Massachusetts Moves to Limit New Gas Infrastructure

Massachusetts has moved to discourage new investment in natural gas infrastructure by blocking utilities from recovering costs unless they can show they first considered non-gas alternatives. 

The order issued Dec. 6 by the Department of Public Utilities in Docket No. 20-80 follows more than three years of work by the DPU to engineer a reduction in the state’s greenhouse gas emissions.  

But it is only a first step, an attempt to discourage and dissuade rather than to ban. Ratepayer discretion is preserved, and the order’s effectiveness will depend in large part on the decisions they make. 

There are many more steps to come as the DPU works to balance all the moving pieces, competing interests and still-unknown factors to create a climate-protection solution that is workable, affordable and equitable. 

The Acadia Center, which had been pushing for a strong statement by the DPU, applauded Wednesday’s order, calling it a potentially transformative measure that addresses many of the clean energy advocacy group’s priorities. 

Eversource Energy and National Grid, which combined have more than 1.5 million gas customers in the Bay State, said in separate statements they support the state’s net-zero goals and are reviewing details of the 140-page order. 

The Acadia Center said: “The 20-80 order today from the DPU has the potential to be one of the most transformative decisions in Massachusetts climate history. … That being said, implementation and follow-through will be incredibly important, as always. Thoughtful planning by the Department and the commonwealth will be needed to ensure positive outcomes on key areas such as customer affordability, a just transition for gas workers, and infrastructure planning and management. This order therefore serves as an important midpoint in a multiyear process, as this decision will now lead to other key dominos like evaluation of gas utility stranded asset risk, decoupling mechanism revisions, systematic consideration of non-gas pipeline alternatives, and reassessment of gas utility policies on new and existing customer connections.”

To read the full article from RTO Insider, click here.

Op-Ed: Offshore Wind is critical to a livable and equitable future

The climate crisis demands a fundamental cultural shift in our energy system. Revolution Wind 1 and the South Fork Wind projects off Rhode Island’s coast meet a critical need for large-scale carbon-free electricity generation in the Northeast. But two stewards of historic and cultural structures, the Preservation Society of Newport County and the Southeast Lighthouse Foundation, recently positioned their organizations at odds with these projects in a group of appeals that cite alleged impacts to ocean views.

We implore these cultural institutions to withdraw their lawsuits and reconsider their role in the necessary shift away from fossil fuel energy and in stewarding a livable and equitable future for centuries to come.

Projected sea level rise of up to 10 feet in Newport over the next 75 years not only threatens our state’s coastal heritage, including the very resources in question with these lawsuits, but it also threatens the lives of our residents, particularly those who are most vulnerable and have borne the brunt of the impacts from the fossil fuel economy.

The recent release of the Fifth US National Climate Assessment (NCA) underscores the severe threat that climate change poses. We are already seeing adverse impacts across the globe, with July having the hottest temperatures recorded in more than 125,000 years, catastrophic wildfires, and intensified storms worldwide. In Rhode Island, we are experiencing wildfire smoke from Canada, unprecedented rainfall and flooding, and we have some of the fastest-warming waters in Narragansett Bay. This will continue to worsen unless we ensure systemic change.

While climate change affects everyone, its impact is disproportionately felt by low-income families, communities of color, and other underserved populations. These communities, despite contributing the least to the issue, are more impacted by extreme heat and flooding and often bear the brunt of fossil fuel facilities emitting hazardous pollutants that negatively affect their health. Prioritizing ocean views over the climate crisis and the heightened risk to environmental justice communities is a form of energy privilege.

Offshore wind is a crucial energy source to reduce emissions and mitigate the worst effects of climate change in Rhode Island and the Northeast. Decarbonizing our economy requires eliminating emissions in the electricity supply and electrifying transportation and heating. With the increase in power demand due to electrification, there is an urgent need for large-scale carbon-free electricity generation. The robust wind resource off our coast, particularly during the winter when energy for heating is most critical, makes offshore wind a vital resource for decarbonizing the region. The Road to 100% Renewable Electricity Report by the Brattle Group emphasizes the importance of offshore wind in meeting Rhode Island’s 100 percent renewable energy standard.

Both Revolution Wind 1(serving Rhode Island and Connecticut) and South Fork Wind (serving New York) have committed to project labor agreements, bringing high-paying union jobs to our region. The Revolution Wind 1 project has already created a $40 million investment in port facilities in Rhode Island and is set to create over 1,000 construction jobs in Connecticut and Rhode Island. Offshore wind can also protect consumers from the volatility of fossil fuel prices.

Litigating against projects like Revolution Wind 1 and South Fork Wind jeopardizes the well-being of future generations, exacerbates social disparities, and hinders the economic benefits of offshore wind for Rhode Island and the region – while forestalling progress against the climate risks that threaten the very cultural landmarks these legal challenges purport to protect. The benefits of these projects far outweigh the impacts claimed in these lawsuits.

Members and allies of the Rhode Island State Committee of the New England for Offshore Wind Coalition – including Carpenters Local Union 330, Climate Action Rhode Island, the Environment Council of Rhode Island, Citizens Climate Lobby, Conservation Law Foundation, and the Rhode Island AFL-CIO – agree that these lawsuits must be withdrawn or swiftly rejected to ensure the necessary shift in our energy system and steward a livable and equitable future for generations to come.

Amanda Barker of Green Energy Consumers Alliance and Emily Koo of Acadia Center are members of the Rhode Island State Committee of the New England for Offshore Wind Coalition

Read the op-ed in the Boston Globe here.

State charts a new energy future for Mass., beyond natural gas

The state of Massachusetts appears to be breaking up with natural gas.

State officials on Wednesday laid out a new regulatory strategy to move utilities away from natural gas as part of a broader effort to effectively zero out emissions from fossil fuels by 2050. Though in general terms instead of specific instructions, the order from the Department of Public Utilities offers this vision for the state in the mid 21st century: minimal gas pipelines; buildings powered by solar and wind, and warmed by heat pumps; and people cooking on electric stoves.

The edict marks an abrupt about-face from the DPU’s more industry-friendly approach under the previous governor, Charlie Baker, and the new message is clear: the transition away from pipeline-delivered gas is happening — whether the utilities like it or not.

Climate and clean energy advocates cheered the news. “This is potentially the most transformational climate decision in Massachusetts history,” said Kyle Murray, Massachusetts program director at the clean energy advocacy group Acadia Center.

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

Mass. outlines new strategy for getting customers and utilities off of natural gas

As Massachusetts works to zero-out planet warming emission by 2050, one big question has been how the state will wean itself off of natural gas and heat the majority of homes and buildings with electricity instead. One big obstacle has been gas utilities, which make money off of maintaining existing pipelines and building new infrastructure.

Now, after more than three years of considering the future of the natural gas industry in Massachusetts and what role it can play in the state’s efforts to significantly reduce its greenhouse gas emissions, the Department of Public Utilities issued an order Wednesday meant to signal to gas utilities that it won’t be business as usual going forward.

“I really do think that this is potentially the most transformative climate decision in Massachusetts history,” said Kyle Murray, a senior Massachusetts advocate with Acadia Center, a climate advocacy and research group. “The department really looked at everything and delivered a decision that is well thought out [and follows] the science and data and the available information.”

To read the full article from wbur, click here.

Acadia Center Applauds the Massachusetts D.P.U. for a Groundbreaking, Science-Backed Gas Utility Transition Order

Download the Press Release here: Acadia Center – MA DPU Gas Utility Order 20-80 Press Release

For Immediate Release
December 6, 2023
Media Contacts
Kyle Murray, Director, State Program Implementation
kmurray@acadiacenter.org, 617-742-0054 ext.106

BOSTON — Today, the Massachusetts Department of Public Utilities (DPU) issued a groundbreaking Order in Docket 20-80-B, focused on the role of gas utilities as the Commonwealth sets out to achieve its overarching climate target of net zero emissions by 2050. After more than three years of activity in the docket, including extensive participation and comments from Acadia Center and other stakeholders, today’s Order is a resounding victory for customers, the climate, and the Commonwealth at large. The DPU’s decision represents a pivot point in the Commonwealth’s strategy for decarbonizing the buildings sector and transitioning away from the natural gas distribution system that utilities operate today. Acadia Center applauds the DPU and its Commissioners and Staff for the leadership demonstrated in shepherding this impactful Order to issuance. Through this Order, as well as recent promising clean heating actions rejecting renewable natural gas (RNG) and hydrogen as viable gas system decarbonization measures, the Healey-Driscoll Administration is signaling a steadfast commitment to the vision of an efficient, electrified building stock enabled by sound, science-backed policy pathways.

Acadia Center stands ready and willing to work with the DPU and other stakeholders to make good on the promise of this Order and implement the DPU’s directives, with an emphasis on protecting those who may be most affected by this transition. This includes low-income and environmental justice communities, as well as the Commonwealth’s important union gas workforce, all of whom deserve a just and equitable transition through the subsequent steps that will now unfold. With these protections identified and prioritized, Acadia Center believes that Order can and should spur other states in the region to follow suit and add momentum to the Commonwealth’s leadership in this key area.

Kyle Murray, Director, State Program Implementation at Acadia Center, said, “The Order today from the DPU has the potential to be one of the most transformative decisions in Massachusetts climate history. The Department took a hard look at all the options and delivered a decision that is well thought-out in both the macro and micro context. Best of all, the Department simply did what advocates have long been asking for: follow the science and data. For example, they reject adding renewable natural gas (RNG) into regular gas supply, not because of ideological reasons, but for reasons of cost, availability, and questionable greenhouse gas reductions. The Order also includes other major Acadia Center priorities, such as coordinated gas/electric system planning, as well as a strong endorsement of the central role for efficient, electric heating and cooling technologies such as heat pumps. This is a major win for Acadia Center and our allies, who spent countless hours over the past two years pushing for a just outcome in the 20-80 proceeding.”

Jamie Dickerson, Senior Director, Climate and Clean Energy Programs at Acadia Center, said, “Acadia Center congratulates Chair Van Nostrand, fellow Commissioners, and the DPU Staff for today’s landmark ruling, and we applaud the Healey-Driscoll Administration for tackling one of the climate and energy transition’s thorniest challenges – the future of the gas system – head-on. Implementation and follow-through will be incredibly important, as always. But with the foundation laid by this Order, thoughtful planning can now ensure positive outcomes in key areas such as customer affordability, low income protections and conversion prioritization, a just transition for union gas workers, and holistic infrastructure planning and management. Today’s outcome will undoubtedly herald the start of a new chapter for building decarbonization in the Commonwealth.”

From the inception of Docket 20-80, the Department sought to develop a regulatory and policy framework to guide the evolution of the gas distribution industry in the context of a clean energy transition, which it recognized would require the consideration of new policies and structures to protect ratepayers as the Commonwealth reduces its reliance on natural gas. Between its launch in October of 2020 and today, the proceeding saw voluminous public comments and stakeholder participation. Acadia Center, both on its own and through a coalition of ‘Clean Energy Stakeholder’ advocates, submitted multiple rounds of comments outlining a wide range of policy arguments for and against proposals offered in the proceeding. As has been the case in many states across the U.S., these pathways and proposals varied widely from those rooted in energy efficiency and electrification to those that sought a major role for renewable natural gas (RNG) and significant continued reliance on the Commonwealth’s sprawling natural gas distribution system.

In today’s Order, the Department offered many noteworthy conclusions, observations, and directives that will now shape the Commonwealth’s building decarbonization strategy, including the following highlights:
• Focus on Electrification: While acknowledging differing contexts across distinct gas utility service territories, the DPU affirmed that the Commonwealth’s dominant building decarbonization strategy is electrification, as noted in the 2025/2030 Clean Energy and Climate Plan (CECP).
• Coordinated Electric and Gas System Planning: DPU makes it clear that the building decarbonization transition will require coordinating planning between gas and electric utilities and notes that “evaluation of any proposed investments will have to take place in the context of joint electric and gas system planning.”
• Renewable Natural Gas & Hydrogen Present Too Much Risk: The DPU further rejected the recommendation to change its current gas supply procurement policy to support the addition of RNG and gas utility supply portfolios due to concerns regarding the costs and availability of RNG as well as its uncertain status as zero emissions fuel and potential triggering of system upgrades. The DPU goes on to state that hydrogen “has not yet been proven to result in a net reduction in GHG emissions” and that any infrastructure upgrades needed to accommodate hydrogen pilot programs “would be the sole responsibility of utility shareholders and not their customers.”
• Large-scale Decommissioning of the Gas System: The DPU envisions that the long-term use of the natural gas distribution system generally will be limited to strategic circumstances where electrification is not feasible for
all natural gas applications, such as process heat applications for some commercial and industrial (C&I) customers.
• Spotlight on Broad Participation by Affected Constituencies: The DPU found, “These exceedingly complex issues can be addressed effectively only with the broad participation of all the constituencies affected by this
transition.” Acadia Center will be following these developments closely in implementation to ensure all important communities have a seat at the table and their voice heard, including environmental justice communities, low-income ratepayers, gas workers, and more.
• Disincentivize Expansion of the Gas System: While the DPU states that it is not clear if they have statutory authority to prohibit the addition of new gas customers, they point out that there is an “opportunity to….disincentivize further customer expansion” of the gas system by changes to the procedure by which the cost-effectiveness of gas system expansion is evaluated.
• Sprawling Gas System Not Needed for Backup Heat: The Department was not persuaded that pursuit of a broad hybrid heating strategy that would necessitate maintenance of the natural gas system to support backup
heating systems is a viable path forward, citing improvements in cold climate heat pump technology that will generally eliminate the need for backup heating systems.
• Minimizing Stranded Gas Assets: As an initial step on the issue of depreciation, the DPU directed all gas utilities to conduct a forecast of the potential magnitude of stranded investments, and to identify the impacts of accelerated depreciation proposals, as well as potential alternatives to accelerated depreciation. Minimizing additional investments in pipeline and distribution mains is a core tenant of DPU’s ‘beyond gas’ future.
• Gas Utilities Must Consider “Non-gas Pipeline Alternatives” (NPAs): The DPU found that consideration of NPAs (including electrification, energy efficiency, and demand response) is necessary to minimize investments in the gas system and stranded assets. The gas utilities will bear the burden of demonstrating that NPAs were adequately considered and found to be non-viable or cost prohibitive in order to receive full cost recovery.
• Performance-based Ratemaking (PBR) Reform: The DPU recommends amending the existing PBR framework to establish incentives and disincentives reflecting the gas utilities’ progress towards compliance with the Climate Act mandates and directs the gas utilities to develop “climate compliance performance metrics” in their next PBR filings.
• Progressive Solutions to Customer Affordability on the Table: The DPU acknowledges that, given current rate structures, the decarbonization of the natural gas industry may result in higher costs being imposed on some ratepayers. As a result, the DPU will commence a separate proceeding later this year to examine innovative solutions to address customer affordability issues, such as “capping energy bills by percentage income or offering varying levels of low-income discounts.”

In terms of next steps, the Order represents not a conclusion of work, but rather an initiation of multiple significant new workstreams in which utilities, stakeholders, and the Department will now engage. The Order therefore serves as an important midpoint and mile-marker in a broader process that will span many years if not decades, with the decision now setting off other key dominos, such as the following steps:
• Evaluation of the magnitude of gas utility stranded asset risks;
• Revisions to gas utility revenue decoupling mechanisms;
• Systematic consideration and adoption of non-gas pipeline alternatives (NPAs);
• A new DPU proceeding dedicated to innovative solutions to address energy burdens and affordability;
• Reassessment of gas utility tariffs, policies, and practices on new and existing customer connections;
• Individual gas utility Climate Compliance Plans every five years; and
• Coordinated planning between gas utilities and electric distribution companies.

Acadia Center looks ahead with excitement to the opportunity to carry this important work forward and implement the directives of today’s landmark Order in line with the imperatives of climate, affordability, equity, safety and reliability, and beyond. We thank the DPU again for its leadership in this important proceeding.

For more information:
Kyle Murray, Director, State Program Implementation, kmurray@acadiacenter.org, 617-742-0054 ext.106
Ben Butterworth, Director: Climate, Energy, and Equity Analysis, bbutterworth@acadiacenter.org, 617-742-0054 ext.111

Op-Ed: Canada must co-operate more with U.S. in developing electricity grids

Frédéric Côté is the general manager of Nergica. Daniel Sosland is the president of Acadia Center.

In the halls of power where the future of the electrical grid is planned and billions of ratepayer dollars are on the table, there is an elephant in the room – and it isn’t happy.

This paper’s editorial board was spot on when it said the topic of clean power should be “top of the list” for provincial leaders, and we applaud the federal government’s repeated promise to deliver clean electricity investment tax credits in its recent fall economic statement. But Canadians are missing a much wider and significant context emerging in North America: The United States is planning a continental grid, and much greater cross-border co-operation is needed for both countries to succeed in building it.

Grid modernization is essential to meet climate targets and position the continental Northeast to take advantage of clean energy opportunities. Done correctly, it will also improve service reliability and help control costs. Provinces, however, continue to plan their power grids in virtual isolation of one another – and with little discussion with their American neighbours. This isolationism is not in the long-term interest of both countries and cuts against a consensus that such interregional planning – as it is known in electric industry circles – is imperative to our collective energy security.

Why consider co-ordinating efforts? Well, first of all, American states are seeking it! In June, the six New England states, New York and New Jersey wrote a letter to the U.S. Department of Energy (DOE) calling for a new approach to interregional planning between the jurisdictions, proposing that appropriate Canadian jurisdictions should take part as well. The DOE and federally regulated regional transmission organizations of the U.S. Northeast have voiced support for this new model and are co-operating to develop strategies. To date, Canadian provinces are missing from the table.

A co-operative dialogue between the provinces and states offers improved public interest outcomes: consumer energy savings, increased system reliability, greater technical efficiency, more equitable distribution of benefits and the intentional inclusion of local concerns on matters such as project siting and mitigating community impacts. The latter is imperative in earning public support for infrastructure build-out to fight climate change.

Complex problems related to the future of our electricity supply in a carbon-constrained world are unlikely to be solved at a political negotiating table. Rather, they require patiently thought-out solutions achieved through inclusive discussion. These solutions will require analysis derived from regulators, developers, utilities, researchers and market design experts from various jurisdictions. The inputs of consumers, communities, Indigenous leaders and other stakeholders who pay for and are directly affected by decisions made about the grid must also be prioritized.

The ratepayer and voter should be very concerned that provinces and states are not collaborating to pursue these benefits. Interjurisdictional co-operation has been limited to narrow issues around specific, often controversial transmission projects, not on the broader and critical issue of how our shared electricity system can improve the lives and pocketbooks of all residents. Simply put, the clean energy transition cannot maximize consumer, system and equity benefits if provinces treat their grids as closed markets except to promote electricity exports.

The United States is focusing increased attention on power infrastructure and market co-operation. The Inflation Reduction Act, emerging federal regulations and state policies are all pushing electrification forward on a new footing. Canadian grid planners need to align with that effort.

Various scholars, trade associations and utility planners from both sides of the border have been calling for interregional planning in the Northeast for more than a generation. It is seen as an economic imperative. Given the right interregional mandate, regulators and planners from across the Northeast will enable greater investment in infrastructure and technology, from onshore and offshore wind and rooftop solar to district energy plants and energy efficiency measures, elevating community concerns as a top-level consideration, not an afterthought, as is often the case now.

To read the op-ed on the Globe and Mail, click here.

Partisanship, Oil Interests Kill Life-Saving Clean Cars and Trucks Standards by Politicizing Bipartisan Regulatory Process

Hartford — Tomorrow, the Lamont administration is expected to announce that the proposed Advanced Clean Cars II (ACCII), Advanced Clean Trucks (ACT), and Heavy-Duty Omnibus (HDO) programs will be withdrawn from consideration by the state’s Regulation Review Committee.

By setting gradually increasing sales targets for low- and zero-emissions vehicles, and requiring heavy-duty vehicles to emit less toxic nitrous oxides (NOx), these regulations would have saved consumers money at the pump while protecting public health against the dangerous effects of air pollution. Rates of air pollution-linked death are higher in Connecticut than in any other New England state.

“In a state with immense vehicle miles traveled from passenger and heavy-duty vehicles, Connecticut now falls farther behind in its clean transportation goals without adopting the full suite of proposed vehicle emissions standards,” said Jayson Velazquez, Climate and Energy Justice Policy Associate at Acadia Center. “Connecticut should be the solidifying piece in the Tri-State Area critical to the regional auto market and transportation corridor. For existing and future generations of Connecticut residents, clean air, climate, health, and equity are deferred. Unfortunately, disinformation campaigns stifled opportunities for innovation, equitable outreach, engagement, workforce opportunities, education, and the economy. Connecticut now misses the mark in joining regional leaders and partners as the sole outlier in the clean vehicle transition that is underway.”

To read the full press release from Clean Car States, click here.

Dem governor withdraws electric vehicle mandate in stunning blow to environmentalists

Democratic Connecticut Gov. Ned Lamont is withdrawing his plan to mandate future electric vehicle (EV) purchases after the proposal received bipartisan pushback from lawmakers on a key legislative panel.

Lamont ultimately pulled the proposal just four months after unveiling it and characterizing it as “decisive action to meet our climate pollution reduction targets.” In July, Lamont unveiled the proposal, tethering Connecticut’s emissions standards to those set in California, which mandates that every passenger vehicle sold is electric by 2035, the most aggressive target of its kind nationwide.

The Sierra Club Connecticut, Conservation Law Foundation, Acadia Center, Union of Concerned Scientists, Nature Conservancy, Environment Connecticut and Connecticut League of Conservation Voters also ripped Lamont’s action Tuesday.

To read the full article from Fox News, click here.

Climate advocates call on New Jersey leaders to pass legislation to deliver economic, health and climate benefits of clean energy

Trenton, NJ —- Today members of Clean Energy Action Now (CLEAN) came together to support legislation to increase affordability, deliver cleaner air, and accelerate the Garden State’s climate goals. The Clean Energy Act of 2023 (S2978), sponsored by Sen. Bob Smith, would accelerate New Jersey’s clean energy transition by ensuring New Jersey utilities deliver 100% clean electricity by 2035 with minimal impacts to New Jersey energy bills, further reducing the state’s reliance on fossil fuels in the next decade.

Ben Butterworth, Director: Climate, Energy & Equity Analysis, Acadia Center:

“New Jerseyans have already paid dearly for the cost of climate change, from hotter, more deadly summers to more frequent, more intense natural disasters like Hurricane Sandy that damaged hundreds of thousands of homes across the state. Today’s legislation to achieve 100% clean electricity by 2035 takes a massive step toward reducing New Jersey’s climate-warming emissions, but more must be done to ensure that residents can access the health, economic, and climate benefits of pollution-free homes.”

To read the full press release on Insider NJ, click here.

RIDOT presents revised Carbon Reduction Strategy plan

On Nov. 15, the Rhode Island Department of Transportation submitted a revised version of its Carbon Reduction Strategy to the Federal Highway Administration. If the plan is approved, RIDOT is eligible to receive an estimated $35.7 million from the federal government to spend on carbon reduction projects over four years.

While representatives from both the Acadia Center, a non-profit dedicated to climate solutions, and Grow Smart R.I., an organization focused on “neighborhood revitalization, environmental stewardship and economic opportunity,” believe the new plan is more effective, they still share concerns about its ability to help the state meet the goals outlined in the 2021 R.I. Act on Climate.

“Overall, I’m glad to see that RIDOT responded to the public’s demand for more investment in non-car infrastructure,” said Emily Koo ’13, senior policy advocate and R.I. program director of the Acadia Center. “But the core issues of not meeting the Act on Climate targets, nor measuring project level emissions reductions, remain.”

While Acadia was “glad to see that there’s significantly more funding for bike paths, it is still for resurfacing and preservation and maintenance of existing bike paths and not (establishing) new bike infrastructure,” Koo said.

For Koo, RIDOT is “putting the onus of the transportation sector planning and analysis on the state’s 2025 climate strategy.”

To read the entire article from the Brown Daily Herald, click here.