President’s Message
On the empirical side, carbon emission allowances can be estimated based
on fuel types and historical annual fuel
volumes consumed. From our view, a
better measurement would be based on
overall fuel efficiency or an output-based
performance standard. Lower carbon
fuels and more efficient delivery of power
and heat, like better-conditioned or more
highly skilled athletes, would therefore be
favored in this segment. The second component of scoring, such as used to judge
the aerial freestyle, could involve awarding allowances to classes of competitors
based on subjective conditions such as
regional displacement of emissions or
to promote cleaner energy investments.
In other words, the cleaner the energy
source, the higher the score.
Throughout the February fortnight of the 2010 Winter Olympics, my family was transfixed by the stories of achievement and perseverance
unfolding from Vancouver. From the
optimism of the opening ceremonies
(tempered by the tragic loss of Georgian
luger Nodar Kumaritashvili) to the congenial closing ceremonies, the Olympics
showcased national pride and connected
the global community. I congratulate my
Canadian colleagues on their gold medal
success, especially the hard-fought final
in men’s hockey.
District energy also played a key
part in the success of these Olympics.
Vancouver’s mayor and city council
recently inaugurated a new innovative
district heating system using recovered
heat to supply the new athletes Olympic
Village. (The system was featured as
the cover story of our third quarter
2008 issue of District Energy magazine.) The host city of Vancouver, easily
one of the most naturally beautiful in
North America, has had a successful
privately owned downtown district heating system since 1968. Central Heat
Distribution Ltd. serves more than 100
downtown buildings, including BC Place,
the arena hosting the opening and closing ceremonies, and GM Place, the host
hockey venue.
contests than events based on subjective judging. I like the race against the
clock in downhill skiing more than relying on the preferences of judges in pairs
skating or half-pipe (even though the
men’s winner there was pretty clear).
When outcomes may be ‘prejudged’
by prior standing, reputation, or worse
yet, hidden alliances among judges, it
not only diminishes the actual on-ice
performance but calls into question the
integrity of the sport. You might recall
the ’Skategate’ controversy of the 2002
Winter Olympics in which certain national judges were exposed for colluding to
preserve status quo or exchange standings among medal contenders.
The same applies to competition
in the energy and environmental policy
arena. These days, with growing uncertainty about the path forward for federal
climate and energy legislation, the quest
for reasonable treatment for district
energy/combined heat and power is at
the top of IDEA’s agenda.
Of course, in energy and environmental policy, as in sports, things are not
always black and white. Referees, rulings
and instant replay are needed from time
to time. Policies and rules of engagement evolve over time as economic and
environmental objectives shift, or as
market conditions dictate. In the U.S.,
federal energy and climate policies are
becoming more like an Olympic freestyle
skiing event, which combines the empirical scoring of a frantic top-to-bottom
mogul run with the subjective judging
of artistic aerial flips based on height,
degree of difficulty and execution of
a clean landing. Today, in scoring an
energy solution, an efficient run should
be considered along with a clean start
and a clean landing.
Judging Matters
With the Olympic torch now
dimmed, I realize I prefer more empirical
In energy and environmental
policy, as in sports, things are
not always black and white.
Staying in the Game
Like it or not, if we want district
energy and CHP to remain a competitive
option for campuses and communities,
IDEA must stay in the game and work
closely with congressional staff and agencies who are revising the rules on carbon
emissions. As we go to press, the Senate
is considering a revised approach from the
economywide structure of the Waxman-Markey Bill that treats electric utilities separately from industry and transportation.
For instance, Sen. Lindsey Graham,
R-S.C., has released a draft bill to create a
federal “clean electricity standard.” Under
the bill, the government would distribute
credits for clean energy generation and
energy efficiency improvements. Utilities
would be required to hold earned or
purchased credits equivalent to an increasing percentage of their energy generation, beginning at 13 percent in 2012
and rising to 30 percent by 2030 and 50
percent by 2050. Coal plants that capture and sequester at least 65 percent of
their greenhouse gas emissions and new
nuclear plants would both qualify as clean
energy sources. Utilities could use the
energy efficiency credits to meet at most
25 percent of their compliance obligation.
IDEA would like to see CHP expressly considered in this criterion.
It remains to be seen if the new
Senate version will reflect a scaled-back
approach on carbon emissions regulations, initially limited to electricity produc-
