By Susan A. Baird
PBN Web Editor
BOSTON – Gov. Deval L. Patrick today signed into law a comprehensive renewable energy measure called the Green Communities Act.
“Today, Massachusetts has taken a giant step forward toward a clean energy future,” he said in a statement at the Museum of Science. “This legislation will reduce electric bills, promote the development of renewable energy and stimulate the clean energy industry that is taking root here in the commonwealth.”
The measure – filed last year by House Speaker Salvatore F. DiMasi and backed by Senate President Therese Murray – includes a number of new requirements for utilities operating in the state, aimed at reducing energy consumption, increasing efficiency of energy use and encouraging the development of renewable-energy resources. National Grid, NSTAR Inc. and Western Massachusetts Electric will be among the companies affected.
“This legislation comes at a critical time and puts Massachusetts at the forefront of clean-energy policies and the development of alternative fuel sources,” Murray said in a statement.
“With this landmark legislation, the commonwealth will tip the scales away from fossil fuels in favor of more efficient and affordable energy alternatives. Emerging technologies and conservation are major parts of this effort, and Massachusetts will lead the way.”
Among other provisions of the Green Communities Act:
• Utilities will be required to enter into 10-year to 15-year contracts with renewable-energy providers as part of a program that aims to encourage large-scale renewable energy developments. That program will target projects based in Massachusetts.
A similar move – overwhelmingly approved by the R.I. General Assembly – was vetoed last week by Gov. Donald L. Carcieri, partly because it would not have required the projects be locally based. (READ MORE)
• The state’s Renewable Portfolio Standard will increase at 1 percent per year – twice the previous rate – requiring utilities and other electricity suppliers to obtain 4 percent of their electricity from renewable sources in 2009, 15 percent in 2020, 25 percent in 2030, and so on, up to an eventual 100 percent.
• Utility companies will be required to purchase “all available energy-efficiency improvements that cost less than it does to generate power,” the administration said. For instance, utilities will offer rebates and other incentives to encourage customers to upgrade lighting, air conditioning and industrial equipment to more efficient models, whenever those incentives cost less than generating the electricity.
Existing efficiency programs have achieved energy savings at a cost of about 3 cents per kilowatt hour, versus the 9 cent per kilowatt hour cost of power generation, state officials noted.
• A “net metering” provision will make it possible for individuals and organizations that own wind turbines or solar-to-electric (photovoltaic) systems to sell their excess electricity to the power grid at favorable rates. The new measure applies to installations capable of generating up to 2 megawatts, from the current cap of 60 kilowatts.
A similar proposal in Rhode Island cleared the General Assembly in early June. (READ MORE)
• Utility companies will be allowed to own solar electric installations they install on customers’ roofs – a practice formerly prohibited. The law sets a limit of 50 megawatts per installation.
• The Mass. Division of Energy Resources will be expanded into a new Department of Energy Resources.
• The expanded department will oversee a new Green Communities program, which will provide technical and financial assistance to municipal energy-efficiency and renewable-energy efforts across the state. Funding for the program – initially set at $10 million – will come from sources including emissions allowance trading programs, utility efficiency charges, alternative compliance payments generated by the Renewable Portfolio Standard, and the Renewable Energy Trust Fund
• The Mass. Renewable Energy Trust Fund – now administered by the Massachusetts Technology Collaborative – will come under the oversight of a new governing board chaired by the commissioner of the new Department of Energy Resources.
• The Mass. State Board of Building Regulations and Standards will be required to adopt – as its minimum standard – the latest edition of the International Energy Conservation Code. “This will keep Massachusetts building standards at the highest international levels of energy efficiency,” the administration said.
“This new law puts Massachusetts in the lead nationally in crafting bold, comprehensive energy reform,” DiMasi said.
“We in the House, Senate and Patrick administration have much to be proud of,” he added, saying: The Green Communities Act “will spark a significant increase in the use of renewable energy that will significantly curtail our use of fossil fuels, improve our environment and save us all money in the long run.”
News and information from the Mass. Governor’s Office is available at www.mass.gov.
