No Carbon News

(© 2024 No Carbon News)

Discover the Latest News and Initiatives for a Sustainable Future

(© 2024 Energy News Network.)
Subscribe
All News
Minnesota lawmakers look to reform energy permitting
Jan 30, 2024

CLEAN ENERGY: Renewable energy and transmission permitting reforms will be a key focus for Minnesota lawmakers this session in an effort to hit long-term clean energy targets. (Star Tribune)

OIL & GAS:

  • A new analysis of federal data finds as many as 11,446 natural gas storage wells across the U.S. could have a single barrier to failure, a key risk that could result in major methane leaks. (Floodlight)
  • Cleanup is underway of a 300-barrel oil spill in North Dakota following a tank leak caused by recent extreme weather. (Bismarck Tribune)

FINANCE: Minnesota leaders plan to launch the state’s green bank this year with $45 million in starting funds to help finance clean energy and climate projects. (Sahan Journal)

WIND: North Dakota’s top utility regulator questions Verizon’s purchase of power from a proposed 200 MW wind project, saying the company doesn’t need it and is merely trying to “get environmental activists off their backs.”  (North Dakota Monitor)

SOLAR: An energy justice cooperative is selected to develop three community solar projects around Chicago that backers say will help lower energy costs for low- and moderate-income communities. (Inside Climate News)

POLITICS: Vulnerable Democrats in swing states call on the Biden administration to dial back plans to slash power plant pollution, boost electric vehicle sales and pause natural gas exports. (Bloomberg)

ELECTRIC VEHICLES:

  • Higher vehicle costs and a lack of charging stations remain key barriers for Minnesota school districts interested in electric buses. (MPR News)
  • An electric yard truck producer moves into a new 400,000-square-foot facility in Kansas City, where it expects to produce nine times the amount of vehicles than at its previous facility. (Kansas City Business Journal)

MINING: South Dakota legislation would bring the state closer to reopening uranium mining, which environmental advocates say has left a legacy of polluted waterways. (KEVN)

CLIMATE: If a Biden administration review finds that liquefied natural gas exports are a significant driver of climate change, it could lead to a permanent ban on the practice. (E&E News)

CARBON CAPTURE: Summit Carbon Solutions reaches an agreement with a major biofuel producer that would add 17 ethanol plants to the developer’s proposed carbon pipeline in Iowa and South Dakota. (Iowa Capital Dispatch)

TRANSPORTATION: Officials in Springfield, Missouri, consider a host of short and long-term recommendations to improve its local transit system. (Daily Citizen)

Gas storage sites susceptible to failure
Jan 30, 2024

OIL & GAS: More than 11,000 underground natural gas storage sites across the U.S. could have a single barrier to failure that puts them at risk of a major methane leak, according to a new federal analysis. (Floodlight)

ALSO:

  • If a Biden administration review finds that liquefied natural gas exports are a significant driver of climate change, it could lead to a permanent ban on the practice. (E&E News)
  • The federal Bureau of Land Management abandons work on a resource management plan ten years in the making that would guide oil and gas development in northwestern New Mexico’s Chaco region, baffling conservationists and the industry alike. (Capital & Main)

SOLAR:

CLIMATE: Researchers estimate climate change has killed at least 4 million people around the world since 2000, crediting increasingly extreme weather for excess deaths. (Grist)

ELECTRIC VEHICLES:

HYDROGEN: Hydrogen produced with clean energy could be essential to decarbonizing heavy industry, but questions remain over just how clean it really is. (Canary Media)

EFFICIENCY: The U.S. Energy Department proposes rules that would require modest efficiency improvements for new gas stoves. (E&E News)

MINING: An investigation finds proposed lithium mines across the West will require billions of gallons of water, further stressing supplies in drought-plagued areas. (Howard Center)

COMMENTARY: President Biden’s pause on new LNG export approvals is more of a political signal than a climate win, an editorial board writes. (Washington Post)

Feds abandon New Mexico oil and gas plan
Jan 30, 2024

OIL & GAS: The federal Bureau of Land Management abandons work on a resource management plan ten years in the making that would guide oil and gas development in northwestern New Mexico’s Chaco region, baffling conservationists and the industry alike. (Capital & Main)

ALSO:

MINING:

  • An Arizona media investigation finds proposed lithium mines across the West will require billions of gallons of water, further stressing supplies in drought-plagued areas. (Howard Center)
  • Arizona environmentalists file a lawsuit accusing state regulators of secretly approving a waste pipeline for a proposed copper mine. (Arizona Daily Star)  
  • Conservationists call on Arizona Gov. Katie Hobbs to order the closure of a uranium mine near the Grand Canyon, saying it could contaminate water and harm cultural sites. (news release)

UTILITIES: An Oregon county joins winemakers’ lawsuit against Pacific Power for its alleged role in sparking the 2020 Labor Day wildfires. (KOIN)

ELECTRIFICATION: Colorado residents accuse Xcel Energy of hampering efforts to electrify their homes and disconnect from natural gas service. (Daily Camera)

SOLAR:

ELECTRIC VEHICLES: Oregon receives $1.27 million in federal funding to develop electric vehicle charging infrastructure in underserved communities. (KPIC 4)

CLIMATE:

POLITICS: Republican Utah lawmakers establish an “environmental stewardship” caucus that emphasizes the importance of fossil fuels. (Deseret News)

Why a natural gas storage climate ‘disaster’ could happen again
Jan 30, 2024

On a November afternoon in 2022, a 57-year-old well tapped into an underground natural gas storage reservoir in western Pennsylvania started leaking, fast enough that people a few miles away heard a loud, jet engine-like noise.

By the time the leak was stopped nearly two weeks later, roughly 16,000 metric tons of methane had escaped into the atmosphere, the equivalent of more than the annual greenhouse gas emissions from 300,000 gas-powered cars.

The blowout of a well at the Rager Mountain gas storage field was the worst methane leak from underground storage since Aliso Canyon in California in 2015. That incident forced thousands of people from their homes and sickened many of them, taking four months to contain. In 2021, 35,000 plaintiffs in one class-action lawsuit were awarded up to $1.5 billion in damages.

Activists stage a protest outside the Environmental Protection Agency in 2016, urging the agency to shut down Southern California Gas Company’s Aliso Canyon storage facility. (Photo by Alex Wong/Getty Images) Credit: Alex Wong / Getty Images via Floodlight

While not as large or imminently dangerous to residents, the Rager Mountain leak was a “disaster,” according to one Pennsylvania regulator. Bloomberg labeled it the United States’ worst climate disaster that year.

The natural gas that leaked methane in Pennsylvania and California is not stored in tanks but in giant underground geological formations accessed by multiple wells. There are about 400 such storage fields across 32 states.

According to a new report, there are thousands more potential opportunities for a similar situation across the country. The new analysis of data collected by federal regulators suggests there are as many as 11,446 storage wells in the country with the same key risk as the wells that failed at Rager Mountain and Aliso Canyon: They have only a single barrier to failure.

Researchers using federal data estimate 11,446 underground natural gas storage wells have a potential “single-point-of-failure design.” Credit: Geoenergy Science and Engineering

“That population is a lot larger than we had estimated, or other researchers had estimated with state [data],” says Greg Lackey, an author on the study and researcher at the Department of Energy’s National Energy Technology Laboratory.

All but one of Pennsylvania’s 49 gas storage fields has at least one potential single point of failure well, researchers found.

Natural gas is primarily made up of methane, a greenhouse gas 80 times more powerful than carbon dioxide in the short-term. Methane leaks from oil and gas infrastructure are under increasing scrutiny in the United States and worldwide, as stopping them represents a relatively cheap and effective way to prevent greenhouse gas emissions, the primary cause of global warming.

Leaks from gas storage are only one part of the industry’s methane problem. Such facilities also are at risk of dramatic blowouts that are hard to control because they are connected to large, pressurized reservoirs of gas.

New rules, fees aim to cut methane leaks

Regulations put in place on gas storage post-Aliso Canyon are still rolling out, including a requirement for baseline risk assessments on all wells by 2027. New EPA rules on methane leaks and repair and a planned federal fee on “waste” methane would impact gas storage as well.

The fee, which is still being finalized, would force companies to eventually pay up to $1,500 per metric ton of methane in excess of the equivalent of 25,000 metric tons of carbon dioxide, a threshold the Rager Mountain leak meets almost 20 times over. Industry groups have pushed back against the fee, arguing it would harm smaller oil and gas companies and discourage oil and gas production overall.

Many of these wells are decades-old and not originally designed for storage. They have gone through the stresses of repeated cycles of injecting and withdrawing gas. Some, like Rager Mountain, are in relatively rural, sparsely-populated areas, but others are close to neighborhoods in Pennsylvania, Ohio and California.

The Rager Mountain leak was caused by a break below ground in one well’s casing — the barrier between where pressurized gas flows and the geology around it. The well had become heavily corroded from exposure to water, air and organic matter through an open valve, according to an third-party analysis submitted to regulators and obtained through a public records request.  

“They probably didn’t realize it, but they were creating an optimum case for corrosion,” says Dan Arthur, president of the engineering and technical services firm ALL Consulting, who reviewed the analysis.

Arthur says older wells in storage fields haven’t been given “as much significance” as they should be, and operators need to make sure they’re fully addressing well integrity.

“Age is a risk factor that you have to consider, but it also depends on how you are caring for the well,” he says. Redundant barriers reduce the risk of methane escaping if the well casing fails, Arthur and Lackey say.

Minimum federal safety standards on underground storage fields were set less than a decade ago in the aftermath of the Aliso Canyon leak. One of the federal agencies in charge of regulating gas storage sites, the Pipeline and Hazardous Materials Safety Administration, only began collecting regular data on underground storage fields in 2017.

More data needed to identify riskiest wells

The number of wells with potentially only one barrier was three times larger than previously estimated before the PHMSA data became available, Lackey says. This “single point of failure” design featured in both Rager Mountain and Aliso Canyon blowouts is present in as many as 64% of all gas storage wells in the United States, his research found.

But the data reported to PHMSA is not enough to confirm how many of these wells actually have a single point of failure that would flag wells at the highest risk of another blowout, Lackey says. Researchers would need more information about each well’s design and construction, he says.

“What you don’t get insight into is how many other casings there are, or where the locations of cement are,” Lackey says, describing additional barriers that would lower the risk.

Rager Mountain’s owner and operator, Equitrans, had its own risk ranking of storage wells, according to the third-party analysis. While Rager is the company’s largest field in Pennsylvania, its wells were not the highest ranked in the company’s own risk management plan; Others were higher up the list because of their proximity to residential areas.

Both Peoples Natural Gas, the previous owner of the field, and Equitrans “recognized that corrosion was an issue,” so the companies used probes, known as “logs,” to examine the integrity of the well casings. But, the analysis noted, “Such a strategy is dependent on the logging being reasonably accurate.”

A 2016 test of the casing wall of the well that eventually failed underestimated its corrosion, the report says. When Equitrans reran the test after the blowout using an updated algorithm, it showed far more corrosion.


In the wake of the Rager Mountain blowout, Pennsylvania’s Department of Environmental Protection, said it was considering a  “top to bottom review” of the state’s gas storage industry. Pennsylvania is one of a handful of states that have their own regulations covering gas storage.

“Everything is on the table for consideration in terms of making sure this industry is regulated appropriately and the public is protected and the environment is protected from potential incidents like this happening again,” said Kurt Klapkowski, acting deputy secretary for DEP’s Oil and Gas Management office, a month after the incident.

‘A huge battery system’

But after a successful effort by Equitrans to move the bulk of the incident investigation to federal regulators, DEP appears uncertain or unable to move forward with such a review. Klapkowski told the agency’s Oil and Gas board in September that regulators were “trying to figure out where our jurisdiction ends or might be preempted by the federal government.”  

Pennsylvania DEP’s investigation into surface and groundwater contamination at Rager Mountain is ongoing, the agency said in an emailed statement, and it “remains committed to its goal of inspecting storage field wells on an annual basis regardless of risk.”

Wells are assessed through surface inspections and information reported by operators, DEP added, using multiple factors to prioritize wells for inspection, including the potential environmental impact and likelihood of failure, as well as proximity to population.

Equitrans has taken several steps to reduce risk in its storage fields, spokesperson Natalie Cox said in an emailed statement. They include reprocessing older well tests, running additional tests on another 100 wells in 2023, and changing its requirements for when to add protective gel to reduce corrosion. The company did not answer questions about whether these tests led to any well replacements.

Lackey’s study also found that nationally, while most leaks from gas storage were connected with accidents or well improvement projects known as workovers, leaks from corrosion released a much larger volume of methane.

A total of 53 known well leakage events occurred prior to 2023 at U.S. underground natural gas storage facilities. Credit: Geoenergy Science and Engineering

“If it’s a valve or something that’s broken off on the wellhead, that might be easier to contain, rather than something downhole that would be exposed to higher pressures within the well,” he says. “During workovers you have systems in place to contain the well … whereas with corrosion, that’s something going on silently in the background.”

While a 2016 government task force recommended phasing out single point of failure of wells, ultimately the federal minimum standards only required operators to address them through submitting risk-management plans to federal regulators — plans that are not public.

The release of gas from Rager Mountain in November 2022 represented about 15% of the field’s working storage volume. Underground storage fields act as “a huge battery system,” says Drew Michanowicz, a researcher who has studied their proximity to residential areas.

Major leaks from storage not only release huge volumes of greenhouse gases but also reduce reliability in areas where natural gas dominates home heating and electricity production, Michanowicz says.

The federal leak investigation at Rager Mountain remains open at least until regulators review work on fixing three temporarily plugged wells in the field, likely in the spring. But Rager Mountain is otherwise operating. In October, with PHMSA’s approval, Equitrans began injecting gas into the field for the winter.

Floodlight is a non-profit newsroom that investigates the powerful interests stalling climate action. This story was produced with support from the Fund for Investigative Journalism.

Mass. drivers will save money charging EVs at night — but when and how much?
Jan 30, 2024

Charging electric vehicles in Massachusetts could get less expensive under a pair of utility proposals now under consideration, but advocates are arguing for tweaks they say would make the transition faster and more fair.

A 2022 state climate law requires the state’s two major electric companies, Eversource and National Grid, to submit proposals for so-called time-of-use rates offering lower prices to electric vehicle owners who charge their cars during times of lower demand hours. The utilities did so in August 2023, proposing off-peak rates they say could save users hundreds of dollars a year compared to basic service rates.

Climate advocates generally support the time-of-use concept. Lowering the cost of charging could motivate potential buyers as the state tries to hit its goal of getting 900,000 electric vehicles on the road by 2030, they argue. Shifting vehicle charging to off-peak hours could also lower power use during peak times, reducing the need to fire up older, dirtier fossil fuel power plants to meet demand.

Still, stakeholders said, there is room for improvement in everything from the process of collecting public feedback to the precise calculations behind the rates.

“We are very supportive of time-of-use rates, broadly speaking,” said Oliver Tully, director of utility innovation and reform at climate nonprofit the Acadia Center. “We want to make sure these initial plans are as strong as possible.”

Hearing from the public

In considering the utilities’ proposals, the Department of Public Utilities is trying out a new strategy: They have asked the utilities themselves to collect feedback from the public. The goal is to hear from parties that might not have qualified to be formal intervenors in the case, said Anna Vanderspek, electric vehicle program director for the Green Energy Consumers Alliance.

“They’re saying: We want you to talk about this and come to an agreement because the [Department of Public Utilities] process limits who’s in the room for the conversation,” she said.

While she appreciates the aim of opening the discussion to more voices, however, she isn’t confident the utilities, left to their own devices, will create enough opportunities for feedback.

“It’s not an impartial third party running the stakeholder process,” she said.

The utilities had a first meeting scheduled to take place online today, which Eversource spokesman William Hinkle called, “the first of a series.”

Timely rollout

The timeline laid out by the utilities is also of concern to some advocates. The utilities do not want to roll out these rates before they deploy advanced meters and software, and then have a year’s worth of experience with the new system “to ensure network stability,” according to Eversource’s filing. By the utility estimates, this timeline would mean the new rate option would be unlikely to kick in before 2029.

Many advocates don’t think it’s necessary to wait quite so long, however. Other states, such as Vermont and California, have implemented time-of-use rates for electric vehicle charging without requiring advanced meters. Data from chargers or the vehicles themselves can be used to determine how much power was used for charging and when, allowing for billing at different rates.

“You can implement basic time-of-use rates without a smart meter,” Tully said. “If you allow for submetering using charging technology you should be able to accurately do that.”

Getting started now, instead of waiting for advanced metering, could also make the launch of time-of-use rates go more smoothly, said Graham Turk, a graduate research assistant at the Massachusetts Institute of Technology’s Energy Initiative. Any new rate structure is going to need adjustments once it is introduced.

“The earlier they do that, the better,” Turk said. The current proposal would “just push that farther down the line when [electric vehicles] are a lot more prevalent and it’s a lot harder to do this for the first time.”

Getting the rates right

Lower rates during off-peak hours may not be enough on their own to recruit new electric vehicle drivers, many experts said. Getting the precise numbers right will be vital.

“The real challenge is going to be in ensuring that the rate structure is something that encourages people to participate, but doesn’t punish people for using electricity outside of the time-of-use rate hours,” said Priya Gandbhir, senior attorney with the Conservation Law Foundation.

The utilities’ filings include example numbers for what an electric vehicle charging time-of-use rate might look like, but do not propose specific rates yet, given how much could change in the market and regulations over the next five years. In each of these illustrative cases, the cost of off-peak vehicle charging is substantially lower than the cost of basic service, while the cost of on-peak charging is significantly higher.

That makes rough sense, advocates said, but when the real numbers are determined, a delicate balance must be struck. If the difference between on-peak and off-peak rates is too small, it won’t do enough to motivate more people to consider electric vehicles. At the same time, if the gap is too big, then a few on-peak charges could mean a bigger bill than under basic service rates, effectively punishing some consumers if a sudden change in schedule alters their charging times.

“Basically, when people’s bills come through at the end of the month they should be able to see some savings, regardless,” Gandbhir said. “They shouldn’t have to be perfect.”

Ensuring equity

As all these complicated decisions are made, it is essential to keep in mind the effects these changes could have on lower-income populations in the state, said Mary Wambui-Ekop, a longtime energy equity activist and co-chair of the equity working group for the state’s Energy Efficiency Advisory Council.

She worries that the overall cost of a major transition toward a new metering system and time-of-use rates could add to the already high energy burden of low-income households. In Massachusetts, households earning under 30% of the average median income pay 13% of their earnings to energy costs, as compared to 2% for households at or above median income.

“The bottom line is low-income households in Massachusetts, Black and brown households, have higher energy burdens,” Wambui-Ekop said.

At the same time, residents working multiple jobs, living in rental units, and just trying to keep up might not have the time, education, or internet access to learn about and weigh new and potentially cost-saving options.

There is precedent for this concern: Lower-income households have also been left behind in other pushes for renewable energy or energy efficiency in the state. A 2020 report by the utilities, for example, found that residents of wealthier communities were far more likely to have taken advantage of energy efficiency programs than those in lower-income areas and neighborhoods with higher populations of color.

Plans for time-of-use rates — for electric vehicle charging or beyond — must therefore include careful plans for making sure historically disadvantaged communities can share in the benefits and avoid shouldering the burden, Wambui-Ekop said.

“I am not opposed to time-of-use rates,” she said, “They are great in a perfect market. Unfortunately, the market system has not been fair to low-income households.”


‘Project Maple’ gas expansion faces broad opposition
Jan 29, 2024

NATURAL GAS: More than 90 environmental organizations call on the governors of Connecticut, Massachusetts, New York and Rhode Island to oppose the expansion of a major natural gas pipeline through the states. (WBUR)

ALSO:

SOLAR:

GRID:

  • Maine’s two biggest utilities ask state regulators to let them own battery storage facilities, something that isn’t allowed under the state’s deregulated utility structure. (Lewiston Sun Journal)
  • NJ Transit cancels a microgrid project that would’ve used natural gas as a backup power source for its trains, saying it was not “financially feasible” and that other grid improvements made it unnecessary.

UTILITIES:

EMISSIONS: Residents in a Pittsburgh-area town voice concerns about emissions from a longstanding coke plant as regulators consider whether to renew its operating permit. (Inside Climate News)

WIND:

  • New York’s fourth offshore wind solicitation has so far gotten six bids from developers. (Renewable Energy World)
  • Offshore wind opponents hold a conference on Cape Cod to raise concerns about environmental harms and a lack of transparency in the construction of wind farms in the region. (Cape Cod Times)
  • Wind power opponents, including some Congress members, also gather in Ocean City, Maryland, to raise similar issues. (Salisbury Daily Times)

ELECTRIC VEHICLES:

COMMENTARY:

  • New Hampshire’s utilities need a new business model that rewards them for achieving state reliability, climate, and rate goals, writes a clean energy advocate. (Concord Monitor)
  • A Connecticut energy consumer advocate calls for a buildout of the state’s electric grid to support more clean energy, which could lower power costs and boost reliability. (CT Mirror)
  • Maryland advocates protest planned transit funding cuts, saying their effects will fall hardest on low-income residents and threaten climate goals. (Maryland Matters)

Minnesota nonprofit connects investors with low-income solar
Jan 29, 2024

SOLAR: A Minnesota solar nonprofit matches socially conscious investors’ cash with lower-income homeowners to spread the benefits of clean energy in a Minneapolis neighborhood. (Energy News Network)

ALSO: Solar output is poised to steadily grow in South Dakota after the state’s first utility-scale project came online in late 2023. (PV Magazine)

ELECTRIFICATION: A proposed ordinance would make Chicago the first major Midwestern city to ban natural gas hookups in most new construction. (Grist)

POLITICS: Nebraska lawmakers advance a bill that would end nonpartisan elections to the state’s two largest public power districts as supporters decry outside political contributions to clean energy supporters. (Lincoln Journal Star)

PIPELINES:

CLEAN ENERGY: Michigan’s sweeping new climate and renewable energy laws will help increase the amount of federal clean energy funding that flows to the state, experts say. (Michigan Advance)

UTILITIES:

  • A financial audit of two large West Virginia utilities found that customers’ rates did not include charges linked to the House Bill 6 bribery scandal in Ohio. (WTRF)
  • Public Utilities Commission of Ohio staff members allowed AEP officials to redact parts of an audit into the operations of two coal plants that are being subsidized by HB6. (Checks and Balances Project)

STORAGE: Indiana regulators approve plans for a 200 MW battery storage facility that’s expected to come online by the end of the year. (Vincennes PBS)

WIND: North Dakota regulators are holding a hearing today on plans for a 200 MW, $316 million wind project in the heart of the state’s coal country. (North Dakota Monitor)

EFFICIENCY:

  • Worker shortages create challenges for Michigan’s weatherization goals as hundreds of millions of federal dollars flow in for efficiency upgrades. (Bridge)
  • Ameren Missouri files plans with state regulators that would provide $205 million in rebates until 2027 for various residential and business energy efficiency programs. (FOX 2)

BIOGAS: Minnesota county officials will hold public hearings in the coming weeks on plans for a $13.9 million renewable natural gas pipeline. (West Central Tribune)

COMMENTARY:

  • Instead of mandates preventing new construction to exclude natural gas hookups, Illinois lawmakers should incentivize the move and convince people the switch is in their interest, an editorial board writes. (Chicago Sun-Times)
  • The leader of an Illinois union representing energy workers raises concerns about state regulators’ recent decision rejecting grid investment plans from ComEd and Ameren. (Chicago Sun-Times)

Minneapolis solar nonprofit is proving patience can bring results to lower-income residents
Jan 29, 2024

One installation at a time, a solar nonprofit that matches socially conscious investors’ cash with lower-income homeowners is spreading the benefits of solar in North Minneapolis.

Solstar was formed three years ago by solar entrepreneur Ralph Jacobson following his retirement from IPS Solar, the pioneering Twin Cities’ solar company he founded three decades ago earlier.

In his entire career, “I hardly ever had Black customers or Black subcontractors,” Jacobson recalled.

Solstar is a collective effort for clean energy leaders in North Minneapolis to address those racial disparities.

Jacobson, 71, works his network to persuade wealthy individuals to invest in residential solar installations. Kristel Porter, a well-known community activist, recruits low- or moderate-income homeowners who are interested in having solar on their homes. J.T. Thomas of the Black-owned Go Solar Construction trains and supervises students who help install the projects.

Solstar takes care of applications for all of the available incentives. Homeowners pay nothing and immediately benefit from a lower monthly electricity bill.  

“It’s a no-brainer,” said Jacques Beech, who signed up with Solstar and now has solar panels on the roof of the 2,700-square-foot ranch home he shares with his wife and two kids.

His electricity bill so far has dropped by around $100 a month.

‘It has been harder than expected’

The model is working, though slower than Solstar’s founders would have hoped. The nonprofit initially wanted to finish 24 projects in its first two years. Instead, it’s completed ten and expects to hit the two dozen mark later this year.

“We found it has been harder than expected and needed a different skill set,” Jacobson said.

Among the challenges were managing investors, timing projects around incentives, convincing skeptical homeowners the offer wasn’t too good to be true, and keeping trainees employed in the still sporadic industry.

Solstar’s financing is complex. The nonprofit pays for installations by attracting investors and offering them a modest rate of return. Three major equity investors take advantage of the tax credits and depreciation on the projects. Solstar’s microlenders do not get tax credits but instead receive 3.5% on investments ranging from $5,000 to $50,000.

Solstar investors reduce their taxes by taking advantage of the 30% tax credit and a six-year depreciation schedule on solar projects. After exhausting tax incentives, Solstar plans to sell the solar systems to their commercial and residential customers at a significantly reduced price. Clients hosting Solstar panels on their roofs receive discounts on their electricity by as much as 20% and, in some cases, more.

Jacobson reduces his costs by taking advantage of other programs. Every project is sized up to 120% of the client’s electricity use, the highest amount allowed under Xcel Energy’s Solar Rewards incentive program. Solar Rewards pays more per kilowatt hour for participating low-income households. A production incentive from the city of Minneapolis’s Green Zone program adds another layer of support.

None of this is easily absorbed by investors or clients. Jacobson quickly discovered interested investors, but many would require multiple conversations and several weeks of consideration before betting on his new program.

Eventually, crowdsourcing cash paid off. “I certainly developed a bit of a following, a little community of maybe 70 to 75 people, who have put money into these projects,” he said.

One of those is Eric Pasi, a former partner at IPS Solar who now runs the community solar company Enterprise Energy. He saw an opportunity to move solar beyond helping reduce energy bills of middle- and upper-class clients to a BIPOC mixed-income neighborhood.

“We love projects like this because for a modest investment the impact for these projects is so great,” said Pasi, who is also a board member of Fresh Energy, which publishes the Energy News Network.

Job-training challenges

After Solstar began knocking on doors of North Minneapolis residents in early 2021, Jacobson discovered the annual budget for Xcel’s Solar Rewards program had already run out of money for the year. Porter kept marketing Solstar and speaking to potential clients to prepare installations for 2022 and 2023.

The Solar Rewards issue was just the start of problems. “I didn’t realize we were going to run into as many potholes as we ended up running into,” Porter said.

Some homeowners sat on the fence, not making a final decision for months. At least four who signed up in 2023 delayed solar projections because they needed new roofs after an August hail storm.

Trying to pay professional contractors and their trainees became expensive and “tricky and financially just too much,” Porter said.  

Solstar eventually broadened the contractor pool beyond Go Solar to finish projects within the Solar Rewards deadlines. If a project does not meet deadlines, Solstar would have to reapply for Solar Rewards the following year “and go through the whole process again,” Porter said.

Other projects were slowed when Xcel laid off several employees who were familiar with Solstar and its model.

Solstar’s job training pipeline has also run into hurdles. Thomas onboards students from training programs offered by the city of Minneapolis and partnering institutions such as the Regional Apprenticeship Training Center. Four students who received classroom training then worked with Thomas on Solstar projects.

Some students struggle with getting transportation to installation jobs, he said. Training is often scheduled so far in advance that job opportunities may not be immediately available when students finish their classes.

Many students can’t spend a month or two waiting for a job, Thomas said, and when a job emerges, they may not be available because they are already working.

“It’s taken a while to ramp up, but now it seems like the jobs are trickling in and we’re getting the processes down,” he said. “Hopefully, as we go on to it next year, it will be a little more seamless.”

Replicating the model

Still, according to attorney Jeremy Kalin, the program’s approach and hard-won success means that other nonprofits could use the same approach. His firm, Avisen, has worked with similar programs in Maryland and others are starting in Arizona, Georgia and New Mexico.  

The difference between Solstar and those initiatives is that Jacobson recruited wealthy investors who could take advantage of the tax credits and depreciation. Nonprofits in other states will use the Inflation Reduction Act’s “direct pay” option rather than rely on investors. The act allows nonprofits and government agencies to receive tax credits as cashback from the IRS.

Nonprofits using direct pay did not have a way to “monetize the depreciation deduction,” but “they have a simpler task because finding tax credit investors with the right kind of taxable income is hard,” Kalin said.

Jacobson has not determined whether Solstar will continue the same structure or lean into direct pay. He said several early investors in Solstar and a separate initiative he helps lead in the Red Lake Indian community want to continue participating in Solstar.

Early customers like the program. Beech said he would have never made such a significant investment with such a long payback without the program. “It’s not a cost-effective thing, unless you just have the money, which I don’t,” Beech said. “This is an affordable way to do it.”

After completing the first iteration of Solstar, Jacobson wants to start another limited liability company and start recruiting 24 more homes and small businesses. “If White people can build wealth by owning solar, then I guess Black people should be able to build wealth by owning solar, too,” he said.

Biden pauses new LNG exports for climate review
Jan 26, 2024

NATURAL GAS: The U.S. Department of Energy pauses all approvals of new liquefied natural gas export facilities to further review their climate and other impacts, in a process expected to last up to 15 months. (E&E News, Politico)

ALSO: An Arizona judge clears the way for Salt River Project to expand a natural gas power plant near a historically Black community following a two-year legal fight and charges of environmental racism. (Arizona Republic)

GRID:

  • More utilities are pursuing new grid technologies and power flow tools meant to ensure reliability as a growing amount of wind and solar comes online. (Utility Dive)
  • Some Missouri landowners still hold strong opposition to plans for the Grain Belt Express transmission line, a key project needed to improve grid reliability and transport renewable power. (New Yorker)

SOLAR: While most state and local regulations are clear that developers or owners of utility-scale solar projects must pay to decommission them, some rule complexities can fuel local opposition to projects. (Inside Climate News)

EMISSIONS:

  • While a federal proposal would mandate companies report their greenhouse gas emissions, including indirectly produced Scope 3 emissions, experts say the final rules are likely to be less strict. (ESG Dive)
  • Virginia Democrats want to rejoin a regional carbon market but don’t have the numbers to overcome a likely veto from Republican Gov. Glenn Youngkin, who previously pushed a state board to withdraw from the group. (Virginian-Pilot)

OFFSHORE WIND: Federal agencies publish plans to protect a critically endangered whale species amid East Coast offshore wind development, a strategy that includes artificial intelligence and passive acoustic monitoring. (Associated Press)

CLIMATE:

  • U.S. climate envoy John Kerry will step down not long after the departure of his Chinese counterpart, marking the end of a partnership that thrived despite the two countries’ often chilly relationship. (Associated Press)
  • A bipartisan group of U.S. senators push to reform federal flood insurance, saying participants have seen their premiums skyrocket even after FEMA promised price cuts. (The Hill)

ELECTRIC VEHICLES: Energy Secretary Jennifer Granholm believes drivers will warm to electric vehicle adoption as costs come down and convenience benefits are realized. (ABC News)

NUCLEAR: An Ohio nuclear plant owner and federal regulatory staff oppose two citizen groups’ attempts to formally intervene in a request to extend the plant’s life through 2046. (Energy News Network)

BUILDINGS: National Grid picks a Boston public housing complex, the Dorchester neighborhood’s Franklin Fields Apartments, for the city’s first networked geothermal heating system. (Mass Live)

Biden pauses Gulf Coast LNG buildout to consider climate effects
Jan 26, 2024

OIL & GAS: The Biden administration temporarily halts some permits for new liquified natural gas export terminals on the Gulf Coast as it instructs the Energy Department to consider their climate effects. (Louisiana Illuminator, Washington Post)

ALSO: LanzaJet opens a sustainable jet fuel refinery in Georgia, boosted by $18 million in federal funding and $50 million from a Bill Gates-led clean energy funding group. (Columbus Ledger-Enquirer)

EMISSIONS:

SOLAR:

ELECTRIC VEHICLES:

OIL & GAS: Texas regulators identify dangerous levels of a carcinogenic chemical in water erupting from an old oil well. (Houston Chronicle)

UTILITIES:

ACTIVISM: Young climate activists converge on Tallahassee to lobby the Florida legislature for worker protections, clean energy and other bills to address climate change. (Miami Herald, WUSF)

CARBON CAPTURE: A British power plant company announces it will open a new carbon capture business headquartered in Houston, Texas. (Power Technology, news release)

INFRASTRUCTURE: A Tennessee commission finds the state needs ​​$68 billion in infrastructure improvements, with half of that just for transportation and utility infrastructure. (WBIR)

CLIMATE:

>