Clean Energy: Employment and Economic Impact

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So, when we talk about someone employed in “clean energy”, what does that cover?  Like “manufacturing”, many things. The Bureau of Labor Statistics (BLS) defines and tracks employment by sector, but it’s not the most user-friendly resource.  So, while BLS notes that there were nearly 6,000 wind turbine service techs employed in May of 2020, it divides them among five different industries, ranging from utility construction to consulting to local government.  Sadly, a BLS plan to categorize and track clean energy jobs begun in 2010 was abandoned in 2013 during a federal budget shutdown, and has never resumed.

More generally, clean energy jobs fall into four broad categories – energy efficiency (home upgrades or commercial building retrofits); renewables (solar, wind, biogas, or geothermal energy); grid and storage (electrical engineering, battery tech, and charging stations); and cleaner vehicles and fuels (hybrid and electric vehicle manufacturing or biofuel production).  Altogether, more than 3.3 million Americans work in one of these fields, and it’s worth noting that energy efficiency alone employed more than twice as many people as all fossil energy sectors combined.

Like nearly everybody else, clean energy workers have taken a hit in this economy.  About 147,000 jobs were eliminated in March, and April totals nearly tripled that.  More than 590,000 jobs in the sector evaporated by April 30th, two months ahead of projections by BW Research.  The same analysts now expect around ¼ of all green energy jobs to be gone by June 30th, some 850,000 in all.

Under the circumstances, this isn’t surprising.  Homeowners are unlikely to invite insulation crews into their homes in the midst of a pandemic.  Financial chaos means that banks are less likely to lend on large-scale clean energy deployments.  Cities facing budgets collapsing under tax shortfalls are going to emphasize essential services before clean energy buildouts.  And utilities are facing tumbling energy demand.  IEA estimates that from February through April, global demand for energy dropped 6%, the equivalent of all of India.  American energy demand is set to drop 9%, according to the same report.

Whatever the course of economic contraction and recovery, there are certain irreducible advantages to jobs in these industries.  To begin with, they tend to be site-specific.  Many renewable energy jobs are unlikely to be outsourced – those building and maintaining a thermal solar plant in Arizona, for example, are going to build and maintain it in that location for its useful life.  The same holds true for energy efficiency professionals – the homes and buildings in the United States aren’t going to offshore themselves.

Many skilled green energy jobs pay relatively well, can boost stressed economies and don’t require four-year degrees.  Wind turbine techs, for example, exemplify this beneficial clustering.  Wind turbines require regular service and maintenance, and wind farms are located largely in rural areas in the Midwest and southern Plains.  Technicians tend to live in smaller cities or towns near these sites, supporting the local tax base.  Median income for a turbine technician in 2019 was $52,910, which could go a long way in Russell County, Kansas or Alliance, Nebraska.  And training for the field takes one or two years, depending on program and specialization. Median income for solar installers was lower, but in 2019 stood at $44,890 per year, and for insulation crews, median income in 2019 was $44,180,

The issue, at least for now, is that the three specific categories mentioned above don’t employ very many Americans – about 75,000 in all in 2018 and 2019, according to BLS.  But broaden the focus, and green energy’s economic becomes clearer – and bigger.  Wind energy’s total economic footprint alone is already substantial.  In 2018, 530 plants in 43 states produced components – blades, nacelles, turbines, gearing and digital control systems. Outsourcing of some of this manufacturing is possible, but given the size and weight of components as turbines grow taller, is likely to remain largely here at home.  Moreover, the Department of Energy estimates as many as 600,000 jobs in all subsectors of wind energy in less than 30 years.

This kind of job generation potential is what makes remaking America’s energy system so important to inclusive economic recovery.  Utilities, states and cities are already beginning to implement plans to change how we generate and distribute energy in a carbon-constrained world.  These efforts have been patchy and slow, and to date unlikely to meet even minimal Paris Agreement standards.  But under the right circumstances, policy changes, like technological changes, can happen quickly.  Emphasizing the very real benefits of more clean energy jobs may help speed that vital process.

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COVID-19 Impacts: Ethanol and Its Discontents

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Carnage in the conventional energy sector has drawn a lot of attention in the past few weeks.  But the collapse of recent months was presaged by mediocre performance stretching back literally years.  Total returns for the Standard & Poor Energy Sector for 2019, including dividends, were a paltry 6%.  And for the entire decade of 2010-2019, the same sector was up 34%, by far the worst performance of the 11 sectors S&P tracks.  The fracking revolution, it turns out, created a world awash in oil and gas, but didn’t do much to help the industry that created it.

Which brings us to a related question – if oil & gas are in trouble from COVID-19 and from a decade of overproduction and low prices, what has the ongoing turmoil done to alternative fuels?  In particular, since KC Clean Cities operates in the biofueled, beating heart of the Midwest, what’s happened to biodiesel and (particularly) ethanol?

A bit of backstory:   more than 95% of vehicle gasoline sold in the US is a 10% ethanol blend.  There are several reasons for this.  Until about 15 years ago, a compound known as MTBE (methyl tertiary-butyl ether) was blended with gasoline to add oxygen.  As a result, gasoline burned cleaner, and cut smog-forming chemicals and toxins like benzene in exhaust.  But there were problems – MTBE leaked into groundwater from gas station tanks, creating water quality problems.  Moreover, it’s listed as a potential carcinogen.  Enter ethanol, exit MTBE with the Energy Policy Act of 2005.

Like MTBE, ethanol adds oxygen to gasoline and cuts smog-forming emissions.  Unlike MTBE, it’s also a way for America to deal with its massive agricultural surpluses by distilling a value-added product from corn. (It’s worth noting that ethanol now accounts for 40% of all the corn we grow.)

With the Energy Independence & Security Act of 2007, Congress created a mandate that steadily increasing amounts of renewables would be blended into America’s fuel supply – 36 billion gallons by 2022.  This is the Renewable Fuels Standard, which has been hotly debated over the last few years in Washington and elsewhere.

So far so good.  Refineries and fuel importers had a choice – they could blend steadily increasing amounts of renewable fuels.  Or, if they didn’t want to, they could use RINs – Renewable Inventory Numbers – attached to each gallon of renewable fuel produced.  Pecos Pete’s refinery has already hit their required volume of ethanol blended with gasoline for the year, but they keep on blending.  Why?  Because Brownsville Bob’s refinery hasn’t blended any ethanol into their gasoline.  However, Bob can stay in compliance by buying RINs from Pecos Pete, with the price set by the RIN market.

There’s also been a safety valve built into the system, called the Small Refinery Exemption or SRE.  “Small” is relative, but refineries with less than 75,000 barrels per day as of 2006 qualify, and can petition EPA to be excused from renewable fuel blending.  And this is where the fur begins to fly.  Between 2016 and 2018, the EPA granted a total of 85 small refinery exemptions, a big jump that removed a total of 4 billion gallons of mandated demand from the market.  This has been a sore spot with farmers, but hardly the only one.  The ongoing trade war with China has dried up what was a major market for ethanol, corn and distiller’s grain, a byproduct of the ethanol production process used as animal feed.  Allowing year-round sales of E-15 – that is, gasoline that is 15% ethanol by volume hasn’t made much of a dent, since relatively few gas stations sell it even though all light-duty gasoline vehicles 2001 or newer are approved to use E15.

And now, COVID.  Just as Texas and Oklahoma oil producers and refineries don’t have any place left to store their crude and refined products as consumer demand collapses, ethanol producers are running out of storage.  Federal Reserve research shows US ethanol production down nearly 50% since the beginning of 2020.  73 out of 200 total plants nationwide are shut down, while another 71 are on reduced production schedules.  At least two dozen ethanol plants are now producing alcohol for hand sanitizer, but at low volume, much of which will be donated anyway.

For the time being, the sector seems to be shaking its way into stasis.  Whatever shape the ethanol industry takes in 2021 and beyond will depend for now on what the virus does– and how we respond – in 2020.

For additional details on why this matters, please check out our guest blog posting by David VanderGriend of the Urban Air Institute.  Fuel blending standards can sound arcane, and the details of ethanol and corn and agriculture seem like something taking place in distant, rural counties.  They’re not.  They impact the lives of residents of metro Kansas City every day, and at the fundamental level of our own health.

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COVID and the Intersection of Transportation and Health

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MEC’s Response to COVID-19

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As we all shift our routines in an effort to stay safe and healthy in light of the COVID-19 pandemic, Metropolitan Energy Center is exploring ways to adjust to the new normal. We want you to know we share the collective confusion and frustration of our friends, neighbors, and colleagues. Please remember we are all in this together. Be patient, be kind. And if you need us, we’ll be here, because we have been for over 35 years.

What We’re Doing

As the situation evolves, we are continually adjusting our response. At this time, our dedicated staff are working from home, in consideration of the CDC recommendations and in compliance with the KC Metro stay-at-home order, effective Tuesday, March 25. We are finding innovative ways to support our communities and continue our technical support for regional alternative fuels and energy efficiency advancements.

Staff can best be reached by email, though phone calls are still welcome and will be routed to the appropriate staff as soon as possible on the day the calls are received.

For scheduled meetings and events:

  • All in-person meetings and events for the next 8 weeks are postponed, moved online, or cancelled.
  • Scheduled conference calls will go on and will now offer a web connection in case you are unable to join through a phone connection.

For projects and project deliverables:

  • Staff are conducting a COVID-19 risk assessment for all ongoing projects. If you are involved in a project and believe restrictions due to the crisis present a risk to you meeting your objectives, please notify your MEC staff contact immediately.

Hidden Costs and Silver Linings

This pandemic is something new for nearly all of us. Some Americans—those 75 and older—will remember the polio epidemic of the 1940s and 1950s. But for most of us, this means making changes in the ways we work, live and travel that we’ve never experienced before.

If there’s any sort of silver lining to this situation, it’s that finding new ways to work and move in the next months may lead to longer-term solutions that can improve health outcomes for everyone. COVID-19 is a respiratory illness, and good respiratory health is critical—now, in dealing with this disease, and for our community’s overall health in the future. MEC has worked for decades to cut toxic emissions with energy efficiency, cleaner fuels, intelligent transportation and building systems, and a cleaner, more efficient freight network. This work continues, with our diverse community and stakeholders in mind, and is more critical today than at any other point in history.

What You Can Do

#StayHomeKC. On March 21, elected officials in Jackson, Johnson and Wyandotte counties and the city of Kansas City, Missouri, announced a 30-day stay-at-home order. Other counties in the region have enacted various restrictions to help slow the spread of COVID-19. State and local guidelines are changing rapidly as more cases are confirmed.

For the latest information, check your local health department or city/county websites.

If you should venture away from home, please remember: exhaust irritates lungs. For the sake of those experiencing respiratory difficulty, turn off your engine if you will be waiting for a friend carpooling with you, for car-side delivery service, etc.

Take advantage of your reduced commute time to get outdoors more. Biking, walking and hiking can be done alone, with your pets, or in small groups adhering to social distancing practices.

Some outdoor volunteering opportunities may continue, in small groups adhering to social distancing practices, especially orgs doing wildland management, gardening and cultivation, tree planting, and the like. Carefully evaluate your host’s safety and health policies and practices before signing up. Due to the stay-at-home order, many of these events may be cancelled as well, so contact your host to confirm before showing up.

If you’re a volunteer and miss in-person group volunteering events, stay engaged through GlobalGiving. GlobalGiving’s virtual skilled volunteering platform, GlobalGivingTime, can match you with interesting opportunities from vetted nonprofits around the world, from the convenience of your desk.

Stay Informed

Metro KC officials are keeping PrepareMetroKC.org updated as new information becomes available.

As you know, this situation is continually shifting. We will monitor developments to adhere to federal, state and local advisories, and support the region’s efforts to protect the health and safety of the public.

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The Electric Car Experience – POSTPONED

You’ve seen them, even if you weren’t really looking. A Tesla zipping along I-435, a Leaf silently moving across the grocery store parking lot, a Bolt gliding by the gas station as you filled up. Electric cars are increasingly part of America’s automotive landscape, though still a small percentage of what’s on the road today.

So, ever wonder what it would be like to drive one? Well, here’s your chance.

Metropolitan Energy Center, with generous support from Evergy, is rolling out the Electric Car Experience. It’s a zero-pressure way for you to drive multiple makes and models of all-electric cars and plug-in hybrids.  Stay in town?  Hit the highway?  Your choice.  And all done without sales staff, and with volunteers who own and drive their own electric cars.

The Electric Car Experience is coming POSTONED to United Methodist Church of the Resurrection in Leawood at 13720 Roe in Leawood, from 10:00 to 4:00. COR has kindly offered the use of their space as part of their commitment to a more sustainable world. We’ll have our EV fleet in the parking lot just south of the sanctuary.  All you’ll need to do is follow the signs.

Consider this blog entry a placeholder.  All registrations to test drive (or just ride along, if you prefer) will be done online and hosted by Evergy.  Watch this space for further details in the next few weeks!

If you own an EV or PHEV, and would be willing to volunteer, we’d love to have you along for the ride. Please visit https://metroenergy.org/ev-owner-signup/ to learn more and sign up for this exciting outreach event.

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Amps And Bolts, Nuts And Volts – EV Advice For The Curious – Part Three

DECISIONS, DECISIONS
– As mentioned, buying a car is a big financial decision, and we can’t presume to dictate what meets your needs. Admittedly, efficient is good, more efficient is better, and we’re all in favor of zero-emission options here at MEC (yes, we’re somewhat biased). Even setting aside the positive environmental impact moving away from petroleum creates, we believe that the case for electric vehicles is solid in terms of dollars and cents alone.  Your savings on fuel and maintenance over the lifetime of the vehicle can easily total thousands or tens of thousands of dollars.

But in the end, the choice to switch from gasoline or diesel to an EV or PHEV needs to be a choice that works for you. What this closing installment aims to do is to connect you with resources that can help you run the numbers, check the tech, and learn from the experiences of others.

GETTING STICKY – Remember the last time you were at a car dealership? Remember the stickers on the rear windows of every car – the black & light blue stickers, with the MPG totals?

Sample gasoline vehicle fuel economy label

Yeah, those. All light-duty cars and trucks sold in the US get those numbers from federal laboratories, whatever their fuel. In the case of BEV and PHEV models, you’ll notice a substantial difference between a sticker for a conventional car, particularly when it comes to MPG and fuel costs:

Sample electric vehicle fuel economy label

Handy in and of itself, this sticker is only the tip of the iceberg.  There is plenty of information from federal agencies and laboratories available to prospective owners of any car or truck, powered by any fuel.

Let’s begin with the most popular and comprehensive federal site.  Fuel Economy.gov is jointly supported by the Department of Energy and the EPA.  Once on the homepage, click on the tab labeled “Advanced Cars And Fuels”.  The pop-up that results has no fewer than 47 different linked categories for everything from diesel to hydrogen.

Within these categories, there’s plenty to do. If you’d like to compare EV model to EV model, or compare a Tesla with a Ford F-150, the interface is simple and intuitive. You can find estimates for five-year fuel costs, gallons or kilowatt-hours per 100 miles and even gas tank size. Simple or detailed driving cost calculators, information on tax credits, personal online fuel efficiency tracking (for the slightly obsessive), and plenty more tools are ready to use. The same site also hosts the Fuel Economy Guide, updated every year.  The 2020 edition is now up and ready for free download.

A DIGRESSION IN THE NAME OF FULL DISCLOSURE – Once again, there’s no free lunch. There’s no tailpipe, but most electric cars have a smokestack – the power plant they plugged into. However, the Alternative Fuels Data Center has a calculator that shows how much carbon an average EV puts out in a year.  You can use it to compare EVs with hybrid, PHEV and gasoline options. It’s quite broad, and based on state averages. Even so, it’s fascinating to compare EVs in Missouri (coal-heavy) and Kansas (wind-rich) with their petroleum cousins– to say nothing of the yawning gulf between both states and California.

OWNER INPUT AND WEBSITES GALORE – There are lots of websites and owners’ groups out there. This country abounds in organizations devoted to everything from Hendrix to Hummers to hummingbirds, so it’s no surprise that there is plenty of information available on EVs and PHEVs.

 

THINKING LOCALLY
There is a very active group of EV enthusiasts right here in town.  Members of the Mid-America Electric Auto Association would love to field your questions. Feel free to drop in at their monthly meetings (2nd Sundays at 1:00 at the Johnson County Main Library), or through their Yahoo user group. MAEAA members know all about Kansas City weather – icy winters and blazing summers.  They’re quite familiar with how weather impacts the performance of BEVs and PHEVs.  Actually, it impacts the performance of all vehicles, but that’s a subject for another time.

ONLINE
InsideEVs is great at keeping up with tax credits and incentives, and their monthly sales scorecard is, if not formally approved by the industry, solidly based on monthly sales totals from all manufacturers. It’s also a good site for additional details on charging, financing and other, wonkier topics. Their charts on range, cost and incentives cover all available models and are regularly updated.

Green Car Reports A bit broader in scope, this site covers just about everything faintly green in the auto world. Monthly updates on the best deals available, even for efficient conventional cars are handy.  The “First Drives” series covers new cars on the block, and their daily news updates are useful.

Midwest Evolve Hosted by a consortium of Clean Cities coalitions around the Midwest, ME covers a lot of ground. Their website has plenty of user-friendly breakdowns on EV and PHEV how-to, auto show and test drive events, plus an excellent combination blog/news site.

Electric Auto Association One of the oldest EV organizations out there, the EAA has been promoting electric cars since 1967, when going electric was a 100% DIY proposition. Their website is a bottomless pit of information, particularly their EV Links page. Much of their content leans technical , but there’s plenty applicable to those of us who are still in the “just looking” stage.

These are a few of the  many EV sites out there, whether run by clubs, non-profit organizations or businesses. We cannot vouch for 100% accuracy in what you may find there.  This is especially true in online comments sections, which have an unfortunate tendency to resemble . . . online comments sections.

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Case Study: School District’s Propane Buses Go Beyond Cost Savings

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District: Grain Valley School District
Industry: Education
Location: Grain Valley, Missouri
Vehicles: (14) 2018 IC Bus CE Series propane autogas-fueled buses
Fueling: On-site propane autogas station

Challenge
With aging diesel buses to replace, a Missouri school district looked to alternative fuel options that would save money on fuel and maintenance.

Result
The Grain Valley School District purchased 14 propane school buses. The new buses joined a 49-bus fleet that transports 2,800 students to school from suburban and exurban neighborhoods.

Focus on Cost-Cutting
Over the years Missouri state reimbursements for school transportation have dropped from 75 percent to 16 to 20 percent. School districts in the state have had to tap their own general school funds to make up the shortfall.

To help save money, the Grain Valley district considered alternative fuels for its new school buses and comparing compressed natural gas (CNG) and propane autogas. District representatives attended an alternative fuels workshop hosted by Kansas City Regional Clean Cities, a Metropolitan Energy Center program. The district considered various fuels but “the vehicle costs and fueling station costs for CNG were much higher versus propane,” said Shawn Brady, director of transportation.

The district decided to purchase 14 propane buses in 2018 to replace diesel buses of 2001 and 2002 model years. Brady researched and applied for a grant from the U.S. Department of Energy through Kansas City Regional Clean Cities to assist with the purchase costs of the buses.

Preparing for Propane Autogas
To fuel the new buses, the district entered into a contract with their local propane provider, Ferrellgas. A fueling station with two 1,000-gallon tanks was built in the school district’s bus parking lot in April 2018. “It saves time not to have to travel to refuel,” Brady noted.

Infrastructure costs for propane are the lowest of any fuel; alternative or conventional. For Grain Valley schools, the start-up cost for the fueling station totaled $16,500. “We received a 45 percent grant from Metropolitan Energy Center for the installation of our propane fueling station,” Brady said. The center’s grant amounted to $7,425. “The fueling station cost us only $9,075 after the grant.”

Before putting the new buses on the district’s routes, drivers received training in propane bus operation. “Our bus vendor provided training on how to properly operate the buses and maximize fuel efficiency,” Brady said. The district’s technicians traveled to the bus manufacturer’s factory in Tulsa, Oklahoma, for a complimentary week-long training course on maintenance. The district didn’t need to make changes to its bus repair facility. Requirements for a propane vehicle service facility are generally the same as those for conventionally fueled vehicles.

Financial Benefits
After tapping grants for purchase assistance, each new bus cost about $250 more than a comparable diesel bus. District officials say that the higher initial cost can be quickly recouped in fuel savings.

In fact, by adding propane buses to its fleet, Grain Valley School District has noted savings on both fuel and maintenance. On average, propane autogas costs up to 50 percent less than diesel. As part of its Grain Valley Schools propane bus and fueling setupnegotiated contract, Grain Valley paid a locked-in rate of $1.20 per gallon of propane in 2018-1019. For the 2019-2020 school year, the district pays $1.15 per gallon. For comparison, the district pays $2.31 per gallon on average for diesel.

Each bus in the district runs about 9,000 miles per year. For the 2018-2019 school year, fuel savings amounted to about $14,500. “The district’s increased savings year after year will allow the transportation department to serve as a better steward of taxpayer money,” said Brady.

Additional savings come from the reduced maintenance. With propane autogas, no exhaust after-treatment or diesel emissions fluids are required like with diesel to meet today’s strict emissions regulations. Propane vehicles don’t need particulate trap systems, turbochargers and intercoolers. Plus, propane uses less engine oil. All these factors contribute to the overall savings of time and money. The district’s technicians like the propane buses, Brady reports. “There are fewer parts and systems to have to maintain.”

However, Brady explained that “warranty work is challenging with no established shop in Kansas City.” He noted that IC does provide a traveling technician who assists his staff when they encounter maintenance issues. Kansas City Regional Clean Cities recommends fleet managers ensure that there is a local service shop to do warranty and continuing work on buses before purchasing.

Even more saving shows up for the district in the winter. Due to the chemical properties of propane autogas, the propane buses warm up faster and have no cold start issues. Unlike diesel vehicles, these buses can start up in temperatures as low as -40 degrees Fahrenheit. School districts report lower electric costs because the propane buses don’t rely on block heaters. “Our propane buses warmed up faster this past winter than the diesel buses,” Brady said.

Beyond the Bottom Line 

Grain Valley’s propane buses are helping the community’s air quality. Unlike diesel buses, propane vehicles emit virtually no particulate matter and, with substantially less nitrogen oxides (NOx). Buses fueled by propane also emit fewer greenhouse gases and total hydrocarbon emissions when compared to diesel buses. Propane’s quiet operation makes riding the bus more pleasant for passengers and safer for drivers, who are less distracted by engine noise. “We’ve benefitted from much cleaner air and much quieter buses running through neighborhoods,” said Brady.

Drivers also report that the propane dispenser pumps are just as fast or faster than the diesel fuel pump when it’s time to fill the tank. The district notes that it will be sure to order buses with 100-gallon fuel tanks going forward. “These were not available from IC when we placed our first order,” Brady said.

The district’s leadership in adopting an alternative fuel earned it a 2018 Agent of Change Award from the Metropolitan Energy Center, a Kansas City nonprofit catalyst for energy efficiency, economic development and environmental vitality.

The district’s plan to purchase seven more propane buses this year, and eventually move to an all-propane fleet, speaks to the administration’s belief in the benefits of this alternative fuel for their students, drivers and overall community.

“Our district made the decision on propane buses to save money. The environmental impact is an added benefit. There’s no reason to not make the move into propane now,” Brady said.

 

About MOPERC: The Missouri Propane Education & Research Council is a not-for-profit organization authorized by the Missouri Legislature. Dedicated to propane education and public awareness, MOPERC provides industry training, consumer safety, appliance rebates and market development programs. The council is composed of 15 volunteer directors and adm inistered by an executive staff. Visit PropaneMissouri.com.

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