TCI is a cap-and-invest program similar to the Regional Greenhouse Gas Initiative (RGGI) that Vermont participates in to reduce carbon pollution from electricity generation. In 2005, Republican Gov. Jim Douglas signed on together with six other Northeast states. Vermont is still a part of it today, and it has been successful in multiple ways. Analysis from Acadia Center shows that since 2008:
GDP of the RGGI states has grown by 47%, outpacing growth in the rest of the country by 31%;
Electricity prices in RGGI states have fallen by 5.7%, while prices have increased in the rest of the country by 8.6%;
RGGI states have generated $3.4 billion in allowance auction proceeds, the majority of which have been invested in energy efficiency and renewable energy programs, including incentives for advanced wood heat and solar panels;
CO2 emissions from RGGI power plants have fallen by 47%, outpacing the rest of the country by 90%.
TCI Announcement Demonstrates Benefits of Transition to Clean Transportation, Highlights Need for Strong Program
BOSTON — Today, 12 states and the District of Columbia announced the details of a new, regional program to cut tailpipe pollution while delivering much needed investment in clean, equitable, modern transportation options. Working together through the Transportation and Climate Initiative (TCI), these jurisdictions have developed a multi-state cap-and-invest program to address rising transportation emissions and the need for greater investment in a clean transportation future.
Launching this program will be a major accomplishment at a substantial scale: the TCI region, were it a single country, would represent the world’s third largest economy.
“States are leading the way with subnational action on climate,” said Daniel Sosland, Acadia Center’s President. “By working together, this region can achieve globally significant carbon reductions while delivering billions of dollars each year for grants and investments to help every community thrive. From rural towns to the region’s biggest cities, TCI can fund investments to make better transportation options more accessible, affordable, and reliable.”
Along with the policy details in the draft Memorandum of Understanding (MOU), the TCI jurisdictions released modeling results demonstrating that regional action to reduce transportation pollution will deliver economic, health, and environmental benefits. Under the most ambitious policy analyzed, the region would see the following impacts in 2032:
A 25% reduction in CO2 emissions from vehicles (from 2022 levels);
Nearly $7 billion in proceeds for investment in clean, equitable transportation solutions; and
$10 billion in health savings from reduced tailpipe pollution in 2032 alone.
The modeling makes it clear that launching a TCI program will be a tremendous step forward if the participating jurisdictions implement an ambitious emissions cap. As the modeling shows, each increasingly more ambitious policy scenario delivers greater health savings and more resources for clean, equitable transportation investment.
Given these findings, the TCI states should establish a cap that declines by at least 25% from 2022 to 2032, if not more. Of the policy scenarios analyzed, the 25% cap comes closest to ensuring the necessary cuts in transportation pollution to meet state economy-wide climate requirements. While the 25% cap would represent progress, the TCI jurisdictions have an opportunity to chart an even bolder path; a more ambitious emissions cap will ensure that participating states meet their climate requirements while delivering greater health savings and enabling more transformational investments. Those investments in public transit, electric vehicles, active mobility, and other clean transportation projects will provide greater access to the clean, affordable, reliable transportation options that this region needs.
The importance of strategic investment has been demonstrated through the region’s experience with the Regional Greenhouse Gas Initiative (RGGI). The investment of over $3 billion in RGGI auction proceeds has helped participating states become national leaders on energy efficiency while creating high quality, local jobs. Those RGGI-funded investments have contributed to the fact that electricity prices in the RGGI states have declined since the program launched, while prices have increased in the rest of the country.
Through TCI, states in the Northeast and Mid-Atlantic can build on RGGI’s success while improving the model. Investments funded by TCI must be dedicated to reducing pollution and delivering a more equitable transportation system, and complementary policies will be essential to the rapid and just transition to a clean transportation future.
“Investment in better transportation options while reducing tailpipe pollution is a winning combination,” said Jordan Stutt, Carbon Programs Director. “Acadia Center applauds the TCI jurisdictions for developing this program, and we call on every participating Governor to ensure that the program is both robust and equitable; the program’s success will be determined by their ambition.”
 The TCI jurisdictions are: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia and Washington, D.C.
With the sweltering days of summer behind us and New Englanders reluctantly turning their minds to winter storm season, it is worth asking how we can keep our electric grid running affordably and efficiently during both heat waves and cold snaps. Behind-the-meter energy storage is one solution that is showing increasing promise.
In-Home Energy Storage
Behind-the meter energy storage refers to when customers store electric power purchased from the grid or power generated themselves (such as from rooftop solar panels) in batteries installed in their homes. The market for behind-the-meter storage is growing rapidly due to decreasing costs and growing awareness. In addition to providing backup power to homeowners during outages, like a traditional generator, this storage can provide backup power for the grid itself.
Battery storage can also be combined with innovative electric rates. For example, time-varying rates could encourage customers to purchase power from the grid during periods of low demand and use energy stored in their battery during periods of high demand. This would lower storage users’ bills directly while reducing the use of expensive and polluting backup plants typically needed during times when temperatures surge or plunge. In turn, avoiding these expensive resources will cut energy prices for all customers.
Policies and Pilots
Many states are currently experimenting with adding battery storage to the grid to help reduce prices and integrate renewable energy sources that produce power intermittently. This wide range of pilots is providing valuable lessons for putting storage to good use. For example, Vermont’s Green Mountain Power (GMP) claimed it saved customers $500K during a heat wave this summer through its pilot of in-home batteries. During the hours of highest demand, the program allows GMP to withdraw energy stored in customers’ batteries instead of paying very high prices on the wholesale market. This year, GMP also expanded its pilot program to allow customers to purchase third-party storage devices. In New Hampshire, Liberty Utilities is proposing a similar pilot that would combine storage with time-varying rates to provide customers with incentives to use electricity during times of lower demand.
To support a future electric grid where consumers are empowered to produce, store, and use their own electricity, state policies should enable residents to own and operate batteries to the largest extent possible. Utility ownership of residential batteries can stifle the development of competitive markets and reduce customers’ flexibility in deciding how and when to deploy their power. Acadia Center will continue to advocate for programs that prioritize a customer-centered model, helping states pursue and expand programs like those detailed above.
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.
Under Gov. Douglas, Vermont joined the Regional Greenhouse Gas Initiative (RGGI) along with seven other Northeast states – and that initiative is paying off. A recent study by the Acadia Center found that, “member states have reduced emissions 16% more than other states and seen 3.6% more economic growth.”