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!

Recently the Governor of Massachusetts gave a very inspiring speech describing both the affirmative steps that have been taken to address the challenge of building a thriving and clean economy in the Bay State and the challenges that still lie ahead.

The occasion was an event organized by the New England Clean Energy Council and hosted by high-tech startup FastCAP Systems and featured an array of interesting speakers leading up to Governor Patrick including a young woman who is the sole female crew chief at local energy efficiency provider Next Step Living, the Town Administrator of Scituate MA discussing their successful efforts to build a wind turbine and the toughest of environmentalists, Andrew Ference of the Boston Bruins.

The toughest environmentalist around: Boston Bruin Andrew Ference, speaking before Gov. Patrick, May 30, 2012

Governor Patrick, as has been reported, used the occasion to respond to criticism of the energy policy that his administration, and the Federal government, have been pursuing:

Our strategy of fostering a clean tech industry is sometimes derided as “picking winners and losers.” In fact government is doing what it is supposed to do: helping the state make the most of our competitive advantages. Investing in innovation, education and infrastructure. Putting policies in place that encourage private investment to meet our shared needs, creating jobs and leaving the Commonwealth better than we found it. And as I said, it’s what Americans have always done to shape our energy future.

 And by the way, let me tell you that I have heard enough about Evergreen – and for that matter about Solyndra. We are not always going to score. But we are never going to score if we don’t get in the game. One company that comes up short hardly discredits an initiative that has spawned 5,000 thriving companies and nearly 70,000 jobs and counting. Critics would do well to remember that I used to work in the oil industry, an industry that frequently drills dry wells. When the critics are ready to talk about the massive subsidies for Big Oil even when they drill dry wells, then I am ready to have a serious conversation about the tiny subsidies we use to foster a new, American-grown industry in alternative energy.

 Whether we like it or not, there are going to be winners and losers when it comes to clean energy in the 21st century. The winners will be those places that did everything they could to be ready for change, that created an atmosphere for and a culture of innovation.

But his message went beyond recognition of the growth in the clean energy sectors of the Massachusetts economy.  He also recognized “Winners don’t stand still, and if we want Massachusetts to stay a winner in clean energy, there is much more for us to do.”

His specific action items included putting solar panels on more rooftops and closed landfills, extending contracts to large-scale renewable energy developers,redoubling our commitment to squeezing every bit of efficiency out of our energy use and continuing our support of and participation in the Regional Greenhouse Gas Initiative, which he accurately described as “the single most successful cap and trade market in the country.”

All laudable goals, which he tied to moving forward a good energy bill in the Massachusetts legislature.

The Governor is right in taking pride in what has been accomplished in Massachusetts, most especially the ramp up in solar energy generation and energy efficiency. He is also correct in seeing these successes as a good starting point for even more action – and CLF as an advocacy organization is intently focused on this question of “what is next”, an attitude that perhaps led to the Governor’s public characterization (in response to a question at the same event) of CLF as an organization that shares his goals but “can be a bit of a pain in the ass . . . although that means you are doing your job.”

The next steps before us are clear, although not easy.  They range from appropriately funding the transit systems that provide clean and affordable transportation, to fostering urban “smart growth” to the essential (but wonky) energy policy details of expanded long term contracts for renewable energy projects across New England that supply energy to Massachusetts and expanded net metering and property tax relief for small renewable energy projects.

The time has come to have the courage of our convictions and the confidence to build on a winning record – recognizing that the struggle to build a thriving new clean energy economy that puts us a trajectory to meet the challenge of global warming will not be easy but that it is a challenge we can’t avoid, and that can bring our best.

Today, the Patrick Administration reached a breakthrough settlement agreement in the proposed merger between NStar and Northeast Utilities, which, if approved, will create one of the country’s largest public utilities. The agreement is a big win for renewable energy, as it positions Massachusetts to finally unleash the power of Cape Wind, our region’s most promising new clean energy source, and to lead the rest of the country forward on offshore wind.

The settlement ensures that this powerful new utility will be in lockstep with Massachusetts’ nation-leading clean energy policies and propel the state forward instead of backwards in implementing them.

This is a significant advancement for Massachusetts and all of New England in a number of regards:

• It removes the last major hurdle to building Cape Wind;
• It ensures that the Commonwealth will continue to reap the cost savings and environmental benefits of the Massachusetts Green Communities Act;
• It will help ensure that imported hydropower does not diminish other renewable energy deployment in Massachusetts and beyond;
• It will reduce barriers to installation and operation of small, distributed renewable energy generating facilities in Massachusetts; and
• It will freeze the merged utility’s rates for 4 years, will require transparent public review of NSTAR’s electric and gas rates before the rate freeze expires, and will deliver – upon approval of the merger – an immediate 50% credit to Massachusetts customers based on expected merger savings during the first 4 years following merger approval

We applaud the Administration for recognizing that a lot of ground needed to be made up in order for this merger to benefit the public and for covering that ground with thoughtful terms that benefit ratepayers and the environment both in the short and the long-term.

For the press release, as well as background materials on CLF’s long standing engagement on this issue, click here.

An incisive and clear essay by Peter Rothstein, President of the New England Clean Energy Council (NECEC), published on the Commonwealth Magazine website makes powerful and accurate points about the benefits of clean energy to the regional economy.  His analysis and arguments are deeply consistent with the points that CLF’s Jonathan Peress made in a recent entry on this blog outlining the benefits of the investments generated by the Regional Greenhouse Gas Initiative (RGGI) documented in a study by the Analysis Group.

Unlike the attacks on the clean energy programs that he is responding to, Rothstein backs his assertions up with facts and figures. Here is a long quotation from his essay:

Clean energy investments have many positive benefits, making our energy infrastructure more efficient and sustainable and while growing the regional economy. Though you might not know it from the headlines, the clean energy sector is one of the few bright spots in the economy, growing steadily throughout the recession – 6.7 percent from July 2010 to July 2011 alone. Massachusetts is now home to more than 4,900 clean energy businesses and 64,000 clean energy workers – 1.5 percent of the Commonwealth’s workforce. This job growth is not a transfer of jobs from other industries – it’s a net increase that results from the Massachusetts innovation economy creating new value for national and international markets, not just local.

 Clean energy is starting to grow in much the same way as the IT and biotech sectors, which took decades to become powerhouses of our innovation economy. Massachusetts clean energy companies have brought significant new capital from around the world into Massachusetts, earning the largest per capita concentration of US Department of Energy innovation awards. Massachusetts companies have also brought in the second largest concentration of private venture capital in cleantech, a sector which grew 10-fold over the last decade.

 Consumers, businesses, and the Massachusetts economy all win if we stick with policies that drive clean energy investments. The combination of efficiency and renewables prescribed by the Green Communities Act is a positive force to control costs and make bills more predictable for consumers. While the prices of natural gas and oil are anything but predictable, the impact of investing in renewables is clear and positive as these technologies continue to get cheaper. Solar costs have come down nearly 60 percent since 2008 while wind turbine prices have dropped 18 percent.

It is indeed good news that new technologies not only confront the brutal logic of climate change but also boost our economy by virtue of being sound investments.  At such times as these, we should treasure every bit of good news we find.

CLF has intervened in proceedings regarding the proposed merger of Northeast Utilities (NU) and NSTAR, which combined would create the third largest utility in the country and the largest in New England. CLF has intervened in the proceedings before the Massachusetts Department of Public Utilities (DPU) to ensure that the merger will only be allowed to go forward if it is “consistent with the public interest.”  This will require a thoughtful analysis of the merged utility’s long-term strategies for delivering energy while fully meeting the greenhouse gas emission reductions, renewable energy and energy efficiency requirements of the MA Global Warming Solutions Act and Green Communities Act.  It also will require a close look at the economic and environmental risks posed by the energy generation assets that would be owned by the merged utility.

One of CLF’s concerns is that NU subsidiary Public Service of New Hampshire (PSNH) owns and depends upon outdated, inefficient coal- and oil-fired power plants. These plants – which are obsolete and increasingly more expensive and less economic to operate – present risks and liabilities that would be spread to NSTAR’s ratepayers if the merger goes forward.  Another concern is that the merged utility might seek to weaken Massachusetts’ renewable energy standards, as suggested in some of the utilities’ public statements, allowing large hydropower to “flood” the market (pun intended!) and chill development of other renewable energy sources such as small wind and solar facilities.

Currently, the procedural schedule for the merger proceeding pending before the Massachusetts DPU has been suspended while the DPU considers whether to modernize the legal standard it will apply.  CLF and other parties have asked that the legal standard be adapted to account for changes in relevant laws, including the Global Warming Solutions Act and Green Communities Act.

Stay tuned as we await the DPU’s ruling and further action in the merger proceeding!