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April & May 2011
NEWS & VIEWS

Policy Developments in the States

Vermont Energy Investment Corporation to Run D.C. Sustainable Energy Utility

NEEP Continues Work in Defense of Regional Greenhouse Gas Initiative (RGGI)

On-Bill Financing Discussed in New York Assembly

Connecticut Legislators Consider Restoring Energy Efficiency Funds

Codes Work Heats Up Across the Region

Federal Appliance Standards Program Looks to Improve Analytic Approach

Policy Developments in the States

Public Policy Associate

Vermont Energy Investment Corporation to Run D.C. Sustainable Energy Utility

The District of Columbia has selected Sustainable Energy Partnership, led by Vermont Energy Investment Corporation (VEIC), to create and administer its Sustainable Energy Utility (SEU). The SEU will be run on a seven year performance contract, beginning with $7 million in funding in 2011.

"VEIC is excited by this opportunity to lead a world-class partnership that will help District of Columbia residents and businesses build a clean energy future for their community," said Scott Johnstone, Executive Director of VEIC. "Through our operation of Efficiency Vermont, we have shown how investments in energy efficiency are good for the bottom line, good for the environment, and good for the economy. We look forward to putting this expertise to work in the nation's capital."

The SEU will begin by running three programs in late spring and summer:
  • A Low-Income Multi-Family Program;
  • A Direct Installation Program for Commercial Buildings; and,
  • A Home Retrofit Program.

For more about the D.C. SEU, go to http://www.dcseu.com.

NEEP Continues Work in Defense of Regional Greenhouse Gas Initiative (RGGI)

NEEP is working with many of our fellow clean energy advocates to defend and reform the Regional Greenhouse Gas Initiative (RGGI) throughout the Northeast because of the role it plays in generating funding for energy efficiency programs. RGGI Inc., the non-profit that administers the 10-state carbon auction, recently released a report that found the program has generated over $400 million in funding for state efficiency programs since 2008.

Focus continues to be on New Hampshire, where the House of Representatives voted to repeal RGGI, though there are some efforts in Maine and New Jersey as well. NEEP has been active with a coalition of groups in New Hampshire to make common-sense reforms to their RGGI-funded program, while keeping the state in the collaborative. Moderate state senators seem to heading in that direction, offering an amendment to HB 519 that would move RGGI funds into the state's Core energy efficiency programs, though some other proposed changes would be a setback for efficiency. NEEP's comments on the reform effort can be found on our website here. For more on the benefits of RGGI to New Hampshire, see Conservation New Hampshire's "RGGI Primer."

On-Bill Financing Discussed in New York Assembly

While property assessed clean energy (PACE) has been the center of the debate on financing, on-bill financing is also receiving much attention across the region (for an overview of on-bill financing, see this brief by the Alliance to Save Energy). While a number of states have experience with on-bill financing for commercial and institutional customers- especially Connecticut and New Hampshire- several states and program administrators are working to offer on-bill repayment option to residential customers as well.

New York may become the biggest state to create an on-bill financing option in the Northeast. Members of the state assembly and state senate are working to create on-bill financing program as part of the Green Jobs-Green New York (GJGNY) program. A7006, sponsored by Representative Kevin Cahill, would require electric and natural gas utilities to create an on-bill recovery charge as part of the GJGNY Revolving Loan Fund. The New York State Energy Research and Development Authority (NYSERDA) would create a GJGNY Mortgage to secure a loan on the property and assist the utilities in any changes necessary to the company's billing systems to support on-bill repayment programs. More about the Green Jobs Green New York program can be found here.

Connecticut Legislators Consider Restoring Energy Efficiency Funds

Last year, policymakers in Connecticut voted to securitize 35 percent of the Connecticut Energy Efficiency Fund (CEEF) to reduce the state budget deficit, significantly reducing funding for the state's efficiency programs. Legislators and policy advocates are working on a bill, SB 1157, that would restore this funding. The measure is out of committee and set to be heard by the full state senate. Read more about the impact of the raid from a report by our policy ally Environment Northeast here.
Codes Work Heats Up Across the Region





Building Energy Policy Associate

NEEP is proud to support all 12 states in our region in their efforts to meet or exceed national model energy code requirements, and to attain full compliance with energy codes through comprehensive training in code enforcement. In fact, Connecticut and Vermont remain the only states in the Northeast and Mid-Atlantic still working toward final adoption of the latest national model building energy code (2009 IECC, its equivalent or greater), which is expected to take place in both states later this year. To see the status of building energy codes in each state, check out "Our Activities" on NEEP's Building Energy Codes webpage.

Although the region has been heralded a national model for its advancements in code work, several Northeast states are experiencing attempts to roll back or repeal their state building energy codes. NEEP has been actively involved in advocacy efforts in Maine and Pennsylvania to prevent these rollbacks, which would weaken or repeal the energy codes already adopted through prior legislation or regulation. NEEP participated in several stakeholder meetings in Maine and Pennsylvania, working with partner organizations and nationally to develop strategies and talking points to educate legislators, code officials, builders and consumers on the benefits of building energy codes.

A Closer Look at Maine:

Several bills have been introduced in Maine that would restrict, modify or eliminate the state's newly adopted 2008 Maine Uniform Building and Energy Code (MUBEC). A public hearing on one bill in particular, LD 43 - an Act to Repeal MUBEC, drew a significant crowd representing much of the Maine construction industry, code enforcement and advocacy communities. Misplaced claims of over-regulation and financial burdens due to new code requirements were expressed as primary concerns by those in favor of LD 43. However, real cause for concern would be the undoing of years of state progress, and lack of a code altogether if MUBEC was repealed, that would leave Maine's economy more vulnerable and its citizens' health and safety rights under protected.

On April 7, 2011, NEEP and over 50 other speakers presented testimony against LD 43 and on April 14 it was successfully voted "Ought Not to Pass" by a 12-1 majority in committee. Read NEEP's testimony opposing LD 43 here and keep up to date on the latest code developments in the State of Maine here.

A Closer Look at Pennsylvania:

Unfortunately, legislators in Pennsylvania have taken steps that will undermine the state building energy code. HB 377 makes substantial amendments to the Pennsylvania Construction Code Act, including changes that would repeal automatic state code adoption, corresponding to the ICC change cycle. It will also increase membership on the building code council to disproportionately favor builders' interests and require two-thirds of the membership to approve any revisions to the state building code, thereby making it virtually impossible to adopt any safety, health or welfare provisions.

Despite the efforts of a large body of advocates, enforcement officials and construction industry members, HB 377 was passed by the legislator and signed by Governor Tom Corbett. NEEP believes that it will weaken Pennsylvania's reputation as a national leader in energy efficiency and building safety, as well as undermine economic growth and job creation. For more detail, you can read NEEP's written testimony against it here. NEEP will continue to closely monitor legislative code activity in Pennsylvania and provide support for a strong and equitable building energy code wherever possible.
Federal Appliance Standards Program Looks to Improve Analytic Approach





Standards Program Manager

In the midst of maintaining a record-setting pace of revising federal appliance standards for a large batch of products, the US Department of Energy (DOE) recently began a concurrent process to improve the underlying analysis on which all rulemakings rely. Efficiency advocates are excited by the potential of strengthening an already robust federal standards program.

Early in March, DOE published a Notice of Data Availability (NODA) describing a new approach for how equipment prices- at an assortment of efficiencies- should be forecasted into the future as part of the standards setting process. As opposed to DOE's current analyses that assume that equipment prices remain constant, this new approach would incorporate changes over time. DOE notes in the NODA that historical data and supporting economic literature demonstrate that the long-held assumption that prices remain constant is conservative, and product costs most often decrease over time as new technologies enter the marketplace.

DOE solicited comment on an approach that would use data on prices and cumulative shipments to calculate "learning rates," which could then be applied in the forecasting of future prices. This would generally have the effect of decreasing estimated incremental costs of more efficient products over time, improving the economics of higher efficiency products. DOE specifically requested comment on the use of this approach in the current rulemaking on refrigerators, but extended the solicitation in a more generic sense for all future standards rulemakings. NEEP collaborated with a number of national advocates to develop a response to the NODA, which were submitted on March 24. Additional documents are posted on the DOE site.