3rd Quarter 2008
Note from the Executive Director
Real progress is occurring at the state and provincial levels in developing solutions to the environmental and economic challenges that the nation faces. The consequences of our reliance on imported fossil fuels are apparent and weighing heavily on consumers, businesses and governments everywhere, and policy makers are feeling increasing pressure to find solutions that will make energy more affordable and sustainable.
The northeast region is pioneering policies that reform the way energy is used, purchased and produced, while tackling greenhouse emission reductions, including:
- the successful launch of RGGI, the nation's first mandatory cap and trade program;
- implementing energy procurement plans and rules that could triple efficiency investments;
- and, the passage of statewide caps on greenhouse gas emissions.
ENE is playing a major role in advancing these cutting-edge initiatives. We are involved at every level -from initiating the research and policy models, to advancing legislative proposals to overseeing rulemaking and implementation. ENE was recognized for our work on energy efficiency by the American Council for an Energy Efficient Economy (ACEEE), which gave ENE the prestigious 2008 "Champion of Energy Efficiency" award for leadership in implementing efficiency policies.
As these solutions build momentum in the northeast, there is a growing opportunity to reach across sectors and borders and pursue implementation at a larger scale. ENE is participating in regional events and planning processes for the states and provinces to set priorities and coordinate on energy siting, planning, and market guidelines. We are at the forefront of research and rulemaking that will guide how forest land and products will be integrated into emerging markets and policies. ENE is also cooperating with federal delegates to bring policy models and lessons learned in the Northeast to the ongoing policy discussions in Washington D.C.
Please read on to learn more about the promising developments in the northeast.
-Daniel Sosland
First-Ever Mandatory Carbon Auction Launches RGGI
Solutions for Maine's Heating Oil Crisis
Forests and Climate Change Solutions
Northeast States National Leaders in Efficiency Investments
Massachusetts Adopts Statewide Carbon Cap
Regional Climate Action
First-Ever Mandatory Carbon Auction Launches RGGI
Northeast's Successful Cap and Trade Event Sets National Precedent
The inaugural RGGI carbon auction took place on September 25, 2008. As the first of its kind nationwide, the event's success sets an important precedent as other states and the federal government look to the northeast cap and trade program as model of climate action.
In advance of RGGI's launch ENE published a report on "Emissions Trends and the Inaugural 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 launch of RGGI by providing all interested parties with up-to-date information.
Six of the ten RGGI states participated in the auction, and it raised about $39 million, much of which will be invested in expanded energy efficiency and other clean energy programs. The next auction will take place in December and is anticipated to have full participation by all ten states.
Solutions for Maine's Heating Oil Crisis
Assisting Customers through Improved Efficiency
Maine is the most home heating oil -dependent state in the country, and the current crisis is hitting its citizens particularly hard. ENE is playing a critical role in helping guide the state's lawmakers, consumer advocates, and business leaders find solutions.
ENE has provided detailed recommendations to the Task Force about how investments in energy efficiency programs could be used to help Mainers use less fuel and lower their bills as the winter heating season approaches.
ENE is a leading environmental voice participating in the Governor's Pre-Emergency Energy Task Force and serves as the Chair of the Subcommittee on Energy Efficiency and Conservation. ENE is also working with coalition partners and state officials to develop long term solutions such as a comprehensive energy security reform package centered on a home heating oil efficiency fund, linked with other efficiency efforts for other fuels, and with alternative clean fuels (including wood heat). This would not only deliver savings to customers but would also invest energy dollars in local efficiency resources and jobs rather than sending that money to foreign oil suppliers.
Forests and Climate Change Solutions
Forest land and products can help reduce greenhouse gas emissions by storing carbon or serving as an alternative to fossil fuels. ENE is working to help create guidelines for how to forests and forest products can be managed and regulated to serve as a sustainable source of revenue while also delivering measurable carbon benefits.ENE is coordinating with lawmakers, academic institutions, land owners, and forest industry professionals to create policies that will help incorporate forest lands and products into the region's climate action policy. ENE has participated in several conferences, events and working groups focused on these issues, including the National Association of State Foresters Annual Meeting (held September 30th in Hyannis, MA) ongoing meetings of the Forest and Climate Change Working Group, and the FES Forum on the North Woods (held on October 4th in Bar Harbor, Maine). ENE is also exploring opportunities to partner with research efforts at Yale and Duke Universities.
Sound guidelines and policies relating to biofuels, biomass, carbon market offsets, and land use planning can help the region maintain its forests as a sustainable resource while taking advantage of economic and environmental benefits.
Northeast States National Leaders in Efficiency Investments
Efficiency programs and other demand-side mechanisms hold a lot of 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 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 Executive Director Dan Sosland had an opportunity to brief a national audience on the region's remarkable progress of energy efficiency policy in the New England states at the American Council for an Energy Efficient Economy's (ACEEE) Summer Study on Energy Efficiency in Buildings, in Pacific Grove, California in August.
ENE is working at the forefront of these policies. ACEEE selected ENE as one of its four Champions of Energy Efficiency for 2008. The coveted award was granted for demonstrating national leadership and accomplishment in the energy efficiency field.
Massachusetts Adopts Statewide Carbon Cap
In August, Governor Patrick signed into law the Global Warming Solutions Act, an enforceable, statewide greenhouse gas emissions cap.
The Act creates a framework for state regulatory agencies to set economy-wide limits on the emissions of greenhouse gases. It calls for the administration to adopt statewide GHG emissions limits for 2020, 2030, 2040 and 2050, and to develop a suite of policies and procedures for meeting these targets. Such policies could include a low-carbon fuel standard, expansion of market-based carbon regulations, or aggressive efficiency standards and investments. The 2050 limit must be at least 80% below 1990 levels -a baseline consistent with expert recommendations for reductions needed to avoid the worst effects of climate change.
The new law positions Massachusetts well to take action on climate change and also to grow its clean energy economy. Connecticut passed a similar cap bill in June. Both legislative victories demonstrate the states' national leadership in committing to reducing greenhouse gas emissions.
Regional Climate Action
Pursuing Opportunities for Cross-Border Collaboration
ENE is working in conjunction with other advocacy groups in Canada to leverage growing interest in renewable energy and carbon markets and to promote policies and processes that are consistent with the regional and federal climate and energy goals and regulations on both sides of the border.
ENE has developed priority policy recommendations for the states and provinces, including: plans for improving the efficiency of heavy-duty frieght vehicles and fuels; promoting development of renewable energy; and, coordination on transmission, long-term contracting and other energy infrastructure and planning issues. ENE is advocating these policies in a number of different arenas, including regional events like the Annual Conference of New England Governors and Eastern Canadian Premiers (held Septmeber 15th-16th in Bar Harbor, Maine)and the Climate Action Network of Canada's fall meeting in Montreal. ENE's Leslie Malone also participated in an expert panel discussion on carbon markets at Dalhousie University in Halifax on October 6th. In addition to public meetings and events, ENE and partner groups are conducting individual meetings to discuss policy ideas with administrative officials and stakeholders on both sides of the border.
