Last week, CLF co-sponsored the Massachusetts Electric Vehicle Roundtable with the Commonwealth of Massachusetts and Clean Cities. The invitation-only event resulted in 90+ RSVPs from government officials, business and utility representatives, advocates, and others, and was very well attended despite the ever-worsening weather forecast. Opening remarks from Executive Office of Energy and Environmental Affairs Secretary Rick Sullivan and CLF President John Kassell set the tone for a productive day, and clearly established the Patrick Administration’s commitment to promote Electric Vehicles (EVs) in Massachusetts. You can watch their opening remarks here. We were also joined by several environmental and energy agency commissioners: Department of Environmental Protection Commissioner Ken Kimmell, Department of Energy Resources Commissioner Mark Sylvia, and Department of Public Utilities Commissioners Dave Cash and Jolette Westbrook. Key staff from the Massachusetts Department of Transportation also attended.

Going into this event, we knew that the stage has been set through strong state clean energy and climate policies, and that the time is right for Massachusetts to affirmatively promote a robust market for EVs. We have only 900 or so EVs registered in our state, so we have a long way to go to catch up to current leaders in this arena, such as California. In fact, Vermont has at least twice as many EVs as MA per capita. It’s not hard to understand why this is the case – while MA is usually a leader in environmental and energy policy initiatives, states like Florida, Georgia, and both Carolinas (and many others!) currently have more incentives for potential EV consumers than we have in Massachusetts. These types of incentives are critical to the success of new energy technologies such as EVs.

Given that electric vehicle deployment will be an important means of achieving our mandatory climate reduction goals in Massachusetts (25% below 1990 greenhouse gas levels by 2020, a third of which should come from the transportation sector, and 80% by 2050), we cannot afford to wait to do more. Throughout the Roundtable, CLF and other presenters articulated the many policy opportunities, and opportunities for industry and utility stakeholders, to make EVs viable in Massachusetts – from purchasing incentives, to convenience benefits like access to HOV lanes, to time-of-use charging to reduce impacts to the electric grid from increased EV deployment (and reduce charging costs even more).

Overall, the day was very energizing and inspiring, and we expect real outcomes in the near future. We regret that we couldn’t open up the event to the public, but in addition to watching the opening remarks here and below, you can review the agenda and powerpoint presentations from the Roundtable. We look forward to exciting developments coming out of this energizing day, and promise to report back here on our progress.

The Vermont Public Service Board will be holding a public hearing on the proposed expansion of Vermont Gas facilities.

Vermont Gas Systems Expansion

Thursday evening, March 21, 2013

7:00 p.m 

Champlain Valley Union High School in Hinesburg, Vermont

At a time when climate change is upon us we must think carefully about putting in place new fossil fuel systems that will be around for a very long time. Keeping us hooked on fossil fuels for many years is a bad idea.

The Board will be considering the proposed route, which runs through valuable wetlands and farmland. This is the beginning of a bigger project to supply gas across Lake Champlain to New York. It also moves Vermont closer to being able to access gas supplies from fracking, which is ongoing in New York and Pennsylvania.

Come let the Board know what concerns you have. Tell the Board you want to make sure energy is used wisely and that Vermont takes steps now to reduce our addiction to fossil fuels. It is important for the Public Service Board to hear from you.

An offshore wind farm off the coast of the Netherlands. Image courtesy of Nuon @ flickr

From California to Craigsville Beach on Cape Cod, nearly twelve hundred people joined together over the past week to voice their support for Cape Wind’s clean, renewable energy and to oppose the ongoing delays depriving our country of its first offshore wind project. Their comments were directed at the Department of Energy (DOE), which was seeking the public’s input as the agency considers a federal loan guarantee for Cape Wind. The immediate issue before DOE is whether to accept the project’s Final Environmental Impact Statement in its consideration of the loan. The rigorous environmental review has been deemed more than adequate by the country’s leading national, regional and local environmental organizations, including Greenpeace, the National Wildlife Federation, the Natural Resources Defense Council, Sierra Club, Mass Audubon, Conservation Law Foundation and more.

In a letter sent to DOE on Monday, more than two dozen environmental, clean energy, public health, business and labor stakeholders urged the agency to proceed without delay to consider and grant a loan guarantee for Cape Wind. The letter stated, “Cape Wind will concretely advance the nation’s objectives in addressing the challenge of climate change while promoting energy security and economic development. Following an extremely lengthy and rigorous environmental review, the Cape Wind project should proceed for consideration and grant of a loan guarantee without further delay. Such action will help lay the strongest possible foundation for offshore renewable energy development in the United States.”

Cape Wind Now’s petition to DOE activated Cape Wind supporters across the country who invoked everything from protecting their children’s future to much-needed jobs to national pride in calling on DOE to approve a federal loan guarantee for the project and unleash the potential of offshore wind, one of the country’s most promising, but as yet untapped, sources of clean, renewable energy. Supporters railed against the decade of delay perpetuated by fossil fuel billionaire Bill Koch and his Cape Wind opposition group, the Alliance to Protect Nantucket Sound. In yet another delay tactic, the Alliance and a couple of House Republicans recently sought to distract DOE and wrap up the loan guarantee process in red tape by questioning the completed, thoroughly researched and vetted environmental review. “No more delays!” was the common refrain from petitioners, including many Cape residents, who pleaded with DOE to do everything in its power to get the wind turbines built now.

DOE announced in November 2012 that it was considering a federal loan guarantee for the project. The DOE loan guarantee is a key component of Cape Wind’s financing, lowering the cost of the project’s debt and ultimately the cost of Cape Wind to Massachusetts ratepayers. DOE will issue its decision in the coming months.

Want to stay current on Cape Wind’s progress? Sign up to receive email updates from Cape Wind Now.

Senator Bernie Sanders is hosting a Global Warming Conference – What does it mean for Vermont?  — on Saturday March 16 from 10am to 4pm at Montpelier High School in Montpelier Vermont.

Bill McKibben will be the Keynote Speaker and Senator Sanders will be joined by Vermont and national leaders for workshops and discussions about climate change and what it means for Vermont.

I am pleased to join Senator Sanders and Bill McKibben for this event. It is a great opportunity to learn more about how we can tackle climate change together.

The event is free and open to the public and lunch will be provided.

More information is available here.

The Maine Public Utilities Commission (PUC) took important steps this week to increase energy efficiency in the state and pass those savings along to Maine’s electric customers. On Tuesday, the PUC issued its final order unanimously approving the Efficiency Maine Trust’s Triennial Plan, the comprehensive document that outlines the strategies, programs, budgets and estimated savings for three years starting July 1, 2013.

Some of the more critical components of the approved Plan are its budgets for the Trust’s largest programs related to electric efficiency. The Trust had proposed and made the case for expanding its budget for these programs by almost three times what would otherwise have been available to the Trust, estimating over $650 million in achievable cost-effective savings. The PUC  took a more conservative approach, but acted meaningfully, doubling the electricity budget and affording ratepayers close to $500 million in savings from these programs.

With their decision, Maine’s energy experts have spoken and they unanimously agree that the Legislature should significantly increase funding for energy efficiency. We hope the Legislature will take the responsible course of action this time and claim a victory for Maine ratepayers and the environment.

But, as I wrote last week, going forward, these efficiency funding decisions should reside with the experts at the PUC. The Maine law implemented last year shifting final say on certain energy efficiency funding from the PUC to the Legislature must be amended to direct that authority back to the PUC where it belongs. The Legislature will have the chance to make that change this session. The Legislature should look to the PUC’s actions this week as a demonstration of its keen understanding of the facts and the value of energy efficiency to the people and the state of Maine, and should follow the lead of our energy regulators.

The press release announcing the PUC’s decision is here.

Mount Tom power plant in Holyoke, MA.

A familiar story appears to be unfolding at the Mt. Tom coal plant in Holyoke, Massachusetts. According to recently released documents, the owner submitted what is known as a Dynamic Delist Bid with ISO New England (ISO-NE), the operator of the New England electricity system and markets, and ISO-NE accepted the bid.

This means that during the 2016-2017 capacity commitment period the plant will not be obligated to run and will not receive any capacity payments. The plant could still run and be paid for the electricity it makes, but the act of de-listing means that Mt. Tom’s owner thinks there is a significant chance it will not be economic for the plant to run during that year.

This is not surprising given the sharp decline in how often the plant has been running over the past few years:

This news is particularly significant for two reasons:

• First, submitting a de-list bid to leave the market for one year has been the first step on the path to retirement for two other coal-fired plants in Massachusetts, Somerset Station and Salem Harbor Station;
• and Second, the fact that ISO-NE accepted the de-list bid means that it determined that Mt. Tom can exit the capacity market for that timeframe without any impact on reliability. That’s a good indication that Mt. Tom could permanently retire without impacting the system, although some additional analysis would need to be done.

Although this is welcome news, because it means the end of a long legacy of pollution, it is not surprising. Even Brayton Point, New England’s largest power plant is facing desperate financial circumstances. Coal-fired power plants have been faltering across the country over the last two years, and CLF, Coal Free Massachusetts and local allies have been warning that Mt. Tom is not only a polluting, outdated relic but that it is also an unprofitable, unstable source of revenue for the City of Holyoke and that now is the time to plan for a cleaner, brighter future.

A task force created to examine the issue of retiring, demolishing, and eventually redeveloping the sites of aging coal-fired power plants in the Commonwealth will be visiting Holyoke on March 6 for a meeting with ISO-NE and a tour of the Mt. Tom plant.  CLF and its local allies are urging the task force to open this meeting to the public and to solicit more public input on the process.  Thus far, although meetings have been open to the public, there has been little effort to engage local community members.  Engaging the public is critical to an open, fair, transparent process that will create results that the entire community can get behind.

An offshore wind farm off the coast of the Netherlands. Image courtesy of Nuon @ flickr

As of June 2012, the world boasted 4,619 megawatts of installed offshore wind energy capacity, while the United States had none. President Obama and other national leaders like Susan Collins want to change that statistic. The public also increasingly supports clean renewable energy in the wake of frequent severe weather events like Hurricane Sandy caused by climate change.

The biggest barrier to developing offshore wind energy has been criticism of its cost compared to other forms of energy. But offshore wind technology is in its infancy; it must be tested and supported much like subsidies were provided for the testing and development of oil and gas exploration. A recent study by the Brattle Group contained two findings that I found interesting.

- First, the study estimates the total investment needed to develop a U.S. offshore wind industry and how that investment would affect the price of electricity. The study showed that offshore wind could cost less to develop than subsidies paid for coal, oil and gas over the last 50 years.

- Second, the study estimates that offshore wind would result in an average monthly-rate increase for American consumers ranging from 0.2 percent to 1.7 percent.

Considering the huge amount being added to our tax bills to finance natural disaster relief from increased hurricanes, tornadoes and other weather events caused by global warming, this modest increase in electric rates to switch to cleaner power is a no brainer.

Here in New England, we have several potential opportunities for offshore wind: Cape Wind in Massachusetts, DeepWater Wind projects in Rhode Island, and the Hywind Maine pilot project in Maine.

What do you think? Would you pay a little more for electricity tax to reduce our dependence on fuels that add to global warming?

The National Mall was quiet when I stepped off the 350 Massachusetts bus last Sunday. As the sun rose over the Washington Monument and I was tasked with finding breakfast for eleven of my very hungry peers from Stonehill College, I could not help but feel excited and energized for the day ahead. This was a historic moment. So much is at stake in our fight against climate change.

A few weeks earlier I attended the Keystone XL rally in Portland, ME and I could not believe the crowds- over 1,000 people showed up! I wondered: How many people would show up in DC? You can imagine my excitement as the morning went on and thousands upon thousands of Americans from all across the country gathered on the National Mall. They gathered to hear from environmental leaders like Bill McKibben of 350.org, Michael Brune of the Sierra Club, and Senator Sheldon Whitehouse (D-RI). They gathered to stand together, sharing a simple concern. And they gathered to share a simple message with the country: We need to act now, together, on climate change.

As these and several other speakers shared their stories with the 45,000 Americans gathered in front of them, the urgency with which we must address this complex climate change problem was evident. It’s going to take a great deal of effort, time, and some significant behavior change, but the Americans who gathered together on this frigid day are just a few of the millions of us who are ready for some serious legislative action on climate change.

Stonehill students at the Forward on Climate Rally

At times, the crowd roared. They cheered in agreement when it was noted that, “We will never be able to eat money and we will never be able to drink oil.” The emphasis was certainly on the Keystone XL pipeline and President Obama’s ability to stop this project in its tracks. While the cheering was frequent, the signs were funny, and people smiled at the young children running around, the mood was somber as the march began toward the White House.  As the Rev. Yearwood, President of the Hip Hop Caucus noted, “We’re fighting for existence.” That day, on the National Mall surrounded by thousands, the fight was alive.

As Conservation Law Foundation (CLF) President John Kassel noted in his blog post on the topic, this type of movement certainly needs strategists, lawyers, and scientists to succeed, but also the “people in the streets, in villages and barrios, on college campuses and in cornfields and in automobile assembly plants.” Due to the excellent organizing of 350 Massachusetts, the Commonwealth sent a sizable and diverse delegation of 7 full buses including 11 of my fellow students and friends from Stonehill College in Easton, Massachusetts.

Active in a variety of different ways with sustainability and environmental issues at the College, our group of students were able to secure a grant to cover the costs of trip from our school’s “Green Fund” which awards small grants to groups of students looking to engage in environmental events and make campus a greener place! Needless to say, this was an incredible opportunity and it has energized and inspired all of us to take further action at our school to make a positive environmental difference. Whether this be our ongoing divestment campaign, our work to reduce plastic consumption of water bottles and “to-go” meal containers, or education regarding our composting options in the cafeteria, the Forward on Climate rally proved to all of us that we all share a joint responsibility to work together to fight and seriously address the threat of climate change.

Please join us in this critical fight to preserve and protect our previous environment. Join Conservation Law Foundation. If there’s one lesson learned from the rally, it’s that we must work together. Looking around the mall, you couldn’t help but agree that we’re stronger when we do.

Just how much financial trouble is Dominion facing at its 50-year old coal and oil-fired power plant? The prospects are bleak and looking worse. For years, people have assumed that the largest coal-fired power plant in New England could weather any storm, but the numbers show that Brayton Point is facing dark days, and the clouds are not likely to lift.

Brayton Point Capacity Factors from 2007-2012

Today, Conservation Law Foundation released an independent analysis of the financial performance of Dominion Resources’ Brayton Point power plant in Somerset, Massachusetts. The report, authored by the Institute for Energy Economics and Financial Analysis, projects a bleak future for the 50-year-old coal-fired facility. Entitled Dark Days Ahead: Financial Factors Cloud Future Profitability at Dominion’s Brayton Point, the report found that the once profitable power plant’s earnings before interest, taxes, depreciation and amortization (EBITDA) are plummeting due to a perfect storm of market conditions that are projected to continue at least through the end of the decade.

The report shows that those conditions make it unlikely that Brayton Point will ever recoup its recent $1 billion investment in upgrades to the facility, or return to profitability.

“Brayton Point is looking at losing money for the foreseeable future,” said David Schlissel, who co-authored the report with financial expert Tom Sanzillo. “The market conditions have changed and are continuing to change for old coal plants. There is nothing on the horizon that shows that this power plant will be able to return to financial health; in fact, even the most optimistic scenario shows that Brayton Point cannot produce earnings that would cover its costs and produce a return for equity investors at any time through 2020.”

Sanzillo added, “The forecast for Brayton Point is indicative of what’s happening all over the country. We are seeing the owners of these 50-year-old coal-burning facilities facing do or die decisions about their futures, with hundreds having already announced their plans to retire in the next few years and more going that route every month. Brayton Point’s current experience – bleeding money and owner Dominion Resources having already written off $700 million of its $1 billion investment in upgrading the plant – and its bleak outlook clearly show that continuing to operate this plant doesn’t make economic sense.”

A Perfect Storm of Changing Conditions Sends Earnings Plummeting

The report points to a set of changed conditions that together are putting severe downward pressure on Brayton Point’s earnings, which dropped from $345 million in 2009 to an anemic $24 million in 2012, a decrease of some 93 percent:

• Natural gas prices have declined significantly since 2008 and are expected to remain low for at least the remainder of this decade.
• Wholesale energy market prices have decreased In response to the declining natural gas prices, , meaning reduced revenue for coal plant owners and reduced generation at coal plants like Brayton Point.
• Meanwhile, prices for capacity have been also been declining with a 35% decrease in the price obtained in the Forward Capacity Auction in 2012 as compared to the price for 2010.
• Additionally, energy usage in ISO-NE decreased by 2-3 percent between 2008 and 2012 as a result of the economic downturn and increasing energy efficiency efforts.

Future Profitability is Unlikely

The report provides two extremely conservative scenarios of future performance: an “optimistic scenario,” in which generation from Brayton Point coal Units 1-3 is projected to rise to a 60% capacity factor through the years 2013-2020, and a “less optimistic” scenario, which assumes that the units’ generation will not exceed 40% for any year in the period. In 2012, Brayton Points Units 1-3 operated at an average 16% capacity factor. Thus, the report says, earnings from those units could be much lower than projected in the two scenarios modeled. “In no way have we looked at a ‘worst case’ scenario,” noted Mr. Sanzillo.

In both scenarios, based on forward-looking conditions, the report shows that it is unlikely that future energy market prices, ISO-NE capacity market prices, plant generation and coal prices will lead to earnings high enough to provide its owner with adequate recovery of capital or return on investment. The report’s conclusions are based on projections that show that it is reasonable to expect that for the remainder of this decade, at least:

• Energy market prices in New England will remain low, reflecting continuing low natural gas prices.
• Energy consumption in New England will remain flat while consumption in Massachusetts may decline.
• Bituminous coal prices will increase over time.
• As a result, the generation at Brayton Point Units 1-3 is not likely to reach the high levels of performance achieved by the units through 2009.
• Future New England capacity prices are not likely to increase significantly.

On the longer horizon, from 2020 on, the report points to increasing pressure to place a significant price on carbon emissions from fossil fuel-fired power plants, and the plant’s age, as additional factors that will likely weigh on the plant’s earnings.

N. Jonathan Peress, VP and director of Conservation Law Foundation’s Clean Energy and Climate Change program, commented, “Brayton Point, like many other old coal plants in New England and around the country, is at a tipping point. Dominion has already made a losing investment in trying to make this plant viable beyond its useful life. Now, Dominion and its shareholders need to decide whether to keep pumping money into Brayton Point with little chance of a return, as this analysis clearly shows, or to let it go. This report provides compelling evidence for the Town of Somerset, which has been seeing its tax revenue from the plant decline in recent years, to begin planning for Brayton Point’s retirement, and a healthier future for that community in all respects.”