Getting Off Fossil Fuels Requires Transportation Makeover

Drastically and rapidly reducing the amount of fossil fuels we burn requires an all-out effort, from individuals and households to businesses and governments. For example, the state of Rhode Island is largely focused on implementable small projects that nibble around the emergency’s edges when what is needed is building big-impact efforts.

Those efforts need to start with the transportation sector, which accounts for nearly 40% of Rhode Island’s greenhouse gas emissions — the state’s largest percentage of climate-changing pollution. Until we get serious about building an efficient and reliable public transit system and significantly reducing vehicle miles traveled, any progress we make with smaller but important efforts will be negated.

Jamie Dickerson, senior director of clean energy and climate programs for the Acadia Center, noted the complexity of my question.

“There are a number of instructive ways to break this question down. One could approach it by economic sector, from a societal or governmental perspective, or from an individual’s or household’s viewpoint,” he wrote. “In our answer, we’ve opted to interpret ‘we’ broadly, meaning we’ve highlighted universal pillars of action that all actors in our society — from policymakers to corporations and households — will need to pursue swiftly to transition us off our reliance on fossil fuels and drive down our emissions, both here in Rhode Island and across the region, nation, and globe.”

Dickerson noted that all five of the Acadia Center’s steps are “underway in some sense, but they all must be accelerated and expanded to avert the worst impacts of climate change.”

Maximize efficiency. Reduce energy consumption and vehicle miles traveled through vital investments in an energy-efficient building stock and a robust public transit system.

Deploy renewables. Build wind, solar, other renewables, and energy storage rapidly to green our electricity supply, aided by significant new transmission line capacity and grid-enhancing technologies to help even more green electrons flow through our power lines, existing and new.

Electrify our end uses. Decarbonize our buildings and vehicles, primarily by converting from combustion technologies — e.g., boilers and furnaces, internal combustion engine vehicles — to efficient, electric technologies such as air- and ground-source heat pumps, heat pump water heaters, thermal energy networks, electric vehicles, and zero-emission buses and trucks.

Build a flexible, dynamic grid. Revamp our utility regulatory system and our grid to be more intelligent and dynamic and to better harness the abundant new flexibility provided by distributed energy resources, from EV charging and heat pump hot water heaters to smart thermostats, solar+storage systems, and other grid-interactive technologies.

Invest and innovate. Invest in deploying cleaner energy in every sector of the economy via both the public and private sectors, and for the most challenging remaining sectors to decarbonize — heavy industry, shipping, aviation — we must support research and development for breakthrough technologies, pursue first-of-their-kind green procurements, and be a laboratory for piloting and demonstrating new solutions.

To read the full article from ecoRI, click here.

Where do all those Amazon EV delivery vans recharge?

Tucked away in the woods off I-495 at a warehouse in Bellingham, dozens of gray Amazon delivery vans spend the night side by side, plugged in to recharge.

The e-commerce giant is far in the lead in electrifying its commercial delivery fleet, and 67 of the new vans stationed in Bellingham make their rounds daily within a 30-mile radius. The electric vans, quieter than their gas-powered counterparts, arrived starting at the end of 2022. They were made by EV upstart Rivian and feature that California company’s recognizably cartoonish headlight design.

Electrifying delivery fleets, and commercial vehicles in general, should bring several benefits, including lowering greenhouse gas emissions, Kyle Murray, Massachusetts Program Director at the nonprofit Acadia Center in Boston. The state’s climate plans call for 25,000 electric trucks and buses on the roads by 2030.

“The commercial transportation sector is a significant contributor to greenhouse gas emissions,” Murray said. “It is critical that they transition to electric fleets as quickly as possible.”

To read the full article from the Boston Globe, click here.

Will NJ’s new goal mean homes need to replace boilers, furnaces with electric heat pumps?

New Jersey officials are tired of your old furnavce and boiler.

This month, they joined those from eight other states in setting a shared goal to have electric heat pumps provide roughly two-thirds of all residential-scale heating, air conditioning and water heating by 2030. By 2040, the goal is 90%.

The aim is to “reduce the carbon footprint of buildings,” which generate tens of millions of metric tons of CO2e greenhouse gases a year, said New Jersey Environmental Protection Commissioner Shawn M. LaTourette.

A 2022 report from Acadia Center found that electrification of heating systems could bring reductions of 20% or more to the average New Jersey homeowner’s utility bills. The report, commissioned by the New Jersey Conservation Foundation, found that adding electric appliances and winterization strategies along with heat pumps could cut bills in half.

To read the full article from NorthJersey.com, click here.

Opinion: Performance-based regulation of utilities is key for CT’s energy future

At the direction of the General Assembly, Connecticut’s Public Utilities Regulatory Authority has been at the forefront of innovation, overseeing a comprehensive analysis of a Performance-Based Regulation (PBR) framework for our electric utilities.

PBR 一 a modern approach to regulating utilities that moves beyond outdated policies一 is designed to ensure utilities are responsive to public policy priorities and are operating most efficiently on behalf of customers.

This approach makes the utilities partners in reducing costs and can accelerate the achievement of Connecticut’s environmental and climate goals by supporting a clean and affordable energy system. Connecticut is not unique in examining the potential of PBR to improve utility performance. Several jurisdictions around the country have adopted this model, and others are looking to Connecticut’s proceeding as a potential model for their own efforts. We commend PURA for its leadership in moving PBR forward in Connecticut.

Under traditional utility regulation, utilities make money by getting a guaranteed rate of return (as high as 10% in the Northeast) on capital expenses such as poles, wires, and substations. This made sense when the electric grid was brand new and needed to expand rapidly in order to bring electricity to millions of homes. Today, with a mature and technologically sophisticated electricity grid, this approach no longer serves customers.

More efficient solutions like non-wires alternatives such as energy storage, demand response, and distributed solar generation, do not provide an additional rate of return (i.e. earn extra money), so utilities have a clear incentive to continue building and upgrading their infrastructure in a traditional way 一which can end up more financially attractive for the utility but more expensive for customers. Simply put, under traditional regulation, utilities need to spend money in order to earn money.

At the same time, utility performance is traditionally measured using a limited set of metrics around safety and reliability, with little consideration of customer satisfaction or how well the utility is planning for the inevitable clean energy transition. This incentivizes utilities to play it safe when planning for the future, erring on the side of overestimating demand growth, underestimating distributed energy resources, and underutilizing non-capital solutions 一 all of which leads to customers footing the bill for an overbuilt energy system.

Very little progress in innovation in utility compensation has been made. Utilities are still operating under a framework that was established at the turn of the 20th century.

Utilities in Connecticut need to be encouraged financially to align their actions and business decisions with the state’s policy goals 一 such as reducing greenhouse gas emissions, protecting customers, and promoting environmental justice. Performance-Based Regulation ties utility earnings more directly to their performance, such as reducing ratepayer costs and emissions or supporting the deployment of distributed energy resources. By advancing a PBR framework, PURA is helping to realize these goals and is establishing Connecticut as a leader.

By allowing regulators to better align utility revenues with improved performance, PBR can help overcome outdated incentives and reorient utilities towards solutions that can save customers money and deliver additional benefits compared to traditional investments, including electric system resilience in the wake of recent post-storm power restoration challenges.

PURA has expressed a commitment to exploring a broad set of potential regulatory tools to support the PBR goals that stakeholders agreed to as part of the proceeding: improving utility operational performance; supporting public policy goals; empowering customers; and enabling reasonable, equitable, and affordable rates.

Throughout the proceeding, however, the utilities have consistently expressed skepticism and raised fears that PBR will jeopardize their businesses. These concerns are unsupported and are a distraction from the overdue effort of modernizing utility regulation for a meaningful and positive impact for customers. Rhode Island, Massachusetts, and New York have already employed performance incentive mechanisms and other PBR tools. Now, Connecticut has the opportunity to go beyond those states and demonstrate the full potential of PBR to the rest of the country.

Since taking the reins at PURA in 2019, Chair Marissa Gillett has overseen an impressive suite of regulatory dockets designed to improve the utilities’ distribution system planning and establish greater responsiveness and public transparency. PURA’s Equitable Modern Grid proceedings have established a framework to advance energy affordability, improve grid resilience and reliability, and support the cost-effective transition to a decarbonized future. PBR is important for establishing a firm foundation upon which these transformative initiatives can continue to flourish. Rather than stick to the status quo, Chair Gillet has embraced the challenge of evolving the regulatory space to meet the needs of today. Her leadership is helping Connecticut succeed in achieving the ambitious and imperative energy goals that will take us to a cleaner, more just future.

Utility shareholders cannot continue to dominate the conversation about Connecticut’s climate and clean energy future. The role that utilities play in advancing the public policy goals established by the legislature must evolve so that they no longer create barriers to a clean energy transition, but act as true partners in enabling a healthier and more affordable future. We applaud PURA for its efforts in making this vision a reality.

Oliver Tully is Director of Utility Innovation and Accountability at the Acadia Center. Charles Rothenberger is a climate and energy attorney at Save the Sound.

Op-Ed: Don’t give gas utilities a blank check to pursue dubious ‘alternative fuels’

The gas industry is trying to take New Jersey in the wrong direction on climate action. While other states are preparing consumers and workers to reduce reliance on natural gas, politicians in Trenton are considering legislation that would give gas utilities a blank check to pursue dubious, harmful “alternative fuels” that would only entrench our aging fossil fuel system further. 

The fact is, residents across the Northeast are increasingly turning to the health, economic and climate benefits of highly efficient electric equipment such as heat pumps and ditching their gas service. Research from Acadia Center shows that amid rising gas rates, New Jerseyans can save money when they swap out their gas HVACs for electric heat pumps. On the high end, New Jersey Natural Gas customers can save 41% of their annual energy bill by making the switch, while South Jersey Gas customers would save 32%. And soon, New Jersey residents will be able to access thousands of dollars in rebates and incentives to adopt the latest clean-energy technologies, thanks to the Inflation Reduction Act and new state incentive programs. 

To read the full article from NJ Spotlight News, click here.

Utility Innovation: 2023 Highlights and 2024 Look-Ahead

2023 was a noteworthy year for transformative utility policies in the Northeast. Acadia Center was actively involved across the region, participating in regulatory proceedings, submitting testimony on legislation, and building support among policymakers and other partners on key reforms.

Here are a few highlights from the year:

• The Future of the Gas Utility Becomes Clearer. The Massachusetts Department of Public Utilities (DPU) issued a groundbreaking order in its Future of Gas (DPU 20-80-B) proceeding. The Order sets a clear path forward for building electrification, more coordinated planning across gas and electric utilities, and more comprehensive consideration of solutions that avoid the need for fossil gas pipeline infrastructure. The Order also set the stage for a recently opened proceeding on energy burden and affordability (DPU 24-15). We expect this decision to serve as a model for other states as they consider the future of the gas utility.
• Performance-Based Regulation Moves Ahead in Connecticut. Connecticut’s Public Utilities Regulatory Authority (PURA) made significant strides in designing a Performance-Based Regulation framework for the state’s electric utilities. While a final decision won’t occur until later in 2024, PURA has led a robust stakeholder process as it considers a wide range of potential regulatory tools to better align utility performance with climate, clean energy, and equity priorities.
• Maine and Connecticut Advance Restrictions on the Use of Ratepayer Funding for Utility Lobbying. Maine (LD 325) and Connecticut (SB 7) joined Colorado in placing restrictions on the use of ratepayer funds to support utility lobbying efforts and trade association dues, both of which can mask activities that work in direct opposition to ratepayer and consumer interests.
• Integrated Distribution System Planning (IDSP) Picks Up Steam. Connecticut, Maine, and New York all made progress in moving forward with Integrated Distribution System Planning processes. The proliferation of distributed energy resources, the increasingly dynamic nature of the grid and energy production, and the implementation of essential laws and policies related to emissions, equity, and resiliency all mean that utilities can no longer plan for future grid investments in a siloed and uncoordinated manner. States have made some progress on integrated planning efforts that cut across silos and require utilities to consider grid needs and solutions in a much more holistic way.
• States Push Non-Wires Alternatives Forward. Non-wires alternatives (NWA) refer to technologies and services— such as energy efficiency, demand response, energy storage, solar PV, and microgrids—that can delay or defer traditional transmission and distribution infrastructure investment. NWA can consist of individual technologies or a portfolio of resources that meet a grid need in a more cost-effective way than traditional “wires and poles” solutions. Non-wires alternatives have the potential to provide significant benefits to ratepayers and grid operators because they help to avoid the need to pay for significant infrastructure investments that may become unnecessary in the future. Connecticut’s Non-Wires Solutions program is a notable example of a state working to make NWA business-as-usual investments for utilities.
• States Begin Testing Alternative Gas Utility Business Models. Massachusetts and New York are among several states in the country that are moving forward with pilots for thermal energy network projects, testing potential new future revenue streams for gas utilities as states accelerate progress on electrification.
• Maine Hits Heat Pump Target Two Years Early. In 2019, Governor Janet Mills set a 100,000 by 2025 heat pump target, and the state met that goal two years early in July 2023. Governor Mills has since established a new target of another 175,000 heat pumps in Maine by 2027. Maine also recently joined Rhode Island, New York, Massachusetts, and several other states in committing to meet 65% of future residential HVAC needs using heat pumps by 2030.

As we look ahead to 2024, Acadia Center is gearing up for several key opportunities and challenges across the Northeast:

• Smart rate design to support electrification and affordability will become increasingly important as the cost of necessary grid investments accelerates. Setting utility rates and allocating costs and revenues across utility customers are central, but complicated, components of utility regulation. As states electrify and DERs multiply, smart rate design is essential to ensure that customers face the right price signals and that costs and benefits are equitably distributed. Regulators and utilities will need to prioritize solutions to address energy burden and affordability as they consider how utility rates can best be utilized to support the clean energy transition.
• As more states explore Integrated Distribution System Planning, advocates are working to ensure effective IDSP plans and transparent stakeholder processes. Maine and Connecticut are just two states undertaking integrated grid planning efforts. Advocates will work throughout 2024 to ensure that utility planning efforts are comprehensive and accurately capture DER benefits while allowing for robust stakeholder review and input. We will also push for legislation in other states such as Rhode Island to implement an IDSP process.
• Translating the success of the Massachusetts DPU 20-80-B Order elsewhere. Acadia Center and other advocates will work to ensure a similarly successful outcome as DPU 20-80-B in other Future of Gas Proceedings (such as Rhode Island’s). We will push for other states to open their own proceedings to assess the future of the gas utility and for existing proceedings to support coordinated electric-gas planning efforts.
• Advocates are working to ensure the successful implementation of Performance-Based Regulation in Connecticut and pushing for legislation requiring PBR in Maine. 2024 will see the conclusion of Connecticut’s comprehensive PBR proceeding, and we and others are working to ensure a successful outcome. We are also working on legislation to implement PBR in other jurisdictions, such as Maine.
• States will continue to explore thermal energy utility models and expand pilot projects. As states consider the role of the gas utility in the clean energy transition, increasing attention will be paid to new business models that create opportunities to move from utilities that primarily sell gas to businesses that provide a range of thermal energy services. By reorienting the scope of traditional gas utilities, states can help to accelerate building electrification while continuing to utilize the expertise and skills that gas utilities bring to the effort.

The Northeast Grid Planning Forum: Uniting North Americans for Our Net Zero Future

The power grid is the backbone of the energy system. It is how electricity gets to our homes, communities and businesses. Grid operators run systems that collect billions of dollars from consumers to support the transmission, substations, and other infrastructure needed to transmit power from electric generators through the grid to the consumer. Decisions made around the power grid impact whether a transmission line is needed, how infrastructure is paid for, and whether clean energy, efficiency and other important energy resources are fairly considered.

Currently, grids in the greater northeast largely operate and plan independently of each other. However, as the need to displace fossil fuel usage with electricity grows, and resources like extensive offshore wind are added to the system, there is an increased need for grids to coordinate more directly. Coordination can produce clear benefits such as improving reliability, balancing wind and other resources, expanding ways energy efficiency can reduce demand on the system, reducing costs, and creating a more inclusive and responsive approach for community engagement in infrastructure siting.

Acadia Center is taking on the barriers to better grid coordination with our colleague clean energy group Nergica in Quebec, and the engagement of other professionals in both the U.S. and Canada. This effort, called the Northeast Grid Planning Forum (NGPF) is meant to encourage discussion around the potential benefits of increased grid coordination. Focusing on coordination between eastern U.S. and Canadian grid, the Northeast Grid Planning Forum envisions a future where collaborative energy system planning empowers stakeholders in the northeast United States and eastern Canada. This blog will delve into the key aspects of the Forum’s approach, its goals, and the imperative need for cross-border collaboration.

An Opportunity for Collaboration and Mutual Benefit:

Currently, the lack of coordination between states and provinces hinders the potential for mutual benefits. The result is higher costs and fewer tools to meet our collective goals. The current approach to grid planning, development, and operations occurs in silos, limiting the potential to capture these substantial mutual consumer, economic and system benefits. The Northeast Grid Planning Forum seeks to overcome this barrier through a deliberative stakeholder process that formalizes collaboration among states and provinces. Roundtable processes—environmental justice and community mobilization, interregional planning, First Nation and tribal, and clean energy procurement—aim to create a shared policy, legal, regulatory, and market/tariff toolset. With the growing role power grids play in climate and consumer issues, the Northeast Grid Planning Forum aspires to set a new paradigm in how stakeholders engage and influence power grid decisions.

Why Act Now?:

Communities have expressed frustration with rising power rates, reliability concerns, and a lack of meaningful participation in planning processes. The legacy approach to energy system development creates conflicts, making a coordinated and inclusive strategy essential. With the need to address reliability, affordability, climate, and responsive siting, the Forum aims to capture economic and consumer benefits while achieving decarbonization goals.

Challenge and Opportunity:

Modernizing energy systems to meet climate goals is a critical task. Independent studies indicate that the region must increase power grid output significantly. The current dysfunction, characterized by a lack of coordination and a focus on short- and medium-term reliability, hinders the systematic effort to coordinate resources. Collaboration emerges as a better way to power the region, offering enormous mutual benefits through a cooperative approach to energy system planning.

Launching a Dialogue for Interregional Action:

To build political legitimacy for clean energy, barriers slowing progress must be addressed. This includes reforming how system balancing authorities and system operators prioritize reliable clean energy, ensuring clean energy investments benefit communities with poor health and housing, and addressing concerns with clean energy projects and infrastructure siting.

Snapshot of Interregional Issues and Opportunities:

The Northeast Power Coordinating Council reliability zone serves as the target region for the Forum’s efforts. Various projects and developments, such as offshore wind targets, tidal power, and hydroelectric exploration, present both challenges and opportunities for interregional collaboration.

Shared Benefits Abound:

Multilateral grid and energy system coordination offer numerous benefits, including dynamic two-way power flows between provinces and states. The Forum seeks to catalyze discussions among energy planners, government leaders, and community stakeholders to address policy and social concerns in energy system planning. Priorities include energy planning processes, infrastructure development, and market mechanisms that support clean energy.

The Northeast Grid Planning Forum presents a groundbreaking effort to unite North Americans for a net-zero future. By fostering collaboration, addressing key challenges, and prioritizing shared benefits, the Forum aims to create a resilient and competitive energy future for the region. Interested stakeholders are encouraged to join this transformative interregional initiative. Acadia Center is proud to be pioneering these efforts with Nergica for the clean energy future the region deserves.

A Call to Action: Connecticut Climate Justice March and Acadia Center’s Support for 2024 Clean Energy Priorities

For Release: February 2, 2024

Download the Press Release: Acadia Center Press Release – 2024 Connecticut Climate Justice March

Hartford, CT – In the lead-up to the start of Connecticut’s 2024 legislative session, Jayson Velazquez – Acadia Center’s Climate and Energy Justice Policy Associate – today joined climate, energy, and environmental advocates, organizers, and activists in Connecticut’s Climate Justice March. In this call to action, participants and speakers called on legislators, officials, and organization leaders to take adequate action to address climate change.

In addition to the Climate Justice March, advocates, organizers, and activists issued a Climate Justice Letter with a detailed list of equitable solutions to align Connecticut with its emissions reduction targets outlined in the Global Warming Solutions Act (GWSA).

In addition to contributing to the list of solutions in this letter, Velazquez gave a speech during a stop on the Climate March in Hartford to highlight the pressing need to address energy inequities across the state.

Acadia Center expresses specific enthusiastic support for energy priorities outlined in the Climate Justice Letter:

• Operationalize Procedural, Distributive, Corrective, and Contextual Equity: Incorporate equity principles identified by the Governors’ Council on Climate Change (GC3) and the Connecticut Equity and Environmental Justice Advisory Council (CEEJAC) into Connecticut climate and energy plans.
• Increase Funding for, Identify, and Address Barriers to accessing Energy Efficiency Programs including the Home Energy Solutions Income Eligible (HES-IE) Program: Increase funding for efficiency programs to ensure maximum deployment of energy efficiency upgrades throughout the state, and ensure that adequate funding is devoted to workforce recruitment and training to ensure a robust energy efficiency workforce in Connecticut. The existing Community Partnerships Initiative could be leveraged to ensure barriers are identified, and solutions are collaboratively designed to provide increased access to energy efficiency programs.
• Expand Renewable Energy Deployment: Expand solar programs and establish targets for commercial, residential, and community solar projects, while addressing battery storage needs.
• Require Renewable Energy Sources on New Commercial and Industrial Construction: Support legislation to enable and incentivize municipalities to require renewable energy sources such as, geothermal, solar, heat pumps, etc., on new commercial and industrial construction.
• Heat Pump Deployment and Building Electrification: Invest in the electrification of newly constructed and existing homes. Support development of heat pump targets and financing programs, such as no-or-low interest loans for zero-emission heating equipment and necessary electrical upgrades to help support the transition to electric heat pumps and water heaters.
• Carbon Free and Healthy Schools: Support establishment of a $25 million CT Green Bank program to help schools implement energy saving and renewable energy construction projects.
• Grid Modernization and Grid Enhancing Technologies (GET): Support regional collaboration among northeastern states to strengthen interconnectivity in electric grid development and ensure GETs are
supported to better understand and develop electric capacity on our grid.
• Equitable and Responsible Energy Infrastructure Siting: Ensure the Connecticut Siting Council is empowered to address environmental injustices through analyses, collaborative and co-designed community-benefit agreements in the siting of energy generation and transmission infrastructure projects.
• Data Accessibility, Usability, and Transparency: Ensure data analysis capabilities are expanded at state agencies and considered as critical components of Connecticut climate and energy plans. Data should be publicly available, in usable tables, exportable formats, and opportunities should exist to request additional data to support advocacy efforts.

Acadia Center will continue collaborating with partners across Connecticut to push these goals forward in 2024. We look forward to an energizing and productive legislative session in the coming months, in a year that will be pivotal for the state and region’s progress in combating climate change and inequity.

Although Acadia Center contributed to and participated in the development of the Letter issued today, we did not directly sign on due to some policy priorities extending beyond our scope of work.

Media Contact
Jayson Velazquez, Climate and Energy Justice Policy Associate
jvelazquez@acadiacenter.org, 860-246-7121 x203

Environmentalists demand Northeast governors oppose gas pipeline expansion project

A multistate coalition of over 90 environmental organizations is demanding that the governors of Massachusetts, Connecticut, Rhode Island and New York publicly oppose a proposal to expand a major natural gas pipeline in the Northeast.

The company behind the project, Enbridge, says piping more natural gas into the region will help stabilize energy prices, make the electric grid more reliable and help states meet their climate goals by burning less oil on cold days. But the coalition opposing the project — which includes groups like the Sierra Club, the Acadia Center, the Conservation Law Foundation and 350 Mass — disagrees.

“More pipelines will only exacerbate our existing fracked-gas dependence, raise our energy bills, and harm our communities,” the coalition members wrote in letters they recently delivered to the four governors. “In order to mitigate the climate crisis, and to protect our communities, the amount of fossil fuels burned must be decreased immediately and [states must implement] policies that ensure the just and rapid transition to a cleaner, renewable energy-powered regenerative economy.”

To read the full article from wbur, click here.

Advocates urge Governor Healey to oppose major gas expansion proposal

A coalition of climate advocates is calling on Governor Maura Healey to oppose the proposed expansion of a gas pipeline, called “Project Maple,” which they say would hurt frontline communities and worsen the climate crisis.

In a letter sent to Healey on Wednesday, the advocates asked Healey to clarify her stance on the proposed project from the Canadian-based pipeline and energy company Enbridge. Healey has previously said she won’t allow any new gas pipelines, but Project Maple isn’t technically new. The company has proposed building next to existing pipelines and making upgrades to increase capacity.

Given that, Kyle Murray, Massachusetts program director at the clean energy advocacy group Acadia Center, said it’s likely that if Project Maple got built, it will “end up being a stranded asset that costs ratepayers a lot more in the longterm.”

To read the full article from the Boston Globe, click here.