http://www.environmentmaine.org/legislature/testimony/energy/energy http://www.environmentmaine.org/legislature/testimony/energy/energy/ld-1065-renewable-portfolio-standard Thank you for the opportunity to speak to the Committee. My name is Matthew Davis, and I would like to testify in support of LD 1065 on behalf of Environment Maine. Environment Maine advocates for clean air, clean water and open spaces on behalf of 3,000 members statewide. Environment Maine strongly supports a renewable portfolio standard to promote new clean, renewable energy produced in Maine from wind, solar, geothermal, tidal, and landfill gas. Promoting these clean, renewable, in-state sources of energy will protect our environment from dirty energy pollution, and will bolster our economy. Moreover, increasing renewable energy will diversify our energy sources, which will help stabilize energy prices over the long term. Establishing reasonable and enforceable goals based on Maine’s potential for clean renewable energy development over the next decade is critical to ensuring that Maine meets the challenge of energy independence. For the clean renewable energy industry to succeed in Maine, our officials must send a strong signal to the industry of our sustained commitment to the orderly development of renewable sources. Given Maine’s abundant potential for wind, solar, biomass and low-impact hydro, we believe that establishing a standard for new clean energy of at least 10% by the year 2015 is both sensible and fitting. Maine has great capacity for this new clean renewable energy – in fact, two wind energy projects either in the planning phases or already in the permitting process would satisfy up to ~2% of the state’s electricity needs. For example, the proposed wind farm at Mars Hill would satisfy 1% (50MW) of the standard. This and other projects may come online in the next few years and might eclipse the percentage that would be established in the Tier II RPS by this bill. A standard of 5% new clean energy by 2014 will not stimulate enough projects to truly make Maine a leader on clean energy. New clean energy produced in Maine is key to protecting our air and water from dirty energy pollution, and bolstering our in-state energy supply and local economies. Recently, voters in Colorado approved a similar renewable energy proposal on the November 2004 ballot 53% to 47%. Amendment 37 would gradually increasing renewable energy generation from wind, solar, geothermal, clean biomass and low-impact hydro to 10% of electricity generation by 2015. A Union of Concerned Scientists report showed that Amendment 37 would save consumers $236 million by 2025, while creating 2,000 new jobs and boosting the economies of rural Colorado towns. The Denver Post had this to say about the initiative, “Amendment 37 on the Nov. 2 ballot would stimulate a modest advance in the use of wind power, solar and biomass technologies, and we urge voters to say ‘Yes.’” Environment Maine has another specific concern about the language of this bill. We understand that establishing an alternative compliance option for utilities in the event that no renewable energy options are available is important. However, the bill should make clear that utilities may only opt for the alternative compliance option as a last resort only if they have acted prudently to meet their obligations under the bill. Utilities should not simply be able to pay the alternative compliance payment without actively attempting to purchase clean new renewable energy. http://www.environmentmaine.org/legislature/testimony/energy/energy/ld-1065-renewable-portfolio-standard Wed, 12 Sep 2007 15:33:52 -0500 http://www.environmentmaine.org/legislature/testimony/energy/energy/ld1929-renewable-portfolio-standard Members of the Committee: Thank you Chairman Hall, and distinguished members of the Utilities and Energy Committee, for allowing me to offer comments on the Baldacci administration’s bill LD1929 to amend the state’s Renewable Portfolio Standard (RPS). Environment Maine strongly supports a renewable portfolio standard to promote new clean, renewable energy produced in Maine from wind, solar, geothermal, tidal, low-impact hydro, and plant-derived biomass. Promoting these clean, renewable, in-state sources of energy will protect our environment from dirty energy pollution, and will bolster our economy. Moreover, increasing renewable energy will diversify our energy sources, which will help stabilize energy prices. We are pleased that the Governor recognizes the need to require new clean and environmentally sustainable renewable energy as part of Maine’s mix of electricity resources. Amending the RPS to include a Tier II new clean renewable energy standard for electricity from wind, solar, tidal, fuel cells, geothermal and landfill gas is a step forward. However, Environment Maine believes that the proposed standard falls short of what is necessary to ensure that Maine reaches its full potential for renewable energy as an electricity source. Establishing reasonable and enforceable goals based on Maine’s potential for clean renewable energy development over the next decade is critical to ensuring that Maine meets the challenge of energy independence. For the clean renewable energy industry to succeed in Maine, our officials must send a strong signal to the industry of our sustained commitment to the orderly development of renewable sources. For this reason, we believe that the proposed standard does not go past tapping the proposed energy projects on the horizon. Given Maine’s abundant potential for wind, solar, biomass and low-impact hydro, we believe that establishing a standard for new clean energy of at least 10% by the year 2015 is both sensible and fitting. Maine has great capacity for this new clean renewable energy – in fact, two wind energy projects either in the planning phases or already in the permitting process would satisfy up to ~2% of the state’s electricity needs. For example, the proposed wind farm at Mars Hill would satisfy 1% (50MW) of the standard. This and other projects may come online in the next few years and might eclipse the percentage that would be established in the Tier II RPS by this bill. A standard of 5% new clean energy by 2013 will not stimulate enough projects to truly make Maine a leader on clean energy. New clean energy produced in Maine is key to protecting our air and water from dirty energy pollution, and bolstering our in-state energy supply and local economies. We understand that establishing an alternative compliance option for utilities in the event that no renewable energy options are available is important. However, the bill should make clear that utilities may only opt for the alternative compliance option as a last resort only if they have acted prudently to meet their obligations under the bill. Utilities should not simply be able to pay the alternative compliance payment without actively attempting to purchase clean new renewable energy. Additionally, Maine’s current RPS includes energy sources that are not clean and should not receive policy support for being renewable. Trash incinerators, fossil fuel cogeneration and should not be included in the RPS. Environment Maine believes that the definition of renewable energy should be changed such that incineration and cogeneration are dropped from the definition and biomass should be narrowed to only include plant-derived, low-emission technology. So while we are pleased with the thrust of this bill; it is our hope that Maine will set the bar higher to truly make our state a leader in developing clean, domestic renewable energy resources. This what is necessary to show our commitment to renewable energy investors that there is a long-term commitment to the sustained and orderly development of renewable energy here. We look forward to working with the Baldacci administration and the legislature to move toward a cleaner and more energy independent future. http://www.environmentmaine.org/legislature/testimony/energy/energy/ld1929-renewable-portfolio-standard Wed, 12 Sep 2007 15:23:17 -0500 http://www.environmentmaine.org/legislature/testimony/energy/energy/lr-3130-new-clean-renewable-energy Senator Bartlett, Representative Bliss, members of the Utilities and Energy Committee: I would like to testify in support of LR 3130 on behalf of Environment Maine. Environment Maine advocates for clean air, clean water and open spaces on behalf of 3,500 members statewide. Environment Maine strongly supports legislation to require long term contracting with new clean, renewable energy produced in Maine from wind, solar, geothermal, tidal, and landfill gas. Promoting these clean, renewable, in-state sources of energy will protect our environment from pollution from dirty energy sources, and will bolster our economy by keeping energy expenditures in the state. Perhaps even more importantly, increasing renewable energy generation will diversify and secure our energy supply, and stabilize energy prices. While ISO-NE threatens to burden consumers of electricity in Maine and across the region with huge costs to give subsidies to conventional power generators, Maine can make its own policy to encourage added clean energy generation at lower cost than LICAP. And, these policies can drive down wholesale energy prices by relying on cheap, abundant alternative fuel. So long as Maine and the region continue to rely on gas and oil, volatile prices will continue to buffet consumers. One only needs to look at the price of natural gas over the past decade to see why relying too heavily on fossil fuels drives up wholesale electric and other fuel costs (Figure 3). Establishing reasonable and enforceable goals for long term contracting between utilities and renewable energy generators over the next decade is critical to ensuring that Maine meets the challenge of energy independence. For the clean renewable energy industry to succeed in Maine, renewable generation projects must be able to secure long term contracts for their power so as to secure capital investment. Last March, the standard offer price of electricity went up about 15 percent, and this March it is scheduled to increase another 20 percent. With prices in the marketplace projected to continue to increase in the foreseeable future, Maine needs an insurance policy against fossil fuel over reliance – contracts with renewable energy projects. Maine has abundant sources of wind, solar, tidal, biomass and low-impact hydro. Environment Maine believes that establishing a standard for new clean energy of at least 10% by the year 2017 is sensible and conservative. Two wind farms either in the construction or permitting process would satisfy up to approximately 2 percent of the state’s electricity needs. The proposed wind farm at Mars Hill would satisfy about 1 percent (50MW) of the standard. Tidal power in the state has real potential as well, although projects are still at an experimental stage. Technological advances in hydro power enable existing impoundments to eek out more electricity, which would also qualify as incremental new renewable generation under this legislation. Enough new renewable energy generation will come online to meet the requirements in the next decade if the policies, such as long term contracts, forged by the state promote their development. Getting more clean energy generation in Maine is key to protecting our air and water from mercury, smog, haze and global warming pollution, and bolstering our in-state energy supply and local economies. Increased generation from existing and new clean energy projects will limit the number of days that the Wyman Station oil-burning plant needs to run to satisfy peak demand. The corresponding cut in pollution is significant, and the reduced cost to consumers should also be significant. Locking in a reasonable price for electricity in 3-20 year contracts without concerns about fuel supply or price will also benefit customers in Maine. On the November 2004 ballot, voters in Colorado approved a similar goal for new clean energy through a renewable energy standard 53 percent to 47 percent. Amendment 37 would gradually increasing renewable energy generation from wind, solar, geothermal, clean biomass and low-impact hydro to 10% of electricity generation by 2015. A Union of Concerned Scientists report showed that Amendment 37 would save consumers $236 million by 2025, while creating 2,000 new jobs and boosting the economies of rural Colorado towns. Again, I would like to reiterate Environment Maine’s support for promoting new clean renewable energy through long-term contracts. Developing more clean renewable energy generation is a large piece of a smart, clean energy future. Sincerely, Matthew Davis Advocate http://www.environmentmaine.org/legislature/testimony/energy/energy/lr-3130-new-clean-renewable-energy Wed, 12 Sep 2007 15:27:19 -0500 http://www.environmentmaine.org/legislature/testimony/energy/energy/docket-number-2006-446-and-docket-number-2006-411-energy-independence-and-security Dear Chairman Adams: I am writing to provide general comments on two items before the Public Utilities Commission (PUC) Docket number 2006-446 and Docket number 2006-411. The first, LD 1931, “An Act to Encourage Energy Independence for Maine” and NOI on Docket number 2006-446 asks the PUC “to consider programs that could reduce the price of electricity over time for all consumers by achieving reductions in demand for electricity during peak use periods.” Reducing overall electricity demand through increased energy efficiency programs should be Maine’s top priority. Maine has the lowest system benefit charge (SBC) in New England and thus the lowest investment in energy efficiency, even though the return on investment is double the investment and could prove to be even higher. Maine has a tremendous opportunity to expand its energy efficiency programs while at the same time decreasing electrical costs for all consumers. This is possible by increasing the SBC consistent with the original proposal included in LD 1931: a doubling of the SBC rate over the next four years. Pending the implementation of the Regional Greenhouse Gas Initiative (RGGI), there might be an even greater amount of available energy efficiency investment with a full auction of all the carbon credits. With increased funding and expansion of the PUC’s existing, highly successful Efficiency Maine programs and other mechanisms, electricity demand would be reduced as well as electrical costs to consumers. Boosting energy efficiency in Maine’s residential sector would be best served by expanding existing Efficiency Maine energy efficiency programs, on promoting energy efficiency requirements for new buildings with towns and inspectors, and expansion of the Whole House program currently run by the Office of Energy Independence and Security. Other strategies such as load shifting, demand management and load interruption programs do not boost energy efficiency and should not be the focus of the PUC’s recommendations to the Legislature. Simply decreasing demand peaks does not cut overall demand for energy, and has a more limited impact on consumer savings than efficiency. In addition, we also encourage the PUC to increase the program funding cap for Efficiency Maine’s business program to at least $100,000, so that large businesses and facilities, such as the University of Southern Maine, may take on bigger energy efficiency projects. The second, LD2041 “An Act to Enhance Maine’s Energy Independence and Security”, NOI on Docket #2006-411 asks the PUC “to incorporate demand side resources into the supply of standard offer service for residential and small commercial classes.” We fully support this strategy and concur with the comments of the Office of the Public Advocate on a number of points. We agree that Maine should pursue a strategy that considers the acquisition of all energy efficiency that costs less than supply. In addition, we believe that all bids that are cost effective should be accepted and not limited to a certain percentage which could discourage the number of bids. In addition, bid evaluation criteria should be comprehensive and not focused solely on least cost bids. Otherwise, more short-sighted and easy projects would be bid in, at the detriment of projects with a longer payback horizon or longer implementation period. A multi-pronged approach would be more effective in generating comprehensive energy efficiency bids. Environment Maine Research & Policy Center is pleased to have the opportunity to comment on these potentially significant changes in the energy market that will realize dramatic decreases in electricity demand, energy conservation, cost savings for consumers and much needed reductions in air and global warming pollution. I have also included our recent report, Energy Efficiency: The Smart Way to Reduce Global Warming Pollution in the Northeast, which further enumerates energy efficiency projects Maine should pursue and that are being pursued in other Northeast states. Sincerely, Jennifer Andersen, Advocate Environment Maine Research & Policy Center http://www.environmentmaine.org/legislature/testimony/energy/energy/docket-number-2006-446-and-docket-number-2006-411-energy-independence-and-security Wed, 12 Sep 2007 15:25:16 -0500 http://www.environmentmaine.org/legislature/testimony/energy/energy/support-of-black-nubble-wind-farm http://www.environmentmaine.org/legislature/testimony/energy/energy/support-of-black-nubble-wind-farm Mon, 01 Oct 2007 15:10:47 -0500