Built Environment and Energy Policy

U.S. energy consumption in 2023 attributed to the industrial sector

26.1 quads (28%)

Major types of industries

manufacturing > mining > construction > agriculture

Percentage of global GHG emissions attributed to the industrial sector

29%

Percentage of U.S. GHG emissions attributed to the industrial sector

23%

Dominant fuel type consumed in the industrial sector

natural gas

Dominant sector in manufacturing energy consumption

bulk chemical (uses feedstock and fuel)

Cement emissions

• cement is the second most consumed substance globally

• cement is responsible for 5% of global CO2 emissions

• 1 pound of CO2 for every pound of cement

Petrochemical emissions

replace fossil fuels for heat and feedstock with H2, electricity

Steel emissions

increase share of global production from electric arc furnaces (with renewable electricity), low-carbon hydrogen

Agriculture emissions

manure management, feed additives, less fertilizer volatilization, electrified agriculture, soil management

Dominant country for cement production

China

Industrial Heat

• low-temp heat (<750F) could be suitable for electrification (heat pumps)

• high-temp heat (>750F) could be a great application for green fuels (hydrogen)

Fuel switching

• only 6% of natural gas energy consumed in 2022 could plausibly be switched to other fuels

• price changes would not effect the ability to switch

• only 42% of companies report participating in general energy management activities

The built environment

covers every aspect of the things we build to facilitate our daily lives

U.S. energy consumption in 2023 attributed to the built environment

40% (residential and commercial)

Change in global floor space

projected to increase around 15% 2022 to 2030 (twice as fast as population growth)

U.S. residential buildings

• most americans live in single-family houses (about 100 million houses - 70%)

• electricity consumption has increased 14-fold

• uses about 35% of U.S. total electricity use

Energy consumption in the residential sector

electricity (lights and A/C) and natural gas (heating) consumption are growing

Electricity use in households

for cooling, heating, and lighting (dominantly air conditioning)

Trend of per-household energy consumption

• decreased over time

• improvements in building insulation and materials

• improved efficiencies of appliances, heating and cooling equipment, water heaters, refrigerators, and lighting

U.S. commercial buildings

• has increased 56% in number of buildings and 89% in floor space

• expected to increase another 29%

• operational energy represents 80-90% of a building’s life cycle energy cosnumption

Dominant energy consumption in commercial buildings

electricity (natural gas has increased too)

Changes in lighting efficiency

incandescents to compact flourescent lightbulbs (CFLs) to light emitting diodes (LEDs)

Heating and cooling degree-days

difference between the daily mean and 65 F

Area with greatest heating degree-days

Northern part of U.S.

Area with greatest cooling degree-days

Southern part of U.S.

Change of load with the weather

• residential and commercial loads change a lot

• industrial loads don’t change a lot

District heating

a centralized plant produces hot water, steam and/or chilled water which provides heating/cooling to nearby buildings

District cooling

• used at UT

• cooled at night and stored for use when it’s hot in the day-time

• flattens out energy demand and increases efficiency

Heat pumps

• coefficient of performance (COP) tells you the ratio of the energy you put in to the heat you get out

• typically >2.5 for air source

• can be 4+ for ground-source heat pumps

Building energy codes

energy codes and standards set minimum efficiency requirements for new and renovated buildings, assuring reductions in energy use amd emissions of life of the building

Changes in efficiency for buildings

• building codes

• double-pane windows

• weather stripping

• more efficient HVAC systems

• programmable thermostats

• variable speed pool pumps

• building management systems

Jevons Paradox

as efficiency increases, overall consumption increases too

International institutions focusing on energy

• IEA: International Energy Agency

• IRENA: International Renewable Energy Agency

• IAEA: International Atomic Energy Agency

• IPCC: Intergovernmental Panel on Climate Change

• FCCC: Framework Convention on Climate Change

IPCC

• Intergovernmental Panel on Climate Change

• UN’s body for assessing the science related to climate change

• issue assessment reports on impacts, adaptation, and mitigation

FCCC

• United Nations Framework Convention on Climate Change

• aims to stabilize greenhouse gas concentrations in the atmosphere at a level that will prevent dangerous human interference with the climate system, in a time frame that allows ecosystems to adapt naturally and enables sustainable development

• framework under which the Kyoto Protocol and the Paris Agreement were established

Conference of the Parties (COP)

a UN conference to host diplomatic negotiations on climate ambitions and progress

Governement institutions that affect energy

• DOE: Department of Energy

• EPA: Environmental Protection Agency

• DOI: Department of the Interior

• BLM: Bureau of Land Management

• USGS: U.S. Geological Survey

• USDA: U.S. Department of Agriculture

• DOD: Department of Defense

• DOT: Department of Transportation

• CARB: California Air Resources Board

• SECO: Texas State Energy Conservation Office

• PUCT: Public Utility Commission of Texas

Primary labs for energy research

national energy technology lab (NETL), national lab of the rockies (NREL)

Non-governmental stakeholder that affect energy

industry, labor unions, environmental and social justice advocacy groups

Innovation Funding

• funding and other resources for basic R&D and demonstration of critical technologies

• Administered through DOE (or other agencies)

Financial Levers

• policies that specifically target finances and cost

• raising costs (carbon tax, fines, other penalties)

• decreasing costs (tax credits, consumer rebates)

Mandates/Bans

• set deployment targets or ban use of specific technologies

• provide a market ‘pull’ and demand certainty

• renewable fuel standards, renewable portfolio standard

Regulations/Standards

• guidance or requirements for buildings and operation of infrastructure

• related to safety, health, environmental protections

Cap and Trade

• large emitters are given a particular allowance for pollution they can release

• clean sources earn credits for emitting less than their allowance

• dirty sources that emit more than their allowance can biy credits from clean sources and/or invest in technlogies to reduce emissions

• allowancws tighten over time

• focues on each point source

• fixes emissions: markets then set the price

• used to address acid rain concern

Carbon Tax

• spreads price to all end-users

• reaches all carbon users

• hard to implement across borders

• fixes the price: markets then set the emissions

European Emissions Trading System

• covers CO2,

• covers N2O, PFCs

• covers power, manufacturing, and aviation (40% of European emissions)

Policies set by executive branch

• issue budget requests to emphasize priorities

• set budget directions

• issue executive orders

Policies set by legislative branch/congress

• authorize and allocate money

• set rules

Department of Energy (DOE)

distribute research funds allocated by congress; administer research grants and programs

Internal Revenue Service (IRS)

issue guidance and oversee payment of tax credits

Environmental Protection Agency

determine acceptable pollution limits from emitting sources; monitor achievement of given regulations

Ineffective policy levers

• setting prices (create hoarding/shortages/waste, hinder needed supply and demand responses)

• specifying or prohibiting the use of specific fuels and technologies (increase carbon emissions, increase land impacts)

Agency with most federal R&D funding

Department of Defense (DOD) - about half

Where does most of the DOE funding go to

nuclear energy management and defense (about half)

Clean Air Act (1970)

• regulates air emissions from stationary and mobile sources

• amendments required technology-based standards

• EPA received authority to regulate GHGs

Energy Policy and Conservation Act (1975)

• response to oil crisis

• mandated automible fuel economy standards (CAFE standards)

• authorized creation of a strategic petroleum reserve (SPR)

Department of Energy Organization Act (1977)

established Department of Energy to assist in the development of a coordinated national energy policy

Powerplant and Industrial Fuel Use Act (1978)

• prohibited the use of natural gas in new power plants

• led to the creation of 80 GW of coal plants

• Repealed

The Clean Power Plant

• EPAs first comprehensive effort to reduce carbon emissions by power plants

• goal to reduce carbon emissions to 32%

• provides incentives and resources for investments in wind and solar

• repealed by Trump

Policy

plan of action or a set of rules agreed by a political group or government

Politics

the activities of the government or people who try to influence the way a country is governed

Bipartisan Infrastructure Investment and Jobs Act (IIJA or BIL)

• unleashed tens of billions of dollars for climate and energy

• targeted early-stage R&D through large-scale demonstration and hydrogen hubs

Inflation Reduction Act

• mobilize U.S. federal government to reduce emissions for all sectors

• main sections: climate and energy, healthcare, and tax code changes

• add bonus tax credit value for domestic content requirements, prevailing wage requirements, apprenticeship programs, projects located in energy communities

• funding for disadvantaged and environmental justice communities

• established the Methan Emissions Reduction Program (MERP)

Production Tax Credit (PTC)

• a credit based on the production of electricity

• ongoing payment tied to the facility’s performance

Investment Tax Credit

• a tax credit based on how much money is invested

• one-time payment equivalent to reimbursing some of the capital expenses of a project

National Energy Dominance Council

• created by Trump

• to make America energy dominant

One Big Beautiful Bill Act

• undoing much of the Inflation Reduction Act

• cuts clean hydrogen production tax credit

• maintains credits for carbon capture and sequestration and existing nuclear

• rescinds major IRA climate programs and funds

• Expands fossil fuel supply by mandating frequent onshore and offshore leases sales

• repeals the IRA methane fee

• includes provisions to repair and refill the Strategic Petroleum Reserve