Assessing the potential for U.S. utility green bonds

EXECUTIVE SUMMARY: Bonds are the largest single class of financial instrument across the world’s financial markets. Recently, a subclass of these bonds, called green bonds, has emerged in the market place. Green bonds are a type of bond whose proceeds may be used only for certain approved “green” investments. In exchange for agreeing to invest only in such projects, the bond issuer obtains some value greater than they would obtain from traditional financing, and are therefore encouraged to finance and undertake a greater number of green projects. This unique value may not be recognized in traditional financial accounting. Of course, like any other capital-raising investment, green bonds enable their issuer to finance a new project that should increase (or at least maintain) its revenues, profits, and cash flow. The utility sector was the second largest issuer of green bonds in 2017, accounting for $26.2 billion dollars’ worth of green bond issuance globally. These were primarily issued to finance renewable energy projects, a class of projects that makes the utility sector one of the most logical for deployment of green bonds. While choosing to issue green bonds does not seem to have any price advantage over regular bonds in the market, green bonds can provide other benefits. These benefits may include reputation effects, better treatment in secondary markets, and other intangibles (See Table ES1)

Long-term U.S transportation electricity use considering the effect of autonomous-vehicles: Estimates & policy observations

In this paper, we model three layers of transportation disruption – first electrification, then autonomy, and finally sharing and pooling – in order to project transportation electricity demand and greenhouse gas emissions in the United States to 2050. Using an expanded kaya identity framework, we model vehicle stock, energy intensity, and vehicle miles traveled, progressively considering the effects of each of these three disruptions. We find that electricity use from light duty vehicle transport will likely be in the 570–1140 TWh range, 13–26%, respectively, of total electricity demand in 2050. Depending on the pace at which the electric sector decarbonizes, this increase in electric demand could correspond to a decrease in LDV greenhouse gas emissions of up to 80%. In the near term, rapid and complete transport electrification with a carbon-free grid should remain the cornerstones of transport decarbonization policy. However, long-term policy should also aim to mitigate autonomous vehicles’ potential to increase driving mileage, urban and suburban sprawl, and traffic congestion while incentivizing potential energy efficiency improvements through both better system management and the lightweighting of an accident-free vehicle fleet

Final report: Workshop on: Integrating electric mobility systems with the grid infrastructure

EXECUTIVE SUMMARY: This document is a report on the workshop entitled “Integrating Electric Mobility Systems with the Grid Infrastructure” which was held at Boston University on November 6-7 with the sponsorship of the Sloan Foundation. Its objective was to bring together researchers and technical leaders from academia, industry, and government in order to set a short and longterm research agenda regarding the future of mobility and the ability of electric utilities to meet the needs of a highway transportation system powered primarily by electricity. The report is a summary of their insights based on workshop presentations and discussions. The list of participants and detailed Workshop program are provided in Appendices 1 and 2. Public and private decisions made in the coming decade will direct profound changes in the way people and goods are moved and the ability of clean energy sources – primarily delivered in the form of electricity – to power these new systems. Decisions need to be made quickly because of rapid advances in technology, and the growing recognition that meeting climate goals requires rapid and dramatic action. The blunt fact is, however, that the pace of innovation, and the range of business models that can be built around these innovations, has grown at a rate that has outstripped our ability to clearly understand the choices that must be made or estimate the consequences of these choices. The group of people assembled for this Workshop are uniquely qualified to understand the options that are opening both in the future of mobility and the ability of electric utilities to meet the needs of a highway transportation system powered primarily by electricity. They were asked both to explain what is known about the choices we face and to define the research issues most urgently needed to help public and private decision-makers choose wisely. This report is a summary of their insights based on workshop presentations and discussions. New communication and data analysis tools have profoundly changed the definition of what is technologically possible. Cell phones have put powerful computers, communication devices, and position locators into the pockets and purses of most Americans making it possible for Uber, Lyft and other Transportation Network Companies to deliver on-demand mobility services. But these technologies, as well as technologies for pricing access to congested roads, also open many other possibilities for shared mobility services – both public and private – that could cut costs and travel time by reducing congestion. Options would be greatly expanded if fully autonomous vehicles become available. These new business models would also affect options for charging electric vehicles. It is unclear, however, how to optimize charging (minimizing congestion on the electric grid) without increasing congestion on the roads or creating significant problems for the power system that supports such charging capacity. With so much in flux, many uncertainties cloud our vision of the future. The way new mobility services will reshape the number, length of trips, and the choice of electric vehicle charging systems and constraints on charging, and many other important behavioral issues are critical to this future but remain largely unknown. The challenge at hand is to define plausible future structures of electric grids and mobility systems, and anticipate the direct and indirect impacts of the changes involved. These insights can provide tools essential for effective private ... [TRUNCATED]Workshop funded by the Alfred P. Sloan Foundatio

Cities and climate change: Strategic options for philanthropic support

Now, more than ever, cities are at the front lines of U.S. climate action. As national action stalls, there is still a daunting amount to be done in reducing human-generated climate emissions. Fortunately, this report comes in the wake of a groundswell of initiatives to engage on climate change by cities, countries, and states across the U.S. Several important and thorough reports on the types of mitigation actions cities can take have recently been released. We already have examples of cities taking significant leadership roles in reducing their own climate emissions, from New York and Boston to Austin, Boulder, and Los Angeles - yet U.S. climate emissions continue to rise, and cities have an outsized role to play. The purpose of this project is to review current U.S. city climate activities in order to identify areas where additional investment by foundations could help accelerate city action to reduce urban greenhouse gas emissions. The focus of the inquiry is on aggressive actions cities can take that significantly increase their “level of ambition” to achieve emissions reductions on an accelerated timetable. City strategies on climate adaptation are not encompassed in this project. [TRUNCATED

The Green New Deal: a goal, not a date

https://www.bu.edu/ise/2019/03/06/the-green-new-deal-a-goal-not-a-date

Carbon Free Boston: Energy Technical Report

Part of a series of reports that includes: Carbon Free Boston: Summary Report; Carbon Free Boston: Social Equity Report; Carbon Free Boston: Technical Summary; Carbon Free Boston: Buildings Technical Report; Carbon Free Boston: Transportation Technical Report; Carbon Free Boston: Waste Technical Report; Carbon Free Boston: Offsets Technical Report; Available at http://sites.bu.edu/cfb/INTRODUCTION: The adoption of clean energy in Boston’s buildings and transportation systems will produce sweeping changes in the quantity and composition of the city’s demand for fuel and electricity. The demand for electricity is expected to increase by 2050, while the demand for petroleum-based liquid fuels and natural gas within the city is projected to decline significantly. The city must meet future energy demand with clean energy sources in order to meet its carbon mitigation targets. That clean energy must be procured in a way that supports the City’s goals for economic development, social equity, environmental sustainability, and overall quality of life. This chapter examines the strategies to accomplish these goals. Improved energy efficiency, district energy, and in-boundary generation of clean energy (rooftop PV) will reduce net electric power and natural gas demand substantially, but these measures will not eliminate the need for electricity and gas (or its replacement fuel) delivered into Boston. Broadly speaking, to achieve carbon neutrality by 2050, the city must therefore (1) reduce its use of fossil fuels to heat and cool buildings through cost-effective energy efficiency measures and electrification of building thermal services where feasible; and (2) over time, increase the amount of carbon-free electricity delivered to the city. Reducing energy demand though cost effective energy conservation measures will be necessary to reduce the challenges associated with expanding the electricity delivery system and sustainably sourcing renewable fuels.Published versio

Carbon Free Boston: Offsets Technical Report

Part of a series of reports that includes: Carbon Free Boston: Summary Report; Carbon Free Boston: Social Equity Report; Carbon Free Boston: Technical Summary; Carbon Free Boston: Buildings Technical Report; Carbon Free Boston: Transportation Technical Report; Carbon Free Boston: Waste Technical Report; Carbon Free Boston: Energy Technical Report; Available at http://sites.bu.edu/cfb/OVERVIEW: The U.S. Environmental Protection Agency defines offsets as a specific activity or set of activities intended to reduce GHG emissions, increase the storage of carbon, or enhance GHG removals from the atmosphere [1]. From a city perspective, they provide a mechanism to negate residual GHG emissions— those the city is unable to reduce directly—by supporting projects that avoid or sequester them outside of the city’s reporting boundary. Offsetting GHG emissions is a controversial topic for cities, as the co-benefits of the investment are typically not realized locally. For this reason, offsetting emissions is considered a last resort, a strategy option available when the city has exhausted all others. However, offsets are likely to be a necessity to achieve carbon neutrality by 2050 and promote emissions reductions in the near term. While public and private sector partners pursue the more complex systems transformation, cities can utilize offsets to support short-term and relatively cost-effective reductions in emissions. Offsets can be a relatively simple, certain, and high-impact way to support the transition to a low-carbon world. This report focuses on carbon offset certificates, more often referred to as offsets. Each offset represents a metric ton of verified carbon dioxide (CO2) or equivalent emissions that is reduced, avoided, or permanently removed from the atmosphere (“sequestered”) through an action taken by the creator of the offset. The certificates can be traded and retiring (that is, not re-selling) offsets can be a useful component of an overall voluntary emissions reduction strategy, alongside activities to lower an organization’s direct and indirect emissions. In the Global Protocol for Community-Scale Greenhouse Gas Emissions Inventories (GPC), the GHG accounting system used by the City of Boston, any carbon offset certificates that the City has can be deducted from the City’s total GHG emissions.http://sites.bu.edu/cfb/files/2019/06/CFB_Offsets_Technical_Report_051619.pdfPublished versio

FixedBill+: making rate design innovation work for consumers, electricity providers, and the environment

Published versio

The Critical Role of Public Charging Infrastructure

Editors: Peter Fox-Penner, PhD, Z. Justin Ren, PhD, David O. JermainA decade after the launch of the contemporary global electric vehicle (EV) market, most cities face a major challenge preparing for rising EV demand. Some cities, and the leaders who shape them, are meeting and even leading demand for EV infrastructure. This book aggregates deep, groundbreaking research in the areas of urban EV deployment for city managers, private developers, urban planners, and utilities who want to understand and lead change

Final report: Proposed modeling system recommendations for Boston 80/50 decarbonization

Final report presented to Boston Green Ribbon Commission, September 2016