The New Balance: Environment and Energy Robert Ruddock The Massachusetts Biotechnology Council Law and Policy Committee July 9 th, 2009.

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Presentation transcript:

The New Balance: Environment and Energy Robert Ruddock The Massachusetts Biotechnology Council Law and Policy Committee July 9 th, 2009

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 Context

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

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