Breaking Federal Policy Developments

Massachusetts Seeing Benefits from Energy Efficiency Programs

RGGI Status in Key States

High Performance Buildings Team Unveils New Resources

Getting to 90: Furnace Efficiency Standard a Long Time Coming

Policy News & Views

Policy Developments in the States

Massachusetts Seeing Benefits from Energy Efficiency Programs

Massachusetts released two reports discussing the impact of the Green Communities Act, one of the nation's most aggressive energy efficiency programs. Under the Act, the state is set to triple its investments in efficiency programs by 2012 and meet 30 percent of the state's energy needs through efficiency by 2020.

The first report by the Massachusetts Energy Efficiency Advisory Council (EEAC), "Efficiency as Our First Fuel: Strategic Investments in Massachusetts' Energy Future," details the progress towards its energy efficiency goals made last year. The report finds that the state is on track to meet the savings goals of its first three-year plan. Below are some key facts and figures:

• The utilities met 98 percent of the electric goal, saving 610 GWh
• The utilities met 103 percent of their of their natural gas goal, saving 13.9 million therms
• The programs reduced greenhouse gas emissions by 370,000 metric tons, equivalent to the emissions of 74,000 cars
• The programs will create $1.4 billion in lifetime benefits compared with $301 million in costs

In the second report, "Recent Electricity Market Reforms in Massachusetts," the Department of Energy Resources (DOER) analyzes the benefits and costs of new state energy policies, including the Green Communities Act. DOER finds that these policies are on pace to save ratepayers $2.5 billion in economic benefits compared with $1.1 billion in costs. The majority of the benefits come from efficiency programs which will reduce energy fuel costs and the amount needed for new transmission and distribution infrastructure. See the graphics below for more details:

RGGI Status in Key States

The Northeast states witnessed major clashes over the Regional Greenhouse Initiatives (RGGI) during the first part of 2011. Anti-regulatory groups led by Americans for Prosperity lobbied strongly for state officials to exit the program, particularly in Maine, New Hampshire, and New Jersey. A quick overview where RGGI stands in battleground states:

• Maine: The legislature voted to maintain RGGI participation contingent upon support from other states within ISO-New England. See P.L. Chapter 277 of 2011 here.
• New Hampshire: Governor John Lynch vetoed the final RGGI repeal bill (SB 154), arguing that the measure would "cost our citizens jobs, both now and into the future, hinder our economic recovery, and damage our state's long-term economic competitiveness." An override of Lynch's veto is doubtful this session, making it likely a similar effort will occur next year.
• New Jersey: The New Jersey Legislature passed two bills that attempt to block Governor Chris Christie's decision to take the state out of RGGI. While this legislation is unlikely to survive the Governor's veto, it may extend the length of time it takes for the state to withdraw from RGGI. A good overview of the current situation is available from SolveClimate News.
• New York: Americans for Prosperity and the Competitive Enterprise Institute have brought a lawsuit arguing that New York's participation in RGGI is illegal. Prospects for the suit are uncertain at this time.

Policy Toolkits for Communities

• Establish an energy reduction policy for municipal operations

• Partner with the local utility or energy efficiency program administrator
• Commit to advanced building energy codes, including investments in training and compliance resources
• Establish a policy that ensures energy efficient and sustainable operations and maintenance practices
• Establish an ordinance to build or renovate to the most current high performance building standards
• Establish a policy to disclose and rate the energy use of all public buildings
• Adopt a "reach" or "stretch" energy code

Guidance for Real Estate Professionals and Home Energy Checklist

The checklist is meant to enable a real estate professional to make a relatively quick assessment of a home's efficiency during an on-site "walkthrough" and is organized into the following 12 categories:

1. Lighting
2. Appliances
3. Space Heating
4. Space Cooling
5. Distribution System/ Ducting
6. Water Heating
7. Fenestration (Windows)
8. Envelope/Shell
9. Insulation
10. Energy Management Systems
11. Water Management Features, and
12. 3rd Party Evaluation/Home Energy Audit

Our region's efforts to secure 90% AFUE as the minimum efficiency standard for residential gas furnaces go back nearly ten years, when Northeast states began passing state-specific standards at this level - far exceeding the federal standard at the time. These standards remained largely symbolic, as states were required to petition the U.S. Department of Energy (DOE) to have federal preemption waived, of which few had the resources to pursue. Following an extensive history of both denials (see Massachusetts Waiver Denial) and agreements (see HVAC consensus agreement), the DOE published a Direct Final Rule on June 27, establishing new federal standards for gas furnaces (central air conditioners and heat pumps were also part of the direct final rule) at the long-sought 90% AFUE level (see NEEP Press Release).

Key to this final rule is the regional nature of the standards. For the first time, DOE has established unique efficiency levels for different regions of the country. The New England states, New York, New Jersey, and Pennsylvania are considered Northern states, while Delaware, Maryland, and Washington, D.C. are considered Southeastern. Northern states will largely benefit from the strong furnace standards, while the southeastern states will benefit from the central air conditioner/heat pump standards. Furnace standards will be effective in 2013, while the AC/HP standards come online in 2015.