RGGI Auction Sells 19.7 Million CO2 Allowances at $1.93

Auction Generates $38.1 Million for Regional Clean Energy Economy

The nine Northeastern and Mid-Atlantic states participating in the Regional Greenhouse Gas Initiative (RGGI), the nation’s first market-based regulatory program to reduce greenhouse gas emissions, today announced the results of their 18^th auction of carbon dioxide (CO₂) allowances.

19,774,000 CO₂ allowances were sold at the auction, held Wednesday, December 5^th, generating $38.1 million for reinvestment by the RGGI states in a variety of consumer benefit initiatives, including investments in energy efficiency, clean and renewable energy, direct bill assistance, and greenhouse gas abatement and climate change adaptation.

Bids for the CO₂ allowances ranged from $1.93 to $5.14 per allowance, with a clearing price of $1.93. Allowances sold represent 53 percent of the 37,563,083 allowances offered for sale by the nine states.

According to the independent market monitor’s report, electricity generators and their corporate affiliates have won 88 percent of CO₂ allowances sold in RGGI auctions since 2008. Additional details are available in the Market Monitor Report for Auction 18,

The Regional Investment of RGGI CO₂ Allowance Proceeds, 2011 report found from 2009 to 2011, RGGI investments:

• Channeled over $617 million into the region’s clean energy economy.
• Returned $69 million in bill credits to an estimated 84,000 low-income families.
• Generated an estimated $1.3 billion in lifetime energy bill savings for utility customers.
• Offset more than 27 million megawatt hours of electricity generation and 26.7 million BTUs of energy generation over the lifetime of investments.

The RGGI states are currently conducting a comprehensive program review to ensure RGGI’s continued success. (RGGI)

The next RGGI auction is scheduled for March 13, 2013.

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A123 Faces Auction

A123 Systems, a bankrupt lithium ion battery manufacturer that received $133 million in federal stimulus grants, goes on the auction block today.  A123 Systems, founded in 2001 and headquartered in Waltham, Mass, sells lithium ion batteries for electric cars and for utilities that use them as backup, community or renewable-energy storage. On Oct. 16, A123 filed for bankruptcy. 

American Recovery and Reinvestment Act funds were not used to develop intellectual property, but to support the construction of a battery manufacturing facility in Michigan. The Energy Department is working through the bankruptcy process to ensure that any assets sold in bankruptcy that were acquired by A123 using Recovery Act funds are used to facilitate the manufacture of lithium ion batteries at locations in Michigan.

The Energy Department approved a $249.1 million grant for the battery-maker but never delivered the final $115.8 million. Some people familiar with the company say the uproar over a loan guarantee to Solyndra, a solar-panel-maker that went bankrupt in late summer 2011, made the administration wary of putting more money into an ailing firm.

The auction is being held in a Chicago law firm with teams of lawyers and investment bankers in nearby rooms assessing bids and deciding whether to match them. The winner must then seek approval from the bankruptcy judge on Tuesday. The two leading bidders are expected to be Wanxiang America, the U.S. subsidiary of a large Chinese automotive parts group, and Johnson Controls. (Wash Post, 12/5/2012)

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EPA/DOE Fuel Economy Guide For 2013 Models

The U.S. Environmental Protection Agency (EPA) and the Department of Energy (DOE) are releasing the 2013 Fuel Economy Guide, giving consumers clear and easy-to-read information to help them choose the most fuel efficient and low greenhouse gas emitting vehicles that meet their needs. The 2013 models include efficient and low-emission vehicles in a variety of classes and sizes, but notable this year is the growing availability of hybrids and the increasing number of electric vehicles.

This year’s guide gives consumers a broad range of information that they can use to select their next fuel efficient vehicle, whether they want to consider an electric vehicle or one that uses a more conventional fuel. This year, for the first time, EPA and DOE have added a second top ten list of most efficient vehicles -- separating advanced technology vehicles from conventional gasoline and diesel vehicles. Electric and plug-in hybrid electric models are the most fuel-efficient and lowest-emission vehicles available today and are becoming more common. At the same time, consumers may still look up the conventional gasoline and diesel models that offer superior fuel efficiency.

The 2013 guide provides an estimated annual fuel cost for each vehicle. The estimate is calculated based on the vehicle’s miles per gallon (mpg) rating and national estimates for annual mileage and fuel prices. The online version of the guide allows consumers to enter their local gasoline prices and typical driving habits to receive a personalized fuel cost estimate. The 2013 guide also includes a greenhouse gas rating for each model.

Consumers may view the guide at fueleconomy.gov and it will be available in hard copy at dealer showrooms. EPA and DOE will update the guide online as more 2013 vehicles become available.

All 2013 model year vehicles will display a new fuel economy and environment label to provide consumers with more comprehensive fuel efficiency information, including five-year fuel costs or savings compared to the average new vehicle, as well as new ratings for greenhouse gas and smog. These labels are required for model year 2013, but some automakers voluntarily adopted the new label design on some 2012 models.

More information, including a complete version of the guide and details on the fuel economy labels:  and for mobile devices.

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California Cap & Trade Program Nov Allowance Auction

As part of the cap-and-trade program, the Air Resources Board (ARB) held its first auction of greenhouse gas allowances (GHG) on November 14, 2012.  The auction included a Current Auction of 2013 vintage allowances and Advance Auction of 2015 vintage allowances.  The California Air Resources Board will make available additional Auction 1 summary statistics. The report will be published on the ARB website at 10:00 am Pacific Time on Thursday, December 6, 2012.

The notice will be posted on ARB’s website. If you have any questions on the auction results, please contact the ARB Public Information Office at (916) 322-2990.

Information on the California Cap-and-Trade Program.

The auction auctions and reserve sales are to allow market participants to acquire allowances directly from ARB.  ARB plans to conduct the first quarterly reserve sale on March 8, 2013. Auction participants will have to apply to participate in an auction, or submit a bid for reserve sales, and meet financial regulatory requirements in order to participate in an auction or reserve sale.

The November 2012 auction was conducted from 10:00 AM Pacific Time (PT) until 1:00 PM PT on November 14, 2012. Provided below are the results of the auction. For more detail on the results, please see the full ARB Auction 1 Summary Results Report.

Auction	Allowances Offered	Allowances Sold	Settlement Price
Current Auction (2013 Vintage)	23,126,110	23,126,110	$10.09
Advance Auction (2015 Vintage)	39,450,000	5,576,000	$10.00

(Calif Environmental Protection Agency Air Resources Board)

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DC Stormwater Proposed Rule Public Comments

The District Department of the Environment (DDOE) has posted to its website the public comments it received on the Proposed Rulemaking on Stormwater Management and Soil Erosion and Sediment Control and the Draft Stormwater Management Guidebook. DDOE is currently reviewing these comments and incorporating changes to the Proposed Rule and Draft Guidebook as appropriate. 
 

DDOE plans to release a revised Rule and Guidebook in spring of 2013 for a second, 30-day round of public comment. When DDOE posts the revised Rule and Guidebook, it will also post a Comment Response Document for the comments it received on the initial Proposed Rule and a similar document for comments received on the Draft Guidebook. 
 

To view the comments on the Proposed Rule.
 

To view the comments on the Draft Guidebook.
 

To access the Proposed Rule, Draft Guidebook, presentations from training sessions, responses to clarifying questions, and related information, please visit http://ddoe.dc.gov/proposedstormwaterrule.

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U.S. Oil Production Highest In 15 Years

U.S. crude oil production (including lease condensate) averaged almost 6.5 million barrels per day in September 2012, the highest volume in nearly 15 years. The last time the United States produced 6.5 million barrels per day or more of crude oil was in January 1998. Since September 2011, U.S. production has increased by more than 900,000 barrels per day. Most of that increase is due to production from oil-bearing rocks with very low permeability through the use of horizontal drilling combined with hydraulic fracturing. The states with the largest increases are Texas and North Dakota. (DOE-EIA)

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Fuel Pipelines Vulnerable To Floodwaters

Federal investigators plan to announce soon that flood-caused erosion along the riverbed—known as scouring—exposed an Exxon Mobil Corp. pipeline on the Yellowstone River in Montana in 2011, causing it to break and spill 1,000 barrels of crude. A month later, an Enterprise Products Partners  pipeline burst after it was exposed by scouring in a Missouri River floodplain in Iowa, spilling 818 barrels of a gasoline additive.

The greater weight and speed of floodwater can scrape dozens of feet of soil and gravel off a river's bed, potentially exposing pipelines and leading to their rupture. Heavy snow and rain last year caused record flooding on the Missouri River basin, which includes the Yellowstone.

In January, Congress ordered a review of pipeline incidents at river crossings to determine if the pipelines' depths were a factor. The study is expected to help lawmakers determine whether regulations should be strengthened.

The U.S. Geological Survey found severe scour last year at 27 sites surveyed along the Missouri River from Kansas City to St. Louis, with the riverbed deepened in places by nine to 41 feet. Other unpublished USGS research found more severe scouring upstream.

Federal law requires operators to bury pipelines a minimum of four feet beneath waterways. Many river engineers say that standard is grossly inadequate. A congressional research report this year said the 4-foot minimum "appears to be insufficient to prevent riverbed pipeline exposure."
 

The federal agency for pipeline safety, the Pipeline and Hazardous Materials Safety Administration (PHMSA), learned of the pipelines' depths through an optional survey of operators. When operators didn't report the depths of 12 pipelines in the survey, PHMSA said it didn't pursue the matter because it isn't required to track pipeline depths. Under current rules, PHMSA leaves much of the oversight of pipelines to operators, who are required to inspect river crossings every five years.

"It is the operator's responsibility to weigh and assess the risks associated with its pipeline," PHMSA Administrator Cynthia Quarterman testified at a congressional hearing last year on the Exxon spill in Montana. "Especially in [flood conditions]. That is why we kept saying to them, 'You need to check this pipeline out and watch it.'"

Reinstalling shallow pipelines at river crossings across the nation would cost billions of dollars, "and that would be a very high cost to consumers. Scour is typically temporary, with the holes refilled by sediment over time. (WSJ, 12/3/2012)

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