Supreme Court Agrees to Hear Comments on Federal Carbon Dioxide Regulation

The U.S. Supreme Court has agreed to take up the case of Massachusetts v. the Environmental Protection Agency (EPA) in which 12 states, 13 environmental groups, two cities and American Samoa have brought suit against the federal government to require tighter pollution control on the newest generation of power plants. The lawsuit comes in response to a long-running court battle over global warming and pollution from power plants. In 2005 the EPA decided that the Clean Air Act does not authorize them to regulate carbon dioxide emissions to reduce global warming, and the EPA maintains there is not enough scientific data on global warming to support such a move. In July 2005, a three-judge panel in the U.S. Court of Appeals for the District of Columbia Circuit upheld the EPA's decision. The Supreme Court ruling is likely to come next year. To read more about the lawsuit, please click here. 

Western Governors’ Association Make Commitment to Increase Energy Efficiency

During a recent meeting of the Western Governors’ Association (WGA), the group committed to increasing energy efficiency by 20 percent by 2002 and has recommended a variety of energy efficiency policies aimed at fulfilling this goal.  These energy efficiency goals and policies are outlined in a report titled “Clean Energy, a Strong Economy and a Healthy Environment,” which was produced by a WGA advisory committee. The report recommends energy-efficiency tax credits; incentives for the promotion of building codes that go beyond standard energy-efficiency levels; expansion of effective programs promoting best practices in industrial energy efficiency and combined heat and power; improvements in national appliance standards; and adequate funding for state energy-efficiency programs. The report can be read in full at the WGA Web site.

 

Federal Energy Regulatory Commission (FERC) Approves New England Forward Capacity Market Settlement

In an order dated June 15, 2006, FERC approved a settlement agreement addressing problems in New England’s generation capacity market. The settlement establishes a forward capacity market (FCM) in place of the contested locational installed capacity (LICAP) mechanism proposed two years ago by ISO-New England, the region’s independent power grid system operator. The agreement is result of over 30 formal settlement conferences overseen by a FERC administrative law judge during a four-month period. All but eight of the 115 parties involved in the proceedings supported the settlement in whole or part. A few New England governors recently have spoken out against the FCM plan, including Governor Rell from Connecticut and Governor Baldacci from Maine. More information is available in the FERC press release, Gov. Rell’s press release, and Gov. Baldacci’s press release.

ACEEE Releases Report on Energy Efficiency and the Regional Greenhouse Gas Initiative

In May, American Council for an Energy-Efficient Economy (ACEEE) released its report titled, “Energy Efficiency’s Role in a Carbon Cap and Trade System: Modeling Results from the Regional Greenhouse Gas Initiative.” The report summarizes the results of a ground-breaking effort to calculate the regional effects of increased energy efficiency investment in a carbon cap-and-trade policy framework. The report finds that doubling efficiency would cut load growth by about two-thirds in 2024 from 2006 levels and keep carbon emissions virtually flat. The doubling of efficiency would also reduce energy price growth to almost zero until 2020 when they would have less than a one percent impact on wholesale power market prices. The full report is available on the ACEEE Web site. 

Regional Greenhouse Gas Initiative (RGGI) Model Rule Comments Submitted

On May 22, 2006 stakeholders submitted all final comments on the RGGI Model Rule. The Model Rule provides detail to the provisions laid out in the Memorandum of Understanding that was agreed to in December 2005. To read the comments, please visit the RGGI Web site. 

Regional Greenhouse Gas Initiative (RGGI) State Updates

Vermont: On May 2, 2006 Vermont Governor James Douglas signed House Bill 0860, which officially cements Vermont’s participation in RGGI. The bill also declares that Vermont will allocate 100 percent of the Vermont statewide budget of tradable power sector carbon credits to consumers, of which energy efficiency investments are eligible. The bill can be read in full at the Vermont State Legislature’s Web site.

Massachusetts: Senate Bill 2475, sponsored by Sen. Robert O'Leary (D-Barnstable), aims to insert Massachusetts into the eight-state RGGI agreement as an active participant. The measure has already been endorsed by the Legislature's Committee on Environment, Natural Resources, and Agriculture, and has been referred to the Senate Ethics and Rules Committee. Governor Mitt Romney initially declined membership in RGGI because he believed that higher power plant operational costs, as a result of the carbon cap and trade, would eventually trickle down to consumers. However, according to analysis by the Massachusetts Division of Energy Resources, the pact could result in a decrease in electricity bills even as rates increase. Senate Bill 2475 can be read in full here. 

Maryland: On May 2, 2006 Governor Robert Ehrlich signed the Healthy Air Act, which contains a provision requiring the state to become involved in the RGGI. Maryland will become a full participant by June 30, 2007. The Maryland Healthy Air Act can be read online at the Maryland General Assembly’s Web site.

 

Energy Bills Do Not Pass Before Session Concludes

Three Connecticut bills, SB 191, HB 5525, and HB 5261 failed to pass before the closing of the legislative session. Senate Bill 191 required green building standards, House Bill 5525 established a new Energy and Technology Authority, and House Bill 5261 established natural gas and oil conservation programs. Because legislation does not carry over through sessions in Connecticut, the bills will have to be reintroduced when the next session begins. The Connecticut Energy Conservation Management Board has already held two energy summits to discuss the development of a new energy bill, which will include many of the provisions set in the three bills introduced this past session. 

Connecticut 2006 Conservation and Load Management Plan Released

On June 7, the Connecticut Department of Public Utilities Control (DPUC) released a final decision on Connecticut Light and Power (CL&P) and United Illuminating’s (UI) Conservation and Load Management (C&LM) Plan for 2006. The plan sets CL&P’s proposed budget at $49,245,000 and UI’s at $12,915,315. This is the second year of budget reductions resulting from a 2003 Connecticut General Assembly decision that allows the Public Utilities Commission to authorize bonding and to divert CL&M funds to the state’s General Fund. The budget does not include the resumption of the $1 million per month diversion to the General Fund beginning July 2006. The 2006 C&LM plan is available on the Connecticut DPUC Web site.  

Governor Rell Issues Progress Report on State Efforts to Cut Energy Consumption

On May 16 Governor Rell discussed Connecticut’s progress towards fulfilling a December 2005 challenge for state building energy consumption to be cut by 10 percent in 2006. In just under 6 months, the state has: performed a ‘most beneficial rate’ analysis for state agencies that saved nearly $100,000; purchased energy-efficient products and clean-fuel, low emission and/or hybrid-electric vehicles whenever feasible; and developed energy efficient scorecards which have helped the state prioritize the top ten agencies with the most efficiency opportunities. A press release is available with more information on the State of Connecticut Web site. 

Governor Corzine Signs Energy Efficiency Executive Order

On April 23, 2006 Governor John Corzine signed Executive Order No. 11 which creates the new position of Director of Energy Savings and requires municipalities to buy more materials with recycled content and fewer products containing lead, mercury, and other toxic chemicals. Even though the order will allow agencies to spend up to 15 percent more on products deemed environmentally friendly, Corzine said his energy efficiency measures could eventually shave $20 million a year off New Jersey's $128 million electric bill. The new director, yet to be named, will conduct energy audits of hundreds of state buildings and other properties and review state purchasing rules to encourage the use of renewable sources such as wind and solar. The director would also be in charge of researching other ways in which the state can improve its energy efficiency, including the benefits of purchasing hybrid gas-electric vehicles. For more information please read the full Executive Order. 

DCA Creates Green Task Force to Consolidate Efforts

Susan Bass Levin, Commissioner of the New Jersey Department of Community Affairs (DCA), has announced the creation of a Green Building Task Force. The Task Force is in accordance with Governor Corzine’s Executive Order to increase energy efficiency in state government. It will include representatives from the DCA’s Housing and Codes Divisions, the Home Mortgage Finance Agency, the New Jersey Redevelopment Authority, the Board of Public Utilities, the Department of Environmental Protection, and the state Treasurer's Office. Among other responsibilities, the Task Force will develop a guide for "green building," and look for ways to expand two programs in the department: Affordable Green, which provides grants for building affordable housing and encourages energy efficient materials and technologies, and the Meadowlands Commission, whose recently announced plan will generate enough solar energy to serve 2,800 homes and reduce energy costs for area towns and schools. For more information, read the press release from May 5 and an article featured in the Philadelphia Inquirer.

New Jersey Board of Public Utilities Releases 2005 Annual Clean Energy Report

The New Jersey Board of Public Utilities (NJBPU) recently released the 2005 Annual Report for New Jersey's Clean Energy Program. The report states that in 2005 New Jersey's Clean Energy Program expended $124.6 million to provide homes and businesses with services and financial assistance. These efforts generated 382,845 MWh of annual electricity savings, 617,261 therms of natural gas savings, and 29,136 MWh of electricity generated from clean, renewable sources of energy. The amount of electricity saved is enough to provide the annual requirements of approximately 50,000 homes in New Jersey. For a complete copy of the report, please visit the New Jersey Clean Energy Web site.  

New York Power Authority (NYPA) Releases 2005 Annual Report

NYPA released its 2005 Annual Report, which states that 2005 operating expenses totaled $2,430 million and energy conservation program expenditures were $75 million. The report also examines various alternative fuel sources, which NYPA may use increasingly in the future. For more information, you can access the full Annual Report on the NYPA Web site.

New York State Energy Planning Board Releases 2005 Annual Report

The New York State Energy Planning Board released its 2005 Annual Report, highlighting the successes of the state energy plan. The report states that as of September 2005, through numerous programs offered by the New York State Energy Research and Development Authority (NYSERDA), the New York Power Authority (NYPA), and the Long Island Power Authority (LIPA), New York State saw savings of 2,900 gigawatt-hours of electricity and reduced peak electricity demand by nearly 1,500 megawatts. The full report is available on NYSERDA’s Web site. 

NYSERDA Releases 2005 Energy $mart Program Report

The New York State Energy Research and Development Authority (NYSERDA) released their 2005 New York Energy $mart Program Report. The report contains information on the impact of the programs during 2005 as well as the cumulative impact of the programs during the initial 8 years of funding. Some of the cumulative achievements of the programs include 1,950 GWh electricity savings from energy efficiency and on-site generation; a 1,040 MW peak demand reduction; and $275 million saved on annual energy bills. The full report is available on the NYSERDA Web site.