The state races that may reshape U.S. energy

Control of Congress is up for grabs in the midterm elections — but for climate policy, state races may be the ones to watch.

That’s because much of the money in the new climate law will be distributed through the states. State leaders can apply for the Inflation Reduction Act’s numerous grant programs, for example, including ones that fund new large transmission lines and energy-efficient buildings.

With gubernatorial races on the ballot in 36 states, the scope and pace of the country’s energy transition may partly depend on who takes office.

“There’s a lot of decisions that state agencies need to make about what policies they’re going to prioritize and how to distribute the money,” said Amy Boyd, vice president of climate and clean energy policy at Acadia Center, an environmental group in New England.

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Read the full article in Politico here.

As offshore wind plans grow, so does the need for transmission

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Melissa Birchard, director of Clean Energy & Grid Reform at the Acadia Center, says that less onshore work also means less impact on people and communities.

“Will it still have impacts? Absolutely,” she says. “And I can imagine that there might be environmental justice communities or indigenous communities that we will need to listen to as the process moves forward. But by reducing the on-land impacts, we reduce impacts on those communities as well.”

And unlike onshore transmission development, which needs approval from many regulatory bodies and individual landowners, the only “land owner,” so to speak, in the offshore wind areas is the federal government.

An ocean grid could also reduce how much cable needs to be buried beneath the ocean floor. In the current project-by-project approach, most wind developers are planning to use cables that can each carry about 400 megawatts of electricity — an 800 megawatt wind project requires two cables, for instance.

Read the full article in WBUR News here.

Winter (Energy Price Spike) is Coming

You  may have seen the headlines recently warning of massive electricity price spikes this winter, with National Grid announcing a 64% increase in Massachusetts. What you may have missed is the anticipated jump in residential natural gas heating costs as well, an expected 22% hike. Ratepayers in other utility jurisdictions will face similar price increases.  Two questions probably jump to mind: 1) why is this happening and 2) what can I do about it? 

Why is this happening? 

Why prices are spiking so swiftly is a complex question, but the answer to each component comes back to two words: Natural Gas. New England is heavily reliant upon natural gas for both electricity and home heating. About two-thirds of Massachusetts’ in-state generation is natural gas and more than half of homes are heated with the fuel. Over the years, the region has “cleaned up” the grid by replacing generation fed by other fossil fuels like coal and oil with even more natural gas. Given the leakage rates in the natural gas system, it’s debatable how much this has lowered GHG emissions, but the fuel has, at times, been relatively inexpensive. This is no longer the case.

Unfortunately, single-mindedly pursuing natural gas has led to an overdependence on the fuel source. As Acadia Center has previously highlighted, this has left the region vulnerable to price spikes when there are shifts in the commodity markets, which are international and therefore not subject to state regulation or controls. This is exactly what is occurring now. Natural gas prices have risen over the past few years thanks to the global pandemic and climate change disrupting production and causing unexpected shifts in demand. Those issues have continued, but the Russian war against Ukraine has greatly exacerbated the problem. Russia is the world’s largest exporter of natural gas, causing upheaval in the natural gas markets. As a result of Russia’s aggression and global instability, international commodity prices are spiking. This combination of factors has led to massive hikes in prices for both electricity and heating in New England.

Overreliance on a single fuel source, specifically a fossil fuel commodity, is never a wise decision. New England needs to double down on expanding investment into many locally based renewable electricity options, buoyed by a flexible grid and flexible demand to provide ratepayers with safe, reliable, and affordable energy.

What can you do about it? 

Given that the underlying problem is structural, there are no easy or instant solutions to address it. But that does not mean that consumers are helpless.  New England residents need to contact their legislators, executive branch, and local officials to advocate for long-term solutions, like more investment in demand response, weatherization, other energy efficiency options, and a diversified and decarbonized grid powered by renewable energy. Acadia Center is also advocating for these changes with ISO-NE, the region’s power operator, and state decision-makers.

In the meantime, there are a number of short-term options for consumers heading into this winter that can help blunt the current or upcoming pain in your pocket. Renters should speak with their landlords about these options as well, as some may require authorization from a landlord.

• Shop Around: Cities and towns often run community choice aggregation programs. These programs allow local governments to procure power for constituents, often at lower costs to consumers. Boston, for example, runs a community choice program that provides power to residents at rates that are lower than Eversource’s current rates, and much less than the expected winter rates. It is important to distinguish these from Competitive Electric Supply programs, which are run by private entities. These programs will often actually lead to higher rates for consumers, according to an investigation by the Massachusetts Attorney General, and are not recommended by Acadia Center. If you have questions about community choice aggregation programs, reach out to your local officials or search for state.
• Energy Efficiency Programs: Your state’s energy efficiency programs will often offer low cost or free upgrades for your home such as weatherization, which can save you money from day one. Contact them as soon as possible because there may be a long waitlist! You can find more information for MA, RI, CT, and ME.
• Community Shared Solar Programs: Community shared solar programs allow residents to take advantage of solar power without having solar panels on their own roof. They allow consumers to purchase power from solar farms that are located away from their residence or business. Search for community shared solar programs in your area for more resources, or your state may be able to offer direction.
• Fuel Assistance Programs: The Low Income Home Energy Assistance Program (LIHEAP) is a federally funding program administered by states that provides assistance to low-income households seeking help with their energy bills. Your state may have additional resources as well. You can find more information for MA, RI, CT, and ME.
• Legislative Rate Relief: In addition to contacting your legislators to push for long term solutions, residents should reach out to their legislators to ask for short-term economic relief spending packages to help all residents.
• Utility Payment Plans: Utilities often will work with customers to offer payment plans to help residents struggling to pay their bills. It is important to note that this relief is only temporary, and you will still ultimately owe the full amount of the bill. Some states, like Massachusetts also offer protection from utility shutoffs during the winter. Your utility may have additional programs to help. For example, National Grid has launched this website for Massachusetts residents.
• Local Charities and Programs: Charities near your municipality may offer programs that can provide assistance on your energy bills. Contract your local officials to see if they are aware of these resources.

For more information: 

Kyle Murray
Senior Advocate and Massachusetts Program Director
kmurray@acadiacenter.org
Phone: 617-742-0054 x106 

Rhode Island starts to wrestle with what its net-zero goal means for natural gas

Rhode Island utility regulators are beginning to consider what the state’s mandate to zero out greenhouse gas emissions by 2050 means for its natural gas system.

The state Public Utilities Commission, or PUC, has opened a docket to investigate the future of the gas distribution business, a response to the passage last year of the Act on Climate.

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Hank Webster, Rhode Island director for the Acadia Center, a clean energy advocacy organization, said it’s crucial for the state to start this discussion now.

“The gas distribution system is one of the major sources of greenhouse gasses,” he said. “Every time a new gas connection is made, adding to ratepayer costs, it locks in long-term fossil fuel use.”

Read the full article at Energy News Network here. 

National Grid customers could see 64% increase in electric bills

BOSTON (WHDH) – National Grid customers could be in for quite the shock when they open their utility bills this winter.

The company has announced its winter rates, which go into effect on Nov. 1, stating that residential customers that use electricity can expect a price increase of 64%.

That means if you paid the typical $179 a month last winter, be ready for a monthly bill of at least $293. And it is not just an electric shock, either: customers who use gas will also feel a 22-24% price hike.

“At National Grid, this is the highest we’ve experienced,” said National Grid Chief Customer Officer Helen Burt. “Our customers pay what we pay. We’ve kept our electric distribution and transportation piece of the bill flat, year-over-year, and so this is entirely due to the cost of energy in the marketplace now.

Eversource is also predicting its gas customers will see their bills rise anywhere from 25% to 38%.

The massive price increases are reportedly due to natural gas production dropping during the COVID-19 pandemic, as well as the war in Ukraine, both straining production.

“Really, (customers) need to reach out to legislators to push for A, more renewables, more clean energy, and B, in the very short term, bill relief,” said Senior Policy Advocate Kyle Murray of the Acadia Center.

Read the full article here.

Trouble brewing in the power grid as officials warn of possible electricity shortages in N.E. this winter

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“Investing in more fossil fuel infrastructure is not going to solve the problem,” said Melissa Birchard, the director of clean energy and grid transition for the Acadia Center, a clean energy advocacy group. “It just continues our cycle of not investing in clean resources, and can exacerbate climate change.”

 

Read the full article in The Boston Globe here. 

Local researchers are aiming to create the perfect battery. The stakes couldn’t be higher.

Researchers and companies around the world are racing to solve the problem of storing clean energy when the sun isn’t shining on solar farms or the wind isn’t turning turbines. Of course, good batteries are already in common use in electric vehicles and Tesla Power walls, but those batteries rely primarily on lithium, cobalt, manganese, nickel, and other rare materials. They’re expensive, flammable, and their materials available in limited supplies and from just a few locations, including in China, Congo, and some of the deepest parts of the ocean.

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Environmental advocates in Massachusetts said they’re hopeful that technological breakthroughs would accelerate the adoption of large battery storage systems, especially as thousands of megawatts of new offshore wind are built in the region’s waters.

Kyle Murray, a senior policy advocate at the Massachusetts Acadia Center, called the region’s current rate of adoption “woefully slow.”

“We need to speed up the process so we can meet our state decarbonization goals and tackle the climate emergency,” he said. “We currently have batteries that can already do some marvelous things for society, and we need to be deploying more of them. That needs to be paired with developing and deploying new, amazing technologies.”

Read the full article in The Boston Globe here. 

Park City Wind Asks Connecticut to Adjust Energy Bid ‘to Reflect Current Economic Realities’

Avangrid Senior Vice President for Offshore Projects, Sy Oytan, said that the company will ask Connecticut for a “modest adjustment” to the state’s contract to buy power from the company’s planned 804 megawatt Park City Wind project south of Martha’s Vineyard, to “reflect the current economic realities.”

In a call with investors on Thursday, Oytan said the company would be delaying by a year both its Park City project and the 1,200 MW Commonwealth Wind project, and would ask both Connecticut and Massachusetts to adjust contracts to buy power from those projects.

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Melissa Birchard, director of clean energy for the nonprofit renewable advocate Acadia Center, said that the “short delay” of the two projects is understandable given the global challenges in energy.

Birchard said it’s good news that the delay still keeps the projects in line to be completed within the timeframes laid out in their contracts with the states. She said the push for offshore wind needs to continue on multiple fronts, to make sure that progress is still being made even if individual projects are delayed.

“We need to do everything we can to bring offshore wind to customers as soon as possible, along with other renewables,” Birchard said. “The spiking costs of fossil fuels are hurting families and businesses and the impacts of climate change are getting worse every year.”

Read the full article in The CT Examiner here.

Will the Inflation Reduction Act Meet Environmental Justice Goals?

On August 16, 2022, President Biden signed the Inflation Reduction Act (IRA) into law. This act makes provisions for healthcare, job opportunities, and climate and energy security. The law contains clean energy infrastructure for transportation, housing, solar, and wind facilities, prioritizing low-income and environmental justice communities. Through the IRA, around $60 billion will be allocated toward environmental justice communities and low-income communities with investments made towards infrastructure and improved funding. 

The Biden administration has been forward in its response to meeting demands of climate and clean energy transition. Early on, the administration demonstrated its commitment to mitigating climate impacts and consideration to environmental justice by issuing Executive Order 14008 titled Tackling the Climate Crisis at Home and Abroad. While that order quickly set the pace in putting climate and environmental justice discourse forefront, the recent Inflation Reduction Act builds on previous efforts including climate bills, Build Back Better Act (BBBA) and Bipartisan Infrastructure Law (Infrastructure Investment and Jobs Act) (IIJA), placing the nation at an advantageous position to reduce greenhouse gas emissions and reach climate targets in the near decade.  

The IRA provides an opportunity to establish clean energy infrastructure in low-income and environmental justice communities. Such infrastructure can provide energy credit for solar and wind facilities situated in the communities, thus ensuring increased clean energy deployment and economic benefit to those overburdened and disadvantaged communities. The dividends for environmental and climate justice were expanded to include grants and financial incentives provided through the Environmental Protection Agency (EPA), the Department of Energy (DOE), Department of Transport (DOT), Department of Housing and Urban Development, and a few other federal agencies. This will provide federal intervention that reaches environmental justice communities, low-income communities, and tribal communities to reduce pollution and environmental injustice across the country.  

The Inflation Reduction Act provides funding for pollution monitoring equipment and cleanups needed to address environmental injustice—a key provision for which Acadia Center advocated as a companion policy to the Transportation and Climate Initiative (TCI).  While the law is particularly aimed to provide infrastructure on clean technologies that get situated in already disadvantaged communities, it is essential that implementation of these programs, grants, and financial incentives are administered with clarity through a transparent approach that is led by the voices and participation of communities across the country. 

Though the Inflation Reduction Act may be the biggest and most ambitious climate legislation enacted to provide climate solutions and support low-income communities, environmental justice communities, and tribal communities, continued climate leadership and stewardship is needed for climate solutions and environmental justice. The White House Interagency on Environmental Justice and White House Environmental Justice Advisory Council, both created through Executive Order 14008, and the White House Council on Environmental Quality (CEQ), are examples of equity and environmental justice stewardship at the federal level. With more state and municipality-level engagement from communities of color, tribal communities, and low-income communities, equity and environmental justice in climate action becomes foreseeable. 

For more information: 

Joy Yakie, Manager, Environmental Justice and Outreach, jyakie@acadiacenter.org, 617-742-0054 x110  

  

The Inflation Reduction Act Makes Climate Change History

The Inflation Reduction Act has passed in the Senate, the House of Representatives, and has been signed into law by President Joe Biden. Alongside desperately needed funding for healthcare, this bill is the first major clean energy investment ever passed in the U.S. The IRA will invest $386 billion dollars into climate related initiatives. Prior to the adoption of the IRA, the U.S. was estimated to be on track to reducing greenhouse gas (GHG) emissions 25% below 2005 levels by 2030. With the IRA, 2030 emissions are estimated to be about 40% below 2005 levels – demonstrating the magnitude of the bill in reducing emissions. The figure below demonstrates how U.S. “business as usual” (BAU) GHG emissions without the IRA compared to the “low,” “moderate,” and “high” emissions scenario trajectories associated with the IRA.  

According to analysis conducted by Energy Innovation, the IRA also has the potential to deliver significant public health and economic benefits, preventing up to 4,500 premature deaths in 2030 and creating up to 1.3 million jobs in 2030. Let us break down where the $386 billion in the bill is going:

• $161 billion for clean electricity tax credits
• $40 billion for air pollution, hazardous materials, transportation, and infrastructure
• $37 billion for individual clean energy incentives
• $37 billion for clean manufacturing tax credits
• $36 billion for clean fuel and vehicle tax credits
• $35 billion for conservation, rural development, and forestry
• $27 billion in building efficiency, electrification, transmission, industrial, DOE, grants, and loans
• $14 billion in other energy and climate spending

The total cost of the bill, including the healthcare components, comes out to $485 billion spent over the next ten years. However, the investment is predicted to bring in roughly $790 billion in that same period, meaning this bill is projected to have a net profit of $305 billion over the next decade. That profit will go towards reducing the deficit and controlling inflation.

The IRA represents the most significant federal action to fight climate change in our nation’s history, taking specific steps to address greenhouse gas emissions from buildings, transportation, and power generation. Here are how the investments align with Acadia Center’s longstanding mission to “Advance the Clean Energy Future” throughout the Northeast.

Buildings
First and foremost, the IRA offers significant federal resources to advance a package of actions Acadia Center calls “Next Generation Energy Efficiency.” Acadia Center has been working throughout the northeast to urge utility companies and regulators to prioritize making our region’s homes and businesses more thermally comfortable and energy efficient through simple actions like better insulation and air sealing of building envelopes as well as replacing inefficient fossil fuel appliances like furnaces, boilers, water heaters, and cooktops with superior all-electric appliances. The combination of these steps significantly reduces the overall amount of fossil fuels used in these buildings, reduces energy bills, and improves overall quality of life by making our living and working spaces healthier, safer, and more versatile.

By focusing these coordinated activities on especially high emitting buildings in our region, we can amplify these multi-faceted benefits even further. For instance, in the residential sector, the leakiest 25% of housing units in New England produce more than half of greenhouse gas emissions attributable to housing. Statistically, these households are far more likely to be low-income and occupied by renters. Nearly all (96%) of high emitting housing units are heated by fossil fuels, which are several times less energy efficient than all-electric heat pumps. Tens of billions for investments in building retrofits and energy efficiency will yield a significant reduction in local air pollution and global greenhouse gas emissions.

What it means for you:

The IRA introduces a slew of new tax credits and upfront discounts for clean building technologies for both homeowners and renters alike. All homeowners, regardless of income, will have access to tax credits to support the purchase and installation technologies including geothermal heat pumps, air source heat pumps, heat pump water heaters, and electrical panel upgrades that are sometimes necessary to support the installation of these technologies. As an example, tax credits for heat pumps will be as high as $2,000.

Low-income (defined as less than 80% of median area income) and moderate-income (80%-150% of median area income) homeowners will have access to several upfront discounts for technologies including heat pumps, heat pump water heaters, electric induction stoves, heat pump clothes dryers, electric panel upgrades, and electric wiring upgrades. As an example, upfront discounts for heat pumps will be as high as $8,000. Upfront discounts for moderate-income households will cover up to 50% of the project cost, while discounts for low-income households will cover up to 100% of the project cost. Low-income and moderate-income renters have access to upfront discounts for clean building technologies that could be relocated in the event of a move, including heat pump window units, electric stoves, and heat pump clothes dryers. A combination of tax credits, upfront discounts and performance rebates will also be available to improve the efficiency of homes – ranging from basic weatherization to more comprehensive retrofits.

Additional measures in the IRA will work to address rampant levels of methane leakage occurring throughout the country related to the production of “fossil gas” also known as “natural gas.” This gas is primarily methane, which has a global warming potential of over 80 times that of carbon dioxide in its first 20 years in the atmosphere. Leaking methane is also a significant safety hazard as leaks in the distribution pipes and inside of households are responsible for fires and sudden catastrophic explosions. Specifically, the IRA calls for the implementation of a “methane emissions charge” for oil and natural gas production facilities that are not in compliance with EPA methane emissions regulations.

Acadia Center’s Beyond Gas initiative works to reduce the combustion and leaking of methane by transitioning both power generation and buildings away from today’s overreliance on fossil gas and by prioritizing the strategic repair of leaking pipe sections that are not immediately ready for decommissioning.

Transportation
Acadia Center has long worked on a multi-pronged Clean Transportation strategy to reduce tailpipe emissions through electrification of vehicles, expanding transit access and improving networks, and connecting communities through investments in safe, dedicated pedestrian and bicycle infrastructure. The IRA falls short of taking significant actions to modernize transit and personal mobility infrastructure networks[1], but does prioritize historic measures to accelerate vehicle electrification, ranging from personal vehicles to heavy-duty vehicles like buses and garbage trucks.

What it means for you:

The IRA includes a first-ever $4,000 consumer tax credit for lower/middle income individuals to buy used electric vehicles and up to $7,500 in tax credits to buy new electric vehicles—these programs will effectively extend and expand the current federal electric vehicle incentives that have started to expire under existing law. The tax credits for new vehicles are available to those with an adjusted gross income (AGI) below $150,000 (filing taxes as single) or $300,000 (filing taxes jointly), while the tax credits for used vehicles are available to those with an AGI below $75,000 (filing taxes as single) or $150,000 (filing taxes jointly). Plug-in hybrid electric vehicles (PHEVs), which use both electricity and gas, will still qualify for the tax credit if they have a battery of at least 7 kWh in size, a threshold that nearly all models meet.

However, the EV tax credits will not necessarily be easy to navigate for consumers in the short term. To be eligible for the full tax credit, vehicles must both be 1) Assembled in North America and 2) Source the critical minerals need to make the batteries from a U.S. free trade partner. This policy has created some near-term uncertainty for which specific makes and models will qualify. For example, Hyundai and Kia do not currently produce any EVs in North America despite having several EVs available to U.S. consumers. For those seeking more information, electrek is maintaining a detailed list of which vehicles do and do not qualify for the tax incentive under these new requirements.

The law also includes tax credits and grants for clean fuels and clean commercial vehicles to reduce emissions and $3 billion for the U.S. Postal Service to purchase zero-emission vehicles to replace its aging fleet of vehicles that travel throughout our communities every day.

Additionally, the IRA provides $3 billion in Neighborhood Access and Equity Grants that can support neighborhood equity, safety, and affordable transportation access via competitive grants to reconnect communities long divided by redlining practices that developed transportation infrastructure in a manner that intentionally split apart neighborhoods, many of which were primarily inhabited by people of color. These grants can also be used to mitigate the negative impacts of transportation facilities on disadvantaged or underserved communities, as well as to support equitable transportation planning and community engagement activities that should be at the heart of all community-led decision-making processes.

The IRA also provides $3 billion in grants to reduce air pollution at ports, including for the purchase and installation of zero-emission equipment and technology. This will reduce the amount of fossil fuels burned by idling ships and local port machinery and trucking operations. These strategic investments to reduce the amount of heavy-duty vehicle and machinery emissions directly aligns with work Acadia Center has led in the past to address particulate matter emissions generated by diesel engines in overburdened and underserved communities, particularly school buses which expose communities and school children directly to health impacts from poor air quality.

Power Generation
To sustainably power today’s economy and support the transition from fossil fuel burning appliances and vehicles, the IRA makes critical investments to accelerate the expansion of responsibly sited renewable energy resources, including in rural communities. About two thirds of the estimated greenhouse gas emission reductions resulting from the IRA in 2030 are expected to come from the electricity sector. Two of the key provisions driving this reduction are the 10-year extension of the Production Tax Credit (PTC) and Investment Tax Credit (ITC) which have been critical financial carrots driving the rapid deployment of wind and solar. Solar projects will be able to access the PTC for the first time and battery storage, which is critical for accessing the full benefits of renewable electricity, will have access to the ITC for the first time. Combined, the extension and expansion of these tax credits, along with other clean energy provisions in the IRA, will be critical in continuing to drive down the costs of renewable electricity and accelerating the shift away from fossil fuel electricity generation in favor of renewable electricity generation in the northeast.

What it means for you:

The IRA provides a 30% tax credit to all homeowners, regardless of income, to support the purchase and installation of residential rooftop solar and/or battery storage. Both tax credits are in effect for the next 10 years. The battery storage tax credit is brand new, and the solar tax credit represents a long-term extension of the existing solar tax credit that was previously set to decrease and fade away over the next couple of years.

However, these projected declines in electricity sector emissions will not be realized without addressing existing policy barriers hampering the deployment of cheap renewable energy. The challenges currently facing the construction of transmission lines and the interconnection of renewable electricity to the grid continue to persist. That is why Acadia Center remains focused on tackling these complex and technical issues that arise in the transition to a clean energy future.

Acadia Center’s Clean Power and Utility Innovation programs have tirelessly worked to push regulators and the incumbent fossil fuel-utility industrial complex to update business models to prioritize investments in clean energy and dynamic energy systems that provide greater economic and societal benefits to end users. The IRA buttresses that work by incentivizing investments to develop and deploy historic levels of clean energy and to provide support for more robust local participation in permitting and regulatory processes that are key to developing those resources responsibly and with community input.

The IRA also includes more than $20 billion to support climate-smart agriculture practices. Acadia Center partnered with the American Farmland Trust and other organizations to develop the Smart Solar Siting Project for New England that seeks to co-locate renewable energy resources on parcels that also host agricultural activities—a winning strategy that keeps the Northeast’s precious farmland in agricultural use and provides farmers a source of clean, renewable energy and diversified revenue stream to maintain their farm operations for generations to come.

Overall, the IRA represents a great step forward in U.S. climate policy but there is still much work to be done – much of which will need to occur at the state and local levels – to actualize the full potential of the IRA. Acadia Center’s work across its core initiatives will be crucial in ensuring that the IRA delivers the maximum amount of emissions, economic, health and equity benefits to northeastern states.

 

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[1] While the IRA itself may fall short on transit and personal mobility network investments, other large federal legislation of the past few years, such as the American Rescue Plan Act and Infrastructure Investment and Jobs Act, have provided some direction to those priorities.