A message from the Executive Director
Leading the Region in Energy Efficiency
2007 was a year of tremendous increase in the commitment to building energy efficiency in the Northeast – a result of new leadership across the region from all directions - Governors, legislators, utility executives, communities and business leaders. Responding to the spiraling fossil fuel costs and the urgent need to reduce carbon emissions to sustainable levels, this leadership is essential to make the major gains in energy efficiency that are possible and needed. Here are some of the top acts of leadership for efficiency and clean energy in the Northeast that we observed in 2007 that offered both innovation and inspiration:
Connecticut Legislature Makes Energy Efficiency a First Priority Energy Resource: The Connecticut Legislature raised the bar for energy efficiency and clean energy in 2007 through the enactment of a comprehensive energy bill that advances energy efficiency and clean energy resources by removing disincentives to utility investment in energy efficiency, creating a more transparent and consumer friendly energy planning process, and by implementing leading edge efficiency standards for appliances and equipment sold in the state. Connecticut House Bill 7432 establishes cost-effective efficiency as the first priority resource, and requires Connecticut utilities to plan to procure energy efficiency and clean energy demand resources. The legislation also calls for electric distribution companies to assess the role of efficiency to eliminate or stabilize growth in electric demand. In response, Northeast Utilities and United Illuminating Company prepared plans to procure all cost-effective energy efficiency. The bill also sets LEED silver, or equivalent, as the minimum efficiency standard for commercial buildings starting in 2009. Governor Rell added to the effort by launching her OneThingCT marketing campaign in 2007 to help residents save on their energy bills and make a positive contribution to the environment.
Vermont Sets the National Pace for Aggressive Efficiency:
A mandate from the Vermont legislature resulted in the Public Service Board setting a budget for Efficiency Vermont that makes it the most aggressive energy efficiency program in the nation. With a budget in 2007 37 percent higher than in 2006 and a further increase approved for 2008, Efficiency Vermont, the nation’s only efficiency utility, is on track to generate energy and demand savings adequate to offset projected energy and load growth, and, very likely, reduce total energy consumption from current levels by 2010.
Renewed Commitment to Efficiency across the Board in Massachusetts: Massachusetts Governor Deval Patrick began his term by signing the Regional Greenhouse Gas Initiative Agreement in January and establishing the Executive Office of Energy and Environmental Affairs with able leadership committed to the Governor’s clean energy agenda. In April, the Governor issued Executive Order 484, “Leading by Example – Clean Energy and Efficient Buildings,” setting aggressive targets for state facilities in greenhouse gas emission reductions, energy conservation and efficiency, renewable energy, green buildings, and water conservation. House Speaker Salvatore DiMasi made efficiency and clean energy a top priority by proposing comprehensive legislation that engaged a coalition of unlikely partners to build broad support for an aggressive clean energy policy. The Department of Public Utilities got into the act by opening a docket to decouple distribution company profits from growth in energy sales, and the Division of Energy Resources worked with Attorney General Martha Coakley’s office to prepare a federal waiver petition to implement Massachusetts more stringent appliance efficiency standard for residential furnaces.
Governor Spitzer and Mayor Bloomberg Up the Efficiency Ante in New York: In April, New York Governor Eliot Spitzer challenged New Yorkers to reduce forecasted electric energy consumption by fifteen percent by 2015 – essentially offsetting projected growth and then some. To guide this, the New York Public Service Commission (PSC) undertook a “Fifteen by Fifteen” Energy Efficiency Portfolio Standards proceeding, as one of several interrelated efforts, to develop a state strategy to achieve that ambitious goal. With an initial PSC staff proposal in September, New Yorkers answered Governor Spitzer’s call by engaging in a multi-party effort to put together an efficiency policy and program framework to begin implementation in 2008. As the year ended, five working groups reported out their recommendations to the PSC.
Not to be outdone, On Earth Day, New York Mayor Michael Bloomberg announced a major new initiative, PLANYC for a Greener, Greater New York that calls for holding current electric and gas usage constant through 2030 while expanding the city’s population by 200,000 residents. Among fourteen initiatives to meet the PLANYC efficiency goals, the Mayor’s plan calls for a ten percent reduction in City Energy Bills, the formation of a City Energy Panning Board, and the establishment of a New York City Efficiency Authority (NYCEEA) responsible for reaching the city's demand reduction targets.
New Jersey BPU Undertakes Master Energy Planning Process to Achieve Twenty Percent Energy Reduction by 2020: Answering New Jersey Governor Jon Corzine’s call to reduce projected energy use by 20 percent by 2020, the Board of Public Utilities undertook a process in 2007 to develop a New Jersey Energy Master Plan to meet the Governor’s goals. The plan includes a steady diet of updated appliance efficiency standards and building energy code upgrades as well as an extended voluntary program effort.
Appliance Efficiency Standards – Connecticut and Maryland Lead a Second Round: The Connecticut Legislature, along with the Maryland Assembly adopted a second set of appliance efficiency standards in 2007 - less than three years since the last round – pushing the region and nation ahead to minimize wasteful energy usage. The standards covered a wide range of appliances – residential furnaces, external power supplies, incandescent reflector lamps and metal halide fixtures, commercial refrigeration and food warming cabinets, and pool pumps and heaters. They will save over 1,000,000 MWh and 280,000 metric tons of carbon by 2020. Significant progress was made in New Jersey and New Hampshire and we look forward to working for final adoptions there in 2008.
Efficiency Revival in Maryland: In April, Governor Martin O’Malley also signed the Regional Greenhouse Gas Initiative Agreement and signed an Executive Order to establish a Climate Change Commission to develop state climate change action plan. In July, Governor O’Malley announced an initiative to reduce energy consumption in Maryland per capita fifteen percent by 2015. The EmPOWER Maryland initiative will focus on improving efficiency in state building through a comprehensive program that invests in efficiency retrofits, establishes ENERGY STAR as the standard for state equipment procurement, and sets more stringent efficiency standards for new state facilities. In October, the Governor announced four efficiency programs to assist residents. This summer, Maryland became the first Northeast state to adopt provisions of the was the first northeast state to adopt the 2006 International Energy Conservation
Code as as the building design standard for both residential and commercial construction.
Energy Efficiency is a Centerpiece of the National Grid and KeySpan 2007 Merger: In September, National Grid and KeySpan Energy Delivery became one company. Throughout the merger, the companies held their commitments to energy efficiency as a strategic priority to meet customer needs for reliable, affordable power as well as to achieve the company’s aggressive carbon emission goals. Celebrating twenty-years of energy efficiency programs this fall, National Grid USA chose for its new management team executives known for their commitment to energy efficiency including Tom King, Executive Director of Electricity Distribution and Generation, formerly the CEO of Pacific Gas and Electric where he was known for his leadership in energy efficiency.
PSE&G Leads the Nation in Commitment to an Energy Efficient T&D System: In June, Ralph LaRossa, president and CEO of Public Service Electric and Gas (PSE&G) Company, announced that PSE&G will install more efficient electric delivery equipment, a move expected to reduce energy use by 100 million kWh and cut carbon emissions by some 60,000 tons by the year 2020. PSE&G plans to install more energy efficient primary and secondary wires for new overhead installations, install more energy efficient transformers atop utility poles when new or replacement units are needed, and expedite the replacement of aging transformer banks with state-of-the-art units. Looking past higher initial first costs for more efficient distribution equipment, PSE&G used life-cycle cost analysis to identify cost-effective upgrades. In addition, PSE&G became one of the first utilities in the nation using hybrid aerial lifts (a.k.a. bucket trucks), as part of an overall fleet efficiency upgrade program.
ISO-New England Leads Nation in Including Efficiency and Demand-Side Resources in RTO Capacity Resource Procurement: ISO-New England worked with public utility commissions and other key stakeholders to agree on a set of measurement and verification protocols that were approved by the Federal Energy Regulatory Commission allowing for the inclusion of energy efficiency and other demand-side resources in ISO-New England's newly established Forward Capacity Market. As a result, the 2007 bids to ISO-New England for the capacity market needs in 2010 included over 2,460 of demand-side resources that qualified to meet the projected need of 32,305 of firm capacity – 7.5 percent. Competing with existing generation as well as new, a significant portion of this demand resource is likely to clear the clear the first auction.
Northeast Business Leaders Show the Way to the Efficient Use of Energy: Business leadership is one of the most powerful ways our region can foster the expansion of energy efficiency. When recognizable, powerful companies make efforts to change the way they use energy, they serve as an example to others, guiding others to act in similar ways. While many businesses in the region have made and are making significant efforts to increase their energy efficiency, the efforts of six companies stand out this year. NEEP’s 2007 Northeast Business Leaders for Energy Efficiency were recognized at the Northeast Energy Efficiency Summit for their commitment and leadership to achieve energy savings through comprehensive, cost effective efficiency measures. The program administrators supporting the implementation of these measures were also honored for their leadership. The 2007 Business Leaders include:
You can find all the details about these leadership efforts at NEEP’s 2007 Summit Web site, or in this and previous issues of NEEP Notes.
Community Leadership for Energy Efficiency: Communities and schools in the Northeast are also leading the effort to advance energy efficiency. To date, 182 mayors from northeast states have signed the U.S. Mayors Climate Protection Agreement. To provide urgently needed guidance and assistance to mayors to lead their communities to achieve major greenhouse gas emission reductions, Douglas H. Palmer, Mayor of Trenton, NJ and President of The U.S. Conference of Mayors, launched the Conference of Mayors Climate Protection Center in 2007.
In addition, school districts around the region are also leading the expansion of efficiency by designing and constructing high performance, energy and resource efficiency schools.
For our part, in 2007 NEEP recognized three schools as part of the 2007 Business Leaders for Energy Efficiency program:
We thank and congratulate everyone who contributed to these and other energy efficiency accomplishments in 2007. We look forward to working with our sponsors and partners to build on these commitments in 2008 to make the Northeast region the world leader in the efficient use of energy.
Sue Coakley
Executive Director
