Bridging Conservation and Efficiency: New Bat Habitat Plan Takes Flight

Rhea-AI Summary

Duke Energy is developing one of the largest utility-based Habitat Conservation Plans (HCP) focusing on bat protection and vegetation management. The initiative aims to balance necessary grid maintenance across 380,000 miles of right of way with environmental conservation. The U.S. Fish and Wildlife Service awarded Duke Energy a $1 million grant for 2024-2025 to support this project. The plan addresses eight federally endangered or threatened bat species affected by white-nose syndrome and habitat loss. The company expects permit issuance by 2026, with the conservation plan lasting up to 30 years.

Positive

• Received $1 million federal grant for conservation efforts
• Developing innovative industry-leading conservation approach
• Plan will streamline operations and help control costs
• 30-year permit will provide long-term operational certainty

Negative

• Extended timeline until 2026 for permit implementation
• Significant operational constraints due to endangered species protection requirements

Insights

Environmental Policy Analyst

This conservation initiative, while environmentally commendable, has minimal direct financial impact on Duke Energy's operations or stock value. The $1 million grant from USFWS is negligible relative to Duke's market cap of $87.8 billion. However, the Habitat Conservation Plan (HCP) could streamline future vegetation management operations, potentially reducing regulatory compliance costs and project delays across Duke's 380,000-mile infrastructure network.

The 30-year permit timeframe provides operational certainty and could help mitigate environmental compliance risks. This proactive approach to environmental management may also strengthen Duke's ESG profile, though the impact on share price will likely be minimal. The initiative primarily serves to maintain regulatory compliance and operational efficiency rather than generate new revenue streams.

11/12/2024 - 09:20 AM

Duke Energy's science-backed conservation plan aims to help endangered bat species through land management, conservation and more

NORTHAMPTON, MA / ACCESSWIRE / November 12, 2024 / Duke Energy

By Emry McKinney | illumination Contributor

If bats make you think of Halloween and spooky movies, Brett Hartis, lead scientist in Duke Energy's Environmental Sciences group, would like to change your mind. "Bats aren't traditionally the most beautiful or popular animals. But they're amazing creatures that are a big part of our ecosystem, especially regarding pest control."

Scientists estimate that insect-eating bats save U.S. farmers billions of dollars each year by reducing crop damage and limiting the need for pesticides. And over 300 species of fruit depend on bats for pollination.

What's more: Bats are now facing new, unprecedented threats. That's why Hartis is leading a project at Duke Energy to develop a new approach to protect them. Known as a Habitat Conservation Plan (HCP), the project will create one of the largest utility-based HCPs in the country to focus on bats and vegetation management.

Why a new approach is needed

Vegetation management, including tree trimming and removal, is necessary as the company makes strategic grid investments to enhance reliability for 8.4 million electric utility customers across six states. But trees are also a crucial part of the ecosystem and natural beauty of our service areas, as well as habitats for many species including bats. When not hibernating, many live in trees and raise their young in the crevasses of the bark or within branches and leaf clusters.

"It's not either/or. As a company, we have to do both," said Scott Fletcher, manager of Duke Energy's Natural Resources group. "Advancing our clean energy transition requires the management of vegetation and a continued commitment to environmental stewardship and biodiversity."

In the past, only a few species in the company's service area were designated as endangered by the U.S. Fish and Wildlife Service (USFWS), so Duke Energy could address potential impacts by seasonally restricting work and obtaining permits on a project-by-project basis. That has changed as scientists monitor substantial declines in bat populations.

Eight species are now categorized as federally endangered or threatened. White-nose syndrome, an invasive fungal disease, is a leading cause of this decline.

"Today, the bats we need to protect are potentially everywhere and nowhere at once," Hartis said. "Some bat species' range includes nearly the whole Eastern United States, and pretty much any tree could be their home."

"Given the increased scope of the problem, our old approach of tree-by-tree avoidance simply isn't feasible," Fletcher added. "It wouldn't be good for our customers, good for our crews, or for the bats. We realized that we need to develop a new way forward."

What makes an HCP different?

The company realized a broader, more inclusive approach was needed, one that would protect covered bats while also facilitating necessary utility work along Duke Energy's more than 380,000 miles of right of way.

"We are developing an HCP because it is a comprehensive, big-picture approach," Fletcher said. "It's a cooperative effort between Duke Energy and USFWS, and a great example of bringing the private and public sectors together to work on challenging problems."

Cooperation and coordination are essential as the company sets an ambitious goal to avoid, minimize and mitigate impacts to covered bats, as well as support for long-term bat conservation through land management, conservation and protection.

A plan of this scope doesn't happen overnight. The company began initial outreach to stakeholders and data assembly in late 2023. Now they are in the process of collaborating with USFWS and will be working through the service's formal public involvement process until mid-2025, with a goal of permit issuance by 2026.

"That may seem like a long timeline, but it's very reasonable considering the scale of the project," Hartis said. "You have to remember that this HCP is very large and geographically diverse - it's designed to cover all parts of our service area, from the Midwest to the Carolinas and Florida."

Fletcher added, "Plus, the permit will last up to 30 years. That will mean greater certainty and efficiency for all parties. Having a plan like this in place will help to streamline our work, which in turn helps to control costs and speed advancements for our customers while also creating benefits for bats."

Endangered Species Conservation Fund

Showing their support for the project, the U.S. Fish and Wildlife Service awarded Duke Energy a $1 million grant for 2024-2025, with the option to reapply annually, to facilitate the development of the HCP.

Leading the way

Innovation is a key component of Duke Energy's planning for the future - but innovation isn't just for power plants or grid technology. Innovative re-thinking is helping the company develop new comprehensive planning to protect bats while also making improvements to better serve customers.

The project could be a step forward for the utility industry. As one of the first utilities to pursue an HCP specifically for bats and vegetation management, Hartis said the company could establish an industry standard.

"It's incredibly exciting to see Duke Energy take on something of this scale," he said. "And I love making a difference for endangered bat species - especially because they are so frequently misunderstood. Hopefully, everyone will get more of an opportunity to get to know and appreciate bats."

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SOURCE: Duke Energy

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FAQ

What is Duke Energy's (DUK) new Habitat Conservation Plan for bats?

Duke Energy's Habitat Conservation Plan is a comprehensive conservation initiative designed to protect endangered bat species while managing vegetation along their 380,000-mile utility corridor, expected to be one of the largest utility-based HCPs in the country.

When will Duke Energy (DUK) implement their bat conservation permit?

Duke Energy expects to receive the permit by 2026, following a formal public involvement process with the U.S. Fish and Wildlife Service through mid-2025.

How much funding did Duke Energy (DUK) receive for their bat conservation plan?

Duke Energy received a $1 million grant from the U.S. Fish and Wildlife Service for 2024-2025, with the option to reapply annually.

How long will Duke Energy's (DUK) bat conservation permit last?

The Habitat Conservation Plan permit will last up to 30 years once implemented.