Q1 Update 2009 Related Information
Federal Stimulus Invests Billions in Efficiency
ENE Database and New England Energy Trends Report
Climate Solutions: Forests and Land Use
New England Leads on Energy Reform
Reducing GHG Emissions from Transportation Sector
RGGI Raises Millions for Efficiency
Letter from the Executive Director
The new administration began a few months ago with the promise to deliver solutions that would unite and benefit all Americans. ENE and other advocates of climate and energy policy have been pleased to see that reducing our dependence on fossil fuels has emerged as an early priority. Revamping the country's energy system is critical -not only as a response to the threat of global warming, but also for our economy and security in general. In just a few months, new federal administration has taken some encouraging first steps, The stimulus bill included provisions for dedicating $3.1 billion to energy efficiency, which ENE was pleased to have played a role in shaping. And legislators are now reviewing the recently released Waxman-Markey bill to move forward with a federal greenhouse gas cap and trade system.
As the nation charts the path to a more sustainable energy future, the northeast region is in many ways a step ahead, offering real world examples of what this new system can look like.
Multiple states are planning to nearly triple efficiency spending under existing procurement mandates, and the RGGI program has conducted three successful auctions, proving that mandatory cap and trade can work and raising millions in allowance revenue that will go toward further reducing energy costs and emissions. ENE has been a leader in helping to establish these reforms over the last decade. We are working to take advantage of new enthusiasm and support at all levels of government to keep the region moving forward as well as to put the experiences and models from the northeast to work at the federal level. Resources such as ENE's New England Energy Trends and Policy Solutions report and the RGGI Auction Tracker provide stakeholders and the media with updated and useful data quantifying the impacts of energy and climate policies and related trends. Our testimony, summaries and comments on specific legislation such as the Waxman-Markey discussion draft include careful analyses and clear explanations of the proposals' economic and environmental implications.
-- Dan Sosland
Federal Stimulus Invests Billions in Efficiency
There is an important opportunity now to shift the national energy system to emphasize clean, affordable resources like efficiency and renewables. Leveraging state-level experience, ENE worked with the National SAVE Energy Coalition to advocate for significant federal funding to be directed to efficiency and renewables through state energy programs. The American Recovery and Reinvestment Act of 2009 includes:
$3.1 billion to expand existing efficiency and renewable programs;
$5 billion for weatherization of low income homes to conserve energy and reduce bills; and,
$3.2 billion for block grants to assist cities and towns in reducing energy consumption through efficiency improvements in buildings and transportation
See ENE Summary of State Efficiency Funding in the Stimulus for more information
ENE is working at the federal and state levels to develop implementation plans that will ensure these efficiency funds are implemented effectively through programs that deliver savings to consumers and maximize environmental benefits.
ENE is also joining with other stakeholders to advocate an Energy Efficiency Resource Standard and is tracking the development of a federal cap and trade program. ENE also produced a summary and preliminary recommendations of the American Clean Energy and Security Act (ACES, or Waxman-Markey bill) discussion draft.
ENE Database and New England Energy Trends Report
The impacts of high energy costs and emissions from fossil fuels have become a concern for consumers and government at all levels. Recognizing that good information on energy consumption is vital to sound decision making, ENE issued a new report that summarizes key data and analysis for distribution and access to the general public. The information presented includes consumption and costs of all fossil fuels such as home heating oil and gasoline, as well as their associated emissions.
The report draws on ENE's database of emissions and energy data, compiled from publicly available federal and state sources, including the U.S. Department of Energy's highly regarded Energy Information Administration (EIA). In addition to publishing reports and resources for the public, ENE uses this data to support its core program work.
The full New England Energy Trends and Policy Solutions Report and individual charts are available on ENE's Web site. The report will be updated twice a year.
Climate Solutions: Forests and Land Use
ENE played a leading role in developing policy recommendations embodied in the Climate and Energy Planning Act ("CEPA," or LD 1333) in Maine, which asks state agencies to factor climate impact and energy usage considerations into in their long-term planning, project and licensing decisions. Incorporating these issues into land use planning can help avoid increased emissions and costs or damages effects associated with climate change. Adopting policies like LD 1333 would help Maine and other states protect its resources and economy and keep the state on the path toward achieving its climate change goals.
"Bill would regulate land use to help slow climate change," Portland Press Herald, March 25, 2009
ENE and seven other advocacy groups submitted a Joint Letter to Congress on Forest Climate Policy which highlights the importance of forests as carbon sinks and highlights opportunities for including them in climate policy, such as through inclusion as an offset category or with additional conservation initiatives.
New England Leads on Energy Reform
Maine: ENE helped draft and is advocating LD 886: An Act to Secure Maine's Energy Future, a proposed bill that would help to advance the efficiency solution through two important measures:
- a Heating Fuel Efficiency and Weatherization Fund, which will remedy the lack of energy efficiency and weatherization programs available to Maine businesses and residents seeking help to manage their heating bills;
- and, Efficiency Maine Trust, a revised administrative model for efficiency programs in Maine that will improve efficiency and effectiveness and make sure these funds are well spent.
- See ENE's testimony in support of LD 886 and fact sheet for more about the proposed legislation.
Connecticut: The CT Department of Public Utilities issued an important decision approving a decoupling mechanism as part of a rate case for one of the state's major utilities. Decoupling breaks the link between sales volume and profits.The removal of this barrier opens the way for utilities and customers to become full partners in an effort to expand efficiency and conservation programs and reduce demand for fossil-fuel generated-power.
Rhode Island: The RI DPU recently approved a plan to bring efficiency investments up from about $15 million to $43 million by 2011. The plan was drafted by ENE, other members of the state's energy council, utilities and other stakeholders. The new efficiency measures funded by the plan are expected to save Rhode Islanders $280 million dollars over three years, in addition to creating 35 jobs for every $1 million invested and avoiding 1.6 million tons of CO2 emissions.
Reducing GHG Emissions from Transportation Sector
Pursuing a Low Carbon Fuel Standard
A low carbon fuel standard (LCFS) would require all transportation fuels sold in the region to meet declining standards for greenhouse gas emissions, measured by the carbon intensity of the fuel on a full life-cycle basis.This is an important policy for reducing the carbon impact of our transportation system as we reduce our reliance on foreign oil. ENE worked with environmental allies to advocate the LCFS concept in the region, and 11 RGGI states plus Pennsylvania have signed a Letter of Intent to pursue a region-wide LCFS. ENE will continue to work with allies and stakeholders towards a successful regional program, which could also provide a workable and effective model for an LCFS at the federal level. ENE will bring recommendations and analysis to help influence the policy discussions in D.C. as the Obama Administration and Congress are exploring an LCFS as part of the national climate strategy.
Other Research on Technology and Infrastructure
ENE is also working on research and other initiatives related to making the region's transportation system cleaner and more efficient. We are exploring solutions and issues related to technology and infrastructure, particularly as they intersect with land use policy, carbon caps and state climate plans, and electric energy planning and infrastructure.
For more information see the Transportation page on ENE's Web site.
RGGI Raises Millions for Efficiency
The northeast's precedent-setting cap and trade program, RGGI, has completed three successful auctions, which have raised $261,314,331 to support energy efficiency and other clean energy programs. A majority of the 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.
For example, Governor Rell of Connecticut recently announced that the $14 million now available will be distributed to the following:
- Department of Environmental Protection ($1.05 million) - to administer emission reduction programs in the state and develop a strategy to mitigate the effects of climate change. It includes assessing the impact on infrastructure, public health and natural resources.
- The Connecticut Clean Energy Fund ($3.28 million) - offers financial incentive and education program that encourage homeowners, businesses and others to use renewable energy.
- Connecticut Light & Power ($7.3 million), United Illuminating ($1.82 million), Connecticut Municipal Electric Energy Cooperative ($609,748) - energy conservation and efficiency programs.
- See the announcement from Governor Rell's office.
The other participating states are taking similar measures. For details and a state-by-state breakdown of RGGI revenues and allocations, see ENE's Auction Tracker. In addition to the tracker, ENE also issued a report on market trends at the time of the auction. We also recently published a paper with PPI highlighing lessons learned from RGGI that can be applied to federal climate policy development.For more information and resources related to RGGI, please visit our Web site.
