Transcript Massachusetts Biotechnology Council Law and Policy

The Massachusetts Biotechnology Council
Law and Policy Committee
July 9th, 2009
The New Balance: Environment and Energy
Robert Ruddock
Context
 Business as Usual: 90 plus years
 Vertically integrated regulated utilities
 Evolving environmental rules
 Restructuring Revolution 1997/8
 Competitive generation/electricity sales
 Regulated distribution/transmission
 Environmental Revolution 2007/8/9
 GHG driver
 Profound consumer/ratepayer impacts: cost, generation and
conservation
 Key Points:
 No cost effective technological fix for CO2 reduction
 Not a localized pollutant
Mechanisms: Overview
 Regional Greenhouse Gas Initiative (RGGI) – northeast
states
 Federal legislation (proposed)
 Massachusetts Green Communities Act (GCA)
 Massachusetts DPU: Decoupling Order
 Massachusetts Global Warming Solutions Act (GWSA)
 ISO NE: Transmission projects
 DPU National Grid/Bay State Gas cases - now
Mechanisms (cont.)
 Regional Greenhouse Gas Initiative (RGGI) –
northeast states
 Cap/trade model
 100% auction
 80% Massachusetts revenues to energy efficiency
 Federal legislation (proposed)
 Cap/trade approach
 Not 100% auction
Mechanisms (cont.)
 Massachusetts Green Communities Act (GCA)
 Energy efficiency/conservation
 Renewable Portfolio Standards
 Energy building code
 Smart Grid
 Massachusetts DPU: Decoupling Order
 Align utility goals with efficiency goals
Mechanisms (cont.)
 Massachusetts Global Warming Solutions Act
(GWSA)
 Statutory reduction (1990 emissions) goals: all GHGs
 2020 (10-25%)
 2050 (80%)
 Secretary EOEEA rules –discretion: ten working
groups/DEP
 ISO NE: Transmission projects
Mechanisms (cont.)
 DPU National Grid/Bay State Gas cases – now
 Rate increases
 Decoupling
Big Picture Impacts on
Consumers/Ratepayers/Society
 Costs
RGGI – through power rates
GCA – add-ons costly
Decoupling – loss of efficiency savings on distribution side
GWSA – impacts on electricity and individual operations
 Benefits
 Reduced GHG
 Opportunity for efficiency improvements
 New jobs for the economy
 Reduced costs over time
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Practical Implications
 Funding for on-site renewables, CHP, efficiency
 Lower costs in the long run
 Facility operations affected by:
 increasing electricity costs
 continuing efficiency payments
 on-site GHG regulation (?)
 Implementation of new laws – consumers united