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New England's Electricity Future in Light of New Air Regulations

Restructuring RoundtableBoston, MA

Laurie Burt, CommissionerMassachusetts Department of Environmental Protection

October 29, 2010

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New England’s Electricity Future

• Key solutions:• Efficiency• Zero-emission renewable energy

• Also:• Clean low carbon biomass• High efficiency natural gas• Efficient transmission and storage• Combined heat and power

• Clean solutions address criteria pollutants and GHGs

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Transport Rule: MA Perspective

• Upwind states contribute pollution in MA

• MA contributes to others

• MA commented on proposed rule supporting:• Intra-state trading,

• Limited interstate trading

• Prohibition on using existing allowance bank

Transport Rule: MA Perspective

• MA commented that: • More stringent NOx caps needed to meet ozone

standard

• Additional cost-effective reductions are available

• EPA should reward cleaner generation and energy efficiency

• Quick action on “second” Transport Rule in 2011

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EPA GHG Regs: MA Perspective

• MA addressing GHGs

• Strongly supportive of federal action:• Endangerment Finding

• CA Motor Vehicle Standards

• Tailoring Rule

• GHG Reporting

• Welcome EPA partnership moving forward

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Electricity Emissions: RGGI

• Long-term reductions across the power sector and region

• Model market-based solution for GHGs

• Will continue absent federal cap-and-trade.

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RGGI Experience

• Regional auctions: • 285 + million allowances sold at 9 regional auctions• $729 + million, mostly used for energy efficiency

• EE spending includes energy audits, weatherization, air sealing, equipment efficiency

• Influence on regional programs, federal legislation• Emissions declining due to RGGI, economy,

efficiency investments, fuel switching, weather• MOU requires program review in 2012

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MA GHG Policies and Statutes

• RGGI & MA Renewable Portfolio Standard

• Signed by Governor Patrick in 2008:• Global Warming Solutions Act (GWSA)• Green Communities Act• Clean Energy - Biofuels Act • Green Jobs Act• Oceans Act

• GWSA: long-term (2050) targets, GHG reporting

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Climate Action Plans (38 States)

Source: Pew Center on Global Climate Change

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Questions, Comments?

Restructuring RoundtableBoston, MA

Laurie Burt, CommissionerMassachusetts Department of Environmental Protection

October 29, 2010

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Regional Programs (33 states)

Source: Pew Center on Global Climate Change

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RE/AE Standards (36 States)

Source: Pew Center on Global Climate Change