RGGI Needs Rule Fixes to Meet EPA Targets: Study
RGGI lawmakers must adjust the scheme’s emissions trajectory and change the cost containment reserve rule if they want to ensure that RGGI states meet the EPA’s 2030 power plan CO2 targets, a new report by clean energy think-tank Acadia said.
As many as 41 of the 50 US states are considering using some form of emissions trading to meet carbon targets outlined under the EPA’s Clean Power Plan.
RGGI Changes Needed Under EPA CO2 Plan: Study
…Among the changes RGGI should adopt is a fixed decline in the emissions cap of about 2.275 short tons/yr, rather than the 2.5pc/yr reduction now in place, Boston-based environmental policy think tank Acadia Center said in the report released yesterday. At the same time, the nine-state power sector trading program should extend the cap out until 2030, aligning the program with the deadline for states to meet CO2 emissions rates set out by EPA in its Clean Power Plan, the report said…
Report Calls for RGGI Cap-and-trade Program Changes Ahead of 2016 Review
…”With final EPA targets set to be released this summer, these changes will allow the RGGI states to demonstrate that the program can meet federal requirements, while providing a clear blueprint for other states wishing to adopt emissions trading programs,” Jordan Stutt, Policy Analyst at Acadia Center, a non-profit, research and advocacy organization, said in a news release announcing the report…
Reforming Reggie: Successful Program Could be Better with Three Reforms
…”Modifications to RGGI will build on the many successes that the program has already had, and ensure that we continue to see CO2 emissions decline and investments in clean energy increase,” said Daniel L. Sosland, president of the Acadia Center, a non-profit, research and clean energy advocacy organization…
Massachusetts Net Metering and Solar Policy Status and Next Steps
Solar arrays are springing up over Massachusetts fields, former parking lots, and rooftops; they contribute to an increased percentage of the state’s renewable power supply. They are also evidence of solar’s growing role in boosting the state’s clean energy economy. In recent years, there has been a national debate about the best way to develop distributed solar generation (e.g. rooftop and community-located solar) and how to set rates of payment and compensation for the energy that it generates. In Massachusetts, the General Court decided last year to create the Net Metering and Solar Task Force to discuss solar policy and make recommendations. (Net metering is a method used by utilities to credit customers for the power they provide back to the grid from renewable generation, for example, rooftop solar.) The Task Force included lawmakers, energy and industry representatives, consumer advocates and others. The Task Force Report was released on April 30th.
Task Force Report Recommendations
The Report includes recommendations and supporting information such as policy research and cost-benefit analyses. The first part of the recommendations is a list of consensus general principles regarding the goals of solar and net metering policies, and how to proceed. Most Task Force members also endorsed conducting a Value of Solar study with input from the public and all interested stakeholders. The Study would determine the value and impact of solar in Massachusetts by evaluating total benefits in two broad categories: a) power system benefits, including avoided system costs and b) societal benefits. (See Acadia Center’s Value of Solar study for MA.)
The rest of the Report, however, reflects Task Force differences of opinion, particularly between solar groups and the electric utilities. There is disagreement about how–over the short- and long-term– to reform net metering and lift the net metering caps that currently restrict solar development. Determining the right approach will impact consumers, utilities and the solar industry.
Challenges To Address and Next Steps
While the Report makes sensible overall suggestions for reforming Massachusetts solar policy for the long run, there are a few holes. First, the recommendations appear to allow the utilities to suggest rate reforms before a comprehensive and public Value of Solar study is done. Acadia Center firmly believes the Value of Solar study should be completed before any rate reforms are initiated. Second, the Report fails to develop a concrete proposal that ties solar policy to existing energy and climate policies, which is needed in order to support progress toward the state’s energy and climate goals and create a fair, affordable energy system. In coming months, Acadia Center looks forward to participating in the process of crafting policy solutions that advance these efforts.
Groups Call for Key RGGI Program Updates
Environmental organizations and clean energy businesses today released a document calling on member states of the Regional Greenhouse Gas Initiative (RGGI, pronounced “Reggie”) to pursue reforms to make the program stronger and meet the requirements of EPA’s Clean Power Plan (CPP).
The document outlines principles to guide RGGI states’ upcoming 2016 Program Review, where potential modifications to current program rules will be considered.
Before describing reforms, the groups cite successes of RGGI to-date, including a 45% reduction in GHG emissions, $630 million in energy efficiency funding, and $2.3 billion in consumer savings.
“Modifications to RGGI will build on the many successes that the program has already had, and ensure that we continue to see CO2 emissions decline and investments in clean energy increase,” said Daniel L. Sosland, Acadia Center President.
Signatory groups focus on three key principles to be addressed during the 2016 Program Review:
- Extending the RGGI cap to at least 2030 in order to provide additional clarity to the market and match EPA’s timeline for achievement of CPP targets;
- Correcting the cap reduction trajectory to deliver necessary long term emissions reductions; and,
- Revising or removing the Cost Containment Reserve to ensure achievement of emissions reduction targets.
Additional topics addressed include accounting for renewables, the role of offsets, and pathways for other states to participate in RGGI.
“With final EPA targets set to be released this summer, these changes will allow the RGGI states to demonstrate that the program can meet federal requirements, while providing a clear blueprint for other states wishing to adopt emissions trading programs,” said Jordan Stutt, Policy Analyst at Acadia Center.
For more information see: http://acadiacenter.org/document/RGGI-2016-program-review-principles
Contact:
Jordan Stutt, Policy Analyst, Acadia Center
(617) 742-0054 x105, jstutt@acadiacenter.org
Emily Avery-Miller, Dir. External Relations, Acadia Center
(617) 742-0054 x100, eavery-miller@acadiacenter.org
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Acadia Center is a non-profit, research and advocacy organization committed to advancing the clean energy future. Acadia Center is at the forefront of efforts to build clean, low-carbon and consumer-friendly economies. Acadia Center provides accurate and reliable information, and offers a real-world and comprehensive approach to problem solving through innovation and collaboration.
$1.5 Billion in Energy Costs Avoided through Electric Efficiency
Coming out of two tough winters, the cost of energy is a top concern for consumers. A recent study by Acadia Center shows that energy efficiency might be one of the best solutions for keeping those costs under control. Thanks to existing investment in electric efficiency programs, customers in Northeast states saved some $1.5 billion in winter 2014 alone.
Acadia Center’s April Newsletter
A look at Acadia Center’s work this April.The newsletter includes information about our Value of Solar report, our analysis of the impact of energy efficiency on Winter 2014 energy bills, and updates on staff participation in outside events. See more
Eversource and UI Electric Rates Heading for Big Drop in July
…Bill Dornbos, the Connecticut director and senior attorney for the regional environmental group Acadia Center, said he wasn’t completely surprised because July rates are typically lower than those covering the winter season.
“But this is even a bit more than I anticipated,” he said. “This is undeniably a positive for ratepayers on the standard offer.”
But he remained troubled by the fixed charge customers pay regardless of how much electricity they use…
Sharing Visions for a Clean Energy Future
It’s spring and Acadia Center staff is on the move participating in policy events, talking to community members, and providing information to diverse stakeholder groups about how to build a clean energy future that will lower energy costs and emissions and empower consumers. Many of the presentations feature Acadia Center’s EnergyVision and UtilityVision. Here are some recaps and previews:
April 30/New England Local Energy Network
Bill Dornbos (Connecticut Office Director & Senior Attorney) presented Acadia Center’s EnergyVision and focused on policy considerations for accelerating community energy work in the region. The webinar explored full electrification of transportation and buildings as a path to reaching aggressive greenhouse gas (GHG) reduction targets, ways to build a modern power grid by empowering the energy consumer as called for in UtilityVision, and the importance of local energy as a grid resource. The presentation also highlighted local energy projects around the region and Acadia Center’s recent work on the value of solar PV.
May 1/Massachusetts Transportation Summit, Worcester, MA
Staff attorney, Mark LeBel, spoke on the panel entitled “Full State Ahead: 12 Leaders Share Their Vision for Transportation” at the Massachusetts Transportation Summit hosted by Transportation for Massachusetts in Worcester. He presented on EnergyVision, which charts a pathway to 80% greenhouse gas emissions reductions by 2050. In particular, Mark described the critical role of electric vehicles powered by renewables in transforming transportation and building a clean energy system.
May 6/The Financial Benefits of Sustainability – an Evening of Humor and Insight, Sustainable Wellesley, MA
As part of a panel of financial and sustainability experts, Amy Boyd, Senior Attorney, presented to a group organized by Sustainable Wellesley on the economic benefits of energy efficiency and a clean energy system. Amy shared her knowledge of Massachusetts’ statewide energy efficiency programs, which are nationally recognized for their performance and benefits delivered to consumers and businesses. As part of this educational roundtable, Amy demonstrated the value of energy efficiency as a sustainable business practice and as a key component of the vision for a clean energy future (EnergyVision) and for the framework of a consumer-friendly energy system (UtilityVision).
And Coming Up:
May 14/ Leadership South Coast Panel Discussion on Sustainable Energy Solutions, Fall River, MA
Abigail Anthony, Director, Grid Modernization and Rhode Island Director, will talk about the potential for consumer-friendly, clean distributed energy resources to replace the need for expensive, capital-intensive energy infrastructure, and the benefits of geographically targeted energy efficiency in the South Coast region of Massachusetts. Other panelists will include State Representative Haddad (5th Bristol District) and Pauline Rodrigues from the Somerset Citizen’s Transition Committee.
May 14/ People’s Power & Light Annual Meeting, Providence, RI
Abigail Anthony will provide Acadia Center’s perspective on major energy legislation currently under consideration in Rhode Island, including the creation of the Rhode Island Infrastructure Bank and the renewal of the state’s Least Cost Procurement policy for energy efficiency. Abigail will also provide recommendations for issues that advocates and stakeholders should prepare to advance in next year’s legislative session in Rhode Island.
June 9/New England Conference of Public Utility Commissioners (NECPUC) Annual Meeting, Newport, RI
Abigail Anthony will participate in a panel on the Integrated Grid with a representative from Eversource at this year’s annual meeting of utility regulators. These two panelists will provide unique perspectives on the grid of the future, including the role and functionality of the distribution utility. Abigail will discuss the utility business model and regulatory model reforms recommended in UtilityVision. Eversource will be in the midst of developing its 10-Year Grid Modernization Plan for Massachusetts.