Meeting Massachusetts Requirements for Greenhouse Gas Reductions WHY MASS. MUST INCREASE RENEWABLE PORTFOLIO STANDARD
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MeetingMassachusettsRequirementsforGreenhouseGasReductions
WHYMASS.MUSTINCREASERENEWABLEPORTFOLIOSTANDARD
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RenewablePortfolioStandard
Todaywewill…• ProvidebroadoverviewofMass.energylegislation
• ExplainRenewablePortfolioStandard(RPS)andwhyitisimportantforclimatechange• Touchonadditionalcleanenergybills:100%Renewable,CarbonPricing
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Background:ImportantClimateLaws
• MassachusettsElectricUtilityRestructuringAct1997– EstablishedRPS
• GreenCommunitiesActof2008– AmendedRPS– ClassIdesignation,indefinite1%annualincrease
• GlobalWarmingSolutionsAct– 2008– 25%reductionsinGHGby2020– 80%reductionsinGHGby2050– 2030&2040“emissionslimit”butnospecific%ordeadline
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GWSA&Kain Decision• GWSA“4.(a)Thesecretaryshalladoptthe2020statewide
greenhousegasemissionslimitpursuanttosubsection(b)ofsection3whichshallbebetween10percentand25percentbelowthe1990emissionslevelandaplanforachievingsaidreduction.”
• 3(d)“Thedepartmentshallpromulgateregulationsestablishingadesiredlevelofdecliningannualaggregateemissionlimitsforsourcesorcategoriesofsourcesthatemitgreenhousegasemissions.”
• May2016SJCunanimousdecision– MassDEPnotincompliancewith3(d).
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WhatistheRenewablePortfolioStandard(RPS)?
• Requirementthatelectricitysupplierssourceaminimumpercentageoftheirsupplyfromqualifyingrenewableresources
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• “ClassI”=NEW(builtsince1998),“ClassII”=OLD(built1997orbefore)
• Eligibleresources:wind,solar,anaerobicdigestion,smallhydro,others.
• InMA,municipalelectricutilitiesareEXEMPTfromRPSrequirements.• 41muni’ssupply50towns,representing14%
ofelectricityload
WhatistheRenewablePortfolioStandard(RPS)?
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• ElectricitysupplierswhofailtomeetRPSrequirementspayAlternativeCompliancePayments(ACP)
• ACPpaymentsinMAareinvestedinprogramsandprojectsthatpromotethegrowthandadoptionofrenewableenergyresourcesandfossilfuelalternatives(e.g.,RenewableThermalrebatesissuedbyMassCEC)
WhatistheRenewablePortfolioStandard(RPS)?
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RPS:Climatestrategy,integraltoGWSACompliance
Graphillustrates%renewablesupplyachievedundercurrentRPS(blue)andwithatleast2%increaseproposedinRep.Khanbill(red).
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RPS:Climatestrategy,cont.
• GWSAmandatesGHGemissionreductionsof25%by2020,80%by2050.
• GWSAcompliancerequires:1) Electricgridtobepoweredbyrenewableenergyratherthan
fossilfuels;2) Moreofoureconomytobepoweredbyelectricity,especially
transportationandheating.• CARScanrunonelectricity!• HEATINGfuels(oil,“natural”gas)
canbereplacedbyheatpumps
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RPS:Driverofdemand,economiccontributor.
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RPS:Driverofdemand,economiccontributor,cont.
• Reducesdemandfornaturalgas• Sendsmarketsignalthat
demandforrenewableenergyisconsistent,enduring
• Sustaineddemandmakesprojectsfinanceable… investorsfeelmoresecureinvesting!
• Newprojectscomingonlinebringlocalandregionaleconomicbenefits.
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CleanEnergy=JOB$
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29stateshaveRenewablePortfolio/RenewableEnergyStandardsinPlace
• Eachstate’sRenewablePortfolioStandardisdifferent,butMassachusettshasanespeciallyhighstandardforwhatconstitutesClassIeligiblecleanresource.
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•Helpusmeetlegalmandateof25%by2020,80%by2050• Ideallyadditionalinterimgoals•Currentrateofincreasesimplynotenoughtomeetourgoals
•HelpusmaintainclimateleadershipinageofTrump• Statesmustlead,andlooktoMass.inparticular
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WhyRPSIncrease?
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StateRPSs:Massfallingbehind
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WhyRPSincrease,cont.•Morerenewableenergymeans….•moreJOBS!• BetterECONOMYasenergy$$stayshere!($22Bayear)• BetterHEALTH!• NoPIPELINEScostingbillionsandcuttingthroughconservationlands!
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RPSBillsH.2700,Rep.KayKhan(D-Newton)◦ increaserateofincreaseto2%fromcurrent1%◦ EndmuniexemptionfromRPS
H.1747– Rep.PatHaddad(D-Somerset)S.1880– Sen.MarcPacheco(D-Taunton)
NEXTSTEP
◦ BillmustbevotedoutofTelecom,UtilitiesandEnergy(TUE)Committee
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OtherImp.CleanEnergyBills
S.1849- Sen.JamieEldridge(D-Acton)AnActtransitioningMassachusettsto100%RenewableEnergyH.1726– Rep.JenBenson(D-Lunenberg)AnActtoPromoteGreenInfrastructure,reducegreenhousegasemissions,andcreatejobs• Wouldintroduceapriceoncarbondioxidepollution,with20%oftherevenuesdedicatedtogreeninfrastructure,andtherestrebatedaccordingtoprogressiveformula.
NEXTSTEP
◦ BillsmustbevotedoutofTelecom,UtilitiesandEnergy(TUE)Committee
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AdditionalResources
RPSProgramOverviews&HelpfulAnalysesEOEEA:http://www.mass.gov/eea/energy-utilities-clean-tech/renewable-energy/rps-aps/
DSIRE(DatabaseofStateIncentivesforRenewables&Efficiency):http://programs.dsireusa.org/system/program/detail/479
LawrenceBerkeleyNationalLab(LBNL): https://emp.lbl.gov/projects/renewables-portfolio
Questions?EmilyNortonMassachusettsDirector617-423-5775emily.norton@sierraclub.org
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