Waxman-Markey Energy/Climate Bill Passes House

H.R. 2454, the American Clean Energy and Security Act (ACESA) passed by the U.S. House of Representatives by a vote of 219-212, continuing the country on the course toward enactment of historic clean energy and climate policy. The legislation would, among other aims, establish a national cap-and-trade system for carbon dioxide, set a national energy efficiency resource standard, and make historic strides in the areas of building energy codes and appliance efficiency standards. Analysis of the energy efficiency provisions in H.R. 2454 is available here. An evaluation of the energy savings estimates in the bill is available here.

Unfortunately, a key provision of the bill, to establish a building energy rating system, was weakened in floor negotiations. The bill does order the Environmental Protection Agency (EPA) to create a national model energy efficiency label for residential and commercial buildings that displays energy performance data (see Title II, Section 204). However, a late amendment  included in the final House version limits the building energy labeling provisions to new construction only. The EPA will then work with state energy offices to encourage localities within each state to adopt the model building label.  States adopting the plan will be eligible for federal funding to assist in implementation from their state’s State Energy and Environment Development (SEED) Accounts created by H.R. 2454. 

ARRA Funding for Energy Efficiency Begins to Arrive

Some $1.5 billion in federal funding for energy efficiency that is being made available to states in the Northeast under the American Recovery and Reinvestment Act (ARRA) has begun to arrive following states’ submission of proposals to the Department of Energy. The funding infusion is made up of a combination of Weatherization Assistance Program (WAP) funding (over $1 billion) and approximately $565 million in additional State Energy Program (SEP) funding.

The first installments of the WAP funding were released earlier this year, designed to supplement existing programs that provide income-qualified homes with added insulation, sealing of building air leaks and upgraded heating and air-conditioning equipment.

The first installations of the enhanced SEP funding began arriving in state energy offices in June, following submittal by the states of their plans for the funding, which were due to DOE on May 12. In order to qualify for the funding, states needed to provide DOE with assurances that they were working toward the conditions laid out in the ARRA, namely: that they have adopted the latest national model energy codes, and that they have plans to achieve 90 percent compliance with those codes within eight years. A number of building energy code related policy measures were enacted in the second quarter in Northeast states in order to meet those conditions. (See second quarter building codes summary of activities) The SEP funding will be paid out in increments of 40 percent, 40 percent and 20 percent, subject to meeting all of the DOE’s reporting requirements.

Finally, funding through the federal Energy Efficiency and Conservation Block Grant program, which had originally been established under the Energy Independence and Security Act (EISA) of 2007, but never funded by the Bush administration, is also being made available under ARRA. Cities with populations over 35,000 or among the 10 highest populated cities of a given state are eligible for direct funding, while smaller communities can receive funding through a formula by which state energy offices are ARRA recipients, and, in turn, disburse that money to the smaller communities. The deadline for submission of proposals under the Block Grant program was delayed until June 25. The funding is intended to assist communities with a range of energy efficiency improvements, including public building retrofits; development and/or implementation of an energy efficiency strategy; and conducting building energy audits; among other measures.

For up-to-date information on the state funding awards under ARRA see: http://www.energy.gov/InYourState.htm

Fourth RGGI Carbon Auction Yields $104.2 Million

The fourth auction of carbon allowances among states participating in the Regional Greenhouse Gas Initiative (RGGI) raised $104.2 million for energy efficiency and other clean energy investments. In the June 17 auction all of the 30,887,620 allowances offered sold at a price of $3.23 per ton of carbon, with 54 separate entities submitting bids. That price was down from the $3.51 per ton sold in the previous auction in March. In a parallel offering, the 10 RGGI states also auctioned allowances for the second three-year “control period” beginning January 1, 2012, with all 2,172,540 of those allowances for the 2012 vintage sold at a price of $2.06 per ton.

In all, the RGGI states have now auctioned more than 110 million allowances and raised a total of $366.5 million since the first auction in September 2008. Individual state policy measures are requiring that the overwhelming majority of the auction proceeds are reinvested in energy efficiency and renewable energy. (The exception continues to be New York, which has been unable to disburse any of the $128 million it has raised through the RGGI auctions to date because of a lawsuit filed against RGGI by Indeck Corinth, an electric generating plant in Corinth, N.Y.) The next RGGI auction will take place on September 9. For more information, see www.rggi.org.

In related developments, the American Clean Energy and Security Act (ACES) of 2009 (Waxman-Markey) would preempt the RGGI system from 2012-2017. Allowances held for that period could be exchange for federal allowances created if ACES is enacted, but would be done through a conversion ratio based on clearing prices from whatever federal auction may emerge.

ISO-NE Continues With Regional Energy Efficiency Initiative

NEEP continues to monitor and participate in a new project undertaken by the regional transmission organization for New England to better understand the region’s energy efficiency program’s and their potential impact on system planning. The second meeting of ISO-New England’s “Energy Efficiency Initiative” was held April 29 in Springfield, Mass., and featured presentations by the Electric Power Research Institute on its assessment of the potential for energy efficiency and demand response programs in the U.S., and from representatives of NSTAR, Northeast Utilities and National Grid on their energy efficiency programs. The next Energy Efficiency Initiative meeting is scheduled for Tuesday, July 7 in Holyoke, Mass. For more information, see: http://www.iso-ne.com/committees/comm_wkgrps/othr/reei/index.html

NEEP Coordinates Regional Response to DOE’s Notice of Proposed Rulemaking (NOPR) for Fluorescent and Incandescent Lighting Products

Based on the Department of Energy’s (DOE) savings potential analysis, this rule, set at the highest possible levels would achieve the most savings ever enacted through a DOE processed rulemaking.  In response to the low levels proposed by the Department, NEEP developed a series of comments, highlighting the proposals shortcomings. Through extensive outreach across the region, several key stakeholders from various state agencies, utility companies and efficiency programs signed onto the comments calling for the Department to improve efficiency levels for both fluorescent and incandescent technologies. Comments were delivered on June 1. Set at the highest efficiency levels, over 17 Quads of energy savings could potentially be affected by this rule, 5.9 of which would be compromised by finalizing the levels that were proposed, and maintaining the exemptions for a number of incandescent reflector lamps.

NEEP Encourages State Adoption of Television Efficiency Standards  

Coming out of a multi-year process in California, which is currently examining a first of its kind efficiency standard for televisions, NEEP has begun formal outreach efforts to several Northeast states to potentially enact of the standard proposed in California. With the volume of television sales increasing, the size of those televisions increasing, and the energy intensity of the newer technologies, have lead to massive growth in total energy consumption from televisions. Based on sizable savings potentials, televisions are NEEP’s primary focus with respect to the adoption of standards in Northeastern states.  

2009 Integrated Resource Plan Submitted to DPUC

At its May 1 meeting, the Connecticut Energy Advisory Board voted to approve submission of the latest Integrated Resource Plan to the Department of Public Utility Control (DPUC) for regulatory review and approval. Click here for more information. A hearing on the plan and related docket, Docket 09-05-02, was scheduled for June 30 at the DPUC offices in New Britain. View information related to Docket 09-05-02 here.

ECMB Schedules Public Comment Session

The Energy Conservation Management Board (ECMB) has scheduled a public comment session for Wednesday, July 8, from 9 a.m. to noon to allow input into the 2010 energy efficiency plans, which are being developed by Yankee Gas Co., Connecticut Light and Power and United Illuminating Co. The meeting will be held in Hearing Room 1C of the Legislative Office Building in Hartford. A final vote on the 2010 electric and gas efficiency budgets is due for a vote by the ECMB on Wednesday, July 22. According to the ECMB, it is soliciting input prior to the issuance of the draft 2010 energy efficiency plan “to facilitate incorporation of public input in a more timely manner that will take place earlier in the process.” For more information see: http://www.ctsavesenergy.org/ecmb/index.php

Efficiency Maine Trust Created

On June 12, Gov. John Baldacci signed into law, An Act Regarding Maine's Energy Future, landmark energy legislation that, among other things, radically alters the authority and structure for the administration of the state’s ratepayer funded energy efficiency programs. The newly-created Efficiency Maine Trust and Board will consolidate the state’s clean energy programs under one entity, coordinating the energy efficiency, weatherization and alternative energy programs for all consumer sectors. While ultimate review and approval of programs will continue to reside with the state’s Public Utility Commission (PUC), the PUC as of July 1, 2010 will no longer be the administrator of the programs, which it has been since Efficiency Maine was created within the PUC in 2002. Instead, an independent trust, modeled after the Energy Trust of Oregon and advocated for by NEEP in both regulatory and legislative proceedings, will design and operate the state’s efficiency programs. The Act also set out several ambitious policy goals, including:  

• Weatherizing all Maine homes and 50 percent of its businesses by 2030;
• Reducing peak electric energy consumption by 100 megawatts by 2020;
• Reducing the state’s consumption of liquid fossil fuels by at least 30 percent by 2030 and; 
• Reducing electricity use by 30 percent, natural gas use by 30 percent and home heating fuel use by 20 percent by 2020.  

The Act also authorizes a heating fuel efficiency program, funding for which may include a systems benefit charge on home heating oil, kerosene and propane, among other measures. The final act can be viewed at: http://www.mainelegislature.org/legis/bills/bills_124th/chapters/PUBLIC372.asp

Governor Signs First of its Kind CFL Recycling Measure

Gov. John Baldacci on June 23 signed into law a bill requiring manufacturers of compact fluorescent lamps (CFLs) to fund a mandatory recycling program. While the state has offered a pilot CFL recycling program for several years, this measure, described as the first of its kind in the country, would require CFL manufacturers by January 2011 to implement a free collection program for used bulbs. Those manufacturers failing to do so will be prohibited from selling their CFLs in Maine. In addition, the bill directs the state’s Department of Environmental Protection to adopt mercury content standards for CFLs. For a copy of the act, see: LD 973. 

State to Require 25 Percent GHG Reduction by 2020

Gov. Martin O'Malley on May 7 signed into law legislation requiring that the state to reduce its greenhouse gas emissions to 25 percent below 2006 levels by 2020. The Greenhouse Gas Emissions Reduction Act of 2009 directs the state’s Department of Environment to develop a plan for achieving the required emissions reductions, giving officials until mid-2011 to establish an inventory of statewide GHG emissions from 2006 for use as a baseline and project GHG emissions for 2020 under a ‘business as usual’ scenario. The Department then has until the end of 2011 to adopt a plan for achieving the emissions target. However, the act prohibits the state from requiring manufacturers to reduce their GHG reductions, or from causing a significant increase in manufacturing costs. See the governor's press release and the full text of the legislation, House Bill 315 (PDF 157 KB).

 

Program Administrators File Three-Year Efficiency Plans Under Green Communities Act (see related article)

On April 30, the administrators of the state’s electric and gas energy efficiency programs filed the initial joint statewide three year energy efficiency plans as required under the state’s Green Communities Act. According to the utilities and the Cape Light Compact, the filing “enjoys the unanimous support of all electric and gas Program Administrators in Massachusetts and reflects an unprecedented collaborative, consensus-building effort spanning many months.”  

The plans as proposed would by 2012 approximately double annual savings for both electric and gas over 2009 levels, with estimated savings of $6 billion (for all resources: electric, gas, water). Those savings would come at a cost of $1.4 billion over the three year period. The budget for electric energy efficiency programs would increase from $265 million in 2010 (for all customer sectors: commercial/industrial; residential; and low income) to $533 million in 2012. The budget for gas efficiency would increase from $57 million in 2010 to $110 million in 2012. Being described as “the most aggressive in the nation,” the plans now go before the newly-created Energy Efficiency Advisory Council, which has until July 30 to provide its review to the plans, after which they go onto the Department of Public Utilities, which has until October 31 to issue its approval. To view the plans, see:http://www.ma-eeac.org/plan430.htm

Massachusetts Furnace Efficiency Standard Waiver In Development

NEEP continued to work in coordination with the Massachusetts Department of Energy Resources (DOER), the Massachusetts Attorney General’s Office, and the National Consumer Law Center (NCLC) towards the final development of a petition to the US Department of Energy for a waiver from preemption for a more aggressive state furnace efficiency standard. The petition is expected to be finalized, and submitted by the end of August.

NEEP Files Energy Master Plan Program Portfolio Proposal

On April 16, NEEP delivered to the New Jersey Board of Public Utilities a comprehensive plan designed to meet the energy savings goals of Gov. Jon Corzine’s Energy Master Plan and offset energy and load growth in the state by 2020 with cost-effective energy efficiency. NEEP’s report, An Energy Efficiency Strategy for New Jersey: Achieving the 2020 Master Plan Goals, offers a portfolio of program and policy strategies to achieve the Energy Master Plan 2020 goal while collectively realizing $16.8 billion in net savings. Calling for the formation of a New Jersey Energy Efficiency Utility implemented by the New Jersey gas and electric utilities, NEEP recommends a comprehensive statewide energy efficiency program complemented by public policies that establish minimum energy requirements for new appliances, and new homes and buildings. The report, developed with the input of an international team of energy efficiency experts, also suggests that New Jersey foster a market value for energy efficiency by requiring time-of-sale building energy ratings. Public comment was accepted on the plan through May 16. To view the full report, see: http://www.neep.org/newsroom/NJfinalreport.pdf

 

Pilot Fuel Blind Efficiency Program Approved

On June 4, the New Hampshire Public Utility Commission (PUC) issued an order approving a Fuel Blind Home Energy Solutions Pilot Program as part of the state’s utilities Core Energy Efficiency Programs. The pilot, as proposed by Public Service Company of New Hampshire (PSNH) and Unitil Energy Systems, had originally been rejected by the PUC in January as not fully developed. With the approved pilot, to be directed to 100 Unitil and 200 PSNH customers and run through the Home Energy Solutions (HES) program, the utilities plan to “to weatherize residential homes regardless of heating fuel type, capture cost effective opportunities for energy saving, and collaborate with other programs such as the gas utilities' programs to improve program effectiveness." View Order 24,974 here.

 

PSC Continues Energy Efficiency Portfolio Standard Proceeding

The New York State Public Service Commission (PSC) during the second quarter continued to issue orders and engage in other proceedings relating to the implementation of the state’s ’15 by 15’ energy efficiency portfolio standard, or EEPS (Docket 07-M-0548).

Of note, on May 14, the PSC issued an order setting near- and long-term targets for gas efficiency, while also establishing a process for approval of programs and blending existing interim utility programs into a comprehensive statewide gas efficiency program. According to the PSC, the order will result in an average annual reduction of gas usage of 3.8 billion
cubic feet (Bcf) by 2020, or enough natural gas to heat about 39,000 average-sized homes.

Combined with reductions anticipated from other sources, this target represents a 14.7 percent reduction in estimated gas usage by 2020. The program portfolio assumed is a mixture of 75 percent residential programs (with 20 percent allocated to low-income) and 25 percent commercial/industrial programs (with 50 percent allocated to small businesses and 50 percent to large business). The order also sets a budget of $130 million to be collected annually for the gas efficiency initiative. See the PSC’s press release here. Also, On June 8, Central Hudson Gas and Electric submitted its plan for a “Small Commercial Gas Efficiency Program,” which also served as an update to its July 2008 energy efficiency program filing. See the filing here.

And in order to assure a workforce sufficient to meet the new demands of the EEPS, the PSC on June 18 issued an order authorizing System Benefits Charge (SBC) funding for a “Workforce Development Program” to be administered by the New York State Energy Research and Development Authority (NYSERDA), reflective of a program proposal NYSERDA had made to the PSC last September and which had been approved by the EEPS Working Group. NYSERDA’s plan calls for spending an additional $8.3 million per year for the period 2009-2011 to further develop and implement comprehensive training initiatives; internships and apprenticeships; promotion of national certifications and standards; offering career pathways to disadvantaged communities; professional development and continuing education; and program evaluation. Click here for more information.

 

PUC Approves National Grid Energy Efficiency Procurement Plan

In a written order issued April 6, the Public Utilities Commission (PUC) approved a settlement agreement regarding National Grid’s Gas and Electric Energy Efficiency Program Plan for 2009. Unlike prior plans, and as mandated by state law requiring the procurement of all cost effective energy efficiency, the 2009 program plan covers both gas and electric energy efficiency, and sets unprecedented spending levels. The proposed $28.7 million plan would yield and estimated $136.5 million in economic benefits. For a detailed description of the program proposal and to read the PUC order see: http://www.ripuc.org/eventsactions/docket/4000-NGrid-Ord19608(4-6-09).pdf

 

New Law Allows Efficiency Improvements Through Property Taxes

On May 27, Gov. James Douglas allowed to become law without his signature An Act Relating To Renewable Energy And Energy Efficiency, which, among many other measures, allows municipalities to create “Clean Energy Assessment Districts” (Section 15e) to finance through property taxes certain energy efficiency and renewable energy projects on properties in that district. The provision mirrored a similar bill that had been passed by the Senate on April 21. The final act can be found at: http://www.leg.state.vt.us/docs/2010/Acts/ACT045.pdf