Energy efficiency standards continue to make progress in the Northeast
Progress was made in advancing energy efficiency standards in the Northeast during the second quarter of 2006. State activities around the region included the adoption of legislation, and work on implementing energy efficiency standards statutes.
Legislative Activity in the Northeast
Vermont: After a three-year effort to establish efficiency standards in Vermont, Governor James Douglas signed H.253, An Act Establishing Energy Efficiency Standards for Certain Appliances on May 10, 2006. Vermont is the seventh Northeast state to adopt efficiency standards.
The Vermont legislation includes efficiency standards for six appliances including residential furnaces, residential boilers and furnace fans, making it the second state (after Massachusetts) to adopt these standards. When the standards are implemented, electricity consumption will decrease by an annual amount of 80,000 megawatt-hours, and natural gas and heating oil consumption will drop by 525,000 million btus. These energy savings are equivalent to the annual consumption by 11,000 households and 6,000 households, respectively.
The work to adopt the standards bill in Vermont was led by James Moore of the Vermont Public Interest Research Group (PIRG). Moore was instrumental and effective in educating key legislators as well as other important stakeholders. He also effectively countered the opposition of powerful interest groups such as the Gas Appliance Manufacturers Association (GAMA). Other groups involved in the effort include the Vermont Energy Investment Corporation and the Regulatory Assistance Project.
The Vermont Department of Public Service must now take up the rulemaking process. They have until June 2007 to finalize the rules for the standards outlined in the adopted legislation.
Rhode Island: Both legislative chambers in Rhode Island have passed efficiency standards legislation and its adoption awaits a decision by the Governor. If the Governor signs the legislation, Rhode Island will have the distinction of being the first state to adopt efficiency standards twice. This is important because most of the standards adopted in Rhode Island last year have been preempted by federal legislation. While the recently passed bill includes new furnace efficiency standards, it also includes a “trigger provision” that will only allow the furnace standards to go into effect when two other New England states adopt the same or substantially similar standards. However, because Vermont and Massachusetts have in fact adopted the same standard, the trigger has already been activated.
This effort has been led by Matt Auten of Rhode Island PIRG. His work educating legislators, stakeholders and members of the administration created a smooth process for adopting the legislation.
Connecticut: Despite making significant progress, the Connecticut Legislature was ultimately unable to pass an efficiency standards bill this year due to a shortened session that did not give legislators enough time to address all the issues before them. Nevertheless, the activity around standards in Connecticut this year indicates that the odds of adopting efficiency standards next year are high.
The legislation was reported favorably out of several committees, most importantly, the Joint Committee on Energy and Technology. Most of the concerns expressed by opponents and legislators have been addressed, such as reducing the scope of the furnace and boiler standard to include only state purchases, at the behest of the Carrier Corporation. In addition the standard for metal halide lamp fixtures was amended to make it consistent with the standard in Rhode Island and New York. Finally, exemptions were added to the reflector lamp standards to make it consistent with the standard in Massachusetts and Rhode Island.
With excellent lead advocates in Connecticut, including Environment-Northeast and Connecticut PIRG, efficiency standards legislation should fare well next year.
Maine: As was noted in the last issue of NEEP Notes, Governor Baldacci had developed a set of energy policies that were introduced into the legislature as bill number LD 041. Among its provisions, the bill gave the Maine Public Utilities Commission the authority to set efficiency standards. Although the legislation was ultimately approved by the legislature and signed by the Governor, the provisions on efficiency standards were stripped from the bill. Supporters of the legislation felt that standards were too controversial.
Progress in Implementing Efficiency Standards Bills
Three states in the Northeast were actively working on implementing efficiency standards statutes.
Massachusetts: The Massachusetts Division of Energy Resources (DOER) held a public hearing recently that was attended by Isaac Elnecave of NEEP, Charlie Harak of the National Consumer Law Center (NCLC) and Frank Gorke of MassPIRG. At the hearing, Mr. Harak testified comments on behalf of NCLC, MassPIRG, NEEP and the Appliance Standards Awareness Project (ASAP). The hearing was also attended by George Cook of GAMA who testified against the furnace and boiler standards included in the legislation. DOER indicated at that time that it planned to strictly follow the instructions in the legislation and not make any of the changes suggested by GAMA.
Once the DOER finished a draft of the rules, it was sent to the Committee on State Administration and Regulatory Oversight for review. The Consumer Electronics Association hired an in-state lobbyist to agitate for two changes in the external power supply standard. One change would incorporate an exemption that had recently been added in California. This was not a substantive change. The second amendment would change the date of implementation. This would be a substantive change as it would directly contradict the statute. Efficiency advocates objected. The committee, which only has the power to recommend changes did, in fact, recommend both amendments. The DOER, however, has only agreed to the first. The in-state lobbyist has threatened, if both changes are not included, to re-open up the legislation.
New York: The New York State Energy Research and Development Authority (NYSERDA) held two meetings (of four total planned meeting) of its efficiency standards advisory committee. This committee was formed to provide input on the implementation of the standards legislation in New York. During the second meeting, presentations were made on the four product standards included in the New York legislation that have not been preempted by federal legislation. In each presentation, the contractor charged with assisting NYSERDA in implementing the standards:
- Detailed the energy use of the product,
- Reviewed the current technology,
- Provided an overview of other existing standards for the product such as ENERGY STAR,
- Discussed market data such as market penetration of efficient products and possible energy savings, and
- Presented different standards scenarios such as adopting the standard set by California, Europe or setting a New York specific standard.
The next meeting will focus on the lighting products (reflector lamps and metal halide lamp fixtures) and try to gain consensus on a particular approach. The final meeting will deal with the electronic equipment.
Rhode Island: On May 12, NEEP, Rhode Island PIRG, and ASAP submitted comments on the draft rules issued by the Rhode Island Public Utilities Commission (PUC) and the State Energy Office (SEO). The PUC had submitted an earlier draft for comment but revised them (and therefore had to move back the deadline for comments) to incorporate language submitted by the State Energy Office (SEO). Although this action set the implementation effort back about a month, it was a very rational decision.
Although the standard statute directs the SEO and PUC to issue two separate sets of rules covering different aspects of the standards bill, both agencies agreed that it made more sense to combine their efforts and have all the rules in one place, thus cutting down on the potential confusion that two sets of rules relating to the same statute would generate. The comments submitted by efficiency advocates suggested relatively minor changes in the draft rules. The PUC has not yet taken any action.
For more information about the Energy Efficiency Standards Project, please contact Isaac Elnecave.
