Energy Special Update
Energy Special Update
June 2007
Connecticut: HB 7432, An Act Concerning Electricity and Energy Efficiency
Maine: LD 1851, An Act to Establish the Regional Greenhouse Gas Initiative Act of 2007
We have significant energy and climate policy successes to celebrate in the Northeast as the current legislative sessions come to a close. Laws passed in Connecticut and Maine in June call for historic advances that will increase investments in energy efficiency and other clean, local energy sources, reduce greenhouse gas emissions and save New Englanders money on their utility bills. Environment Northeast played a leading role in the bills' passage, drafting policy language, initiating negotiations with business interests and spending countless hours advocating for the comprehensive energy packages in both state houses.
Connecticut: HB 7432, An Act Concerning Electricity and Energy Efficiency
Connecticut's energy bill, signed into law on June 4th, advances energy efficiency, reforms utility incentives to encourage conservation and makes energy planning more transparent. The comprehensive bill:
- requires utilities to purchase all available energy efficiency and demand-side resources that are cost-effective, reliable and feasible to meet demand -an historic break from the past;
- creates a new board of consumer, environmental, business and state agency representatives, assisted by expert consultants, to review the utility procurement plan;
- eliminates the incentive for both electric and gas utilities to sell more energy to earn more revenue by decoupling revenue recovery from sales;
- creates the nation's first home heating oil efficiency program; and,
- adopts advanced efficiency standards for nine appliances sold in CT and for furnaces and boilers purchased by the state.
The bill also formalizes Connecticut's membership in the Regional Greenhouse Gas Initiative (RGGI), the cap and trade program designed to reduce CO2 emissions from the Northeast's largest power plants by 10% by 2019. The bill includes provisions that will further help the state reduce emissions and consumer energy costs:
- All allowances will be auctioned, and proceeds from the auction will be invested in cost-effective energy sources such as efficiency, demand response, and renewables.
- Small portions of the proceeds will be set aside for program administration and for voluntary purchases of renewables and combined heat and power systems.
Maine: LD 1851, An Act to Establish the Regional Greenhouse Gas Initiative Act of 2007
The new Maine law is a product of negotiations between environmental groups and Maine's manufacturers. It makes critical reforms to the state's energy efficiency policies and formally brings Maine into RGGI. The legislation:
- eliminates the prior cap on the system benefit charge (SBC) for energy efficiency, which was the lowest SBC of any New England state;
- requires the PUC to make additional assessments in utility rates in an amount necessary to realize all available cost-effective efficiency;
- requires 100% of RGGI allowances to be used for consumer benefit, and that the proceeds of auctioning RGGI credits (likely $10-25 million per year) to be deposited in the newly established Energy and Carbon Savings Trust;
- provides that the first $25 million (estimated) of proceeds from such auctions must be invested in new energy efficiency programs developed and managed by the Trust; and,
- establishes the Maine Energy Conservation Board, comprised of diverse consumer and public interests, which will work with the PUC and the Trust to create a 3-year plan for promoting quality efficiency programs.
Rhode Island: Implementing S 2903, The Comprehensive Energy Conservation, Efficiency and Affordability Act of 2006
The Rhode Island Governor's Office nominated ENE Policy Advocate and Attorney Sam Krasnow for appointment to Rhode Island's new Energy Efficiency and Resource Management Council (EERMC). The EERMC is a stakeholder planning board established as part of the comprehensive energy package passed in Rhode Island in June 2006. The Council will oversee the implementation of new procurement mandates included in the legislation, such as the procurement of all cost-effective efficiency and demand-side resources before traditional supply. The comprehensive bill set the precedent for the policies recently adopted in Connecticut and Maine, and it will continue to be an important model. ENE will use its leadership role to ensure that the policies are implemented in a way that maximizes environmental and economic benefits.
