Acadia Center Releases Findings on Regional Greenhouse Gas Initiative (RGGI) Offering Insights into the Allocation of Program Proceeds and Equity Investments

Full Report: Acadia Center RGGI Funds in Action

For Immediate Release
For Release: November 13, 2024
Media Contact:
Paola Moncada Tamayo
Policy Analyst
860-246-7121 x204; 305-504-9720 cell

Program model demonstrates continued impact and the importance of regional, multi-state action and cooperation in wake of federal election outcome.

RGGI Improves Reporting Related to Proceeds Investments Benefiting Environmental Justice Communities but Still Leaves Room for Improved Transparency and More Rapid, Equitable Investment of Program Funds.

Boston, MA – As participating states continue to undertake the Third Program Review of the Regional Greenhouse Gas Initiative (RGGI), Acadia Center today released a report titled RGGI Funds in Action: Insights into the Allocation of RGGI Proceeds, analyzing the investment of RGGI proceeds to date and offering recommendations for improving the process by which future funds are invested. In the wake of the federal election results, the report highlights the continued importance of cooperation at the sub-national level and validates the ongoing benefits that RGGI investments are driving, representing a model for durable multi-state collaboration. The report also examines in detail the first-ever data released jointly by the RGGI states on progress regarding the distribution of investments – totaling 30% – benefitting underserved and environmental justice (EJ) communities, demonstrating some progress but important remaining work to increase equity and improve transparency.

“This report provides more evidence for what Acadia Center has long believed to be true: regional and multi-state action on climate can have real impact. This is more important now than ever. The report’s analysis also shows that the benefits of the RGGI program extend far beyond power plant emissions reductions through the reinvestment of program proceeds into efforts driving clean energy, saving energy, and easing energy burdens,” said Daniel Sosland, President of Acadia Center. “Even as RGGI continues to drive significant benefits, there are still significant improvements to be made to drive greater equity and transparency in the investment of program proceeds. Acadia Center commends the RGGI States for new reporting in this regard and encourages them to go even further to maximize program impact and make a strong case for continued multi-state and regional action.”

“The most recent 2022 RGGI Proceeds Report released by RGGI Inc. in summer of 2024 made a significant advancement in transparency by providing a breakdown of investments directed toward EJ communities for the first time,” said Ben Butterworth, Director, Climate, Energy, and Equity Analysis, at Acadia Center. “Based on the summation of individual state reporting, the RGGI, Inc. report estimates that EJ and equity investments totaled approximately 30% of all RGGI proceeds invested by participating states in 2022. Acadia Center has been calling on RGGI, Inc. to include this data for several years, and we commend RGGI, Inc., and the RGGI states on this initial effort to present this critical data, which can help inform and set the stage for continued equitable investment strategies across the region.”

Notwithstanding this improvement in high-level reporting of RGGI proceeds investments directed at EJ communities, the Acadia Center Report also found that both RGGI, Inc., and the RGGI-participating states can improve the quality of RGGI proceeds investment reporting. In the future, more granular data should include a clear breakdown of who is receiving the proceeds, how funds are being allocated, and what measurable outcomes are being achieved for EJ communities and households across all participating states.

“The aggregated data on EJ investments lack granularity, including a breakout of EJ investment at the individual state level to determine whether each state’s approach aligns with the broader goals of EJ and effective use of proceeds,” pointed out Paola Tamayo, Policy Analyst, and primary analyst of the report. “We encourage RGGI, Inc., to build on its progress by providing more specific information on the categories for EJ funding, which will require the provision of more granular data from state agencies and program administrators responsible for allocating and deploying proceeds investments.”

Acadia Center recommends four key actions that should be taken by RGGI-participating states:

• Establish a requirement that a minimum of 40%-50% of RGGI proceeds are invested in EJ and other underserved communities, setting a value that does not change even if other RGGI funds are raided/diverted.

• Clearly articulate how EJ communities are being defined across all RGGI states and identify in greater detail how these definitions inform which investments are considered as equity and EJ-related.

• Invest in energy efficiency and other clean energy measures as soon as possible to avoid lengthy gaps between auctions and committed/realized investments, address existing energy burdens, and lock-in higher lifetime energy and emissions savings.

• Enhance transparency by publishing detailed breakdowns of proceed allocations going toward EJ and equity priorities for each state, including low-income households. This should be done from both RGGI, Inc.’s reports and state agencies’ reports on RGGI spending.

“Acadia Center’s report highlights how strategic and transparent management of RGGI proceeds is crucial to maximizing the program’s impact on emissions reductions and delivering benefits to underserved communities,” noted Dr. Mark Mitchell, Emeritus Professor of Climate, Energy, and Environmental Health Equity at George Mason University. “Implementing the recommended actions will enhance the effectiveness of the RGGI programs and promote greater accountability, transparency, and community engagement in the allocation of proceeds, building trust in the program and future policies that may emulate elements of the RGGI model.”

Larry Chretien, Executive Director of Green Energy Consumers Alliance, added, “We’ve known from the start that RGGI benefits everyone in the participating states. But there’s always room for improvement, and the Acadia Center report shows us how RGGI can do a better job of cleaning the air in EJ communities. This is an important contribution to the public’s review of RGGI.”

States should look to redouble their efforts in the wake of the election to continue strengthening RGGI while improving the program’s investments to benefit all residents. Acadia Center looks forward to working with the states, RGGI, Inc., and many partners in the coming months to finalize a strong Third Program Review and build on these improvements in the equity and transparency of program investments and reporting.

Additional facts about the benefits of the RGGI program:

1. Significant Emission Reductions: Since its inception, RGGI has successfully helped reduce CO2 emissions from the power sector by nearly 50%, which is 10% more than the 40 states that have not consistently implemented a price on greenhouse gas emissions (Acadia Center’s 2023 report).

2. Economic Benefits: RGGI has generated over $8.3 billion in auction proceeds that states have invested in energy efficiency, renewable energy, and other programs. These investments help create jobs, stimulate economic growth, and reduce energy costs for consumers. (RGGI Inc’s website).

3. Job Creation: RGGI investments have been associated with the creation of thousands of jobs in the clean energy sector. Since its inception, RGGI has created approximately 48,000 job-years (Analysis Group report).

4. Consumer Savings: Programs funded by RGGI proceeds have led to significant energy savings for consumers. In 2022, RGGI investments in energy efficiency are projected to save participants over $1.5 billion on energy bills (RGGI Inc’s most recent proceeds report).

5. Environmental Justice Focus: RGGI states are increasingly directing funds to support environmental justice initiatives. In 2022, 30% of the total RGGI proceeds were reported to be allocated to these initiatives (RGGI Inc’s most recent proceeds report).

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Acadia Center is a nonprofit research and advocacy organization committed to advancing the clean energy future.

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As Rhode Island considers future of gas, advocates call for ‘realism’ on cost, availability of RNG

As a state committee studies ways to wean Rhode Island off of natural gas, several of its members want the group’s final report to dismiss one potential pathway as wholly unrealistic.

Switching to renewable natural gas or other alternative fuels appears to be neither a feasible nor a financially viable solution at this time, say multiple stakeholders who have commented on a draft outline of a report a consulting group prepared for Rhode Island regulators.

Ben Butterworth, director of climate, energy and equity analysis for the nonprofit Acadia Center, told ENN his organization would like to see Rhode Island prioritize much of what is in the Massachusetts strategy: a focus on electrification and energy efficiency, disincentivizing further expansion of the gas system, and pilot programs focused on the strategic decommissioning of the gas system.

The PUC must also consider how to fund the transition, Butterworth noted. Vermont and Massachusetts are pursuing a clean heat standard as a funding mechanism for climate goals, while New York is pursuing a cap-and-invest approach.

“Finding that mechanism is critical, and the report should include at least those options,” Butterworth said.

To read the full article from Energy News Network, click here.

GridTECH Connect Forum Northeast 2024: Connecticut State Policy Spotlight

Acadia Center was invited to participate and present at GridTECH Connect Forum Northeast in Newport, Rhode Island, on October 28 – 30. GridTECH Connect Forum is a conference focused on distributed energy resources and utility-scale interconnection, renewable energy development, clean energy policy, utility regulation, and more. The conference facilitated conversations on innovative solutions, forward-thinking policy, and clean energy programs that are helping the Northeast reach ambitious clean energy goals. Speakers and workshops during the event highlighted key challenges and obstacles on the path to phasing out fossil fuels and transforming and modernizing the grid while providing a unique opportunity to advance the critical issue of grid interconnection.

In the Northeast, obstacles remain in place on the path to meeting clean energy targets. The region must continue to work collaboratively on grid modernization and distributed energy resources, policy and regulatory processes, and bold solutions that align with an equitable clean energy economy.

Acadia Center’s Climate and Energy Justice Policy Associate, Jayson Velazquez, presented a state policy spotlight on Connecticut to a diverse array of stakeholders ranging from electric utilities and grid operators to project developers, policymakers and policy advocates from the region. Jayson shared policy progress over recent years, including present and future opportunities in Connecticut’s clean energy transition.

Here are some key takeaways from the conference and key points from the Connecticut state policy spotlight:

Energy Affordability and Equity: Connecticut residents face some of the highest costs for electricity in the country and over 400,000 households in Connecticut face unaffordable energy costs. Energy burden for households with an income 0-60% of the state median income experience an energy burden well above 6%. If the energy burden of these households were reduced to 6%, residents would be saving hundreds of millions of dollars on energy. Recent rate increases, which can be better understood here, have brought high energy costs, the Public Benefits Charge, and the affordability of the state’s clean energy transition to the forefront of media.

Energy Efficiency: The Connecticut Energy Efficiency Board approved the 2025 – 2027 Conservation and Load Management plan which has a total budget of $706M. This is a slight decrease in the available budget despite rising operation costs and increased residential and income-eligible program demand. There are opportunities with incoming federal funding to provide pathways for energy efficiency and electrification. However, it is critical to continue balancing traditional energy efficiency measures with electrification, and electrification with weatherization.

Utility Innovation and Accountability: Connecticut and the Public Utilities Regulatory Authority (PURA), under the leadership of Chair Marissa Gillett, have become innovative leaders in recent years on utility regulation. Many of the recent advances can be attributed to the 2019 Equitable Modern Grid Framework, which comprised almost a dozen proceedings focused on updating grid infrastructure, planning processes, communications, and data management systems to improve grid readiness for advanced energy technologies. The Equitable Modern Grid Framework also included battery storage incentive programs, plans for advanced metering infrastructure and smart meter deployment, updated low-income discount rates, and the Innovative Energy Solutions program to support pilot projects from both utilities and third parties. Recently, the focus has been largely on the Performance-Based Regulation (PBR) proceeding, which was initiated by the Take Back Our Grid Act in 2020. More on Connecticut’s PBR proceeding, which is now moving into the Integrated Distribution System Planning framework, can be found here. Other notable advancements from PURA include upstanding a Stakeholder Compensation Program that provides funding opportunities for organizations who might have had barriers to participating in PURA proceedings. Senate Bill 7 from 2023, prohibited the recovery through customer rates advertising, lobbying, charitable, investor-related, and trade association expenses used to influence public opinion.

Offshore Wind: In 2019, Connecticut authorized the procurement of up to 2,000 MW of offshore wind energy by 2030, equivalent to 30% of the state load and the largest authorization of any state in the region at the time. The Connecticut Department of Energy and Environmental Protection (DEEP) estimated an additional 3,745 to 5,710 MW of offshore wind would be needed to meet the state’s 2040 zero carbon goals. In 2023, Connecticut saw the termination of the Power Purchase Agreement from Avangrid for the Park City Wind Project. In 2024, intended multi-state offshore wind procurement efforts between Connecticut, Massachusetts, and Rhode Island have not yet produced the intended outcomes. There have been no new offshore wind commitments from Connecticut despite ongoing discussions across the region.

Federal Funding Awards: Connecticut, in collaboration with states in the region and on its own, has been awarded a substantial amount of federal funding for clean energy projects. In a joint effort, Connecticut and states in the Northeast received a combined $450M Department of Energy award to fund a multi-state heat pump deployment effort. Connecticut and Northeast states were also awarded a $389M Department of Energy award through the Grid Innovation Program (GRIP) to fund regional electric infrastructure through Power Up New England. On transportation, Connecticut and other states were awarded $250M to fund medium- and heavy-duty electric charging stations along a multi-state I-95 corridor. Under the leadership of DEEP, the Lamont Administration, and key clean energy stakeholders, Connecticut has also been awarded $62.45M to upstand Solar for All, and an additional $100M split across Home Energy Rebates and Home Electrification and Appliance Rebate Programs.

Looking Ahead and Upcoming Priorities: As the 2025 legislative session approaches, key priorities to further Connecticut’s clean energy transition include increased energy efficiency funding, pursuing a future of gas and affordable head proceeding, grid enhancing technologies, advanced transmission technologies, and non-pipeline alternatives.

Acadia Center would like to thank GridTECH Connect Forum Northeast for the opportunity to share policy knowledge and expertise with conference attendees. A special thank you to Katie Kuzma and the conference planning team for support and assistance with logistics.

To view the full presentation, click here.

A Statement on the Impact of the Election on Clean Energy and Climate Progress

To the Acadia Center Community,

Over the past few days, myself and the Acadia Center team, alongside the nation, have begun to process the vastly different political landscape we’ll be working in for the next four years. The severe threats a changing climate poses to our economic security, quality of life, and safety are not bound by political elections. Climate is science, and as we look to the future, Acadia Center is redoubled in its determination to reduce emissions, encourage clean energy, and prioritize public health.

The work Acadia Center does advocating for multi-state efforts to accelerate progress, working with diverse partners at the regional, state, and local levels, and implementing a clean, safe and economically prosperous climate future for all, will be one of the most important bulwarks to keep progress moving and minimize possible damage. States, regions, and cities have the ability– and responsibility – to strengthen their longstanding commitment to climate leadership in the next four years.

With the likely shift in the national approach to climate and energy, several trends have emerged, presenting both challenges and critical motivators for Acadia Center’s mission.

The scale of potential damage is large. Analysts from CarbonBrief report that a shift in administration could result in an additional 4 billion tons of U.S. emissions by 2030—equivalent to the combined annual emissions of the EU and Japan. This increase could cause global climate damages worth more than $900 billion, according to the latest U.S. government valuations.

The new administration could interfere with federal agencies like the EPA and NOAA. This would leave enormous gaps in the data we rely on to understand emissions trends and weather impacts. While it’s unclear how quickly this could unfold, Acadia Center remains vigilant in tracking these developments and the potential impact on our efforts.

The role of state, regional, and municipal climate action is indispensable. These jurisdictions have significant authority over key sectors and can enact policies that move the needle on emissions reductions. From regulating utilities to enforcing renewable energy standards and advancing clean transportation solutions, state and local leadership will be crucial in filling the gaps that may arise if national support falters. Acadia Center’s long-standing focus on empowering states and localities will be more important than ever.

Let us keep in mind that the clean energy future is happening. Clean energy markets are growing rapidly, driven by technological advances, cost competitiveness, and the increasing recognition of climate-related risks by the business community. In fact, renewables now comprise over 30% of U.S. utility-scale electrical generating capacity. Clean energy is building the jobs of the future, from brand new electric vehicle manufacturing plants, to battery storage, to training electricians in home installations. The economics alone should dictate that clean energy – from solar and batteries to EVs and transmission – should be an essential centerpiece of an energy abundance and energy security agenda – offering the most affordable, scalable, and resilient energy that our evolving economy needs. These developments provide a foundation of success as we look toward the future, underscoring the need for continued collaboration between industry, government, and civil society.

In the face of these challenges and opportunities, I am reminded that meaningful progress often requires resilience and cooperation. Acadia Center is here to drive these efforts.

For 25 years, Acadia Center has crafted ambitious but practical solutions, offered credible information, and shown how clean energy and climate action are the pathways to a healthier, more stable, and resilient economic future. Thank you for your continued support, and I look forward to the work ahead with purpose and determination.

Sincerely,

Dan Sosland

President, Acadia Center

The race for clean energy is local

The U.S. power grid is at a critical crossroads. Electricity generation, like every other industry, needs to rid itself of fossil fuels if the country is to play its role in combating the climate crisis — a transition that will have to happen even as energy providers scramble to meet what they claim is an unprecedented spike in electricity demand, attributed to the rise of AI.

“There can be an extreme imbalance between the different parties who might be participating in these proceedings,” said Oliver Tully, the director of utility innovation and reform for the Acadia Center, a nonprofit advocating for clean energy across New England.

In Connecticut, one of the states where Tully works, it took a natural disaster to usher in change. Hurricane Isaias left some 750,000 people without power in August 2020, some for more than a week. The state’s utility commission, the Public Utilities Regulatory Authority, or PURA, ultimately issued millions of dollars in fines over utilities’ slow response or lack of preparation. The storm, Tully said, got state leaders thinking seriously about how those utilities are governed.

“That was the catalyst that got a lot of legislators talking about the need for change within the world of utility regulation,” he said.

It’s not a shift utilities are often fond of, and their powerful lobbying efforts can be a major obstacle. The resistance in Connecticut was so vehement, Tully said, that lawmakers in Maine abandoned a similar bill.

“This is a perennial risk of these kinds of proceedings,” he said. “It represents a threat to the status quo of how utilities have been operating for many, many years.”

The Connecticut commission is still working on how it will implement performance-based regulation, and the other changes are relatively new as well, so their impact is still “to be determined,” Tully said. But he and his colleagues were encouraged that the advisory councils have pushed PURA to consider equity.

While a hurricane kickstarted change for Connecticut, it also took a lot of advocacy — both “up and out,” said Jayson Velazquez, one of Tully’s colleagues based in Hartford. The group and its allies lobby “up,” working to get lawmakers and commissioners on board with passing reforms. And they also work “out,” communicating their findings and the issues before the commission to the public and engaging environmental justice groups and community members.

“A lot of the work that we’re doing is bridging that gap between environmental justice groups and our regulators,” Velazquez said. “You kind of have to raise the collective consciousness of the groups before you can really get into effecting change.”

To read the full article from Grist, click here.

In the race for clean energy, a couple hundred overlooked officials control the US power grid

The U.S. power grid is at a critical crossroads. Electricity generation, like every other industry, needs to rid itself of fossil fuels if the country is to play its role in combating the climate crisis — a transition that will have to happen even as energy providers scramble to meet what they claim is an unprecedented spike in electricity demand, attributed to the rise of AI.

“There can be an extreme imbalance between the different parties who might be participating in these proceedings,” said Oliver Tully, the director of utility innovation and reform for the Acadia Center, a nonprofit advocating for clean energy across New England.

In Connecticut, one of the states where Tully works, it took a natural disaster to usher in change. Hurricane Isaias left some 750,000 people without power in August 2020, some for more than a week. The state’s utility commission, the Public Utilities Regulatory Authority, or PURA, ultimately issued millions of dollars in fines over utilities’ slow response or lack of preparation. The storm, Tully said, got state leaders thinking seriously about how those utilities are governed.

“That was the catalyst that got a lot of legislators talking about the need for change within the world of utility regulation,” he said.

It’s not a shift utilities are often fond of, and their powerful lobbying efforts can be a major obstacle. The resistance in Connecticut was so vehement, Tully said, that lawmakers in Maine abandoned a similar bill.

“This is a perennial risk of these kinds of proceedings,” he said. “It represents a threat to the status quo of how utilities have been operating for many, many years.”

The Connecticut commission is still working on how it will implement performance-based regulation, and the other changes are relatively new as well, so their impact is still “to be determined,” Tully said. But he and his colleagues were encouraged that the advisory councils have pushed PURA to consider equity.

While a hurricane kickstarted change for Connecticut, it also took a lot of advocacy — both “up and out,” said Jayson Velazquez, one of Tully’s colleagues based in Hartford. The group and its allies lobby “up,” working to get lawmakers and commissioners on board with passing reforms. And they also work “out,” communicating their findings and the issues before the commission to the public and engaging environmental justice groups and community members.

“A lot of the work that we’re doing is bridging that gap between environmental justice groups and our regulators,” Velazquez said. “You kind of have to raise the collective consciousness of the groups before you can really get into effecting change.”

To read the full article from WABE, click here.

Massachusetts legislation looks to remove barriers to the state’s shift from natural gas

Nearly a year after Massachusetts regulators laid out a vision for the state’s evolution from natural gas distribution to clean energy use, lawmakers are coalescing around legislation that would start converting principles into policy.

The wide-ranging climate bill includes several provisions that would allow utilities to explore alternatives to gas and empower regulators to place more limits on the expansion and continuation of natural gas infrastructure, changes that supporters say are critical to a successful transition away from fossil fuels.

“A lot of people were skeptical we’d get a bill at all, but I’m happy with where this bill ended up,” said Kyle Murray, Massachusetts program director for climate nonprofit Acadia Center. “It shows a step toward that needed urgency.”

Another major element of the bill would reform the state’s Gas System Enhancement Plans program, which encourages utilities to repair or replace pipes in the state’s aging and leak-prone natural gas distribution system. Clean energy advocates have often argued that these plans are problematic, investing billions of ratepayer dollars into shoring up a system that is increasingly obsolete. The climate bill would allow utilities to choose to retire segments of pipe rather than fixing them.

“For the first time ever they are able to look at a pipe and say, ‘You know what, this is not worth the cost,’” Murray said. “We don’t want ratepayers shouldering the burden for a lot of stuff that’s not going to be useful in five to 10 years.”

To read the full article from Energy News Network, click here.

Coalition of 28 organizations files brief in support of continued net metering in Puerto Rico

A coalition of 28 organizations, including leading U.S. and Puerto Rican nonprofits, solar and battery companies, filed a brief in federal court to stand against changing Puerto Rico’s net metering policy.

The Amicus brief was signed by the following organizations: Acadia Center, Astrawatt Solar, Bright Ops, Bright Panel, Carpe Diem Developers PR, EarthSpark International, EDPR NR DG, Elders Climate Action, Enphase Energy Inc, FranklinWH, Freedom Forever, GRID Alternatives, IREC, Mechanical Contractors Association of PR, Para la Naturaleza, Power Solar, Pytes, SMA, Sol-Ark, Solar and Energy Storage Association (SESA), Solar Energy Industries Association (SEIA), SolarEdge Technologies Inc, Sunnova, and Teksol Integration Group, Inc.

To read the full article from PV Magazine, click here.

State agency wins half million dollar federal grant aimed at reducing emissions at New Bedford port

A Massachusetts economic development agency has won a half million dollar federal grant aimed at reducing emissions and measuring air pollution at the New Bedford port, the U.S. Environmental Protection Agency announced Tuesday.

The money for the New Bedford Marine Commerce Terminal — an offshore wind facility being developed by the Massachusetts Clean Energy Center — is one of 55 grants awarded by the EPA as part of the Biden administration’s nearly $3 billion Clean Ports initiative.

Boston environmentalist Kyle Murray — a policy director at the clean energy nonprofit Acadia Center — told GBH News that he is hopeful that Massachusetts officials will do more to decarbonize aspects of marine shipping around Boston. He has been calling for local leaders to address the region’s growing shipping industry.

“I am quite disappointed with this outcome,” Murray said.

To read the full article from GBH, click here.

New Mass Save Plan Receives Support from Healey-Driscoll Administration and Stakeholders

Boston — The Healey-Driscoll Administration today announced that the Massachusetts Energy Efficiency Advisory Council (EEAC), which is chaired by the Department of Energy Resources, unanimously voted to approve a resolution to support the draft 2025-2027 Three-Year Energy Efficiency Plan for Massachusetts’ nation-leading energy efficiency programs. The Three-Year Plan guides the Mass Save® program. Over the last year and a half, DOER, the EEAC, and the Mass Save Program Administrators (PAs) collaborated to develop the draft Three-Year Plan.

Kyle Murray, Director, State Program Implementation and Massachusetts Program Director, Acadia Center

“With each recent iteration of the Three-Year Energy Efficiency Plan, the Commonwealth has taken significant steps forward toward a decarbonized future. This plan is no exception. It delivers upon long-requested improvements to the customers journey and provides record funding for investments in equity. I am proud to have been a part of this process.”

To read the full press release from mass.gov here.