Report Finds DEEP’s “Lead by Example” Energy Efficiency Program for State Buildings Not on Track to Meet Mandatory Energy Savings Target
Hartford, CT — Today Acadia Center released a report showing that Connecticut’s “Lead by Example” (LBE) energy efficiency program does not appear to be on track to reach its mandatory goal of a 20% reduction in energy use in state buildings by 2018. The General Assembly established the LBE program in 2011 to reduce costly energy waste in state buildings, lower the state’s significant operating expense for energy use, and make the state a model for energy efficiency and sustainability. The report finds that mandatory annual reporting for the LBE plan originally filed in 2012 has not been submitted by the Department of Energy and Environmental Protection (DEEP), as required by law. This apparent failure to report severely hampers any attempt to review and evaluate the effectiveness of the LBE program’s performance.
“As we approach the release of the state’s next Comprehensive Energy Strategy, we thought it would be important to review the state’s progress in key clean energy areas and see if our findings could help inform and improve the next strategy document,” said Bill Dornbos, Connecticut Director and Senior Attorney for Acadia Center. “Not only did we find that DEEP’s “Lead by Example” program for energy efficiency in state buildings has not progressed as intended, but we also discovered that there has been no public reporting about this crucial program for the last four years, even though Connecticut law requires it. After searching the records maintained by the General Assembly and the State Library, we turned up no reporting on the LBE program beyond the initial plan filed in mid-2012.”
“We are releasing our report today because we want this LBE program to be a success,” Dornbos continued. “We need the multi-million-dollar cost savings for our budget-constrained state agencies and the taxpayers that ultimately pay for them, we need the major reductions in energy use to help with the state’s challenge of bringing down greenhouse gas emissions as quickly as possible, and we need the state to show that it can deliver on an important energy program when it matters. We urge the General Assembly to revisit the “Lead by Example” program and conduct a thorough, independent review to determine how it can be put back on track.”
State buildings present an enormous opportunity to reduce wasteful energy use, lower energy costs for state agencies, and help trim the state’s budget deficits. One estimate for total annual energy consumption in state buildings placed it at 4.1 trillion BTUs — roughly the total annual energy use of residential housing in Hartford and Waterbury combined. The total energy cost is also significant, estimated to be as high as $200 million annually, making it one of the state’s largest operating expenses.
The magnitude of the efficiency opportunity in Connecticut’s state buildings is unclear — an assessment of the potential for energy savings in state buildings has not been performed — but it would likely be cost-effective to reduce energy use in this sector by at least 20 to 30% overall. Energy savings of that size could result in approximately $40 to 60 million in annual savings on energy costs for state agencies. Current LBE program performance does not appear to be reaching these levels.
Acadia Center’s report on the status of LBE implementation in state buildings in Connecticut is available here.
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Acadia Center is a non-profit, research, and advocacy organization committed to advancing the clean energy future. Acadia Center is at the forefront of efforts to build clean, low-carbon, and consumer-friendly economies. Acadia Center provides accurate and reliable information and offers a real-world and comprehensive approach to problem solving through innovation and collaboration.
Massachusetts DPU Protects Clean Energy and Consumer Control in Electricity Rate Case Ruling
BOSTON — Friday afternoon, the Massachusetts Department of Public Utilities (DPU) issued a decision in the National Grid electricity rate case, D.P.U. 15-155. In the decision, the DPU denied a number of utility proposals that would have reduced customer control of energy bills, discouraged investment in energy efficiency, arbitrarily penalized clean local energy production, and restricted access to community distributed generation. Further information on these proposals may be found here.
Peter Shattuck, Acadia Center’s Massachusetts Director, said, “We are encouraged that the DPU rejected National Grid’s rate design proposals that would have unfairly impacted residential ratepayers and set back our clean energy future. The DPU agreed with Acadia Center’s case that tiered customer charges would not be efficient or understandable and that the proposed access fees were not based on sound analysis. This decision also granted a significant overall revenue increase to National Grid, which emphasizes that we should be finding new ways to lower costs and avoid expensive new infrastructure investments.”
Acadia Center intervened in this proceeding, participated in discovery, filed expert testimony, and submitted briefs on a number of key electricity rate design issues.
Dr. Abigail Anthony, Acadia Center’s Director of Grid Modernization and Utility Reform and expert witness in this proceeding, said, “As a party in this docket, Acadia Center consistently advanced a long-term vision for regulatory reforms that promotes clean energy while addressing legitimate consumer concerns.”
A number of other states in the region, including Connecticut, Rhode Island, New Hampshire, and New York, are engaging in efforts to proactively identify the new regulatory processes and analyses needed to support a consumer-friendly, clean energy future. Acadia Center urges the Massachusetts DPU to take further steps to do the same.
Mark LeBel, Staff Attorney at Acadia Center, said, “Reforms to electricity rate design must strike a careful balance between economic efficiency, equity for all customers, protection of low-income ratepayers, and access to community distributed generation. Acadia Center is actively working on all of these issues and looks forward to working with other stakeholders to bring together broadly acceptable solutions.”
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Acadia Center is a non-profit, research, and advocacy organization committed to advancing the clean energy future. Acadia Center is at the forefront of efforts to build clean, low-carbon, and consumer-friendly economies. Acadia Center provides accurate and reliable information and offers a real-world and comprehensive approach to problem solving through innovation and collaboration.
Acadia Center Applauds Rhode Island as State Continues to Lead on Energy Efficiency
PROVIDENCE — Rhode Island has taken first place in the utility-sector energy efficiency programs and policy category of the 2016 State Energy Efficiency Scorecard, released Tuesday by the American Council for an Energy-Efficient Economy (ACEEE), a national nonpartisan organization. In energy efficiency overall, Rhode Island ranks fourth behind Massachusetts and California (tied for #1), and Vermont (#3). This is the fourth year that Rhode Island has ranked in the top five states.
Rhode Island’s Least Cost Procurement law is primarily responsible for the state’s continued leadership on energy efficiency. First implemented 9 years ago and extended for another 5 years last summer, the policy states that distribution companies cannot acquire new electric or natural gas supply until “all-cost effective” energy efficiency measures have been exhausted.
“By investing in low-cost energy efficiency instead of expensive electricity and natural gas, Rhode Island lowers energy bills and spurs economic growth,” said Daniel Sosland, President of Acadia Center. “Thus the whole state benefits when Rhode Island leads on energy efficiency,” said Sosland
“Rhode Island has learned that energy efficiency is critical for growing our economy and putting Rhode Islanders to work,” said Abigail Anthony, Rhode Island Director with Acadia Center. “Energy efficiency reduces the cost of doing business in Rhode Island, and when residents spend less money on energy, they have more left in their paycheck to spend locally on other things.”
Rhode Island’s energy efficiency investment since 2008 will create 23,764 job-years of employment economy-wide and add $2.67 billion to Gross State Product. In 2015, 1,009 companies and 696 full-time equivalent jobs were directly involved with the state’s energy efficiency programs, with 79% of those companies located in Rhode Island.
Since 2008, Rhode Island has invested over $558 million in energy efficiency and consumers have realized $1.99 billion in economic benefits. In its 2016 Energy Efficiency Plan, National Grid proposed investing over $83 million in cost-effective efficiency programs to deliver electric savings that are 47% less expensive than the cost of supply, and natural gas savings that are 15% less than the cost of supply. The investments in 2016 will generate more than $256.1 million in direct benefits over the life of the efficiency measures, and add over $386.9 million to Rhode Island’s Gross State Product (GSP) and 4,220 job-years of employment. Acadia Center is currently developing the 2017 Energy Efficiency Plan along with key stakeholders including National Grid, the Office of Energy Resources, the Division of Public Utilities and Carriers, Emerald Cities, People’s Power & Light, and The Energy Council of Rhode Island.
Acadia Center is a member of the Energy Efficiency Resource Management Council (EERMC), the stakeholder council charged with assisting with the development, implementation, and review of energy efficiency programs in Rhode Island. The EERMC is critical to the success of energy efficiency in the states, and Acadia Center looks forward to working with fellow members, utilities and other stakeholders to make sure that the plans are implemented effectively to deliver cost savings through lower utility bills, emissions reductions, and clean energy job growth, in addition to broader economic benefits.
See the Scorecard at: http://aceee.org/state-policy/scorecard
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Acadia Center is a non-profit, research and advocacy organization committed to advancing the clean energy future. Acadia Center is at the forefront of efforts to build clean, low-carbon and consumer-friendly economies. Acadia Center provides accurate and reliable information, and offers a real-world and comprehensive approach to problem solving through innovation and collaboration.
Massachusetts and California Share Top Energy Efficiency Ranking
BOSTON — The American Council for an Energy-Efficient Economy (ACEEE), a national nonpartisan organization, released its 2016 State Energy Efficiency Scorecard yesterday, with Massachusetts maintaining its #1 ranking for the sixth year in a row, but now sharing the podium with California. Last year, only a half point separated the states’ rankings.
In achieving its highest score to date, Massachusetts’ score increased a point due to adopting the most recent IECC 2015 and ASHRAE 90.1-2013 as part of the state building code. These new standards will reduce the cost of energy for new homes and businesses in the state. Massachusetts could earn a perfect score in the category of utility programs and policies, the largest category in the ACEEE scorecard, with deeper savings in its natural gas programs.
“Progress in investing in energy efficiency raises all boats—consumers in Massachusetts, California and all the leading states are the real winners here,” said Daniel Sosland, Acadia Center’s President. “Maximizing efficiency is a major step toward securing a clean and affordable energy future. Massachusetts, Rhode Island and other leaders are showing that it really works to deploy least-cost, non-polluting measures to benefit the environment, the economy and consumers,” said Sosland.
Massachusetts has proven its continued commitment to energy efficiency under its Green Communities Act of 2008 by saving a large and growing percentage of energy every year through efficiency measures, and delivering over $14.8 billion in economic benefits and energy savings for ratepayers over the last six years. Massachusetts’ current 3-year plan (2016-2018) is expected to deliver $8.1 billion in economic benefits and energy savings, and sets savings goals (2.93% of sales for electric and 1.24% of sales for natural gas) that are the highest in the nation, yet again. The environmental benefits the 3-year plan will deliver are equivalent to removing approximately 408,000 cars from the road.
California’s rise to the top is a sign that other states are rapidly ramping up their investments in low-cost energy efficiency, and helping consumers lower their energy bills and spur economic growth. One area where Massachusetts risks falling behind the rest of the country and losing the top ranking is in the management and public availability of efficiency data. Massachusetts satisfies only one of six standards on which ACEEE intends to score states in the future – for comparison, California satisfied five.
“Massachusetts is on the winning path, but there is still plenty of work to do to make the most of this low-cost, clean resource,” said Amy Boyd, Senior Attorney at Acadia Center. “We should celebrate our success, but then return to the hard work that it takes to accelerate strategies to reach the homes and businesses that still need help lowering their energy costs,” Boyd said. “Making smart use of all the data that new technologies can provide utility companies will reduce costs, make processes more transparent, and keep us on track to stay on top of the ACEEE rankings,” Boyd concluded.
Acadia Center is a member of the Energy Efficiency Advisory Council, a stakeholder board that has statutory responsibility for advising and assisting the state’s utilities in developing and implementing cost-effective energy efficiency plans for electricity and natural gas. Acadia Center looks forward to working with fellow members, utilities and other stakeholders to make sure that the efficiency plans for Massachusetts are implemented effectively to deliver cost savings through lower utility bills, emissions reductions, and clean energy job growth, in addition to broader economic benefits.
See the Scorecard at: http://www.aceee.org/state-policy/scorecard
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Acadia Center is a non-profit, research, and advocacy organization committed to advancing the clean energy future. Acadia Center is at the forefront of efforts to build clean, low-carbon, and consumer-friendly economies. Acadia Center provides accurate and reliable information and offers a real-world and comprehensive approach to problem solving through innovation and collaboration.
Environmental Groups: Con Ed Rate Case Settlement Proposal’s Advancement of Energy Efficiency Programs Will Help Meet Clean Energy Standard Targets
ALBANY, NY – New energy efficiency programs in a Joint Settlement Proposal filed today on Consolidated Edison Company of New York’s electric rates for 2017 to 2019 will help meet the state’s greenhouse gas emissions reduction goals and Clean Energy Standard renewables targets, according to environmental and energy efficiency groups participating in the proposed agreement with the utility, city, and state.
The Joint Settlement Proposal would commit the utility to $99 million in new energy efficiency programs over the next three years, providing customer energy bill savings while reducing emissions of carbon dioxide and other dangerous pollutants emitted by power plants.
The Department of Public Service staff filed the proposed settlement today with the New York Public Service Commission for review and potential approval. The Natural Resources Defense Council, the Pace Energy and Climate Center, Acadia Center and the Association for Energy Affordability said the proposed efficiency programs are anticipated to yield more than 300 gigawatt-hours (GWh) of savings annually by 2019, and would continue to save customers that much each year for many years beyond that. A System Peak Reduction Program would add an additional 22 GWh of efficiency per year by the same date, while providing 49 megawatts of system peak reduction, which means fewer of Con Edison’s dirtiest, most expensive peaking power plants will be needed to serve Con Edison’s 3.3 million customers on the highest demand days of the year.
“By 2019, Con Edison’s new energy efficiency programs are expected to annually save the same amount of electricity that’s used by more than 70,000 typical New York City residential customers,” said Miles Farmer of the Natural Resources Defense Council. “That’s significant. The Public Service Commission should approve these programs and build upon that progress with more aggressive energy efficiency targets and initiatives in the near future.”
The Public Service Commission is expected this week to consider the procedural schedule for reviewing the Joint Settlement Proposal. Signatories include Department of Public Service staff, Con Edison, the Pace Energy and Climate Center, the City of New York, and various other environmental and consumer groups.
“By assisting customers to use energy more effectively, ConEd’s proposed programs would bring New York one step closer to achieving its requirement to use 50% renewables by 2030,” said Acadia Center President Dan Sosland. “Energy efficiency is far less expensive than building and operating fossil fuel power plants, and less risky, which means New Yorkers will benefit from this transition to a clean energy future.”
A study released by Synapse Energy Economics Inc. in April concluded that implementing aggressive energy efficiency targets and funding them appropriately holds the potential to reduce total costs to New York State’s electricity customers by roughly $3 billion.
Much more work remains to be done to pull New York up to speed with its neighbors in the Northeast. While the proposed Energy Efficiency and System Peak Reduction Programs are projected to help Con Edison more than double its energy efficiency performance over the level previously committed to (about 0.3% of load in efficiency gains per year), its total achievement will still be far short of the 2% to 3% in efficiency gains being made by utilities in states like Massachusetts and Rhode Island.
Radina Valova, a Pace Energy and Climate Center Staff Attorney, noted, “The programs will secure energy efficiency in a way that makes the grid itself more cost-effective by responding to locational needs, bundling offerings through Distributed Energy Resource providers, and leveraging market-based approaches. Clean energy advocacy groups like ours support this broad focus on energy efficiency opportunities because it allows the utility to promote the most cost-effective and market-friendly savings opportunities.”
“This settlement proposal ensures Con Edison’s ability and commitment to leverage bigger and better ideas and technologies in pursuit of a broad range of advanced energy efficiency opportunities, working with third parties and interested consumers. This approach is an important step for Con Edison and a strong precedent for other utilities to help New York to meet its clean energy goals,” said David Hepinstall of the Association for Energy Affordability, Inc.
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Released jointly by Acadia Center, Association for Energy Affordability, Inc., National Resources Defense Council, and Pace Energy and Climate Center
Low RGGI Auction Prices Suggest Need for Greater Ambition
BOSTON — The results of today’s Regional Greenhouse Gas Initiative auction indicate that participating states have ample room to strengthen the program. Low emissions prices reflect the continuing decline of regional emissions and a growing oversupply of allowances. Without measures to significantly strengthen RGGI, the oversupply of allowances is likely to increase following recent commitments to foster zero-carbon energy. As detailed in our recent report, new commitments to clean energy in Massachusetts, Rhode Island, and Connecticut will reduce emissions by 45 million tons from 2020 to 2030, and New York has signaled support for the continued operation of existing nuclear facilities.
In the latest auction all 14,911,315 available allowances were sold at a clearing price of $4.54, which is nearly identical to the the previous auction ($4.53) and 25% lower than the clearing price from one year ago. The RGGI states raised $67,697,370 dollars from Auction 33, and have now raised $2.58 billion for reinvestment since the program began, the majority of which has been used to fund energy efficiency and other consumer benefit programs. Auction 33 coincides with the final stretch of the 2016 Program Review. As the RGGI states work to reach consensus on program reforms, the results of this auction and recent market trends should help to inform the decision-making process.
“RGGI emissions through the first half of 2016 were the lowest they have been in the program’s history, and annual emissions have been below the RGGI cap level in each of the program’s seven years to date,” said Acadia Center President, Daniel Sosland. “This shows that emissions are falling quickly and even more cost-effectively than expected and provides the foundation on which RGGI states can feel confident going forward to set more ambitious emission targets.”
Given the low volume of trades that have taken place since the previous auction and the relatively modest change in prices, Auction 33 may be viewed as an inflection point, as many market participants are waiting to see what the RGGI states do next in the Program Review. If the RGGI states announce measures that will result in greater stringency, such as an annual 5% cap decline, adjustment for banked allowances and cost containment reserve (CCR) reform, the RGGI market will likely recover. On the other hand, failing to commit to a future allowance adjustment, leaving the CCR unchanged, and establishing a less ambitious post-2020 cap would signal a long-term oversupply.
“The RGGI states showed great foresight during the previous Program Review by dramatically reducing the cap and adjusting for banked allowances,” said Peter Shattuck, Director of Acadia Center’s Clean Energy Initiative. “Now, four years later, continued emissions declines necessitate similar measures. Establishing ambitious cap levels and committing to future allowance adjustment will help propel the region’s clean energy transition.”
“An oversupplied market and low RGGI prices limited the program’s impact in its early years,” said Jordan Stutt, Policy Analyst with Acadia Center. “Failing to strengthen RGGI through the Program Review could result in similarly low prices, depriving the region of funding for clean energy programs and sending inadequate market signals to clean up the region’s power sector.”
Information on the 2016 RGGI Program Review, including meeting materials and stakeholder comments, can be found at: http://www.rggi.org/design/2016-program-review
Additional information on RGGI’s performance to date and needed reforms through the 2016 Program Review are described in Acadia Center’s recent RGGI Status Report:
- Part I: Measuring Success
- Part II: Achieving Climate Commitments
RGGI Overview:
The Regional Greenhouse Gas Initiative (RGGI) is the first mandatory, market-based effort in the United States to reduce greenhouse gas emissions. Nine northeastern and mid-Atlantic states reduce CO2 emissions by setting an overall limit on emissions “allowances,” which permit power plants to dispose of CO2 in the atmosphere. States sell allowances through auctions and invest proceeds in consumer benefit programs: energy efficiency, renewable energy, and other programs.
The official RGGI web site is: www.rggi.org
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Acadia Center is a non-profit, research, and advocacy organization committed to advancing the clean energy future. Acadia Center is at the forefront of efforts to build clean, low-carbon, and consumer-friendly economies. Acadia Center provides accurate and reliable information and offers a real-world and comprehensive approach to problem solving through innovation and collaboration.
Achieving Climate Commitments: Strengthening RGGI to Achieve State and Federal Requirements
BOSTON — Part II of Acadia Center’s status report on the Regional Greenhouse Gas Initiative (RGGI), Achieving Climate Commitments, describes reforms that northeast and mid-Atlantic States need to implement during the 2016 Program Review to achieve state and federal greenhouse gas reduction requirements, including:
- Aligning the emissions cap with states’ GHG reduction requirements and extending the cap to 2031.
- Adjusting for banked allowances to preserve RGGI’s effectiveness.
- Strengthening the Cost Containment Reserve to prevent inflation of the RGGI cap.
“RGGI continues to prove itself as an effective means of reducing carbon emissions and supporting economic growth. Now, northeast and mid-Atlantic states have an opportunity to build on RGGI’s success and lead the country by taking the steps necessary to meet state and federal climate requirements,” said Daniel L. Sosland, Acadia Center President.
Each of the RGGI states has committed to reducing emissions by approximately 40% across their economies by 2030, and eight of the nine participating states have established 2050 requirements for 80% reductions. By reducing emissions in the electric sector — and reducing emissions associated with electricity use in transportation and heating — RGGI will play a central role in achieving state requirements.
“RGGI is one of the most effective tools for states to reduce climate pollution,” said Peter Shattuck, Director of Acadia Center’s Clean Energy Initiative. “RGGI can and should play a central role in achieving commitments states have made to address climate change.”
Reforms to RGGI are also being considered in the context of the Obama Administration’s Clean Power Plan, the first-ever national limits on carbon pollution from existing power plants.
“As other states develop initial plans to meet the base requirements of the Clean Power Plan, RGGI states can be climate leaders and go above and beyond minimum federal requirements,” said Jordan Stutt, Policy Analyst at Acadia Center and lead author of the report.
The report builds on Regional Greenhouse Gas Initiative Status Report, Part I: Measuring Success which describes RGGI’s accomplishments since RGGI’s launch, including: 37% emissions reductions and a 3.6% decline in region-wide electricity prices. 16% more emissions reductions and 3.6% more economic growth than other states.
For more information on Part I of the RGGI Status Report, Measuring Success see: acadiacenter.org/document/measuring-rggi-success
For more information on Part II of the RGGI Status Report, Achieving Climate Commitments see: acadiacenter.org/document/rggi-achieving-climate-commitments
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Acadia Center is a non-profit, research, and advocacy organization committed to advancing the clean energy future. Acadia Center is at the forefront of efforts to build clean, low-carbon, and consumer friendly economies. Acadia Center provides accurate and reliable information and offers a real-world and comprehensive approach to problem solving through innovation and collaboration.
New Hampshire Approves Energy Efficiency Targets
CONCORD, N.H. — Yesterday, New Hampshire took an historic step towards reducing energy costs for its citizens. The Public Utilities Commission approved the Settlement Agreement between utilities and other stakeholders, including Acadia Center, outlining an Energy Efficiency Resource Standard (EERS) for the state. For the first time, specific savings targets have been set at a state level, and a long-term goal of attaining all cost effective energy efficiency has been approved.
Until now, New Hampshire has been the only state in the region without statewide targets. While the state’s CORE efficiency programs, run by the utilities, have been successful in reducing energy use, the state has missed out on millions of dollars in energy savings, which more robust programs could have delivered. As the Commission itself states in the order, “The EERS is a significant step toward addressing the business community’s concerns about remaining competitive in today’s economy.”
For the first three-year period, the EERS sets targets of 0.8% for electric and 0.7% for gas in 2018; an additional 1% for electric and 0.75% for gas in 2019; and an additional 1.3% for electric and 0.8% for gas in 2020. The three years of efficiency will provide cumulative savings of 3.1% of electric sales and 2.25% of gas sales, relative to the baseline year of 2014, by the end of 2020.
It also expands the role of the state Energy Efficiency and Sustainable Energy Board, with additional funding and the support of outside experts, to serve in an advisory role in the design, implementation, and evaluation of efficiency programs. Such stakeholder boards have been effective in other states in establishing a more efficient and less adversarial process, improving program design and delivery, and increasing stakeholder buy-in.
“We applaud the Commission for recognizing the extensive analysis and collaboration undertaken by the diverse group of utilities, environmental groups, business groups, low-income advocates, and others over the past year to come up with a plan to steer New Hampshire toward a more efficient energy future” said Ellen Hawes, Senior Policy Analyst with Acadia Center. The establishment of an EERS reflects that energy efficiency has a wide range of benefits for customers, including lowering utility bills, improving public health and comfort, offering more customer control over energy use, creating new jobs, and reducing pollution.
Acadia Center congratulates the Commission for this important step.
Contact:
Ellen Hawes, Senior Analyst, Energy Systems and Carbon Markets
802-649-1140, ehawes@acadiacenter.org
Jamie Howland, Director, Energy Efficiency and Demand Side Initiative
860-246-7121, x201, jhowland@acadiacenter.org
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Acadia Center is a non-profit, research, and advocacy organization committed to advancing the clean energy future. Acadia Center is at the forefront of efforts to build clean, low-carbon, and consumer-friendly economies. Acadia Center provides accurate and reliable information and offers a comprehensive, real-world approach to problem solving through innovation and collaboration.
Clean Energy Leaders Congratulate Massachusetts Legislature and Urge Governor to Sign Major Energy Bill
Environmental and Business Organizations Agree on Benefits
BOSTON — Leaders of the Alliance for Clean Energy Solutions (ACES), a coalition of business groups, clean energy companies, environmental organizations, health and consumer representatives dedicated to advancing clean energy for Massachusetts, applauded the Massachusetts Legislature for passing An Act to Promote Energy Diversity this weekend and call upon Governor Charlie Baker to sign the comprehensive energy legislation into law to ensure Massachusetts remains on its path towards a clean energy future.
“This bill is a huge step on the path to a clean energy future,” said Peter Shattuck, Massachusetts Director of Acadia Center and co-leader of ACES. “The legislation solidifies the Commonwealth’s leadership in reducing carbon pollution and will help reduce our growing over-reliance on natural gas.”
“The Massachusetts Legislature has passed a bill that will not only accelerate the deployment of clean energy, but will also serve to accelerate our economy by providing a stable policy framework for investors and developers of clean energy,” said NECEC Executive Vice President Janet Gail Besser, co-leader of ACES. “We commend the Legislature for including Class 1 eligible renewable energy resources, offshore wind, energy storage, fuel cells, commercial clean energy financing, and other key policies that will make Massachusetts’ energy more cost-competitive, reliable, and clean for future generations.”
Over the last year, Alliance members worked to promote policies to enable the Commonwealth to achieve its climate commitments while protecting consumers and the environment, and many of these priorities were reflected in the final bill:
Large-Scale Clean Energy Procurements — procurements of 9.45 terawatt hours of Renewable Portfolio (RPS)-eligible resources (such as onshore wind) and hydroelectricity, which will facilitate costeffective achievement of the RPS, replace retiring generation, reduce greenhouse gas emissions, and diversify our electricity supply.
Pairing of Wind and Hydroelectricity — support for bundled procurements of RPS-eligible resources (such as onshore wind) and hydropower in order to drive in-region development and maximize efficient use of transmission for clean energy.
Offshore Wind — phased procurement of 1600 megawatts of offshore wind in order to tap Massachusetts’ world-class offshore wind resource and develop a sustainable industry in Massachusetts.
Energy Procurement Standards and Criteria — provisions to ensure competitive procurement of cost-effective clean energy resources through a process that protects against self-dealing, ensures reliability, price stability, affordability for all income levels.
Energy Storage — authorization for the Department of Energy Resources to develop procurement targets and incentives for utilities, households, and businesses to deploy cost-effective energy storage technology that integrates renewable energy sources and improves the operation of the grid.
Property Assessed Clean Energy (CPACE) — expansion of energy efficiency and clean energy financing options for commercial customers by leveraging private funds, while ensuring consumer protections and aligning with existing energy efficiency objectives.
Distributed Energy Resources — support for small hydropower and fuel cells will contribute to the diversity of the Commonwealth’s electricity supply and economic development.
ACES sought additional provisions which were not included in the final bill, including increasing the Renewable Portfolio Standard, provisions to avoid, minimize, and mitigate environmental impacts of energy projects, prohibiting gas pipeline subsidies, creation of oil heat energy efficiency programs, measures to increase electric vehicle uptake, and Community Empowerment. However, the final bill represents a strong commitment to clean energy leadership, and ACES encourages Governor Charlie Baker to ensure Massachusetts’ place as a clean energy leader by signing the bill and implementing the sound provisions it includes.
Contacts:
Krysia Wazny, Acadia Center
617-742-0054 x107, kwazny@acadiacenter.org
Kate Plourd Johnson, NECEC
617-500-9933, kjohnson@necec.org
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About ACES: The Alliance for Clean Energy Solutions (ACES) is a “coalition of coalitions” comprised of business groups, clean energy companies, environmental organizations, labor, health, and consumer advocates dedicated to advancing clean energy for Massachusetts. ACES is committed to ensuring that those charged with shaping Massachusetts’ energy policies have the most rigorous, current data on the benefits and costs of clean energy. Our goal is to ensure that the Commonwealth can attain a cost-effective, reliable and diverse energy supply to power its businesses, communities and households, which will reduce our reliance on fossil fuels, create a stable and prosperous business environment and meet the Commonwealth’s greenhouse gas emissions requirements. For more information: acesma.org
Members Include: Acadia Center, Alliance for Business Leadership, Climate Action Business Association, Clean Water Action, E4theFuture, Energy Storage Association, Environment Massachusetts, Environmental Entrepreneurs, Environmental League of Massachusetts, Health Care Without Harm, Mass Audubon, Mass Energy Consumers Alliance, Northeast Clean Energy Council, Northeast Energy Efficiency Council, RENEW Northeast, Solar Energy Business Association of New England, Union of Concerned Scientists, US Green Building Council Massachusetts Chapter, Vote Solar.
RGGI’s Success Continues: Region Outpacing the Rest of the Country on Emissions and Economics
BOSTON — A new report from Acadia Center shows that the Northeast and Mid-Atlantic States’ Regional Greenhouse Gas Initiative (RGGI) continues to succeed in driving down emissions, which have declined in each of the last 5 years and are down 37% since the program launched. Over the same time period electricity prices have declined across the region, even as prices in other states have increased, and RGGI states have outpaced other states on both emissions reductions and economic growth. The analysis, Regional Greenhouse Gas Initiative Status Report, Part I: Measuring Success describes key trends and drivers, including that:
- Emissions of CO2 fell 6.3% below the RGGI cap in 2015.
- Electricity prices across the region have decreased by 3.4% on average since RGGI took effect, while electricity prices in other states have increased by 7.2%.
- RGGI states have reduced emissions by 16% more than other states and seen 3.6% more economic growth since RGGI launched.
- Electric sector trends responsible for low emissions — including increasing generation from renewables and natural gas and growing investments in energy efficiency — show no signs of reversing.
- Reforms decided during the 2016 Program Review will determine whether RGGI continues to succeed.
“The experience of the RGGI states shows that we can reduce emissions while benefitting consumers and boosting economic growth,” said Daniel L. Sosland, Acadia Center President.
“States within RGGI have done better since the program’s launch than states that have yet to act,” said Peter Shattuck, Director of Acadia Center’s Clean Energy Initiative. “As more states consider how to reduce climate pollution, RGGI’s precedent is an important example of how market-based programs deliver real benefits.”
Against this backdrop of success to-date, RGGI’s member states are currently working to determine the program’s future course through the 2016 Program Review. The reforms being considered will determine the extent to which states can use the RGGI model to continue to reduce emissions to meet state and federal requirements and address the threat of climate change. “These states have the opportunity to continue their role as national leaders on climate,” said Jordan Stutt, Policy Analyst at Acadia Center. “RGGI is an effective and proven tool to address the increasingly apparent threats of climate change, and experience to date shows that more progress is achievable.”
Part II of RGGI Status Report will focus on key decisions states face in the 2016 Program Review, including RGGI’s level of ambition through 2030 and other changes needed to achieve state-level climate commitments and the requirements of the Environmental Protection Agency’s Clean Power Plan.
For more information, see: acadiacenter.org/document/measuring-rggi-success
Contact:
Krysia Wazny, Communications Associate
617-742-0054 x107, kwazny@acadiacenter.org
Peter Shattuck, Director, Clean Energy Initiative
(617) 742-0054 x103, pshattuck@acadiacenter.org
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Acadia Center is a non-profit, research, and advocacy organization committed to advancing the clean energy future. Acadia Center is at the forefront of efforts to build clean, low-carbon, and consumer-friendly economies. Acadia Center provides accurate and reliable information and offers a comprehensive, real-world approach to problem solving through innovation and collaboration.