Legal and Regulatory issues

JEREMY BARNETT

Head of Regulatory St Pauls Chambers Leeds.

Subjects

• Early stage ‘battery farms

• Areas of interest for regulation

• International Harmonisation of regulation

• Key Challenges

Failure to Regulate

• New technology requires new legislation.

• Advances in science are quicker than advances in law –10 years to draft a new law or standard

• Consequences can be farcical

www.jeremybarnett.com

Early stage battery farms and Smart Grid

• The concept utilizes the EV battery waste stream as a means to store wind energy to increase wind energy capacity factor, improve utilization, and make more efficient use of EV batteries prior to recycling.

• Michigan an ideal location many of the battery and car manufacturers are located. Michigan is on track to meet a 10% renewable portfolio by 2015 with over 1100 MW of planned new wind projects to be installed by then

• Golden Valley Electric Authority in Fairbanks, a nickel-cadmium Battery capable of producing 27 MW of electricity for 15 minutes for backup in extreme cold.

• Sabano Llana, Puerto Rico lead acid battery. It was retired after only 5 years service and replaced in 2004.

• The batteries available for the battery farm will consist of reject and PC batteries. The rejected batteries are assumed to operate in the battery farm for ten years while the PC batteries are assumed to operate for five years.

Areas of interest for Regulation

– Materials and other Hazards– Service of the smart grid

• Load differences• Worst case scenarios - customer, home, cities

– Recycling• Lead

– coma, convulsions, mental retardation seizures & death

• Sulphuric acid: highly dangerous– Irritation, burns, eyes, upper respiratory failure

• China already has a culture re mopeds

– Nanotechnology risks• Human exposure(limited)• Recycling

Material and other hazards

• Short circuiting due to overcharging /discharging• Generation of gasses ( explosive atmosphere)• Lithium: overheating can cause explosions• Lead – acid spills• HASS and LASS

– 500 vehicle accidents per annum– 200 acid and non vehicle battery

• Ingestion by babies ( also magnets)• Precautions include

– Ventilation– Protective clothing– Manual handling regulations [FLT, carts, protective kit]

Consequences of failure of transmission grid

• Various forms of power outage– Transient Fault ( momentary ) ie faulty power line– Brown out drop of voltage ( as with lightening)– Blackout ( total loss of power)

• Millions of $ damage to computers, cell phones, dishwashers, water treatment plants.– Silicon Valley rolling blackout $75m losses– 2000 1 hour outage in Chicago – delay of $20 trillion trades– Sun Micro Systems estimates cost to the company of of $1m per

minute– 2003 blackout in north east USA cost $6 billion economic loss– US $4.5 billion of 2009 Recovery package for power grids– November 2006 extensive European Blackout following a

planned routine disconnection of a German powerline

Harmonisation of Regulation

• The need for consistency• Current , China and EU Smart grid and battery

regulations• Consequences of failure to regulate

– Segway

• OECD work• International Energy Agency Regulators Network• Recently General Electric signed a strategic cooperation

agreement with State Grid Corporation of China and the Chinese Academy of Sciences to jointly develop smart grid standards.

OECD work

• International work which is multidisciplinary

• Already established national frameworks ( chemical safety)

• Already established international frameworks

• OECD assists countries in implementation of national polices to guarantee responsible development of nanotechnologies

• Includes safety evaluation for human health and environmental safety

IEA Roadmap launch

• Announced in a speech by Chief Exec Mr Tanaka, 4th

April 2011.– Several large scale system wide demonstrations are

urgently needed– Greater international collaboration is needed

• Regulation – urgent work required to;– Develop regulatory mechanisms for deployment and costs

models/investment– Address regulatory and policy barriers that hinder

development of regional smart grids– Tackle Cyber security

• Potential to reduce global CO2 emissions by over 2 gigatonnes pa by 2050 ( largest possible benefit by far in China).

IEA Modelling Load Shifting using Evs in a Smart Grid Environment [2010]

• Predicts that EV’s will account for 10% of total electricity supply by 2050

• Using 2500 TWh ( new demand)

• Tremendous capacity – Vehicle2Grid

• Excellent statistical availability, to monitor use of the vehicles

• Main benefits would be seen in Western Europe and Japan. USA and China would see a reduction in CO2 emissions ( limited other benefits as both have high ‘middle load’ resources eg gas and stored hyrdo )

US: a piecemeal approach

• US Electric Drive Vehicle Deployment Act – to fast track deployment of ev and plug in technology.

• Allows the US Sec of Energy to award up to $300m to 10 deployment communities to serve as hubs for ev manufacturing and proving grounds for best practice

• IEA have published a Smart Grids Technology Roadmap – focus on regulation to drive investment rather than safety

The Global Smart Grid Federation

• Global stakeholder organisation committed to creating smarter, cleaner electricity around the world.

• US Gridwise Alliance, Korea Smart Grid Association, Indian Smart Grid Forum, Japan Smart Community Alliance, Smart Grid Australia, Smart Grid Canada and Ireland

• Policy issues are on the agenda – including reliability and accessibility.

IEEE working groups• Three Task forces

– Power Engineering looking at interoperability– Information Technology – privacy, security, safety – Communications technology. Who defines the attributes of information

• IEEE 2030.1 guidelines for EV’s in the smart grid. The most comprehensive document available deals with– End to end approach– Review of existing standards and new standards required– Standardisation for manufacturers.– Does not consider the wide range of regional differences.

• IEEE 2030.20 utility storage systems for transmission and distribution networks– Guidance on technical characteristics for storage systems– Integration with electric power infrastructures.

• http://smartgrid.ieee.org/

IEEE Smartgrid Conceptual Framework.

• End to end smart grid system

• 7 domains are all interrelated

Smart Grid Regulation in China

• Government energy organisations.– The state electricity regulatory commission founded in

2002– The National Development and Reform Commission

founded in 2003 – overall planning authority– National Energy Administration – headed by Premier Wen

Jiabao

• Electric Power Law 1996– protection for investors, consumers and producers

• China Energy Conditions and Polices 2007, includes development of an emergency response system for power safety and reliability

Other initiatives

• China Electricity Council 1998 – mission to enforce industrial management

• State Grid Corporation SGCC – has been active in developing smart grid standards

• 2005 law to increase solar and wind power to 10% of Chinas total energy consumption but recent report by State Electricity Regulatory Council - 50% of electricity produced by wind ended up unused.

• New regulation of wind through competitive bidding process rather than a feed in tariff – to cool down the market has caused nervous reaction from investors

China Batteries.

• Fact Sheet Kimbery Go and Ericka Scull 2008/9 identifies problems– 1,400 battery manufacturers, produced 30.5 billion

batteries in 2005, 13.9 billion used in China.– Lead batters for EV’s and e bikes result in 30% growth

in market per year– Lead acid batters in small scale operations – 50% of

the lead is lost into the environment– Lead battery waste can discharge into waterways and

soil– Problems with illegal dumping. Antimony has entered

the toy supply chain.

China Battery regulation

• Occupational Diseases Prevention and Control Act 2002 defined new Occupational Exposure Limits, introduced fines, revocation of licences and prosecution.

• 2006 report shows lead levels still increasing in battery factories and smelters.

• Despite battery recycling spots, recycle rates below 5% in main cities. Result new recycling plant in Beijing 2008 and more recycling bins.

Hangzhou Electric Taxi• Hangzhou is said to be a pioneer among Chinese cities in the

deployment of plug-in vehicles. In late January, the city announced that 15 electric Zotye Multiplas and 15 battery-powered Haima Freema would serve as taxicabs on its streets.

• Plans had called for that electric fleet to hit 200 units by year’s end, but the blaze is likely to alter the city’s scheme.

• A Zotye made electric taxi spontaneously exploded in Hangzhou approximately on April 13. Fire fighters supposedly arrived at the scene within minutes, but couldn’t control the blaze.

• According to the China Auto Web, the vehicle turned into a “fireball,” but luckily, the driver and two passengers escaped without injury. The exact cause of the fire has not been revealed.

• Chevrolet Volt – 2 unexplained fires in one garage being investigated in Barkemstead, Conneticut. GM say battery not to blame.

Zhejiang Online – Qianjiang Evening News Analysis: Sun Yan)car/2011-04-13/1500466.php

EU Regulation.

• Smart Grid

• Battery directive

• EU Scientific Committee on Emerging and newly identified health risks [SCENHIR]

– New technologies including nanotechnologies

– Physical hazards

– Cancer of endocrine organs

• EU Commission: Nanotechnology

EU Smart Grid

• No EU legislation but 2009 smart grid plan.– Aims to cut network losses, integrate renewable

sources and improve grid reliability

– Smart meters in 80% of homes by 2020

– Allocated E2billion public and private funds to enable 50% of Europe’s networks to run as smart grids.

• New strategy paper published 13.4.11– More strict SG regulations threatened if no increase in

smart meter rollouts.

– Possible incentives ( calls for a fair cost sharing model)

Batteries and accumulators and Waste Batteries and Accumulators

Directive 2006/66/EC• Restrictions on use of cadmium and mercury

in the design of new batteries.

• Labelling requirements crossed out wheelie bin sign and chemical symbols

• Registration of all producers - manufacturers and importers.

• Ban on disposal of untreated automotive and industrial batteries in landfill or incineration.

EU Battery Directive main thrust

• Mercury, lead and cadmium are hazardous –when burned cause air pollution. Nickel, cobalt and silver could be recovered.

• 2010 regulations that require retailer selling batteries to provide collection and recycling facilities for eventual disposal

• Covers AAA cells, mobile phone batteries, button cells in hearing aid/watches must be separated and placed in recycling bins to divert from landfill

• Target 25% ( from 3%) by 2012 and 45% by 2016• Obligations on retailers not onerous ( arrange

collection)

Nanotechnology

• Altair Nanotechnologies Inc. has produced a lithium-titanate battery that connects directly to the electrical grid and stands up to 5,000 cycles of charging.http://www.suite101.com/content/cars-as-part-of-the-electrical-grid-a206737#ixzz1MMitDH7X

• Definition of Nanoparticle

• EU: Scientific Committee on Emerging and Newly Identified Health Risks (SCENIHR)

Nanotechnology and Batteries• A123 Systems (AONE) uses proprietary nanoscale material

technology developed at and licensed from the Massachusetts Institute of Technology.

• A123 Systems is also utilizing its 215 employees for R&D on new generations of this core nanophosphate technology. It recently developed an ultra high power battery for the Vodafone McLaren Mercedes team that provides more than ten times the W/kg as compared to a standard Prius battery.

• Next Alternative Inc’s Carbon Nano Tube technology modifies existing battery design types (most kinds of commercially available batteries) to produce a battery that at the very least will recharge in less than 10 minutes and have an increased Reserve Capacity of at least 8 times the same unmodified battery.

• Shenyang National Lab for Material Sciences use nanotech to boost the life of rechargeable lithium batteries using a carbon nanotube anode coating that prevents losing charge capacity over time

• Carbon nanotubes are fibrous and research has shown may have similar cancer properties causing mesothelioma [2008]– not conclusive

The EU draft Definition of a nanomaterial (public consultation Oct – Nov 2010)

• A particle that meets at least one of the following criteria;– consists of particles, with one or more external

dimensions in the size range 1 nm - 100 nm for more than 1 % of their number size distribution;

– in one or more dimensions has internal or surface structure the size range 1 nm – 100 nm;

– has a specific surface area by volume greater than 60m2/cm3, excluding materials consisting of particles with a size lower than 1 nm.

• Particle: means a minute piece of matter with defined physical boundaries (ISO 146446:2007)

SCENIHR opinion (December 2010)• Whereas physical and chemical properties of materials may

change with size, there is no scientific justification for a single upper and lower size limit associated with these changes that can be applied to adequately define all nanomaterials.

• ‘There is scientific evidence that no single methodology (or group of tests) can be applied to all nanomaterials.

• Size is universally applicable to define all nanomaterials and is the most suitable measurand. Moreover, an understanding of nanomaterial is essential and the size distribution of a na number - size distribution is the most relevant consideration.”

• A distinction has to be made between intentionally produced, engineered manufactured, man induced or naturally occurring nanomaterials.

• For specific areas and applications modifications of any overarching definition may be needed due to specific requirements regarding risk assessment for regulatory purposes

Criteria for ‘Nanomaterial’• Possible criteria for defining a nanomaterial in a regulatory

setting Size is obviously the most important criterion as it is universally accepted and is applicable to all nanomaterials

• But Other factors/issues may be considered ;– Surface (chemical composition/coating)– Physical-chemical properties

• Crystallinity, crystalline phase• Photocatalysis• Zeta potential• Redox potential

– Persistence– Organic versus inorganic (“soft” versus “hard”)– Nanocomposites

OECD Working Party on Manufactured Nanomaterials

- Concentrates on human health and environmental safety implications of manufactured nanomaterials

- Aims to ensure that the approach to hazard, exposure and risk assessment is of a high, science based and internationally harmonised standard

- Seeks to promote international co operation on the human health and environmental safety of manufactured nanomaterials

- Involves the safety testing and risk assessment of manufactured nanomaterials

Key Challenges • Speed of adoption of new technology

– Regulation follows 5 years after the breakthrough

• International activity– Requires coordination in designing regulation– Safety Testing – as shown by Professor Wen ( Sodium

Sulphur)

• Monitoring is a massive undertaking.– Scale of battery production will escalate.– Development of wide variety of types of batteries [eg China

prefers chloride batteries]– Manufacturers. Cross border regulation of multinationals– Disposal ( Wee) - dumping in Africa– Smart grid

• Operation of the smart grid facilities• Interruption of service

Even the police don’t know what the law is!

www.jeremybarnett.com