Transportation and Climate Initiative: Brief Update on the State MOU Announcement

On December 21, 2020, Massachusetts, Connecticut and Rhode Island, and the District of Columbia announced their participation in the Transportation and Climate Initiative Program (TCI-P) by signing onto a Memorandum of Understanding (MOU).  Acadia Center believes this represents a major milestone in a project that we have long championed and a critical component of our vision for a just and sustainable future. We offer some comments on the announcement.

The four jurisdictions participating in the program need to achieve significant emission reductions from the transportation sector to meet their ambitious climate targets. Transportation pollution accounts for 46% of the CO₂ emissions across Connecticut, Massachusetts, Rhode Island and Washington, D.C., which is more than double the contribution to climate change from any other sector. Participation in the TCI program will enable these jurisdictions to invest hundreds of millions of dollars each year in clean transportation projects that create jobs, boost the economy, improve mobility, and slash pollution. For those reasons, the TCI program is the first transportation strategy discussed in the Baker administration’s newly released 2030 Clean Energy and Climate Plan, which is designed to achieve a 45% reduction in GHG emissions by 2030. Whether Massachusetts sticks with the Baker administration’s 45% reduction target or the legislature’s newly passed climate bill with a 50% by 2030 requirement, the TCI program will play a critical role in delivering a cleaner, more equitable transportation system.

Acadia Center has played a central role in the TCI Process

• In the spring of 2017, Acadia Center convened the first meeting of TCI advocates from the region, launched a regional advocates listserv and began hosting bi-weekly TCI advocates calls. Acadia Center played a leading role in creating Our Transportation Future, the public face of the regional TCI advocates network.
• In January 2018, Acadia Center partnered with the Fletcher School at Tufts University to host the Future of Transportation Symposium, convening regional stakeholders, academics, and Baker administration officials for an exploration of TCI and other clean transportation opportunities.
• In early 2019, Acadia Center, the Green Justice Coalition, and T4MA launched the MA TCI Table, a new forum designed with intentionality to balance the perspectives of the Commonwealth’s environmental, transportation, and justice communities. By welcoming all voices to the Table, particularly those with concerns about the TCI program, we started and sustained a dialogue around TCI and our shared vision for a sustainable and equitable transportation future. The Table also created a new venue for direct engagement between stakeholders, the Baker Administration, and legislative leaders, allowing them to hear our support, our concerns, and offering a pathway for collaboration on policy solutions.
• Due to the success of the MA TCI Table, Acadia Center replicated the model alongside partners in Connecticut and Rhode Island. Across southern New England, these forums have united stakeholders, engaged state decisionmakers, and delivered the support necessary for governors to sign the TCI MOU.
• Throughout the process, Acadia Center has been committed not just to delivering the policy, but to getting the details right. From analysis of the emissions cap to protections for overburdened communities, Acadia Center has worked with our partners across the region to provide the TCI states with actionable recommendations for a robust and equitable program. In November of 2020, as the states worked to put the finishing touches on the MOU, Acadia Center organized, helped draft, and submitted a sign-on letter with 200 signatory organizations containing specific recommendations for a TCI Program that would meet the needs of the region’s communities and the urgency of the climate crisis. Many of the recommendations in that letter were incorporated into the MOU, including the more stringent emissions cap, the commitment to air quality monitoring in environmental justice communities, and the requirement for TCI-funded investment in overburdened and underserved communities to be at least proportional to the populations of those communities.

Additional Content on the MOU

The collaboration between Connecticut, Massachusetts, Rhode Island, and Washington, D.C. represents action at a significant scale. With a combined GDP of $1.09 trillion, the participating jurisdictions would be the world’s 15th largest economy, similar in output to Mexico. The MOU charts an ambitious emission reduction trajectory. The emissions cap will decline by 30% from 2023 to 2032, consistent with recommendations Acadia Center submitted on behalf of 200 organizations in November. Reducing CO₂ emissions from transportation fuels by 30% will help states achieve their climate targets while delivering critical improvements in air quality. While additional policies are necessary to achieve Acadia Center’s vision for a just and sustainable future, TCI has an important role to play in that transition.

TCI jurisdictions have worked to incorporate stakeholder feedback to make the program more equitable and ambitious. Important new provisions have been added to last year’s draft MOU to ensure that overburdened and underserved communities receive at least their proportional share of TCI proceeds, that those communities are included in investment decisions and program design, and that air quality monitors will be deployed in the most polluted communities. These commitments represent significant progress at the regional level, but states—and advocates—have much more work to do to develop stakeholder processes and policy solutions that meet the needs of their communities. An equitably-designed TCI program will benefit overburdened and underserved communities, but the participation of those communities in that process is critical. TCI is just one piece of the puzzle: other action, like guaranteed pollution reduction in environmental justice communities and affordable, reliable transit, will still be necessary to deliver transportation justice.

Recent polling shows that 71% of the region’s voters support their state participating in the TCI program, and almost 80% support using TCI revenue to modernize and expand public transit service.

We are particularly gratified that the three states joining the MOU are those where Acadia Center played a leadership role working with many diverse voices to advance support for TCI in coalitions like the Massachusetts TCI Table, who worked together to build respectful working relationships.  These strong coalitions successfully championed a common set of priorities and messages when engaging with decision makers and key stakeholders and preparing public facing materials showing the benefits of TCI.

The four MOU signatories deserve credit for leading the way, and all signs point towards the program growing before the official launch in 2023. While the four-jurisdiction program would be significant in its own right, we expect that, much like RGGI, the program will launch with more states than were on the initial MOU. In a separate document, the four MOU signatories were joined by eight other TCI member states to assert that they are collaborating on the next steps of the cap-and-invest program’s development, suggesting that the program will expand beyond southern New England and D.C. Notably, this list includes a new TCI member, North Carolina, demonstrating the appeal of the TCI framework. All together, these jurisdictions would represent the world’s third largest economy.

Forward-Looking Acadia Center TCI Priorities

As Acadia Center highlighted in a recent NYT article, this four-jurisdiction TCI Program is just the beginning.  Acadia Center is dedicated to continued efforts to support equitable TCI implementation, garner further state commitments, and build the case for TCI with stakeholders and policymakers.

In our core target states of CT, MA and RI, Acadia Center will:

• Work with community-based partners and state agencies to ensure the program is implemented equitably
• Identify high-impact investment opportunities that improve local air quality, deliver better transportation options, and help states achieve their climate targets
• Where necessary, support enabling legislation to grant states authority to participate in TCI Program

Regionally and in other TCI states, Acadia Center will:

• Strategically build the case for TCI participation with governors’ offices, state agencies, legislators and key stakeholders and address points made by TCI opponents. As an example, Acadia Center’s recently published op-ed in the Portland Press Herald demonstrates that it is not too late for Governor Mills to bring the TCI program’s benefits to Mainers.
• Quantify and highlight the in-state benefits of TCI participation, and identify the lost benefits and missed opportunity for states that opt out.
• Continue to lead and coordinate activities of the regional TCI advocates network.

New Hampshire Must Continue to Push for Energy Efficiency Gains

This holiday season provides a chance for the New Hampshire Public Utilities Commission (PUC) to deliver the gift that keeps on giving to Granite Staters: a strong energy efficiency program for 2021 and beyond. New Hampshire energy efficiency programs deliver a diverse set of benefits to consumers including lower overall energy system costs, individual cost savings, improved comfort, and lower overall greenhouse gas (GHG) emissions, not to mention supporting almost 12,000 jobs in that state’s efficiency industry.

The PUC is set to vote on whether or not to approve the 2021-2023 Energy Efficiency Plan that implements the state’s Energy Efficiency Resource Standard. The Plan would require the state’s electric and gas utilities to reduce annual electric demand by 4.5% and fossil gas by 2.8% over 2019 sales. While the Acadia Center supported even more ambitious savings targets of 5% for electric utilities and 3% for gas utilities, we believe that the final Plan represents an effective energy efficiency strategy for action over the next three years. Acadia Center supports the continued progress toward acquisition of all cost-effective energy efficiency resources across all fuel types and sectors, helping New Hampshire residents, businesses, institutions, and low-income families meet their energy needs while reducing their cost of energy.

The Granite State lags its New England neighbors in overall energy efficiency policies and progress according to the recently published American Council for an Energy-Efficient Economy’s 2020 national efficiency state scorecard. While Massachusetts, Connecticut, Rhode Island, and Vermont are in the top 10 for overall state-wide energy efficiency policies, with these states saving enough electricity in 2019 to power 250,000 homes for a year, New Hampshire remains stalled in the middle of the pack. While the state has seen improvements in recent years, it must do more to become a regional leader on energy efficiency. New Hampshire residents and businesses deserve to reap the full benefits of robust energy efficiency programs, which not only reduce energy use and costs, but improve public health, support economic growth and employment in energy efficiency sectors, and are consumer-friendly. Acadia Center research indicates that every $1 invested in regional energy efficiency investments yields an average of $3.75 in total benefits. Leaving that kind of money on the table doesn’t make sense for New Hampshire consumers who have some of the highest energy bills in the nation.

This has been a difficult year for all, and Acadia Center understands that residential and businesses customers should not be overburdened with increasing costs. However, as result of the 2019 Granite State test, a cost-benefit calculation that ensures that any and all energy efficiency programs provide benefit to all of the state’s energy consumers, the PUC and state lawmakers can be assured that long-term energy efficiency programs are a sound investment in the state’s future. This Plan allows goals, programs, and budgets to be adjusted during the triennium as needed, while recognizing that the cost-effectiveness savings needed to drive energy efficiency improvements ensures that consumers realize the benefits of these programs. And with a vigorous economic recovery expected in 2021 and beyond, it is essential that the state have in place as strong and robust of an energy efficiency program in place as possible.

Will FERC’s Latest Order Open the Door for Distributed Resources?

It is time for the U.S. electric grid to start thinking small. The grid of the future will be built around distributed energy resources (DERs) such as rooftop solar, neighborhood battery storage, and advanced energy efficiency and smart appliances, capable of responding to fluctuations in electricity demand to optimize energy use and supply. DERs encompass a wide variety of technologies – they can be small-scale energy generators, smart appliances, renewable and non-renewable generating resources. In aggregation, DERs contribute to a more distributed, decentralized, and responsive grid. They also reduce demand for electricity from fossil fuel plants, avoiding the need for costly grid infrastructure like centralized power plants that spew greenhouse gases and air pollutants into the communities they are sited in. Thankfully, the grid is one step closer to this vision of a clean, distributed future thanks to the recent Federal Energy Regulatory Commission (FERC) Order 2222.

On September 17,  FERC, the federal body that oversees the regulation of the U.S. electric markets, will require regional electric regulatory bodies to come up with market rules to allow DERs to compete and be compensated for services provided in the wholesale electric markets. This will level the playing field for DERs, while providing owners of DERs, such as homeowners, with revenue for services delivered to the grid.

The U.S. grid is often called the most complicated machine in the world. Comprised of large fossil-fuel and nuclear power plants, renewable generators like wind, solar, and hydropower; poles, wires, sensors, and meters; and finally, end-use consumers, such as homes and businesses, the grid must balance supply and demand at every moment. Energy technologies have emerged over the last 20 years that allow consumers to generate, save, store, and use electricity on-site or send back to the grid. DERs , often called behind-the-meter resources, as they are sited behind the utility-issued electric meter at the distribution level[1], like rooftop solar systems, home battery storage, electric vehicles, and active demand response, can either reduce energy use during periods of high demand or sell energy back to the grid if the right price signals and market structures are present.

As the cost of these distributed technologies rapidly declined, consumers adopted DERs to reduce their carbon footprint, save energy and money, and improve reliability during power outages. In fact, the DER market is expected to play a vital role in the decarbonized and distributed grid of the future, with some estimates of as much as 380 gigawatts (GW), or almost one-third of installed U.S. generation capacity, of DERs over the next 5 years, with most of it at the residential level.

In New England, DERs have expanded rapidly and will continue growing. The regional grid operator, ISO-NE, noted that in 2019, DERs provided a full 20% of total system capacity. ISO-NE’s forecast anticipates continued rapid development and adoption of energy efficiency, demand response, rooftop solar, battery storage, and other DERs over the next decade, with an estimated 4,300 megawatts (MW) of additional behind-the-meter solar by 2029 (on top of 3,500 MW installed already), and up to 10% of energy demand met through energy efficiency efforts.

While DERs are an important and growing energy resource they are, on their own, often too small to effectively participate in wholesale markets due to high barriers to entry with specific participation parameters. Although DERs benefit the grid through reduced demand, reduced emissions, cleaner air, and enhanced reliability, they are not properly compensated for those services. Without clear market rules these DERs are unable to participate fully in the regional wholesale markets, meaning that vital revenue streams from the regional markets are not available to small-scale distributed resources. Under new market rules ordered by FERC, potentially millions of rooftop and community solar panels, batteries, energy efficiency investments, electric vehicles, and smart appliances can access revenue streams that previously excluded them.

Ultimately, FERC Order 2222 could be a game-changing piece of regulatory reform that opens the door to a cleaner, more reliable, more distributed and democratized electric grid. This a refreshing and needed piece of regulatory reform from FERC and in notable contrast to a number of recent rulings favoring large incumbent generators like natural gas and that continue to undermine state-level clean energy policy through heavy-handed and burdensome federal intervention into wholesale markets. Ultimately, FERC Order 2222 has the potential to spur new and exciting innovations in the clean energy sector, creating market opportunities for not-yet-invented technologies and solutions.

What does FERC Order 2222 Say and Do?

FERC began addressing market participation for DERs in late 2015. The Commission collected data, held technical conferences, and released a proposed rule in 2016. In a separate but related order, FERC required regional grid operators to develop rules that allow battery storage located at the distribution level to participate in wholesale markets. After several years of legal challenges to FERC’s authority, the storage order was upheld in July 2020, paving the way for this new supplemental order affecting other DERs. Together, these two reforms will open the wholesale markets to battery storage and aggregated DERs, allowing groups of smaller DERs to participate in wholesale markets as if they were a single resource controlled by the aggregator.

FERC Order 2222 provides clarity to regional grid operators as they develop participation rules that remove barriers for DER aggregations in capacity, energy, and ancillary service markets. FERC found that existing market rules are “unjust and unreasonable” barriers to participation of DERs, hindering competition and increasing rates by creating barriers to emerging technologies by unfairly favoring large incumbent generators, such as fossil-fuel plants. FERC notes in its order that by reforming market rules to allow DERs to compete fully in wholesale markets, regional grid operators will be able to “account for the impacts of these resources on installed capacity requirements and day-ahead energy demand, thereby reducing uncertainty in load forecasts and reducing the risk of over procurement of resources and the associated costs.” Specifically, FERC requires that each grid operator develop market rules that address DER aggregation in the following ways:

1. Allow DERs to participate directly in the wholesale markets and establish DER aggregators as a type of market participant;
2. Allow DER aggregation to register under a participation model that accommodates the physical and operational characteristics of the DER aggregation;
3. Establish a minimum size for DER aggregation no larger than 100 kilowatts (kW) (roughly equivalent to 12 home solar systems);
4. Address locational, distributional, information and data, and grid coordination requirements for DER aggregator participation; and,
5. Require market participation rules for DER aggregators located in large utility service territories while allowing smaller utilities (defined as distributing more than 4 million megawatt-hours (MWh) in the previous year, approximately 70% of the U.S. utility market) to opt-in to the DER market rules.

By requiring regional grid operators to develop market rules allowing DERs to participate in wholesale markets, FERC Order 2222 paves the way for increased DERs, and will create markets and new ways to finance distributed energy projects. These market opportunities will make DERs more financially viable, increasing adoption, and result in a stronger, cleaner, and more resilient grid.

Next Steps

FERC Order 2222 goes into effect after publication in the Federal Register. At that point, regional grid operators will have 270 days to submit proposed changes to their market rules to implement the order. However, it will likely take several years before all the rules and processes are in place and full market participation is possible due to the need to develop, design, and implement complex technical and market parameters for participation. Acadia Center holds a membership position in NEPOOL, the region’s stakeholder governance body. Acadia Center will coordinate with state, regional and national stakeholders to ensure the region has fair and transparent market participation rules that support continued development of DERs.

[1] The electric distribution system is typically defined as electric transmission at 69 kilovolts (kV) or less, whereas the transmission system operates at higher voltages and travels further distances.

By Deborah Donovan, Senior Policy Advocate and Massachusetts Director, and Stefan Koester, Policy Analyst

Hammering out Maine’s Climate Action Plan: Deep Dive into the BIH Working Group Recommendations

Maine’s Climate Action plan is being hammered out this year by the Maine Climate Council, convened by Gov. Janet Mills. The Climate Action Plan will be a roadmap to achieving Maine’s goals of reaching 45% greenhouse gas emissions reductions by 2030, and at least 80% by 2050. This blog takes you on a deep dive into the process of creating recommendations for the Action Plan, particularly for the Buildings, Infrastructure, and Housing Working Group. You can access more of the recommendations here.

In May, despite the coronavirus, the Acadia Center and its partners convened a (virtual) meeting of more than 400 people, including dozens of environmental, labor, and public health organizations, to learn about how the Climate Action Plan will be created. The webinar, titled “The Maine Climate Council: Everything You Need to Know” was hosted by over 30 entities dedicated to reducing carbon pollution and equitably transitioning Maine’s economy to clean, renewable energy. Acadia Center joined its partners to call for action that strengthens the economy, creates well-paying jobs, improves public health, and ensures equitable distribution of investments, benefits, and opportunities. The full webinar can be found at this link.

Speakers at the webinar demanded a Climate Action Plan with concrete legislative and regulatory actions to mitigate and adapt to climate change. Clear implementation timelines and targets are also essential. Acadia Center has been working individually and with its coalition partners to influence policy strategies being developed across seven working groups of the Maine Climate Council. These working groups have been created to tackle the topics of coastal and marine issues; community resilience planning, public health, and emergency management; electricity and utility innovation; natural and working lands; and transportation. The working group members include businesses, legislators, nonprofits and foundations, scientific and academic experts, state and local governments, and youth representatives, each of which provide a different perspective on the issues. In their decision-making process, working group members considered costs and benefits; impacts on low-income, senior, and rural residences; funding and financing mechanisms; and economic and workforce results. During the webinar, Jeff Marks of Acadia Center presented the results of the Buildings, Infrastructure, and Housing (BIH) Working Group.

Why is the buildings and infrastructure sector so important to Maine’s climate goals? In Maine, this sector comprises 39% of total greenhouse gas emissions, with the residential sector the second highest carbon-emitter overall at 19% of the state’s emissions (transportation is first at 54%). Maine also has some of the oldest building stock in the country (56% of Maine homes were built before 1980) and the highest reliance on fossil fuels for heating. Sixty percent of homes still heat with oil, and 19% with natural gas or propane.

The BIH Working Group moved forward strategies that lead to:

• Cleaner industrial processes;
• Clean heating and cooling systems;
• Enhanced resilience to extreme weather;
• Improved efficiency, comfort, and safety in existing buildings;
• Low global-warming-potential building materials;
• Net-zero, renewable-ready building codes;
• Increased use of Maine wood products in building materials; and
• Reduced energy costs

Acadia Center outlined six strategies to reduce emissions in buildings, infrastructure, and housing:

1. Improve the design and construction of new buildings through steadily and more stringent building codes, increased compliance and enforcement, and focus on both operational and embodied carbon.
2. Transition to cleaner heating and cooling, especially high-efficiency space and water heat pumps.
3. Enhance the efficiency and resiliency of existing building envelopes, including audits, deep retrofits, and weatherization.
4. Lead by example in publicly funded buildings, including affordable housing, government buildings, and schools.
5. Accelerate the decarbonization of industrial processes, including overcoming limited funding for industrial efficiency, combined heat and power, and microgrids.
6. Modernize and stabilize the electricity grid, including ways to meet new demand in parallel with beneficial electrification, decarbonization, electric vehicles, and authorizing state agencies to consider climate mandates in their regulatory processes and decisions.

The Working Groups submitted their recommendations to the Maine Climate Council in June 2020, with a final Climate Action Plan due in December 2020.

In addition, Acadia Center was part of an open letter calling on the Maine Climate Council to strategically prioritize specific recommendations – read the details here on our website.

Do you want to share your opinions with the Council? Fill out this survey on the Council’s website to share your thoughts!

New York State Moves to Tackle Grid Decarbonization

New York has some of the most aggressive electrical grid decarbonization goals of any state. In 2019, Governor Cuomo signed the Climate Leadership and Community Protection Act (CLCPA), a broad legislative mandate that requires the state to source 70% of its electricity from renewable resources by 2030 (70 by ’30 goal) and achieve 100% zero-emissions electricity by 2040. Meeting the 2030 goal requires a significant increase in renewable energy procurement from offshore wind, solar, and hydropower, as well as reforms to the regulatory structure of the state’s electricity markets. On June 18, 2020, the New York State Energy Research and Development Authority (NYSERDA) and the state’s Department of Public Service (DPS) published a report outlining how existing regulatory and procurement processes under the state’s clean energy standard (CES) can be used to meet the 2030 requirement and set the state on a path to meeting the 2040 goal, while proposing new policies and modifications to the CES to align the program with the CLCPA.

The New England states, much like New York, have ambitious climate change goals and strategies that require greater deployment of zero-carbon electricity sources. The table below outlines the economy-wide greenhouse gas reduction commitments in New England and New York. Since other sectors such as transportation and buildings will need to move to clean electricity, rather than burning fossil fuels electricity, it is crucial that the electric gird decarbonizes as soon as possible. The report notes that “decarbonization of the generation sector and electrification of other sectors – all while ensuring efficiency and cost-effectiveness – must be carried out simultaneously and vigorously.” Decreasing emissions from buildings and transportation through energy efficiency, electric vehicle (EV) adoption and home electrification will be critical, which will also require an increase in renewable electricity through growing offshore wind, solar, and hydroelectric resources. Many of the suggested market reforms laid out in the NYSERDA report are relevant to New England, especially as both areas plan for a dramatic increase in offshore wind and are concerned with the environmental justice issues of existing natural gas infrastructure. Meeting decarbonization goals will not be easy, but New York, as detailed in this report and mandated in the CLCPA, is a taking a wide-ranging and holistic approach to decarbonization from which other states and regions can learn.

Progress To-Date and Roadmap to a Cleaner Grid

NYSERDA lays out the progress that New York has made toward meeting its 2030 goal. The graph below illustrates that:

1. Even though New York expects increased electrification of home heating and cooling through air- and ground-source heat pumps, as well as increased demand for electricity due to EV adoption, overall electric demand is projected to decrease by 6% between 2020 and 2030 due to increased energy efficiency and behind-the-meter solar, such as residential rooftop solar panels.
2. Non-renewable generation will have to decrease from roughly 75% of total generation today to 30% by 2030 (orange wedge). Below, we estimate that non-renewable generation will retire in straight linear fashion, however, retirements are likely to be stepwise as large fossil plants are required to come offline before 2030.
3. Approximately 25% of New York power generation in 2018 came from renewable energy (dark blue wedge), a sizeable portion that counts toward the 2030 goal.
4. New York needs additional renewable energy procurement beyond existing contracted renewable resources (light-blue wedge) including the 1,826 megawatt (MW) Empire Wind and Sunrise Wind projects and the 6 gigawatts (GW) of community-scaled on-site solar through the state’s NY-Sun program, both expected to be operational by 2025. This leaves a gap of roughly 43,000 GWh, or 28% of projected 2030 load, of new renewable energy (green wedge) that the state must supply in order to meet its 2030 target, a substantial but achievable goal. This remaining renewable generation is split between the mandated 9 GW of offshore wind by 2035 as required by the CLCPA and new renewable generation that has not been built or contracted.

Existing Clean Energy Standard Challenges and Recommendations

In the report, NYSERDA details challenges that the state faces and presents a number of recommended changes to the state’s procurement processes for renewable resources to ensure that the state meets its 2030 goal.

Concluding Thoughts and Next Steps

In order to stave off the worst effects of climate change, the science indicates that we must decarbonize our electricity supply as quickly as possible. In fact, as we increasingly rely on the electric grid to power transportation and heating, it becomes even more important that those sectors electrify using renewable electricity. New York, like New England, has ambitious grid decarbonization goals, with this report illustrating that the transition to a clean energy future will require long-term planning, proactive state-wide policy, flexible renewable energy development timelines, and a focus on environmental equity and justice.

Opportunities to Take Action:

NYSERDA is currently taking comments on the report through August 18, 2020.

by Stefan Koester, Policy Analyst

E-Bikes: Another Path to Clean Mobility

Since 2015, the Massachusetts Zero-Emission Vehicle (ZEV) Commission has been working to expand access to non-polluting vehicles and chart a course towards a cleaner transportation future. At last Thursday’s ZEV Commission meeting, Acadia Center, Conservation Law Foundation and Sierra Club delivered recommendations to accelerate that transition to a clean transportation future (on behalf of 17 Massachusetts organizations) which included recommendations to increase access to another electric mobility option: e-bikes.

E-bikes (electric bicycles) are bicycles equipped with a battery, giving riders an electric assist as they pedal. The boost from an e-bike’s battery helps riders cover longer distances and climb hills more easily than they could on a standard bicycle. That makes cycling to work, school, transit, and other destinations a possibility for more people, including those who would otherwise be unable to make those trips due to physical limitations.

Research shows that increased use of e-bikes can significantly reduce vehicle miles traveled. In a recent survey of e-bike users conducted by the University of Tennessee and Portland State University, respondents most frequently cited replacing car trips as a reason for their purchase of an e-bike. One survey response said, “Before the e-bike I would normally only commute to work 2-3 days a week (because of the weight of my laptop, clothes, lunch, etc.). The extra weight, combined with the amount of elevation gain, would leave my legs too tired to commute more than that. However, I can now easily commute 5 days a week.”

That holds true for a new convert to e-bikes: Acadia Center’s Connecticut Director, Amy McLean-Salls (pictured below). She’s already ditching the car for trips to the grocery store, and once the Hartford office re-opens she can ride the e-bike 12 miles instead of driving to work. Amy saves on gas money and gets more exercise, and everyone else benefits from the avoided tailpipe pollution and one fewer car sitting in Hartford traffic.

However, our policies need to encourage widespread adoption of this mobility option. While e-bikes can take their riders farther than traditional bicycles, they also tend to cost more. That cost gap can be addressed, in part, through rebates, similar to the state and federal incentives currently in place to help address the cost gap between electric vehicles and traditional cars.

Cyclists, clean transportation advocates and other stakeholders are calling on states to deliver support for e-bikes. Last Monday, Acadia Center joined our partners at the Transport Hartford Academy at the Center for Latino Justice in calling for the expansion of Connecticut’s CHEAPR EV rebate program to include rebates for e-bikes. And at the Massachusetts ZEV Commission meeting last Thursday, Acadia Center called for a $300 rebate for e-bike purchases, and a $500 rebate for low-income consumers and those living in environmental justice communities. Those communities suffer from inequitable exposure to transportation pollution and have less access to transit; delivering improved transit service and more mobility options should be a top priority.

Though there are many significant benefits to e-bike usage, Massachusetts currently has outdated laws that were created before the technology that is now widely used in these devices. These laws make it difficult for consumers to maximize the benefits of e-bikes by limiting access to bike paths, requiring licenses, and preventing anyone under 16 from riding legally.

Our friends at MassBike are leading an effort to bring Massachusetts e-bike regulations up to date with other states’ more modern laws. S.2071 and H.3014, which are currently sitting in the Joint Committee on Transportation, would classify e-bikes by their maximum assisted speed and whether or not the motor provides assistance if the rider is not pedaling. Classifying e-bikes as bicycles instead of mopeds is much more consistent with the technology that they use and will allow Massachusetts residents to take advantage of this innovative transportation option at a time when creative mobility solutions are desperately needed to prevent an uptick in car usage.

As offices re-open and the Commonwealth’s residents start returning to work, Massachusetts should do whatever possible to help them get to work safely, sustainably, and in ways that help avoid a return to Boston’s worst-in-the-nation traffic congestion. E-bike rebates should be part of that plan, as should updating the Commonwealth’s outdated regulations that treat low-speed e-bikes the same as high-powered mopeds. With a first-in-the-nation, state-sponsored e-bike rebate program and the passage of H.3014/S.2071, more Massachusetts residents will have access to electrified mobility options.

What you can do:

• Submit comments to the MA ZEV Commission, letting the Baker Administration know that you support e-bike rebates and other policies to advance clean transportation.
• Contact legislators on the Joint Committee on Transportation (by July 1st!), letting them know that you support e-bike legislation (H.3014/S.2071) to align our regulations with other states.

by Rachel Zaff, Environmental Policy Intern, and Jordan Stutt, Carbon Programs Director

Shifting to An Online Work World

In an unprecedented time of change and uncertainty, the suspension of many functions of government and imposition of social distancing has resulted in a surprising amount of creative and effective interactions among stakeholders, government agencies, and coalitions. Moving to online, virtual meetings has presented opportunities to interact with new audiences and deepen relationships with stakeholders.

Acadia Center’s experience with online collaboration across its offices has prepared the organization well for this transition to virtual public hearings and stakeholder processes. The crisis has reinforced our commitment to advance effective, equitable reform solutions across the region and has prompted our staff to generate new ideas for innovative virtual engagement opportunities where physical barriers may have previously been limiting.

In Connecticut, just as the historic health and safety directives were put in place in March to cancel all in person events, Acadia Center and allies shifted a long-planned forum on the Transportation Climate Initiative (TCI) to an online webinar format. The result was excellent: the forum was attended by over 80 diverse participants, including business, community leaders, legislators, and administration officials. The event focused on how the TCI program structure could work, how to extend its benefits to all people in the state, and emphasized economic and employment benefits, exceeding its goal to move the discussion forward on implementing a sound transportation and climate policy for the state.

Official government work also shifted to online formats. In Rhode Island, Acadia Center RI Director Hank Webster participated in an “Energy 101” panel for members of the recessed General Assembly and spoke to Leadership Rhode Island’s first ever virtual “Government Day” about the legislative process and climate/energy issues. Hank also commented during the first-ever video conference meeting of the Executive Climate Change Coordinating Committee. An important state stakeholder process designed make recommendations to Governor Raimondo on ways to transform building heating in the state to cleaner resources also moved online, allowing stakeholders including Acadia Center the opportunity to provide verbal and written comments ahead of a final report. And in Maine, the Governor’s Climate Council process – an ambitious effort to engage numerous stakeholders to recommend an effective climate plan for the state –shifted rapidly online as the state phased in social distancing requirements, allowing the tight schedule for the process to remain in place. Acadia Center responded by working remotely with coalition partners on policy development, outreach, and communications strategies related to buildings, energy, forestry, and transportation.

In Massachusetts, Secretary of Energy and Environmental Affairs Katie Theoharides hosted an online briefing and coalition communications have continued without significant interruption. Acadia Center steered advocacy within coalitions such as the Alliance for Clean Energy Solutions (ACES), the Global Warming Solutions Project (GWSP), and the Massachusetts Offshore Wind Power Coalition. Acadia Center continued to lead input in shaping the Baker Administration’s approaches to offshore wind and state carbon targets. Acadia Center and a broad coalition have been focused on ways to strengthen the Global Warming Solutions Act, leading to passage of a strong Senate bill and a commitment from the Baker Administration in January of 2020 to a net-zero carbon target in 2050. Acadia Center will closely track and comment on the forecasts and roadmap development that continues to progress as stakeholder engagement uses remote formats.

The New England Power Pool (NEPOOL), the governance body engaged in overseeing the region’s electricity grid, maintained its regular schedule using virtual tools. As a member of NEPOOL, Acadia Center is engaged in the upcoming Transition to the Future Grid analysis being undertaken to address the barriers faced by clean energy resources in the current electricity grid design. Acadia Center’s Deborah Donovan coordinated with other clean energy advocates to ensure NEPOOL’s rejection of a flawed proposal to modify energy markets in ways that would harm consumers and further bias clean energy.

Acadia Center also raised its voice to address directly ways the crisis was affecting key programs. For example, all residential energy efficiency and weatherization work was ordered to be stopped early in March in Connecticut, causing a wide range of impacts including on the vendor community performing the efficiency installations. No resources were being offered to assist the contractors or workers but as chair of the Connecticut Energy Efficiency Board (CEEB), Acadia Center Connecticut Director Amy McLean was able to raise questions about ways to relieve the burden of the contractors and keep them from going under during the pandemic. As a result of action at the CEEB, the state issued a formal ruling on April 24, 2020 outlining compensation eligibility for energy efficiency vendors.

Implications for a Downward Trend in Emissions

Numerous news stories have documented how the pandemic and resulting economic crisis have reduced air pollution around the world , bringing emissions down globally by 17%. As Americans have been forced to shelter in place to stop the spread of COVID-19, the air around us has become noticeably cleaner and climate pollution has fallen. While no one would seek to lower emissions in this way, a recent article in the Boston Globe explored the extent of the pandemic-induced pollution reduction while highlighting opportunities to rebuild a cleaner, more equitable economy.

“[E]missions from cars, trucks, and airplanes have declined in metropolitan Boston by about 30 percent, while overall carbon emissions have fallen by an estimated 15 percent,” writes David Abel, the author of the article. That level of pollution reduction is unprecedented but offers a challenge to better envision and implement an economic recovery pathway that delivers a just transition to a sustainable future.

That’s why Acadia Center is pushing harder than ever for policies that will make that transition possible. One of the efforts discussed in the article is the Transportation & Climate Initiative (TCI). Through TCI, 11 states from Maine to Virginia are working to develop a regional program to reduce vehicle pollution and spur investment in a cleaner, modern, more equitable transportation future. In the Boston Globe, Acadia Center’s Jordan Stutt described it as “a public health program and an economic stimulus program wrapped in one.” The program would generate billions of dollars each year for investment in transportation infrastructure, helping the local workforce rebound while delivering better transportation options and cleaner air to communities across the region.

Acadia Center has long championed the point – supported by data and research — that well-designed efforts to reduce climate pollution provide many benefits for all citizens: improved public health, greater economic opportunity, safer, more efficient buildings, lower energy bills, and more accessible, less-polluting ways to get around. Those benefits are more important now than ever before, particularly in the communities that have been hit hardest by COVID-19. Those communities must be front of mind and at the head of the table as we look to build a resilient, sustainable economy. Acadia Center is committed to doing the research, providing the data and making the case for the large-scale reforms and investment in a cleaner future that will improve the quality of life, health and economies of this region.

The Maine Climate Council: What You Need to Know Webinar

May 27, 2020, 12:00 – 1:30 p.m.

Despite the public health crisis, the Maine Climate Council has continued its important work developing a climate action plan for Maine. The Climate Council’s six working groups have been meeting virtually over the last few months to develop their recommendations to reduce Maine’s greenhouse gas emissions at least 80% by 2050, a target set it Maine law.

Please join Acadia Center and our partners for a Zoom webinar to hear from Maine Climate Council working group members about strategies they are developing to help Maine meet its climate goals and how you can take action. In addition to Working Group updates on forests, power and utilities, transportation, Acadia Center’s Jeff Marks will be presenting on the strategies being considered by the Buildings, Infrastructure, and Housing Working Group. Register to attend here.

The Public Utilities Commission and Why it Must be Reformed

State Public Utility Commissions (PUCs) regulate the rates and services of public utilities that provide electricity, gas, sewage, or water. These governing bodies formed to provide oversight to utilities to whom they have granted monopoly markets. Generally, the mission of PUCs is to approximate the prices of a competitive market, which requires balancing the needs of consumers and the utility. Traditionally, PUCs are charged to keep rates low, ensure reliable supply, and allow utilities the opportunity to earn a profit on their business.

To make swift progress on climate goals, we must change the way PUCs respond to clean energy and climate efforts.

With a vast array of effective clean energy technologies existing today, regulatory changes can revolutionize how energy is delivered and consumed in the time of this climate crisis. Currently, PUCs operate in ways that fail to treat clean energy resources on a level playing field, often furthering the region’s dependence on fossil fuels. These regulatory bodies have the potential to advance a low-carbon future, but outdated mandates keep them from doing so.

For example, National Grid, Rhode Island’s only electric and gas utility, filed a stakeholder-supported plan in 2019 with the state’s PUC. The plan recommended using the state energy efficiency program to install heat pumps in oil and propane heated homes. The PUC denied that provision, ruling that the benefits to electric customers —including lower rates and climate and health benefits —did not outweigh the costs. The PUC reached this conclusion in part because it could not consider the benefits to oil and propane customers – including lower bills and improved indoor air quality. In general, PUCs throughout the Northeast are required to focus on rate impacts, rather than addressing a more complete assessment of ratepayer benefits, including meeting state climate goals and utilizing clean technologies to improve indoor air quality or provide other consumer benefits that overall lower bills. As a result, the additional consumer, health, economic and equity benefits that can be achieved through climate action are often overlooked in cost comparisons.

Acadia Center advocates for regulatory changes that benefit the climate and consumer.

Too often, clean alternatives —including clean heating— are harmed by the PUC mandates, slowing down the transition to a clean energy economy. As evident in the Rhode Island example, a view that considers only the short-term rate impacts misses the potential future costs of energy investments that lean heavily on fossil fuels. These costs will accrue to utilities and ratepayers in the form of more-expensive grid hardening expenses and storm recovery from increasingly common extreme weather, and to all of us in the form of costs of disaster response and recovery. PUC enabling statutes throughout the Northeast do not appropriately account for these continued impacts and are misaligned with the states’ push for dramatic emission reductions. These statutes are overdue for reform. If we were to update the enabling statutes to clarify the PUCs’ responsibility to regulate in alignment with state policy goals, we could require consideration of the full costs of energy investments in all decisions and mandate minimizing climate impacts. This would allow utility regulators to make decisions that support greenhouse gas reduction and consider climate change impacts, and that appropriately value societal health impacts, job creation, improved reliability, and other quantifiable costs and benefits. This screen could minimize long-term costs to ratepayers from climate and other impacts that now fall outside the scope of the PUCs’ prime responsibility in just keeping the cost of energy low. Implementation of this change would require updating cost-benefit tests to utilize a consistent set of total costs and benefits, including those borne or received by society, the environment, or consumers as described above. This can ensure that PUC decisions continue to benefit today’s customers, but not at the expense of future customers.

by Amy Boyd