Massachusetts takes on climate change.

AuthorKimmell, Ken
PositionCompany overview
  1. INTRODUCTION II. A CHANGE IN THINKING: INTEGRATING ENERGY AND THE ENVIRONMENT IN THE SAME SECRETARIAT III. MASSACHUSETTS' ACTIONS TO REDUCE GHG EMISSIONS AND INCREASE ENERGY EFFICIENCY: NEW LEGISLATION A. Green Communities Act 1. Increased Energy Efficiency 2. Renewable Energy 3. Building Codes 4. The Green Communities Program B. The Global Warming Solutions Act C. Massachusetts Environmental Policy Act (MEPA) Greenhouse Gas Footprint D. The Oceans Management Act. E. The Clean Energy Biofuels Act F. The Green Jobs Act IV. MASSACHUSETTS' ACTIONS TO REDUCE GHG EMISSIONS AND INCREASE ENERGY EFFICIENCY: POLICY INITIATIVES A. Making a Difference at the Local Level B. State Leading by Example C. Decoupling Electricity Rates from Sales D. Regional Initiatives to Reduce Greenhouse Gas Emissions V. CONCLUSION I. INTRODUCTION

    Climate change is the most serious environmental challenge of our time. After years of inaction, bold solutions are needed. Efforts to lower the greenhouse gas (GHG) emissions that contribute to climate change must focus on reducing our demand on carbon-intensive electricity generation and fuels, and on increasing our supply of renewable energy.

    Massachusetts has been a leader in the fight against climate change by implementing a unique set of policies and groundbreaking legislation that will significantly reduce GHG emissions through early deployment of energy efficiency, renewable energy and new technology measures. By closely integrating energy and the environment in all climate initiatives, Governor Deval Patrick, in partnership with the state legislature, has established a strong and comprehensive framework to tackle the immediate need to reduce GHG emissions and, at the same time, promote a clean and green energy economy. Massachusetts' proactive programs and hands-on experience will be highly relevant as the new Obama Administration and Congress design a comprehensive national program to address climate change.

    The increasing concerns about the consequences of climate change, volatile fuel prices and the carbon dependency of the electricity sector led Governor Patrick to take a fresh approach to environmental protection, especially the intersection between energy and the environment. In January 2007, upon taking office, Governor Patrick took a bold step to make Massachusetts the first state to recognize the interdependence of energy and the environment, combining the state's environmental agencies and energy agencies into one cabinet level secretariat, the reconstituted Executive Office of Energy and Environmental Affairs. (1)

    In 2008, five key environmental laws were approved by the state legislature and signed by the Governor: the Green Communities Act, the Global Warming Solutions Act, the Oceans Management Act, the Clean Energy Biofuels Act and the Green Jobs Act. Each of these laws, together with several new groundbreaking policies, brings together the state's energy and environmental agencies to help Massachusetts achieve its goal of addressing climate change.

    In addition to these state initiatives, Massachusetts is participating in several regional partnerships to reduce GHG emissions. Most notable is Massachusetts' participation in the Regional Greenhouse Gas Initiative (RGGI), a voluntary, ten-state cap-and-trade program for C[O.sub.2] emissions that launched in 2008 the first-in-the-nation auction of carbon emission allowances. (2) Massachusetts has also initiated a regional effort to develop a low-carbon fuel standard with eleven northeastern and mid-Atlantic states. (3) Massachusetts' strong state, local and regional initiatives serve as excellent examples of what is possible for a federal climate change program in partnership with the states.

  2. A CHANGE IN THINKING: INTEGRATING ENERGY AND THE ENVIRONMENT IN THE SAME SECRETARIAT

    Massachusetts has always been a leader when it comes to innovative energy and environmental policy. But now Massachusetts is looking at the energy consequences of environmental choices and the environmental consequences of energy choices. Two years ago, Massachusetts was the first state in the nation to bridge the gap between energy and environmental agencies. Since then, we have fundamentally transformed the way we operate.

    Traditionally, energy agencies have focused on energy reliability, fuel diversity and electricity rates without considering the emissions impacts. Environmental agencies have focused on setting emission limits that push new technologies that reduce air pollution without full consideration of the energy impact. Climate change has forced us to look at the nexus between energy and the environment and how encouraging reductions in energy demand will benefit the environment and the economy.

    Since the reorganization, there has been unprecedented coordination between the state's energy agencies--the Department of Energy Resources and the Department of Public Utilities--and the state's environmental agencies--the Executive Office of Energy and Environmental Affairs and the Massachusetts Department of Environmental Protection (MassDEP)--in developing climate-related legislation, regulations and policies that put Massachusetts on the cutting edge. Instead of competing for resources and attention, MassDEP and the Department of Energy Resources are working together to achieve the same broad policy goals.

    Massachusetts' goals for energy and climate change are ambitious. Our climate goals are:

    (1) to implement new and continued programs that will achieve sizable reductions in GHG emissions;

    (2) to help consumers and business with their energy costs by removing the hurdles to energy efficiency;

    (3) to encourage early investment in energy efficiency and renewable energy to reduce demand; and

    (4) to promote new technologies to fight climate change as the economy grows by using less energy.

    Collaboration on this front is already occurring at multiple levels--in municipalities, at the state level, and across the region.

  3. MASSACHUSETTS' ACTIONS TO REDUCE GHG EMISSIONS AND INCREASE ENERGY EFFICIENCY: NEW LEGISLATION

    1. Green Communities Act

      In 2008, the Massachusetts legislature enacted the Green Communities Act (GCA), a massive overhaul of the state's energy laws to increase energy efficiency and renewable energy. (4) In addition to confirming the state's participation in RGGI, GCA establishes a new framework in which energy efficiency and clean energy can compete with fossil-fuel electricity generation. Least-cost procurement, expanded net-metering, reimagined contracts and greener building codes will help remove barriers to clean energy installations, stimulate technology innovation and help consumers reduce electric bills.

      The GCA establishes the following energy goals:

      1. By 2017, reduce total energy consumption by 10 percent through Green Communities programs that utilize renewable energy, demand reduction, conservation and energy efficiency.

      2. By 2020, meet 20 percent of electricity load through renewable and alternative energy. (5)

      3. By 2020, reduce fossil fuel in buildings by 10 percent from 2007 levels.

        The GCA adopts a number of different strategies to achieve these goals, summarized below.

      4. Increased Energy Efficiency

        The GCA creates unconstrained markets for energy efficiency to compete with supply by making utilities purchase all cost-effective energy efficiencies and demand-reduction resources. Under the GCA, utility companies will be required to purchase all available energy efficiency improvements that cost less than generating power, ultimately saving money on consumers' electricity bills. Under the least cost procurement requirement, utility companies will put efficiency in competition with power generation to meet electricity needs at the lowest possible cost. Existing efficiency programs cost three cents per kilowatt-hour, compared to eight cents per kilowatt-hour for power generation. Least-cost procurement makes efficiency the "first fuel" to look at. Utility companies will offer rebates and other incentives for customers to upgrade lighting, air conditioning and industrial equipment to more efficient models. Customers who take advantage of these incentives will save money as they reduce how much energy they use. The incentives will encourage more efficient energy use, lowering overall demand for traditional electricity and reducing GHG emissions.

      5. Renewable Energy

        Clean, reliable renewable energy is the cornerstone for shifting our dependence on fossil fuel-generated electricity. Renewable sources such as wind and solar historically have been costly and difficult to finance because of the uncertainty of permitting and returns on long-term investment. The governor's goals of meeting 20 percent of electricity demand with renewable and alternative energy by 2020 can be enhanced by creating regulatory incentives for new renewable energy. (6)

        The GCA helps create those market incentives for creating more renewable energy and alternative forms of energy in Massachusetts. By expanding renewable energy capacity and investing in innovative energy technologies, Massachusetts will move toward a cleaner energy future. In order to accomplish this goal, GCA sets up a pilot project that requires utilities to enter into long term contracts (ten to fifteen years) for renewables capped at 3 percent of utility load. This will be a key factor in helping renewable energy (especially wind) developers obtain financing for their projects and to give certainty to renewables that they can compete with traditional generation and make a return on their investment. Utilities may also own or operate solar facilities up to 25 percent by 2009 (up to fifty megawatts) and recover costs. Utility ownership of solar photovoltaic cells placed on their customers' roofs will create a partnership between utilities and the growing solar manufacturing and installation industry in Massachusetts.

        The GCA also requires utility companies and electricity...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT