Compass

Why Is the State Department Pushing Coal on a Tiny Eastern European Country?

That’s the question we have been asking the U.S. Government over and over, after discovering their steadfast support for plans to build an extremely expensive, extremely dirty coal plant in Kosovo. We first sounded the alarm over this project months ago and despite essentially admitting that our concerns are valid, the State Department and the World Bank are recklessly pushing forward a plan to leave the tiny country saddled with a heavily polluting new coal plant along with unsustainable levels of debt at a time when the EU’s debt crisis threatens the global economy.

So how do we know the project is so bad? We commissioned expert analysis from a former chief Environmental Protection Agency (EPA) enforcement officer who found glaring flaws (check out our initial analysis here) in the project design.

First and foremost he found that the plant will likely cost 2-3 times what project proponents claim. These costs would be borne by a country struggling to rebuild after years of war and would take the form of foreign debt that will have to be repaid by raising rates on average citizens. This is eerily similar to what happened with the World Bank’s last coal loan to Eskom and has led the nations leading nightly news program to ask probing questions about a “European Eskom.”

Even worse, he found that Kosovo doesn’t even need the power– they simply don’t have enough base load demand to justify such a large power project. In fact the project would lead to a generating capacity that is three times higher than existing demand and four times higher when corrected for avoidable losses.

The Public's Verdict? Clean Cars Are More Popular than Oprah. Well almost...

After a week of public hearings in Detroit, Philadelphia and San Francisco, we can safely say that cleaner, more efficient cars and trucks are a popular commodity.

More than 500 people, including concerned citizens, public health officials, veterans, small business owners, environmentalists and consumer advocates, came out to testify in support of the Obama administration’s proposal to strengthen fuel efficiency and carbon pollution standards for cars and light trucks. 

Thanks to these standards from the U.S. EPA and National Highway Traffic and Safety Administration (NHTSA), the average new car you’ll see on the lot in 2025 will get 54.5 mpg and spew 35% less carbon pollution than the models in 2016.  That’s a big deal – and a big win for American families.

So just how broad is public support for these proposed standards?  Very!  Poll after poll has shown that Americans overwhelmingly support better fuel efficiency.  But this support is more than just a checked box on a survey – it’s real stories from real people.

Arkansas Gets a Gust of Wind Energy

Beyond Coal organizer Glen Hooks stands with a turbine signed by community members.

Not one month into the new year and we are already enjoying exciting energy developments out of North Carolina, Georgia, and now Arkansas.

Southwestern Electric Power Company (SWEPCO), a subsidiary of American Electric Power, announced today a power purchasing agreement of more than 400 megawatts of clean, renewable energy from wind farms in surrounding states. That amount of wind will "more than quadruple" SWEPCO's wind energy portfolio, boost the region's wind-energy sector, and make the air healthier for all living downstream.

This gust of wind-energy purchasing by the energy company was the result of a December settlement with the Sierra Club and Audubon. The settlement requires AEP to also retire Welsh 2, a dirty coal plant upwind of Arkansas in northeastern Texas. Together these two pieces will offset pollution from SWEPCO's new coal plant in Arkansas.

"Today, as a result of our recent legal settlement, hundreds of megawatts of clean wind energy will power homes and businesses in our region for the next 20 to 25 years," said Glen Hooks of the Sierra Club's Beyond Coal campaign. "Unlike dirty coal, which pollutes our air, water, and communities, wind power produces zero pollution. And, this wind investment will save customers money because wind's fuel costs are zero."

SWEPCO powers more than a half-million people in Arkansas, Louisiana, and Northeast Texas. Prior to the settlement, SWEPCO's wind capacity totaled 110 megawatts. The utility expects this roughly $8 billion investment in clean energy to lower overall costs to customers by an average of a 0.1 cent per kilowatt-hour over the next ten years.

This is just one more example of a sweeping clean energy trend across the country and reflects what the energy experts are saying: Coal's future is dimming and clean energy is taking its place. People want clean energy. They want healthy air. And over the past three years the clean-energy revolution has been a bright job-creating story as we dig out of a tough economic recession. It's been a great 2012 so far, but we've just gotten started.

-- Photo courtesy Glen Hooks

Calling Foul on Big Oil

Hundreds of pairs of ears are still ringing from the sound of whistles blowing on the West Lawn of the Capitol yesterday afternoon, as protesters dressed as referees to call foul on the pipeline of money flowing between Big Oil and the halls of Congress. 

The Sierra Club joined 350.org, the Energy Action Coalition, and the Natural Resources Defense Council, in organizing the event, which lauded President Obama’s recent Keystone Pipeline decision, while demanding an end to the dirty influence of Big Oil money in government.

Headlining the list of speakers were Senator Bernie Sanders (I – VT) (pictured above) and Representative Steve Cohen (D – TN), who both decried the political concessions bought by oil companies.  Said Sanders:

“We’ve got to end all of the tax breaks for the oil companies and coal companies and I’m going to introduce legislation to do just that.”

Cohen followed by adding:

“For too long, Big Oil has exercised far too much control in Washington.  It’s time for the people to stand up to their vaults of money and army of lobbyists and work to restore the government by the people, for the people.”

The protest proceeded to march to the office of the American Petroleum Institute, throwing penalty flags and calling a “democratic foul.”  The whistles were loud and the message was clear: it is high time to take the Big Oil money out of the halls of Congress.

-- David Loss, Sierra Club Green Transportation Campaign. Photos by Sally McGuire

Surface Transportation: On the Bubble?

With college basketball season heating up, and teams trying to pad their resumes in the hope of securing an NCAA tournament bid, Congress has some upcoming March Madness of its own.  The current surface transportation law, which covers highways, transit, freight rail, and bicycle and pedestrian infrastructure, expires on March 31.

The last time Congress succeeded in passing a long-term surface transportation bill was back in 2005, with the passage of SAFETEA-LU (“Safe, Accountable, Flexible, Efficient Transportation Equity Act - A Legacy for Users”).  That law expired in 2009, but has seen multiple short-term extensions meant to continue the funding and policy in the old law while legislators hash out a new bill.  This time, however, Congress seems seriousabout a negotiating a new, long-term deal.

It won’t be easy, however, as the House and Senate have dueling proposals, and differ on serious issues like funding sources and length of authorization.  Though still incomplete, the Senate bill would be a two-year provision that would greatly consolidate the federal transportation program.  This would include strong safety and performance provisions, and would help improve the condition of our roads and bridges.  Unfortunately, this might also mean less funding for bicycle and pedestrian infrastructure. 

To reach the finish line, the Senate must still pass a transit section, as well as funding for the proposal, as revenues from the gas tax are no longer sufficient to cover the need for our massive transportation system.

Big Oil's Marching Orders to GOP: Risk Middle Class Tax Relief to Protect Our Profits on Keystone XL

While President Obama and the State Department wisely decided to reject the Keystone XL Pipeline last week, a new joint Big Oil-GOP plan would tie the pipeline to important tax cut legislation, threatening to sink a bill that would save 160 million Americans hundreds of dollars a year.

President Obama has already said "no" to Keystone once, declaring that the risky project was not in our national interest.  A 1,700 mile pipeline running from Alberta, Canada to Texas, Keystone XL would move highly toxic and corrosive tar sands crude over some of our nation’s most critical water sources. And it would be run by Transcanada Corporation, a company that’s last pipeline spilled oil a dozen times in its first year of operation.  

Grassroots activists achieved a huge victory for clean air, clean water, and the health of American families by working tirelessly to stop Keystone XL in its tracks. But the President’s decision is not stopping Big Oil executives in their relentless pursuit to profit at any cost.

On Monday afternoon, officials from Transcanada directly advised Republican lawmakers on legislative strategy to revive the Keystone XL proposal during a Capitol Hill meeting according to a Politico report.

While most Americans couldn't get the time of day from a member of Congress, Congressional Republicans always seem to find time to get together with their Big Oil patrons. From securing generous subsidies to BP and Exxon to fighting against fuel efficiency standards, the results of their collaboration are rarely good for American families -- and this time was no different.

Following their strategy session, Republicans unanimously agreed to attach a provision forcing approval of Keystone XL to any viable bill –- including the upcoming extension of a middle-class payroll tax cut. In other words, they are plotting to push this highly risky pipeline on our country by tacking it onto a bill critically needed by American families, forcing legislators to vote for Big Oil's pet project in order to provide tax relief for working Americans.

Now, while millions are struggling to make ends meet, Big Oil billionaires and their political friends are huddling behind closed doors to hatch a scheme that will hold tax relief for the middle class hostage. They are proving yet again that they are willing to sacrifice anything –- whether it's the health or the wealth of American families –- to pad the profits of a few Big Oil CEOs.

This shameless tactic is clear evidence that our fight against Big Oil on Keystone XL is not over, and we will continue to have to stand up to deep-pocketed attacks against the air we breathe and the water we drink.

-- Tony Cani, National Political Director

East River Energy

Start spreading the news.

A plan to harness the power of the East River's currents in New York City has received the green light it needed thanks to a commercial license issued yesterday by the federal government.

The project is designed to generate more than 1 megawatt of power for the thousands of residents living on Roosevelt Island between Manhattan and Queens. The renewable power source, known as tidal power, would come from turbines installed on the river's floor. Verdant, which has been working on the project since 2002 and has already installed a handful of turbines, wants 30 generators in the river by 2015.

It's a first-of-its-kind project and it is worth watching to see whether tidal power will become a viable force in the clean-energy sector. Judging by the video above, I'd hate to be a fish caught in a tidal power farm. However, in this video interview on GristTV at about the 3:50 mark, a Verdant representative says that there have been no problems. 

"The largest impact that is unavoidable is the fact that there are rotating blades that are heavy in the water," he says. Because of that "there's a concern of impact with fish, the physical striking of fish, and generally changing the ecosystem as a result. There are also diving birds here in the East River. Thus far we have not seen any negative effects on the ecosystem."

-- Brian Foley

Everyone's Talking About Keystone

Bill Maher recently sat down with Bill Moyers.

New Report - Coal Use Shrinks while Clean Energy Expands

A new report today from the U.S. Energy Information Agency (EIA) confirms that America is moving beyond coal, though the EIA understates how dim coal's prospects are. According to the 2012 energy outlook released today, coal-fired electricity will continue its steady decline in 2012, opening market space for clean energy.

For many years the Energy Information Agency has exaggerated coal’s prospects for the future, and every year has had to downgrade its projections. Today EIA again downgraded coal's future.

In the 2012 Annual Energy Outlook presentation about new coal generation they stated that no new coal generation is added “beyond that which is under construction,” and that coal’s percent of electricity generation will shrink from the current 44 percent to 39 percent between 2010 and 2035. This is noteworthy, since in its 2010 Outlook (released in 2011) the EIA projected that coal would drop to 44% of electricity generation by 2035, but just one year later the country already hit 44%.

The $80 Billion Clean Energy Access Opportunity

Last month the Durban climate talks established the Green Fund which is billed as the world’s premier source of clean energy finance – once it gets up and running. The problem is innovative entrepreneurs who are trying to deliver on the United Nation’s Sustainable Energy For All goals needed financing yesterday.

Social entrepreneurs are doing amazing work providing energy services to the poor but financing for this segment is incredibly tough to come by. Which is why, much like the Green Fund, delivering energy access for the poor could benefit from innovative sources of finance. Enter Arc Finance, which is pursuing an innovative source with tremendous potential – harnessing the billions of dollars in remittance flows sent each year by immigrants living in developed countries to their relatives in less developed countries.

In a must-read paper, Arc Finance lays out the gargantuan opportunity remittance flows present. Globally they increased 6% to reach $325 billion in 2011. Of that total 10% to 25% were used for household energy purchases in markets they surveyed. If these numbers held true across the global market a clean energy access finance opportunity of $32.5 - $81.25 billion annually exists.

To put that in perspective the Green Fund is supposed to reach $100 billion by 2020 (though its currently empty) and the entire clean energy market was only $260 billion in 2011. If even 1% of that market opportunity were tapped the world could add $3 to $8 billion annually to clean energy access coffers. This would be roughly the size of a World Bank energy portfolio, but dedicated entirely to clean energy access and not costly grid extensions. Most importantly, it would go to those households that need it most.

Combined with rapid innovation in energy service delivery at the bottom of the pyramid it is entirely possible to harness these flows. Mobile banking systems for example enable remittances to be sent directly from a mobile phone anywhere in the world, to one in rural India. Taken one step further - by connecting a mobile phone enabled remittance flow to a pay-as-you-go clean energy system – mobile banking lays the foundation for a truly revolutionary stream of clean energy financing. The best part is these systems exist today.

India’s Leapfrog Opportunity

Nowhere is the opportunity larger than India. In 2010 the subcontinent received an estimated $55 billion in remittance flows. It also just so happens to be home to the largest number of energy poor households in the world, near universal cell phone penetration, and tremendous innovation in energy service delivery for the poor.

In short, India has all the ingredients for success, it just requires a vision that is not limited by the aid trap (that clean energy is too costly for the poor to pay for themselves) or the grid fallacy (that costly grid extensions are the only way to deliver energy for the poor). The global community can continue to talk the talk on energy access or we can put our money and effort where our mouth is. 2012 is the year to make clean energy access happen, innovative sources of financing like harnessing remittance flows are the way to make it happen.

-- Justin Guay, Sierra Club International Program