HOUSE PASSES NATION-LEADING ENERGY REFORM PACKAGE
Bold reform will reduce dependence on foreign oil, increase production and use of clean energy

BOSTON 7/1/2008 — State Representatives Jamie Eldridge announced that the House of Representatives has unanimously approved a comprehensive, best-in-the-nation energy reform bill that will reduce the Commonwealth’s use of foreign oil, increase production and use of cleaner, more renewable energy, and help reduce costs to consumers at this critical time.

The Green Communities Act, also unanimously approved by the Senate, is expected to become law Wednesday with Governor Deval Patrick signing the legislation.

“We have a commitment to protecting our environment, and this legislation helps fulfill that commitment,” noted Representative Eldridge.  “This legislation moves Massachusetts away from fossil fuels and closer to more efficient and affordable energy alternatives.”  Representative Eldridge added, “Further, it will provide our cities and towns with the tools they need to make the transition toward increased use of renewable and alternative energy.”

The bill requires that Massachusetts produce 15% of energy needs from clean, renewable sources, like wind and solar power.  The bill also provides numerous incentives for clean, renewable energy. It promotes local generation of renewable energy, like solar panels and wind turbines, by making them more cost-effective for individuals, communities, and municipalities. It creates a framework for utilities to offer long term contracts to renewable energy developers, and it offers resources to help communities plan and implement energy saving or renewable energy projects.

“Wasting less energy and using clean, homegrown sources of power reduces global warming pollution and cuts energy bills,” said Ben Wright, global warming advocate with Environment Massachusetts. “This bill puts forth a comprehensive set of solutions to our energy problems.”

Additionally it curtails energy waste in several ways. It requires utility companies to procure new energy resources from the cheapest available sources, a boon for energy efficiency.

Ian Bowles, Secretary of Energy and Environmental Affairs added, “I congratulate the Legislature for bringing this landmark piece of legislation to fruition.  This bill makes sweeping changes to the electricity marketplace. It will provide a huge boost to renewable power generation, give consumers major new tools to reduce their energy costs, cut our greenhouse gas emissions and launch a new wave of clean energy technologies. We look forward to implementing it.”

The Green Communities Act will place a renewed focus on cost-saving energy efficiency and renewable energy throughout the Commonwealth.  The bill places a focus on “Efficiency First Energy Procurement,” and requires distribution companies to consider all available energy resources when purchasing power. It also mandates that the state’s electric companies purchase the most cost-effective and stable resources, with the goal of procuring all cost-effective energy efficiency and conservation, prior to the acquisition of more expensive supply from traditional sources.
 
On a local level, the bill charges the new Division of Green Communities, under the newly-elevated Department of Energy Resources, to establish a green communities program to give cities and towns the opportunity to take advantage of loans and grants provided by the state to finance the cost of energy efficiency improvements and renewable and alternative energy projects. 

The bill also revamps the existing Massachusetts Renewable Energy Trust Fund, housed within the Massachusetts Technology Park Collaborative. The Fund, still under the direction of the Collaborative, will now be directly overseen and administered by a Governing Board, chaired by the Commissioner of the Department of Energy Resources. The new Board will be charged with ensuring that funds will be used to generate the maximum economic and environmental benefits from renewable energy to the ratepayers of the Commonwealth through initiatives which utilizes the advantages of renewable energy in a more competitive energy marketplace.
 
Also established in the bill is the Regional Greenhouse Gas Initiative Auction Trust Fund, consisting of funds recovered through carbon dioxide allowance auctions. Massachusetts joined the Regional Greenhouse Gas Initiative, a cooperative effort by Northeastern and Mid-Atlantic states to reduce carbon dioxide emission, in January 2007. Funds from these auctions, deposited into the trust, will be used for projects like the green communities program and the promotion of energy efficiency, conservation and demand response.

The proposal also amends the current renewable energy portfolio standard and creates a second tier to assist our regions existing renewable resources while we continue to promote new renewable energy to come online. Class I eligible technologies will include new and incremental renewable generation while the second tier, Class II, is created to include existing renewable generation.

Other portions of the bill include provisions that:

• Direct the state to replace state-owned and operated vehicles with more fuel-efficient vehicles.

• Direct the Secretary of Energy and Environmental Affairs to establish a program whereby homeowners or tenants can purchase renewable energy products for the home with no up-front payment, and pay them off monthly on their utility bill.

• Establish a 5-year pilot program, requiring distribution companies to enter into cost-effective renewable energy contracts, over 10 to 15 years, to help eliminate a barrier in the financing of renewable energy generation in the Commonwealth.

• Codify the Office of the Ratepayer Advocate under the Attorney General to intervene in proceedings on behalf of Massachusetts ratepayers.

• Encourage net metering to promote on-site generation through financial incentives.

• Establish a commission to examine the environmental and economic impact of instituting a green building plan for the Commonwealth.