New Legislation Advances Rhode Island’s Commitment to Renewable Energy

On July 7, 2016, Rhode Island Governor Gina Raimondo signed into law several bills that will help advance the deployment of renewable energy resources. These bills are welcome developments that signal the state’s commitment to the growth of renewable energy and a clean energy economy, and lay the groundwork for expanding community energy projects and advancing solar and other distributed energy resources through incentive programs and good rate design. Key provisions in each of the bills are summarized in this post.

• H-7413A/S-2185A — This bill extends the Renewable Energy Standard (RES) from 2019 to 2035 and ramps up National Grid’s renewable energy obligation from 14.5% to 38.5% over that period. Significantly, by extending the RES, Rhode Island policymakers place the state in a leadership position and reaffirm its long-term commitment to advancing the deployment of renewable resources. The new law also requires the Public Utilities Commission (PUC) to review the adequacy of renewable resources every 5 years beginning in 2019 and allows the PUC to delay all or part of the implementation requirement until it determines that resources are available to meet the legislative requirement.

 

• H-8354A/S-2450B — This bill makes a number of changes that affect distributed energy resource development in Rhode Island. Distributed energy resources, like rooftop solar photovoltaics, are a new and growing part of our energy system. These local, clean energy resources will help diversify the energy portfolio, create in-state economic opportunities, and reduce pollution and associated health risks.
  • The bill extends the Renewable Energy Fund from 2017 to 2022, providing grants to reduce the up-front cost of renewable energy projects for residents and businesses in Rhode Island.
  • It also expands virtual net metering, which allows multiple customers to share power from a single renewable energy system that is not physically connected to their meter(s). Previously, only public, multi-municipal, and farm projects were allowed to virtual net meter. Under the new law, residential customers and qualified low and moderate income housing developments are eligible for “Community Remote Net Metering.” Output from these community projects are credited at the full retail rate (net of the RES charge) up to the sum of average usage, and excess credits are valued at the standard offer service charge. The Community Remote Net Metering program is currently capped at 30 MW as of December 31, 2018, but the PUC has the authority to extend the program.
  • The bill creates an opportunity to promote small- and medium-scale shared solar facilities and larger (>250 kW) community remote distributed generation systems through the Renewable Energy Growth (REG) program — a performance-based incentive program. The bill allows the Distributed Generation Board to propose to the PUC to allocate annual MW goals under the REG program to community remote distributed generation systems. These projects may also receive a higher incentive rate of up to 15% more than the ceiling price for a comparable non-community project. The bill also allows the utility to propose rules and tariffs for shared solar facilities.
  • It clarifies that third party ownership and third party financing arrangements for eligible net metering systems and community remote net metering projects as well as projects enrolled in the REG program are allowed. This is significant because it allows companies that lease solar systems to operate in the state. In response to the passage of the law, SolarCity said that it anticipated expanding from 20 employees in Rhode Island to somewhere between 75 and 200.
  • Furthermore, renewable energy resources used in residential systems or employed by a manufacturer are exempt from property tax. This means that, for example, a homeowner would not be penalized for installing a solar PV array through higher property taxes resulting from their property’s increased value.

 

• H-8180/S-2174 — This bill amends the “Rhode Island Regulatory Reform Act” to establish a state-wide solar permitting process. A consistent and streamlined permitting process can help improve the cost effectiveness and timeliness of the interconnection process for renewable resources. In this case, the Office of Regulatory Reform will be advised by a task force comprised of the Commissioner of the Office of Energy Resources, at least five municipal representatives, and a representative from a clean energy regional business association. No later than December 31, 2016, the Office of Regulatory Reform will submit a report with recommendations for a permitting process for small residential and small commercial roof-top solar projects. The Office of Energy Resources is then required to propose legislation to establish the state-wide solar permitting process no later than January 31, 2017.

 

• H-7890/S-2328 — This bill expands the role of the Governor’s workforce board to include in the state career pathways system, a workforce training program(s) that would fill skill gaps and create employment opportunities in the clean energy sector.

Carbon prices are way down, thanks to the Supreme Court’s hold on Clean Power Plan

“Low RGGI prices hamper the region’s ability to pursue additional carbon cuts,” and make clean energy investment less profitable, said Jordan Stutt, a clean energy analyst for the Acadia Center, a New England climate policy think tank.

He said lower prices mean states earn less money from trading carbon, reducing the amount of auction money they will get that can be reinvested in state-run clean energy and energy efficiency programs.

Our View: Energy series shows that climate change is your business

A forum held Wednesday night in New Bedford aimed to move climate resilience forward by adding regional, local and personal context. Leadership SouthCoast organized the event with partners Marion Institute, clean energy advocate Acadia Center, Toxics Action Center, and SouthCoast Media Group.

Putting the commonwealth’s energy options into context allowed a discussion of the ongoing energy debate taking place on Beacon Hill, as well as the energy decisions being made town by town in SouthCoast.

Several dozen folks attended the panel discussion, and organizers expect interest to grow as subsequent Leadership SouthCoast forums dig deeper into the subject. A second forum planned for September will tackle employment issues surrounding renewable energy sources. From skyrocketing employment in the field of solar energy installations to the potential of an innovation hub around offshore wind, to the performance of home energy audits, renewable energy is a growth industry, and it deserves our attention.

We look forward to the continued community discussion begun on Wednesday night, knowing that recognizing the need for action frees up our effort and money for progress instead of wasting resources trying to justify inaction.

Report critical of ‘hidden costs’ in transmission projects

A new report released this week by a Boston-based environmental group is critical of what the group calls “hidden costs” in regional electric transmission line projects.

The Acadia Center report calls on regional grid operator ISO-New England and the six states it serves to adopt four recommendations in terms of determining whether new transmission lines are needed. The recommendations are:

• Give equal consideration to local energy solutions when planning for grid reliability, and allow them to be eligible for cost recovery.

• States should adopt regulatory and market reforms to provide opportunities and financial incentives for local energy resources.

• ISO-NE should require that transmission bids be in guaranteed costs to improve the accuracy of transmission cost estimates.

• The regional grid operator should improve its energy forecasts so consumers do not pay for projects that are not needed.

William Dornbos, Acadia Center’s Connecticut director and a senior attorney with the organization, said “transmission planning and financing processes have not sufficiently evolved to enable the region to choose outcomes with the greatest consumer and environmental benefits.”

“Acadia Center is not asking to trade reliability for savings — the region is missing opportunities to ensure the lights stay on with innovative and potentially more affordable solutions,” Dornbos said.

Clean Energy Leaders Applaud Groundbreaking Energy Bill Passed by Senate

Lawmakers Should Think Bold and Finalize Forward Thinking Legislation this Session

BOSTON — Leaders of the Alliance for Clean Energy Solutions, a coalition of business groups, clean energy companies, environmental organizations, health and consumer representatives dedicated to advancing clean energy for Massachusetts, issued the following statements regarding the comprehensive energy bill (S2372) passed this week by the Massachusetts Senate.

“Massachusetts needs clean energy resources to address the threat of climate change and reduce our dangerous overreliance on natural gas,” said Peter Shattuck, Massachusetts Director of Acadia Center and co-leader of ACES.  “This bill supports the scale and scope of clean energy options to responsibly meet our energy needs and build on Massachusetts’ climate leadership and capacity to develop innovative technologies.”

“The Massachusetts Senate has passed legislation that will enable the Commonwealth to take advantage of the benefits of clean energy and innovation by spurring the private sector investment needed to capture the cost reduction and economic development benefits of renewable energy sources in addition to their environmental benefits” said NECEC Executive Vice President Janet Gail Besser, co-leader of ACES. “We commend the Senate for including Class 1 eligible renewable energy resources, offshore wind, energy storage, fuel cells, and other key policies that will make Massachusetts’ energy more cost-competitive, reliable, and clean for future generations.”

“Clean energy, innovation, and economic growth are all intertwined here in Massachusetts, and the Senate’s energy bill allows the benefits we see from this connectivity to continue to expand,” said Jesse Mermell, President of The Alliance for Business Leadership. “By investing in clean energy – and the innovation around it – we reduce our impact on climate change, lower energy costs, and create jobs. The future of Massachusetts will be brighter because of this bill’s commitment to clean energy.”

ACES supports policies to bring diverse clean energy resources to Massachusetts. Alliance members share the view that such policies are critical for the Commonwealth to achieve its climate commitments and will also protect consumers and the environment. ACES promotes the following priorities for large-scale energy procurement:

• Large-Scale Clean Energy Procurements – authorize procurement of Renewable Portfolio (RPS)-eligible resources (such as onshore wind) and hydroelectricity in order to facilitate cost-effective achievement of the RPS, replace retiring generation, reduce greenhouse gas emissions and diversify our electricity supply.

• Pairing of Wind and Hydroelectricity – require bundled procurements of RPS-eligible resources (such as onshore wind) and hydropower in order to drive in-region development and maximize efficient use of transmission for clean energy.

• Meaningful Offshore Wind Development – authorize phased procurement of offshore wind of sufficient scale over 15 years in order to tap Massachusetts’ world-class offshore wind resource and develop a sustainable industry in Massachusetts.

• Energy Procurement Standards and Criteria – competitively procure cost-effective and environmentally preferable clean energy resources through a procurement process that protects against self dealing, and ensures reliability, price stability, affordability for all income levels, and ensures that environmental impacts of electricity generation and transmission are appropriately avoided, minimized, and mitigated.

 

ACES additionally supports complimentary energy policies including expansion of the renewable energy portfolio standard, incentives for energy storage, establishment of climate requirements for 2030 and 2040, and clean energy financing with appropriate consumer protections.

 

Contacts:
Krysia Wazny, Acadia Center
617-742-0054 x107, kwazny@acadiacenter.org

Kate Plourd Johnson, NECEC
617-500-9933, kjohnson@necec.org

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About ACES: The Alliance for Clean Energy Solutions (ACES) is a “coalition of coalitions” comprised of business groups, clean energy companies, environmental organizations, labor, health, and consumer advocates dedicated to advancing clean energy for Massachusetts. ACES is committed to ensuring that those charged with shaping Massachusetts’ energy policies have the most rigorous, current data on the benefits and costs of clean energy. Our goal is to ensure that the Commonwealth can attain a cost-effective, reliable and diverse energy supply to power its businesses, communities and households, which will reduce our reliance on fossil fuels, create a stable and prosperous business environment and meet the Commonwealth’s greenhouse gas emissions requirements. For more information: acesma.org

Members Include: Acadia Center, Alliance for Business Leadership, Climate Action Business Association, Clean Water Action, E4theFuture, Energy Storage Association, Environment Massachusetts, Environmental Entrepreneurs, Environmental League of Massachusetts, Health Care Without Harm, Mass Audubon, Mass Energy Consumers Alliance, Northeast Clean Energy Council, Northeast Energy Efficiency Council, RENEW Northeast, Solar Energy Business Association of New England, Union of Concerned Scientists, US Green Building Council Massachusetts Chapter, Vote Solar.

RGGI Experience Suggests CPP Concerns Are Overblown

The EPA’s Clean Power Plan (CPP)¹ is a groundbreaking regulation to combat climate change. Despite popular support for the rule, this first federal action to reduce carbon emissions from existing power plants has been met with considerable pushback in some quarters. The rule’s opponents most frequently cite three talking points, saying the CPP could 1) cause electricity prices to rise, 2) be a job killer, and 3) lead to economic stagnation.

These concerns will sound quite familiar to the states participating in the Regional Greenhouse Gas Initiative (RGGI), which launched in 2009. As the nation’s first market-based program to reduce carbon emissions, RGGI had plenty of detractors who used the same arguments as those currently being directed at the CPP. Now, with seven and a half years of RGGI experience to analyze, we can assess how the program has actually performed. As discussed in more detail in Acadia Center’s upcoming RGGI report, the early fears about RGGI’s impacts on electricity prices, jobs, and the economy should be put to rest. The figures below illustrate some of the key findings from RGGI’s operation to-date.

Electricity prices
By choosing to hold power plant owners responsible for the carbon they emit (rather than allowing them to pollute for free), the RGGI states accepted that it would become more expensive for fossil-fueled power plants to generate electricity. That, in turn, could result in higher electricity prices. But as shown in the table below, average retail electricity prices in the RGGI states actually declined by 3.4% from 2008 (the year before RGGI began) to 2015.² The emergence of low-cost natural gas undoubtedly played a role in this trend, but so too have RGGI-funded investments in energy efficiency and renewable energy, both of which reduce demand for carbon-intensive electricity generation and reduce prices.

RGGI State Electricity Prices, 2008 and 2015 (Cents/kWh)

Employment
Despite claims that RGGI would cost the region jobs by driving businesses away, the program has actually made a significant contribution to employment in the RGGI states. Independent analysis determined that RGGI was responsible for creating 28,500 job-years through 2014. Some of these jobs are the direct result of clean energy projects funded with RGGI auction revenue, and investments in energy efficiency and renewable energy have enabled clean companies to scale up their operations, creating new, high quality jobs for the local workforce. Additional jobs are created as consumers spend energy bill savings in local economies.

Economic stagnation?
Far from stagnating in comparison to the rest of the country, the economies of the RGGI states have outpaced growth in other states’ economies since the program launched in 2008. Over the same time period, RGGI emissions declined by 37%. The combination of economic growth with declining emissions witnessed in the RGGI states is both groundbreaking and a trend that is likely to spread as additional states adopt market-based climate programs like RGGI. Historically, electricity demand has been linked to economic growth, and electric sector emissions have increased during periods of economic expansion. However, this correlation has been broken in the RGGI region. As shown in the table below, economic growth in the RGGI states has exceeded growth in the rest of the country even as the RGGI states have surpassed their ambitious climate goals. Additionally, macroeconomic analysis of RGGI’s impact through 2014 shows that the program added nearly three billion dollars in net economic benefits for the region.

GDP Growth Rates in RGGI States versus Other States

RGGI’s experience has demonstrated that a well-designed, market-based program can achieve environmental goals and drive economic growth. Emissions reductions under RGGI have come at far lower than expected costs, and the clean energy sector and economy as a whole have been boosted by the reinvestment of allowance revenue into energy efficiency and renewable energy programs. RGGI’s experience shows the actual impact of smart climate policy in practice. Before heeding dire predictions of potential impacts of the CPP, it is worth keeping this real-world experience in mind.

Stay tuned for our upcoming RGGI report with the latest on market trends, the RGGI program review, and the CPP.

 

¹ The Supreme Court issued a stay on the Clean Power Plan in February, 2016, but as discussed in an earlier blog post, we expect the stay to be lifted and the Clean Power Plan to be enforced.

² Energy Information Administration (EIA) 826 Dataset, http://www.eia.gov/electricity/data/eia826/

Your View: Forum to show clean energy choices are accessible

The energy landscape is changing. Massachusetts and the SouthCoast are facing critical choices about their energy future. Large power plants are closing, gas pipelines are being proposed, and new clean energy technologies are emerging. SouthCoast is disproportionately affected by these changes: the closing of Brayton Point coal plant, the potential construction of pipeline and storage tanks in our communities, and developing off-shore wind and solar. Decisions are being made right now at the Statehouse about the design of our future energy system, and these decisions affect your wallet, your health, and your community. What role can you play in these decisions?

Several studies, including the recent report by Attorney General Maura Healey, show natural gas now poses the biggest climate threat to the region. As coal and oil are effectively being phased out of our regional electricity mix, natural gas will start displacing cleaner sources of energy, undermining efforts to reduce climate pollution. Eversource, National Grid, and the Houston pipeline developer are seeking public financing for a new gas pipeline, Access Northeast, running directly through SouthCoast communities. In addition to the public health and economic implications, the pipeline would put Massachusetts over its carbon emission limit by 83 percent in 2050. How will we meet our carbon emission targets if we develop these projects?

The current energy system is designed for a previous era, based on a one-way flow of energy from traditional power plants to our homes and businesses. No longer should energy dollars be poured into fossil fuel power stations, pipelines, and miles of wire. Instead, we should invest in our homes, businesses, and communities, making them the centerpieces of the modern energy system. Renewable and community-based clean energy technologies can meet our energy needs more cleanly and cost-effectively.

With its proximity to an abundance of offshore wind, its leadership on solar, and its commitment to energy efficiency, the SouthCoast has the opportunity to build an energy system of the future, one based on clean energy in our own communities. These energy issues, their impact on the SouthCoast, and what can be done will be discussed at a free public forum, “Building the SouthCoast’s Clean Energy Future,” from 6 to 7:30 Wednesday evening at Greater New Bedford Regional Vocational-Technical High School.

Forum topics will include an overview of the current energy system; a highlight of local efforts to combat pipelines; an explanation of the attorney general’s natural gas report and of Acadia Center’s EnergyVision, which outlines a pathway for creating safer, cleaner and more affordable energy systems; and local opportunities to reduce energy usage.

This forum is cohosted by Acadia Center, Leadership SouthCoast, the Marion Institute, Toxics Action Center, and the SouthCoast Media Group. It is the first event in the SouthCoast Community Energy Series, which will explore energy issues affecting the SouthCoast and how local residents and communities can maximize the economic, environmental, and public health benefits of clean energy.

Tyler Soleau is community outreach director for Energy & Climate at the Acadia Center. Jennifer Downing is executive director of Leadership SouthCoast. Janet Milkman is executive director of The Marion Institute, Claire B.W. Miller is lead organizer for the Toxics Action Center.

CT deals seen as linchpin for ‘Access Northeast’

Connecticut’s emissions hit a low point in 2012, dipping beneath a carbon emissions pledge made in 2008, but it rose above that line in the three years that followed, according to a recent data analysis by the Acadia Center, which cited a number of causes that the state has little control over, including low gasoline prices and economic recovery.

“While it is too soon to predict with certainty whether Connecticut will meet its mandatory 2020 GHG emissions cap, implementing additional short-term mitigation measures will increase the likelihood of doing so,” Acadia said in its report this month.

The nonprofit has urged state officials to rely on energy efficiency, solar energy and electric vehicles to lower demand for electricity and fossil fuels.

“We take a long view of electric emissions and believe that any short-term reductions in pollution on cold winter days that might be provided by additional pipeline capacity will be far outweighed by the additional emissions that will result from locking us into additional fossil fuels for 20 or 30 years,” said Jamie Howland, who directs Acadia’s Climate and Energy Analysis Center.

Connecticut Passes Legislation to Promote Electric Vehicles! Will Massachusetts Be Next?

Over the past five years, plug-in electric vehicles (EVs) have gone from a cool concept to a real option for vehicle buyers, with almost 440,000 sold nationally through April 2016. Consumer rebate programs have been a big part of this success, beginning in Massachusetts in June 2014, in Connecticut in May 2015, and in Rhode Island in January 2016. Recently, New York included a provision in their 2016 budget to create a consumer rebate program as well.

However, advances in a number of policy areas are needed to allow electric vehicles to make significant inroads with mainstream consumers and take full advantage of the new advanced EV models that will go on sale in the next year. In October 2015, Acadia Center issued a joint report with Conservation Law Foundation and Sierra Club that laid out “Nine Vital Steps for Success” for governments, auto companies and dealers, and utilities.

Connecticut enacts “An Act Concerning Electric and Fuel Cell Electric Vehicles”
In May 2016, the Connecticut General Assembly passed H.B. No. 5510, “An Act Concerning Electric and Fuel Cell Electric Vehicles.” On June 7th, the bill was signed by Governor Malloy and became Public Act 16-135. This law contains a number of great provisions that will help promote electric vehicles:

• Reporting of electric vehicle sales from the Department of Motor Vehicles in order to track progress towards goals;
• Exemption of EV charging stations from burdensome public utility regulations;
• Electric vehicle time of day rates for residential and commercial customers to promote electric vehicle sales and encourage efficient charging;
• Integration of EV sales into utility distribution planning and analysis of EV batteries as energy storage in the Connecticut Integrated Resources Plan; and
• Requirements for public charging stations to allow fair access to all EV drivers.

Notwithstanding one negative provision—a new fee on certain EV charging stations—the Act contains a range of smart provisions that promote electric vehicles and creates a broader framework for widespread electric vehicle adoption.

Electric Vehicle Bill Set for Action in Massachusetts
Massachusetts has its own electric vehicle bill moving through the legislative process, “An Act Promoting Electric Vehicle Adoption,” now numbered S.2266. This bill, which has already been reported favorably by the Joint Committee on Transportation and is now at the Senate Committee on Ways and Means, would promote electric vehicles and other zero emission vehicles (ZEVs) by:

• Allowing EV and ZEV owners to use high-occupancy vehicle (“HOV”) lanes;
• Providing for municipal enforcement of dedicated “ZEV-only” parking spaces;
• Amending the building code to incorporate measures to install EV charging at a lower cost in the future;
• Requiring fair access to public EV charging stations; and
• Adding EV-specific requirements to the state fleet fuel economy standards and studying the opportunities for electrification of the state fleet and vehicles used by the Regional Transit Authorities.

The original bills containing these proposals (numbered H.3085/S.1824) were supported by 16 businesses and organizations, including the Massachusetts Association of Regional Transit Authorities, in joint testimony to the Transportation Committee. Since then, a provision for a study of transportation revenue issues and options for ZEVs were added to the bill.

What Comes Next in Massachusetts?
The Massachusetts Legislature is in the middle of a big debate on our energy future. The House recently passed an “omnibus” bill to promote hydro, onshore and offshore wind, and the associated transmission and diversify the Commonwealth’s energy portfolio. The Senate and outside advocates are debating how to expand this House bill to truly promote a clean energy future. The Senate should either adopt an amendment to incorporate these electric vehicle provisions in their own bill or take up the electric vehicle bill separately as a complement to this work. This legislation could be passed within the next month, and advocates remain hopeful that Massachusetts will embrace this opportunity to make electric vehicles more accessible and practical for consumers.

 

Energy forum to spark discussion Wednesday night at GNB Voc-Tech

All of those topics and others will be on the table at Wednesday’s free forum, from 6 to 7:30 p.m. at Greater New Bedford Regional Vocational-Technical High School on Ashley Boulevard. The forum is a collaborative effort between the Marion Institute; Acadia Center, a nonprofit, multi-state organization that advocates for the development of clean energy; and other partners.

Panelists include Milkman; Claire Miller, lead community organizer for the Toxics Action Center; Roger Cabral, of South Coast Neighbors United; and Peter Shattuck, clean energy director for Acadia Center’s Massachusetts office.