional Greenhouse Gas Initiative (RGGI). The “17-cent talking point” is based on studies that “exaggerate assumptions” about electric vehicle battery costs and fuel economy and “assume no cost-containment reserve.”

“So essentially, it’s like modeling that this program is going to be wildly more costly than what our assumptions have determined, and that there are no consumer protection mechanisms to prevent the program from exceeding those 9-cent costs,” Dykes said.

Deputy Transportation Commissioner Garrett Eucalitto said he wanted to clear up the misconception that TCI-P is “designed to price people out of driving or force them into electric vehicles. … That could not be further from the truth.”

Rep. Stephen Harding (R) asked Dykes if there is another way to reduce emissions without increasing gas prices, which he called “regressive.”

Dykes said that because TCI-P is a market-based program, fuel suppliers participating in a regional market will have competitive options to reduce compliance costs, such as blending in biodiesel that will lessen the number of allowances “for each gallon that they’re selling into the state.”

Gasoline Associations Respond

Michael Fox, executive director of the ‎Gasoline and Automotive Service Dealers of America, said his group represents “mom and pop gasoline retailers” who sell more than half of all the fuel in Connecticut and collectively oppose the bill.

“TCI is a gas tax called by a different name,” Fox said. “The cost of the carbon credits will be passed on as higher fuel costs to Connecticut consumers. TCI perfectly fits the definition of what a tax is or is not.”

Sen. Christine Cohen (D), co-chair of the committee, asked Fox how wholesalers would pass down gas price increases to consumers. Fox answered by comparing the program to a gross receipts tax, levied on goods at the wholesale level — instead of at retail, like a sales tax — which is then passed on to consumers through higher prices.

“So, if you force these distributors to purchase these carbon tax credits, they’re just going to pass those additional costs on to us,” Fox said. “I think this is something no one has addressed and needs to think about.”

Fox said carbon credits sold at auction “are not designed for the lowest price.”

“They are designed to bring in the highest price,” Fox said. “That would allow the big [fuel] distributors to keep bidding up the price of these carbon credits, and then the smaller distributors wouldn’t be able to afford them, thereby putting them out of business and eliminating competition. That is a huge problem under TCI.”

Christian Herb, president of the Connecticut Energy Marketers Association, said his group’s members “own, operate and distribute fuel” to more than 1,000 gas stations in the state.

“The families I represent are in their third and fourth generation where they have installed [and] invested hundreds of millions of dollars in their properties,” Herb said . “Let the EV industry pay for their infrastructure just like my members have.”

Herb said TCI-P “is a part of a bigger effort to electrify the entire economy in Connecticut.”

“You’re pursuing policies that further rely on monopolies like Eversource [Energy] and Avangrid, who deliver the highest rates in America, and they’ve just asked for another increase,” Herb said.

He added that TCI-P trades “tailpipe emissions for electric generation emissions.”

“The vast majority of electricity in Connecticut is generated with natural gas, which is, according to EPA, 87 times more potent at trapping greenhouse gases than carbon,” Herb said. “So, methane from natural gas is doing that damage more than what are we achieving by adopting this. The bill doesn’t move the environmental needle. DEEP testified earlier today that sea-level rise was a huge concern. This bill doesn’t fix that; it doesn’t change it, especially when most states aren’t even participating.”

Report: Decarbonizing Steel Production is Global Job

Five countries that control about two-thirds of global iron and steel production must work together to reduce carbon emissions in the sector, according to researchers from Columbia University’s Center on Global Energy Policy (CGEP).

“China alone produced over 50% of the world’s steel last year and for the first time reached one gigaton (one million tons),” CGEP research associate Zhiyuan Fan said at a webinar Tuesday. Fan co-authored a new report on technology options, economic assessment and policy to achieve low-carbon production of iron and steel.

Global steel production totaled 1.9 million tons in 2020, with the top five producers being China, India, Japan, Russia and the U.S. The sector is responsible for 6% of global emissions.

iron and steel

CGEP Panel: Clockwise from top left: Roxanne Brown, United Steelworkers; Paula Gant, Gas Technology Institute; Julio Friedmann, CGEP; John Larsen, Rhodium Group; Zhiyuan Fan, CGEP; and Tom Dower, LanzaTech. | Center on Global Energy Policy

Fan’s co-author, CGEP senior research scholar Dr. Julio Friedmann, said there are relatively few technical options to manage the challenges of chemical reduction for iron ore refining and high-temperature heat sources required to power electric arc furnace (EAF) and blast furnace-basic oxygen furnace (BF-BOF) production.

“And all the options increase costs, which is why it might work best from a policy perspective to fence off two-thirds of global production,” Friedmann said.

Policy challenges include the globally traded nature of iron and steel, security and economic concerns at the national level, and the small margins of most producers and labor politics, the report said. Moreover, steel mills have long capital lives, limiting the rate and range of options to substitute for existing facilities and thereby reduce emissions.

The report suggested that policymakers identify opportunities for international cooperation on development of low-emission production standards for steel akin to the Montreal Protocol.

Unsticking Innovation

Innovation is the path forward for job creation and retention in all industrial sectors, “and sometimes these innovations get stuck on the policy pieces,” said Roxanne Brown, international vice president at large for the United Steelworkers. The union represents workers in many sectors and has been engaged for more than 15 years in efforts to mitigate carbon emissions from industrial processes, she said.

“We kept getting stuck at [the U.S. Environmental Protection Agency] around the renewable fuel standard,” she added, saying that it’s critical to work together to “unstick these innovations.”

Dr. Paula Gant, senior vice president for strategy and innovation at the Gas Technology Institute, said the institute is interested in the role that hydrogen is going to play in industrial decarbonization, but echoed Brown’s call for effective policy.

“It’s clear that we have dual imperatives of deep decarbonization across our economies, while also ensuring we have economic progress that is more broadly distributed,” Gant said. “We can’t do one or the other of those things; we have to do them both. … We have to change the paradigm that pits a living wage against economic competitiveness.”

According to the report, BF-BOF dominates production (71%) and is particularly stubborn to any decarbonization technology. DRI-EAF production is 5% of production and growing, but it appears to have better decarbonization potential to move toward net zero. Scrap steel in electric arc furnace is 24% of global production, consumes the least energy and is simplest to decarbonize through electrification, but is limited in market share, the report said. In addition, blue hydrogen, carbon neutral biomass and carbon capture and sequestration seem to have the lowest cost and highest technical maturity.

Tom Dower, vice president for public policy at carbon-recycling technology firm LanzaTech, said that addressing climate change requires “every possible solution.”

“We need to spur a fundamental change in how we do and make virtually everything that we have come to rely upon for modern society,” he said.

The report suggested that new policies should support the deliberate early retirement and replacement of current steel-producing facilities with low-emission options. Additional policy design is needed to help shift to scrap steel recycling using zero-carbon electric power, the report said. Other policy options that the report said could speed decarbonization in the sector include investment in low-carbon infrastructure and green procurements.

Mass. Competition Fast-tracks Net-zero Building Innovation

A recent Massachusetts Clean Energy Center (MassCEC) competition to improve the energy efficiency of the state’s iconic triple-decker homes has sparked a new project to help make net-zero retrofits easier.

Gunnison, the recipient of the people’s choice prize in the Triple Decker Energy Efficiency Challenge, is developing a website that will identify options for renovating homes or buildings, along with upfront costs, long-term savings and energy performance.

“The problem with these renovations is that humans aren’t good at looking at hundreds of thousands of pieces of data and finding the best way to do this right,” founder Grant Gunnison said. “And so, the light bulb went off, and we said what we really need to do is make a catalog of all the different strategies and products so that you can search through a space to find the best and most cost-effective way to renovate a house.”

The contest asked participants to submit retrofit plans that would eliminate the use of on-site fossil fuels and reduce energy consumption. Designers and developers could plan a renovation for a typical triple-decker structure or add a unit as part of the design to offset costs for homeowners, who could rent the unit out.

MassCEC received 14 entries and awarded four winning prizes of $25,000, three runner-up prizes for $15,000, a people’s choice award of $15,000 and two honorable mentions.

“This challenge is a fun learning opportunity,” Gunnison said, and it gave him a basic knowledge of heat pumps and wall assemblies in unique buildings for the automated home renovation website.

As a researcher at MIT’s Space Telecommunications, Astronomy and Radiation Laboratory, Gunnison took a data-driven approach to the design that achieved net-zero emissions, but there is an “extremely high barrier to this kind of information,” he said.

To retrofit a house, most people have to hire an architect or a modeler from the engineering industry to understand what needs to be done and how, Gunnison said, and “they’re not cheap.”

The goal of Gunnison’s automated system for home renovations is to reduce the variance in the number of ways someone can retrofit a home to the most affordable options.

“What we were able to do is identify the most affordable way to actually hit net zero, and we want to democratize that,” he said.

There are 113 million buildings in the U.S., 70 million of which burn natural gas or other fossil fuels for heating and cooking. To keep the Earth’s warming below 1.5 degrees Celsius, building emissions need to be reduced by 45 to 50% by 2030 on the way to 100% by 2050, according to a report from the Intergovernmental Panel on Climate Change. That translates to about five million buildings per year in the U.S.

“We just don’t have enough engineers, architects and energy modelers to figure out how to retrofit every building,” Gunnison said. “That necessitates using computers to figure out how to get this done.”

His company is organizing a pilot with building owners and portfolio owners of affordable housing in Boston to gather more information for the automated system and scale it out to other building types — essentially recreating the MassCEC challenge with each building to reach net-zero emissions.

“We have to start to get pretty clever about how to figure that stuff out without going to the building because as soon as you step foot in the building, you’re spending too much time,” Gunnison said.

Improving Insulation

Triple-deckers, or three-story multifamily houses, were designed as housing for the immigrants who flooded into Massachusetts in the early 1900s. Revered for their classic look with numerous windows and balconies on each level, triple-deckers also have oil heating systems and little insulation.

The contest submission by OPAL Architecture and TIMBER HP, which won honorable mention for lowest embodied carbon, achieved a net-zero energy performance with a negative carbon footprint by focusing on insulation.

Buildings that meet the Passive House standard require three times the amount of insulation, but materials like foam are nonrecyclable and absorb moisture, creating mold and other toxic problems for homeowners.

Massachusetts Net-zero Building

Matt O’Malia (left) and Joshua Henry, co-founders of Timber HP, inside the old paper mill they are renovating in Madison, Maine, to manufacture wood fiber insulation for energy efficient homes. | Matt O’Malia

Insulation made from leftover wood residuals is a nontoxic material that does not hold moisture and would otherwise go to waste in landfills, Matt O’Malia, co-founder and partner of TIMBER HP and OPAL, said.

And because wood fiber sequesters carbon, “we are coming to the job site carbon-negative,” O’Malia said.

It also offers cost savings.

For structures like academic buildings, retrofitting or building walls and windows for better insulation with wood fiber costs the same as standard construction, he said. But it saves the institution 80% in operational costs.

TIMBER HP acquired an old paper mill in Madison, Maine, near massive forest reserves, to manufacture the product. By establishing its manufacturing site where paper mills went out of business, TIMBER HP is creating jobs where they were lost in a rural community, O’Malia said. The lost paper mills contributed $1.6 million annually to the state economy.

The new facility is set to start production in 2022. O’Malia predicted it will address 8% of the insulation market in New England at full capacity, meaning there is potential for additional plants across the country.

His team also developed a way to retrofit insulation from the outside of the home, so owners or renters do not need to leave while the renovation is happening.

“There are so many houses that have to be renovated. … You can’t ask all of these people to move out during this,” O’Malia said.

Later this year, MassCEC expects to help fund demonstration projects using the concepts from the triple-decker design competition.

Amazon Backs Washington’s Low-carbon Fuel Bill

Seattle-based Amazon — one of the nation’s largest employers with a huge fleet of trucks and planes — threw its support this week behind a Washington bill to trim carbon emissions from motor vehicle fuels sold in the state.

If passed, House Bill 1091 would mandate that carbon emissions from gasoline and diesel fuel sold in Washington be cut by 10% below 2017 levels by 2028 and by 20% by 2035. (See Wash. House Tackles Bill to Cut Vehicle Emissions.)

The House passed the bill 52-42 on Feb. 27 with five Democrats joining 41 Republicans in opposing it. The bill is now in the Senate’s Environment, Energy & Technology Committee.

In a Monday email to Gov. Jay Inslee, Kara Hurst, Amazon’s vice president for worldwide sustainability, wrote that the company in 2019 adopted a goal of producing a net-zero carbon emissions by 2040 — 10 years ahead of the deadline set by the Paris climate accords.

carbon emissions
With one of the largest delivery fleets in the U.S., Seattle-based Amazon is supporting a Washington bill aimed at reducing the carbon content of gasoline sold in the state. | Amazon

“Amazon is already making significant changes to decarbonize our own operations and specifically our transportation fleet. We established a ‘Shipment Zero’ goal to make all Amazon shipments net-zero carbon, with 50% of shipments net-zero carbon by 2030. In support of this goal, in 2019, Amazon ordered 100,000 new electric delivery vehicles from Rivian, a U.S. electric vehicle manufacturer, which we are already beginning to deploy,” Hurst wrote.

She added: “We believe the [low-carbon fuels standard] will accelerate the transition to sustainable fuels and vehicles and enable Washington state to serve as a national leader in transportation decarbonization. Climate change is real … and actions like these are needed from the public and private sectors.”

Amazon employs roughly 750,000 workers at several locations in the U.S. and around the world. The company made $386 billion in sales in 2020, according to its filings with the U.S. Securities and Exchange Commission.

Inslee requested that Rep. Joe Fitzgibbon (D), chairman of the House Environment and Energy Committee, introduce HB 1091.

The bill builds on a 2008 law that directed the state to reduce its overall CO2 emissions to 90.5 million metric tons, the level in 1990, by 2020. A state report shows Washington’s carbon emissions at 99.57 million metric tons in 2018 — the last year that figures are available. The same 2008 law sets carbon-reduction targets of 45% below 1990 levels by 2030, 70% by 2040 and 95% by 2050.

A month ago, Fitzgibbon noted that 42% of Washington’s carbon emissions comes from motor vehicles.

The Western States Petroleum Association opposes the legislation. However, the owner of one of Washington’s five refineries — BP America — has voiced neutrality on the bill while supporting the state’s goal of trimming emissions by 95% by 2050.

A major issue for those against the bill is how much decarbonized motor fuel will cost at the pump.

The Association of Washington Business — the state’s largest business organization — has argued that decarbonization will add 20 to 60 cents per gallon to gasoline prices. Meanwhile, the Washington Department of Ecology has said California’s fuel decarbonization efforts resulted in a 1% increase in gas prices, while Oregon’s efforts resulted in a 2% change.

Opponents testified last month that claims of improving air quality are exaggerated, saying it would cost jobs and send business out of the state. They also contended that proposed standards would hit poor people hard and cause the trucking industry to add surcharges to shipments. Some said low-carbon fuels should be included in the legislature’s upcoming package of bills and appropriations addressing transportation, rather than addressed separately.

Supporters argued that carbon pollution has harmful health effects and disproportionately affects low-income communities as well. They added that there is great potential in Washington to grow the low-carbon fuels industry and that a clean fuels program should try to include rebates to buyers of electric vehicles.

Divided Legislature Clouds Minn. ‘Healthy Farming’ Bill

Minnesota Rep. Todd Lippert (DFL) knows the state’s divided political environment could halt significant climate legislation, but he is pushing forward anyway because he says his Northfield community has seen the impact of climate change firsthand.

“Flooding is an intensifying concern,” says Lippert, who also serves the community as a minister. “Northfield is just one example. In just the last 10 years, the Cannon River has damaged the community with three 500-year floods.”

Lippert is chief author of the “100% Soil Healthy Farming” bill, designed to “protect soil and water, save farmers money and help us meet our climate goals as a state.”

The bill (HF 701), spearheaded by the Land Stewardship Project (LSP), seeks to have 50% of the state’s farmers implementing soil healthy practices by 2030 and 100% of farmers using such practices on some of their fields by 2035. It also sets a goal by 2040 for 100% of the state’s grazable and tillable acres utilizing such practices.

Luke Peterson, a Dawson, Minnesota, farmer and LSP member, endorsed the bill at a hearing of the House Agriculture Finance and Policy Committee last month.

“This legislation will help farmers diversify their crop rotations and cover crops, which will keep our soil protected in the winter,” Peterson said. “These practices create ecosystem services that promote habitat for wildlife and improve our water quality, while retaining nutrients, moisture and organic matter in our soil.”

Farmer John Snyder discussed healthy soil practices and passing his farm on to the next generation. | Land Stewardship Project

The bill easily moved out of the committee with an 11-1 bipartisan vote on Feb. 17. Though he supported the bill and said its intentions were commendable, Rep. Paul Anderson (R) said he believes individual farmers will move forward on their own without new policies or incentives.

“Your goals are laudable,” Anderson said. “But a lot of these things farmers are already doing. Establishing cover crops in this part of the country [northern Minnesota] can be quite challenging.”

More Republican opposition surfaced nine days later when the House Judiciary Finance and Civil Law Committee re-referred the bill to the agriculture committee on a 9-4 vote.

Rep. Peggy Scott (R) voiced the budget-conscious Republican consensus in not recommending the Lippert bill.

“I’ll be encouraging my members to vote no on this bill today,” she said during the hearing. “Farmers are already doing this sort of thing through precision agriculture.”

First-term Rep. Brian Pfarr (R), a community bank president, agreed.

“I’ve got a lot of farmers already doing this on their own,” Pfarr said, adding he doesn’t like government telling farmers what to do. Lippert reminded legislators that the program is voluntary, can save farmers production costs and has a limited price tag.

The bill seeks $2.75 million for each of the first two years, and it caps payments to individual farmers at $17,500 over the five-year trial period. The program would be administered by the Minnesota Board of Water and Soil Resources and the state’s soil and water conservation districts.

Rep. Brian Johnson (R) was more direct in his opposition, citing an unlikely scenario in Minnesota: “I don’t think those goals are sustainable unless we get rid of corn and beans.”

Lippert believes the bill has a solid chance of making it through the DFL-controlled Minnesota House with his party’s 70-64 edge over Republicans.

“We need solutions that increase our resilience in the face of our climate challenges,” Lippert said. “We also need solutions that can help us find the difference we can make in this shared struggle. I hear farmers talking with one another about the contribution they can make. It gives me hope.”

The same can’t be said in the Minnesota Senate, where Republicans hold a 36-31 edge, including two former DFLers now listed as independents and caucusing with the GOP. Lippert’s companion bill, carried by Sen. Kent Eken (DFL), remains stalled in the Senate Agriculture Rural Development Finance and Policy Committee. And with the week of March 8 the midpoint of the 2021 Minnesota legislative session, the clock is ticking.

Water Storage Bill Brings Farmers, Environmentalists Together

Water storage bills sponsored by a diverse set of organizations, including SF 81 and HF 518, appear to have more bipartisan support. And they have farm groups, wildlife conservationists and environmentalists working together.

Scott Sparlin is no farmer. But the veteran New Ulm, Minnesota, organizer understands the complex ties between agricultural forces and the environment.

For 33 years, Sparlin has been a vocal activist on issues regarding the Minnesota River and has seen water quality issues mount. But he also appreciates the economic significance and clout of rural Minnesota’s farming community, often cited as a culprit because of phosphorus and nitrogen runoff in the state’s waterways.

Tying those two critical state issues together brought Sparlin to the state Capitol in St. Paul three times this legislative session to testify for SF 81, which is designed to slow water flow through the Minnesota River Basin by encouraging partnerships with landowners along the 335-mile stretch of waterway.

“Over and over, from every part of the basin we heard water storage has to be addressed if we are going to be serious about protecting our infrastructure and improving our surface water,” Sparlin said during his testimony Feb. 22. “The good news is it can be achieved without adversely affecting agri-business or community development.”

Sparlin’s grasp of the sensitive ties between Minnesota River water quality issues and farming practices seems to be paying benefits. But it’s been a slow process for Sparlin, who has served three years as facilitator and coordinator of a loosely organized group, the Minnesota River Congress, which held 25 basin-wide meetings to gather input on such a bill.

“Diverse water storage practices, such as replacing historically drained lakes and wetlands and increasing soil health, will all help to achieve this goal,” Sparlin says. “The climatic trend and future prediction of increased rainfalls in short periods of time will only exacerbate the issue.”

The Minnesota River Basin consists of 13 watersheds and encompasses nearly 15,000 square miles, roughly 11 million acres, impacting 37 of the state’s 87 counties. Agricultural activities account for more than 92% of land use in the basin, according to the Minnesota River Basin Data Center.

The program advocates using cover crops to better hold water. DFL Gov. Tim Walz’s 2022-23 budget request calls for $1.5 million each year to implement such a water quality and storage program. Funding would be dedicated to the water and soil resources board and soil and water conservation districts.

Agriculture accounts for about 25% of Minnesota’s greenhouse emissions, according to the state Pollution Control Agency (PCA), which says 25 acres of cover crops remove as much atmospheric carbon as taking one car off the road.

After a January PCA report card gave the state’s agricultural sector a D+ grade in addressing current climate challenges, former state Sen. Ellen Anderson, now program director at the Minnesota Center for Environmental Advocacy, penned a blistering guest commentary in the Minneapolis Star Tribune.

In it, Anderson wrote: “Minnesota’s agricultural sector is a big contributor to greenhouse gas pollution, nearly on par with transportation and electricity. It is also the sector most at risk from the impacts of climate change, and an industry that could make progress quickly.”

Report: Offshore Wind Poised to Boom in North Carolina

A new report released by North Carolina Department of Commerce maps out how the state can tap into its offshore wind potential to become a manufacturing and workforce hub for development in the Southeast.

Authored by industry consultants BVG Associates, the report predicts that the U.S. will see 41 GW of OSW — with a $100 billion supply chain — by 2035, and that North Carolina’s strong manufacturing sector with its 470,000 workers could supply major components and materials to fuel that market growth. The state already has one of the largest manufacturing sectors on the East Coast, with $91 billion in real value added to the state’s GDP in 2019, representing 17.2%, according to the report.

Globally, the OSW market has grown on average 24% each year since 2013. “The larger this market becomes, the more the supply chain will be established on the East Coast,” the report says.

The report highlights a building momentum to “accelerate the offshore wind opportunity by driving North Carolina’s offshore wind targets and new wind farm developments to match the significant electricity consumption of the Southeast and Mid-Atlantic states [and] maximize economic, decarbonization and environmental benefit.”

Agreements with neighboring states could be leveraged to create a regional supply chain network, the report says, to promote the Southeast as a hub for OSW developers and suppliers. The groundwork for such multistate initiatives was laid in October 2020, when the governors of North Carolina, Maryland and Virginia signed a memorandum of understanding committing each state to develop at least 6.8 GW of OSW capacity. The MOU encourages the three states to align their individual regulatory requirements to support more production and optimize regional assets and resources.

“Offshore wind development, combined with our strong solar capacity, will bring more high paying, clean energy jobs to North Carolina while we continue to ramp up our fight against climate change,” Gov. Roy Cooper said in a statement about the MOU. “This bipartisan agreement with neighboring states allows us to leverage our combined economic power and ideas to achieve cost-effective success.”

North Carolina’s other climate policies also encourage growth in OSW, according to the BVG report. The state’s Clean Energy Plan aims to reduce greenhouse gas emissions in the state’s electric power sector 70% below 2005 levels by 2030 and reach net zero by 2050.

As the largest utility in the state, Duke Energy could be key to boosting OSW generation, the report said. Duke has pledged to reach net-zero emissions by 2050, but it currently has no OSW projects in development. The utility’s Integrated Resource Plan, submitted in September 2020, lays out six pathways to achieving that goal, although it is not clear that all pathways would succeed. Two of the pathways rely on significant offshore wind development, with no new natural gas generation.

The IRP is currently under review and is scheduled for a hearing with the North Carolina Utilities Commission on March 16. Duke participated in a commission technical conference focused on integrated resource planning on Tuesday, during which it made no mention of planning for future OSW development and downplayed the near-term need for energy storage and distributed energy resources.

The only OSW project moving forward in the state is Kitty Hawk Offshore, owned by Avangrid Renewables. Construction of the first phase could start in 2024 and will have the capacity to generate approximately 800 MW of electricity. The full project will have a generation capacity of 2,500 MW, or enough to power 700,000 homes. Over the next decade, it is projected to create almost $2 billion in total economic impact for Virginia and North Carolina, according to an economic impact report.