Massachusetts Energy Reform

Background

Energy advocacy in Massachusetts is of critical importance, not only to the Commonwealth but to the region as a whole. ENE recently engaged in intensive efforts to develop a policy...
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The Green Communities Act (2008 Mass. Acts c.169) was the result of coordinated efforts amongst environmental and consumer advocates, business, utilities, lawmakers and other stakeholders to identify and advance policies that will help the state reach its GHG emissions targets while strengthening the Commonwealth’s economy.

Some of ENE’s top priority energy reforms contained in the Act include:

• utility procurement of all cost-effective energy efficiency for electric and natural gas customers
• new energy efficiency procurement stakeholder council
• an increase in the RPS requiring utilities to get 15% of their power from renewables by 2020
• adoption of most up-to-date building energy codes to encourage development of high-efficiency combined heat and power (CHP)
• allocation of at least 80% of auction revenues from sales of RGGI emissions allowances to help fund increased investments in energy efficiency programs

A strong and diverse coalition of stakeholders supported the legislation -- including ENE and other environmental advocates, business community members, multiple utilities, low-income advocates, administrators and legislators. All collaborated to craft legislation that would deliver real environmental and economic benefits.

ENE was appointed to the Energy Efficiency Advisory Council the stakeholder board that was established to oversee and support the implementation of the Green Communities Act and the expansion of efficiency programs in the Commonwealth. The Council works with numerous stakeholders to coordinate with natural gas and electric program administrators, efficiency providers, consumer representatives and others to develop cost-effective programs that help save energy in homes and businesses.

As a result of the new mandate, gas and electric efficiency programs have already expanded for the 2009 program year in anticipation of an even greater ramp up over the next three years.  The Council has been working closely with program administrators to develop a set of 3 year efficiency plans in order to put Massachusetts on a path to achieving all cost-effective energy efficiency. 

The Council is also working to secure other sources to support increased efficiency investments, including proceeds from cap and trade programs, the Forward Capacity Market and outside investor capital.  

In addition to broadening the programs overall, ENE has been working to expand access to cost-saving efficiency to those sectors that face unique obstacles, including low and fixed income customers, small businesses and residents in multi-family housing units. 
 

Complementing the Green Communities Act, the Massachusetts DPU passed an order that decouples utility revenues from sales. ENE was a leading voice in advocating for the order because decoupling aligns utility and consumer incentives, paving the way for significant increases in efficiency investments.  ENE is now engaged in implementing the decoupling order through ongoing rate cases for some of the state’s largest utilities..

Massachusetts also enacted the Global Warming Solutions Act,which provides for an economy-wide cap on greenhouse gas emissions.  The GWSA complements the policy goals of the Green Communities Act by placing enforceable targets on emissions.  Collectively, these initiatives establish a clear path for achieving a cleaner energy supply, reducing reliance on polluting fossil fuels, and cutting carbon emissions.