Connecticut Leadership Needed in Regional Climate Program
In a letter sent today to Governor Malloy and the Department of Energy and Environmental Protection, environmental, business, consumer, and public health organizations call for strengthening and expansion of the Regional Greenhouse Gas Initiative (RGGI), which Connecticut is currently chairing through a Program Review. The letter notes that RGGI provides an effective and existing mechanism to meet the state’s statutory greenhouse gas (GHG) targets and follow through on the state’s recent commitments to climate leadership.
“Governor Malloy has made strong commitments to address the threats of climate change,” said Daniel Sosland, Acadia Center President. “Strengthening, extending, and expanding RGGI is a clear way to follow through on climate commitments.”
As the Malloy Administration battles raids on RGGI’s clean energy funding, the letter cites some of the benefits that RGGI has provided to-date – $245 million in value added to Connecticut’s economy, more than 2,200 job-years of employment, GHG reductions of 35%, and $13 million in avoided health impacts. “RGGI has had a tremendous impact in Connecticut through the state’s reinvestment of auction proceeds,” said Jamie Howland, Director of Acadia Center’s Energy Efficiency and Demand Side Initiative. “Continued use of RGGI revenue for clean energy investment is the surest path to realizing the thriving, low-carbon economy that Governor Malloy has envisioned for the state.”
In advance of the next Program Review meeting on April 29th, the groups call on Connecticut to lead partner states in pursuing ambitious reforms to the RGGI’s pollution reduction targets. Specifically, the letter calls for evaluation of pollution reductions of up to 5% per year from power plants covered by RGGI, an ambitious yet achievable rate that matches reductions since RGGI launched. “On a day of unprecedented international action on climate change, now is the time to be ambitious,” said Peter Shattuck, Director of Acadia Center’s Clean Energy Initiative. “Connecticut’s leadership will be vital to strengthening RGGI, and RGGI must be a vital part of Connecticut’s approach to addressing climate change.”
Looking beyond the power sector, the letter also commends Connecticut for partnering with other states to explore market-based approaches to reduce transportation sector emissions, which comprise an increasing share of regional climate pollution
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
Contact:
Peter Shattuck, Director, Clean Energy Initiative
pshattuck@acadiacenter.org, (617) 742-0054 x103
Kiernan Dunlop, Communications Associate
kdunlop@acadiacenter.org, (617) 742- 0054 x107
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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.
Budget Raid Would Squander $60 Million in Energy Benefits & Undermine Climate Leadership
Budget proposals from the Connecticut legislature would slash $20m in funding from Connecticut’s clean energy programs, costing the state and consumers approximately $60 million in benefits from energy savings programs. Raiding clean energy and climate programs would threaten Connecticut’s progress to date addressing climate pollution, and undermine the state’s standing with partners in multi-state Regional Greenhouse Gas Initiative (RGGI).
“We are deeply troubled by this shortsighted proposal,” said Jamie Howland, Direct of Acadia Center’s Climate and Energy Analysis Center. “The raid would disadvantage consumers, increase pollution, undermine the state’s leadership on climate, and further erode confidence in the predictability of policy making. It puts at risk Connecticut’s hard-earned credibility as a founding participant in the nation’s first carbon emissions trading program.”
Through Connecticut’s award-winning energy efficiency programs, revenue from RGGI – which Connecticut currently chairs – supports programs that reduce ratepayer energy bills while creating jobs and spurring the economy. In 2015, Energize Connecticut achieved $3.98 in lifetime energy savings for each dollar invested. The General Assembly’s budget proposal would deprive energy efficiency programs of $15 million in 2017, which is what would cost consumers the approximately $60 million mentioned above.
The remaining $5 million of the proposed $20 million raid would be drawn from the Connecticut Green Bank, which provides an important source of funding for Connecticut’s renewable energy industry. Green Bank-funded clean energy programs reduce expenditures for fossil fuels imported to generate power and heat homes, thus making Connecticut more competitive while reducing carbon emissions.
Examples of the types of projects supported by RGGI funding include efficiency upgrades to the Connecticut Children’s Medical Center in Hartford, solar for the John Lyman Elementary School in Middlefield and Bishop’s Corner Library and Senior Center in West Hartford, and incentives for thousands of homeowners and businesses to reduce energy waste.
Acadia Center’s fact sheet on the proposed raid is available here.
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
Contact:
Jamie Howland, Director, Energy Efficiency and Demand Side Initiative
jhowland@acadiacenter.org , (860) 246-7121 x201
Kiernan Dunlop, Communications Associate
kdunlop@acadiacenter.org, (617) 742- 0054 x107
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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.
100 State Representatives Call for Progress on Solar Legislation
BOSTON, MA – Yesterday evening, a bipartisan group of 100 members of the Massachusetts House of Representatives sent a letter to the three House members that have been appointed to the Conference Committee on solar with the Massachusetts Senate. The letter, whose signers include 19 committee chairs as well as several other members in leadership positions, calls for the Conference Committee to report a bill that:
- Maintains a strong net metering policy, particularly for community shared solar, municipalities, and projects that benefit low-income ratepayers and affordable housing;
- Grandfathers existing systems;
- Reduces costs through reforms to the solar renewable energy certificate (SREC) program; and
- Raises the net metering caps.
“Acadia Center would like to thank House members for speaking up in defense of the demonstrated value of solar energy.” said Daniel L. Sosland, Acadia Center President. “We strongly support all of the concepts raised in the letter. In particular, preserving access to solar for communities and all ratepayers is a key part of the clean energy future for Massachusetts.”
In April 2015, Acadia Center issued a study of the value of local solar generation in Massachusetts, finding more than 22 cents per kWh of value for ratepayers through reduced energy and infrastructure costs, lower fuel prices, and lowering the cost of compliance with the Commonwealth’s greenhouse gas requirements. This value is higher than the current retail rate provided through net metering.
Mark LeBel, Staff Attorney at Acadia Center, said: “Acadia Center’s studies and numerous others across the country show that solar provides significant value to ratepayers, major societal benefits, and good local jobs. Any changes to net metering should be based on an official public study of the costs and benefits of solar generation and, until that happens, key project types should be kept at the retail rate. As the legislators rightly note, the place to cut costs is the SREC program. We hope that this petition leads to a prompt result from the Conference Committee that preserves key elements of the Commonwealth’s solar programs and appropriately reduces costs.”
Contact:
Mark LeBel, Staff Attorney
mlebel@acadiacenter.org , (617) 742-0054 x104
Kiernan Dunlop, Communications Associate
kdunlop@acadiacenter.org, (617) 742- 0054 x107
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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.
RGGI Allowance Prices Stabilize as RI Governor is Pushed to Take Lead in Program Review
Member states of the Regional Greenhouse Gas Initiative (RGGI) today announced the results of the 31st quarterly auction of carbon dioxide (CO2) allowances. 14,838,732 allowances were sold at a clearing price of $5.25. This clearing price is 30% lower than the previous auction, and 3% lower than the clearing price from one year ago. The RGGI states raised $77,903,343 million dollars from Auction 31, and have now raised $2.45 billion for reinvestment since the program began, the majority of which has been used to fund energy efficiency and other consumer benefit programs. RGGI has been a successful model for reducing power sector emissions, and with forward-looking improvements through the 2016 Program Review, RGGI will help member states makes progress toward achieving their long-term emissions reduction commitments.
The secondary market for RGGI allowances has seen significant fluctuation in prices since the last auction, which cleared at a record high price of $7.50 per allowance. After prices climbed as high as $8.50, the market quickly fell to $4.00, followed by a steady rise to Wednesday’s clearing price of $5.25. The sudden drop in allowance prices followed the Supreme Court’s stay of the Clean Power Plan, suggesting that there may have been concerns about the stay’s potential impact on the RGGI market. As with all commodities, RGGI allowances will experience volatility, but RGGI’s future as an established emissions reduction policy and effective market are secure, and the results of Auction 31 show a renewed confidence in RGGI’s future.
“Despite the Supreme Court’s decision to issue a stay on the Clean Power Plan, many states are continuing to develop plans for their clean energy futures,” said Acadia Center President, Daniel Sosland. “Through the 2016 Program Review, the RGGI states have an opportunity to continue demonstrating leadership by establishing ambitious cap levels through 2030.”
The results of this latest auction come as RGGI stakeholders gather today in Rhode Island to discuss the state’s climate plans. Rhode Island, like the rest of the RGGI states, has committed to achieving significant, economy-wide emissions reductions by 2030 (35-45% below 1990 levels in Rhode Island). “In order to meet the state’s 2030 goal, Rhode Island will need to achieve major emissions reductions from the electric sector,” said Jordan Stutt, Policy Analyst at Acadia Center. In a letter sent to Governor Raimondo yesterday, Acadia Center and other stakeholders urged Rhode Island to establish the aggressive RGGI cap levels necessary to meet the state’s economy-wide targets most cost effectively.
“The results of Auction 31 are another page in RGGI’s success story,” said Peter Shattuck, Director of Acadia Center’s Clean Energy Initiative. “The region’s electric sector emissions fell yet again in 2015, while RGGI auctions continue to bring in revenue for reinvestment in energy efficiency and renewable energy, creating jobs and accelerating the transition to a clean energy future.”
Additional information on RGGI’s performance to date, and role in EPA’s regulatory process are described in Acadia Center’s July, 2015 report: RGGI: A Model Program for the Power Sector
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
Contact:
Jordan Stutt, Policy Analyst
jstutt@acadiacenter.org, (617) 742-0054 x105
Kiernan Dunlop, Communications Associate
kdunlop@acadiacenter.org, (617) 742- 0054 x107
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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 Energy Efficiency Programs Again Top National Bests for Savings
Boston, MA – Massachusetts’ energy efficiency Program Administrators recently announced remarkable preliminary program results for 2015. In 2015, the programs produced an estimated $3.42 billion in benefits for Massachusetts, delivering $4.70 in benefits for every dollar that the utilities invested in the program and achieving an unprecedented savings level of 3.01% of annual electric sales. This savings level exceeds not only the 2015 goal of 2.60% of annual electric sales, but also the nation-leading ambitious 2016-2018 goals, set at 2.94% of annual electric sales.
2015 is the last year of the 2013-2015 Three Year Efficiency Plan, which itself set top-in-the nation targets for energy efficiency savings. Over the course of the last three years, the Massachusetts efficiency programs have produced $7.79 billion in benefits for customers in Massachusetts, electric savings equivalent to powering 546,239 homes for a year, gas savings equivalent to heating 95,763 homes for a year, and greenhouse gas reductions equivalent to taking 434,900 cars off the road. And they did all this coming in under budget (spending only 98% of the total DPU-approved budget over the three year period).
“Massachusetts is setting an example for the rest of the nation not only by consistently establishing the highest energy efficiency goals in the nation, but by exceeding them. The energy efficiency programs responsible for reaching these goals show the country that it is possible to save consumers money and have a clean and secure energy future,” said Daniel L. Sosland, Acadia Center President.
Building on the widespread growth of the residential efficiency programs in 2014, spurred by increasing adoption of affordable LED lights, home insulation and installation of highly efficient heating equipment, 2015 also delivered significant savings in the commercial and industrial sector – including meeting the statewide goals for annual savings in electricity in this sector for the first time since the efficiency programs began in their current form. This success is attributable in part to high levels of adoption of combined heat and power operations at commercial and industrial facilities, which are some of the most cost-effective energy savings available in Massachusetts.
The programs also bring major benefits to the Commonwealth, beyond the direct savings for those who implement these services in their homes and businesses. This year’s efficiency investments yielded:
- Electric demand savings equivalent to a 222 MW power plant
- 1,473 GWh of annual electric savings (enough to power 187,872 homes for a year)
- 25.9 million therms of annual gas savings (enough to heat over 43,100 homes for a year)
- 446,218 MMBtu of oil saved in 2015
- Annual GHG reductions of 838,000 short tons, which is equivalent to removing over 160,085 cars from the road.
As a member of the Massachusetts Energy Efficiency Advisory Council, Acadia Center looks forward to working with fellow members, program administrators and other stakeholders to make sure that the Commonwealth continues to set and achieve ambitious goals for energy efficiency.
“This level of success in 2015 sets Massachusetts up well to achieve the ambitious goals of the 2016-2018 three year plan,” said Amy Boyd, Acadia Center Senior Attorney who serves on the EEAC, “Massachusetts has a significant opportunity to build on the progress we’ve seen to-date and bring even more benefits for homes and businesses.”
Contact:
Amy Boyd, Senior Attorney
aboyd@acadiacenter.org , (617) 742-0054 x102
Kiernan Dunlop, Communications Associate
kdunlop@acadiacenter.org, (617) 742- 0054 x107
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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 Sets Highest Energy Savings Goals in the Nation
Boston, MA– On Thursday, the Massachusetts DPU approved the 2016-2018 Energy Efficiency Investment Plans, setting the course for the next chapter of the award-winning MassSave energy efficiency programs. The Plans feature goals and strategies for saving energy and reducing bills for Massachusetts homes and businesses. The programs will provide an estimated $8 billion in economic benefits and energy savings over the three year period – on top of $12.5 billion in benefits that the programs have delivered since 2008. The plans also set the highest savings goals in the nation – annual reductions of 2.93% of electric retail sales and 1.24% of natural gas retail sales – even higher than the 2015 savings goals that resulted in Massachusetts being ranked #1 in energy efficiency by the American Council for an Energy Efficient Economy for the 5th year running. These energy savings will deliver environmental benefits equivalent to removing over 410,000 cars from the road.
“Massachusetts’ energy efficiency programs are delivering on their promise to create large energy savings for consumers, and move the Commonwealth toward a clean, affordable and secure energy future,” said Daniel L. Sosland, Acadia Center President. “Efficiency is the best near-term energy strategy for reducing Massachusetts’ residents’ energy bills. Investing in energy efficiency produces immediate bill savings that persist for years to come,” said Sosland.
The DPU’s Order approved National Grid’s plan to enhance efficiency offerings on Nantucket, in the hopes of reducing load growth sufficient to defer construction of a third undersea transmission cable for 7 years – something that they estimate will save ratepayers $2.8 million. The Order also recognized the utilities’ commitment to explore targeting efficiency investments to specific geographic locations that can yield benefits for customers and the electric system. Acadia Center is hopeful that the programs will follow-through on deploying geo-targeted demonstration projects in this three year period, particularly in areas that are subject to gas constraints or those where enhanced efficiency can alleviate congestion on the electric grid or defer the need for transmission and distribution infrastructure investments.
“Energy efficiency is a resource just like energy from Brayton Point, Pilgrim Nuclear, or other centralized power plants” said Acadia Center Senior Attorney, and Energy Efficiency Advisory Council representative, Amy Boyd. “But energy efficiency is much cheaper, cleaner, and lower risk. By approving this plan, the DPU is helping customers save money by using less energy and reducing spending on new infrastructure.”
By investing in as much low-cost energy efficiency as possible, Massachusetts is reducing the cost of doing business in the state and leaving consumers with more money in their pockets. Such consumer savings are often spent right in Massachusetts —where they can support our local markets, our students, our education and health facilities—while payments to fossil fuel providers head immediately out of state. Every dollar invested in cost-effective energy efficiency boosts the Massachusetts Gross State Product an estimated $6.40 and every $1 million invested in energy efficiency generates around 43 job-years of employment.
Contact:
Amy Boyd, Senior Attorney
aboyd@acadiacenter.org , (617) 742-0054 x102
Kiernan Dunlop, Communications Associate
kdunlop@acadiacenter.org, (617) 742- 0054 x107
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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.
RI Public Utilities Commission Votes to Eliminate Energy Waste in 2016
PROVIDENCE, RI – On December 16, 2015 the Rhode Island Public Utilities Commission unanimously approved the 2016 Energy Efficiency Plan for Rhode Island in order to help save consumers money on their utility bills and boost Rhode Island’s economy. This plan was developed collaboratively by key stakeholders representing a wide range of consumer interests, including the Division of Public Utilities and Carriers, the Office of Energy Resources, the Energy Efficiency and Resource Management Council, Acadia Center, People’s Power and Light, and Green and Healthy Homes.
In 2006, Rhode Island adopted the strategic and economic approach of investing in low cost energy efficiency in order to reduce consumers’ energy costs. In 2016, electricity from power plants like the Manchester Street Station in Providence will cost about 12 cents per kilowatt-hour, while the cost of eliminating wasted energy through efficiency improvements is about 5 cents per kilowatt-hour.
“Energy efficiency is an energy resource just like power from the coal and natural gas-fired power plants at Salem Harbor, Brayton Point, and Manchester Street. But energy efficiency is much cheaper, cleaner, and lower risk. In fact, the Public Utilities Commission’s decision to approve this plan is the best way to help customers save money,” said Acadia Center Rhode Island Director Abigail Anthony. Dr. Anthony represents environmental interests on the state’s Energy Efficiency and Resource Management Council (EERMC), which provides independent input and oversight to National Grid’s electric and natural gas efficiency programs.
Rhode Island’s energy efficiency programs help residents and businesses make energy efficient decisions by providing technical assistance and information coupled with financial incentives. For example, a residential electric or natural gas customer is eligible to receive a free home energy assessment during which the auditor will evaluate the lighting, insulation, appliance efficiency, and overall energy “fitness” of the home. The auditor will also inform the customer if she is eligible for financial incentives to help reduce the out-of-pocket cost of investing in energy efficient improvements, such as weatherization or new heating equipment. Loans are available to help homeowners and business owners with the up-front costs of efficiency upgrades.
These programs are proven and work for Rhode Island. The American Council for an Energy Efficient Economy has ranked Rhode Island in the top 5 states for energy efficient programs for the past 3 years. In addition to helping Rhode Islanders lower their utility bills, the state’s investments in low cost energy efficiency reduce the cost of doing business in the state, create jobs, and boost economic activity. The avoided spending on electricity and natural gas from the 2016 Energy Efficiency Plan will generate $265 million in economic benefits to Rhode Islanders and add $386 million to Gross State Product. Rhode Island’s energy efficiency programs directly support 639 jobs across 899 firms, more than 70 percent of which are located in Rhode Island.
In 2014, The Division of Public Utilities–the state agency charged with watching out for consumer interests– commissioned the research firm Synapse Energy Economics to see what efficiency is really doing for our electric bills. The analysis finds that a Rhode Island homeowner who gets a home energy assessment can save approximately 12% on her electric bill by replacing inefficient lighting and appliances and upgrading home insulation and weatherization. Factor in savings on natural gas or fuel oil use and total spending on energy is even lower. And small business customers, who are eligible for free energy audits, can save as much as 37% to 47% by installing high efficiency equipment and making recommended retrofits.
Contact:
Abigail Anthony, Rhode Island Director
401-474-8876, aanthony@acadiacenter.org
Kiernan Dunlop, Communications Associate
617-742-0054 x107, kdunlop@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 real-world and comprehensive approach to problem solving through innovation and collaboration.
RGGI Prices Rise as Emissions Continue to Fall
Results released today from RGGI’s 30th auction evidence the program’s continuing success, while also highlighting reforms needed to maximize environmental performance. All available allowances were sold at a clearing price of $7.50, 24% higher than the previous auction, and 44% higher than the clearing price from one year ago. The RGGI states raised $436 million dollars from the four auctions in 2015, and have now raised $2.37 billion for reinvestment since the program began, the majority of which has been used to fund energy efficiency and other consumer benefit programs. RGGI has been a successful model for reducing power sector emissions, and with reforms to ensure future environmental performance, it will be an effective means of complying with EPA’s Clean Power Plan.
The results of this latest auction show that the RGGI market continues to thrive while sending an increasingly significant price signal to the electric sector in favor of carbon-free resources. These rising prices serve as a vote of confidence in RGGI’s future as states begin a comprehensive review of the program. “The 2016 Program Review is a crucial opportunity for the RGGI states to continue to lead by example,” said Acadia Center President, Daniel Sosland. “The efforts of the RGGI states to review and improve the program have resulted in a model system for cost-effective carbon reduction that serves as a blueprint for states across the country.”
While today’s auction results demonstrate the RGGI model’s ability to drive real change in the energy sector, they also highlight one important change that will be necessary as part of this program review. The Cost Containment Reserve (CCR), which releases additional allowances when price triggers are met, will need to be reformed. As the graph below shows, price triggers have been exceed in both of the CCR’s first two years of operation, and the RGGI market appears poised to exceed the $8/ton price threshold in 2016.
“The CCR is intended to mitigate price volatility by releasing an additional supply of allowances if increases in emissions create allowance shortages,” said Jordan Stutt, Policy Analyst with Acadia Center. “However, the CCR has been exhausted in both 2014 and 2015 even as emissions are trending downward, undermining progress towards emissions reductions in the power sector.” Emissions for 2015 are on trend to total 86 million tons, assuming fourth quarter emissions are similar to last year. Even with emissions below the cap in the last two years, 15 million additional allowances have been released by the CCR, and the current structure would allow for 65 million additional tons of CO2 emissions through 2020. To solve this problem, the CCR will have to either be eliminated, or restructured with higher trigger prices and allowances that are drawn from beneath the cap.
Stakeholders in the RGGI states will be submitting comments to RGGI, Inc. today to describe how the program could be strengthened, and how the RGGI states can continue their climate leadership under EPA’s Clean Power Plan. The comments will focus on the need to meet existing state climate goals, threshold considerations for expanding RGGI to other states, and technical fixes like reform of the CCR.
“As world leaders gather in Paris to discuss solutions to one of the planet’s greatest challenges, they can point to RGGI as a shining example of market-driven policy,” said Peter Shattuck, Director of Acadia Center’s Clean Energy Initiative. “The program’s success to-date has been proven; it’s now up to the RGGI states to signal their ambitions for the future.”
Additional information on RGGI’s performance to date, and role in EPA’s regulatory process are described in Acadia Center’s July, 2015 report: RGGI: A Model Program for the Power Sector
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
Contact:
Jordan Stutt, Policy Analyst
jstutt@acadiacenter.org, (617) 742-0054 x105
Kiernan Dunlop, Communications Associate
kdunlop@acadiacenter.org, (617) 742- 0054 x107
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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 Would Set Highest Energy Savings Goals in the Nation with 2016-2018 Energy Efficiency Plan
Boston, MA– Massachusetts’ utilities have proposed the nation’s most ambitious energy efficiency programs, which will produce almost $8 billion in benefits over the next three years. The next chapter of the award-winning MassSave energy efficiency programs is now in the hands of the Department of Public Utilities, with a decision on the final proposed 2016-2018 Energy Efficiency Investment Plans expected by the end of January. Public comment on the plans is being heard today, November 30, 2015, beginning at 2 PM at the DPU’s offices at One South Station, 5th Floor.
The proposed plan features goals and strategies for saving energy and reducing bills for Massachusetts homes and businesses. If adopted, the programs will provide almost $8 billion in economic benefits and energy savings over the three year period – on top of $12.5 billion in benefits that the programs have delivered since 2008. The plan also sets the highest savings goals in the nation – annual reductions of 2.93% of electric retail sales and 1.24% of natural gas retail sales – even higher than the 2015 savings goals that resulted in Massachusetts being ranked #1 in energy efficiency by the American Council for an Energy Efficient Economy for the 5th year running. Energy savings would deliver environmental benefits equivalent to removing over 410,000 cars from the road.
“Massachusetts’ energy efficiency programs are delivering on their promise to create large energy savings for consumers, and move the Commonwealth toward a clean, affordable and secure energy future,” said Daniel L. Sosland, Acadia Center President. “Efficiency is the best near-term energy strategy for reducing Massachusetts’ residents’ energy bills. Investing in energy efficiency produces immediate bill savings that persist for years to come,” said Sosland.
The three-year plan was developed collaboratively with the state’s utilities and key stakeholders representing a wide range of consumer and environmental interests, including Acadia Center, the Energy Efficiency Advisory Council (EEAC), the Department of Energy Resources, and the Attorney General’s Office. By making successful use of the EEAC as a stakeholder council, the proposed plan improved markedly since the original draft in April. Among other factors, annual electric savings goals increased 17%, while the cost per unit of savings decreased 13%; and annual gas savings goals increased 15% while the cost per unit of savings decreased 6%, compared to the April 30th draft.
“Energy efficiency is a resource just like energy from Brayton Point, Pilgrim Nuclear, or other centralized power plants” said Acadia Center Senior Attorney, and EEAC representative, Amy Boyd. “But energy efficiency is much cheaper, cleaner, and lower risk. Approving this plan would be the best way to help customers save money.”
By investing in as much low-cost energy efficiency as possible, Massachusetts is reducing the cost of doing business in the state and leaving consumers with more money in their pockets. Such consumer savings are often spent right in Massachusetts —where they can support our local markets, our students, our education and health facilities—while payments to fossil fuel providers head immediately out of state. Every dollar invested in cost-effective energy efficiency boosts the Massachusetts Gross State Product an estimated $6.40 and every $1 million invested in energy efficiency generates around 43 job-years of employment.
Contact:
Amy Boyd, Senior Attorney
aboyd@acadiacenter.org , (617) 742-0054 x102
Kiernan Dunlop, Communications Associate
kdunlop@acadiacenter.org, (617) 742- 0054 x107
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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 Pipelines Unnecessary in New England: Facts Support Findings of MA Attorney General Study
BOSTON, MA – New publicly-funded natural gas pipelines in New England are unnecessary according to a new study by the Massachusetts Attorney General’s Office. This finding is validated by significant developments in the region’s energy markets, including:
- Improved planning and market reforms that have avoided electricity price increases despite record cold weather
- Expanded efficiency programs that are reducing energy demand cost-effectively
- Large-scale procurement for natural gas alternatives such as wind and hydroelectric power
- Backup generation that new natural gas power plants will install to reduce reliance on natural gas during infrequent peak demand periods
“Acadia Center has long argued that the public should not be forced into the novel role of underwriting expensive, risky, privately owned pipeline projects before a full and fair considerations of all viable alternatives,” said Daniel Sosland, President of Acadia Center. “The recommendations of this study prove the wisdom of not rushing to the conclusion that new pipelines are the only solution to a reliable and affordable energy system. It is encouraging to see that analysis is demonstrating that natural gas market reforms and clean energy alternatives offer better, more affordable options.”
Lower electric prices due to market reforms: Massachusetts’ electricity prices are declining due to improved planning and market reforms. Specifically, Eversource’s winter rate of 10.39 cents/kWh is 27% lower than last year’s rate, and National Grid’s rate of 13.03 cents/kWh is almost 25% lower than last year. Lower prices are due in part to market reforms implemented by the regional grid operator ISO-New England and planning requirements established by the Federal Energy Regulatory Commission. In conjunction these reforms are improving utilization of existing gas delivery infrastructure and leading power generators to develop plans for ensuring adequate fuel supplies during winter peak.
Energy efficiency reducing electricity demand: Massachusetts’ and other New England states’ aggressive energy efficiency programs are causing winter energy demand to decline, reducing the need for additional pipeline capacity and other energy infrastructure. Despite using conservative assumptions that overstate the cost and understate the impact of efficiency programs, ISO-NE predicts that winter peak demand will decline by 0.1% annually through 2024, and the actual impact of energy efficiency is likely far greater. Acadia Center has demonstrated that ISO-NE consistently overestimates energy consumption and peak demand: winter peak energy demand was 24% lower in 2014 than the 2006 projection, and total 2014 energy consumption was 17% lower than the 2006 projection. These inaccurate projections overstate the need for expensive energy infrastructure, including oversized natural gas pipelines that could be used to support gas exports overseas the majority of the year.
Clean energy procurement will displace gas generation: On November 12th Massachusetts, Connecticut and Rhode Island released a Request for Proposals (RFP) for significant quantities (up to 1,000MW plus) of hydroelectric, wind, and solar energy that will displace natural gas generation and reduce power sector natural gas demand. Legislative proposals in Massachusetts to procure additional hydroelectricity and wind could more than double the quantity of energy in the RFP, offsetting even more natural gas demand. It is worth noting that the costs for hydroelectricity and renewable energy are conservatively overstated in the Attorney General’s report, and actual prices for blended wind and hydroelectricity would have to be lower to compete in the regional electricity market.
Gas plants with limited backup generation: New power plants approved through the regional grid operator’s Forward Capacity Market Auction in early 2015 all include natural gas generation with oil backup. On the few coldest days when natural gas supplies are dedicated to meeting heating needs, these plants will run on oil. This modest, limited use of oil generation during winter peaks in the near term, before more renewable generation comes online, would have a far smaller impact on GHG emissions than new pipelines used year-round, and would be less expensive to consumers than pipeline expansion
“This study is matched by facts on the ground,” said Peter Shattuck, Massachusetts Director for Acadia Center who served on the report’s Study Advisory Group along with representatives from utilities, the natural gas industry, and clean energy and consumer groups. “Commonsense market reforms, improvements in energy efficiency, and new clean energy supplies coming online are already addressing winter price volatility, making it clear that massive outlays for subsidized gas pipelines are an unnecessary risk for Massachusetts citizens to bear.”
Peter Shattuck will be taking part in a press availability call at 11:30 EST today to discuss the findings of the report, joining leaders from the business, municipal, and health sectors, including:
- Jed Proujansky, Selectman of Northfield, Massachusetts.
- Andy Savitz, Director of Sustainability for the City of Newton and author of The Triple Bottom Line, a nationally-acclaimed handbook for business leaders seeking to embrace sustainable business practices.
- Tedd Saunders, Chief Sustainability Officer at the Saunders Hotel Group.
- Bill Ravanesi, Senior Energy Director with Health Care Without Harm.
CALL DETAILS:
Wednesday, November 18, 11:30 EST
Conference Call: 712-775-7031, PIN: 301-222-738.
Contact:
Peter Shattuck, Clean Energy Initiative Director
pshattuck@acadiacenter.org, (617) 742-0054 x103
Kiernan Dunlop, Communications Associate
kdunlop@acadiacenter.org, (617) 742- 0054 x107
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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.