In a rapidly changing world, what do we mean by RGGI leadership?
Never before has the urgency of climate action been so apparent, demonstrated by record high temperatures and unprecedented drought. Yet, as the impacts of climate change become more painfully obvious, jurisdictions from small towns to the world’s largest countries are working towards solutions. Since the Regional Greenhouse Gas Initiative (RGGI) began in the Northeast, the Governors of the participating states have led by embracing, implementing, and improving a first-in-the-nation carbon reduction program. It is now up to a new group of Governors to determine whether RGGI remains a model for ambitious action on climate.
What does RGGI leadership mean?
Looking out for our climate, our health, our economy
Thanks to RGGI’s track record, the participating states can lead on climate without setting back their economies. As detailed in our recent report, since RGGI began CO2 emissions have fallen sharply (faster than the rest of the country), electricity prices have decreased (while the rest of the country has seen an increase), and the economy has grown (outpacing the rest of the country).
Change in Economic Growth, Emissions and Electricity Prices, 2008 to 2015
By setting ambitious cap levels for the future, the RGGI states can continue to achieve the best outcomes for our climate, our health, and our economy. Specifically, the RGGI states should establish post-2020 cap levels designed to meet existing climate targets, which cluster around 40% reductions by 2030. Analysis from Synapse Energy Economics has shown that implementing a RGGI cap with a 5% annual decline from 2020 through 2030 would be the lowest-cost pathway to achieving climate requirements. According to that study, such a cap would also yield over $25 billion in total savings for the region while creating 58,000 new jobs each year in the participating states.
A forward-going 5% annual reduction would be more gradual than what the RGGI states have achieved to date, but it would still put us on a path to achieving our science-based goals. And as we cope with the fact that global CO2 concentrations have now eclipsed 400 parts per million, it’s become more important than ever that our leaders address scientific imperatives on climate change with comparably ambitious policy.
The forefront of climate policy
When a bi-partisan group of Governors of the RGGI states first came together to place a limit on CO2 emissions, they staked their claim as national leaders on climate. In the absence of federal climate policy, they were the first states to act on reducing CO2 emissions from the power sector. When they decided to auction allowances rather than give them away for free—as was common practice under previous emissions trading programs—they directed billions of dollars to consumers instead of polluters. This decision is largely responsible for RGGI’s success as a program that reduces harmful emissions and serves as an engine of local and regional economic growth.
While the leadership role of the RGGI states to-date is indisputable, the bar for climate leadership has been raised. Since the RGGI program began, the region, the country, and the world have taken great strides to address carbon emissions. In recent months the U.S. and China, the planet’s largest emitters of CO2, have ratified the Paris Climate Agreement. In the last week, India and the European Union have followed suit, bringing the tally of signatories beyond the threshold of 55 countries and 55% of global GHG emissions necessary to make the agreement binding. Also this week, Canada—America’s largest trading partner—announced nationwide carbon pricing. Provinces can implement their own cap-and-trade programs (as Quebec, Ontario, and Manitoba have done), their own carbon tax (like British Columbia), or they can accept the federal carbon tax, beginning at $10/ton in 2018 and rising to $50/ton by 2022.
The RGGI states are no longer going it alone on climate, but they can still be leaders. Committing to a strong future for the program will provide a valuable guidepost as the rest of the country prepares to comply with the Clean Power Plan, and as the rest of the world considers how to reduce emissions without sacrificing growth. Momentum is building, support is growing, and the market is transforming – will the RGGI states continue to lead the way?
Massachusetts’ New Rate Case Ruling Is Good News for Distributed Energy
But pro-solar groups including the Acadia Center, Vote Solar and the Energy Freedom Coalition of America (EFCA) protested that National Grid had failed to provide data or evidence to back up this assertion. DPU’s ruling sided with these protests, finding that National Grid “has not quantified the amount of costs attributable specifically to DG customers and has not quantified the distribution system benefits associated with DG customers in its service territory.”
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But opponents like the nonprofit Acadia Center said that singling out those types of projects would “arbitrarily discourage key types of distributed generation, including community shared solar and projects that benefit affordable housing projects and low-income ratepayers.” In other words, it would hinder customers who can’t put solar on their own rooftops.
Beyond that, the fees are “not based on an analysis of the costs and benefits of distributed generation to the electric system or even based on estimated costs to the distribution system,” the group wrote. Distributed energy backers have noted that these projects can actually help reduce system costs, by providing more energy closer to the point of consumption and reducing load on the grid.
Read the full article from Greentech Media here.
On Energy Efficiency Day, Acadia Center Celebrates New England’s Success
BOSTON – On this day, the first nationwide Energy Efficiency Day, Acadia Center commends New England its recent recognition for a long history of accomplishments in energy efficiency. New England states are among the most highly ranked in the American Council for an Energy-Efficient Economy’s (ACEEE) 2016 State Energy Efficiency Scorecard released last week, and recent action at the policy level promises to increase the region’s contribution to national energy efficiency savings.
“New England has become a leader in energy efficiency by implementing strong policies that work for consumers and strengthen the economy while helping to meet climate goals,” said Jamie Howland, Director of the Energy Efficiency and Demand Side Initiative at Acadia Center. “Through energy efficiency, we can lower utility bills, improve public health, reduce pollution, and create jobs; Acadia Center is excited to see the states recognizing and embracing these opportunities.”
In the ACEEE rankings, Massachusetts took first place for the sixth year in a row, tying this year with California. Massachusetts has proven its continued commitment to energy efficiency under its Green Communities Act of 2008 by saving a large and growing percentage of energy every year through efficiency measures, and delivering over $14.8 billion in economic benefits and energy savings for ratepayers over the last six years.
Rhode Island took first place in the scorecard’s utility policy and programs category, ranking fourth overall. The state’s Least Cost Procurement law is primarily responsible for its continued leadership on energy efficiency. First implemented 9 years ago and extended for another 5 years last summer, the policy states that distribution companies cannot acquire new electric or natural gas supply until “all-cost effective” energy efficiency measures have been exhausted. As a result, since 2008, Rhode Island has invested over $558 million in energy efficiency and consumers have realized $2 billion in economic benefits.
Vermont also ranked highly on the scorecard at third, and Connecticut and New York tied for fifth. Maine tied for 11th, gaining further distinction as the “most improved” state.
Though New Hampshire ranked 21st on the ACEEE scorecard, the state has made a significant commitment to increase energy efficiency through recent policy action. In August, the state instituted its first energy efficiency targets, approving a settlement between the Public Utilities Commission and other stakeholders to create the Energy Efficiency Resource Standard (EERS). Until now, New Hampshire has been the only state in the region without statewide targets. With the EERS, it takes a historic step towards reducing energy costs for its citizens.
Acadia Center pioneered the energy efficiency stakeholder council model to assist with the development, implementation, and review of energy efficiency programs at the state level. Staff members currently hold appointed seats on energy efficiency advisory councils in Massachusetts, Connecticut, and Rhode Island. Acadia Center looks forward to continued work with businesses, utilities, regulators and others to make sure that programs meet their goals and reach all customers.
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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.
My Turn: Concord needs to show a little Yankee ingenuity
The magazine goes on to state that by 2040 renewable energies will produce almost half of all electricity worldwide. Further, as pointed out by the Acadia Center, $400 million was saved through the cancellation of proposed transmission line work as a result of sustained investment in energy efficiency in Massachusetts and Connecticut.
Read the full article from the Concord Monitor here.
Report Finds DEEP’s “Lead by Example” Energy Efficiency Program for State Buildings Not on Track to Meet Mandatory Energy Savings Target
Hartford, CT — Today Acadia Center released a report showing that Connecticut’s “Lead by Example” (LBE) energy efficiency program does not appear to be on track to reach its mandatory goal of a 20% reduction in energy use in state buildings by 2018. The General Assembly established the LBE program in 2011 to reduce costly energy waste in state buildings, lower the state’s significant operating expense for energy use, and make the state a model for energy efficiency and sustainability. The report finds that mandatory annual reporting for the LBE plan originally filed in 2012 has not been submitted by the Department of Energy and Environmental Protection (DEEP), as required by law. This apparent failure to report severely hampers any attempt to review and evaluate the effectiveness of the LBE program’s performance.
“As we approach the release of the state’s next Comprehensive Energy Strategy, we thought it would be important to review the state’s progress in key clean energy areas and see if our findings could help inform and improve the next strategy document,” said Bill Dornbos, Connecticut Director and Senior Attorney for Acadia Center. “Not only did we find that DEEP’s “Lead by Example” program for energy efficiency in state buildings has not progressed as intended, but we also discovered that there has been no public reporting about this crucial program for the last four years, even though Connecticut law requires it. After searching the records maintained by the General Assembly and the State Library, we turned up no reporting on the LBE program beyond the initial plan filed in mid-2012.”
“We are releasing our report today because we want this LBE program to be a success,” Dornbos continued. “We need the multi-million-dollar cost savings for our budget-constrained state agencies and the taxpayers that ultimately pay for them, we need the major reductions in energy use to help with the state’s challenge of bringing down greenhouse gas emissions as quickly as possible, and we need the state to show that it can deliver on an important energy program when it matters. We urge the General Assembly to revisit the “Lead by Example” program and conduct a thorough, independent review to determine how it can be put back on track.”
State buildings present an enormous opportunity to reduce wasteful energy use, lower energy costs for state agencies, and help trim the state’s budget deficits. One estimate for total annual energy consumption in state buildings placed it at 4.1 trillion BTUs — roughly the total annual energy use of residential housing in Hartford and Waterbury combined. The total energy cost is also significant, estimated to be as high as $200 million annually, making it one of the state’s largest operating expenses.
The magnitude of the efficiency opportunity in Connecticut’s state buildings is unclear — an assessment of the potential for energy savings in state buildings has not been performed — but it would likely be cost-effective to reduce energy use in this sector by at least 20 to 30% overall. Energy savings of that size could result in approximately $40 to 60 million in annual savings on energy costs for state agencies. Current LBE program performance does not appear to be reaching these levels.
Acadia Center’s report on the status of LBE implementation in state buildings in Connecticut is available here.
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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.
Massachusetts DPU Protects Clean Energy and Consumer Control in Electricity Rate Case Ruling
BOSTON — Friday afternoon, the Massachusetts Department of Public Utilities (DPU) issued a decision in the National Grid electricity rate case, D.P.U. 15-155. In the decision, the DPU denied a number of utility proposals that would have reduced customer control of energy bills, discouraged investment in energy efficiency, arbitrarily penalized clean local energy production, and restricted access to community distributed generation. Further information on these proposals may be found here.
Peter Shattuck, Acadia Center’s Massachusetts Director, said, “We are encouraged that the DPU rejected National Grid’s rate design proposals that would have unfairly impacted residential ratepayers and set back our clean energy future. The DPU agreed with Acadia Center’s case that tiered customer charges would not be efficient or understandable and that the proposed access fees were not based on sound analysis. This decision also granted a significant overall revenue increase to National Grid, which emphasizes that we should be finding new ways to lower costs and avoid expensive new infrastructure investments.”
Acadia Center intervened in this proceeding, participated in discovery, filed expert testimony, and submitted briefs on a number of key electricity rate design issues.
Dr. Abigail Anthony, Acadia Center’s Director of Grid Modernization and Utility Reform and expert witness in this proceeding, said, “As a party in this docket, Acadia Center consistently advanced a long-term vision for regulatory reforms that promotes clean energy while addressing legitimate consumer concerns.”
A number of other states in the region, including Connecticut, Rhode Island, New Hampshire, and New York, are engaging in efforts to proactively identify the new regulatory processes and analyses needed to support a consumer-friendly, clean energy future. Acadia Center urges the Massachusetts DPU to take further steps to do the same.
Mark LeBel, Staff Attorney at Acadia Center, said, “Reforms to electricity rate design must strike a careful balance between economic efficiency, equity for all customers, protection of low-income ratepayers, and access to community distributed generation. Acadia Center is actively working on all of these issues and looks forward to working with other stakeholders to bring together broadly acceptable solutions.”
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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.
Acadia Center Applauds Rhode Island as State Continues to Lead on Energy Efficiency
PROVIDENCE — Rhode Island has taken first place in the utility-sector energy efficiency programs and policy category of the 2016 State Energy Efficiency Scorecard, released Tuesday by the American Council for an Energy-Efficient Economy (ACEEE), a national nonpartisan organization. In energy efficiency overall, Rhode Island ranks fourth behind Massachusetts and California (tied for #1), and Vermont (#3). This is the fourth year that Rhode Island has ranked in the top five states.
Rhode Island’s Least Cost Procurement law is primarily responsible for the state’s continued leadership on energy efficiency. First implemented 9 years ago and extended for another 5 years last summer, the policy states that distribution companies cannot acquire new electric or natural gas supply until “all-cost effective” energy efficiency measures have been exhausted.
“By investing in low-cost energy efficiency instead of expensive electricity and natural gas, Rhode Island lowers energy bills and spurs economic growth,” said Daniel Sosland, President of Acadia Center. “Thus the whole state benefits when Rhode Island leads on energy efficiency,” said Sosland
“Rhode Island has learned that energy efficiency is critical for growing our economy and putting Rhode Islanders to work,” said Abigail Anthony, Rhode Island Director with Acadia Center. “Energy efficiency reduces the cost of doing business in Rhode Island, and when residents spend less money on energy, they have more left in their paycheck to spend locally on other things.”
Rhode Island’s energy efficiency investment since 2008 will create 23,764 job-years of employment economy-wide and add $2.67 billion to Gross State Product. In 2015, 1,009 companies and 696 full-time equivalent jobs were directly involved with the state’s energy efficiency programs, with 79% of those companies located in Rhode Island.
Since 2008, Rhode Island has invested over $558 million in energy efficiency and consumers have realized $1.99 billion in economic benefits. In its 2016 Energy Efficiency Plan, National Grid proposed investing over $83 million in cost-effective efficiency programs to deliver electric savings that are 47% less expensive than the cost of supply, and natural gas savings that are 15% less than the cost of supply. The investments in 2016 will generate more than $256.1 million in direct benefits over the life of the efficiency measures, and add over $386.9 million to Rhode Island’s Gross State Product (GSP) and 4,220 job-years of employment. Acadia Center is currently developing the 2017 Energy Efficiency Plan along with key stakeholders including National Grid, the Office of Energy Resources, the Division of Public Utilities and Carriers, Emerald Cities, People’s Power & Light, and The Energy Council of Rhode Island.
Acadia Center is a member of the Energy Efficiency Resource Management Council (EERMC), the stakeholder council charged with assisting with the development, implementation, and review of energy efficiency programs in Rhode Island. The EERMC is critical to the success of energy efficiency in the states, and Acadia Center looks forward to working with fellow members, utilities and other stakeholders to make sure that the plans are implemented effectively to deliver cost savings through lower utility bills, emissions reductions, and clean energy job growth, in addition to broader economic benefits.
See the Scorecard at: http://aceee.org/state-policy/scorecard
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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.
Massachusetts and California Share Top Energy Efficiency Ranking
BOSTON — The American Council for an Energy-Efficient Economy (ACEEE), a national nonpartisan organization, released its 2016 State Energy Efficiency Scorecard yesterday, with Massachusetts maintaining its #1 ranking for the sixth year in a row, but now sharing the podium with California. Last year, only a half point separated the states’ rankings.
In achieving its highest score to date, Massachusetts’ score increased a point due to adopting the most recent IECC 2015 and ASHRAE 90.1-2013 as part of the state building code. These new standards will reduce the cost of energy for new homes and businesses in the state. Massachusetts could earn a perfect score in the category of utility programs and policies, the largest category in the ACEEE scorecard, with deeper savings in its natural gas programs.
“Progress in investing in energy efficiency raises all boats—consumers in Massachusetts, California and all the leading states are the real winners here,” said Daniel Sosland, Acadia Center’s President. “Maximizing efficiency is a major step toward securing a clean and affordable energy future. Massachusetts, Rhode Island and other leaders are showing that it really works to deploy least-cost, non-polluting measures to benefit the environment, the economy and consumers,” said Sosland.
Massachusetts has proven its continued commitment to energy efficiency under its Green Communities Act of 2008 by saving a large and growing percentage of energy every year through efficiency measures, and delivering over $14.8 billion in economic benefits and energy savings for ratepayers over the last six years. Massachusetts’ current 3-year plan (2016-2018) is expected to deliver $8.1 billion in economic benefits and energy savings, and sets savings goals (2.93% of sales for electric and 1.24% of sales for natural gas) that are the highest in the nation, yet again. The environmental benefits the 3-year plan will deliver are equivalent to removing approximately 408,000 cars from the road.
California’s rise to the top is a sign that other states are rapidly ramping up their investments in low-cost energy efficiency, and helping consumers lower their energy bills and spur economic growth. One area where Massachusetts risks falling behind the rest of the country and losing the top ranking is in the management and public availability of efficiency data. Massachusetts satisfies only one of six standards on which ACEEE intends to score states in the future – for comparison, California satisfied five.
“Massachusetts is on the winning path, but there is still plenty of work to do to make the most of this low-cost, clean resource,” said Amy Boyd, Senior Attorney at Acadia Center. “We should celebrate our success, but then return to the hard work that it takes to accelerate strategies to reach the homes and businesses that still need help lowering their energy costs,” Boyd said. “Making smart use of all the data that new technologies can provide utility companies will reduce costs, make processes more transparent, and keep us on track to stay on top of the ACEEE rankings,” Boyd concluded.
Acadia Center is a member of the Energy Efficiency Advisory Council, a stakeholder board that has statutory responsibility for advising and assisting the state’s utilities in developing and implementing cost-effective energy efficiency plans for electricity and natural gas. Acadia Center looks forward to working with fellow members, utilities and other stakeholders to make sure that the efficiency plans for Massachusetts are implemented effectively to deliver cost savings through lower utility bills, emissions reductions, and clean energy job growth, in addition to broader economic benefits.
See the Scorecard at: http://www.aceee.org/state-policy/scorecard
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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.
Report: State is cleaning air, saving money
Emily Lewis, a policy analyst at the Acadia Center, a regional non-profit focused on market-based, consumer-friendly programs, said the hospital has conserved a lot of electricity. “By reducing load, they’re reducing costs for everybody,” said Lewis, noting that the RGGI brought $160 million in proceeds to Connecticut through April, 2016 that was mostly invested in energy efficiency.
Lewis estimated that about $245 million has been added to the Connecticut economy by the program.
“You can see that this is a great return on investment with proceeds coming in being only $160 (million) and adding $245 (million in value so far,” she said. “It’s lowered emissions without raising costs for consumers.”
Read the full article from the Connecticut Post here.
Environmental Groups: Con Ed Rate Case Settlement Proposal’s Advancement of Energy Efficiency Programs Will Help Meet Clean Energy Standard Targets
ALBANY, NY – New energy efficiency programs in a Joint Settlement Proposal filed today on Consolidated Edison Company of New York’s electric rates for 2017 to 2019 will help meet the state’s greenhouse gas emissions reduction goals and Clean Energy Standard renewables targets, according to environmental and energy efficiency groups participating in the proposed agreement with the utility, city, and state.
The Joint Settlement Proposal would commit the utility to $99 million in new energy efficiency programs over the next three years, providing customer energy bill savings while reducing emissions of carbon dioxide and other dangerous pollutants emitted by power plants.
The Department of Public Service staff filed the proposed settlement today with the New York Public Service Commission for review and potential approval. The Natural Resources Defense Council, the Pace Energy and Climate Center, Acadia Center and the Association for Energy Affordability said the proposed efficiency programs are anticipated to yield more than 300 gigawatt-hours (GWh) of savings annually by 2019, and would continue to save customers that much each year for many years beyond that. A System Peak Reduction Program would add an additional 22 GWh of efficiency per year by the same date, while providing 49 megawatts of system peak reduction, which means fewer of Con Edison’s dirtiest, most expensive peaking power plants will be needed to serve Con Edison’s 3.3 million customers on the highest demand days of the year.
“By 2019, Con Edison’s new energy efficiency programs are expected to annually save the same amount of electricity that’s used by more than 70,000 typical New York City residential customers,” said Miles Farmer of the Natural Resources Defense Council. “That’s significant. The Public Service Commission should approve these programs and build upon that progress with more aggressive energy efficiency targets and initiatives in the near future.”
The Public Service Commission is expected this week to consider the procedural schedule for reviewing the Joint Settlement Proposal. Signatories include Department of Public Service staff, Con Edison, the Pace Energy and Climate Center, the City of New York, and various other environmental and consumer groups.
“By assisting customers to use energy more effectively, ConEd’s proposed programs would bring New York one step closer to achieving its requirement to use 50% renewables by 2030,” said Acadia Center President Dan Sosland. “Energy efficiency is far less expensive than building and operating fossil fuel power plants, and less risky, which means New Yorkers will benefit from this transition to a clean energy future.”
A study released by Synapse Energy Economics Inc. in April concluded that implementing aggressive energy efficiency targets and funding them appropriately holds the potential to reduce total costs to New York State’s electricity customers by roughly $3 billion.
Much more work remains to be done to pull New York up to speed with its neighbors in the Northeast. While the proposed Energy Efficiency and System Peak Reduction Programs are projected to help Con Edison more than double its energy efficiency performance over the level previously committed to (about 0.3% of load in efficiency gains per year), its total achievement will still be far short of the 2% to 3% in efficiency gains being made by utilities in states like Massachusetts and Rhode Island.
Radina Valova, a Pace Energy and Climate Center Staff Attorney, noted, “The programs will secure energy efficiency in a way that makes the grid itself more cost-effective by responding to locational needs, bundling offerings through Distributed Energy Resource providers, and leveraging market-based approaches. Clean energy advocacy groups like ours support this broad focus on energy efficiency opportunities because it allows the utility to promote the most cost-effective and market-friendly savings opportunities.”
“This settlement proposal ensures Con Edison’s ability and commitment to leverage bigger and better ideas and technologies in pursuit of a broad range of advanced energy efficiency opportunities, working with third parties and interested consumers. This approach is an important step for Con Edison and a strong precedent for other utilities to help New York to meet its clean energy goals,” said David Hepinstall of the Association for Energy Affordability, Inc.
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Released jointly by Acadia Center, Association for Energy Affordability, Inc., National Resources Defense Council, and Pace Energy and Climate Center