An Update on Energy Efficiency Policies Across the Northeast
| National |
California Proposes Ban on Incandescents
In January 2007, California state lawmaker Lloyd Levine introduced a bill that aims to ban the sale of incandescent light bulbs statewide by 2012. The negotiations – which could yield a phase out of incandescents for the huge California market, and affect the product line in most of the nation – are taking place amid evidence of a rising anti-incandescent clamor. Any move in California toward tougher energy standards for lighting are expected to raise the bar for federal lighting efficiency standards currently under review. A potential drawback is that compact fluorescent lights (CFL)- the alternative to incandescents- contain mercury. In recognition that CFL disposal could pose a problem, major manufacturers are promoting CFL recycling programs and plan to cut CFL mercury content.
ACEEE Publishes Report on the Peak Demand Impacts of Energy Efficiency
The American Council for an Energy-Efficient Economy (ACEEE) recently released their report Examining the Peak Demand Impacts of Energy Efficiency: A Review of Program Experience and Industry Practices. In this study, ACEEE examined the results and achievements of various energy efficiency programs in order to identify examples of clear, significant peak demand savings. The major findings of the study include that energy efficiency programs have undoubtedly achieved significant peak demand reductions; most program evaluations have not used direct, on-site measurement of the demand impacts; the need for greater understanding and accuracy in quantifying the peak demand impacts will increase; and there are solid foundations in place for establishing a broader knowledge base of the peak demand impacts of energy efficiency. To read the entire report, visit the ACEEE Web site.
Western States Agree to Cut Greenhouse Gases
On February 26, governors from Arizona, California, Oregon, New Mexico and Washington agreed on a plan to cut their states' emissions of greenhouse gases and to establish a regional carbon-trading system. The governors pledged to set a regional target for lower emissions within six months; a year after that they plan to devise a regional cap-and-trade system. The specific steps that Western states will take in order to reduce the greenhouse gas emissions have yet to be determined. For more information, read the Washington Post article.
EPA to Develop Model Program Evaluation Guide for Efficiency Savings
Building from existing measurement and verification protocols around the country (including the California Energy Efficiency Evaluation Protocols, the International Performance Measurement and Verification Protocols, the Federal Energy Management Program Guidelines), the Environmental Protection Agency is funding the development of a national guide as part of its Energy Efficiency Action Plan. The guide will establish consistency in how energy efficiency savings are quantified, address the issue of certainty and reliability of savings, and explain how to translate the savings into emission reductions. The guide will be developed with input from a broad range of stakeholders, including evaluation experts, regional and state program administrators, and public utility and air regulatory staff. The effort is co-chaired by Dian Grueneich, Commissioner at the California Public Utilities Commission, and Diane Munn at Edison Electric Institute. For more information, view a related presentation.
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| Regional |
ISO-New England Forward Capacity Market
The Independent System Operator of New England (ISO-New England) has issued its final draft of the Forward Capacity Market (FCM) Measurement and Verification (M&V) Manual. The manual was approved by the New England Power Pool (NEPOOL) Markets Committee in early March, and awaits final approval by the NEPOOL Participants Committee in mid April. The M&V Manual reflects extensive input from public utility commissions and program administrators gathered through a stakeholder process which has been facilitated by NEEP over the past five months. The M&V Manual provides specific requirements for developing M&V plans to support demand reduction bids into the Forward Capacity Auction by Demand Resource Providers (including energy efficiency, load management, demand response and distributed generation), including acceptable M&V methods and specific level of rigor required for calculating a project’s demand reduction value. For more information on the FCM and M&V Manual, see the recent presentations from the ACEEE Market Transformation Symposium by Paul Peterson (Synapse Energy Economic) and Chris Neme (VEIC).
Also, NEEP is assisting the New England states to coordinate evaluation efforts and identify where joint studies make sense to support M&V plans that must be developed by Program Administrators as part of their qualification package to ISO-New England by June 15, 2007 for the first forward capacity auction in 2008.
Regional Greenhouse Gas Initiative (RGGI)
Comments Accepted on Connecticut Model Rule
As part of their RGGI Draft Model Rule development process, the Connecticut Department of Environmental Protection accepted comments from interested parties on the auction and allocation of RGGI carbon credits. The Department expects to have a draft Model Rule, accommodating these suggestions and recommendations, released at the end of March. The comments are available online.
Massachusetts Signs on to RGGI; Stakeholder Meetings Held
On January 18, Massachusetts Governor Deval Patrick signed the Regional Greenhouse Gas Initiative Memorandum of Understanding, committing the Commonwealth to a multi-state effort to reduce emissions of carbon dioxide and tackle global climate change. At the signing event, Gov. Patrick announced that Massachusetts will auction 100 percent of its allowances, and use the funds generated by those sales to fund energy efficiency, demand reduction, renewable energy programs, and combined heat and power projects. The Massachusetts Department of Environmental Protection (DEP) has been holding stakeholder meetings in order to collect comments and recommendations on how the state should proceed with the development of the state Model Rule and auction. For more information read the Governor’s press release or visit the DEP Web site.
Proposed Legislation will Authorize Maine's Participation in RGGI
Legislative Docket 1090, “An Act to Authorize the State’s Participation in the Regional Greenhouse Gas Initiative,” has been submitted to the Maine state legislature. This bill will give Maine the approval necessary to participate in RGGI. The bill allocates all revenue from the auction of carbon credits towards energy efficiency in order to maximize benefits to energy consumers. LD 1090 is sponsored by Representative Koffman, and is cosponsored by 25 representatives and senators. It is supported by the Environmental Priorities coalition, the Maine Center for Economic Policy, Maine Interfaith Power & Lights, and the Maine Global Warming Action Coalition. The bill can be read online.
New Jersey Governor Calls for Greenhouse Gas Reductions
On February 13, New Jersey Governor John Corzine signed Executive Order 54, directing the state to reduce greenhouse gas emissions to 1990 levels by 2020, followed by a further reduction of 80 percent below 2006 levels by 2050. To reach this goal, the Commissioner of the Department of Environmental Protection will work with the Board of Public Utilities, the Department of Transportation, the Department of Community Affairs, and other stakeholders to evaluate methods to meet and exceed the target reductions. The resulting recommendations will take into account the economic benefits and costs of implementing these recommendations. For more information, read Executive Order 54.
New York Releases Pre-Proposal Draft Model Rule
On December 22, 2006 the Department of Environmental Conservation (DEC) released their RGGI pre-proposal Draft Model Rule for the state of New York. The pre-proposal states that New York will auction off 100 percent of their carbon credits and will utilize those funds for energy efficiency and clean energy programs. Also, as part of their stakeholder process, the DEC requested comments from stakeholders on the pre-proposal. Comments, due by March 13, were submitted by NEEP as well as many other New York based and regional energy efficiency organizations. For more information, visit the DEC Web site.
Rhode Island Committed to Joining RGGI
On January 30, in his State of the State address, Governor Carcieri announced that Rhode Island will join the Regional Greenhouse Gas Initiative. The Governor noted that "Rhode Island can boast some of the lowest greenhouse gas emissions of any state in our region. This agreement represents a commitment by neighboring states to follow our example." For more information, read the State of the State Address.
Vermont Releases Pre-Proposal Draft Model Rule and Requests Comments
The Vermont Department of Environmental Conservation released its pre-proposal Draft Model Rule for the implementation of RGGI, and has requested that interested parties submit comments to the Department by April 1. Vermont’s pre-proposal states that they will auction off 100 percent of the CO2 allowances and allocate the resulting funds to a consumer benefit or strategic purpose set-aside account for use by energy efficiency and other low-cost, low-carbon power system investments. Read the pre-proposal Draft Model Rule here.
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Connecticut |
2007 Energy Plan Approved
On February 6, 2007 the Connecticut Energy Advisory Board approved its 2007 Energy Plan for submittal to the legislature.
Governor Announces New Energy Initiatives
On February 5, Governor Rell announced that her biennial budget will include new energy initiatives, namely the development of a new Department of Energy and organizational changes at the Office of Policy and Management, the Office of the Consumer Counsel and the Department of Public Utility Control (DPUC). The new Department of Energy will be responsible for the development and planning of energy policy, including alternative and renewable resources and conservation and efficiency. The DPUC will be responsible for only those regulatory actions necessary in approving rates for public electric and gas utilities and responsibilities relating to water and telecommunications utilities. In addition, the Governor proposed several long-term energy initiatives including a 20 percent reduction in peak electric demand by 2020. All of the changes will provide for better energy planning, new conservation measures and a task force to study ways to aggregate purchases for Connecticut consumers in order to lower energy prices. For more information, a press release is available on the Governor's Web site.
Proceedings Initiated on Conn. Clean Energy Options Program
The Department of Public Utility Control (DPUC) has created Docket 07-01-09 for the purpose of considering and establishing the program parameters for the second phase of the Connecticut Clean Energy Options (CCEO) program. The current program contracts expire in April 2008. The docket will incorporate a diverse group of stakeholders to determine the CCEO program structure for the next contract period. DPUC would also like to facilitate a docket and subsequently a Request for Proposals to consider other options that may also serve the program goals of providing alternative options to consumers. Read more about this docket at the Department's Docket Database.
New Media Campaign Urges Customers to Reduce Their Energy Use
The Department of Public Utility Control (DPUC) joined with the Connecticut Energy Efficiency Fund (CEEF), the Connecticut Light and Power Company (CL&P) and the United Illuminating Company (UI)to launch a marketing campaign, “Determine Your Own Energy Future,” to promote the CEEF’s energy-saving programs. The campaign debuted in mid-February, and is designed to educate Connecticut residents about energy-efficiency programs and tips to help reduce energy consumption and lower energy bills. The campaign will last through the end of May 2007. For more information, visit www.ct-energyinfo.com or read the press release.
Legislation Introduced to Ban the Sale of Incandescent Light Bulbs
The Connecticut General Assembly's environment committee has proposed a ban on the sale of ordinary incandescent light bulbs as part of an effort to encourage energy efficiency and curtail greenhouse gas emissions. The ban is part of Bill No. 1432, “An Act Concerning Global Warming.” The bill, as currently written, would prohibit retailers and wholesalers to sell any bulb blacklisted by the Department of Environmental Protection. Those found violating the ban would get a written warning and be subject to a $100 fine for each inefficient bulb sold. The bill also creates an income tax exemption for money earned from the sale of "greenhouse gas emissions credits" as part of the Regional Greenhouse Gas Initiative (RGGI). For more information, read the bill on the Connecticut General Assembly Web site.
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Maine |
Efficiency Maine Releases Its 2006 Annual Report
In January, the Maine Public Utilities Commission’s Efficiency Maine program presented its 2006 Annual Report to the Maine Legislature. The report finds that in the past three years, the program saved homeowners, schools, and businesses more than 121 million kilowatt hours (kWh) of electricity, and achieved a lifetime economic benefit to the state of $86.6 million. In 2006 alone, Efficiency Maine saved more than 74 million kWh, which helped avert the production of more than 320,000 tons of carbon dioxide. Read the 2006 Annual Report at the Efficiency Maine Web site.
PUC Staff Present Draft Plan
On February 2, the Public Utilities Commission (PUC) staff presented a draft plan for using increases in the Conservation Fund under Docket 2006-446. After the meeting a rulemaking hearing was held, during which attendee were permitted to comment on the plan. For more information, please read the Hearing Letter or the Staff's Presentation.
Energy Efficiency Legislation Filed
A number of energy efficiency bills have recently been filed in the state of Maine. A complete list is available on the Efficiency Maine Web site.
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Massachusetts |
DTE Issues Order on Distributed Generation
On February 16, the Department of Telecommunications and Energy (DTE) issued Order 02-38-D, “Investigation by the Department of Telecommunications and Energy on its own motion into Distributed Generation.” The Order approves the proposed revisions to the model interconnection tariff as submitted by the Massachusetts Distributed Generation Interconnection Collaborative. These revisions include expanding the size limit for systems eligible for the simplified interconnection process and clarifying the exemption of most public facilities. Read more about the revisions and the DTE’s analysis here.
Comment Period on Energy Efficiency Performance Standard Closes
As part of Docket 06-113, the Massachusetts Division of Energy Resources (DOER) accepted input from interested parties on “Establishing an Energy Efficiency Performance Standard for Basic/Default Service.” Comments, due January 31, were submitted by more than 15 utilities and organizations, including NSTAR, Massachusetts Electric Company, Western Massachusetts Electric Company, Conservation Services Group and the Attorney General. The comments are posted on the Mass Department of Telecommunications and Energy Web site.
Green Communities Act Filed on March 20
On March 20, Massachusetts House Speaker Salvatore DiMasi filed a clean energy bill, known as the “Green Communities Act.” Among its many provisions, the bill requires the state government to cut down on electricity use and set guidelines for energy-conscious state construction projects, and would create a trust fund to provide grants and loans to green communities for energy efficiency projects. This bill would eliminate the current system benefits charge and instead impose a mandatory surcharge on electric and gas bills, half of which would be designated to the energy efficiency trust fund, and half of which would be set aside for renewable energy programs. For more information, please read the full bill.
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New Hampshire |
Proposal Submitted to Renew Energy Conservation Code in New Building Construction
On March 16, the Department of Public Utilities Commission submitted their initial proposal for renewing the New Hampshire Code for Energy Conservation in New Building Construction. The code, initially adopted in 1999, expired on February 1. For information on the amendments being considered, read the Initial Proposal.
Changes to SBC Legislation Adopted
On March 6, the House passed and adopted House Bill 119, which repeals the system benefits charge (SBC) sunset of June 2008. The bill now awaits approval by the Senate Energy, Environment, and Economic Development Committee. To track the bill, visit the legislature's Web site.
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New Jersey |
Demand Side Management Rules Considered
In Docket EX06110813, the New Jersey Board of Public Utilities (BPU) has proposed to repeal and replace its rules regarding demand side management (DSM) for energy conservation, which expired on December 19, 2006. The goal of the DSM program rules was to encourage the State’s gas and electric utilities to promote cost-effective investment in energy conservation programs, including installed conservation, load management and energy efficiency measures in residential, commercial, industrial, institutional, and governmental facilities. As an incentive to develop these programs, the utilities were permitted to earn financial returns equivalent to, or greater than, the returns provided on utilities owned supply side projects. Due to the discontinuance of the DSM program, the DSM rules are no longer needed. However, term extensions for outstanding contracts executed under the standard offer programs must still be addressed. Therefore, the BPU is proposing new rules under the chapter governing renewable energy and energy efficiency programs. The proposal covers contracts previously executed under the DSM program, and restrict the term of those contracts to the term in effect at the time the rules are adopted. More information is available here.
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New York |
PSC Releases Notice Soliciting Comments on System Benefits Charge III
In November of 2006, the New York State Energy Research and Development Authority (NYSERDA) submitted a petition on the System Benefits Charge (SBC) in which they propose a reallocation of certain SBC II funds, as well as applying any unexpended SBC II program funds that existed as of the expiration date of the SBC II programs to program funding categories in the SBC III program. The Notice requests comments relating to NYSERDA’s petition. Read the Notice Soliciting Comments here.
NYSERDA to Give Nearly $7 Million for Distributed Generation Projects
The New York State Energy Research and Development Authority (NYSERDA) announced on February 12, that it will give $6,422,450 in funding to support seven distributed generation projects throughout the state. The projects, which are sited at three universities, an office building, a large city hotel, a municipal wastewater treatment plant, and an urban condominium, will co-generate 38,475 kW of electricity and heat. Read the Press Release for more information.
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Vermont |
Energy Efficiency Potential Study Released
The Department of Public Service released the Vermont Energy Efficiency Potential Study for Oil, Propane, Kerosene, and Wood Fuels on January 16. The study analyzes the achievable cost effective energy efficiency potential for these fuels. Read the Executive Summary or Complete Report.
Draft Update for 2005 Electric Plan Released
The Department of Public Service (DPS) issued a draft update to supplement the 2005 Electric Plan and provide Vermonters with a consolidated source of information about the many actions and activities that have transpired since the release of the plan. The update includes a DPS forecast of electricity demands along with other information of general interest about the electric sector. For more information, read the Draft Update to the 2005 Electric Plan.
Bill on Greenhouse Gas Reduction and Building Efficiency Referred to Finance Committee
Vermont Senate Bill 94, “An Act Relating to Greenhouse Gas Reduction, the Efficiency Utility, Assessing an Efficiency Nega-Rate Charge on Heating Fuels, and Other Matters Relating to Building Efficiency,” was referred to the Senate Finance Committee on March 16. This bill proposes to expand Efficiency Vermont’s authority and independence and authorizes the efficiency utility to attain efficiencies from sources that are not related to the use of electricity. The bill also proposes to allow the Public Service Board to set the level of a fuel efficiency nega‑rate upon heating oil and other heating fuels to finance the program as well as additional support for weatherization and low-income programs. Read the bill for more information and status updates.
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Rhode Island |
National Grid Submits 2007 Demand Side Management Program Plan
National Grid (NG) has filed its2007 Demand Side Management (DSM) Program Plan/Settlement Agreement through Docket 3779. In the settlement agreement, NG projected a negative DSM fund balance for 2006; these expenses will be funded by the 2007 DSM collections. NG also has agreed that the demand-side management programs for 2007 will have an operating budget of $22,527,800. The plan allows for the continuation of the EnergyWise, Single Family Low Income Services Appliance Management, ENERGY STAR Heating, ENERGY STAR Central Air Conditioning, ENERGY STAR Lighting, ENERGY STAR Appliances, ENERGY STAR Homes, and Energy Efficiency Educational programs. To read the entire plan, visit the Rhode Island PUC Web site.
Pascoag Utility District Files 2007 Demand Side Management Program Plans
Through Docket 3776, the Rhode Island Public Utilities Commission approved Pascoag’s 2007 demand side management (DSM) programs and associated budget as filed on October 20, 2006. The PUC ordered that a factor of $0.0023 per kWh be approved and that $.002 be applied to the DSM programs Pascoag must also file any request to reallocate funds among programs up to 10 percent of the total budget. The 2008 DSM plan must filed no later than October 15, 2007. Read the Order here.
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