Energy Policy Now: Distributed Energy’s Wholesale Opportunity

Featuring Ari Peskoe, Senior Fellow in Electricity Law at the Harvard Law School Environmental Law Policy Program Initiative

November 14th, 2017

Distributed energy resources – namely rooftop solar and, increasingly, battery storage – are becoming an increasingly important part of the U.S. electricity system.  Their next big step may be participation in wholesale electricity markets, the traditional domain of large-scale generators like nuclear, natural gas, coal and, more recently, wind power.

Yet the rules that govern competitive electricity markets were designed with big, traditional generators in mind, and significant rule changes will be needed before distributed energy can meaningfully participate.

In the latest episode of the Kleinman Center’s Energy Policy Now podcast, Ari Peskoe, Senior Fellow in Electricity Law at the Harvard Law School Environmental Law Policy Program Initiative, discusses the wholesale opportunity for distributed energy, and offers a look at the market and policy hurdles that currently prevent their participation in wholesale markets.

Ari Peskoe is a Visiting Scholar at the Kleinman Center for Energy Policy and Senior Fellow in Electricity Law at the Harvard Law School Environmental Law Policy Program Initiative.  Earlier, as an energy attorney, he litigated cases before the Federal Energy Regulatory Commission.

The Energy Policy Now podcast, now in its second season, offers insights from Penn experts, industry and policy leaders on the energy industry and its relationship to environment and society. 

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A Founder With a Vision: Triple Bottom Line Sustainability at Virgin Group

Co-Authored by Joy De Bach (Virgin Atlantic, Regional Commercial Director, East Region), Gabriela Salas (Virgin Atlantic, Global Sales Executive, East Region), & Karen Titus (Delta Air Lines, National Sales Account Executive, Global Sales)

October 18th, 2017

Being a billionaire has afforded Sir Richard Branson many opportunities in life, but after decades of disrupting some of the world’s biggest industries, his latest passion projects have less to do with flying planes and mobile phones and more to do with saving the world.  As employees of Virgin Atlantic and Delta (Virgin’s partner airline), we were fortunate to be able to see Richard at the Authors@Wharton Speaker Series yesterday, and were once again reminded of what an entrepreneurial spirit and compassion for the environment and human rights can do to change the world.

Having recently experienced the devastation of Irma on his Necker Island residence, climate change literally hit Richard, his family, and his employees with the strength of a hurricane.  But rather than dwell on the negative, he spoke of rebuilding infrastructures throughout the islands to come back better than ever before, and views climate change as ‘one of the great opportunities for this world’, encouraging the business sector and entrepreneurs globally to tackle the issues of global warming.

When asked by host, Professor Adam Grant, what his next venture will be, Sir Richard emphasized that he’s setting his sights on the future, focusing on non-profit initiatives to tackle carbon emissions, global human rights, and creating sustainable fuels, just to name a few.  Now, you might think that a mogul with three airlines in the Virgin portfolio which guzzle fuel crossing oceans and continents and saving the environment shouldn’t necessarily be in the same sentence, however Richard and his Virgin Group are achieving just that.  Just take a look at some highlights from the 2017 Virgin Sustainability Report:

  • 8% reduction on total aircraft emissions from 2015 to 2016
  • Continuation of partnership with LanzaTech to create the world’s first commercially viable, low carbon jet fuel from waste carbon gases
  • Installation of solar energy powering an entire secondary school campus and two water systems in Kenya
  • Review and refresh of Virgin’s Responsible Supplier Policy based on international standards of human rights
  • Announcement of a further investment in efficient aircraft with 12 A350-1000s to become part of our fleet from 2019

Yesterday, we were reminded of what a cool boss we have.  We’ve been fortunate to work for and with a man whose vision and compassion could one day further revolutionize the way people travel, consume energy and communicate, as he’s already done for decades.  For the young entrepreneurs of tomorrow, who were able to see Richard speak, we hope some of them heard his rallying cry and will join him in changing the world.

 

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Energy Policy Now: The Future of the EPA and Clean Power

Featuring Gina McCarthy, former EPA Administrator

October 7th, 2017

This week the Kleinman Center for Energy Policy honored former EPA Administrator Gina McCarthy with its annual Carnot Prize in celebration of her contributions to environmental policy and to securing a sustainable energy future during her tenure with the EPA.  While visiting the Center McCarthy sat down with the Energy Policy Now podcast to discuss the direction of the EPA under current Administrator Scott Pruitt, likely legal challenges to Pruitt’s effort to roll back the Clean Power Plan, and the larger issue of climate denial in Washington.

The Energy Policy Now podcast, now in its second season, offers insights from Penn experts, industry and policy leaders on the energy industry and its relationship to environment and society. 

Economic and Health Benefits of Sustainable Innovation in Health Care

By Philip Susser and Govind Mattay; Posted October 2nd, 2017

With the devastating impact of climate change beginning to hold a more tangible space in the global consciousness, there is an ever-pressing need for the healthcare sector to innovate and adapt to a new era of environmental accountability. While accounting for 17% of the GDP, the US health care system is also responsible for 10% of greenhouse gas emissions, 12% of acid rain formation, 9% of criteria air pollutants. The population health impact of these perverse environmental contributions are staggering. A 2016 study found that 470,000 disability adjusted years of life (DALY’s) were lost associated with health care related pollution. To put that in context, preventable medical errors resulted in a similar number of DALY’s lost – a source of mortality that has historically received much negative press, and was consequently addressed in the Affordable Care Act.

The major challenge that stems from this particular source of morbidity and mortality is that the health care system is inherently complicated, with a supply chain that includes many different products coming from a wide variety of producers. Other industries have had an easier time adjusting due to the greater simplicity of their production processes. These industries have successfully addressed issues of supply chain management by creating certain “indexes” to track the impact of their products on the environment. The Higgs index, developed in 2012, is used by fashion and footwear companies to track a product’s environmental impact. Mindclick, a supply chain sustainability company, is working to develop a similar system for the healthcare system.

A culture shift in medicine requires hospital executives to recognize the immense health, environmental, and surprisingly, economic benefit of moving towards more sustainable health care delivery. Hospitals have begun to take steps to incorporate sustainability into their models by lowering anesthetic gas waste, minimizing food waste, single use reprocessing devices, and reducing operating room packaging. A 2012 commonwealth fund showed that up to $15 billion in savings could be achieved by taking measures such as these. It will be increasingly important to eliminate the commonly held misconception that these types of measures increase costs — and are only meant for brand image —, and solidify that they in fact dramatically reduce operating costs.

The reprocessing of single-use medical devices has proven to be very successful in both reducing environmental footprints and operating costs for hospitals. Single-use medical devices include surgical instruments such as scalpels, forceps, and scissors, as well as cardiac catheters, pulse oximeters, and tourniquet cuffs. The disposal of these devices is highly regulated and incurs costs that are up to 10 times greater than the disposal of regular waste. Instead of disposing single-use devices, many hospitals are deciding to send them to third-party vendors that reprocess the devices by sterilizing, testing, and repackaging them. The reprocessing process is also highly regulated by the FDA, which ensures the safety of using the reprocessed devices. Many devices can be reprocessed multiple times. Once reprocessed devices can no longer be used, most are recycled instead of being sent to a landfill. The beneficial effects of this practice are enormous. For a 200 bed hospital, reprocessing can eliminate up to 15,000 pounds of landfill waste and cut costs by a million dollars per year.

Hospitals have also begun to focus on reducing energy consumption, as current estimates indicate that hospitals use about 8% of the nation’s energy. Since lighting contributes to a significant portion of hospital’s energy costs, many are beginning to look toward alternative, efficient options such as LED lighting. Hospitals have also invested in annual infrared scanning inspections to identify faulty electrical circuits, which can unnecessarily consume energy. Up-front investments such as these can significantly reduce energy consumption to both reduce costs and improve sustainability for hospitals in the long-term.

The Healthcare Sustainability Club aims to educate future leaders in healthcare about the detrimental environmental effects of current practices and to introduce potential methods to improve the environmental impact of the healthcare industry. Our goal is to get students from a variety of backgrounds to begin to discuss the economic and environmental benefits of sustainable practices. We want future physicians and hospital executives to prioritize environmental sustainability and to innovate new ways to improve our environmental impact.

 

 

IS THIS THE FINAL GOODBYE TO MY CHILDHOOD?

By Saloni Wadhwa, September 25th, 2017

On a bright Sunday afternoon, a long time ago, a young girl, about 10 years old, jogged along a quiet street with a robust and large Labrador retriever leading her. Her father walked behind laughing merrily at the duo’s silly antics. “Scruffy!” she yelled in desperation, praying that her arm wouldn’t pop out of its socket with the leash strapped on to it. The large dog halted and started sniffing a patch of green grass, just as he always did. She quickly handed the leash to her father and slipped her hand into his warm, loving one. The little girl loved this routine; especially the cool shade that the trees on the street provided her. She loved the perfect arch that the trees made, creating a tunnel of lush green in a myriad of hues. The spectacle of the Gulmohar tree during summer engulfed by fiery red flowers which would later fall, creating a “red” carpet, of sorts was indeed a sight to behold!

That perfect story was my childhood. I grew up in a quiet, peaceful city called Mysore (Mysuru now). Mysore: with its awe-inspiring Chamundi Hills, its historic architecture in the form of the Mysore Palace, and its renowned zoo: the Sri Chamarajendra Zoological Gardens, is a world-famous heritage city. The city has always had an old-world charm to it. It is a mix of the colonial world with the architecture of the Rajas of India. It is surrounded by National Parks and Wildlife Sanctuaries and is very close to the famous Western Ghats. Among all of the things that I admired about this city, the one thing that I prized was its weather. Of course, like any normal city, there was monsoon, summer, winter, autumn and spring. However, none of these seasons had extremes and thus we always enjoyed a pleasant climate all through the year.

Fast forward to today: I have read articles almost every summer of “The Highest Temperature” being recorded through the history of summers. I have seen the KRS Dam Reservoir: Mysore, the nearby Mandya and Bangalore’s major source of water, plunging into oblivion due to delayed monsoons. So much so, that the headlines in local newspapers were pictures of an omelet being made directly on the scalding tar roads of the city! Most importantly, I too have personally felt the changes: I have seen the extremes that I prided Mysore for never having. With all of these changes that are slowly and subtly occurring, I wonder if it is our fault. My beautiful tunnel of trees, one that I cherished as a child, and one that I knew had the supernatural ability to secure and protect me, the one that was the reason my parents bought our house, “Blossom” now just remains a pocket of trees outside my house. All of the other trees have vanished; brutally chopped because they were causing problems with overhead communication signals. The birds that flocked my street and filled the air with their musical sounds have been silenced. Scruffy does not pause to sniff anymore. The street increasingly looks barren, as do other parts of the city. Does development mean a goodbye to nature? Can development not occur sustainably, hand-in-hand with the environment? And most importantly, is this the end of my childhood?

Smart Air, Smart City

By Julie Spitkovsky, Netronix, Inc., September 24th, 2017

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Internet of Things (IoT) platform provider Netronix, Inc. and Airthinx Inc. a leader of indoor air quality monitoring, are working together to provide cities around the world with a low cost cloud based solution designed to monitor air quality across schools, universities, hospitals and work spaces. The advantages of cloud based solutions are mapping, tracking, identification of pollutants, measurement of pollutants, data analytics using historical trends, and data mining. Cities stand to benefit from ubiquitous long term monitoring and management of air quality, in real time with instantaneous data available for quick city wide propagation, like geo-mapping incident reports of high pollution areas.

Conventional Methods

Municipalities are hard pressed to find low cost solutions. Conventional methods for collecting indoor air quality data relied heavily on expensive stationary devices. In the United States, for example, the federal government has a network of sensors on towers monitoring particulate matter. The cost of each sensor is $100,000. While in Edinburgh, the city had a single station monitoring PM 2.5 as of 2013. Thus data is collected from only a few instruments but is representative of a broad geographic area.

Interim Solutions

Moving away from conventional methods, many cities are implementing short term initiatives as first steps towards smart city transformation. In 2014, Chicago deployed 50 nodes mounted on lampposts developed with Argonne National Library and the Chicago Department of Innovation and Technology. Barcelona deployed a smart lighting system with embedded air quality sensors that relay information to city agencies and the public as part of their smart city initiative costing in total $230 million. Boston, Los Angeles, and Miami installed park benches equipped with a solar panel that channel electricity via USB ports to charge. Denver in partnership with Google and the Environmental Defense Fund (EDF) attached mobile sensors to cars throughout a city, collecting 150 million data points over 750 hours of driving time, creating a street level air quality map of the city. Dublin fitted 30 bikes with air sensors measuring carbon dioxide, carbon monoxide, smoke, and particulates.

Last year, London attached air quality sensors to ten pigeons to monitor air quality over three days of flights. Louisville gave 300 local residents a sensor that fits on top of their inhaler, tracking locations of inhaler use to help residents manage asthma, collecting 5,400 data points over the 13 months, and identifying hotspots with high inhaler use in order to pinpoint areas with particularly bad air quality.

Philadelphia Transforms

Philadelphia begins the smart city transformation process with its most recent initiative to release open data from city departments. Mayor Kenney also points to ownership and accessibility of light poles and city buildings which can accommodate sensors and wireless access points spread throughout the city. With institutional players like Drexel, Penn, Wharton, CHOP & Comcast, the infrastructure to implement smart city solutions is in place.

Dr. Nasis, founder and CEO of Netronix, Inc. and faculty member of electrical & computer engineering at Drexel, shares insight into the transformation process. “A smart city is a segment of IoT. Many have looked at the smart city as a vertical market on its own, when actually it is a horizontal market with many verticals below it, such as safety, environmental, healthcare, energy, and transportation.”

In the environmental vertical, cities can monitor air quality, water quality and weather. Across the safety vertical, meters already exist that detect gunshots to determine the precise location of the incident helping address crime prevention. Energy, another vertical, can be optimized in street lighting and power plants to keep consumption down. And in the transportation vertical, parking, bus, and traffic can be monitored to enhance quality of life.

‘Many have looked at the smart city as a vertical market on its own, when actually it is a horizontal market with many verticals below it.’

A significant challenge of smart cities is having the tools to address compatibility within and between each vertical. Dr. Nasis cites a “holistic approach, rather than filling in the holes.” The smart parking meter experiment is an IoT solution but also an example of ‘filling in the holes.’ Without an overarching smart city horizontal in place, the initiative did not work. Dr. Nasis concludes, “for a successful smart city, each vertical and the needs of each vertical must be defined, and that requires systemic planning.”

Netronix Ventures, LLC, a subsidiary of Netronix, based out of Philadelphia, aims to start up 100 companies in the next decade using Netronix’s IoT platform. Smart city solutions can be developed in record time, saving 75 percent of the time and costs associated with the development and production of devices and services using conventional methods.

Information Gap

The IoT is about sharing things, interacting, and learning. An information gap leads to a certain kind of decision making. A smart platform creates opportunities to make more informed choices when investing in the city. The smart part is how you collect and make use of the intelligence. By breaking the information gap, the result is a better understanding, more thorough assessment of exposure, heightened awareness, and a complete picture of the data.

Today, the means for large scale and rapid deployment of tens of thousands of devices transforms air quality monitoring and facilitates the collection of quantitative data in any infrastructure. As a direct result of the IoT, a new paradigm emerges in air quality monitoring leading to the much-needed democratization of air quality data. Knowing about the quality of the air you breathe or the water you drink pushes people to take social responsibility.

Financial Feasibility

A significant cost to a smart city transformation is the installation process. 70 percent of city officials say budget constraints are the greatest barrier to adopting smart city solutions. In many cities, a complete overhaul poses a lofty price tag associated with the redesign of buildings and infrastructure. A cloud based solution with deployment of IoT enabled devices eliminates the once costly installation, configuration and calibration associated with industry reference instruments.

Such a significant reduction in overhead and cost per unit lowers the price of the device to a fraction of industrial reference instruments. Cities benefit from investment because there is no need to redesign infrastructure in order to adopt IAQ solutions as part of a widespread smart city plan. One incentive is real time data that anticipates future needs. For example, with built in GPS, the locations of sensors take into account the points in the city with the most exposure to air quality hazards, protecting city dwellers and workers. The data can also be reviewed by a team to determine appropriate next steps. Monitoring air quality becomes financially feasible at room level in any infrastructure.

Smart Sensors

But even with such advancements, few sensors produce reliable enough data to be used in studies or by regulations. In comparison to static monitoring, continuous monitoring enhances high temporal-spatial resolution and variability of air pollution, which so far has been difficult to address. These characteristics, the level of accuracy, precision and identification of microscopic particles in the air, are distinguishing characteristics of air quality monitors in the market. The ability to continuously monitor air quality levels in any infrastructure while preserving the integrity of the measurements, and producing never before seen analytics and information, creates better indoor environments, everywhere in the world.

 

Dr. Vasileios Nasis will be presenting at the Wharton IGEL & SUEZ Conference – Smart Utilities: Bridge to Smart Cities of the Future on September 27.

 

 

Energy Policy Now Podcast: Where Coal Mining Brings Environmental Benefits

September 19, 2017

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Can tightly regulated coal mining help undo decades worth of environmental damage caused by the coal industry?  A Pennsylvania DEP official, and a mining executive, discuss efforts to remediate water and land in the state’s Anthracite coal region.

Pennsylvania’s economy has long been tied to its coal industry.  In the 19th century the state’s pioneering coal companies fueled America’s industrial revolution, and thousands of mining sites opened over the decades that followed.  Yet, over a century later, many of Pennsylvania’s coal mines have closed as the resource’s primacy has waned.

John Stefanko, Deputy Secretary for the Office of Active and Abandoned Mine Operations at Pennsylvania’s DEP, and Greg Driscoll, Chief Executive of Blaschak Coal Company, look at the environmental damage that remains after mines have been abandoned, and on cooperation between today’s coal industry, and regulators, to clean up some of that damage.  The focus is on the Anthracite coal industry of Northeastern Pennsylvania, where the remains of a once large coal industry attempts to find profits, while bearing costs for cleaning up the damage of past decades.

John Stefanko is Deputy Secretary for the Office of Active and Abandoned Mine Operations at Pennsylvania’s Department of Environmental Protection. 

Greg Driscoll is President and Chief Executive Officer of Blaschak Coal company in Mahanoy City, Pennsylvania.

The Energy Policy Now podcast, now in its second season, offers insights from Penn experts on the energy industry and its relationship to environment and society.

Current trends in green and healthy real estate

By Joyce S. Lee

September 9, 2017

“Both nationally and internationally, GRESB has not only changed the conversation about investment reporting but also helped start many conversations by giving visibility to a relevant set of data not previously assembled for investors,” says Andrew McAllan, Head of Real Estate Management of Oxford Properties Group based in Toronto, Canada.

MNP Tower, Vancouver, Canada

Image 1: MNP Tower entrance, credit: Oxford Properties Group

The global property and infrastructure sectors are at the heart of many major investment decisions, including urbanization, demographic change, resource constraints, environmental impacts, political climate and emerging technologies. According to the World Bank, the urban population has reached 54.3% of world population in 2016. The design, construction and operation of current and future assets reflects, drives and potentially mitigates the impact of all of these issues on individuals, communities and society at large.

GRESB assessment started in 2009 with a healthy uptake of large pension funds and their fiduciaries. This portfolio level assessment has become a global benchmark for sustainability performance used by leading private equity firms and listed property companies. GRESB has grown to define Environmental Social and Corporate Governance (ESG) concepts for the real asset sector. The assessment systematizes information for analysis and furthers the understanding across investment portfolios. The GRESB assessment collects information from funds and assets, including data on performance indicators, such as energy, greenhouse gas emissions, water and waste.

The latest year of reporting (2017) reflected 850 funding entities (up from 759 last year) in 63 countries and a total of US$3.5 trillion in assets (up from $2.8 trillion last year). In 2016, even a small single digit percentage reduction of an immense portfolio in each of the reporting areas is significant: carbon reduction is equivalent to 90,197 cars off the road, water reduction is equivalent to 1,200 olympic pools, and waste reduction is equivalent to 14,963 truckloads. This transparency of the real asset portfolio could factor into the investors’ risk assessment and overall financial performance projection.

In 2016, GRESB initiated the Health and Well-being Module in response to rising healthcare costs and increased interest in productivity. The ten survey questions were developed among a global working group of experts: It focuses on needs, strategies and access. One snapshot of the 2016 result is already giving new insights to companies: greater impact could be achieved when the leaders in sustainability, real estate and corporate wellness are in good communication internally. The current year results will be discussed in an upcoming article.

While top level changes or grassroot initiatives are critical, actual implementation are often realized by facility managers who intimately understand the pulse of their physical assets like a living organism. An organization that fully engages this group of professionals is the Building Owners and Managers Association (BOMA). Several BOMA members echo that survey frameworks like GRESB are essential to moving the industry forward as each evaluation garners new motivation and opportunities for reflection and improvement. Many forward looking managers have day-to-day oversight of waste generation, energy and water consumption,. The opportunity to collaborate effectively with human resources to promote health offers yet another upside.

In a recent luncheon with Building Owners Managers Association (BOMA) Philadelphia’s leaders, including its co-chairs of the Sustainability Committee, the conversation circled around education and engagement. As Benjamin Franklin had said, “Tell me and I forget; Teach me and I remember; Involve me and I learn.” Before the formation of this Committee, green cleaning was a leading edge concept. Today, one has to alter a standard template to purchase “non-green” cleaning products. Benefits of green cleaning are accrued to all levels of staff, especially to those who perform cleaning tasks coming in regular contact with these products.

While every sustainability task force has checklists of energy and air quality, BOMA Philadelphia also notices the growing popularity of yoga classes and walking clubs that are initiated by building occupants. Building managers that are forward looking even host stair climb charity events to not only increase physical activity of their employees, but also further engage the local public safety departments, such as fire and police, to enhance public relations and build community trust. Incidentally, these are all pathways towards achieving WELL certifications which place a major focus on health and well-being.

Is health and wellness pervasive enough among building owners and managers? “We see that after providing hand sanitizers and high efficiency filters, building managers are actively seeking all good ideas that are both implementable and have a positive impact on tenants and occupants,” says Kristine Kiphorn, Executive Director of BOMA Philadelphia.

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Image 2: CBRE Vancouver Office, credit: CBRE

At CBRE, a global real estate services firm, in Vancouver, a stunning view of the water and a biophilic design feature in its lobby together make an inspiring arrival. In order to raise the indoor quality level, CBRE chose only furniture reaching Green Guard Certification gold level. The risers in the company’s internal stairs, a physical activity feature, read “There is no elevator to Success. You have to take the Stairs”. Inside the base building, the MNP Tower in downtown Vancouver, the fire stairs are equally animated with paint colors to make stair climbing a pleasurable experience. On a sunny day, building tenants could be seen on the property premise competing in intramural games of hockey with many happy onlookers from the sidewalk. This Oxford Properties Group building is managed by active BOMA members.

It is not hard to see a larger trend unfold. As trillions in assets move from the current generation to younger, more sustainably oriented investors, an increased attention to environmental social responsibility and governance reporting measures has incentivized companies to revisit strategies and to boost performance in areas deemed important by this generation. This trend is particularly relevant for business school graduates who plan to work in private equity, real estate investment trusts (REITs) or public companies with physical assets.

Business school students and graduates are investors in their own future. In an ESG report of a potential employer, the performance metrics can speak loud and clear of the companies’ priorities and missions. Other policies towards transparency, travel, sleep, exercise, and nourishment could affect stress level on the job. If the quality of the workplace matters, look for those telltale signs of green and healthy real estate, such as LEED and WELL certifications.

The concept of creating a sense of place in companies and offices becomes a new paradigm to attract the best talents. In the age of connectivity, business school graduates can truly work anywhere. The workplace of choice is entering a brave new world.

 

 

JoyceLeeheadshotAuthor’s bio

Joyce Lee, FAIA, LEED Fellow, is president of IndigoJLD providing green health, planning and design services on exemplary projects. She is among a group of 300 LEED Fellows worldwide. In addition to being on the Penn faculty, Joyce has affiliations with Penn Center for Public Health Initiatives and the Penn Urban Health Lab. Joyce served under Mayors Giuliani and Bloomberg, as Chief Architect at the New York City OMB. The Active Design Guidelines, a publication she co-authored, had won recognition from the Robert Wood Johnson Foundation as well as the Sustainable Building Industry Council., She has been a subject matter expert in the development of a GRESB module..  Her practice continues to assist cities to establish 2030 Districts and assist companies to reach sustainability and wellness goals.

 

Hurricane Harvey – More exposures in the mix than just water and wind!

The full damage and devastation caused by Hurricane Harvey is not yet known and will likely be felt for months to come. While the most pressing issues facing Insureds at this time are the devastating impacts of water and/or wind damage, we all learned some unfortunate lessons from Hurricane Sandy and Katrina specifically caused during storm surges and/or flooding (and after the water recedes) which lead to unexpected clean-up costs and/or pollution legal liability issues (including but not limited to):

  • Historic/Pre-Existing Contamination – Properties having historical or pre-existing contamination could be disturbed and, subsequently, carry pollutants to multiple locations resulting in the cross-contamination of various parts of the property and/or neighboring properties.
  • Landfill Containment Breaches – Heavy water infiltration can cause landslides carrying with it pollutants and/or contaminated waste water into nearby waterways or sensitive third-party receptor areas.
  • Floating Drums of Chemicals and Storage Tanks – Drums containing hazardous waste and storage tanks containing oils and other chemicals could be raised afloat and damaged during transport from their original locations, thereby distributing pollutants downstream.
  • Sewerage Authorities System Back-ups – Sewerage authorities have limited storage and processing capacity, therefore, large unanticipated volumes of water could result in the overflow and/or release of raw untreated sewage.
  • Mold Damage – Mold can grow at alarming rates given proper moisture, temperature range and food source (cellulose-based substrate) following a saturation event.

While property policies may include some pollution-related coverage, it’s imperative that insureds, if they have environmental insurance policies, place their carriers on notice, carefully follow the environmental claim reporting instructions and fully understand any “emergency response” coverage provisions and policy nuances.

It’s prudent for insureds to report their environmental claim to their carriers immediately. If cost estimates for remedial activities are available, they should be sent to the carrier for approval. When submitting proposals, request that the carrier approve the costs as “reasonable and necessary” pending a coverage determination.

 

This piece was originally posted as an op-ed for the Willis Towers Watson Wire. That article can be found here.

 

35611dba53fbc67f528efedc5630ec43Anthony Wagar

Anthony is a Executive Vice President and the National Sales Leader for Willis Towers Watson’s Environmental practice based in New York. He has close to 20 years of experience from a regulatory, underwriting and brokerage perspective. He blogs on matters relating to environmental risk, exposures and insurance.

Energy Policy Now Podcast: Electric Vehicle Market Trajectory

By John Paul MacDuffie
September 5th, 2017

The electric vehicle market has become the center of attention for the automotive industry, with overwhelming demand for Tesla’s new, more affordable Model 3 EV as just the latest sign of market enthusiasm.  Yet many perennial EV challenges remain, notably high costs and scarce charging infrastructure.  And nationally, support for EV’s has become more fragmented and, quite possibly, politicized.

In the latest episode of the Kleinman Center’s Energy Policy Now podcast, Wharton management professor and automotive expert John Paul MacDuffie offers insights into the EV market’s growth trajectory, and talks about the likelihood of the market reaching a tipping point.  In the process he tells what recent developments, such as recent announcements from France and the UK to ban gas and diesel car sales within a generation, could indicate for global EV market growth.

The Energy Policy Now podcast, now in its second season, offers insights from Penn experts on the energy industry and its relationship to environment and society.