By Anne Marie Green, Summer 2018 Sierra Club MA Chapter Intern
The Massachusetts Senate passed an ambitious energy omnibus bill on Thursday, June 14, compiling several pieces of legislation that would keep Massachusetts on track to meet its 2050 greenhouse gas reduction goal: reducing emissions to 80% below 1990 levels. If passed into law, the policies in this bill would offer incredible opportunities to mitigate climate change and prepare the Massachusetts economy for the inevitable switch to 100% renewable energy. Of course all of this sounds good, but it is critical to understand the specific policies in the bill that have the potential to help tackle climate change and improve your life. Policy by policy, we’re here to help you make sense of it all.
Emissions Reduction Goals
An omnibus bill is a compilation of several related policies packed into one large bill. Each of the elements in the Senate bill are related to clean energy and reducing statewide greenhouse gas emissions from the major emitting sectors: transportation, commercial/industrial and residential. To begin, a fundamental policy proposed in the bill is to establish greenhouse gas emissions reduction limits for 2030 and 2040. Currently, Massachusetts has committed to an 80% reduction by 2050, but we still lack a comprehensive plan to make it there. Therefore, the Senate proposes that the state adopt targets of 35-45% below 1990 levels for 2030, and 55-65% reductions by 2040 so that we don’t fall behind. Without these specific goals and a comprehensive plan of action, we will not stay on track to meet the ambitious goal of carbon neutrality.
Carbon Pricing
Another policy that would help Massachusetts meet its reduction target and increase the competitivity of the renewable energy market is implementing a market-based compliance mechanism for carbon, which means some form of carbon pricing. The Senate does not specify one carbon pricing model to follow, but simply requires that Massachusetts adopt some form of carbon pricing in the near future. The bill mentions models such as annual caps on emissions, an emissions credit system like cap-and-trade, or a fine for noncompliance as a few possibilities.
While some claim that carbon pricing will cost the consumers, in reality it is an excellent opportunity to hold big emitters accountable for their contributions to climate change. In our current economy, environmental externalities (like pollution, GHG emissions, land degradation, biodiversity loss and more) are not factored into market prices. This means that the detrimental and notably costly environmental damages of burning oil and coal (like extreme weather events, increased flooding and rising temperatures caused by climate change) are paid for by taxpayers like you. A price on carbon would mean that the consumers and taxpayers who use less carbon will receive rebates, while big emitters would be held more financially responsible. While the specific carbon pricing system for Massachusetts has yet to be parceled out, this section of the bill simply opens the door for a carbon pricing system to be implemented in the future.
Renewable Portfolio Standards
Not only would the Senate bill influence the market to favor clean energy through carbon pricing, but it would also obligate private electricity suppliers to increase their renewable portfolio standard (RPS), or the percentage of Class I renewables in their energy portfolios, by 3% every year. Class I renewables can include solar photovoltaic panels, wind, biomass, geothermal, and small hydropower among a few other energy sources. This piece of legislation is paramount; if we were to follow the track of a 3% annual RPS increase, all of Massachusetts’ privately supplied electricity would be 100% clean and renewable by 2047. The current law obligates the RPS to increase by only 1% each year. With the current renewable energy portfolio at 13%, the current RPS policy is not impactful enough to mitigate climate change, much less meet Massachusetts’ climate goals.
The Senate is also seeking to clean up MA’s electricity supply by setting renewable energy regulations for municipal light plants. These are power plants operated by cities and towns that both operate power plants and supply power to consumers. Unlike private suppliers like Eversource, municipal light plants supply only a small municipal area with electricity, but do not have to comply with renewable portfolio standards. 50 out of the 351 municipalities in Massachusetts depend on municipal light plants, and this bill would ensure that there is a minimum standard of renewable electricity generated at these plants.
Energy Storage
If our electric grid is to operate on 100% renewable energy by 2047, it is important to further develop energy storage capacity in Massachusetts. The Senate bill proposes an energy storage target program, which would increase MA’s energy storage capacity by 2000 megawatts by 2025. Energy storage technology is becoming more relevant as growth in renewable energy surges. More storage capacity will help Massachusetts manage the energy supply and demand and smoothly transition to 100% renewable. Electricity is typically supplied to the consumer on demand, but this gets tricky with solar or wind power. These energy sources generate more power than we need at some times of day, and less than we need at others, requiring storage systems. For example, solar peak hours, when the most solar energy is harnessed, occur midday when the sun is strongest. However, the average household typically uses the most electricity around 4:00pm-6:00pm. With energy storage, energy harnessed earlier in the day can be stored and accessed later. Over the longer term, energy can be stored in large batteries to increase resiliency, powering cities and towns for an extended time period in the event of a power outage or extreme storm. More storage capacity assures that your electricity will both be clean and reliable.
Net Metering
Many environmentally conscious people like you would like to consider rooftop solar photovoltaic panels, but are afraid of the upfront cost and energy reliability. This bill would make it easier for citizens with private solar panels to manage their solar energy by lifting net-metering caps for non-governmental solar facilities. Solar power peaks when the sun is strongest, but is not generated at other times of day when you may need electricity. Net metering allows solar panel owners to take power from the grid, or a private electric supplier like Eversource, when their solar panels are under-generating. Additionally, when their panels are generating excess power, net metering allows this power to be fed back into the grid, giving the solar panel owner credits to pull back electricity from the grid at no additional cost. Therefore, their electric bill could be $0 or even allocate credits to be used in the future. However, under current law, it is notably difficult for new solar panel owners to get a net-meter. This policy would make it more feasible for citizens like you to make solar panel ownership a reality, increase energy independence and save big on energy bills.
Offshore Wind and Renewable Energy Projects
The last aspect of the Senate bill which will pack a huge punch for renewable energy progress: advocating the Department of Public Utilities to embark on projects for an additional 9,450,000 MegaWatt hours of clean energy to be added to the Massachusetts energy portfolio. They stress the need for an expansion of offshore wind, explicitly calling for 5,000 MWh of offshore wind by 2035. The state’s current capacity for renewable energy is 226,000 MWh, so these new projects would elevate Massachusetts’ renewable energy leadership and allow the state to achieve a cleaner transportation system and electric grid.
Conclusion
We applaud the Massachusetts Senate for recognizing the seriousness of climate change and stepping up to take due action. The policies proposed in this bill would drastically reduce the state’s carbon footprint and have incredible benefits for all citizens. Massachusetts’ reputation as a national climate leader is in jeopardy, and this bill would reinvigorate the state’s commitment to action on climate. Please contact your Senator and thank them for their leadership on this issue!
The Massachusetts House has yet to vote on a climate bill this session, but there’s still time! The legislative session ends July 31st at midnight. Please contact your State Representative and ask them to contact Speaker Robert DeLeo and Ways and Means Chair, Jeffrey Sánchez and ask them to bring the following clean energy and environmental justice bills to a vote on the House floor.
H.4575 “An Act to Increase Renewable Energy and Reduce High-Cost Peak Hours”
H.4577 “An Act Relative to Net Metering”
H.2913 “An Act Relative to Environmental Justice and Toxics Reduction in the Commonwealth”
Promoting renewable energy means creating jobs, becoming independent from foreign oil, protecting the health of you and your loved ones, and helping to solve the greatest issue of our time: climate change. Let your legislators know that a 100% clean energy future is important to you!
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