Amendment to Transportation Bond Bill Could Support Modern Transportation Options and Carbon-Neutral Buildings

Governor Baker and many transportation advocates, including Acadia Center’s Jordan Stutt, went to Beacon Hill today to testify on the Governor’s proposed multi-year $18-billion transportation bond bill. The bill addresses a wide range of transportation funding needs—everything from financing for bridges to funds for bus shelters. One of the issues addressed by the bill is the Transportation & Climate Initiative (TCI), a cap-and-invest program under development that could generate hundreds of millions of dollars each year for clean transportation investment. Governor Baker’s bill would authorize up to 50% of TCI proceeds to support public transit. Acadia Center testified in support of TCI investment in public transit while identifying additional investments and guidelines that should be adopted from the TCI bill filed by Rep. Ehrlich and Senator Lesser.

In addition to TCI-funded investment in clean, equitable, modern transportation options, Acadia Center testified in support of Rep. Vitolo’s recently added amendment that would put the Commonwealth’s money where its mouth is and make new state buildings funded through the bond fossil-fuel free. Just today, Boston announced that Mayor Walsh intends to sign an executive order requiring that all new city-owned buildings will be carbon-neutral – a similar effort to cut carbon emissions in buildings and meet the emissions reductions targets the city and state have set for themselves.

Massachusetts has already committed to economy-wide reductions in greenhouse gas emissions by 80% from 1990 levels by 2050, and bills currently before the legislature[1] would push that to net-zero emissions by 2050, as recommended by the 2018 special report by the Intergovernmental Panel on Climate Change.[2] Either mandate means that, by 2050, all buildings in Massachusetts must run on clean electricity, with no on-site fossil fuel combustion.[3]

The proposed amendment would require the buildings funded by the Transportation Bond Bill to start achieving this standard, and eliminate on-site fossil fuel combustion, unless the change raises the costs significantly. The buildings constructed or renovated with funds authorized by the Transportation Bond Bill will be utilized for decades to come and will be part of the building stock in 2050 and beyond.[4]  That is why this amendment is so essential.  The Commonwealth must begin immediately to lead by example and use the least-cost technologies to reduce carbon emissions and make buildings safer – with no on-site fossil-fuel combustion.

This amendment will also help keep our money in the state, and create good, green jobs. Because the Northeast imports all its fossil fuels, the money used to heat our buildings flows out of local economies to other states and countries, and Massachusetts is beholden to price fluctuations out of its control.  Fossil fuel heating is also a leading contributor to climate change and poses health and safety dangers.[5] Using non-fossil fuel heating sources will reduce energy use, reduce energy costs, increase comfort, decrease health and safety risks, and, more importantly, foster long-term thinking, increase climate preparedness, and generate economic growth.

Author: Amy Boyd, Senior Attorney

[1] H.3983 (currently before House Ways and Means) and S.2005 (currently before Joint Committee on Telecommunications, Utilities and Energy) would strengthen the required reductions further to at least net-zero by 2050.

[2] https://www.ipcc.ch/2018/10/08/summary-for-policymakers-of-ipcc-special-report-on-global-warming-of-1-5c-approved-by-governments/

[3] As the Executive Office of Energy and Environmental Affairs stated in the 2015 Clean Energy and Climate Plan, in the years between 2020 and 2050, “accelerated renewable thermal installations are required to electrify the buildings sector’s heating and cooling loads and utilize Massachusetts’ clean electric supply.” at 16.

[4] The US Department of Energy estimates the median lifetime of large commercial buildings is 65 years. See http://web.archive.org/web/20130218065932/ http:/buildingsdatabook.eren.doe.gov/TableView.aspx?table=3.2.7

[5] For instance, last September’s gas explosion in Greater Lawrence is estimated to have cost $1.4 billion in loss and additional expense. https://www.bizjournals.com/boston/news/2019/02/21/columbia-gas-parent-estimates-1-4b-in-costs.html Despite the substantial upgrades and safety equipment installed during those repairs, human error has led to two evacuations due to gas line safety issues in the last week alone. See, e.g., https://www.wcvb.com/article/major-gas-leak-prompts-evacuations-in-lawrence/29260322 (September 27); https://boston.cbslocal.com/2019/10/01/lawrence-gas-leak-high-street-columbia-gas-tuesday-evacuations/ (Oct 1)

Rhode Island Legislature Punts on Climate: Smart Siting Legislation Languishes

Several state legislatures in the Northeast have gone big on climate in recent weeks.

New York passed a sweeping climate plan pledging to reach 100% carbon-free electricity by 2040 and net zero greenhouse gas emissions, across the whole economy, by 2050. Maine enacted legislation that doubles the amount of renewable electricity in its Renewable Portfolio Standard to 80% by 2030 and 100% by 2050. Connecticut authorized a massive boost to offshore wind—the construction of up to 2,000 megawatts.

Not Rhode Island. Legislators in Rhode Island ended their six-month session late last month without passing any climate legislation at all.

Several climate bills died in committee, including one that would have established an economy-wide price on carbon pollution and another that would make binding the greenhouse gas reduction targets of the Resilient Rhode Island Act. (Unlike in Massachusetts and Connecticut, Rhode Island’s emissions reduction goals are aspirational, not mandatory.)

The General Assembly also failed to act on a high-profile challenge whose resolution is important to ensuring that solar reaches its potential as a climate solution in Rhode Island. Here’s a look at how that issue played out.

Balancing solar and land stewardship

Both the House and Senate introduced legislation that would have addressed the urgent pressure many communities are facing over the siting of large-scale, ground-mounted solar projects. The bills were informed by the work of a group of stakeholders the state Office of Energy Resources and the Department of Environmental Management convened nearly two years ago to work through the complexities of the issue.

Acadia Center has added its clean energy expertise to the group, which includes renewable energy developers, municipal planners, clean energy advocates, conservation groups, and consumer advocates. The goal? To develop strategies that balanced the need to accelerate solar while also minimizing its environmental impact on forests and prime farmland.

Guided by 13 smart siting principles stakeholders developed through consensus, the committee put forth strategies that garnered widespread support from diverse quarters. The legislation, as introduced, would have:

• Closed a loophole that effectively allowed projects to bypass the current statutory 10 MW cap on individual remote net metering projects by combining multiple installations at one site. Co-locating projects on contiguous parcels would no longer be allowed;
• Applied a smaller size cap—of 4 MW—to solar projects in designated areas of environmental concern;
• Created a new incentive for siting solar projects in preferred areas like landfills, gravels pits, and brownfields by reimbursing energy developers for interconnection costs; and
• Established a timeline for municipalities to adopt individually tailored solar siting ordinances to help local officials review projects and provide developers with a more predictable process.

The House’s siting bill never came to a vote in committee. The Senate passed a watered-down version that did not sufficiently address siting incentives. While the Senate’s amended bill mandated enactment of municipal siting ordinances, other critical strategies including reasonable size limits in areas of environmental concern and incentives for siting in preferred areas were scrapped.

Without any of the improvements proposed in the solar siting legislation, the status quo will largely continue: Rhode Island is likely to see the construction of more large projects on cleared forestland.

In some communities, the legislature’s inaction could have the opposite effect: leading to municipal moratoria that put at least a temporary pause on any solar construction. That outcome not only hinders Rhode Island’s ability to meet its climate goals but also dents growth of the clean energy sector, which has been a bright spot in the economy.

Rhode Island continues to be a leader in energy efficiency, and is moving ahead with a full-size offshore wind farm to join the nation’s first, Block Island. Rhode Island has committed to develop, along with nine states and Washington, D.C., a regional policy proposal to cap and reduce greenhouse gas emissions from the most polluting sector: transportation. The Governor just signed an Executive Order for focused inter-agency work on the state’s heating sector, which must move off natural gas. All of this is welcome progress.

Still, the legislature will have to think—and act—bigger on climate, or risk Rhode Island being left behind. The climate crisis is here; there is no time to waste.

Author: Erika Niedowski, Rhode Island Director & Policy Advocate

Offshore Wind Makes Big Moves Across the Northeast Region

Two years ago, Acadia Center’s EnergyVision 2030 examined the energy mix needed to achieve the Northeast’s 2030 decarbonization goals and determined that at least 13% of the region’s electricity needs could be served by the development of 9.5 GW of offshore wind. In New England and New York, Acadia Center has advocated for ambitious state procurement goals and these states have recently made incredible progress. Over the last three years, Northeast states have raised their collective 2035 offshore wind goals from 1.6 GW to 14.6 GW, and they may exceed the EnergyVision 2030 target if several of the projects are completed before 2030. Together, the Northeast states’ ambitious targets for offshore wind development could generate enough electricity to satisfy a quarter of the region’s total electricity needs.

Although only one small offshore wind project is in operation today, states have begun to make real progress toward reaping the benefits of one of the world’s most bountiful clean energy resources – the abundant wind off of the Atlantic coast. States are finding that offshore wind is available, feasible, affordable, and it supports economic development, good jobs, and carbon reductions. The combined commitments from the Northeast states could produce as much as 60 TWhs of carbon-free electricity, reducing carbon emissions by about 29 million tons every year.

State comparison of current commitments, selection processes, completed procurements, and construction of offshore wind.

Connecticut

Since 2016, Acadia Center has been actively working with Connecticut to grow its commitment to offshore wind and, in 2018, Governor Malloy’s administration made its first two procurements totaling 300 MW. The first 200 MW project is predicted to support about 1400 jobs through both the addition of wind farm construction jobs and the jobs supported by increased spending in the local economy by those new workers. Following these two procurements, the state entered into a public-private partnership with the wind and marine services industries for a $93 million redevelopment of the New London state pier as a hub for regional offshore wind activities. With its long-standing maritime economy, New London has great potential to become one of the support centers for offshore wind build out in the region. In June 2019, Acadia Center and a coalition of clean energy advocates won a major victory when the state passed legislation requiring that the state issue solicitations for 2000 MW of offshore wind by 2030, or about 30% of the state’s electricity consumption. This commitment puts Connecticut at the front of the pack for northeastern states in terms of share of total electricity demand to be provided by offshore wind.

Massachusetts

In 2016, in response to efforts by Acadia Center and a coalition of clean energy advocates, Massachusetts passed legislation to secure its first 1600 MW of offshore wind by 2027. It has since selected an 800 MW project to be completed by 2021. The project is expected to reduce CO2 emissions by 1.6 million metric tons annually, equivalent to removing about 315,000 cars from the road, and deliver net benefits of $1.4 billion over the 20-year life of the contract. The contract demonstrated that the offshore wind industry can supply energy at costs competitive with fossil fuel generation over the long term. The developer also committed $15 million in investments to spur the offshore wind industry in Massachusetts. Governor Baker’s administration has issued a request for proposals for another 800 MW, with bids due in August 2019.

Acadia Center’s advocacy in 2018 helped secure passage of legislation authorizing an additional 1600 MW of offshore wind by 2035 pending a study to investigate the necessity, benefits, and cost of more offshore wind. In keeping with input from Acadia Center and other stakeholders, the May 2019 study supports increasing the state’s overall commitment to 3200 MW. These findings are bolstering the push for legislation to set the state’s overall offshore wind target at 6000 MW by 2035, which would be equivalent to nearly 50% of the electricity consumed by the state.

To support the construction of these large projects, the site of Massachusetts’ last coal plant will be converted to serve as a base providing support and logistics for the offshore wind industry, as well as transmission and battery support for turbines offshore.

New York

So far, New York leads the region in its total commitment to offshore wind capacity at 9000 MW, and it is making offshore wind a centerpiece of its plan to decarbonize the state’s electricity system. As a first step, the state issued a procurement in November 2018 of at least 800 MW. Leading up to its release, Acadia Center worked with allies to ensure that the procurement was structured to maximize consumer savings, support workforce development, and include environmental protections. The state is poised to announce its selection for a project up to 1200 MW.

New York’s offshore wind goal is a major building block of Governor Cuomo’s recently announced commitment to 100% emissions free electricity by 2040 and a net-zero carbon economy by 2050.

Rhode Island

Rhode Island led the region’s offshore wind efforts by hosting the first offshore wind project built in the United States: the 5-turbine, 30 MW Block Island Wind Farm, completed in late 2016. In May 2019 the state also approved a contract for 400 MW of offshore wind and is considering proposals for up to an additional 350 MW. The state is on track to reach the Governor Raimondo’s goal of 1000 MW sourced from clean, renewable energy by 2020.

Rhode Island has also been an early home to U.S. offshore wind industry headquarters for major companies, including Deepwater Wind (recently acquired by Ørsted) and GEV Wind Power. The presence of these new developers in the state demonstrate that a robust offshore wind industry can create not only clean power and cost savings, but good jobs and economic development opportunities.

Other Northeast States

Maine: Unlike its neighbors to the south, Maine’s coastal seabed drops off steeply right from shore, meaning that wind developers can’t use technology that attaches towers to the ocean floor in shallower depths. But that hasn’t stopped Maine from moving forward with offshore wind. Maine is looking to a much newer and experimental technology using floating platforms. Governor Mills recently signed a law recommitting Maine to a project consisting of two 6-MW turbines on floating platforms.

In another important step signaling Maine’s strong commitment to offshore wind (and other clean energy innovations), Governor Mills has created the Maine Offshore Wind Initiative and joined Massachusetts and New Hampshire to participate in the Gulf of Maine Intergovernmental Regional Task Force on Offshore Wind. As the costs of floating platform-based offshore wind come down, Maine’s opportunities to make larger commitments to offshore wind will continue to grow.

New Hampshire: Until recently, New Hampshire was on the sidelines in the offshore wind development race. But, in January 2019, Governor Sununu formally requested that federal regulators establish a state-federal offshore wind Task Force that will follow a multi-year process that 15 other states have already initiated. Without this process, New Hampshire would only be able to develop offshore wind projects within three miles of the coast — the point at which state waters end and federal waters begin. In April, regulators established a regional Gulf of Maine task force to coordinate activities in Maine, Massachusetts, and New Hampshire.

What does this mean for people in the Northeast?

These massive commitments by the Northeast states along with others along the eastern seaboard will allow for this new, burgeoning industry to develop and offer opportunities for states to roll out their offshore procurements and construction in a coordinated way. Based on performance shown to this point, costs will continue to decline as the industry grows. For example, turbines are getting larger, producing more electricity and resulting in lower and lower prices per megawatt-hour.

Each state making these commitments will vie for the economic development and employment benefits that the offshore wind industry buildout promises, breathing new life into the numerous deep-water ports up and down the coast. Many of the region’s port communities have struggled through the decline of the industries that formerly drove their economies, but they are now poised to reap the benefits offshore wind can bring.

The buildout of offshore wind resources will also contribute significantly to the urgent push to decarbonize the way we generate electricity and power our buildings, industries and transportation systems. The destructive and dangerous impacts of the changing climate are upon us, and they disproportionately affect coastal communities and fisheries through sea-level rise and warming waters. Replacing old, dirty fossil fueled generation with offshore wind is an important step toward an electric grid that will support the clean electrification of our buildings and transportation sector.

In addition to reducing carbon emissions, offshore wind will reduce other harmful emissions related to burning fossil fuels. These emissions damage people’s lungs and hearts and take a serious economic toll on affected communities. Reducing such emissions has significant human health benefits especially for those living in economically disadvantaged communities where fossil-fueled plants are concentrated.

In the Northeast, offshore wind is poised to meet the region’s needs as older generating plants are retiring because of economic pressures, environmental standards, and aging equipment. Grid operators, market participants, and advocates like Acadia Center are looking for ways to shift how the grid operates as more and more renewable energy resources like offshore wind begin to produce electricity. Replacing some of these older retiring plants with offshore wind will bring other benefits in the form of lower wholesale electricity prices – reflected in the significant economic benefits realized in the MA and RI contracts. In addition, because offshore wind may deliver energy during peak winter conditions when dirty gas and oil-powered plants are currently paid to run, these new facilities will further bring down the price – and pollutants – from electricity generation.

Challenges

As offshore wind grows, the region will also face a range of challenges. Economically, the industry has benefited from the federal Investment Tax Credit, which is due to expire at the end of 2019. If allowed to expire, projects that go under contract after the end of this year may face up to 12% higher costs. Further, the construction and operation of many thousands of wind turbines and the needed transmission cables must appropriately address impacts on whales and other endangered species, birds, and a fishing industry already under significant pressure as a result of warming waters and overfishing. Advocates and decisionmakers must engage with local communities to address concerns around siting the landfall cables and other local impacts.

On the economic side, states and stakeholders should consider coordinating procurements to achieve an orderly build out of projects, allowing the industry to ramp up the supply chain and train a work force. States should look closely at whether each project should be connected to the shore individually or whether a central transmission back bone makes more economic and environmental sense.

What’s next?

Offshore wind is on a track to succeed in the Northeast, given the surge of state interest. However, the future success of this resource depends on its implementation, which must be accomplished on an aggressive schedule in order to reap the economic and environmental benefits. The projects must also proceed in ways that set a good precedent for the U.S. industry. Project selection, siting, and transmission must all be considered with an eye toward meeting fast-approaching climate deadlines and ensuring that labor, environmental, and economic justice issues are central to planning. Acadia Center will continue to work closely with the states, advocates, and other stakeholders on these issues, bringing its independent analytic, advocacy, and coalition-building expertise to ensure the successful deployment and continued expansion of offshore wind in the region.

Additional Resources

Press Release: CT House of Representatives Passes Pivotal Bill to Build 2000 MW of New Offshore Wind by 2030

Blog: A Regional Affair: Offshore Wind in Massachusetts Clears Hurdle in Rhode Island

Report: EnergyVision 2030 Electric Generation Brief

Rhode Island Must Prioritize Solar Siting in 2019

Solar energy is growing in the Northeast, but the urgency of climate change means that states need to accelerate the transition to clean energy sources.

In Rhode Island, siting challenges that have arisen in the past few years show that the state can’t do this without a plan. In a landscape patchworked with forest, farmland, and open space, policies and incentives must prioritize solar projects in areas with compatible land uses.

On March 14, the House held a hearing for H5789, a solar siting bill that aims to address these challenges. The bill represents months of collaboration between conservation groups, municipal planners, renewable energy developers, farm interests, state agencies and others as part of the Renewable Energy Siting Stakeholder Committee. Acadia Center has worked alongside these groups to generate a range of strategies designed to drive projects to preferred areas, including previously developed and disturbed parcels.

These strategies include:

• Prohibiting the largest, most controversial projects by preventing projects from being built across neighboring parcels;
• Significantly limiting the size of solar projects in designated areas of environmental concern;
• Introducing an incentive through the Public Utilities Commission to reimburse solar projects in preferred areas for interconnection costs;
• Directing OER to incorporate smart siting policies in an implementation plan for reaching the state’s emissions reductions goals;
• Setting a deadline for municipalities to adopt individually tailored solar siting ordinances that will help local officials review projects and, if desired, establish more streamlined processes for preferred siting.

This bill is not the sole solution to the challenge of solar siting. Small-scale solar capacity in the state’s Renewable Energy Growth (REG) program has been nearly doubled to maximize residential and commercial rooftop arrays, which pose no siting conflicts. Further, just this week, OER and the Rhode Island Commerce Corporation opened a $1 million fund to support projects that propose solar on brownfields.

But make no mistake: legislators must act this session to avoid risking another year without significant protections for the state’s forests and habitats. The economics of siting currently favor large projects in flat, forested tracts, but they don’t have to remain that way.

To learn more, read Acadia Center’s full testimony on House Bill 5789.

Maine’s Biggest Utility Must Change to Make Way for Clean Energy

Maine is at a crossroads in its climate and energy future. For the state to move forward and embrace a consumer-friendly, low-polluting clean energy future, its biggest utility, Central Maine Power (CMP), must dramatically change the way it does business and do much more to support consumer and community access to solar, wind, building weatherization, and clean technologies like electric vehicles and heat pumps. Up to this point, CMP has frequently blocked these measures. It is time for CMP to change.

As a whole, Maine has struggled to make progress toward a clean energy future, falling behind its New England neighbors despite strong calls from Mainers and their communities for more clean solutions. Governor Mills understands the threats climate change poses to Maine’s economy and way of life. She has committed the state to the Paris Climate Accords among other steps. But for her attempts to gain ground, the state’s utility companies must also reform and stop putting roadblocks in the path to progress.

For instance, Maine prevents its communities from adopting advanced building energy codes. Maine bars community choice aggregation and has consistently blocked efforts to more fairly compensate solar customers for the power they create. CMP must align its investments and rates with consumer interests so that they have access to clean energy options like rooftop and community solar.

CMP’s request for a certificate from the Maine Public Utilities Commission (PUC) for a proposed power line to transmit hydroelectricity from Canada to New England has raised a host of issues directly tied to core Maine concerns: the urgent need to reduce climate pollution from energy generation; reforming the role of the state’s utilities, particularly Central Maine Power; and whether the intrusion of this project in the Maine forest is appropriate.

Acadia Center is involved in issues surrounding the project because of the importance of these issues to Maine’s energy, economic, and consumer future. In the PUC proceeding, Acadia Center has joined with other parties to recommend that if the PUC issue a certificate for the project, it should impose a set of commitments on CMP to support clean energy and consumer access to new technologies. These conditions would require CMP to:

• Provide measurable benefits to Maine ratepayers and affected communities.
• Support Maine’s efforts to expand its clean energy economy.
• Increase access for Maine residents to clean transportation and clean distributed energy resources such as solar.
• Make CMP’s planning and decision-making more transparent to expand opportunities for alternative investments in solar, storage, and efficiency.
• Support a study examining pathways to achieve regional decarbonization goals.

Outside of the issues before the PUC, a review of whether the land use and siting impacts of the project are tolerable is pending at the Department of Environmental Protection. Acadia Center looks to the efforts underway by organizations engaged in the Department of Environmental Protection permit review process to determine if the impacts to Maine’s forests and natural landscape are acceptable. Acadia Center does not believe this project should proceed unless there is satisfactory resolution of the land use issues, in addition to consumer benefits, and the need by the state’s largest utility to work in concert with clean energy and climate values.

In addition, the energy companies involved—CMP, Avangrid, and Hydro-Quebec—must change in their willingness to provide transparent information, to allow the public to determine that the regional climate benefits of the project are real and will bear out over time.

Conditioning the PUC certificate with added requirements on CMP is only the beginning of the changes in direction CMP must undertake. The company cannot cite the climate benefits of this proposal while also blocking clean energy options for Maine consumers and communities. In order to decide if the project is good for Maine, the Northeast, and the global climate, the public needs to know more.

Acadia Center’s statements on the line and the proposed settlement filed with the PUC are available here.

A Regional Affair: Offshore Wind in Massachusetts Clears Hurdle in Rhode Island

Rhode Island has given its regulatory approval for the first large-scale wind farm to be built in the United States. This approval is a significant step forward for the project.

Last year, Massachusetts selected a developer, Vineyard Wind, to build a wind farm for it in federal waters off the coast of Massachusetts and Rhode Island. Because Rhode Island fishermen operate in those waters, that state also had the opportunity to decide whether the project fits within its laws and interests. In its testimony on this question before Rhode Island’s Coastal Resources Management Council (CRMC), Acadia Center reiterated the importance of offshore wind for Rhode Island and the region’s transition to a healthy clean energy economy.

Acadia Center’s EnergyVision 2030 analysis forecasts that to meet greenhouse gas reductions of 45% by the year 2030, the Northeast must take aggressive action to shift our electricity to clean renewable sources, including approximately 6,400 MW of offshore wind. The 800 MW from Vineyard Wind’s project will be the first serious step in that direction.

The CRMC ruled in favor of this position and certified the project.

However, Acadia Center also drew attention to the need for developers like Vineyard Wind to make the process for these projects much more inclusive and collaborative, bringing in all affected communities and industries, like commercial fisheries, earlier.

In this case, the fisheries testified to projected losses because of the way the wind farm will be sited. In the end, Vineyard Wind offered the fisheries a compensation package. But if they had been actively engaged earlier, all parties may have seen better outcomes.

The CRMC encouraged a more collaborative process when Deepwater Wind, now Orsted, developed the Block Island Wind Farm project in Rhode Island waters. This framework could be used going forward for additional projects in the near term. In the meantime, Acadia Center will work with people in government, business, and local communities to develop policies that support offshore wind off the coast of Rhode Island, with special attention to embedding greater inclusion in future projects.

Read Acadia Center’s testimony before the CRMC here.

Charging Ahead with Electric Buses in Rhode Island

Rhode Island and its Northeast neighbors have achieved great reductions in greenhouse gas emissions from power plants since joining the Regional Greenhouse Gas Initiative (RGGI) in 2009. Unfortunately, emissions from transportation sources are not covered by RGGI and still comprise about 40% of all greenhouse gas emissions in the state. Rhode Island needs to act urgently to reduce emissions from passenger, commercial, and public transportation fleets.

Rhode Island has taken an exciting stride towards cleaner public transportation by leasing three 100% electric buses, slated to enter service in early 2019. The Rhode Island Public Transit Authority (RIPTA) showcased the three 40’ vehicles at an October 22nd test drive featuring Governor Gina Raimondo, the state’s congressional delegation, and a contingent of state and local officials. Unlike Providence’s electric trolley-buses from the 1930s to 1950s, which were powered by fixed overhead wires, these battery-powered buses will charge overnight at RIPTA’s bus depot and can be flexibly used on a variety of routes.

RIPTA is using funds from Rhode Island’s $14.4 million share of a massive settlement between the federal government and Volkswagen after the automaker was caught circumventing emissions rules. The state has committed nearly $11 million to purchase 16 to 20 additional all-electric buses in 2021. Each electric bus that replaces an older, high polluting diesel bus could reduce carbon dioxide (CO2) tailpipe emissions by nearly 230,000 pounds annually, according to bus manufacturer Proterra.

In addition to reducing CO2 emissions, each diesel-to-electric bus replacement would also avoid over 100 pounds of nitrogen oxide (NOx) tailpipe emissions, which can cause or worsen respiratory and heart diseases in local communities. RIPTA will prioritize deploying electric buses on routes that serve low-income, environmental justice communities in neighborhoods that disproportionately bear the negative health impacts associated with fossil fuel combustion. This approach to prioritizing health benefits in overburdened communities should serve as a model for future clean transportation investments in Rhode Island and the region.

While the upfront cost of electric buses is higher than existing diesel, diesel-electric hybrid, or compressed natural gas (CNG) equipment, RIPTA expects to achieve significant life cycle savings primarily through lower fueling and maintenance costs—electric vehicles have fewer drivetrain components and feature regenerative braking, which can greatly reduce the overall frequency and cost of parts replacement. Still, as transit agencies across the country seek to incorporate cleaner vehicles, the upfront premium on electric bus purchases will likely remain a significant barrier.

One way to generate a dedicated revenue stream for clean transportation investments is through a price on carbon emissions from the transportation sector. A group of dedicated states, including Rhode Island, has been exploring policy solutions through the Transportation & Climate Initiative. Acadia Center released a policy analysis in September detailing how enacting a $15 per metric ton price on carbon emissions from the transportation sector could help Rhode Island generate over $600 million in revenues between 2019 and 2030 for a variety of clean transportation investments. This could include vehicle electrification, improved commuter rail offerings, cleaner port operations, and expanded pedestrian and bicycle paths to connect more people to employment, recreation, and basic services in their communities.

Acadia Center will continue to advocate for programs that address transportation-related emissions, helping states pursue and expand new opportunities for investment in clean transportation programs. Click here to read more about Rhode Island’s clean transportation opportunities.

As solar grows in Rhode Island, so does the need for smart siting policies

One of Rhode Island’s newest renewable energy installations is being celebrated as a model of solar siting, repurposing contaminated land that is unlikely to be developed. The solar array’s 6,700 panels spread across 12 acres in North Providence that comprise an old landfill.

The rapid expansion of renewable energy projects in Rhode Island – and across the region – is bringing new and pressing land-use challenges. Because of the urgent threat posed by climate change, it is important to accelerate the pace at which clean energy resources replace polluting fossil fuels. At the same time, we must protect Rhode Island’s diverse ecosystems.

With collaborative work on smart siting policies – and solar projects like the one in North Providence – Rhode Island is demonstrating a commitment to doing both: creating a low-carbon energy system and serving as responsible stewards of our landscapes and habitats.

Solar’s role in the clean energy future

The deep greenhouse gas emissions reductions demanded by the rapidly changing climate will require an energy system that looks a lot different than today’s. Our vehicles and home heating systems will need to transition from gasoline, propane, and natural gas to electricity, which has the flexibility to run off the sun, wind, and other clean sources. That means our electricity supply must move away from fossil fuels and become significantly cleaner itself.

Solar energy will play a key part in the clean energy future. According to the State Energy Plan, Rhode Island could develop over 1,800 MW of solar by 2035, compared to the current 105 MW. Determining how much solar is needed to meet the state’s climate goals under the Resilient Rhode Island Act is only one part of the equation. We must work together to determine how best to site it, including on what types of land and at what scale, to minimize land-use conflicts in local communities.

First, Rhode Island must harness the potential of rooftop solar, which gives residents and businesses more control over their energy use and production, lowers utility bills, and helps avoid the siting of projects in sensitive environmental areas. Acadia Center’s EnergyVision 2030 Rhode Island Progress Report finds that Rhode Island is lagging regional leaders on locally-sited solar resources. While rooftop solar is not the only answer, we can do more to support it.

Larger-scale solar projects are also needed. Some municipalities in Rhode Island, especially rural ones where land is more readily available, are being inundated with solar proposals – some of which have resulted in widespread tree-clearing. In response, a number of communities are halting renewables development, at least temporarily, putting at risk continued progress towards a climate-safe Rhode Island. It is imperative that we find a new path forward that balances the need to deploy renewables with forest and habitat protection.

Consensus-based solutions

A stakeholder group of diverse interests began convening in August 2017 to address the siting issue. The committee, which includes Acadia Center, developed 13 consensus principles that reflect the priorities of conservationists, clean energy advocates, farm interests, municipalities, and renewable energy developers. State officials have also been holding public workshops all across Rhode Island to gather input from communities and residents. There has been widespread agreement on the need to influence the economics of siting to encourage cost-effective development of solar projects on already developed land like brownfields, commercial and industrial zoned land, and other environmentally disturbed sites.

There are no quick solutions, but progress is being made. Rhode Island is undertaking several initiatives designed to guide solar to preferred areas. An infusion of $1 million into the Renewable Energy Fund will support brownfields projects. A proposal before the Public Utilities Commission includes a 70 percent increase in small rooftop solar in the 2019 Renewable Energy Growth Program and a new category to promote solar carports. Between six and twelve solar canopies are expected to be developed as a result.

Much work remains. The stakeholder group is discussing additional strategies for the 2019 legislative session to encourage solar siting in least-conflict locations. The work being done in Rhode Island could serve as a model for the region as states grapple with a productive path forward that both reduces harmful emissions and protects our natural resources.

New York Must Expand Solar: How Does Its New Net Metering Process Fit in?

Since 1997, New York has allowed customers with certain types of distributed generation systems, including rooftop solar (sometimes referred to as “mass market” solar) and community solar, to participate in net metering. This simple billing method allows a customer’s consumption and generation to be “netted” at the end of every month. If a customer has consumed more energy from the grid than she has generated from her solar panels, she will pay for the net consumption. However, if a customer has generated more power than she has consumed, then that net generation will be rolled over into the next month’s bill and credited toward future consumption at the retail rate—i.e. the same amount that the customer is charged for using a kWh of electricity.

This form of compensation (sometimes referred to as “retail rate net metering”) has supported solar expansion with a simple, predictable formula. However, because this form of net metering relies only on retail rates, which tend not to vary by time or location, solar systems are not always installed in areas where they are most needed or combined with other technology like energy storage to provide additional value to the grid. Some areas of the grid need more congestion relief, some hours of the day have higher electricity demand, and some distributed energy sources are cleaner than others.

New York has decided to move away from retail rate net metering and toward a smarter and fairer pricing scheme that reflects clean energy resources’ value to the grid. The state is now grappling with creating such a system while at the same time ensuring that this transition is gradual and understandable to consumers.

What’s Next?

In 2015, the Public Service Commission (PSC) initiated the Reforming the Energy Vision (REV) process, which seeks to create a new utility business model that incorporates more distributed energy while ensuring that energy remains affordable, resilient, and reliable. Recognizing the need to develop a more accurate way of valuing these clean energy resources, in March 2017 the PSC issued an order transitioning from retail rate net metering to a net metering program referred to as Value of Distributed Energy Resources (VDER) that attempts to more accurately reflect the costs and benefits of these clean resources on the grid.

The first phase of the VDER process applies to larger solar installations including remote net metering (where the electricity produced from a solar installation at one location is credited toward electricity consumption at a different location) and community solar but not to residential rooftop solar. Phase One compensates these projects using a “Value Stack,” which identifies certain components that together represent the value of that clean energy to the grid. The values in the Phase One Value Stack include certain costs that the utility no longer has to incur, which are referred to as “avoided costs” and which are assigned a monetary value. These include:

• The cost of the energy that the utility would otherwise have to generate or purchase (referred to as “wholesale” energy);
• The amount of energy-producing resources that the utility would have to procure to meet demand (referred to as “capacity”); and
• The cost of delivering that energy to customers, as well as the higher costs of delivering the energy in certain congested areas of the grid.

In addition to these avoided costs, the Value Stack also includes a credit for the environmental attributes of certain types of clean energy, primarily the fact that they do not emit greenhouse gases.

A second phase of this transition (referred to as Phase Two Value Stack) is in process to further refine these values. After January 1, 2020, VDER will also apply to new residential rooftop projects under a new compensation method to replace traditional retail rate net metering.

New York’s Solar Gap

Because retail rate is a more straightforward, if blunt, method of net metering, developers may initially struggle to make an easy economic case for solar while transitioning to a value-based compensation structure. However, if done well, this new structure will allow solar to expand more efficiently in New York, with better outcomes for consumers and the climate. Continued expansion of solar is important, because in contrast to other Northeast states such as Massachusetts and Vermont, New York has relatively modest amounts of installed distributed solar given its population (Figure 1). It must accelerate to meet state and regional climate goals.

New York has set a goal of procuring 50% of its energy needs from renewable energy resources by 2030.  As shown in Acadia Center’s EnergyVision 2030, with further strategic action New York can reduce greenhouse gas emissions 45% by 2030, a target that will put the state on a path to meet minimum EnergyVision 2030 recommends that, in addition to sharply increasing grid scale wind and solar generation, New York needs to add 13.7 GW of distributed solar, more than 10 times the amount that has been installed to date.

Figure 1 – Per Capita Installed PV

Paths Forward

New York’s need for more distributed solar can be addressed from multiple angles: first, by making the transition to value-based compensation as gradual and understandable as possible; and second, by supporting solar expansion through complementary programs. Acadia Center has been an active participant in the VDER proceeding since its inception. Recently, staff from the Department of Public Service approved several changes to the Phase One Value Stack to expand the types of eligible renewable energy resources and make it easier for customers to participate and receive compensation. These changes include:

• Removing certain size limits from eligible clean energy resources
• Expanding the VDER compensation structure to storage and new forms of renewable energy such as tidal energy
• Removing location-based restrictions within utility territories

Acadia Center supported these changes and submitted comments with these and other recommendations for improving various elements of the value stack to make it easier for customers to receive compensation and to ensure these resources are appropriately compensated for the value they add to the system.

Acadia Center also supports solar expansion in New York through statewide initiative and grassroots campaigns. One such state initiative is NY Sun, a program administered by NYSERDA that seeks to add 3 GW of installed solar capacity in the state by 2023. The program works by establishing cash incentives for developers that decline over time as solar installation increases in certain regions of the state. Recently, NYSERDA made improvements to the program by expanding the incentives, supporting larger projects, and encouraging solar installations in a greater variety of locations. In addition, Acadia Center is a founding member of Million Solar Strong, which seeks to double this statewide goal to 6 GW of solar capacity by installing solar on 1 million homes by 2023, including 100,000 low-income households. The campaign has been meeting with public officials and building support around the state.

New York must make the leap to close its solar gap, and both regulatory solutions and grassroots support will be necessary. Together, these efforts have the capacity to make lasting change for this key technology.

Regional Interest in Battery Storage Heats Up

With the sweltering days of summer behind us and New Englanders reluctantly turning their minds to winter storm season, it is worth asking how we can keep our electric grid running affordably and efficiently during both heat waves and cold snaps. Behind-the-meter energy storage is one solution that is showing increasing promise.  

In-Home Energy Storage

Behind-the meter energy storage refers to when customers store electric power purchased from the grid or power generated themselves (such as from rooftop solar panels) in batteries installed in their homes. The market for behind-the-meter storage is growing rapidly due to decreasing costs and growing awareness. In addition to providing backup power to homeowners during outages, like a traditional generator, this storage can provide backup power for the grid itself.

Battery storage can also be combined with innovative electric rates. For example, time-varying rates could encourage customers to purchase power from the grid during periods of low demand and use energy stored in their battery during periods of high demand. This would lower storage users’ bills directly while reducing the use of expensive and polluting backup plants typically needed during times when temperatures surge or plunge. In turn, avoiding these expensive resources will cut energy prices for all customers.

Policies and Pilots

Many states are currently experimenting with adding battery storage to the grid to help reduce prices and integrate renewable energy sources that produce power intermittently. This wide range of pilots is providing valuable lessons for putting storage to good use. For example, Vermont’s Green Mountain Power (GMP) claimed it saved customers $500K during a heat wave this summer through its pilot of in-home batteries. During the hours of highest demand, the program allows GMP to withdraw energy stored in customers’ batteries instead of paying very high prices on the wholesale market. This year, GMP also expanded its pilot program to allow customers to purchase third-party storage devices. In New Hampshire, Liberty Utilities is proposing a similar pilot that would combine storage with time-varying rates to provide customers with incentives to use electricity during times of lower demand.

To support a future electric grid where consumers are empowered to produce, store, and use their own electricity, state policies should enable residents to own and operate batteries to the largest extent possible. Utility ownership of residential batteries can stifle the development of competitive markets and reduce customers’ flexibility in deciding how and when to deploy their power. Acadia Center will continue to advocate for programs that prioritize a customer-centered model, helping states pursue and expand programs like those detailed above.