Transcript Reid Presentation 4.30.10

Conservation Law Foundation
www.clf.org
IMPACTS OF NATURAL GAS ON
ELECTRICITY & HOME HEATING
MARKETS
Restructuring Roundtable
April 30, 2010
Susan Reid, Senior Attorney
Director, MA Clean Energy & Climate Change Initiative
(617) 850-1740
[email protected]
About CLF
• Founded in 1966, CLF uses legal advocacy,
science and economics to protect the people
and environment of New England.
• Four program areas:
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Clean Energy & Climate Change
Ocean Conservation
Clean Water & Healthy Forests
Healthy Communities & Environmental Justice
• Environmental consulting affiliate: CLF Ventures
www.clf.org
The climate context:
80% below 1990 levels by 2050
RGGI States CO2 Emissions by Sector (Million Metric Tons CO2 equivalent) - EIA Inventory
for 2003, CLF 2005 & 2010 projections based on "business as usual" and then post 2010
decreases to achieve 80% reductions in emissions by 2050
300.0
250.0
200.0
150.0
100.0
50.0
0.0
2003
2005
2010
2015
2020
2025
2030
2035
2040
2045
2050
Transportation
Electricity Generation
Residential Heating and cooling
Commercial Heating and cooling
Industrial (non-electric)
RGGI Budget
RGGI Budget not yet in effect
www.clf.org
Natural Gas = Key
Transitional Fuel
• ~ 50% lower GHG emissions as compared
to coal-fired generation in New England*
 Other pollutants too (PM, Pb, Hg, etc.)
• Supply-side of the equation has shifted
significantly
 Marcellus Shale
 New LNG terminals (Canaport, offshore)
• New technologies and markets (microCHP)
www.clf.org
But “transitional” is key:
• By 2050, must significantly reduce use of
natural gas
• So, need to consider long-term picture for
any major new natural gas infrastructure
✔Repowering coal plants with natural gas
? Other markets -- CNG vehicles
✖New LNG terminals w/out demonstrated need
www.clf.org
Shale gas development
www.clf.org
Waste pit/shale gas
www.clf.org
Shale Gas Extraction –
Environmental Impacts
• Release of toxic contaminants: natural
(benzene, arsenic, Hg) and chemical
 Groundwater contamination – risks for
drinking water supplies, including NYC’s
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•
•
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Lifecycle GHG emissions/studies underway
Huge volumes waste (contaminated H2O)
Destruction of land, wildlife habitat
Noise, community disruption
www.clf.org
…and inadequate
regulation…
• Exemptions/loopholes in federal
environmental statutes:
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Clean Air Act (wells not aggregated)
Clean Water Act (stormwater/extent disputed)
Safe Drinking Water Act
Resource Conservation and Recovery Act
CERCLA (Superfund)
*Pending FRAC Act would close some
loopholes
www.clf.org
Methane in water-CO
www.clf.org
Contaminated drinking
water - PA
www.clf.org
Potential to improve shale gas
environmental performance:
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Capture air emissions
Reduce, reuse, recycle toxic substances
Substitute non-toxic alternatives
Closed-loop, pitless drilling
Prevent leaks
Well clustering, centralized operations,
remote telemetry, piping systems
www.clf.org
“Greener” approaches
w/ cost savings benefits:
• Non-toxic fracking fluids found to be effective
and less costly
• Closed loop drilling shown to save up to
$180,000 per pit
• Cost savings from capture and sale of methane
• Reuse of drilling fluid shown to result in 50%+
drilling cost savings
source: NRDC
www.clf.org
Shale gas v. LNG
• Potential GHG emission reduction benefits
 Must consider lifecycle GHG emissions
• Energy security – domestic supply
• Environmentally responsible practices are
essential in all contexts
www.clf.org
For more information…
Sue Reid, Senior Attorney
Director, MA CECC Initiative
Phone: 617-850-1740
E-mail: [email protected]
www.clf.org