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New England's Electricity Future in Light of New Air Regulations Restructuring Roundtable Boston, MA Laurie Burt, Commissioner Massachusetts Department of Environmental Protection October 29, 2010 1 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 2 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 3 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 4 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 5 Electricity Emissions: RGGI • Long-term reductions across the power sector and region • Model market-based solution for GHGs • Will continue absent federal cap-andtrade. 6 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 7 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 8 Climate Action Plans (38 States) Source: Pew Center on Global Climate Change 9 Questions, Comments? Restructuring Roundtable Boston, MA Laurie Burt, Commissioner Massachusetts Department of Environmental Protection October 29, 2010 10 Regional Programs (33 states) Source: Pew Center on Global Climate Change 11 RE/AE Standards (36 States) Source: Pew Center on Global Climate Change 12