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These articles represent a selection of our perspectives
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PUBLICATIONS |
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2008 Articles
2007 Articles
2006 Articles
2005 Articles
2004 Articles
2003 Articles
2002 Articles
2001 Articles
2000 Articles
1999 Articles
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2008 Articles
Benefits to ERCOT Ratepayers from the Kelson Transmission Project
Prepared for Kelson Transmission Company, LLC, by ICF International, June 2008. ICF conducted an economic analysis of the Canal to Deweyville transmission project, which will serve greater Houston, Texas. The proposed transmission line will provide access to efficient generation capacity in eastern Texas. The project will improve the capacity reserve margin of the Electric Reliability Council of Texas (ERCOT) and provide up to $35 billion of total cost savings to rate payers over a 30-year period. In addition, it will reduce emissions through better utilization of clean and efficient power plants. ICF’s report was filed with the Public Utility Commission of Texas in June 2008. If approved, Kelson Transmission anticipates completion of the $300-million project by spring 2011.
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HOME PAGE FEATURE |
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Lighting Update: ENERGY STAR, Legislation, Trends, Incentives and Opportunities
Published in Today’s Lighting Distributor, the official magazine of the National Association of Independent Lighting Distributors, May/June 2008, by Jeffrey Schwartz of ICF International. Recent changes and trends in the lighting market provide new opportunities for independent lighting distributors. As market trends and legislation move purchasers away from inefficient technologies and towards energy-efficient products, distributors that have become ENERGY STAR Partners have an opportunity to increase sales and profits. The Energy Independence and Security Act of 2007, for example, requires that all general purpose lighting in federal buildings be ENERGY STAR products, or products designated under the Energy Department’s Federal Energy Management Program, by the end of fiscal year 2013. The article also outlines the simplified criterion of the Advanced Lighting Package and the Database for Incentives and Joint Marketing Exchange (DIME) tool on the ENERGY STAR Web site.
GU-24 Goes Mainstream
Published in the March/April 2008 issue of Lightrays, a publication of the American Lighting Association, by Chris Primous of ICF International. GU24 lightbulbs (lamps) and sockets are used in many new ENERGY STAR qualified decorative residential light fixtures as the new standard in permanent high-efficiency bases. Using GU24 ensures that decorative light fixtures will always be high-efficiency and never regressed to a low-efficiency lightbulb. This article talks about the use of the GU24 design becoming increasingly popular as manufacturers of bulbs and fixtures start to make the transition to this new design.
Grid Reliability
By Jim Stanton of ICF International and published in the March 2008 issue of POWER magazine. The North American Electric Reliability Corporation
(NERC) Critical Infrastructure Protection Reliability Standards will be fully in the spotlight in 2008. These newly approved measures have the potential to impose substantial compliance associated costs on Responsible Entities under the standards, and also seek to mitigate what are perhaps the most significant risks to the nation's electric infrastructure.
The Broader Connection between Public Transportation, Energy Conservation and Greenhouse Gas Reduction
This February 2008 study was prepared by ICF International in conjunction with Dr. Pat Mokhtarian for the American Public Transportation Association (APTA), with funding from the Transit Cooperative Research Program (TCRP). Based on data from the National Household Travel Survey 2001, the study found a significant correlation between public transit availability and reduced automobile travel, independent of travel use. This secondary effect results in lower total vehicle miles traveled (VMT) even when people are not substituting automobile use with transit use. The presence of public transportation results in more efficient land use patterns in community development. This allows areas to support more travel with fewer roadways in less space and saves 4.2 billion gallons of gasoline, reduces CO2 emissions, and lowers overall energy consumption. A 2007 ICF study assessed the total number of VMT required to replace transit trips and the direct petroleum savings attributable to public transportation.
NERC/CIP Cyber Security: Leveraging Existing Controls to Secure the Enterprise
Published in the February 28, 2008, issue of Energy Central's EnergyPulse, by Kevin T. McDonald, Senior NERC Cyber Security Analyst at ICF International. The electric utility industry is facing the daunting task of compliance with the rigorous North American Electric Reliability Corporation (NERC) critical infrastructure protection (CIP) physical and electronic security standards. Formulated to mitigate the threat of damage or disruption to the U.S. and Canadian Power Grid, these standards were formally adopted by the Federal Energy Regulatory Commission (FERC) in early 2008 and are now mandatory. This article demonstrates methods to reduce the impact of compliance by identifying and incorporating existing controls into the NERC CIP Framework.
Incorporating Energy Efficiency into Affordable Housing Projects
The U.S. Department of Housing and Urban Development (HUD) continues to prioritize development and rehabilitation projects that incorporate energy efficiency measures. This quarter’s featured resource is a guide developed by ICF for PJs to encourage efficiency in projects funded through the HOME Program. The guide contains general information about energy efficiency measures as well as programs local governments can use to encourage developers to incorporate these measures in the development process. It also offers specific information about energy savings and cost savings associated with efficiency measures in specific climate zones, including: CA Central Valley Climate Zone; CA Bay Area Climate Zone; Mountainous Climate Zone; and Desert Climate Zone.
Implications of Proposed Canadian Regulatory Framework for Decreasing GHG
ICF International has examined the implications of the Canadian Government’s proposed regulatory framework for greenhouse gas (GHG) emissions and has developed a tool that will enable companies to better predict the cost to comply. Under the Regulatory Framework for Air Emissions enacted in April 2007, companies are required to reduce their GHG emissions on an intensity basis by 18 percent from a 2006 baseline by 2010 and continue to make intensity improvements of 2 percent each year until 2015. With the government keen to see investment in carbon abatement stay in Canada, future carbon prices in the domestic market are of particular interest to companies with Canadian operations.
Voluntary
Carbon Offsets Market Outlook
The market for voluntary carbon offsets is small
but maturing rapidly. ICF International's new study analyzes
the market drivers, assesses the impediments affecting growth
in the market, and presents scenarios outlining how the market
may evolve to 2010. The study also examines the impact of
some of the emerging international standards and verification
protocols.
Implications of Cyber Security Standards for Electric Power Grid
ICF International examines the implications of the cyber security and critical infrastructure protection (CIP) standards set forth by the Federal Energy Regulatory Commission (FERC). The Commission has implemented eight mandatory security standards that apply to all bulk power system users, owners, and operators. Developed by the North American Electric Reliability Corporation (NERC), these critical infrastructure protection standards attempt to protect the nation’s electric power grid from cyber attacks. Register to download this special report.
Selling the True Value of Lighting
Published in Lighting Design and Application (LD&A), January 2008, by Jeffrey Schwartz of ICF International. Whether proposing a new lighting design, or a lighting upgrade, at some point the client has to be sold on the cost effectiveness of the system. This article explains how to use financial terms and formulas to sell the economical and energy saving value of a lighting project.
Understanding Mercury in CFLs and Lamp Recycling
Published in the January 2008 issue of Lightrays, a publication of the American Lighting Association, by Chris Primous of ICF International. Widespread use of
compact fluorescent lamps
(CFL) in lighting fixtures can save a tremendous amount of our nation’s resources. CFLs use three-quarters less energy than standard incandescent lamps, and if every American replaced just one incandescent lamp with an ENERGY STAR qualified CFL, it would be roughly the equivalent to preventing greenhouse gas emissions of 800,000 cars. However, by design, all CFLs contain trace amounts of mercury, an environmental hazard that can pose health risks upon exposure. This article examines what consumers should understand about the hazard and what steps can be taken to ensure proper disposal and recycling.
2007 Articles
Gourmet Credits: Refining the Swiss Carbon Cheese
Published in Jahresbericht 2007 IWÖ-SHG, Institut für Wirtschaft und Ökologie, Universität St. Gallen, by ICF's Steffen Brunner. This commentary looks at the quality of corporate carbon offsetting programs in Switzerland. Offsetting can bear considerable reputational risk if not done properly, and credibility remains a major concern of the offsetting business and its clients. Credible standards that quantify and verify emission reductions are therefore essential. Bearing in mind the importance of standards, it is startling how little attention many Swiss credit buyers pay to this issue. In fact, only a few of the firms engaged in offsetting disclose information on the specific standards used. Credibility remains the key issue in this growing market, and the Swiss economy has a lot to lose if half-hearted carbon offsetting damages its reputation as a world leader in quality and trustworthiness.
Going Carbon Neutral—Measure, Reduce, Offset
Climate change has become a crucial issue that businesses and other organizations must address to stay competitive. ICF developed this overview outlining the necessary steps to become carbon neutral and how we help clients reduce their carbon footprints. It includes the basics of how to measure a carbon footprint, develop strategies to reduce the footprint, and purchase “offsets” for any remaining emissions. ICF also takes a look at how responsible and ethical engagement in combining these processes will help to ensure a sustainable future.
ICF International GHG Inventory for Global Operations
A robust greenhouse gas inventory—or carbon footprint—provides a baseline for any company to measure against for progress in reducing its climate impact. ICF has conducted a Greenhouse Gas (GHG) inventory for our 2006 global operations, following the guidelines set by the World Resource Institute (WRI)/World Business Council for Sustainable Development (WBCSD) GHG Reporting Protocol, a globally
recognized methodology to conduct emission inventories.
U.S. Emission and Fuel Markets Outlook
ICF International’s U.S. Emission and Fuel Market Outlook 2007 provides a fully integrated view of emission and fuel markets. The study provides market analysis and price projections for all of the key emission and fuel market benchmarks, with individual chapters on CO2, SO2/NOx/mercury, gas and coal. All chapters address the impacts of CO2 policies on the relevant markets. Companies can customize their study by purchasing an individual chapter, multiple chapters, or the entire integrated study. Subscribers receive three bound copies of the report, access to ICF's team of professionals, and a discounted on-site energy market seminar.
The Practical Insight to Gas Pricing in India
Published in the Sep/Oct Issue of Hydrocarbon Asia by Sachin Nagdive and Hitendra Patel of ICF International. India’s thrust for gas is high, and the country is set to double domestic gas supply by mid-2008. As the larger portion of this is expected to be consumed by the key sectors and since government has recently approved the gas pricing formula for this new supply, the affordability of these sectors has become a contentious issue. This article presents some of the scenarios pertaining to the key sector affordability and potential revenue option. The article also highlights the key market issues, governmental policies, and wants of reform related to gas market development and infrastructure requirement.
Understanding High-Performance T8 Systems
Published in Lighting Design and Application (LD&A), August 2007, by Jeffrey Schwartz of ICF International. Once upon a time there were very few options when selecting 32-W T8 lamps. Selection was limited to either 700 series (CRI of 70-plus) or 800 series lamps (CRI of 80-plus). Today, a typical lamp catalog will list more than 30 choices for 4-ft 32-W T8 lamps alone. This article talks about the technology, features, and benefits of High Performance T8 Systems, with an emphasis on energy savings and improved lighting quality.
A Tough Puzzle—Parsing Out the Dramatic Challenges of Today’s Integrated Resource Planning
By Elliot Roseman and Basak Uluca of ICF International, and published in Edison Electric Institute's Electric Perspectives, July/August 2007. Utility Integrated Resource Planning (IRP) and long-term internal planning have been gaining momentum in recent years. IRPs were popular in the 1980s and '90s and fell into disuse in restructured states, as IRPs were generally thought not to be necessary in competitive markets. Today, IRP and longer-term internal utility planning are regaining popularity in both traditional and deregulated states. However, today’s IRPs are more complicated and sophisticated and must take into account a much wider spectrum of issues, including energy efficiency, renewables, transmission planning, regional resources, climate change, and risk. This article discusses the complexities and the differences of today’s IRPs from those in the past, and how utilities can best undertake such necessary planning.
Judging the Quality of a Lighting Project
Published in Today’s Lighting Distributor, July/August 2007, by Jeffrey Schwartz. There is more to lighting than just energy efficiency. The quality of the lighting project is equally important. This article explains energy efficiency and how to measure, evaluate, and communicate the project savings. Lighting quality issues such as uniformity, proper light levels, and glare control also are discussed.
Technology Drives Methane Emissions Down, Profits Up
Published in Oil & Gas Journal, August 13, 2007, by Brian Gillis of ICF International and consultants from the U.S. Environmental Protection Agency, Heath Consultants, TransCanada, and Occidental Oil & Gas. Operators in all oil and gas industry sectors are finding that greenhouse gas emissions management is a new revenue source in the current market environment. This article reports on a range of projects applicable to a diverse set of sites worldwide that convert methane emissions from an environmental responsibility into a company resource. For each project example, the operator realized positive economic results on the project investment. Marginal abatement cost curves relate these individual projects to the remaining potential for such projects in selected countries.
Forecasting Phase-Two Prices—Looking for Reductions in All the Right Places
Published in Point Carbon’s Carbon Market Europe, July 2007, by Alexandre Marty and Etienne Gabel of ICF International. This article considers where the fundamental equilibriums between supply and demand for CO2 emission reductions will lie for the second phase of the European Union (EU) Emissions Trading Scheme, and what can be deduced for EU allocation (EUA) price forecasts over the period 2008-2012. Although views are often shared on the allowances shortfall and on the supply distribution of Kyoto-based credits, there are diverging assessments of the ability for domestic emission reductions, especially from the power sector. ICF analyzes the opportunities for such domestic emission reductions and derive EUA price forecasts using ICF International’s InCaP tool.
Ready for Your NERC Close-Up?
By Jim Stanton of ICF International and published in the June 2007 issue of POWER magazine. This article coincides with the date for mandatory compliance with the North American Electric Reliability Corporation (NERC) Reliability Standards. It touches on the 2003 Blackout as well as the non-monetary, extrinsic risks of non-compliance. It also stresses that the Reliability Standards are not a fixed set but rather an ever evolving collection of standards and requirements that should be constantly monitored for changes.
Captive Power in Gulf Cooperation Council (GCC): The Development of Power Projects in the Middle East
By Kim Keats Martinez of ICF International and published in Commodities Now, June 2007. Power and water requirements in the Middle East are growing quickly. Unfortunately, the utilities' current tender model can make it more difficult for the region to diversify away from hydrocarbons. Unless there is an accepted legal and regulatory framework for selling excess power back to the grid, electricity procurement costs for industrial clients will be higher than they should otherwise be.
Where Have All the Mergers Gone?
By Elliot Roseman and Kimberly Richardson of ICF International, and published in Public Utilities Fortnightly, June 2007. This article investigates the influence of EPACT 2005, and specifically the repeal of the Public Utility Company Holding Act of 1935 (PUHCA) on merger and acquisition (M&A) activity in the U.S. electric utility industry. After a huge flurry of deals in the 1997 to 2002 period, M&A activity was much slower both before and since then. While some thought that previously restricted capital might flood the market once PUHCA was repealed, the article demonstrates that this has not been the case, and discusses the reasons for this lack of activity. These reasons include "bottom-line" financial issues, unclear exit strategies, insufficient hedging potential, and unfamiliar industry or company dynamics, among others. We expect this trend to continue, but also expect that there will continue to be a limited number of large "marquis" deals, small-and-medium size utility consolidations, and financial institution (e.g., equity fund) transactions, partly driven by the huge anticipated need for capital investment.
Cyber Security and the Grid
By Jim Stanton of ICF International and published in the May 2007 issue of POWER magazine. The article introduces the concept of cyber security as applied to the interconnected electric grid. The 2003 Blackout is cited as an example of the damage a widespread service interruption can do. Also discussed is the risk based assessment mandated by the NERC Critical Infrastructure Protection Standards.
Coal Potential: Identifying Emerging Opportunities
Written by Bishal Thapa and Ankur Bansal of ICF International's India office and published in Power Line, April 2007. The article outlines the robust coal demand and investment needs in the coal sector considering the current Indian economic growth. The article examines how coal sector fundamentals relate to the broader energy markets dynamics and influence regulatory changes. The authors unveil prices and the current opportunities in "captive coal" that may hold value even if the regulatory regime stretches further than anticipated.
Prospects for Energy Integration
Published in Himal Southasian, April 2007, by Bishal Thapa, Amit Sharma. and Rashika Gupta of ICF International. ICF International surveys the prospects of energy integration in South Asian countries. The authors argue that new economic realities are reshaping the possibilities for regional energy integration.
Guide to Carbon Procurement Vehicles: Investor's Guide 2007
In preparation for the Kyoto commitment period, the past few years have seen a multitude of new carbon purchasing vehicles launched, offering companies another means of participating in the carbon market. ICF has updated its comprehensive study that enables investors to understand the characteristics of carbon procurement vehicles and make qualified decisions when (a) buying or selling carbon credits to these entities or (b) investing for compliance or voluntary reasons. The study is based on in-depth interviews with carbon funds managers and thorough analysis of publicly available information. Procurement vehicles are analysed in-depth according to evaluation criteria differentiated for investors, buyers, and sellers of carbon credits.
Energy Trends in Selected Manufacturing Sectors:
Opportunities and Challenges for Environmentally Preferable Energy Outcomes
April 2007. ICF International prepared this report for the U.S. Environmental Protection Agency (EPA) Sector Strategies Program within the Office of Policy, Economics, and Innovation. The report on energy use trends in major manufacturing sectors highlights the environmental implications of energy use. The report analyzes 12 manufacturing sectors and illustrates how each sector could improve by becoming more energy efficient or by using clean fuel technologies.
Cyber Security Under the NERC Reliability Standards
By James R. Stanton of ICF International and published in IT Compliance Magazine, Spring 2007. The interconnected nature and electronic control systems of the nation’s high voltage electrical system renders it susceptible to coordinated cyber attacks. Critical infrastructure protection (CIP) requirements are key components in the newly enforceable set of NERC Reliability Standards. Perhaps more than any other set of standards, the CIP group holds the potential to deflect and address the most potentially devastating contingencies on the interconnected systems. Cyber security has a wider meaning in the context of large system disruptions and interrupted service to broad areas of users than the previous concerns about data and file server corruption.
Regional Resource Planning Makes Sense
By Elliot Roseman of ICF International and Sandra Hochstetter, Chair, Arkansas Public Service Commission, and published in EnergyPulse, February 1, 2007. This article identifies the growing trend in integrated resource planning (IRP) among regulated utilities, but goes one step future. With the advent of regional wholesale markets, large regional baseload and renewable generation resources, climate change and other emissions considerations, and regional transmission planning by regional transmission organizations (RTO), the authors argue that "Regional Resource Planning" (RRP) would be a substantial improvement in optimizing the resource mix. Importantly, RRP would not usurp state regulatory authority—rather, it would be sponsored by existing regional regulatory groups and organizations, and would provide regional resource and cost analysis that state regulators could use to better determine what makes sense for their states and the region as a whole. The authors enumerate the key elements of the RRP concept, as well as how to implement the process. Given the huge need for electric industry investment that the United States is facing nationwide over the next 10-20 years, the time has come for an alternative that would optimize investment, achieve synergies, maximize consumer benefit, and augment regional information sharing. The time has come for RRP.
Independent Assessment of Midwest ISO Operational Benefits
Prepared by ICF International, February 2007. The Midwest Independent System Operator (ISO) engaged ICF to estimate potential and actual economic benefits of its market operations for the period June 2005 through August 2006. On April 1, 2005, the Midwest ISO began operation of Midwest Markets—an hourly locational marginal price (LMP) energy market that includes centralized unit commitment and dispatch, a day-ahead energy market, a real-time energy market, and a financial transmission rights market. Detailed study results were released in February 2007, followed by an addendum in May 2007. The report reveals an upward trend in the percentage of potential benefits that were actually achieved, suggesting improvements in operation of the markets following market start-up. Findings indicate that a subset of benefits provided by a large RTO such as the Midwest ISO brought US$58 million in tangible financial benefits—or an annualized figure of almost $70 million—to market participants during a 10-month study period.
The Compliance Clock is Ticking
By Jim Stanton of ICF International and published in the February 2007 issue of POWER magazine. The article discusses the nature of sanctions and penalties assessed against violators of the NERC Reliability Standards. Also mentioned is the non-monetary sanctions that can be applied as well.
Mandatory Standards Advance
By Jim Stanton of ICF International and published in the January 2007 issue of POWERmagazine. Users of the Bulk Electric Power System in the United States and parts of Canada will soon be required to comply with enforceable reliability standards from the Federal Energy Regulatory Commission (FERC). These standards apply to generator owners and operators, transmission providers, load serving entities, and power marketers. Measures of compliance with these standards bring increased attention to the operational skills of the users of the system, along with financial penalties and public disclosure for violators.
Public Transportation and Petroleum Savings in the U.S.:
Reducing Dependence on Oil
January 2007. ICF International study analyzes the amount of petroleum saved by the use of public transportation systems in the United States. The analysis reveals that public transportation currently saves 1.4 billion gallons of gasoline annually. The study further examines actual savings in household budgets attributable to public transportation use and included factors that influence travel such as income, household size, neighborhood density, and the number of workers in the household. It concludes that public transportation use correlates with 16 fewer miles driven per day, per household. This amounts to an estimated $1,400 per year in annual fuel costs. Two-worker households in which one worker uses public transportation have the opportunity to save substantially more if they have only one car. These families can save an estimated $6,200 per year, accounting for both public transportation use and vehicle ownership.
Water Markets Perspective: Privatisation and Regulation of China’s Water Sector
China is currently the most active emerging market for public-private partnerships in the water sector. However, the government faces a familiar tension between ensuring sufficient capital investment to improve service quality and keeping tariffs for consumers affordable. In China, distinctive contract models and characteristics of the institutional environment pose particular challenges for establishing a sound regulatory regime. The existing system is complicated by the overlapping layers of rules issued by different government bodies and by limited transparency in processes for regulatory decision making. In this January 2007 Water Markets Perspective, Olivia Jensen of ICF International discusses how China can draw on regulatory theory and international experience to develop economic regulations for its water sector.
Water Markets—Regulation Matters (January 2007)
Regulation Matters is the regular digest of water markets news and views from the London office of ICF International. It provides coverage of topical issues in water markets and the latest ICF International insights and perspectives into regulatory developments.
2006 Articles
Trading Around the Caps
Published in Environmental Finance, November 2006, by Natalia Gorina and Alexandre Marty of ICF International. First appeared in a supplement to the November 2006 issues of Environmental Finance and Carbon Finance. This article describes the dynamics between the EU Emissions Trading Scheme (EU ETS) and Kyoto credits from the Clean Development Mechanism (CDM) and Joint Implementation (JI). It highlights the interactions between demand for Kyoto credits from EU ETS participants, volume of credits actually available to be imported into the EU ETS, and caps set at Member State level on use of such credits. Beyond the apparent complexity of overall caps and the limitations they create, the article points out opportunities and ways for EU ETS participants reaching their "credit limit" to turn around the constraint by "swapping" credits for EU Allowances from less constrained entities. This option will likely trigger significant market activity and provide incentives for market intermediaries to design creative—and rewarding—compliance solutions for EU ETS participants.
Recent Blackouts Support the Need for Increased European Coordination
ICF International reviews the causes and effects of the Norwegian Pearl incident on November 4, 2006, that resulted in a blackout that cascaded across European borders. If the consequences of a small disruption in one jurisdiction can travel the length and breadth of Europe, at issue is whether Europe should establish a single supervisory authority for the entire European grid. ICF International recommends consideration of the costs and benefits of a Regional Transmission Organization (RTO) covering the whole of Europe. A carefully-designed RTO is one potential solution to blackouts and other significant problems plaguing the European electric sector.
Using
Water Markets to Mitigate Drought Impacts: Learning from
Australian Farmers in the Murray Darling Basin
Despite clear hardships that the irrigation community faces, the ability and
willingness to trade the limited water supplies available means irrigators
are better able than ever to cope with drought-related challenges. Essentially,
the real value of water trade for the economy is to provide the flexibility
to allow the production of water-based produce to contract in response to drought
in an economically efficient manner. In the October 2006 Water Markets
Perspective, James Bentley of ICF International discusses how to use current
water markets to mitigate drought impacts, using Australia’s Murray Darling
Basin as a prime example.
The Indian Coal Sector: A Tale of Promise and Problem
Written by Bishal Thapa and Sandeep Kumar of ICF International's India office and published in World Coal, September 2006. ICF surveys the Indian coal sector in the midst of India's economic growth and in the context of Indian’s growing energy demand. The potential and current limitations, particularly around the slow pace of reforms, are discussed. The authors argue that coal in India remains the dominant energy source, but the slow pace of reforms is hurting India’s ability to develop alternate energy strategies.
EPACT:
Show Me the Money!
Published in Project Finance
International, August 2006, by Elliot Roseman of ICF International.
The article evaluates the accomplishments, as well as the shortfalls, of the
2005 U.S. Energy Policy Act one year after its passage. Hailed by some to be
a long-awaited energy panacea, EPACT is packed with direct grants, loan guarantees,
and other incentives. The article compares the authorized funds with the actual
program appropriations for fiscal year 2007.
Fly
Ash Use and Greenhouse Gas Benefits
Published in Coal
People Magazine, August 2006, by Victoria Thompson of ICF International,
and Henry Ferland and John Sager of U.S. Environmental Protection Agency. This
article examines the greenhouse gas (GHG) reduction benefits of using fly ash,
a byproduct of coal combustion, as a replacement for Portland cement in concrete
production. In particular, it looks at recent innovative U.S. commodity contracts,
which discuss the possible future allocation of carbon credits associated with
the fly ash being sold. Although no carbon price is currently associated with
fly ash use, the contracts recognize that this may become the case in the future
and want to settle the issue of ownership of credits.
California's
Greenhouse Gas Legislation:
California Global Warming
Solutions Act of 2006
Within the United States, California has repeatedly been at the vanguard of
environmental and energy programs. With the recent passage of the "Global
Warming Solutions Act of 2006," many expect that the state will once again
lead the way for the United States by designing and experimenting with a comprehensive
program to reduce greenhouse gas (GHG) emissions. In this white paper, Michael
Gibbs of ICF International's Los Angeles
office summarizes the act's provisions and comments on some of its implications.
High Density Housing, Mega-Developments: An Assessment of Arizona and Nevada Comparing Central Power to a Distributed Energy Approach
With the populations of Arizona and Nevada projected to more than double from 2000-2035—triple the national growth rate—large “megadevelopment” projects are being considered to meet the demand for housing. Current standard approaches to utility and regional planning may be inadequate to deal with infrastructure changes and the impact on energy supplies, water resources, and the environment. This July 2006 study, prepared for Oak Ridge National Laboratory by EEA, an ICF International Company, analyzes the expected energy and infrastructure requirements and considers distributed energy resource (DER) strategies as a solution, including gas-powered heat pump (GHP) and combined heat and power (CHP), to meet needs for base-load electricity and heating more efficiently and with lower capital cost and water consumption than would be required with conventional central power stations.
The
Kyoto Protocol and Its Market Mechanisms: Evaluating
Their Contribution to Cleaner Energy
Published in the AccountAbility
Forum, "Energy & Accountability" (No. 9, 2006), June
2006, Greenleaf
Publishing. AccountAbility is an international organization that works
to promote accountability for sustainable development. This article by Abyd
Karmali of ICF International explores how well the Kyoto Protocol's market
mechanisms have succeeded in stimulating greenhouse gas emission reductions
in developing countries through carbon credits and whether the price signal
provided by the rapidly maturing carbon market is strong enough to encourage
rapid evolution toward lower carbon technologies in the global energy sector.
Rebuilding
After the Gulf Coast Hurricane: Sustainable Communities
Using Energy Efficiency
In 2005, a Category 4 hurricane made landfall near Buras, Louisiana, bringing
145 mph winds, inundating New Orleans, and leaving a path of destruction the
size of the United Kingdom. Within hours, a city dubbed "the Big Easy" was
awash in tragedy. As a result, more than 300,000 new single family homes will
need to be built in Alabama, Louisiana, and Mississippi in the coming months.
Six of those homes are being piloted in Pass Christian, Mississippi. This paper
analyzes the incremental costs and payback periods to upgrade these new homes
to be energy efficient.
Challenges
to Investing in Water
Evidence has shown that private sector involvement is not necessarily the key
to unlocking barriers to efficiency and profitability in the water sector. Water
investments face their own challenges due to the very nature of the product,
which can impact the financial success or failure of the investment. In this
July 2006 Water Markets Perspective, Ceema Namazie of ICF
International discusses the challenges faced by investors in the water sector,
and how these factors affect the overall commercial viability of these opportunities—whatever
the type of investor.
Paths
to Power: The U.S. Electricity Grid
July 28, 2006 - ICF International's Judah Rose, senior vice president and electric
transmission expert, was interviewed on Living on Earth,
a weekly environmental news and information program distributed by National Public
Radio (NPR). Rose discussed the U.S. power grid—the largest power grid
in the world—and how growth, deregulation, and under-investment in the
grid are leading to unreliability and power outages across the country as demand
for electricity exceeds the limits of the current system.
Interview with ICF International Energy Expert Regarding
Power Crisis in New York, St. Louis, and California
July 25, 2006 - Watch the MSNBC The
Most with Alison Stewart television interview with Judah Rose, senior vice president
and electric
transmission expert, regarding the causes of
disruptions in the power grid brought on by extreme summer
weather conditions. ICF International says that timely investments
to upgrade aging power plants and transmission lines are
necessary to mitigate against continued power outages and
the threat of terror attacks. Note:
To launch the interview, you will need the latest version
of Windows Media Player.
Cooling
Down Hot Air
Published in Environmental
Finance, May 2006, by Natalia Gorina of ICF International. This article
considers how Russia and Ukraine could monetize their massive surpluses of
Kyoto Protocol Assigned Amount Units (AAU). Surplus AAUs are quantified and
their impact on the price of carbon is evaluated using ICF
International's InCaP tool. Then, the benefits and current barriers for
implementation of Green Investment Schemes in Russia and Ukraine are analyzed,
as well as the option of converting some surplus AAUs into Joint Implementation
Track 1 Emission Reduction Units.
Drought
Floods
Water Market with Opportunity
Opportunity is not a word many of the 13 million
water customers facing water restrictions would associate
with England’s worst drought in 100 years. However,
the current drought highlights more than ever the true value
of this essential resource and the need for new thinking
on how water can be used and managed more wisely. In this
May 2006 Water Markets Perspective,
Scott Reid of ICF International identifies four practical
market-oriented opportunities for encouraging water smart
decision-making.
Economic
Valuation and Public Goods
Water utilities operate for the public good, supplying essential services and
protecting public health and our environment. In the context of England and
Wales, the delivery of this public good has been in the hands of privately
owned businesses, and regulators increasingly see tools like cost-benefit analysis
as a way to align the interests of private sector businesses with the delivery
of this public good. Recent work in the area of economic valuation also is
suggesting that these public good characteristics may matter when it comes
to measuring the economic value of improving the provision of water services.
In this new Water Markets Perspective, Scott Reid of ICF International explores
the practical relevance of this recent work to the increasing use of cost benefit
analysis to guide investment planning by water utilities. In particular, he
investigates whether it is appropriate to ask what customers are willing to
pay for service improvements or instead, what customers are prepared to accept
by way of compensation for foregoing a service improvement.
Tax
Deductions for Lighting Upgrades: The Energy Policy Act
of 2005
Published in Today's Lighting Distributor, the official magazine of
the National Association of Independent Lighting Distributors, March/April
2006, by Jeffrey Schwartz of ICF International. This article explains the tax
deductions for energy-efficient lighting contained in the 2005
Energy Policy Act (EPAct). The article includes information on specific
EPAct criteria and how the tax deductions can be used to help offset initial
costs and motivate end-users to make lighting upgrades to their facilities.
Everything is Illuminated
Published in Natural Home and Garden, January/February 2006, by Paul
Vrabel of ICF International, this article presents today's options for energy efficient
lighting in the home. The article includes information on stylistic energy saving
fixtures that are readily available in the market and the future of energy efficient
lighting. Specifically, the article presents an overview of ENERGY STAR qualified
fixtures that will save energy and meet consumers' performance and aesthetic
needs. The article also presents that facts about the use of Light Emitting Diodes
(LED) for the home, and where this technology is going to improve our world.
2005 Articles
Role of Distributed Generation in Power Quality and Reliability
The December 2005 report by EEA, an ICF International Company, explores the power quality sensitivity of the power market in New York and examines the value of integrating distributed generation into an overall customer power quality and reliability solution. The basic premise for this study is that distributed generation can be used to support customer's power quality and reliability needs and, by so doing, the value of distributed generation is increased.
Cost-Benefit
Study of the Proposed GridFlorida RTO
Written by Kojo Ofori-Atta, Judah Rose, Chris McCarthy, Himali Parmar, Ken
Collison, Shanthi Muthiah, and Elliot Roseman of ICF International, December 12,
2005. This study prepared for GridFlorida
LLC examines the benefits and costs
to peninsular Florida consumers of a GridFlorida Regional Transmission Organization
(RTO) under two possible centralized modes of operation: a Day-1 RTO and a
Day-2 RTO. The overall outcome of net benefits to peninsular Florida consumers
depends on both quantitative and qualitative aspects of the RTO structure and
start-up costs. The combined benefits of a "Greenfield" Day-1
RTO with all new systems and physical facilities are not nearly as large as
the costs. In the case of a Day-2 RTO, although the quantified benefits were
almost US$1 billion, the cost of a Greenfield Day-2 RTO was approximately 28
percent higher. Thus if the qualitative Day-2 RTO benefits are worth approximately
US$285 million, then the proposed GridFlorida RTO could break even.
Beyond Energy Efficiency
Published in Today’s Lighting Distributor, November/December
2005, by Jeffrey Schwartz of ICF International. The article
explains how businesses can reduce energy costs by upgrading
lighting systems to more energy-efficient technology, providing
a quick payback on their investment. To assure that end users
are provided with quality lighting solutions, lighting practitioners
must evaluate other important lighting criteria and follow
the guidelines of good lighting design.
Leading the Charge
Published in Progressive Grocer's October 2005 issue
by Peter Flippen of ICF International, the article highlights
the launch of an initiative developed by the U.S. Environmental
Protection Agency (EPA) ENERGY STAR program in partnership
with top energy information services companies. The initiative
allows energy information providers to send their client's
energy consumption data for buildings via the Internet to
the EPA. In return, the EPA analyzes the data and produces
a building energy performance rating on a 1-100 scale with
50 being the national average. The article describes the
early adoption of this unique benchmarking service by two
leading companies, Avista Advantage and Cadence Network,
on behalf of their clients, Food Lion and SuperValu. ICF International is the lead contractor to EPA for ENERGY STAR.
The Energy Policy Act of 2005: Striking the Right Federal-State
Balance
Published in World-Generation,
September/October 2005, by Elliot Roseman of ICF International.
This article addresses the balance of responsibility and
authority between the U.S. federal and state energy regulators,
and how that balance is changing as a result of the Energy
Policy Act of 2005. In particular, the article cites five
examples: electric transmission "backstop
authority";
LNG siting; system reliability; grid monitoring; and financial
incentives, and demonstrates that the federal government
is charged with a notably larger role under this legislation.
Maintenance Strategy Yields Big Savings
Published in H&MM (Hotel and Motel Management),
September 19, 2005, by Bruce Appelbaum of ICF International
and Stuart Brodsky of U.S. Environmental Protection Agency.
Simple maintenance strategies that can achieve significant
improvements in hotel and motel energy efficiency are described.
Focusing on good maintenance practices can yield energy savings
of more than 20 percent, often with little or no capital
expenditure.
Transmission Turns the Corner
Published in EEI
Electric Perspectives, September/October
2005, by Elliot Roseman of ICF International. Transmission has
been a stepchild of the power industry—until recently.
There now appears to be sufficient political, economic, and
regulatory forces in play; sufficient recent investment activity;
and sufficient dynamism in the market to make it likely that
adequate transmission facilities will be developed going
forward. Factors such as integrated resource planning (IRP),
regional transmission organizations (RTO), renewable energy,
and baseload energy development will all encourage transmission,
and there are six different models of transmission development
that are active in the market. The recently-passed Energy
Policy Act gives a further
push to grid expansion. Gaining approval to site transmission
is far from easy, but nevertheless, it appears that transmission
has turned the corner.
Rebuilding
After Hurricane Katrina: Smart Energy Choices
October 25,
2005 - ICF International's issue paper suggests energy efficiency
thresholds for reconstructing thousands of homes in the Gulf
Coast region damaged by Hurricane Katrina. After modeling
different levels of energy efficiency using DOE-2 software,
ICF International compared the impacts of a mass reconstruction
built to minimum building codes versus four increasingly
more energy-efficient standards, finding that an initial
investment of US$900 million to efficiently rebuild the
destroyed homes in the states of Louisiana, Mississippi,
and Alabama would have a payback of just 7.5 years—much
less than the term of a typical mortgage.
Petroleum
Refineries: Will Record Profits Spur Investment in New
Capacity?
Testimony before the House Government Reform Committee, Subcommittee on Energy
and Resources, U.S. House of Representatives, October 19, 2005. At the request
of the Committee, ICF International provided testimony on the outlook
for global refinery capacity investment, and the impact
of refining investment on U.S. imports over the next five
years. ICF International's analysis indicates that the global
refinery spare capacity will remain very tight over the period,
barring a significant abatement of global oil demand growth.
The testimony discusses this outlook and the impact on U.S.
product imports, and provides several recommendations for
legislative actions which would moderate the tight supply
balance outlook.
Demand Management: A Real Option?
Real options is providing new ways of incorporating uncertainty
into the appraisal of investment opportunities. In this
new Water Markets Perspective, Scott Reid of ICF International
explores the use of real options in water resource planning.
With this approach the benefits of demand management and
water conservation measures can be viewed in a new light.
Does Size Matter? Investigating Economies of Scale in the
Water Industry
The worldwide drive to improve the efficiency of delivering
water and wastewater services is focusing attention on the
most appropriate size for water utilities. In this new Water
Markets Perspective, Scott Reid of ICF International reports
the findings of a recent study of water industry structure
in England and Wales. The article considers the potential
implications of the study for future mergers in the UK water
sector.
Water
Markets: Regulation Matters, October 2005
Regulation Matters is the regular digest
of water markets news and views from the London office
of ICF International. It provides coverage of topical issues
in water markets and
the latest ICF International insights and perspectives into
regulatory developments.
U.S. Energy Policy Act Issue Papers
ICF International developed a series of issue papers
for energy market participants and the regulatory community
to provide perspective on the impacts of the Energy Act.
The
Impacts of Public Utility Holding Company Act (PUHCA)
Repeal
The repeal of PUHCA in the Energy
Act will facilitate mergers and acquisitions
(M&A) in the electric
utility industry. More companies will soon propose to combine
with other utilities, in addition to three such proposals
currently under consideration. Strong European companies
and nontraditional investors may use this opportunity to
purchase or co-invest in U.S. utilities. The U.S. Security
and Exchange Commission's (SEC)
traditional role in reviewing such proposals is gone, as
is the requirement for utility combinations to be contiguous
or interconnected. However, M&A approval or success is
not assured, as state approval for M&A will still be
required, and both the states and the U.S. Federal Energy
Regulatory Commission (FERC) are granted additional authority
to review utilities’ books
and records to ensure financial integrity and nonabuse of
market power. How that authority is implemented will be critical.
Development
of Petroleum Resources
Whether there will
be more refineries and domestic oil production depends
on industry’s response to the Energy Act’s
incentives. In addition to financial incentives, the Act
requires an inventory of offshore resources, which signals
the starting point for future offshore oil and gas leasing,
exploration and production in areas currently off limits
to leasing and drilling. The Act also enhances the ability
to site new offshore pipelines in the Gulf region. ICF International
projects that the United States will become substantially
more dependent on the import of petroleum products in the
coming decades—with
imports more than doubling.
Energy
Project Siting and Infrastructure Development
Major energy facilities will be easier to site.
The Energy Act encourages the siting and development of energy
facilities and resources by providing financial incentives
and granting new authority to the U.S. Federal Government.
In light of these incentives and the current level of oil and
gas prices, efforts are likely to accelerate to find and produce
marginal domestic resources. Federal authority for liquefied
natural gas (LNG) siting could be a key factor in encouraging
such projects. Those with pending LNG and oil and gas opportunities
should maximize the development and production of resources
that qualify for the new investment incentives.
The
Impacts on Nuclear Power
Nuclear energy is encouraged
in the Energy Act. Tax credits and loan guarantees are provided
for thousands of megawatts and could substantially lower the
cost of those plants to consumers. Provisions for nuclear energy
research and development demonstrate a renewed commitment from
the U.S. Federal Government to next-generation facilities.
Public opposition will inevitably accompany any proposal to
build new nuclear facilities, but those concerns will be handled
through the Nuclear Regulatory Commission's (NRC) streamlined
licensing process. As with all power plants—especially
nuclear ones—security issues will loom large.
Provisions
for Electric Transmission
Transmission receives
a strong push in the Energy Act. The Act allows the U.S. Department
of Energy (DOE) to designate transmission corridors of 'national
interest' to
upgrade or add transmission for reliability or economic purposes.
The "economic" aspect
of this authority will be controversial. If states do not
act, FERC could then require the development of transmission
in those corridors. This authority will also make it harder
for public interest and environmental groups to delay the
approval of power lines. The Act also promotes transmission
by requiring the setting of common nationwide standards for
electric reliability, the setting of incentive rates for
transmission, and the creation of a national organization
that will monitor the status of the grid. All these measures
imply a shift of authority from the states either to the
federal government or in the case of siting, to multi-state
compacts.
The
Impacts on Renewable Energy
Renewables are strongly
encouraged, and there is a window of opportunity to pursue
them. The Act provides for substantial production tax credits
(1.8 cents per kWh) for many renewable energy options for nine
years, if they are on-line by the end of 2007. On the other
hand, the Act does not provide for a national renewable portfolio
standard (RPS)—which
would have had significant impacts, particularly on the development
of new wind projects.
The
Impacts on Energy Efficiency
Energy efficiency
(EE) is given a strong push. The EE provisions in the Energy
Act will establish new efficiency standards
for a wide range of appliances. It also will make it easier
for the U.S. Federal Government to run voluntary EE programs.
Hybrid vehicle tax credits will enhance awareness of and interest
in hybrid vehicles. New home builder tax credits will enhance
a builder's
ability to manufacture more efficient homes. Appliance manuf |
