Merrimack Station in Bow, NH

In more than 50 pages of filings last Thursday, CLF responded to a pair of motions by Public Service Company of New Hampshire (PSNH) asking for dismissal of our Clean Air Act citizen suit now pending in federal district court in New Hampshire. That same day, CLF’s lawsuit got a major boost when the U.S. Environmental Protection Agency (EPA) filed a brief of its own, as a friend of the court, to identify the legal errors in PSNH’s key argument.

One PSNH motion challenged CLF’s right to sue PSNH to protect the environmental and public health from Merrimack Station’s illegal pollution. The other motion claimed that PSNH didn’t do anything wrong when it renovated Merrimack Station because EPA regulations allow it to make changes without permits.

In our briefs, CLF vigorously objects to both motions. You can download our briefs in PDF format here and here; our full set of filings, including attachments, is here (7MB .zip file).

PSNH’s illegal projects will increase Merrimack Station’s emissions, which will harm the health and well-being of CLF members. Under federal law, this harm means that CLF has the right to sue PSNH to hold it accountable for violations of the Clean Air Act. Because PSNH failed to get permits for its projects, PSNH violated the law. Those permits would require PSNH to install more stringent and protective pollution controls that all new plants must include, reducing Merrimack Station’s emissions of a wide range of pollutants, beyond the reductions that Merrimack Station’s expensive new scrubber (which is limited to reducing sulfur dioxide and mercury emissions) can achieve.

Incredibly, PSNH’s argument that it is exempt from permitting requirements is entirely based on EPA regulations that do not apply in New Hampshire. It’s not a close call; PSNH’s brief arguing for our lawsuit to be dismissed gets the rules 100% wrong, an astonishing error for a sophisticated company like PSNH, New Hampshire’s biggest utility.

EPA’s filing puts the final nail in the coffin for PSNH’s flawed legal argument. In a 25-page brief, EPA shows how, even if the rules PSNH is citing were the right ones, PSNH got those rules wrong too. As the author of the regulations PSNH cites, EPA explains that those regulations also would require PSNH to obtain permits before undertaking projects that will increase emissions.

It could not be clearer that PSNH’s recent renovation strategy at Merrimack Station — “build first, see what happens later” — violates the Clean Air Act. CLF will continue its fight to hold PSNH accountable for its violations as this case proceeds in the months to come.

A study released today documents the powerful benefits of the Regional Greenhouse Gas Initiative (RGGI) – the nation-leading effort by Northeastern and Mid-Atlantic states to reduce greenhouse gas emissions from power plants while building up energy efficiency and clean energy efforts in the states.

The study found that RGGI created $1.6 Billion in net economic benefits across the region ($888 million in New England alone).  The program saved electricity customers $1.3 Billion on their energy bills region-wide due to investment by the program in energy efficiency and created 16,000 Job Years (a standard measure of employment) during the first 3 years of the program (including temporary and permanent positions).   The cost of the program was minimal, creating an imperceptible 0.7% electricity price increase on customer bills across the region that was more than offset by the benefits of the program.

CLF has been deeply involved with the RGGI program from its inception. We strongly believe that this is solid proof that RGGI, while first and foremost an effort to reduce greenhouse gas emissions, is also a win for the economy, consumers and business, as well as the environment.

We must apply the lessons of RGGI to date and move beyond this pilot phase, scaling up the program to further reduce pollution, create even more jobs and reduce energy bills on a much greater scale, and take this effort into other parts of the nation.

RGGI has proved that a well-designed greenhouse gas reduction policy is a win for just about everybody.  The complaints (amplified by their well-financed megaphone) from the filthy few companies who make their money by extracting and selling coal and oil, at great cost in lives and environmental damage, should not distract us from hearing that very positive story.

Zak Griefen

CLF is pleased to welcome Zak Griefen, a Vermont native and former litigator for Cheney, Brock and Saudek, in the newly created role of environmental enforcement litigator. Based in CLF’s Vermont office, but working on cases throughout New England, Zak will be focused initially on cleaning up our region’s inland and coastal waters by ensuring that polluters are aware of their Clean Water Act permitting requirements and bringing federal litigation when necessary. The environmental enforcement litigator position was created to hold polluters accountable for the violations of environmental regulations—Clean Water Act and others—that are rampant across New England, compromising our region’s health and the health and safety of our citizens.

Zak has a BA from the University of New Mexico, and earned his JD, cum laude, and Master of Studies in Environmental Law, magna cum laude, from Vermont Law School in 2005, where he was an editor of the Vermont Law Review. Admitted to practice in VT and MA, he served for two years as clerk to the judges of the Vermont Environmental Court, and then practiced civil litigation in Montpelier, where he lives with his wife and two children. Zak, who served as a summer intern at CLF in 2004, is an avid angler and is particularly interested in protecting healthy streams and promoting sustainable land use.

Today, the New Hampshire Department of Environmental Services provided an annual report to the New Hampshire legislature detailing the results of the Regional Greenhouse Gas Initiative (RGGI) Carbon Dioxide Emissions Budget Trading Program.  The report notes that the program has supported approximately $20 million in job creating energy efficiency investment in New Hampshire and that each dollar of invested RGGI revenue resulted in $3.42 in direct energy savings (See this study by the University of New Hampshire). The report concludes that the effect of the RGGI program on rates has been negligible, amounting to .06 cents per kWh, or approximately 30 cents per month per household.

At the same time, electricity bills for customers of New Hampshire electric utilities have decreased dramatically since RGGI went into effect, with the exception of PSNH customers.  According to the report, the average PSNH residential customer is currently paying approximately $27 per month more than a New Hampshire customer in National Grid’s service territory for the same amount of power ($89 per month for PSNH versus $62 per month for National Grid).

Given the magnitude of the excessive energy costs paid by PSNH residential customers (comprising the overwhelming majority of New Hampshire homes), one might assume that the legislature would use the report as a basis for reviewing and revising the state’s policy that forces New Hampshire residents to subsidize PSNH’s above market costs to the tune of $324  per ratepayer per year.

Instead, House Speaker William O’Brien and Majority Leader D.J. Bettencourt issued a statement today criticizing RGGI for laying an extra “$5.50 per year on the backs of our ratepayers.”  They appear to have missed the forest for the trees (and bungled their math).  New Hampshire ratepayers pay among the highest rates in the country because PSNH imposes on them the above-market cost of its dirty and expensive power.  In fact, the report shows that National Grid ratepayers in New Hampshire, having been spared the legislative mandates that inflict exorbitant costs on PSNH ratepayers, pay the lowest electric rates in New England. National Grid and other New Hampshire utilities purchase power from newer, more efficient power plants selling into the wholesale market.

Improving New Hampshire’s economic future requires a thoughtful review of the statutory policies that extend the lives of PSNH’s uneconomic power plants and foist the exorbitant costs of these plants, and the pollution they emit, on New Hampshire residents. Portraying a successful and economically beneficial program such as RGGI as a burden to ratepayers lays blame in the wrong place and amounts to a game of political charades—a disservice to New Hampshire voters and job creators.

Are you concerned about the Northern Pass transmission project? Do you want to learn more about what it could mean for New Hampshire and New England’s energy future, for our climate, for energy rates, and for the communities and natural environment of New England and Québec? Do you want to keep up with the latest developments as the project progresses through the permitting process?

If you answered yes to any of these questions, you’ll want to sign up for CLF’s new email newsletter – Northern Pass Wire.  In a concise format, Northern Pass Wire will provide the latest news and analysis regarding the Northern Pass project direct from CLF advocates, with links to additional resources from CLF’s Northern Pass Information Center, our latest Northern Pass posts here on CLF Scoop, and CLF’s recent legal filings. Northern Pass Wire will also keep you informed about ways you can get involved and make your voice heard as the permitting process for the Northern Pass project continues. We expect to publish Northern Pass Wire about once a month, and perhaps more frequently when events warrant. The first edition can be previewed here, and you can sign up to get Northern Pass Wire here.

Please sign up and encourage your family, friends, and colleagues to do the same!

Click on the image to preview the first edition of CLF's Northern Pass Wire

Leaves are falling, autumn has arrived – and so has a new look for CLF Ventures, CLF’s non-profit strategy-consulting arm. CLF Ventures bridges the public and private sectors to advance innovative, market-based solutions that benefit the environment, society, and our clients’ bottom line. With a new logo and a newly redesigned website, CLF Ventures is taking our message of “Environmental Gain – Economic Advantage” to the next level.

The new CLF Ventures logo was designed to complement the CLF logo while capturing the unique mission and value that CLF Ventures brings to our clients. The two overlapping leaves in the new CLF Ventures logo embody our message that the environment and the economy are interconnected, not mutually exclusive, and that we need to pay attention to both to have a truly thriving and sustainable economy. “If you really look closely,” says CLF Ventures CEO Jo Anne Shatkin, “you see the “V” inside the leaves – that’s the “V” for Ventures, but it’s also a check mark, which says ‘yes, we know how to make things happen.’ CLF Ventures is like those two overlapping leaves. We’re uniquely positioned to help our clients because we’re part of the environmental community and we understand what businesses and innovators need to operate and thrive.”

The redesigned CLF Ventures website highlights the breadth of our services and the wide variety of partners we help. Our new homepage features a revolving showcase of the “Four I’s” – Innovate, Incubate, Integrate, and Initiate – which captures CLF Ventures’ mission to bring about positive environmental change through the marketplace. Many people are familiar with CLF Ventures’ work to help facilities integrate their operations with sound environmental principles and operate both sustainably and profitably. But CLF Ventures also helps entrepreneurs and clean technology leaders innovate their products and technologies and bring them to market. We incubate replicable, new businesses that create shared value and improve the environment. And we initiate opportunities that propel new investment models toward the triple bottom line. Our redesigned website allows us to share our story – and our mission – with a broader audience. We hope you’ll check out www.clfventures.org and let us know what you think.

photo credit: Hope Abrams/flickr

Here in New Hampshire, the leaves have turned.  What hasn’t changed is that the environmental review of the Northern Pass proposal remains stalled while the project developers – Northeast Utilities (and its subsidiary Public Service Company of New Hampshire) and NSTAR – seek a new route for the northernmost 40 miles of the project.  It’s a disgrace that the U.S. Department of Energy (DOE) has so far refused to use the developers’ significant delay to assess the nature and extent of New England’s need for Canadian hydropower and to develop an appropriate plan to bring that power into the region, as CLF and others have been requesting since April.

While DOE is in a holding pattern, CLF is continuing to fight for a fair and comprehensive environmental review of the Northern Pass project.  Earlier this month, CLF filed new comments with DOE, supplementing the detailed comments we filed in April.  Our new comments address:

• Why CLF has renewed concerns about DOE’s control over its new environmental review contractors.  Based on our review of the Memorandum of Understanding between Northern Pass, DOE, and its new contractors, posted here (PDF), we explain that Northern Pass could still have an unfair and inappropriate influence on the content of the environmental impact statement and the schedule for completing it.
• What the Northeast Energy Link proposal means for the Northern Pass environmental review.  The recently announced Northeast Energy Link proposal, along with the Champlain Hudson Power Express project, makes it clearer than ever that we need a regional assessment of our energy needs.  These other two transmission projects also show that burying transmission lines in transportation rights-of-way is an abundantly reasonable alternative to overhead lines.
• How Northern Pass hasn’t clearly disclosed the source of power for the project.  We bring to DOE’s attention important information, obtained by CLF through its cross-examination of an executive of Northeast Utilities before Massachusetts regulators, that the source of Northern Pass’s power is likely to be new hydroelectric projects that Hydro-Québec is now in the process of designing and building.  CLF is especially troubled by the new information because the impacts of the project are much more significant if it causes the construction of new dams and the associated negative environmental impacts, including well-documented spikes in early greenhouse gas emissions from flooded land.  Northern Pass and its parent companies have consistently failed to acknowledge that these emissions undermine their claims about the reductions in emissions the project will supposedly provide.

A copy of our new comments is available here.  We also filed a Freedom of Information Act request with DOE, seeking to obtain a copy of the “Consulting Services Agreement” between Northern Pass and the environmental review contractor team.  The Memorandum of Understanding suggests that this separate contract includes important information on the budget and schedule for the environmental review, and the public deserves to know these details.

With the permitting process due to continue when Northern Pass announces a new northernmost route, CLF will be launching new ways to keep you informed about the latest Northern Pass news and the best ways for you to get involved and make your voice heard. Please stay tuned!

For more information about Northern Pass, visit CLF’s Northern Pass Information Center (http://www.clf.org/northernpass) and take a look at our prior Northern Pass posts on CLF Scoop.

photo credit: l . e . o/flickr

With each passing day, the dire reality of PSNH’s coal-fired business model is becoming clearer in New Hampshire.  The cost of operating PSNH’s obsolete power plants continues to grow, accelerating the Company’s death spiral where fewer captive ratepayers are saddled with unsustainable above-market rates as more PSNH customers choose to buy power from better managed competitive suppliers.  We are also learning that Northern Pass will make the situation worse for ratepayers, not better, and that PSNH and its Northern Pass partners are poised to pull in huge profits.  In just the last few days:

• PSNH revealed that, as it has begun bringing online its $450 million scrubber project at PSNH’s 50 year old coal-fired Merrimack Station, the bill is now coming due. If state regulators at the New Hampshire Public Utilities Commission (PUC) approve passing the cost on to ratepayers, the energy rates for PSNH customers – already the highest in New Hampshire by a wide margin – will go up by at least 1.2 cents per kilowatt hour, or almost 15%.  CLF is seeking to intervene in the PUC proceeding on the rate increase.  PSNH, unsurprisingly, wants to keep CLF out, in addition to any other party seeking to intervene on behalf of ratepayers.  There is no better illustration of the folly – for ratepayers and the environment alike – of major new investments in coal-fired power plants than PSNH’s flawed effort to extend the life of Merrimack Station.  These investments are a disaster for ratepayers, and don’t even ensure compliance with the plant’s environmental requirements – a case CLF is making right now in federal court with regard to other modifications to Merrimack Station.
• Large commercial and industrial customers with the buying power to avoid the high rates for PSNH’s fossil power continue to do so in dramatic numbers.  PSNH announced that, in September, about 82% of these customers were buying power elsewhere in the market (accounting for 93% of the power delivered to these customers) – a phemonenon known as “migration.”  Meanwhile, more than 99% of New Hampshire residents in PSNH territory were left behind to pay PSNH’s already exorbitant rates.  The scrubber rate increase is going to make this situation even worse for residents – additional businesses will find other suppliers and PSNH will need to jack up its rates even more.  More cost-effective competitive suppliers are cleaning PSNH’s clock among large customers.  Given the company’s excessive and increasing rates, residential ratepayers are starting to vote with their pocketbooks for more sustainable energy supplies.
• It is becoming increasingly clear that the current Northern Pass proposal is designed around PSNH’s bottom line, not the interests of New Hampshire ratepayers.  As we’ve mentioned before, the large customer “migration” problem and its upward pressure on homeowners’ electric bills are likely to get worse with Northern Pass, which would further depress regional wholesale electric rates and encourage more customers to leave PSNH.   Adding in the cost of the scrubber will only widen the divide between the businesses that can choose other suppliers and potentially benefit from Northern Pass, and the residential customers who are currently  stuck with PSNH. A new wrinkle emerged last week – testimony from PUC staff showing that PSNH’s consultants estimated a year ago that Northern Pass will cannibalize PSNH’s already meager revenues from Newington Station, PSNH’s little-used power plant in Newington, New Hampshire, that can operate with either oil or natural gas.  Northern Pass would mean it would almost never run and that the investments ratepayers have made over the years to keep Newington Station operating will essentially be lost.  This same dynamic will apply to the rest of PSNH’s power plants:  Northern Pass will diminish their market value further exposing New Hampshire businesses and residents to the risk of excessive costs.  Once again, a series of poor decisions and self-interested advocacy by PSNH (at the expense of ratepayers) is forcing the legislature to intervene.

The costs of PSNH’s coal-fired power plants are becoming untenable, and a radically redesigned Northern Pass proposal and other alternatives could help PSNH meet its customers’ power needs more cheaply and with less damage to public health and the environment.  Instead of planning for a cleaner energy future, PSNH is working only to preserve its regulator-approved profits.  CLF will be using every tool at our disposal to force a rethinking of PSNH’s approach.

Merrimack Station Coal Plant. Photo credit: flickr/Jim Richmond

New England’s old coal-burning power plants don’t just pollute the air. With their obsolete cooling technology, they also create havoc in the water bodies on which they reside. To control heat from the coal-combustion process, these coal plants draw millions of gallons of water daily into their antiquated cooling systems, killing the aquatic life that gets sucked in with it, and then discharge the super-heated, chemical-laden  water back into the fragile rivers and bays, where it creates untenable living conditions that destroy native fish and other species.

Under decades of pressure from CLF and other organizations, EPA has tightened its regulations around water intake and discharge at the region’s coal plants. At the GenOn Kendall Power Plant in Cambridge, MA, as a result of a lawsuit brought by CLF and the Charles River Watershed Association, EPA required last February that the plant owner, TriGen Corporation, build a “closed-cycle” cooling system that will reduce the water withdrawal and discharge of heated water into the Charles River by approximately 95%. Brayton Point in  Fall River, MA will finish construction of its new cooling towers in 2012, dramatically reducing its harmful impacts on Great Hope Bay.

Today, in another giant step forward, EPA issued a draft NPDES permit for Merrimack Station in Bow, NH, where heated discharge from the power plant’s old “once-through” cooling system has caused a 94 percent decline of the kinds of species that once lived in that part of the Merrimack River. CLF applauded the draft permit, which will require Public Service Company of New Hampshire (PSNH) to install and operate year-round a modern cooling system that will decrease the plant’s discharge of heated water by nearly 100 percent.

In a statement, issued today in response to the release of the draft permit, CLF called the requirements “long overdue.” Jonathan Peress, director of CLF’s Clean Energy and Climate Change program, said, “No matter what PSNH spends, it will not be able to turn this 50-year-old dinosaur into an economically-viable generating facility that benefits the people of New England. Still, as long as this plant remains in operation, it must comply with the law and we commend EPA for holding PSNH accountable.” Read the full statement here.