Community|EnergyVision Action Guide Webinar Series

The Community|EnergyVision Action Guide is a new tool for communities seeking local clean energy options. It promotes greater alignment between state rules and actions that communities may take to advance clean energy at the local level. The Action Guide is customized for seven states: Connecticut,Maine, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont.

Rhode Island Issues Blueprint for Developing Modern, Consumer-Friendly Grid

PROVIDENCE—Acadia Center applauds the state of Rhode Island for its blueprint to create a modern electric grid that is cleaner, more efficient and more reliable. The Division of Public Utilities and Carriers, the Office of Energy Resources, and the Public Utilities Commission initiated the Power Sector Transformation Initiative in March 2017 at the direction of Governor Gina Raimondo.

“New clean energy technologies at lower costs offer an historic opportunity to build a modern, more equitable energy system that benefits consumers, reduces pollution and improves economic productivity,” said Daniel Sosland, president of Acadia Center. “To achieve that future, states need to reform outdated rules that govern the energy system. With the release of the Power Sector Transformation Phase One report, Rhode Island is embracing that future and has taken a leadership position regionally and nationally.”

The Power Transformation Initiative’s goals are to control long-term electric system costs, to give customers more energy choices, and to build a flexible grid that incorporates more clean energy resources. The agencies jointly released the Rhode Island Power Sector Transformation Phase One report, with accompanying recommendations, earlier this month. Today, National Grid will file a new rate case at the Rhode Island Public Utilities Commission, which is the first opportunity to implement these proposed reforms.

“The Power Sector Transformation Initiative has laid out an ambitious path forward to benefit Rhode Island residents, businesses, communities and the environment,” said Erika Niedowski, policy advocate in Acadia Center’s Providence office. “Acadia Center would like to thank the agencies for running a thorough stakeholder process, which has led to a thoughtful and innovative set of recommendations. Acadia Center also looks forward to reviewing National Grid’s soon-to-be filed rate case proposal for its consistency with the recommendations from Power Sector Transformation.”

Acadia Center, which participated extensively in the Power Sector Transformation’s seven-month public stakeholder process, has long advocated for states to embrace these reforms through materials such as UtilityVision and supports the key reforms recommended in the report:

• Reforming the utility business model with less emphasis on capital investments and more emphasis on achieving key goals for system efficiency, integration of distributed energy resources, and customer engagement and network support services.
• Developing new revenue streams from third parties to improve services for Rhode Island residents and lower ratepayer costs.
• Investing in the intelligence and flexibility of the electric grid.
• Improving distribution system planning to lower costs, efficiently integrate distributed energy resources, and provide more information and better incentives to customers.

“Rhode Island is poised to be the first state in New England to implement serious reforms to the utility business model,” said Amy Boyd, senior attorney at Acadia Center. “This is a key step to incentivizing utilities to act in the public interest, instead of merely advancing their own bottom line.”

“Acadia Center looks forward to the implementation phase of the Power Sector Transformation Initiative and finding the best path forward on cutting edge issues,” said Mark LeBel, staff attorney at Acadia Center. “Rhode Island should work with New York and Massachusetts to lower the cost to Rhode Island ratepayers of back office investments that can be shared across jurisdictions and define a reasonable role for the utility to advance electric vehicle charging.”

See the report at: http://www.ripuc.org/utilityinfo/electric/PST%20Report_Nov_8.pdf

Media Contacts:
Erika Niedowski, Policy Advocate, Rhode Island Office
eniedowski@acadiacenter.org, 401-276-0600

Krysia Wazny, Communications Director
kwazny@acadiacenter.org, 617-742-0054 x107

Acadia Center Applauds New England’s Continued Nation-Leading Progress on Energy Efficiency

BOSTON — The American Council for an Energy-Efficient Economy (ACEEE), a national nonpartisan organization, released its 2017 State Energy Efficiency Scorecard today, with Massachusetts holding the #1 rank for the seventh straight year, Rhode Island climbing to #3, Vermont at #4, and Connecticut at #6. Maine and New Hampshire were ranked #13 and #21, respectively.

New England states’ rankings in the category of utility and public benefit efficiency programs are even more impressive. Together, these programs represent the single largest state policy-driven impact on greenhouse gas emissions in the region. The efficiency investments driven by these programs have brought tremendous energy and bill savings to the region’s residents. They have also halted the growth of peak electric usage and its associated need for expensive new transmission projects. Rhode Island was first in this category, followed by Massachusetts, Vermont, and Connecticut. Maine was ranked twelfth, and New Hampshire sixteenth.

“Maximizing efficiency is a major step toward putting the region on the path to the clean energy future detailed in Acadia Center’s EnergyVision 2030 report. The New England states are showing that deploying least-cost, non-polluting measures effectively reduces the need for expensive fossil fuels. The leading states are successfully using this approach to spur economic development while also benefitting the environment and consumers, who enjoy lower costs and healthier, more comfortable spaces in which to live and work,” said Dan Sosland, Acadia Center President.

Massachusetts is leading the way with a current 3-year efficiency plan (2016‑2018) that is expected to deliver $8.1 billion in economic benefits and energy savings, as well as environmental benefits equivalent to removing approximately 408,000 cars from the road. The plan sets annual 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. In 2016, Massachusetts programs far exceeded these goals, achieving savings of 3.34% of sales for electric efficiency.

“Massachusetts holds the first-place ranking alone this year—and for an amazing seven years running—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 applaud our success, but not rest on our laurels. We must 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 will reduce costs, make processes more transparent and keep us on track to stay on top of the evolving ACEEE scoring criteria.”

Rhode Island’s Least Cost Procurement law is primarily responsible for the state’s continued leadership on energy efficiency. First implemented a decade ago and extended for another five years in 2015, the policy states that distribution companies cannot acquire new electric or natural gas supply until “all cost-effective” energy efficiency measures have been exhausted. However, recent actions by Rhode Island state government, including a diversion of $12.5 million in ratepayer funds collected for energy efficiency, will make it difficult for the state to maintain its ranking next year.

“By investing in low-cost energy efficiency instead of expensive electricity and natural gas, Rhode Island lowers energy bills and spurs economic growth,” said Erika Niedowski, Rhode Island Policy Advocate 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.”

A widening gap has emerged between the electric efficiency programs of Massachusetts, Rhode Island, and Vermont and other states, with Vermont achieving 65% more savings than Connecticut. These three leading states have fully embraced efficiency as a resource, just like electric generation, and are choosing the lower-cost option of efficiency. The second tier of energy efficiency performers, Connecticut, Maine, and New Hampshire, finished the year with a mix of improved performance in some areas and need for improvement in others. Maine continues to achieve respectable savings levels and leads the nation in the deployment of clean, efficient heat pumps, despite a difficult political environment for clean energy. New Hampshire’s new Energy Efficiency Resource Standard promises to finally put that state on a path to reducing energy waste. Even with this progress, New Hampshire, as well as Connecticut and Maine, have plans to achieve only about half the electric efficiency savings that Massachusetts did in 2016.

“Connecticut dropped a spot to #6 this year, an indication that its historical commitments to energy efficiency are not enough. As other states are making big gains, Connecticut is only cutting half the energy waste it can,” said Kerry Schlichting, Connecticut Policy Advocate with Acadia Center. “Leaving these savings on the table is a loss for residents and businesses. Officials should reevaluate opportunities for future efficiency gains through increasing savings targets, addressing languishing appliance standards and tackling energy waste in state buildings.”

“It is unfortunate to see that Maine’s ranking dropped for the first time in five years, falling two spots to #13,” said Acadia Center Maine Policy Advocate Kathleen Meil. “As other states ramp up their commitment to energy efficiency, Maine’s drop demonstrates that standing still means falling behind.”

“Despite the temporary dip in savings and spending in 2016 for both the electric and natural gas programs, New Hampshire’s new Energy Efficiency Resource Standard (EERS) promises to finally put that state on a path to reducing energy waste,” said Ellen Hawes, Senior Analyst at Acadia Center.

“New England is on the right path, far ahead of some other regions, but there is still work to do to make the most of this clean resource. The states need to find better ways to weatherize older buildings, integrate new technologies, and accelerate strategies to reach all types of homes and businesses,” said Jamie Howland, Director of Acadia Center’s Energy Efficiency and Demand Side Initiative.

As a member of efficiency stakeholder boards in multiple states, 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://www.aceee.org/state-policy/scorecard

Media Contacts:

Jamie Howland, Director, Energy Efficiency and Demand Side Initiative
860-246-7121 x201, jhowland@acadiacenter.org

Krysia Wazny, Communications Director
617-742-0054 x107, kwazny@acadiacenter.org

45 Organizations Call for New York to Lower Monthly Mandatory Electric Charges

New York, N.Y. — Today, Acadia Center, Alliance for a Green Economy, Natural Resources Defense Council, Vote Solar, and 41 other organizations joined to support a common set of principles to address one of New York’s most regressive charges for utility service: the unavoidable monthly fee that all residential customers must pay regardless of the amount of electricity consumed. “Joint Principles on Residential Fixed Charges in New York” calls on New York utility regulators to lower these inefficient and regressive rates. The 45 organizations come from many different perspectives, including low-income and consumer advocates, environmental and clean energy public interest organizations, solar advocates, and clean energy industry groups, and span national organizations as well as community organizations across New York.

“In order to achieve a cleaner, more modern and consumer friendly energy system, New York needs to reform and lower fixed charges. The current regressive approach was adopted in the 1990s and places barriers in the way of consumer adoption of modern technologies like solar and energy efficiency” said Daniel Sosland, president of Acadia Center, which has successfully advocated for lower residential fixed charges in Connecticut. “The diverse array of groups who have endorsed lowering fixed charges show that this would be a win for ratepayers, clean energy, and communities across New York.”

New York has very high fixed customer charges compared to other states. For example, National Grid has a residential fixed charge of $17 in New York, but only $5 in Rhode Island and $5.50 in Massachusetts. Central Hudson has even higher fixed charges at $24, which it is seeking to increase to $25, as well as an additional tiered “service size charge” for many customers. Acadia Center found that current average residential customer charges for major investor-owned utilities are higher in New York than all of its neighboring states. New York’s fixed charges are even higher than Wisconsin, a state that has been widely criticized for approving large fixed charge increases since 2014.

Mark LeBel, Attorney and Associate Director of Acadia Center’s Grid Modernization and Utility Reform Initiative, said: “Most states across the country use a definition for residential fixed charges that is much narrower than New York’s approach. Our testimony in the National Grid rate case demonstrated that residential fixed charges are currently far too high and that reform would benefit the majority of residential ratepayers. Large consumers would pay more, but 61% of monthly bills would go down with lower residential fixed charges.”

“We see no reason why utility customers in New York should be paying fixed charges that are three times higher than those paid to the same company by customers in other states,” said Jessica Azulay, program director of Alliance for a Green Economy. “It’s high time to reduce these charges so that low-income customers, low energy users, and people who want to invest in energy efficiency and renewables are no longer overburdened with these regressive and unfair costs.”

“High unavoidable charges on electricity bills have a disproportionate impact on lower income customers who use less energy and decrease the incentive for customers to make energy efficiency improvements or invest in clean energy through actions like participating in a community solar project or installing solar panels,” said Miles Farmer, a Clean Energy Attorney at Natural Resources Defense Council. “New York utilities should reduce fixed charges and instead focus on designing rates that empower customers.”

“Vote Solar is proud to stand with dozens of organizations working for customer rights, community health, environmental justice and clean energy progress in the call for lower fixed charges,” said Nathan Phelps, program manager of DG regulatory policy at Vote Solar. “In order for New York to succeed in its ambitious and laudable clean energy vision, it must empower families and businesses to take control of their own electric bills. Lowering fixed charges is a critical step to achieving that vision.”

Cullen Howe, Acadia Center’s New York Director, noted, “Acadia Center supports the overall vision that has been laid out by the Public Service Commission and Cuomo Administration over the last several years. Lower residential fixed charges will help enable the goals of Reforming the Energy Vision, including increased energy efficiency and vibrant markets for clean energy.”

Media Contacts:

Cullen Howe, Senior Attorney & New York Director
chowe@acadiacenter.org, 212-256-1535

Mark LeBel, Attorney & Associate Director, Grid Modernization and Utility Reform Initiative
mlebel@acadiacenter.org, 617-742-0054 x104

Krysia Wazny, Communications Director
kwazny@acadiacenter.org, 617-742-0054 x107

RGGI States Leading the Way Toward Economic and Environmental Success

BOSTON — A new report from Acadia Center shows that the Northeast and Mid-Atlantic states’ Regional Greenhouse Gas Initiative (RGGI) continues to deliver for the economy, for the environment, and for public health. The program is driving down CO₂ emissions, which have declined in each of the last 6 years and are down 40% since the program launched. The RGGI states have outperformed the rest of the country in emissions reductions and economic growth over this period, and the region has seen average electricity prices fall while prices have increased in the rest of the country. On top of all this, the program has driven substantial reductions in harmful co-pollutants, making the region’s air cleaner and its people healthier.

The report, Outpacing the Nation: RGGI’s Environmental and Economic Success, describes key trends and drivers, including the following:

• Emissions of CO₂ fell 8.4% below the RGGI cap in 2016, and emissions have declined 40% since RGGI launched.
• Average electricity prices across the region have decreased by 6.4% since RGGI took effect, while electricity prices in other states have increased by 6.2%.
• RGGI states have reduced emissions 15% faster than other states and have seen 4.3% more economic growth since RGGI launched.
• Proposed RGGI reforms will result in 130 million fewer tons of CO₂ and $1.28 billion in avoided health impacts through 2031.

“States in RGGI are demonstrating the power of bipartisan climate leadership,” said Daniel L. Sosland, Acadia Center President. “RGGI is a powerful example of an effective policy that drives economic, consumer, health and climate benefits while tackling a major challenge. Responsible leaders know we need to address climate change, and RGGI provides a readily available blueprint for success.”

“Launching RGGI took bold action from the region’s Governors, and thanks to that leadership the participating states have been reaping the rewards ever since,” said Peter Shattuck, Director of Acadia Center’s Clean Energy Initiative. “The current RGGI Governors have built on that success by strengthening the program for the future, ensuring that RGGI will continue to deliver benefits for years to come.”

“The RGGI states have shown that we don’t have to choose between ambitious climate policy and economic prosperity. In fact, RGGI’s track record has proven that ambitious climate policy can drive economic prosperity,” said Jordan Stutt, Policy Analyst at Acadia Center. “Now that the program for the electric sector has been strengthened and extended, we hope this proven model will be expanded to cover more states and applied to the region’s largest source of climate pollution: transportation.”

For more information, see: acadiacenter.org/document/outpacing-the-nation-rggi

Media Contacts:

Jordan Stutt, Policy Analyst
jstutt@acadiacenter.org, (617) 742-0054 x105

Peter Shattuck, Director, Clean Energy Initiative
pshattuck@acadiacenter.org, (617) 742-0054 x103

Krysia Wazny, Communications Director
kwazny@acadiacenter.org, (617) 742-0054 x107

Labor, Environmental Leaders Urge Connecticut Action on Offshore Wind

HARTFORD, CT — More than sixty labor, religious, environmental and business leaders gathered on Wednesday to discuss the development of offshore wind energy in New England and to call for Connecticut to act quickly to secure a share of the jobs and economic activity.

The half-day forum, hosted by the International Brotherhood of Electrical Workers (“IBEW”) Local 90 in Wallingford, was organized by the CT Roundtable on Climate and Jobs and Acadia Center, with co-sponsorship from the Connecticut Port Authority and the Greater Hartford-New Britain Building and Construction Trades Council.

Following the gathering, the CT Roundtable on Climate and Jobs is submitting a letter, endorsed by more than 120 people representing more than 55 towns across the state, as a public comment on the state’s Draft Comprehensive Energy Strategy (“CES”). The letter urges the CT Department of Energy and Environmental Protection (“DEEP”) to revise the draft CES to incorporate a meaningful commitment to offshore wind energy, taking advantage of planned development in pre-designated federal waters south of Massachusetts and Rhode Island.

“By taking advantage of lessons learned from neighboring states, Connecticut can develop a robust offshore wind strategy that leverages our modern port facilities and skilled labor pool to capture a share of the benefits of this emerging regional resource,” said John Humphries, organizer for the CT Roundtable on Climate and Jobs.

“Under legislation passed this year, DEEP now has the authority to procure offshore wind energy. Rather than including any recommendation that Connecticut take advantage of even that limited authority, however, the draft CES downplays the opportunity,” said Kerry Schlichting, Policy Advocate at Acadia Center. “The state must establish a clear path to securing a share of the regional economic and environmental benefits from offshore wind or risk losing out to its neighbors like New York and Massachusetts.”

So far Connecticut has lagged behind its neighboring states in creating a long-term energy strategy that embraces offshore wind. The Block Island Wind Farm off the coast of Rhode Island is operational, Massachusetts is actively reviewing offshore wind project bids, and New York, Maryland, and New Jersey are all developing their own ambitious programs. The scale of this offshore wind development presents an enormous economic opportunity for Connecticut’s deep-water ports, coastal communities and workers. To catch up and capture its share of this new economic opportunity, the state needs to develop a sound policy framework for offshore wind procurement.

The coalition’s CES comment builds on this week’s forum and argues that the final CES should ensure alignment of the state’s energy strategies with its mandated climate goals, while also envisioning a clean energy future that prioritizes local economic development and job creation.

Wednesday’s forum featured a panel discussion with labor leaders from Rhode Island and New York. Construction of the region’s first offshore wind farm off the coast of Block Island employed more than 300 union workers, including some from Connecticut. Advocacy by New York’s labor movement was critical in securing Governor Cuomo’s January 2017 executive order addressing the procurement of offshore wind energy.

For more information on Connecticut’s offshore wind opportunity and steps for state policy makers, please see Acadia Center’s analysis.

The letter submitted to DEEP by the CT Roundtable on Climate and Jobs, including the list of endorsers, is available at bit.ly/RTstatement9-17prn.

Media Contacts:
Kerry Schlichting, Policy Advocate, Acadia Center
kschlichting@acadiacenter.org, 860-246-7121 ext. 208

John Humphries, Organizer, CT Roundtable on Climate and Jobs
john@ctclimateandjobs.org, 860-216-7972

Public Service Commission Decision Undermines Consumer-Friendly Future for Solar Power and Clean Distributed Energy

NEW YORK — The Public Service Commission (PSC) issued an important Implementation Order on September 14, 2017, in the Value of Distributed Energy Resources (VDER) proceeding (Case 15-E-0751). Unfortunately, this order will impede the advancement of solar energy in New York and impose unnecessary barriers on the ability of consumers, businesses and communities to benefit from this clean energy resource. The structure laid out by the PSC in March of 2017 promised to reform and update New York’s approach to valuing solar energy and expanding consumer solar markets. The Order undermines the new VDER net metering structure because it undervalues distributed resources on the basis of unvetted utility studies that minimize solar’s economic value. In doing so, the Commission’s Order conflicts with the distributed energy future envisioned by New York’s historic and ambitious Reforming the Energy Vision (REV) future.

“The promise of a modern energy system that allows clean energy to flourish depends upon a fair determination of the economic value of solar and other clean energy resources,” said Daniel Sosland, president of Acadia Center, which has provided detailed comments on solar values in the PSC case. “Defining solar power’s economic future solely on information provided by electric utilities, who want to tilt the playing field towards investments that benefit the utility and its shareholders, is not a formula for short-term or long-term success.”

Mark LeBel, Associate Director of Acadia Center’s Grid Modernization Initiative, said, “The Commission has made a major mistake by approving unvetted marginal cost of service studies from Central Hudson, NYSEG and RGE. These studies all improperly limited the potential values provided by distributed energy resources. In addition, Central Hudson used a new and untested methodology that has never been put forward before in an adjudicated proceeding, and the Commission failed to address several detailed critiques brought forward by Acadia Center and other parties.”

Cullen Howe, Acadia Center’s New York Director, noted, “Acadia Center supports the overall vision that has been laid out by the Commission and the Cuomo Administration over the last several years. However, implementation of this vision cannot ignore the details and the practical realities of how to animate markets for energy efficiency and clean energy.”

RGGI Auction Prices Rebound in Response to Proposed Changes

BOSTON — Prices increased in the first Regional Greenhouse Gas Initiative (RGGI) auction since the participating states proposed a set of changes to the program. This is an initial indication that the market expects the program to be stronger in the future. All 14,371,585 available allowances were sold at a clearing price of $4.35, generating $62,516,395 in revenue for reinvestment. This brings the program’s total revenue to $2.78 billion—most of which has been used to fund energy efficiency and other consumer benefit programs. The Auction 37 clearing price is 72% higher than the previous auction and 4% lower than the clearing price from one year ago. This marks an end to the steady decline in auction clearing prices that began in early 2016.

The key changes announced by the states include:

• Reducing the emissions cap by 30% from 2020 to 2030;
• Conducting a full adjustment for banked allowances;
• Strengthening the existing Cost Containment Reserve; and
• Establishing an Emissions Containment Reserve

“We applaud the RGGI states for working together to improve the program, and the Auction 37 results show that these changes should make RGGI stronger,” said Acadia Center President Daniel Sosland. “After nearly two years of negotiations, the states have put RGGI on a course for long-term success.”

“Proposed policy changes have driven prices upward in this auction, but implementing RGGI reforms is the only way to ensure that prices won’t dive again,” said Jordan Stutt, Policy Analyst with Acadia Center. “Emissions continue to fall rapidly—each of the first two quarters in 2017 resulted in record low quarterly emissions—and even the new cap may not decline quickly enough to keep up with decarbonization in the electric sector. Fortunately, the new addition of an Emissions Containment Reserve should help the states reduce emissions further, at low costs to consumers.”

“The increase in allowance prices is a testament to the leadership of the RGGI states,” said Peter Shattuck, Director of Acadia Center’s Clean Energy Initiative. “By following through on proposed reforms, the nine RGGI states can demonstrate the power of bipartisan action to address climate change.”

Information on RGGI’s performance to date can be found in Acadia Center’s latest RGGI Status Report:

• Part I: Measuring Success

Additional information on the benefits of RGGI can be found at https://www.cleanenergyeconomy.us/

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

Media Contacts:

Jordan Stutt, Policy Analyst, Clean Energy Initiative
jstutt@acadiacenter.org, 617-742-0054 x105

Peter Shattuck, Director, Clean Energy Initiative
pshattuck@acadiacenter.org, 617-742-0054 x103

Major Climate Success in Northeast: World’s 6th Largest Economy Filling the Void of Federal Inaction

Boston, MA – A bipartisan coalition of Northeast and Mid-Atlantic Governors today committed to extending and strengthening their landmark climate cooperative, the Regional Greenhouse Gas Initiative (RGGI). The agreement places RGGI states – which collectively comprise the 6th largest economy in the world, ahead of France, India and Brazil 1 – in the vanguard of climate action following the Trump administration’s misguided decision to withdraw from the Paris Accord.

“RGGI governors today showed what real leadership looks like,” said Daniel Sosland, president of Acadia Center. “The Trump Administration has turned the federal government’s back on the historic opportunity to build a clean energy future that reduces climate pollution, and the need to safeguard consumers and the climate has shifted to the states and regions. Strengthening RGGI is critical to demonstrating the benefits of climate action and filling the void of irresponsible federal policy.”

RGGI governors announced a number of improvements that will reduce carbon pollution by over 132 million tons through 2030, the equivalent of taking over 28 million cars off the road for a year:

• Extending the pollution cap to 2030, when it would decline 30% from 2020 levels
• Conducting a further downward cap adjustment of approximately 25 million tons to account for surplus banked emissions allowances
• Higher ceiling prices for emissions allowances
• Creation of an innovative Emissions Containment Reserve to soak up extra allowances that go unsold at regional auctions

“Strengthening RGGI is one of the most effective and important steps to tackle climate pollution,” said Peter Shattuck, Director of Acadia Center’s Clean Energy Initiative. “Market based policies unleash the innovation and investment needed to achieve state climate targets and the goals of the Paris Agreement, and RGGI has shown just how well smart climate policy works.”

Since its inception, RGGI has been an unparalleled success.

• Carbon dioxide emissions from power plants in the region have dropped 40%, while participating states’ economies have grown by 25%. 2
• Electricity prices have declined 3.4% in RGGI states since the program launched, compared with a 7.2% increase in electricity prices for states yet to act on climate. 3
• RGGI has added over 30,000 jobs to the regional workforce. 4
• Declining emissions from CO2 have been accompanied by reductions in other hazardous pollutants, making the air cleaner and avoiding $5.7 billion in healthcare impacts. 5

“State and regional action is delivering major success through RGGI,” said Jordan Stutt, Policy Analyst at Acadia Center. “RGGI is helping to create the clean electric sector that will provide the backbone to a wider clean economy. We applaud Governors Baker, Cuomo, Raimondo, Scott and Malloy on this decision, and look forward to continuing climate leadership, including steps to tackle transportation – the region’s largest source of climate pollution.”

1. RGGI on the World Stage, Acadia Center, June 2017, available at: http://acadiacenter.org/document/rggi-on-the-world-stage/
2. The Regional Greenhouse Gas Initiative Status Report: Measuring Success, Acadia Center, July 2016, available at: http://acadiacenter.org/document/measuring-rggi-success/.
3. I.d.
4. The Economic Impacts of the Regional Greenhouse Gas Initiative on Ten Northeast and Mid-Atlantic States, Paul Hibbard et al., Analysis Group, November 2011, available at: https://web.archive.org/web/20170313223228/http://www.analysisgroup.com/uploadedfiles/content/insights/publishing/economic_impact_rggi_report.pdf and The Economic Impacts of the Regional Greenhouse Gas Initiative on Nine Northeast and Mid-Atlantic States, July 2015, available at: https://web.archive.org/web/20170313223308/http://www.analysisgroup.com/uploadedfiles/content/insights/publishing/analysis_group_rggi_report_july_2015.pdf.
5. Analysis of the Public Health Impacts of the Regional Greenhouse Gas Initiative, 2009-2014, Michelle Manion et al., Abt Associates, January 2017, available at: http://abtassociates.com/RGGI.

Media Contacts:
Dan Sosland, President
dsosland@acadiacenter.org, 207.236.6470

Peter Shattuck, Director, Clean Energy Initiative
pshattuck@acadiacenter.org, 857.636.2502

$12.5 Million Raid to Energy Efficiency Fund Threatens to Hurt Rhode Island Consumers and Economy

Joint release with People’s Power & Light

Providence, RI – Since the House Finance Committee released its proposed state budget, energy and environmental organizations have expressed serious concerns about the dangerous precedent that the House will set if their budget is enacted. The proposed plan would raid $12.5 million from ratepayer funded, cost-effective energy efficiency programs. Groups emphasize that these are not state funds, they are rate-payer funds collected specifically to bring much-needed energy savings to all Rhode Islanders. Diverting the funds from the efficiency programs will cost Rhode Island ratepayers more money.

Nonprofit organizations Acadia Center and People’s Power & Light (PP&L) are urging state representatives to support an amendment deleting Budget Article I, Section 16, in the Fiscal Year 2018 budget now before the General Assembly. Over thirty organizations and individuals – representing business, community, consumer, low-income, public health, environmental, and clean energy interests – signed a letter to the General Assembly vigorously opposing the raid. This letter highlights that by diverting ratepayer funds, the proposed budget is in effect taxing consumers for the use of their energy instead of using those funds to secure consumer savings.

“Imposing a new energy tax would be extremely unfair to Rhode Island’s already burdened ratepayers, who have been promised tangible benefits in return for their efficiency funding,” said the letter.

The letter goes on, “Rhode Island’s energy efficiency programs generate immense economic value for the state. They bring millions of dollars in electricity and natural gas bill savings to all our residents and businesses, drive our growing clean energy economy, help low-income families reduce the difficult burden of high energy costs, and protect the health and prosperity of our local communities. Rhode Island’s Least Cost Procurement law – first implemented a decade ago and extended another five years in 2015 – is primarily responsible for the state’s continued leadership on economic efficiency. The General Assembly has unanimously recognized that the electric and natural gas distribution utility must invest in the lowest cost energy resource, energy efficiency, before more expensive energy supplies from outside Rhode Island. This is an economic strategy, not a social benefits program.”

“Given that saving energy costs less than buying it and it creates far more jobs than making energy from imported gas and oil, it seems weird to tax energy consumers. There must be better ways,” says Larry Chretien, Executive Director of People’s Power & Light.

Recently the Office of Energy Resources released a report showing the importance of efficiency to the state’s economy. The report shows that clean energy jobs have grown 66% since 2014. In addition, according to the Energy Efficiency & Resource Management Council’s 2016 annual report, “Every $1 million invested in this sector leads to the creation of 45 job-years of employment, and every $1 invested boosts Gross State Product by $4.20.”

“Rhode Island’s ratepayer-funded energy efficiency programs have provided $2.3 billion in economic benefits to residents and businesses since 2008, a fourfold return on investment,” said Erika Niedowski, Policy Advocate at Acadia Center. “Rhode Island has worked hard over the last decade to become a national leader on energy efficiency, and diverting these funds would cost ratepayers money and represent a big step backwards for our economy.”

As the House members prepare to vote today, Acadia Center, People’s Power & Light, and numerous local organizations and constituents are urging state representatives to delete Budget Article I, Section 16 to do right by ratepayers and all Rhode Islanders.

Media Contacts:

Erika Niedowski, Acadia Center
eniedowski@acadiacenter.org, 401-680-0056

Larry Chretien, People’s Power & Light
larry@ripower.org, 617-686-7289