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An Update on Energy Efficiency Policies Across the Northeast
Click here to read an update on NEEP's Regional Initiatives and Training and Education activities
| National |
National Action Plan for Energy Efficiency Released
On July 31, a National Action Plan for Energy Efficiency was released by a Leadership Group of gas and electric utilities, state agencies, energy consumers, energy service providers and energy efficiency organizations. The project was facilitated by the Department of Energy and the Environmental Protection Agency. The plan contains a number of recommendations on how the United States can improve its energy efficiency, including: recognizing energy efficiency as a high-priority energy resource; making a strong, long-term commitment to implementing cost-effective energy efficiency as a resource; and modifying policies to align utility incentives with the delivery of cost-effective energy efficiency. NEEP joined more than 60 organizations from across the country in supporting this set of actions. For more information, please access the National Action Plan and NEEP's press release.
Clinton and Mayors From Around the World Form Alliance on Climate
Former President Bill Clinton and mayors from the Large Cities Climate Leadership Group announced an initiative to combat climate change and increase energy efficiency. The initiative will pool technology and resources in order to reduce pollution that contributes to global warming. It will also promote clean-burning fuels and energy conservation. The plan calls for President Clinton to help participating cities combine their purchasing power in order to lower the price of energy-saving products and accelerate the development of technology. For more information, read the news article featured in the Washington Post on August 1.
Vermont Senator Introduces Global Warming Legislation
Vermont Senator James Jeffords, member of the Senate Environment and Public Works Committee, introduced the Global Warming Pollution Reduction Act (Senate Bill 3698)in July. The Act contains sweeping legislation that will set the United States on a path to decrease and eventually reverse the emission of greenhouse gases that cause global warming. Among the provisions included in the legislation are measures that require the U.S. to reduce emissions to 1990 levels between 2010 and 2020 and to a level that is 80 percent below 1990 levels by 2050. It also calls for the creation of energy efficiency standards similar to those enacted in California, and would require the U.S. to derive 20 percent of its electricity from renewable sources by 2020. Co-sponsors of the bill include: Senators Frank Lautenberg (New Jersey), Robert Menendez -New Jersey), Edward M. Kennedy (Massachusetts), Patrick Leahy (Vermont), Jack Reed (Rhode Island), Chris Dodd (Connecticut), and Paul Sarbanes (Maryland). The bill can be read in full on Senator Jeffords' Web site.
Federal Rulemaking on Distribution Transformers
The Department of Energy (DOE) recently published a Notice of Proposed Rulemaking (NOPR) for distribution transformers, through which a standard will be issued.
Advocates have pushed for a standard that captures all cost-effective energy savings. instead, The DOE proposal is weaker, leaving energy savings on the table. The DOE standard will waste 12 billion kilowatt-hours of electricity- the amount of electricity consumed by the state of Iowa. In addition to energy savings, the standard favored by advocates would save utilities and their customers over $11 billion and reduce carbon emissions by 85 million metric tons of carbon more than the proposed DOE standard.
The American Council for an Energy Efficient Economy (ACEEE) and the Appliance Standards Awareness Project (ASAP) have led an effort to persuade utilities to support a strong cost-effective standard. Unfortunately, utility support has been sporadic. Nevertheless, important utilities have signed on, including Excelon Energy. NEEP is coordinating with ASAP in contacting other major utilities to raise support.
The DOE held a public hearing on the proposed standard in September; comments are due by October 18. For more information, contact Isaac Elnecave.
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| Regional |
Regional Greenhouse Gas Initiative Model Rule Released
On August 15, the eight states actively participating in the Regional Greenhouse Gas Initiative (RGGI) approved a Model Rule, which defines the general guidelines for how RGGI will operate when it goes into effect in 2009. The Model Rule contains guidelines on allowance allocation, allowance tracking systems, and carbon dioxide emissions offset projects. There are several sections of the Model Rule, such as the allocation of the consumer benefit, which may be modified by each individual state in their own model rules. Although the Model Rule requires that states apportion at least 25 percent of their allocations to the consumer benefit or strategic energy purpose, the definition of what these benefits include remains vague, allowing each state to determine their own definition. Potential benefits may include the promotion of energy efficiency measures, direct mitigation of electricity ratepayer impacts, promotion of renewable or non-carbon-emitting energy technologies, and the stimulation or reward of investment in the development of innovative carbon emissions abatement technologies. More information on the Model Rule is available from the RGGI Web site.
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Connecticut |
Federal Mandated Congestion Charge Interim Decision Issued
On September 13, the Connecticut Department of Public Utility Control (DPUC) released an interim decision on Docket 05-07-14 PH02, "DPUC Investigation of Measures to Reduce Federally Mandated Congestion Charges." In this decision, the DPUC approved a request for proposal (RFP) to procure long-term projects with the objective of reducing federally mandated congestion charges, and its associated appendices. The RFP was released on September 15. For more information, please read the interim decision, and the RFP. Also, visit the RFP Web site.
Class III Portfolio Standard Approved
On June 28, the Connecticut Department of Public Utility Control (DPUC) released their final decision on the Class III portfolio standard (Docket 05-07-19). The decision describes procedures for the administration of the Class III portfolio standard program, which was approved through an Interim Decision in February of this year. The DPUC’s final decision resolves issues pertaining to the accreditation of savings from conservation and load management (C&LM) measures, combined heat and power (CHP) efficiency and metering requirements, environmental attribute treatment, qualification of demand response, credit creation, allocation, and integration with the New England Power Pool’s Generation Information System. To read the docket, visit the DPUC Web site.
Final 2006 Natural Gas Conservation Program Plan Released
On August 31, the Connecticut Public Utilities Commission approved a Natural Gas Conservation Program Plan jointly filed by the Yankee Gas Services Company, Connecticut Natural Gas Corporation, and the Southern Connecticut Gas Company. The plan states that the total funding for energy efficiency programs in 2006 will be $2,382,000. You can access the plan here.
Governor Rell Unveils Comprehensive Energy ‘Blueprint’
On September 18, Governor Jodi Rell unveiled an energy plan that will enhance Connecticut’s status as a model for energy technology and conservation. The plan includes an array of long-range programs aimed at strong progress on energy consumption and conservation as well as shorter-term measures for relief from high prices such as zone pricing for gasoline and the lifting of a utility tax surcharge. The plan seeks to achieve a 20 percent reduction in energy-peak consumption by 2020. It will mandate the purchase of ENERGYSTAR appliances and equipment for state agencies and create a sales tax exemption for all consumers on ENERGYSTAR air conditioners. To learn more about the plan, please read the Governor’s press release.
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Maine |
PUC Releases Order Concerning Natural Gas Energy Conservation Programs
On July 26, the Maine Public Utilities Commission (PUC) released an “Order Adopting Rule and Statement of Factual and Policy Basis” (Docket Number 2006-129) which approves Chapter 480 “Natural Gas Energy Conservation Programs” and governs the implementation of cost effective conservation programs by natural gas utilities. The order requires funding levels for the gas conservation programs to be no less than three percent of the utility’s annual delivery revenue. It also requires gas distribution utilities to design and implement conservation programs that increase consumer awareness, create more favorable market conditions for the increased use of efficiency products and services, and promote sustainable economic development and reduce environmental damage. More information is available in the full order.
PUC Requests Comment on Incorporation of Efficiency into Standard Offer Supply
The Maine Public Utilities Commission (PUC) requested comments on incorporating demand-side resources into the supply of standard offer service for residential and small commercial customers (Docket 2006-411). Two approaches to the procurement were proposed by the PUC, one which would allow bidders to propose the amount of demand-side resources that would serve the standard offer load, and another in which the PUC would specify a required minimum percentage of the load that must be satisfied by demand-side resources. NEEP was among 10 organizations to submit comments. The request and comments are available on the Maine Public Utilities Commission Web site. On September 20, the Maine Public Utilities Commission (PUC) announced it will seek bundled demand and supply proposals for standard offer service for residential and small commercial customers of Central Maine Power and Bangor Hydro-Electric. This competitive solicitation will be the country’s first to combine electricity and conservation for residential standard offer customers. The PUC plans to issue a formal request for proposals in October.
For more information, read the PUC press release.
PUC Releases Notice of Inquiry into New Conservation Programs
On August 9, the PUC released Docket Number 2006-446, an “Inquiry into New Conservation Programs and Developing a Plan for Using Increases in the Conservation Fund.” The inquiry focused on sections one and seven of the “Act to Encourage Energy Independence for Maine,” enacted last session. Questions included whether the Commission should consider any specific types of peak demand reduction programs, how the Commission should determine whether demand reduction program reduced the price of electricity over time for all consumers, as well as input regarding additional and potentially new conservation programs. NEEP, Bangor Hydro-Electric and the Maine Public Housing Authority submitted comments. For more information, visit the Maine PUC Web site.
Governor Unveils New $7 Million Energy Loan Program
Gov. John Baldacci has unveiled a Home Energy Loan Program (HELP) to assist Maine families in meeting this winter’s home heating bills. The new $7 million HELP program provides low interest rate energy improvement loans to Maine’s working families. Homeowners with incomes up to 115 percent of the area median income are eligible for loans of up to $15,000. The loans are made at one percent interest to homeowners who make improvements suggested by a certified energy auditor, and at three percent interest to those who do not use an energy auditor. Eligible improvements include the cost of an energy audit, heating system replacement, and ENERGY STAR rated appliances and windows.
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Massachusetts |
Governor Romney Signs Mercury Management Bill
On July 28, Gov. Mitt Romney signed Chapter 190 of the Acts of 2006, the Mercury Management Bill (previously HB 5112), which sets guidelines and goals for the state to reduce the expulsion of mercury into the environment through improper disposal. The bill requires that manufacturers develop, implement, and market recycling programs for mercury added product disposal, including fluorescent light bulbs. If the manufacturer fails to achieve the set recycling goals, they will be required to pay up to $1 million per year of non-compliance to the Department of Environmental Protection for use as grants to municipalities or regional authorities to meet recycling rates. Read Chapter 190 in its entirety for more information.
Governor Romney Releases Massachusetts Energy Plan
Governor Romney unveiled an energy plan for Massachusetts on August 11. The plan calls for more efficient energy use in state buildings, increased use of biofuels in the state automobile fleet, and the creation of a lottery in which prizes will be awarded to consumers who buy energy-efficient equipment. The plan also suggests the development of a “negawatts” program, which would seek to both incorporate energy efficiency into basic offer service and establish a state energy efficiency portfolio standard. Finally, Romney plans to seek market-based electricity pricing, in which consumers would pay more for running appliances and other electrical devices at peak periods, while paying less at off-peak times. A presentation summarizing the plan is available with more information.
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New York |
PSC Solicits Comments on Natural Gas Energy Efficiency Potential Report and Recommendations
On August 14, the New York Public Service Commission (PSC) released a notice soliciting comments (Case 03-G-1671) on the New York State Energy Research and Development Authority’s (NYSERDA) Consolidated Edison Energy Efficiency Potential Study and recommendations. NYSERDA submitted this study, along with further recommendations, on June 22 as part of the PSC’s September 27, 2004 Order on Con Edison’s three year rate plan agreement. To read the notice and comments, please visit the New York Department of Public Service Web site.
Proceeding on Decoupling
On August 28, NEEP signed on to support the National Resources Defense Council’s (NRDC) recommendations for New York on Decoupling Docket 03-E-0640 and Case 06-G-0746. The recommendations include ensuring that distribution utilities’ cost recovery is independent of total electricity or natural gas delivered, that this is accomplished through modest and regular adjustments in rates, and that distribution companies should be financially rewarded for lowering their long-term costs through an incentive mechanism that equitably shares gains with shareholders.
PSC Operating Under SBCIII Funds
As of July 1, the New York State Energy Research and Development Authority (NYSERDA) began administration of the third round of the New York Energy $mart Program. The program is funded by a system benefits charge amounting to $175 million per year for five years. Details of planned activities can be found on the NYSERDA Web site.
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Vermont |
PSB Approves Budget Increase for Efficiency Vermont
On August 2, the Vermont Public Service Board (PSB) ruled that it will increase Efficiency Vermont's budget by roughly 75 percent over the next few years and that it will consider increasing spending on energy efficiency even further. The PSB ordered that Efficiency Vermont's current budget rise from $17.5 million to $19.5 million. Next year the budget will reach $24 million and the 2008 budget will be $30.75 million. The PSB said its decision would result in a ratepayer electricity bill increase of less than 0.2 percent this year, 0.5 percent next year and 1.2 percent in 2008. The order can be read online.
Green Mountain Power to Give $9.2 Million for Energy Efficiency
In 2001, the Vermont Public Service Board released an order allowing the Green Mountain Power Corporation (GMP) to collect from ratepayers money it needed to pay for power it was receiving from the provincial utility Hydro-Quebec. Along with the decision, the board stated that if GMP were ever sold, half the profits from the sale had to be returned to customers, up to a cap of $8 million. The current sale of GMP to a subsidiary of Northern New England Energy Corp. is expected to net GMP about $65 million over its book value. Consequently, GMP will be paying back to its customers $9.2 million, the $8 million adjusted for inflation, which will be put into an energy efficiency fund, potentially to be administered by Efficiency Vermont.
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Copyright © 2006
Northeast Energy Efficiency Partnerships, Inc.
5 Militia Drive • Lexington, MA 02421
Tel 781-860-9177 • Fax 781-860-9178
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