New Webinar to Highlight Benefits of US-Canada Energy Exchange for Offshore Wind

FOR IMMEDIATE RELEASE: September 6, 2024
Contact: Samantha Beairsto, Acadia Center, sbeairsto@acadiacenter.org

BOSTON – September 6, 2024 – Acadia Center is proud to announce its collaboration with New England for Offshore Wind (@NE4OSW) and the Environmental League of Massachusetts on a webinar that will uncover the benefits of balancing US-Canada energy resources to bolster Atlantic offshore wind potential. 

Bridging the Power Gap:
How Bidirectional Clean Energy Benefits the US Northeast and Eastern Canada  

October 9, 2024  •  12:00 – 1:15 p.m. 

Register tinyurl.com/587wvje8 

As offshore wind takes a bigger role in decarbonizing the US Northeast, and Canadian provinces and utilities eye growing electricity demand, leaders on both sides of the border must think holistically about the benefits of greater two-way electricity trade. In this webinar, experts will explore how bidirectional flows and interregional transmission capacity can unlock synergies between Canada’s clean energy sources, both existing and new, and emerging clean energy resources in the Northeast – all in an effort to support fossil fuel phaseout, address regional climate goals, and ensure an affordable, reliable power grid. 

Key Highlights: 

• How expanding interregional transmission capacity can enable greater utilization of existing hydro reservoirs as a balancing resource, making greater and more efficient use of renewable energy resources across the border.  
• Fresh perspectives on the changing market conditions in both the U.S. and Canada, especially as Canada undergoes a shift from abundance to potential scarcity. 
• What new market conditions mean for the optimal bidirectional flow of electricity across the border between neighboring regions. 

About Acadia Center 

Acadia Center (AcadiaCenter.org) is a non-profit organization with over 25 years of experience dedicated to advancing transformative clean energy solutions that promote a livable climate and a more equitable economy in the Northeast United States and beyond. Through rigorous data analysis and strategic partnerships, Acadia Center advocates for policies that significantly reduce carbon emissions and address systemic energy challenges. By collaborating with governments, industries, and communities, Acadia Center’s bold strategies help to ensure an inclusive and sustainable energy future for all. 

About ELM 

The Environmental League of Massachusetts (EnvironmentalLeague.org) advocates for policy that meets the scale and urgency of our environmental challenges. ELM is the founding convener of New England for Offshore Wind (@NE4OSW), a broad-based coalition of environmental organizations, businesses and associations, academic institutions, and labor unions committed to combatting climate change by increasing the supply of clean energy to our regional grid through more procurements of responsibly developed offshore wind.  

About New England for Offshore Wind 

New England for Offshore Wind (NewEnglandforOffshoreWind.org) is a broad-based coalition of businesses and associations, environmental and justice organizations, academic institutions, and labor unions committed to combatting climate change by increasing the supply of clean energy to our regional grid through more procurements of responsibly developed offshore wind. We believe that responsibly developed offshore wind is the single biggest lever we can pull to address the climate crisis while also strengthening our regional economy, protecting ratepayers, creating high quality jobs, and improving public health by reducing pollution. 

RGGI 64th Auction: An Additional $337 Million Raised for Clean Energy

BOSTON, MA – On Wednesday, June 5, 2024, the ten states participating in the Regional Greenhouse Gas Initiative (RGGI) released the results of the 64th auction 2024. Emissions allowances were sold for $21.03 each, generating $337 million for clean energy investments in participating states.

“The record-setting price in the 64th RGGI auction speaks volumes, it’s a reflection of the growing value in the collective effort to reduce carbon emissions —$337 million raised brings RGGI’s cumulative total to a staggering $7.8 billion since the inception of the program, and these newly generated funds will continue to invest in sustainable solutions and support the transition to a cleaner, more equitable energy future,” stated Paola Tamayo, Policy Analyst at Acadia Center and co-author of the organization’s RGGI Third Program Review Report.

The allowance price of $21.03 is the highest price observed historically since the RGGI program’s inception. RGGI auctions stand as a crucial mechanism for curbing carbon emissions and charging power plants for their climate pollution. Among the various instruments within RGGI auctions, the Cost Containment Reserve (“CCR”) – a market mechanism that releases extra allowances beyond the cap to be sold if prices exceed predetermined levels – was triggered for the second time in 2024. Since the CCR was triggered during the 63^rd auction, all the CCR allowances for the 2024 calendar year have been released, so despite the 64^th auction price meeting the threshold for triggering the CCR, there were no additional allowances released.

The CCR was initially conceived to be a safeguard, only to be triggered in times of extraordinary circumstances. Recent trends have shown a worrisome pattern: in the latest auction, the CCR was triggered for the third consecutive time. This pattern highlights the importance of reassessing the CRR trigger price in this Program Review. By raising the CCR cost, more breathing room is created for auction prices to rise, ensuring the effectiveness of the RGGI cap in reducing emissions.

Furthermore, the Emissions Containment Reserve (ECR) retains allowances for additional emissions reductions if prices fall below the trigger price of $7.35 in 2024. Notably, the ECR remains well below the auction price and has historically not been triggered. That means that the auction price is almost three times higher than the trigger price, signaling a significant deviation from the original intent of this program mechanism. For the ECR to maintain its effectiveness as a market stabilizer, it should show a more dynamic response to fluctuations in auction prices. While the ECR serves as a vital safety net, its rigid structure makes the effect of this mechanism negligible in the face of rising auction prices. As stakeholders engage in discussions surrounding the third program review, there’s a pressing need to reevaluate the mechanisms governing the ECR. By introducing greater flexibility and adaptability into its design, the ECR can better fulfill its role in ensuring the stability and integrity of the RGGI market, ultimately driving progress towards a more sustainable future.

Higher RGGI allowance price is good for climate, clean energy investment

The clearing price of $21.03 for the first auction of 2024 marks a continuation of the upward trend observed in recent years. This clearing price represents a 65% increase from the clearing price in Q2 of 2023 and a 31% increase from the last auction. The positive trajectory witnessed in the 2023 and 2024 auctions holds promising implications for the RGGI program. Higher observed allowance means that the RGGI program is sending a stronger incentive to reduce fossil fuel emissions and produce electricity from carbon-free sources, like wind and solar.

Since the program launched, the vast majority of RGGI proceeds have been invested in energy efficiency and clean energy projects, as detailed in the most recent report on RGGI investments in 2021, released in June of  last year. We are also hoping for a more timely and transparent reporting system on proceeds investments. As the auctions generate significant revenue, it’s crucial to ensure that these funds are allocated efficiently and effectively towards clean energy and energy efficiency initiatives.

The $337.5 million in proceeds generated in this auction brings the cumulative to-date total to $7.89 billion. The 2023 and 2024 auction results underscore RGGI’s significance as more than a regulatory framework, emphasizing its influence on the shift towards sustainable energy. RGGI states show the practicality of a collaborative, market-driven strategy for reducing greenhouse gas emissions.

RGGI Third Program Review Offers an Opportunity to Direct Proceeds Towards Clean Energy Investments that Directly Benefit Environmental Justice Communities

Since its establishment, RGGI’s priorities have centered around reducing pollution from fossil fuel power plants and achieving climate solutions for RGGI states. Every five years or so, RGGI undergoes a program review, giving the participating states the opportunity to consider the program’s performance and make various changes, including the equitable disbursement of the program’s proceeds. RGGI’s Third Program Review is happening now, and we are still waiting for more information on what to expect from them this year. Especially since it was expected to conclude at the end of last year. In 2023, RGGI held two public meetings and two public comment periods to discuss and seek feedback on various aspects of the program. Acadia Center, other stakeholders, and the public at large await any responses from the states to public input on setting the cap and improving overall program design and operation.

As discussed in more detail in Acadia Center’s most recent RGGI Report, there are many different ways in which RGGI can ensure that environmental justice communities are heard and are actively involved in the development of strategies for an equitable transition to a carbon-free economy. Regardless of how strongly the Third Program Review does or does not prioritize environmental justice, it should remain a priority for individual states to consider the recent auctions, the history of investments across the states, the need to benefit environmental justice communities directly, and other mechanisms associated with the cap-and-invest program.

Acadia Center remains closely involved in RGGI policy conversations across the RGGI states and will continue to advocate for program reforms that drive equitable investment and climate action.

Media Contacts:

Paola Moncada Tamayo, Policy Analyst
ptamayo@acadiacenter.org, 860-246-7121 x204

Ben Butterworth, Director: Climate, Energy, and Equity Analysis
bbutterworth@acadiacenter.org, 617-742-0054 x111

RGGI 63rd Auction: An Additional $388 Million Raised for Clean Energy

FOR IMMEDIATE RELEASE
RGGI 63rd Auction: An Additional $388 Million Raised for Clean Energy
For Release: March 20, 2024

BOSTON, MA – On Wednesday, March 6, 2023, the ten states participating in the Regional Greenhouse Gas Initiative (RGGI) released the results of the 63nd auction for 2024. Emissions allowances were sold for $16.00 each, generating $388 million for clean energy investments in participating states.  

“The strong success of this auction speaks volumes—$388 million raised brings RGGI’s cumulative total to a staggering $7.5 billion,” stated Paola Tamayo, Policy Analyst at Acadia Center and co-author of the organization’s RGGI Third Program Review Report.  

The allowance price of $16.00 is the highest level observed historically since the RGGI program’s inception. RGGI auctions stand as a crucial mechanism for curbing carbon emissions and charging power plants for their climate pollution. Among the various instruments within RGGI auctions, the Cost Containment Reserve (“CCR”) – a market mechanism that releases extra allowances beyond the cap which are sold if prices exceed predetermined levels – was triggered again in this auction. The Trigger Price of $15.92 per ton of CO2 was met, and 8,416,278 CCR allowances were sold in the auction. The CCR was initially conceived to be a safeguard, only to be triggered in times of extraordinary circumstances. However, recent trends have shown a worrisome pattern: in the latest auction, the CCR was triggered for the second consecutive time. This auction highlights the importance of reassessing the CRR trigger price in this Program Review. By raising the CCR cost, more breathing room is created for auction prices to rise, ensuring the effectiveness of the RGGI cap in reducing emissions.  

Furthermore, the Emissions Containment Reserve (ECR) retains allowances for additional emissions reductions if prices fall below the trigger price of $7.35 in 2024. Notably, the ECR remains well below the auction price and has historically not been triggered. That means that the auction price was over two times higher than the trigger price, signaling a significant deviation from the original intent of this program mechanism. For the ECR to maintain its effectiveness as a market stabilizer, it should show a more dynamic response to fluctuations in auction prices. While the ECR serves as a vital safety net, its rigid structure makes the effect of this mechanism negligible in the face of rising auction prices. As stakeholders engage in discussions surrounding the third program review, there’s a pressing need to reevaluate the mechanisms governing the ECR. By introducing greater flexibility and adaptability into its design, the ECR can better fulfill its role in ensuring the stability and integrity of the RGGI market, ultimately driving progress towards a more sustainable future. 

Higher RGGI allowance price is good for climate, clean energy investment  

The clearing price of $16 for the first auction of 2024 marks a continuation of the upward trend observed in recent years. This clearing price represents a 28% increase from the clearing price in March 2022 and an 8% increase from the last auction. The positive trajectory witnessed in the 2023 auctions and this first auction of 2024 holds promising implications for the RGGI program. Higher observed allowance prices in 2022, 2023 and now 2024 means that the RGGI program is sending a stronger incentive to reduce fossil fuel emissions and produce electricity from carbon-free sources, like wind and solar.   

Since the program launched, the vast majority of RGGI proceeds have been invested in energy efficiency and clean energy projects, as detailed in the most recent report on RGGI investments in 2021, released in June of  last year. We are also hoping for a more timely and transparent reporting system on proceeds investments. As the auctions generate significant revenue, it’s crucial to ensure that these funds are allocated efficiently and effectively towards clean energy and energy efficiency initiatives. 

The $388 million in proceeds generated in this auction brings the cumulative to-date total to $7.5 billion. The 2023 and 2024 auction results underscore RGGI’s significance as more than a regulatory framework, emphasizing its influence on the shift towards sustainable energy. RGGI states show the practicality of a collaborative, market-driven strategy for reducing greenhouse gas emissions.   

RGGI Third Program Review Offers an Opportunity to Direct Proceeds Towards Clean Energy Investments that Directly Benefit Environmental Justice Communities  

Since its establishment, RGGI’s priorities have centered around reducing pollution from fossil fuel power plants and achieving climate solutions for RGGI states. Every five years or so, RGGI undergoes a program review, giving the participating states the opportunity to consider the program’s performance and make various changes, including the equitable disbursement of the program’s proceeds. RGGI’s Third Program Review is happening now and is expected to conclude relatively soon this year. In 2023, RGGI held two public meetings and two public comment periods to discuss and seek feedback on various aspects of the program. Acadia Center, other stakeholders, and the public at large await any responses from the states to public input on setting the cap and improving overall program design and operation. 

As discussed in more detail in Acadia Center’s most recent RGGI Report, there are many different ways in which RGGI can ensure that environmental justice communities are heard and are actively involved in the development of strategies for an equitable transition to a carbon-free economy. Regardless of how strongly the Third Program Review does or does not prioritize environmental justice, it should remain a priority for individual states to consider the recent auctions, the history of investments across the states, the need to benefit environmental justice communities directly, and other mechanisms associated with the cap-and-invest program.  

Acadia Center remains closely involved in RGGI policy conversations across the RGGI states and will continue to advocate for program reforms that drive equitable investment and climate action.    

Media Contacts: 

Ben Butterworth, Director: Climate, Energy, and Equity Analysis
bbutterworth@acadiacenter.org, 617-742-0054 x111 

Paola Moncada Tamayo, Policy Analyst
ptamayo@acadiacenter.org, 860-246-7121 x204 

A Call to Action: Connecticut Climate Justice March and Acadia Center’s Support for 2024 Clean Energy Priorities

For Release: February 2, 2024

Download the Press Release: Acadia Center Press Release – 2024 Connecticut Climate Justice March

Hartford, CT – In the lead-up to the start of Connecticut’s 2024 legislative session, Jayson Velazquez – Acadia Center’s Climate and Energy Justice Policy Associate – today joined climate, energy, and environmental advocates, organizers, and activists in Connecticut’s Climate Justice March. In this call to action, participants and speakers called on legislators, officials, and organization leaders to take adequate action to address climate change.

In addition to the Climate Justice March, advocates, organizers, and activists issued a Climate Justice Letter with a detailed list of equitable solutions to align Connecticut with its emissions reduction targets outlined in the Global Warming Solutions Act (GWSA).

In addition to contributing to the list of solutions in this letter, Velazquez gave a speech during a stop on the Climate March in Hartford to highlight the pressing need to address energy inequities across the state.

Acadia Center expresses specific enthusiastic support for energy priorities outlined in the Climate Justice Letter:

• Operationalize Procedural, Distributive, Corrective, and Contextual Equity: Incorporate equity principles identified by the Governors’ Council on Climate Change (GC3) and the Connecticut Equity and Environmental Justice Advisory Council (CEEJAC) into Connecticut climate and energy plans.
• Increase Funding for, Identify, and Address Barriers to accessing Energy Efficiency Programs including the Home Energy Solutions Income Eligible (HES-IE) Program: Increase funding for efficiency programs to ensure maximum deployment of energy efficiency upgrades throughout the state, and ensure that adequate funding is devoted to workforce recruitment and training to ensure a robust energy efficiency workforce in Connecticut. The existing Community Partnerships Initiative could be leveraged to ensure barriers are identified, and solutions are collaboratively designed to provide increased access to energy efficiency programs.
• Expand Renewable Energy Deployment: Expand solar programs and establish targets for commercial, residential, and community solar projects, while addressing battery storage needs.
• Require Renewable Energy Sources on New Commercial and Industrial Construction: Support legislation to enable and incentivize municipalities to require renewable energy sources such as, geothermal, solar, heat pumps, etc., on new commercial and industrial construction.
• Heat Pump Deployment and Building Electrification: Invest in the electrification of newly constructed and existing homes. Support development of heat pump targets and financing programs, such as no-or-low interest loans for zero-emission heating equipment and necessary electrical upgrades to help support the transition to electric heat pumps and water heaters.
• Carbon Free and Healthy Schools: Support establishment of a $25 million CT Green Bank program to help schools implement energy saving and renewable energy construction projects.
• Grid Modernization and Grid Enhancing Technologies (GET): Support regional collaboration among northeastern states to strengthen interconnectivity in electric grid development and ensure GETs are
supported to better understand and develop electric capacity on our grid.
• Equitable and Responsible Energy Infrastructure Siting: Ensure the Connecticut Siting Council is empowered to address environmental injustices through analyses, collaborative and co-designed community-benefit agreements in the siting of energy generation and transmission infrastructure projects.
• Data Accessibility, Usability, and Transparency: Ensure data analysis capabilities are expanded at state agencies and considered as critical components of Connecticut climate and energy plans. Data should be publicly available, in usable tables, exportable formats, and opportunities should exist to request additional data to support advocacy efforts.

Acadia Center will continue collaborating with partners across Connecticut to push these goals forward in 2024. We look forward to an energizing and productive legislative session in the coming months, in a year that will be pivotal for the state and region’s progress in combating climate change and inequity.

Although Acadia Center contributed to and participated in the development of the Letter issued today, we did not directly sign on due to some policy priorities extending beyond our scope of work.

Media Contact
Jayson Velazquez, Climate and Energy Justice Policy Associate
jvelazquez@acadiacenter.org, 860-246-7121 x203

RGGI 62nd Auction and 2023 in Review: An Additional $411 million Raised for Clean Energy

For Release: December 22, 2023

BOSTON, MA – On Wednesday, December 6, 2023, the eleven states participating in the Regional Greenhouse Gas Initiative (RGGI) released the results of the 62^nd auction for 2023. Emissions allowances were sold for $14.88 each, generating $411.5 million for clean energy investments in participating states.

“The incredible success of this auction speaks volumes—$411.5 million raised brings RGGI’s cumulative total to a staggering $7.16 billion,” stated Paola Tamayo, Policy Analyst at Acadia Center and co-author of the organization’s RGGI Third Program Review Report. “What’s even more exciting is that both the proceeds from allowances and the clearing price hit record highs in this 62nd auction, marking a historic moment for RGGI as the program nears the conclusion of its Third Program Review.”

The allowance price for the RGGI program is the highest in 2023 and remains above the historical average. The Cost Containment Reserve (“CCR”), a market mechanism that releases extra allowances beyond the cap which are sold if prices exceed predetermined levels, was triggered in this auction. The Trigger Price of $14.88 per ton of CO₂ was met, and 5,565,291 CCR allowances were sold in the auction. The Emissions Containment Reserve (ECR) retains allowances for additional emissions reductions if prices fall below the trigger price of $6.87 in 2023. Notably, the ECR remains well below the average 2023 price and has historically not been triggered.

Higher RGGI allowance price is good for climate, clean energy investment

The clearing price of $14.88 in 2023 marks a continuation of the upward trend observed in recent years. This clearing price represents a 15% increase from the clearing price in December 2022. In total, the average 2023 auction price is only 0.2% higher than the average 2022 auction price. The positive trajectory witnessed in the 2023 auctions holds promising implications for the RGGI program. Having higher allowance prices seen in 2022 and 2023 means that the RGGI program is sending a stronger incentive to produce electricity from carbon-free sources, like wind and solar. Recent auctions demonstrate the growing significance of the CCR – this recent auction was the first time since 2021 that additional allowances were released because of triggering the CCR. The triggering of the CCR results in an influx of additional allowances into the market, which means that it’s potentially lowering the overall stringency of the emission reduction targets.

Since the program launched, the vast majority of RGGI proceeds have been invested in energy efficiency and clean energy projects, as detailed in the most recent report on RGGI investments in 2021, released in June of this year.

The $411.5 million in proceeds generated in this auction brings the cumulative to-date total to $7.16 billion. The 2023 auction results underscore RGGI’s significance as more than a regulatory framework, emphasizing its influence on the shift towards sustainable energy. RGGI states show the practicality of a collaborative, market-driven strategy for reducing greenhouse gas emissions. Notably, this year’s proceeds are 81% higher than the combined proceeds from 2019 and 2020 and stand 6% higher than the proceeds recorded in 2022.

RGGI Third Program Review Offers an Opportunity to Direct Proceeds Towards Clean Energy Investments that Directly Benefit Environmental Justice Communities

Since its establishment, RGGI’s priorities have centered around reducing pollution from fossil fuel power plants and achieving climate solutions for RGGI states. Every five years or so, RGGI undergoes a program review, giving the participating states the opportunity to consider the program’s performance and make various changes, including the equitable disbursement of the program’s proceeds. RGGI’s Third Program Review is happening now and will likely conclude early next year. In 2023, RGGI held two public meetings and two public comment periods to discuss and seek feedback on various aspects of the program. Acadia Center, other stakeholders, and the public at large await any responses from the states to public input on setting the cap and improving overall program design and operation.

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As discussed in more detail in Acadia Center’s most recent RGGI Report, there are many different ways in which RGGI can start to ensure that environmental justice communities are heard and are actively involved in the development of strategies for an equitable transition to a carbon-free economy. Regardless of how strongly the Third Program Review does or does not prioritize environmental justice, it should remain a priority for individual states to consider the recent auctions, the history of investments across the states, the need to benefit environmental justice communities directly, and other mechanisms associated with the cap-and-invest program.

Acadia Center remains closely involved in RGGI policy conversations across the RGGI states and will continue to advocate for program reforms that drive equitable investment and climate action.

Media Contacts:

Ben Butterworth, Director: Climate, Energy, and Equity Analysis
bbutterworth@acadiacenter.org, 617-742-0054 x111

Paola Moncada Tamayo, Policy Analyst
ptamayo@acadiacenter.org, 860-246-7121 x204

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

Governor Shapiro Can Champion Climate and Consumer Benefits from RGGI and Benefit Pennsylvania’s Future

For Release: November 2, 2023

Rockport, ME – In the wake of a pivotal Commonwealth Court decision finding Pennsylvania’s involvement in the Regional Greenhouse Gas Initiative (RGGI) unconstitutional, the state’s commitment to combating climate change has been put into question. Governor Josh Shapiro is presented with a unique opportunity to become a climate leader and safeguard the state’s environment, economy, and public health by supporting an appeal of the Court’s decision.

“Numerous studies confirm that participation in RGGI by Pennsylvania will provide large climate benefits, reduce criteria pollutant emissions, improve health outcomes, reduce energy bills for consumers, and create jobs and economic growth in the Commonwealth.” stated Paola Tamayo, Policy Analyst at Acadia Center and co-author of the organization’s RGGI Third Program Review Report. “Participating RGGI states have seen their economies grow faster than states that do not limit climate pollution and proceeds from RGGI have enabled these states to invest more than $6.7 billion to help move their states to a healthier clean energy future,” she added.

“If Pennsylvania fails to participate in RGGI moving forward it represents a significant missed opportunity for generating revenue that could be used for critical investments, including upgrades to housing in environmental justice communities, that the state desperately needs.” said Ben Butterworth, Director of Climate, Energy & Equity Analysis at Acadia Center. “If Pennsylvania had participated in RGGI the last several years, the state would have generated nearly $1 billion per year to make investments in their economy that simultaneously address the climate crisis and improve the quality of life for residents.”

A coalition of environmental organizations in Pennsylvania have emphasized the importance of Governor Shapiro appealing in the next 30 days. Failure to appeal the decision would have significant negative consequences for both the state and the region as a whole.

Implications for Pennsylvania:

• Public Health: RGGI reduces carbon pollution from power plants, mitigating the harmful health impacts of air pollution in Pennsylvania’s communities. Governor Shapiro’s appeal can protect the well-being of residents from the devastating health consequences of poor air quality and save hundreds of Pennsylvanian lives. According to Pennsylvania’s Department of Environmental Protection (DEP), RGGI would prevent 639 premature deaths from respiratory illnesses, reduce hospital visits by 30,000 and deliver over $6 billion in public health benefits.
• Economic Prosperity: By staying in RGGI, Pennsylvania can reap substantial economic benefits, including program payments totaling approximately $1 billion annually, which could be directly invested in projects that benefit Pennsylvanians. This funding would promote job creation, stimulate the state’s economy and benefit both public health and environmental justice communities. Additionally, the public health improvements from reductions in criteria air pollution as a result of RGGI participation would result in 83,000 avoided lost workdays according to analysis by DEP.
• Environmental Stewardship: Remaining a part of RGGI would bolster Pennsylvania’s commitment to environmental sustainability. It enables the state to reduce its carbon emissions, limit climate impacts, and protect the environment for future generations. According to DEP, RGGI could help Pennsylvania avoid between 97 and 225 million tons of carbon pollution by 2030.

Implications for the Region:

• Collective Emission Reductions: Pennsylvania’s involvement would reduce greenhouse gas emissions and improve air quality throughout the region. An exit from the program would undermine the collective effort to combat climate change in the Northeast and Mid-Atlantic region.
• Strengthening the RGGI Coalition: If both Pennsylvania and Virginia had participated in RGGI auctions in 2022, Pennsylvania alone would have represented 44% of total regional power sector emissions covered under the RGGI program. Given the sheer amount of power sector emissions coming from Pennsylvania, the importance of keeping the state in RGGI to bolster the strength of the overall coalition cannot be understated.

Governor Shapiro’s appeal would demonstrate a commitment to protecting Pennsylvania’s climate, public health, and economic future, especially considering that there is no alternative program waiting on his desk. By appealing, he has the opportunity to champion clean energy and job creation for the state. Governor Shapiro can be a beacon for a cleaner, greener future by appealing this decision and solidifying Pennsylvania’s dedication to RGGI.

Media Contacts:

Ben Butterworth, Director: Climate, Energy, and Equity Analysis
bbutterworth@acadiacenter.org, 617-742-0054 x111

Paola Moncada Tamayo, Policy Analyst
ptamayo@acadiacenter.org, 860-246-7121 x204

RGGI 61st Auction, 2023 in Review and the Consequence for Climate and Clean Energy Transition

BOSTON, MA- On Wednesday, September 6^th, the eleven states participating in the Regional Greenhouse Gas Initiative (RGGI) released the results of the 61^st auction for 2023. Emissions allowances were sold for $13.85 each, generating $303 million for clean energy investments in participating states. The allowance price for the RGGI program is the highest in 2023 and remains above the historical average. The Cost Containment Reserve (“CCR”) Trigger Price of $14.88 per ton of CO₂ was avoided, so no CCR allowances were sold in the auction. Both the proceeds from sales of allowances and the clearing price for this 61^st auction ranked among the top five highest in the history of RGGI.

Higher RGGI allowance price is good for climate, clean energy investment

The clearing price represents the price that power plant operators must pay for each ton of CO₂ emitted by their fossil-fuel-fired plants. The auction clearing price of $13.85 represents a 9% increase from the previous auction in June, and, in total, the average 2023 auction price is 3% lower than the average 2022 auction price. Having higher allowance prices seen in 2022 and 2023 means that the RGGI program is sending a stronger incentive to produce electricity from carbon-free sources, like wind and solar. Recent auctions have demonstrated the growing significance of the CCR – the auctions in 2022 and 2023 have all narrowly avoided the CCR trigger price, while the 54^th auction in December 2021 represented the first time since 2015 that additional allowances were released because of triggering the CCR.

Since the program launched, the vast majority of RGGI proceeds have been invested in energy efficiency and clean energy projects, as detailed in the most recent report on RGGI investments in 2021, released in June of this year. The $303 million in proceeds generated in this auction brings the annual to-date total to $6.1 billion, already 71.5% of the previous year’s record-setting total proceeds, with one more remaining auction in 2023, showing that auction proceeds have been trending upward in recent years. For example, the auction proceeds in 2023 so far are 22% higher than the total proceeds generated in all 2019 and 2020 auctions combined. This is great news for climate action, the economy, and the growing energy efficiency and clean energy workforce.

RGGI Third Program Review Offers an Opportunity to Direct Proceeds Towards Clean Energy Investments that Directly Benefit Environmental Justice Communities

Since its establishment, RGGI’s priorities have centered around reducing pollution from fossil fuel power plants and achieving climate solutions for RGGI states. Every five years or so, RGGI undergoes a program review, giving the participating states the opportunity to consider the program’s performance and make various changes, including the equitable disbursement of the program’s proceeds. RGGI’s Third Program Review is happening now. On Tuesday, September 26, 2023, as part of the Third Program Review, the RGGI states are holding a public meeting to discuss and seek feedback on different aspects of the program. After this meeting, RGGI Inc. will be soliciting written comments.

As discussed in more detail in Acadia Center’s most recent RGGI Report, the Third Program review offers an excellent opportunity to ensure that environmental justice communities are heard and are actively involved in the development of strategies to ensure a smooth, equitable transition to a carbon-free economy. This ongoing program review provides a chance for states to consider the recent auctions, the history of investments across the states, the need to address environmental justice communities directly, and other mechanisms associated with the cap-and-invest program.

Acadia Center remains closely involved in RGGI policy conversations across the RGGI states and will continue to advocate for program reforms that drive equitable investment and climate action.

Media Contacts:

Ben Butterworth, Director: Climate, Energy, and Equity Analysis
bbutterworth@acadiacenter.org, 617-742-0054 x111

Paola Moncada Tamayo, Policy Analyst
ptamayo@acadiacenter.org, 860-246-7121 x204

Acadia Center Releases Third RGGI Program Review Report

Acadia Center RGGI Report Press Release

Today Acadia Center released its third RGGI Review report, which analyzed the programs impacts to date and offers recommendations for adjusting RGGI in coming years. Acadia Center’s analysis found that the nine states which have consistently participated in RGGI have experienced a more rapid increase in GDP per capita and a more rapid decline in power sector CO2 emissions and retail electricity prices than other states. RGGI has significantly contributed to state efforts to reduce climate pollution and benefit consumers. However, the report recommends RGGI address the impacts of power plant pollution on local communities, as these communities are disproportionately impacted by NOx emissions which have detrimental health impacts.

RGGI states will be providing public comment and listening opportunities in the coming months. Acadia Center will be offering a webinar on April 11, 2023, at noon (EST) to provide information from our RGGI Report that can be used in commenting to RGGI states in the public processes they will be starting soon. If you would like to register for this webinar, please do so here.

Media Contact:
Amy Boyd

Vice President, Climate and Clean Energy Policy

617-742-0054 x102; 940-367-4992 cell

Rhode Island Energy Policy Simulator Publicly Released

Rhode Island Energy Policy Simulator (EPS) is a free, open-source, peer-reviewed model created by Energy Innovation LLC and RMI. The EPS allows users to estimate climate and energy policy impacts through 2050 on emissions, the economy, jobs, and public health using publicly available data. Acadia Center, in collaboration with the Rhode Island Department of Environmental Management, developed a customized scenario using the Rhode Island EPS. The results of this customized scenario were included in the Rhode Island 2022 Climate Update with the goal of providing a high-level decarbonization analysis based on a select subset of key actions identified in the plan.

Rhode Island Energy Policy Simulator

For more information:

Ben Butterworth, Director of Climate, Energy, and Equity Analysis, bbutterworth@acadiacenter.org, 617-742-0054  ext. 111