The Biden Administration got the trillion-dollar infrastructure deal passed in November, which earmarks money for energy efficiency and clean energy projects. Getting less publicity, the Administration also outlined how the US will reach net zero GHG emissions by 2050 by releasing a strategic plan and launching the President’s Emergency Plan for Adaptation and Resilience (PREPARE) See: https://www.whitehouse.gov/wp-content/uploads/2021/10/US-Long-Term-Strategy.pdf and https://www.whitehouse.gov/wp-content/uploads/2021/10/Full-PREPARE-Plan.pdf.

According to the plans, the US’s goal is to reach 100% clean energy by 2035 and net zero by 2050 by prioritizing clean fuels like hydrogen and biofuels, cutting energy waste, reducing methane and non-carbon emissions and encourage carbon removal.

The Plans call for billions of dollars of annual federal funding for development of clean fuels and batteries (including charging infrastructure). In doing so, the federal govern-ment wants to make clean sources of energy cheap and the financially beneficial choice of companies and municipalities over fossil fuels and to foster the industries so that firms can buy equipment made in the USA, resulting in US economic growth and jobs.

The report projects that electricity could provide up to 42% of the country’s electricity by 2035. To ensure electricity generation is clean, the US DOE will encourage development of solar and wind power, stating that solar could provide up to half of the nation’s electricity by 2050.

The current Build Back Better rule budgets $555 billion toward climate change and clean energy initiatives, including investments in the manufacturing of “green” steel and cement. It also wants to nurture the development of wind and solar sources in the US.

CCES has the experts to help you assess the technical and financial benefits of a variety of clean energy options for your facility or firm to save you energy costs and have reliable sources of energy. Contact us today at 914-584-6720 or at karell@CCESworld.com.

COP26, the international climate change summit in Glasgow, Scotland is over. There was much political maneuvering over clean energy, energy efficiency, and CO₂ emissions. However, Climate Change is more than CO₂ emissions and CO₂ sinks. President Joe Biden announced several new policies with the goal of reducing US emissions of methane, a greenhouse gas that – depending on the averaging time – is 21 to 86 times more potent than CO₂. Methane accounts for only 16% of global GHG emissions but is responsible for almost one-third of human-caused warming.

On November 2, the US EPA proposed new NSPS standards to reduce methane emissions from the oil & gas industry (https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry/epa-proposes-new-source-performance), aiming to cut their methane emissions to one-quarter of 2005 levels by the end of this decade. Here is background information about the rule.  https://www.whitehouse.gov/briefing-room/statements-releases/2021/11/02/fact-sheet-president-biden-tackles-methane-emissions-spurs-innovations-and-supports-sustainable-agriculture-to-build-a-clean-energy-economy-and-create-jobs/

The new methane rule is groundbreaking because, if approved, it will apply to hundreds of thousands of previously unregulated emission sources, like isolated wells, storage tanks, and compressor stations. This rule is different from most other US EPA rules of its over five decades of existence because this rule would apply to existing and new sources alike. Historically, the vast majority of federal rules regulated only new facilities, while grandfathering existing ones from new emission limits. This is different.

Back when the US EPA was formed and began passing regulations, grandfathering was acceptable as a compromise between environmentalists and industries regulated. Companies did not have to upgrade huge numbers of equipment at once, while the thought was that in time, old equipment will age and be replaced by modern, lower-emitting units. However, being exempt from stringent emission limits gave companies the incentive to keep old, dirty equipment in place, even in some cases, past their useful lives. As a result, grandfathering not only discouraged US industry from modernizing, but also kept emission rates artificially high for some time impacting Clean Air Act goals.

Removing grandfathering is particularly important in the oil & gas industry as oil and gas wells continue to emit pollutants after they stop operating. Requiring old wells to meet new, stringent limits will reduce pollution many years and decades in the future.

In addition, the US EPA just approved a new rule reducing total HFC emissions, involving credits. HFCs, a class of refrigerants, are tens of thousand to hundreds of thousands of times more potent for global warming than CO₂. We will have an article about the new rule and its implications next month.

CCES has the experts to help you understand and comply with GHG emission limits and regulations, for CO₂, for methane, and for other compounds. We can do so without impacting operations and in an economically-beneficial way. Contact us today for more information at karell@CCESworld.com or at 914-584-6720.

Many clients I come across want to implement a smart energy efficiency project. They understand they have excellent ROIs, will reduce O&M costs, raise asset values, and improve comfort. So why isn’t everybody implementing every potential energy efficiency project? Most good energy efficiency projects require a large upfront investment, which many building owners do not have available.

Therefore, building owners can borrow funds to implement a good energy efficiency project. Most energy efficiency projects are so profitable to make up for interest payments, based on current conditions.

Here are ways to make an energy efficiency upgrade easier on the pocketbook.

Lease, Don’t Buy Equipment.  Just like it is common practice to lease a copier for the office, a building owner can lease new equipment. Lease payments become a standard operating expense. At the end of the lease term, the lessee may purchase the equipment, return it, or renew the lease. The building owner keeps more cash on hand for other business needs and preserves their corporate line of credit. A capital lease is a lease where while the building owner is a lessee, it may take advantage of any tax and depreciation benefits that the equipment may have. The equipment is listed as a capital asset while the lease payments would be recorded as a liability. At the end of the lease, the equipment transfers ownership to the building owner for a nominal price, usually $1.

Financing Equipment.  A finance agreement is similar to a capital lease in length of loan term and in lending to the credit of the building owner. However, a major difference is that the building owner gets credit for owning the equipment outright, is not considered a lessee, and gets all of the tax and depreciation benefits of the equipment.

A good financing program is structured such that monthly payments are lower than the estimated energy savings. In other words, a net positive. The building owner gets the benefits of energy savings while making payments over time without the need to dip into capital reserves to fund this project. The building owner’s net is not worse than if they did not implement the project. The building owner can preserve its cash and credit for other operations while getting the financial benefits. This differs from many projects which have no or a poor payback; the owner must spend money and not necessarily get a payback. Here, the project is net positive and allows the owner to look into additional energy efficiency projects.

With interest at record lows, this is a time when borrowing to successfully implement a good energy efficiency project may makes sense. Given the good payback of many energy efficiency projects and, therefore, the presence of capital to pay back a loan, institutions like making loans for energy efficiency projects. Therefore, there is competition to lend for a good energy efficiency project, reducing interest rates and other costs. Now is the time to move forward and upgrade equipment smartly for energy efficiency, knowing of the availability to easily borrow in order to succeed.

Please speak to a financial professional (i.e., an accountant) when seriously considering a lease or financing program. CCES has the experts to help assess the viability and payback of energy efficiency projects to allow you to select which ones to implement and how best to pay for them. Contact us today at 914-584-6720 or at karell@CCESworld.com.

There’s little that is more relaxing than snuggling up by a fireplace. But as cozy as it makes your house feel, a fireplace can also be very dangerous if precautions are not taken. Fireplaces combust wood in a non-professional and very inefficient manner, compared to a boiler or generator. Therefore, there is the risk of embers and sparks causing fires or excess heat, carbon, and particulates damaging the fireplace, nearby walls, and the chimney. In addition, combustion in fireplaces – with no temperature or air controls – potentially causes very high emissions of products of incomplete combustion, such as particulates, VOCs, and CO.

It’s important to properly take care of your fireplace and chimney to prevent unwanted fire hazards. Perform these maintenance tips for your safety:

• Ensure that smoke and carbon monoxide detectors are installed throughout your home and batteries are changed regularly.
• Have your chimney regularly cleaned to reduce buildup of creosote (condensed carbon and particulate compounds), which can restrict air flow into the fireplace, affecting combustion quality, and is itself a fire hazard within the chimney.
• Have a flue liner in place to reduce the possibility of creosote buildup and replace damaged liners to allow heat to escape properly.
• Keep the fireplace clear of debris and flammable items.
• Start fires slowly and safely. Never burn charcoal or use lighter fluids to start a fire in your fireplace (or anywhere else inside your home).
• Don’t overload the fire. Putting more wood or other items than necessary into the fire can overheat your chimney, walls and roof.
• Kids want to see Santa Claus, but keep them away from the fireplace, even when not on. Install a gate around the fireplace to prevent kids from getting too close.
• Always be sure the fire is completely put out before leaving the room.

Be aware that even with proper safety precautions, fires can take place. Be sure to map out escape routes if fires break out near or around your fireplace.

CCES has the experts to help with the combustion of your professional equipment (boilers, engine generators, etc.). Contact us today at 914-584-6720 or at karell@CCESworld.com.