House energy bill gets mixed review
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Gov. Charlie Baker has praised the energy bill.
The first draft of a long-awaited energy bill from House leaders delivered on the expectation of a proposed procurement for large-scale hydro and offshore wind power to meet the state's need for clean, reliable energy, but met significant push back Monday over its limited scope.
The bill would require utilities to solicit and purchase through long-term contracts of 15 to 20 years roughly 1,200 megawatts of hydropower and 1,200 megawatts of offshore wind power.
By limiting eligible offshore wind projects to those operating in a "competitively solicited federal lease area," several environmental activists said the bill would exclude Cape Wind, which was once supposed to be the country's first offshore wind farm but has been clinging to the hope of a helping hand from lawmakers to get financing for the project back on track. The Alliance to Protect Nantucket Sound, which opposes Cape Wind, declined to comment.
Offshore wind developers DONG Energy, Deepwater Wind and OffshoreMW could all be eligible to bid for the contracts, according to industry experts.
"The wind-hydro combination is a home run for the Commonwealth. This bill is bold: affordable, clean energy for years to come," Deepwater Wind CEO Jeffrey Grybowski said.
Said DONG Energy North American General Manager Thomas Brostrom: "We commend the Massachusetts House of Representatives for including offshore wind in their legislation to move towards a clean energy future. This promising initial step will help create a viable offshore wind industry here in the Commonwealth, which will bring reliable, cost-effective clean energy to Massachusetts' households and businesses."
However, the lack of consensus among energy industry stakeholders, environmental advocates and lawmakers over how to proceed with energy policy threatens to complicate efforts to complete legislation before formal session end in two months.
Gov. Charlie Baker, who filed his own legislation last summer calling for the solicitation of up to 2,400 megawatts of hydropower, said his "only concern at this point" is that the "clock is ticking on the session." Baker did not voice any objection to House leaders proposing to add an offshore wind component and cut by half his proposed solicitation for hydropower, which would likely come from Canada.
"I would describe it at this point as a very strong bill that's built around the idea of expanding our portfolio, diversifying our energy sources and incorporating big slugs of hydro and wind into our portfolio here in Massachusetts and across New England and I think that's a good thing," Baker said after meeting with House and Senate leaders on Monday.
While the bill includes a requirement to purchase the new renewable energy resources, the Department of Public Utilities could cancel any contract if it failed to meet established criteria, including enhanced electricity reliability, reduced winter price spikes, and cost effectiveness.
"I think we're going to be OK on price. I think it will work itself out, and DPU and DOER are going to be up to the task to figure this out," said Rep. Thomas Golden of Lowell, co-chair of the Telecommunications, Utilities and Energy Committee, which produced the bill.
Sen. Benjamin Downing, the Senate co-chair of the committee, said he saw the bill only hours before copies began circulating among members of the press and the advocacy community.
Predicting significant revisions should the bill reach the Senate unchanged, Downing said the House blueprint falls short of the type of comprehensive energy policy Massachusetts needs moving into the future.
"It's a couple of the core pieces I think everyone agrees ought to be a part of a comprehensive energy bill, but I think it's by no means complete or comprehensive. It's an offshore wind and hydro bill, both of which are necessary, but I don't think taken together are sufficient to meet our needs," Downing told the News Service.
Downing said the Senate members of the committee will most likely either vote against the bill or reserve their rights as it moves out of committee. The Pittsfield Democrat said the procurement of 2,400 megawatts of renewable energy is "well within the range" of what had been discussed prior, but said the bill's scope is too narrow.
"If the goal is to address climate and cost, then you can't put forward a bill that omits building on the progress we've made on energy efficiency," Downing said. "We certainly need to do more and have a more concerted strategy on storage. I applaud what the Baker administration has done, but there's more that we can do than we are currently doing."
Both Golden and House Speaker Robert DeLeo suggested there would time for members to weigh in with additional ideas before the bill either moves through the House Ways and Means Committee or when it reaches the floor next month for debate.
"I'm enthusiastic about the piece of legislation. I think putting the emphasis on hydro and wind is the right way to go. I'm sure there's going to be a lot of discussion, maybe one or two amendments, but we're looking forward to getting it done," DeLeo said.
With more than 10,000 megawatts of reliable power generation from fossil fuel plants and Pilgrim Nuclear Power Station due to come offline in the coming years, lawmakers have been weighing the options to replace that output with renewable sources that would also help the state meet its carbon emissions reductions goals without driving up cost.
Eversource Energy, one the state's largest power distributors to be impacted by the bill, congratulated House leaders on the proposal.
"We commend lawmakers for advancing legislation that will help the commonwealth meet its clean energy commitments and lead to a more diverse energy portfolio, while also being mindful about costs to customers," said Eversource spokesman Michael Durand.
But the New England Power Generators Association, which has been a vocal critic of Baker's push for hydropower, questioned the move to push ahead with hydro and wind procurements without knowing the full impact of Supreme Judicial Court decision last week that found current state policies insufficient to comply with the 2008 Global Warming Solutions Act.
The Department of Environmental Protection, under the decision, was required to come up with new regulations that apply to the broad array of energy sectors operating in Massachusetts.
"The proposal would carve up one third of the Massachusetts electricity marketplace into decades long contracts that has the potential to dramatically increase electricity costs for consumers. This is occurring at the very moment consumers are realizing lower electricity rates thanks to fierce competition in the wholesale market with billions of dollars of new plants being developed here in Massachusetts," Dolan said in a statement.
Other environmental groups criticized the House proposal as too "timid."
"We support the inclusion of off-shore wind and hydro, but this proposed legislation does not solve our energy or economic needs for tomorrow or the decades ahead. If we have an energy capacity issue in New England (as the utilities keep telling us), the legislature must do more," said George Bachrach, president of the Environmental League of Massachusetts.
Bachrach called for at least 2,000 megawatts of offshore wind to be included in the bill, and said he would also like lawmakers to revisit the solar caps, which are already being tested.
Golden said the House bill does not revisit solar incentives, and Downing said it would be difficult for the Senate to reopen that debate if the House didn't address solar because there are so many other priorities to work through.
Golden also noted that utilities would be allowed under their procurement of hydropower to include land-based wind in their mix to get to 1,200 megawatts if they choose.
Despite his policy difference with the House, Downing did say he still believes there was enough time left in the session to reach consensus between the branches and pass a bill that Baker would sign.
Referring to the national political conventions in late July that prompted House and Senate leaders to schedule sessions around lawmakers' potential travel plans, Downing said, "As much as I wish that the House had chosen to act earlier if they were going to wait and act in this manner, I still think we have plenty of time. Some people might be going to Cleveland and Philly, but I'm going to be here and will be ready work."
Conservation Law Foundation staff attorney Caitlin Peale Sloan said the House bill was "not strong enough," as she advocated for more wind resources.
"We need a bill that lives up to its name - An Act to Promote Energy Diversity," Peale Sloan said. "This bill is weighted too heavily in favor of imported hydropower. Onshore and offshore wind are a powerful combination that will help to curb climate change and build a new industry in Massachusetts. As dirty fossil fuels phase out, we need clean local energy sources to keep the lights on."
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