Q2 Update 2009 Papers & Publications
Federal Climate and Energy Legislation
Canada Climate Policy
Forests and Climate Policy
Maine Takes Steps Toward Energy Independence
Other State Energy Highlights
Letter from the Executive Director
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 a new system can look like. ENE is engaged on multiple levels, implementing innovative state and regional programs to establish leading precedents while becoming increasingly involved in efforts to bring "lessons learned" from the northeast to influence new federal climate and energy legislation.
The clear highlight of the past few months was the passage of the American Clean Energy and Security Act (ACES) in the U.S. House of Representatives - an historic vote and first step to a comprehensive U.S. commitment to reduce global warming pollution while building a sustainable economic future. ENE weighed in on the House debate and is continuing careful analysis and active engagement on energy efficiency, forest carbon, and overall policy design issues.
At the state level, Connecticut, Massachusetts and Rhode Island are on their way towards ranking among the top five states nationally on spending per capita on energy efficiency as they pursue key efficiency investment approaches championed by ENE.
ENE and its partners submitted a major set of recommendations to RGGI last week regarding how to craft a rigorous forest offset program for the 10-state region. This detailed document reflects more than two years of careful research, and stakeholder involvement by more than 60 scientists, environmentalists, foresters and agency personnel. Because offsets represent substitute emissions reductions for regulated entities in a cap and trade program, it is pivotal that they represent real emissions reductions, and the detailed approach we proposed for RGGI will serve as a valuable model for an effective federal offset policy.
Please read more about our work and the northeast's leadership in climate and energy policy.
-- Dan Sosland
Federal Climate and Energy Legislation
The American Clean Energy and Security (ACES) Act, also known as H.R. 2454 or the Waxman-Markey bill, was passed by the House of Representatives in June. ACES sets forth an ambitious and comprehensive reform of U.S. climate and energy policy and charts the course to lower emissions and a sustainable, clean energy future. Among its many features, the Act:
• Establishes a declining economy-wide cap on greenhouse gas emissions that will put the market to work and drive investment in clean energy technologies.
• Provides additional economic and job creation benefits through investment in energy efficiency and renewable energy programs, and improved efficiency standards for buildings, appliances, and lighting. ENE's research shows that efficiency is the best mechanism to keep costs for consumers low in this new cap and trade program. ENE estimates that ACES will generate $10 to $20 billion annually for energy efficiency programs that will save American consumers up to $3 for every $1 invested.
• The Act also establishes a Renewable Electricity Standard that requires electricity distributors to meet targets for renewable electricity supply. By 2020 distributors must achieve 20% from renewable sources or 15% from renewable resources and 5% from cumulative energy savings.
It is important that the U.S. follows through on this important step toward a more affordable and cleaner energy economy. ENE is working to educate policy makers and the public about the specific opportunities embodied in this bill and the ways in which it can be further improved.
Canada Climate Policy
Members of ENE's Canada team recently travelled to Ottawa to meet with federal policy makers and environmental organizations. Progress in the U.S., particularly the advancement of the ACES bill, has generated significant interest in Canada with respect to the content and potential impact of U.S. energy and climate proposals. ENE provided background information to decision and opinion makers via our comprehensive ACES bill summary, RGGI lessons learned documents, and other relevant reports and analysis. ENE looks forward to continued collaboration with its contacts in Ottawa and the provinces as the U.S Senate and Canadian federal government develop and implement carbon regulatory programs.
Forests and Climate Policy
ENE, with the Maine Forest Service and the Manomet Center for Conservation Sciences, released an important set of recommendations related to the Regional Greenhouse Gas Initiative (RGGI) offset program. Focused on the significant carbon storage capacity of the region's forestlands, the recommendations set out a new framework for protecting and enhancing forest carbon through rewarding changes in forest management practices and protection of forestland from development.
Forests and forest offset projects could play a major role in climate policy and a clean energy economy, both in the region and nationally. Forests currently absorb more than 12% of U.S. annual carbon emissions, and the U.S. Department of Agriculture estimates that number could be doubled. The recommendations submitted to RGGI set out three new categories for forest offsets (forest management, avoided deforestation, and urban/community forestry), and outline rigorous standards for ensuring that these new offset categories deliver real emissions reductions while serving as an important source of revenue for landowners in the emerging low carbon economy. The RGGI recommendations will serve as a valuable and timely model for how to craft an effective offsets program as federal climate legislation moves from the House to the Senate.
At the federal level, ENE is advocating for more rigorous forest and agricultural offsets and for a supplemental forest carbon program funded through allowance revenues to help further safeguard our valuable forest carbon sinks.
ENE and seven other groups submitted a Joint Letter to Congress on Forest Climate Policy during the House debate that highlights the importance of forests as carbon sinks and outlines how to craft a rigorous offsets program so that meaningful emissions reductions occur and the emissions cap is not compromised. ENE and colleagues are now working on the Senate side to strengthen the offsets program in ACES and to craft a robust supplemental forest carbon program so that millions of landowners can help reduce global warming and join the low carbon economy of the future.
Maine Takes Steps Toward Energy Independence
New Legislation Makes Way for More Efficiency
An Act Regarding Maine's Energy Future (LD 1485) was signed into law in June 2009. Its passage is an important step towards an "all fuels" energy efficiency program, which ENE has advocated as a priority measure in Maine. The legislation makes way for new efficiency programs that cover "unregulated" fuels, like home heating oil. This is critically important because 80% of Maine's homeowners heat with oil - the highest percentage of any state in the country. This dependence has left Mainers unusually vulnerable to the rising costs of energy, which has become a pressing economic as well as environmental issue.
Now Maine will begin to integrate delivery of energy efficiency, weatherization and alternative energy measures for all consumer groups, all income levels, all energy types, and all parts of the state. The new law also advances the framework for expanding oil and natural gas efficiency programs by establishing a Heating Fuels Efficiency and Weatherization Fund that will direct federal and state resources to energy efficiency and alternative energy measures - putting the state on the path to reducing statewide heating oil consumption and creating an important all fuels model for the region.
The legislation draws on policy models and recommendations that ENE developed through working with policy officials and coordinated outreach efforts with environmental and other advocates. The new structure is intended to function more effectively to deliver and expand efficiency resources available in Maine and could be used as a regional model.
Other State Energy Highlights
ENE is working with stakeholders, energy and environmental administrators, and utilities and program administrators in multiple northeast states to advance mandated and other increases in investments in cost-effective energy efficiency. In Massachusetts, ENE is also meeting with representatives of low- and fixed-income groups, local planning councils, small businesses, and other community and constituent groups to explore opportunities for targeted efficiency programs. Rhode Island's Public Utilities Commission approved a plan to increase annual electric efficiency investments from $14 million (2008) to $44 million (2011) for all customer sectors (residential, low-income, commercial, and industrial). This level of investment would place RI in the top five states nationally, and would generate more $100 million in net savings for customers. The plan was developed and endorsed by ENE and other members of the state's stakeholder council. ENE is participating in rate cases in Connecticut, Massachusetts and Rhode Island to advocate for utility incentive reforms that would decouple revenues from the volume of sales. These measures are important in order to ensure that utilities' and customers' incentives are aligned in the effort to conserve energy and increase efficiency and savings.
