Q1 Update 2006
Quarter 1 Update
January, February, March 2006
Clean Air: ENE's New England Diesel Initiative
Energy
The Northeast has a pressing need to improve how it uses energy. High energy prices that hurt all consumers and send billions of dollars out of the region, a lack of indigenous energy resources, and state and regional efforts to move forward with greenhouse gas reductions are compelling reasons to reform our utility and energy system. This quarter, ENE intensified our efforts to advance sustainable energy policies at the regional level and in the Connecticut, Rhode Island, and Maine legislatures. We are seizing opportunities to expand energy efficiency in major energy markets, such as when utilities procure contracts to meet their customers’ energy needs, when states create incentives to build more power plant capacity and when the regional power grid acts address concerns over inadequate power supplies in the region. ENE is working to remove discriminatory regulatory barriers to efficiency; we are, for example, promoting regulations that break the link between utility revenue and the sale of energy. ENE is also working to advance clean, small distributed generation and to improve state government and regional entities’ energy policy planning. Our efforts extend to natural gas and home heating oil. The high prices of these fuels are hurting consumers and make them a high-priority target for conservation policies. Using natural gas and oil more efficiently is also one of the leading, most cost-effective ways to reduce greenhouse gas emissions.
Rhode Island -- ENE became deeply engaged in energy work in Rhode Island this quarter. ENE teamed up with other groups and the state’s largest industrial user group, TEC-RI, to create a coalition called POWER — Protecting Our Workers, Economy and Resources. ENE prepared background data and drafted legislative proposals that are currently moving through the legislative process. The proposals address many of our highest priorities: fuel oil efficiency, particularly for low-income consumers; improved oversight of efficiency programs; incentives for distributed generation; reforming the way natural gas and electric utilities earn revenue so that utilities no longer have the incentive to sell more power to earn more income; and most importantly, least-cost procurement of natural gas and electricity, a provision that could greatly expand the capture of energy efficiency resources.
Connecticut – In an effort to avoid the imposition of expensive federally mandated fees, Connecticut legislators are developing provisions to encourage more power plant construction. ENE is working to influence this broad legislative effort, House Bill 5525, An Act Concerning Energy and Technology, by advancing energy efficiency as a qualifying resource. To promote efficient use of home heating oil and natural gas, ENE launched an awareness campaign called HEET — Heating Energy Efficiency for Tomorrow --to encourage policymakers to expand energy efficiency investments for these fuels. Providing extensive economic and environmental data, ENE’s HEET campaign emphasizes the importance of reducing demand in the face of skyrocketing fuel costs. The related legislation, An Act Concerning Natural Gas and Oil Conservation, (HB 5261) would establish minimum funds for programs to help consumers use natural gas and home heating oil more efficiently. The funds would be dedicated to programs that offered incentives for consumers to purchase new, more efficient heating and cooling equipment or to tune up old equipment and would provide assistance weatherizing existing homes or incorporating efficiency into new building designs. ENE organized a coalition of environmental, consumer, business, and labor groups to help support and publicize the initiative. In addition to having consumer and economic benefits, increasing natural gas and home heating oil efficiency are two of the best ways to reduce greenhouse gas emissions in the state. ENE is working to advance An Act Concerning Energy Efficiency (HB 5523) — regarding renewables, efficiency standards for appliances and buildings and long-term procurement of energy and capacity. We are also intervening in regulatory proceedings related to natural gas demand and distributed generation.
Maine -- Environment Northeast’s regional policy work on energy efficiency is reflected in multiple bills before the Utilities and Energy Committee this session. Of highest priority is the An Act to Enhance Maine’s Energy Independence and Security (LD 2041). The bill, approved by the Utilities and Energy Committee in March, calls for important steps toward a sustainable energy system : it authorizes the PUC to treat energy efficiency as a resource that can be procured for service provided to 99% of the state’s consumers; authorizes the PUC to direct the utilities to enter long-term contracts for energy efficiency and new renewable energy; and establishes a state policy goal of increasing new renewable energy supply in the state 10% by 2017.
Historic Agreement Advances Efficiency in New England Power Pool -- Since 2003, when ENE worked successfully to include energy efficiency, for the first time, in a regional power pool’s options for addressing energy demand in Connecticut, we have been working with regulators and others to open the entire regional power pool to the low-cost advantage of energy efficiency. In March, an exciting and historic agreement was reached with the New England power pool operator, allowing energy efficiency to qualify as an energy resource in meeting power needs in the region.
ENE continues to work with public utility commissioners and others to advance this policy in the region and ensure that it lives up to its potential.
Climate Change
Refining RGGI -- ENE joined others in celebrating a milestone in the RGGI process when seven northeastern state governors agreed to adopt a first in the nation cap-and-trade program in December 2005. Our participation as a leading stakeholder has continued. A draft model rule was released this quarter and ENE has prepared recommendations for how the rule could be revised and expanded to increase its environmental and economic benefits. We have submitted comments to state agencies with well-researched recommendations for strengthening the RGGI rule, including ideas about where cap levels should be set, how consumer allocations should be distributed, and how carbon offsets might be incorporated. ENE is strategizing with state agencies in the region to ensure that the rulemaking processes earn broad stakeholder support. We participated in the Climate Change Stakeholder Dialogue in Rhode Island and testified before the legislature in favor of Rhode Island joining the cap-and-trade program. We are pleased to be playing a recognized role as the northeastern states move toward reducing the pollution that causes global warming.
ENE Presents Forest Carbon Sequestration Findings in Washington, DC -- In February, ENE’s Michelle Lichtenfels presented preliminary findings from our Forest Carbon Sequestration project at a conference hosted by the Pinchot Institute for Conservation (Pinchot Institute) in Washington D.C. Our study, which we conducted in partnership with the Maine Forest Service, identified the potential for carbon sequestration in both on-site biomass and off-site wood products for the northern hardwood forest type, identified management strategies that would increase carbon storage, and highlighted potential financial incentives to encourage landowners to adopt these practices. ENE is drafting state-specific policies for Maine that will include recommendations on a specific forest-sector greenhouse gas accounting program , as well as describe strategies for aggregating landowners and giving them incentives to participate in a state-level carbon program. ENE is working with the Pinchot Institute and the Trust to Conserve Northeast Forestlands (TCNF) to identify small- and large-scale landowners, policy makers, and members of the wood-products industry to participate in this process. ENE hopes to establish a statewide policy that will allow landowners to participate in the carbon market and reward them for adopting management practices that reduce greenhouse gas emissions. This project is the first of its kind in the Northeast, and its implementation would set an important precedent for climate change policy in the region.
Regional Climate Change Policy Outreach -- In February, members of our staff met with the Conservation Council of New Brunswick and NESCAUM to discuss opportunities to influence the policy discussions that will take place during the New England Governors-Eastern Canadian Premiers Conference in May. These collaborations will help us develop and promote an effective, region-wide advocacy and policy strategy. ENE continues to move forward with research and preparation of our Climate Change Roadmap for New England and Eastern Canada. This report, which covers 11 states and provinces, will address key solutions to the challenge of global warming in the energy, transportation and forestry sectors.
Clean Air: ENE’s New England Diesel Initiative
ENE’s New England Diesel Initiative has led to the creation of coalitions that are actively advancing diesel emissions reductions through legislation and community outreach in three states. In 2005 ENE helped draft and pass An Act Establishing a Connecticut Clean Diesel Plan, which required that the Connecticut Department of Environmental Protection create a plan to reduce particulate matter from diesel engines by 75 percent by 2015. On behalf of the Connecticut Alliance Against Diesel Pollution (CAADP), ENE outlined our view of the top policy priorities for 2006 implementation to:
- Maximize emission reductions from school buses by 2010 to protect all Connecticut school children
- Adopt contract terms to ensure that diesel equipment on large, state-funded construction projects is equipped with pollution control technology;
- Apply U.S. EPA’s new engine emission standards for PM2.5 (fine particulate matter) to all Connecticut transit buses by retrofitting or replacing older buses by 2010;
- Create a dedicated Diesel Risk Mitigation Fund to maximize Connecticut’s opportunity to attract federal matching dollars and defray the costs of pollution control equipment.
An Act Reducing Diesel Emissions Inside School Buses (SB 291) would significantly reduce or eliminate emissions from the crankcase, the most likely source of in-cabin PM2.5. An Act Concerning Clean Diesel and Biodiesel (SB 642) includes provisions for all of CAADP’s top priorities. These bills, including amendments proposed by ENE, are moving through the legislative process. ENE coordinates the CAADP steering committee and we are working to broaden the alliance by encouraging public health, labor, school, faith-based and other groups to join.
Busy with Anti-Idling in Rhode Island --Idling diesel vehicles are among the many sources of harmful particulate matter (PM2.5) to which Rhode Islanders are commonly exposed. ENE drafted legislation that would put strict regulations on idling and therefore significantly reduce diesel emissions. Both the House and Senate are considering legislation based on the language we submitted. Also before the Rhode Island House is the “Act Relating to Motor Vehicles — Diesel Emissions Reduction” that would direct the development of a comprehensive plan for achieving 75% emissions reductions by 2015, including near-term reductions from school and transit buses and state-funded construction vehicles. ENE is working with our coalition partners, the Rhode Island Diesel Initiative that we formed in 2005, to advance these solutions to diesel emissions in the state.
Clean Air in Massachusetts -- ENE entered new territory in the fight against diesel pollution this quarter by expanding our outreach and policy efforts in Massachusetts. We are coordinating the Diesel Advocacy Coalition — a network of environmental and community groups — and have developed work plans for diesel education and advocacy in 2006. ENE experts were invited to present detailed information and policy recommendations to the Director of Air, Energy and Waste Policy at the Executive Office of Environmental Affairs to assist his agency in developing a comprehensive diesel initiative for consideration in the governor’s budget. ENE also submitted written testimony in support of HB 4719, which would require emissions controls on construction equipment under state contract. We will continue to educate the public about the health and environmental problems associated with diesel pollution and to work with policymakers to develop comprehensive regulations that address those risks.
Outreach and Communications
ENE is pleased to be invited to speak on climate change solutions and energy policy advances at the following major events. On May 2 ENE will present analyses of RGGI and regional climate change and energy policies at a meeting of US and Canadian climate advocates in Ottawa and present recommendations on shaping the model rule at the RGGI meeting in Hartford, CT. On May 10, ENE will chair a panel on energy policy and climate change at the Maine Global Warming Conference in Portland, ME. On May 11, ENE will present on an energy panel at the annual meeting of the Council of State Governments in Boston. On May 13-14, ENE will join expert panels to speak on energy efficiency and clean energy policies at the next meeting of the Conference of New England Governors and Eastern Canadian Premiers in Newport, RI.
