Not a moment too soon, the Massachusetts Legislature has enacted important new clean energy legislation that will maintain the state’s momentum in advancing clean renewable energy solutions like wind and solar energy. We breathed a sigh of relief as the final favorable votes were taken on July 31 – the very last day of the Legislature’s formal 2-year session – sending to Governor Patrick’s desk An Act Relative to Competitively Priced Electricity. The legislation includes key provisions that are essential for ensuring Massachusetts reaches its renewable energy targets. And this highly welcome development comes in the nick of time, just as existing programs are hitting their limits.  This means we can avoid a solar slowdown and keep the wind blowing behind the state’s clean energy revolution.

CLF celebrates the new Massachusetts energy bill together with the Green Communities Act Coalition (GCA Coalition) – a diverse coalition of business, labor, environmental, clean energy, low-income and other stakeholders who advocate for strong clean energy policies in Massachusetts. The GCA Coalition, which is co-led by CLF and the New England Clean Energy Council, came together in Fall 2011 in the face of attacks by clean energy skeptics who wrongly suggested that Massachusetts cannot afford clean energy. Since then, the GCA Coalition has worked together to bring forward facts demonstrating that clean energy is one of the most promising areas of economic growth, and that it is delivering considerable economic benefits. (See here for a helpful myth v. fact sheet.)

The new energy legislation, which some have dubbed “Green Communities Act – Part II”, builds on the tremendous success of the 2008 Green Communities Act, which is delivering hundreds of millions of dollars of net economic benefits while dramatically boosting the deployment of energy efficiency and renewable energy. The new Energy Bill will ensure continued growth of the state’s renewable energy programs with an even greater focus on affordability. This is a win for the environment, public health, jobs and the economy.

So, what exactly will the new Massachusetts Energy Bill do?

Central to the Energy Bill are provisions that will extend two critically important renewable energy programs: long-term renewable energy contracts and “net-metering”:

• The Energy Bill requires electric utilities to work together to sign additional long-term (10-20 year) contracts for the purchase of renewable energy to meet 4% of total customer demand.

 » This is in addition to the long-term renewable energy contracts the utilities already have signed under the existing 2008 Green Communities Act (which established a 3% minimum) — bringing the total amount of renewable energy long-term contracts to at least 7% of the electricity that is consumed in Massachusetts.

» Contrary to some confusing media reports, this requirement does not change the overall amount of new renewable energy that electric utilities must purchase each year (currently at 7% of all electricity consumed, and increasing by 1% per year). Instead, it only increases the extent to which utilities buy that energy using long-term contracts instead of spot-market purchases or alternative compliance payments.

» Long-term contracts are a win for renewable energy projects and customers alike.  Such contracts have become essential for getting new renewable energy projects built because the developers can show lenders that they will be able to re-pay their loans. This translates into lower financing costs, and those savings are passed on to electric customers.

» The Energy Bill generally requires utilities to jointly solicit and enter long-term renewable energy contracts, and competitive bidding will be required. Based on prior experience in Massachusetts, land-based wind energy projects are likely to be particularly successful in securing long-term contracts under the new law. In addition, the mechanism for joint solicitation should provide opportunities for larger projects to compete to sell their power to all Massachusetts customers.

» This expanded renewable energy long-term contracting program is likely to be an important complement to the agreement reached on July 30 by the New England Governors to work together to implement a regional renewable energy purchasing commitment.  Massachusetts already is ahead of the curve and well situated to help lead the region to success!

• The Energy Bill also will significantly expand existing renewable energy “net metering” programs, providing an important boost to smaller scale clean energy projects throughout Massachusetts:

»  “Net-metering” makes small-scale renewable energy installations more affordable by ensuring that homeowners and small businesses will be compensated fairly – at retail rates – for excess power that they deliver into the electric grid.

»  The Energy bill doubles the existing net-metering program limits, up to 6% of total electricity consumed in Massachusetts (3% from publicly owned facilities, 3% from privately owned).

»  The bill also allows anaerobic digestors – projects that convert organic waste to energy – to qualify for the program for the first time, together with small wind and solar projects.

These provisions are hallmarks of a critically important clean energy bill that will maintain clean energy momentum as we enter the summer doldrums.

The Energy Bill also is noteworthy for what it does not include:  e.g., significant clean energy program rollbacks that were championed by skeptics, and provisions that risked locking in new fossil fuel fired generation.  Whew!

So please join us in applauding the Massachusetts Legislature and the Patrick Administration for advancing an important and balanced Energy Bill that will keep clean energy growing!

This spring, clean energy is sprouting up all over Massachusetts. The Commonwealth is now in a terrific position to further solidify its promising trajectory and show the nation how it’s done – so long as we take a few critical actions.

By necessity, CLF and others continue to play serious defense. This includes directly confronting the region’s dirty and uneconomic coal plants, and partnering with local advocates to fend off new power generation facilities that would increase air pollution. This work continues to be an essential part of what we do.

But equally important is our work to advance clean energy solutions. This work is about “keeping the lights on” while reducing the pollution that contributes to climate change and worsens asthma attacks and other health impacts. In the wake of some energizing recent events, let’s take a moment to reflect on the progress we’re making in Massachusetts on the clean energy solutions side of the equation and what we need to do to keep it up.

Governor Patrick Fires Up the Troops

In a rousing and inspired clean energy address before over 200 clean energy leaders last week, Governor Patrick touted Massachusetts’s long list of recent clean energy achievements. It’s an impressive list, including a suite of forward-looking clean energy laws enacted in 2008: the aptly named MA Green Communities Act, Global Warming Solutions Act, and Green Jobs Act. These policies not only are reducing power plant pollution, they also helped spur the clean energy sector to become one of the few bright spots in the recent recession – with more than 60,000 new clean energy jobs in MA alone. At a time when families are struggling, this is indisputably good news.

Particularly inspiring was the Governor’s connecting of clean energy dots: as he noted, we can replace all of Massachusetts’ remaining dirty and uneconomic coal-fired power plants with clean offshore wind. This isn’t pie-in-the-sky futuristic thinking. We already have the tools we need to get the job done. With further contributions from other renewable energy resources, we can redirect the billions of dirty fossil fuel dollars Massachusetts currently sends out of state and instead re-power the Commonwealth with clean alternatives that promote local jobs and improve public health.

Reinforcing that everyone can and should be part of the solution, Boston Bruin Andrew Ference joined the Governor in touting the Massachusetts green revolution. Ference leads by example: he conserves energy by riding a bike, walking or taking the “T” to get around, recycling and composting. All of these simple and healthy alternatives reduce energy waste and associated energy impacts. And the Commonwealth must continue to bring the same dedication and ferocity to the fight for clean energy as Ference does to the rink.

Toughest environmentalist around Andrew Ference May 30, 2012

Cape Wind Hearings Reflect Major Shift

Further evidence of the clean energy revolution in Massachusetts came through a series of Department of Public Utilities (DPU) public hearings in May. The hearings provided opportunities for the public to comment on a 15-year contract for the sale of some of the Cape Wind offshore wind energy project’s output to NSTAR electric. Even at the hearing on Cape Cod, where some opposition long has simmered, Cape Wind supporters vastly outnumbered opponents. The shift more strongly in favor of clean energy was palpable. Dozens of people lined up, often waiting for hours to say that they are willing to pay a modest premium for clean energy from Cape Wind.

One notable dynamic that was not reflected in media reports: an overwhelming number of young people and parents spoke in support of purchasing Cape Wind’s clean power. It’s about choosing a thriving future.

Massachusetts is on a roll. But we cannot afford to stall out just as we’re on the crest of the clean energy wave. Here’s what we need to do now:

• Enact MA Green Communities Act Part II. The 2008 MA Green Communities Act has been a resounding success, propelling Massachusetts to the head of the nation with respect to reducing energy waste, saving Massachusetts hundreds of millions of dollars (and counting), and giving a much-needed boost to the deployment of clean, locally available renewable energy sources such as wind and solar. But some of the Act’s modest programs soon will be maxed out. Fortunately, the MA Senate recently took action through Senate Bill 2214 to build upon the 2008 Act’s key renewable energy programs. Now, we look to the MA House of Representatives to take action to advance these key clean energy measures to the Governor’s desk by July 31.

• Fully implement the Massachusetts Global Warming Solutions Act, including the adoption of regulations to reduce greenhouse gas emissions. The 2008 Global Warming Solutions Act requires Massachusetts DEP to adopt regulations to keep Massachusetts on track to meet its clean energy and climate objectives. Among other advantages, such regulations will provide clear signals to the burgeoning market for clean energy alternatives, and will ensure that global warming pollution is reduced gradually over time. Despite the law’s clear mandate, DEP blew the January 1, 2012 deadline for adopting these critically important regulations. To ensure MA stays on track to meet its 2020 target, it’s essential that DEP take action to adopt smart, effective regulations without further delay.

• Get Cape Wind over the finish wire. More than a decade in the permitting and environmental review process, this project is primed to go forward and begin delivering huge amounts of clean power. CLF will continue to advocate before the Massachusetts DPU for approval of a 15-year contract for Cape Wind to deliver 27.5% of its output to NSTAR Electric customers.

There’s no question that Massachusetts has made tremendous progress on clean energy in the past few years. But as the Governor wisely noted in his clean energy address last week, “winners don’t stand still.” So, Massachusetts, let’s keep moving!