4th Quarter 2008
Note from the Executive Director
2008 in Retrospect and Looking Ahead to 2009
In his inaugural address, President Obama acknowledged that the nation is facing serious challenges, but he also highlighted the opportunity to use the current crises as a launching point for improved policies and systems. The President issued a call to action and made it clear that governments and the American people should be ready to embrace solutions that put the country on a new path characterized, among other things, by a more responsible use of and more equal distribution of natural resources and wealth. ENE welcomes this special, historic moment for our work, which is governed by the principles of sound research, honest information, consumer benefits and making smart economic choices to build the programs and infrastructure of a cleaner, lower cost, sustainable future. ENE is amplifying the scope of our successful energy and climate policies as we expand our efforts in transportation and land use solutions. We are pursuing regional, national, and US/Canadian cross-border coordination.
ENE has a strong foundation on which to build this new work. 2008 was a busy and remarkable year. ENE and our allies made notable progress toward achieving a sustainable future for the northeast. In particular, ENE played major role in advancing cutting-edge initiatives that reform the way energy is used, purchased and produced, helping states and provinces move towards achieving their greenhouse gas reduction goals. Through efficiency-first procurement policy, greenhouse gas cap and trade, and other innovative programs, northeastern states are now doubling commitments to energy efficiency - a resource that has been shown to be the lowest cost, most effective way to meet energy demand and reduce emissions. State and regional sustainable energy and climate policies are providing a platform for ENE to advocate for effective federal programs that supplement and build on the strengths of progress at the local level. In eastern Canada, the Nova Scotia and Prince Edward Island governments adopted energy and climate strategies and policies that put them on the path toward a cleaner environment and a more sustainable and affordable energy supply.
Our efforts to develop sound policy approaches to forests and carbon are gaining audiences not only at the state and regional level, but nationally as well. ENE's work promoting low or no carbon fuels, analyzing the potential for electric vehicles and the implications for the power grid, our recommendations on programs to help consumers reduce their home heating energy costs and our now deep engagement as a leading voice n the federal arena on how national energy and climate policies can be more effective at the state and regional levels are key areas of effort in 2009.
Please read on to learn more about the promising developments in the northeast, the strong finish to 2008, and our plans for 2009.
Memo to the Next President Re: Energy Efficiency
Eastern Canada Energy and Climate Policy Developments
Second RGGI Auction Raises Over $100 Million
Connecticut Announces Home Heating Conservation Program
Rhode Island Releases Efficiency Plan
Priorities for 2009
Memo to the Next President Re: Energy Efficiency
The nation and the region are looking for solutions that will increase energy independence and bring consumers some relief in the face of high energy costs and a slumping economy. ENE is using policy models, data and success stories from the northeast to advocate legislation at the federal level that integrates with and/or complements exisiting strategies for increasing investments in efficiency. ENE submitted detailed recommendations to the Obama transition team in support of including energy efficiency in an economic stimulus plan. Because of our national leadership role on this issue, ENE's recommendations were included in a collection of Memos to the Next President, compiled and published by the Progressive Policy Institute.
Efficiency programs and other demand-side mechanisms hold significant promise as resources that will help control energy costs, reduce emissions and bring new jobs and economic opportunities to the region. New policy developments at the state and regional levels in New England and eastern Canada mandate dramatically increased investments in efficiency and demand-side resources and institutionalize sustained support through planning processes. They position the northeast as a leader in this approach. ENE's efforts in Washington are aimed at expanding these policies to strengthen efficiency investments in the northeast and nationwide.
Eastern Canada Energy and Climate Policy Developments
PEI Releases Energy and Climate Strategy
In November, the Government of Prince Edward Island released its energy strategy as well as a climate change action plan. The goals, principles, and commitments outlined in the strategies will form the foundation of future energy and climate policy and program development in PEI. The energy strategy commits to establishing a planning process that prioritizes cost-effective electric energy efficiency and encourages utilities to procure energy efficiency when it is cheaper than conventional supply options.The province will establish an Energy Efficiency Advisory Committee to oversee this process. The PEI strategies also advance new building and appliance efficiency standards, transportation efficiency incentives, and call for collaboration on a low carbon fuel standard.
Nova Scotia Establishes Electric Efficiency Agency
Nova Scotia also made important progress with its energy policies. Nova Scotia announced it will establish an independent electric efficiency agency. It will be a publicly owned, not-for-profit company that is regulated by the Utility and Review Board and funded by ratepayers.
ENE's Canadian office was substantively involved in both the PEI and Nova Scotia processes, and the new policies reflect ENE's recommendations as part of ongoing outreach and collaboration with provincial policy makers and advocacy groups.
Second RGGI Auction Raises Over $100 Million
Northeast's Successful Cap and Trade Program Raises Money for Efficiency through GHG Permit Sales
The second auction of emissions allowances under the Regional Greenhouse Gas Initiative (RGGI) was held on December 17, 2008. In order to disseminate relevant information and increase market transparency, ENE released "RGGI Emissions Trends and the Second Allowance Auction," describing the regional emissions trends and supply-demand characteristics related to the inaugural RGGI allowance auction.
The report was intended to inform market participants and to facilitate the RGGI process by providing all interested parties with up-to-date information on emissions drivers, the impacts of new developments in energy and climate regulation are considered, and the implications of the recent financial downturn.
The first two auctions raised about $145 million. RGGI states have decided to auction almost 100% of allowances for public benefit, so a majority of this revenue raised through RGGI auctions will be channeled to energy efficiency programs at the state and local level. This funding will support proven electric and fossil fuel efficiency improvements that save consumers money and reduce the cost of RGGI program by lowering demand for energy and for allowances. The successful launch of RGGI and the use of allowances for public benefit set an important precedent for how cap and trade and efficiency mechanisms could serve as environmental and economic solutions at the federal level.
Connecticut Announces Home Heating Conservation Program
In November, Connecticut's Governor Rell announced a new program that will help oil and propane customers save on costs during the winter heating season. The program offers discounted rates for cleaning, tuning and auditing services for furnaces, heating systems and homes. These conservation measures will help customers use less fuel and lower their bills.
ENE is advocating investments in efficiency like the Connecticut program throughout the region as solutions that deliver both environmental and economic benefits.
Rhode Island Releases Efficiency Plan
The Rhode Island Public Utilities Commission (PUC) approved significantly expanded energy efficiency plans that will save consumers $90 million in 2009. The plan represents the first step that Rhode Island is taking to reform its energy policy by investing in lower cost, cleaner energy efficiency that reduces consumer bills and builds jobs in state.
The 2009 Plan is part of a larger "Least Cost Procurement Plan," developed in compliance with The Comprehensive Energy Conservation, Efficiency, and Affordability Act of 2006. The plan is expected save Rhode Islanders $280 million dollars over three years. It directs National Grid to significantly increase investments in energy efficiency measures for homeowners and businesses when they are cheaper than supply. ENE advocated for least cost procurement in Rhode Island and throughout the northeast, and efficiency policies developing in the states and provinces will help move the region toward a more sustainable and affordable energy future.
Priorities for 2009
ENE's work and highly credible analytic approach to issues are already finding important audiences in the new political climate in Washington. ENE is energized by the opportunities presented for our work and ideas, and we will redouble our efforts to develop and implement energy and climate solutions at the state, regional and national levels and across all GHG emission sectors. In 2009, ENE will:
Advocate for the best possible federal climate and energy laws and policies, bringing the lessons learned from leading edge state policy and RGGI to federal policymakers and Congressional leaders.
Advocate for strategic and sufficient funding for energy efficiency, renewable energy and other climate policies in the federal stimulus package and federal energy legislation in order to bring jobs, energy independence, and sustainable energy policy to our region and beyond.
Advocate for energy and climate policy models in the eastern Canadian provinces and coordinate with ongoing policy developments in the U.S.
Implement new efficiency procurement laws to triple efficiency investments, increase stakeholder involvement, and broaden community participation in efficiency programs.
Explore opportunities for reducing emissions from diesel and other vehicles, such as improved efficiency, alternative fuels and electrification, focusing on sensitive or hard-hit neighborhoods and sites with appropriate infrastructure.
Design and advance model policies for reducing GHGs, including: cap and trade programs, building and appliance efficiency standards, and mandates calling for cleaner and more efficient use of fossil fuels.
Develop guidelines and policies relating to biofuels, biomass, carbon market offsets, and land use planning to help the region maintain its forested landscape as an important carbon sink and renewable energy resource while still conserving its rich ecological values and multiple ecosystem benefits.
