How Industrial Efficiency Increases Competitiveness ......World’s leading environmental services...
Transcript of How Industrial Efficiency Increases Competitiveness ......World’s leading environmental services...
Jennifer Kefer, Alliance for Industrial EfficiencyElinor Haider, Veolia North America
Bree Raum, American Gas AssociationJessica Lubetsky, Pew Charitable Trusts
How Industrial Efficiency Increases Competitiveness, Reduces Emissions, & Enhances Reliability
What Is Combined Heat and Power
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Current CHP Projects
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ArcelorMittal (Indiana)
Energy recovery and reuse 504 boiler project
$63.2 million total project cost
$31.6 million DOE grant
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$20 million in energy cost savings
Payback (with DOE grant): 1.58 years
Generates 90 MW
Provides 20% of energy needs
CHP Technical Potential
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Remaining Potential for CHP
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Findings
Save 396-million megawatt-hours of electricity in 2030
Save businesses $298 billion in avoided electricity purchases (cumulative cost savings 2016-2030)
Reduce annual CO2 emissions by 174.5-million tons in 2030
Achieve nearly one-third (29 percent) of the reductions called for under the Clean Power Plan (CPP)
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U.S. Energy Use By Sector (2015)
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Source:ACEEE,2014
Energy Efficiency Is the Cheapest Energy Resource
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Industry Has Lowest Cost of Saved Energy
Source:DOE,2013
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The Opportunity: Potential Reduction By Region
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State Ranking of Potential Reductions
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World’s leading environmental services companyNo. 1 largest environmental firmNo. 1 in water partnerships220,000 employees
Veolia North America8,000 employeesHeadquartered in Boston500 MW+ of CHP owned or operatedLargest customers are oil & gas, citiesNo.1 district energy portfolio in the USNo. 1 water services company in the US
Veolia - Global Leadership
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TheCHPOpportunityfortheNaturalGasIndustry
October 17 , 2016
BreeA.Raum|SeniorDirector,FederalAffairs
www.naturalgashome.org
Werelyonnaturalgas
everyday ExploretheInteractiveNaturalGasHome
Cars,Trucks,Vans&SUVs
Fireplaces
Lighting
ClothesDryers
www.naturalgashome.org
Werelyonnaturalgas
everyday ExploretheInteractiveNaturalGasHome
WaterHeaters
GasRanges,Ovens,&Cooktops
Furnaces
StandbyGenerators
OutdoorLivingSpaces
GASUTILITYSUPPORTFORCHP
“AGAmembersrecognizethatthepursuitandadoptionofnaturalgas
DG/CHPapplicationscouldcreatepotentialbusinessopportunitiesfortheir
companyand/orthenaturalgasindustryandbenefitmanyconsumers.”
- AGAPolicyPrinciplesonNaturalGasDistributedGenerated/CombinedHeatandPower
NaturalGasStableandaffordablesupplieswellintothefuture
Technologicaladvances,anaccessibleandabundantdomesticresource,andtheworld’smostextensiveandreliabledeliveryinfrastructurehavecreatedafundamentalshiftinthenaturalgasmarketplace.
Recentproductiongrowthhasslowed
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Bcfd
DailyDryNaturalGasProductionUSLower-48
Four-YearRange2007-2010
2016
NewrecordFeb’16
Productionslows
However,wehaveseenandcontinuetoexpectrelativelylowandstablenaturalgasprices
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Source:EnergyInformationAdministration
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
$/MMBtu NaturalGasPricesPrompt-MonthFuturesatHenryHub
PriceRange2005-2009
2016 2015
2014
NaturalGasPriceOutlookOurnation’sstrongnaturalgassupplyfundamentalsandrobustandreliablenaturalgasdeliveryinfrastructuresuggestthatoverthenextdecade,arangeofdemandscenarioscanbemetbyadiverseandresponsivesupplymarketwithinanestimatedpricebandof$4.00-$6.50perMMBtu— alevelwellbelowthepeakmarketpricesoftheprecedingdecade.
Source: RethinkingNaturalGas,AFutureforNaturalGasintheU.S.Economy, p.6,AmericanGasAssociation,©2012,CitingSource:WoodMacKenzie Spring2012.Seepaperforoutlooklimitations.
• Naturalgasresources:abundantandcost-effective.
• OpportunitytosupportU.S.manufacturingandindustrialbase.
• Near-term,affordablereductioninairemissions.
• Deliverefficientenergysolutionsandprovidecustomersvalue.
• CHPasgrowthopportunityforutilities.• Anefficient,lowcarbonsolutiontocomplywithEPAregulations.
WhyCHP?Whynow?
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EconomicPotentialof41.6GW(PotentialWithLessThan10YearPayback)
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<100MW
100– 399MW
400– 999MW
1,000– 1999MW
>2,000MW
AGAactivities
•DevelopValuePropositionforLDC’s&Stakeholders
•Educate&Communicate•Expose&EliminateObstacles
•OrganizetheLDCCommunity
•EngageCHPStakeholders•AssistinPolicyDevelopment
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Industrial Energy EfficiencyMaking America's power more efficient, resilient, and increasing our global competitiveness
Industrial energy efficiency in the U.S.TheProblem
Financeisneededtohelpenergyuserscovercapitalcosts.
Theavailabletaxcreditmakesitdifficultforprojectstoqualify.
ContinuetheInvestmentTaxCreditsoastoensurecleanandefficientpowergeneratingtechnologieslikecombinedheatandpower(CHP)andwasteheattopower(WHP)haveparity withothercleanandefficienttechnologiesintheavailableenergytaxincentives.
The Solution
Changes would make the tax credit more accessible
CurrentLaw ThePOWERAct(S. 1516,H.R.2657)
WHP2015Bill(S.913)
Section 48Extension(H.R.5167,H.R.5172,)
10%ITCforcombinedheatandpower
ExpandITCto30%,onparwithothertechnologiessuchassolar
Extend currentITCforcombinedheatandpower
Doesnotincludewasteheattopower
Includewasteheattopowerasqualifyingtechnologyfor30%credit
Includewasteheattopowerasqualifyingtechnologyfor10%
credit
Doesnotincludewasteheattopower
Appliestothefirst15MWofprojects whicharesmallerthan50MW
Applytofirst25MW,eliminateprojectsizecap
Applies toprojectswhicharesmallerthan50MW Same ascurrentlaw
ExpireDec.2016 ExpireDec. 2018 ExpireDec.2016 Expire Dec.2021
House bills in the 114th Congress H.R.2657,ThePowerEfficiencyandResiliency(POWER)ActCongressmenTomReed(R-NY)andEarlBlumenauer(D-OR)introducedinJune2015
ü Expandsinvestmenttaxcreditto30%ü Addswasteheattopowerasaqualifyingtechnologyü Appliestofirst25MW,eliminateprojectsizecapü ExtendsITCtoDecember2018
Rep.MarkE.Amodei (R-NV)Rep.JoyceBeatty(D-OH)Rep.DanBenishek (R-MI)Rep.MikeBishop(R-MI)Rep.EarlBlumenauer(D-OR)Rep.MattCartwright(D-PA)Rep.KathyCastor(D-FL)Rep.ChrisCollins(R-NY)Rep.GeraldConnolly(D-VA)Rep.JosephCrowley(D-NY)Rep.CarlosCurbelo (R-FL)Rep.RodneyDavis(R-IL)Rep.CharlieDent(R-PA)Rep.RobertDold (R-IL)
Rep.DanDonovan(R-NY)Rep.ChristopherP.Gibson(R-NY)Rep.JosephJ.Heck(R-NV)Rep.MikeHonda(D-CA)Rep.RonKind(D-WI)Rep.PeteKing(R-NY)Rep.AnnKirkpatrick(D-AZ)Rep.DarrinLaHood(R-IL)Rep.TedLieu(D-CA)Rep.DanielLipinski(D-IL)Rep.FrankLoBiondo(R-NJ)Rep.MiaLove(R-UT)Rep.TomMacArthur(R-NJ)Rep.TomMarino(R-PA)
Rep.BettyMcCollum(D-MN)Rep.DavidMcKinley(R-WV)Rep.CandiceMiller(R-MI)Rep.TimMurphy(R-PA)Rep.RichardNeal(D-MA)Rep.BillPascrell(D-NJ)Rep.ChelliePingree(D-ME)Rep.JaredPolis(D-CO)Rep.ThomasReed(R-NY)Rep.TimRyan(D-OH)Rep.MikeSimpson(R-ID)Rep.EliseStefanik(R-NY)Rep.SteveStivers (R-OH)Rep.MikeThompson(D-CA)
Rep.DinaTitus(D-NV)Rep.PaulTonko (D-NY)Rep.DaveTrott (R-MI)Rep.PeterWelch(D-VT)Rep.KevinYoder(R-KS)Rep.DonYoung(R-AK)
House bills in the 114th Congress H.R.5167,TechnologiesforEnergySecurityActCongressmenTomReed(R-NY)May2016
ü modifiestheITCtoextendthrough2021ü phasesoutthecurrentcreditrate(unlesscreditiscurrentlyat10%)
Rep.Blum,Rod[R-IA-1]Rep.Blumenauer,Earl[D-OR-3]Rep.Cardenas,Tony[D-CA-29]Rep.Cole,Tom[R-OK-4]Rep.Costello,RyanA.[R-PA-6]Rep.Cramer,Kevin[R-ND-AtLarge]Rep.Duncan,Jeff[R-SC-3]Rep.Emmer,Tom[R-MN-6]Rep.Esty,ElizabethH.[D-CT-5]Rep.Gallego,Ruben[D-AZ-7]Rep.Gibbs,Bob[R-OH-7]Rep.Gibson,ChristopherP.[R-NY-19]Rep.Guinta,FrankC.[R-NH-1]Rep.Higgins,Brian[D-NY-26]Rep.Huffman,Jared[D-CA-2]Rep.Kind,Ron[D-WI-3]
Rep.Larson,JohnB.[D-CT-1]Rep.Loebsack,David[D-IA-2]Rep.Love,MiaB.[R-UT-4]Rep.Lowenthal,AlanS.[D-CA-47]Rep.Meehan,Patrick[R-PA-7]Rep.Pocan,Mark[D-WI-2]Rep.Rangel,CharlesB.[D-NY-13]Rep.Reichert,DavidG.[R-WA-8]Rep.Renacci,JamesB.[R-OH-16]Rep.Smith,Lamar[R-TX-21]Rep.Stefanik,EliseM.[R-NY-21]Rep.Stivers,Steve[R-OH-15]Rep.Thompson,Mike[D-CA-5]Rep.Tonko,Paul[D-NY-20]Rep.Walz,TimothyJ.[D-MN-1]Rep.Zinke,RyanK.[R-MT-AtLarge]
Technologies need parityITCpercentdeductionsbytechnologyasofOctober2016
Jennifer Kefer, Alliance for Industrial EfficiencyElinor Haider, Veolia North America
Bree Raum, American Gas AssociationJessica Lubetsky, Pew Charitable Trusts