From:                                         Sustainable Energy Advantage, LLC

Sent:                                           Wednesday, August 7, 2024 3:51 PM

To:                                               Sustainable Energy Advantage, LLC

Subject:                                     SEA Eyes and Ears Weekly Flash - New England No. 24-7 - February 20, 2024

 

SEA NE Flash 24-7: Issued: February 20, 2024

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2024 New England Legislative Tracking Spreadsheet Update

SEA's most up to date Legislative Tracking Spreadsheet can be found here. Please feel free to contact Jim Kennerly with any questions regarding New England legislative tracking.

Massachusetts

TUE Committee posts summary of energy anchor bills; would set 10 GW solar goal, require procurements for “clean energy” and storage, streamline CCA approvals, add guardrails to retail competitive supply, include storage in EFSB jurisdiction, and update EVSE standards and planning

As discussed in NE Flash 24-6, on February 7, 2024, the Massachusetts General Court’s Joint Telecommunications, Utilities, and Energy (TUE) Committee reported many of its bills from committee, including five separate “anchor bills” on energy-related topics. Though, at the time of publication of this article, the revised bill texts were not yet available on the General Court website, we provide links to the draft bill texts and high-level summaries below. The bill numbers represent the legislative vehicles for the bills. We summarize the bills below, organized by topic area.

H.3216, “Clean Power anchor bill”

Clean Power bill summary

If enacted this bill would:

Solar Canopies (Sections 1, 38, 39):

Non-EDC Offshore Wind Offtake (Sections 2 & 3):

EDC Climate Resiliency Plans and Microgrids (Sections 4, 15, 16):

DOER Storage procurement, with mid- and long-duration carveout (Sections 5 & 9):

Adds definitions for the following terms to Chapter 25A, the enabling statute for DOER:

We note that these definitions were inserted by Chapter 179 of the Acts of 2022 into the Green Communities Act, but not the more general DOER authorizing statute definitions.

CPS participation for vintage, paired generators (Section 6):

Fusion Class I qualification (Sections 6A, 6B, 12, 13):

Geothermal qualifications (Section 7):

Alternative Energy Credit kicker for installing emission control device (Section 8):

Advanced metering rollout (Sections 10, 18, 42, 43):

Electronic solar and storage permits (Section 11):

Moderate-income discount rate (Sections 14, 19, 40):

Interconnection process and cost allocation (Sections 17, 44, 45):

Grid-Enhancing Technology grid planning (Section 20):

Low-income verification mandate (Sections 21, 41):

Biomass study repeal (Section 22):

“Clean Energy” solicitation (Section 23 -27):

Hourly clean energy matching, regional clean energy markets, consolidated billing, and retail rate review (Sections 28-37):

Clean Energy Goals & Procurement:

Retail Rate Review:

Net Metering & Consolidated Billing:

Meter Socket Adapter Criteria:

H.3219, “Municipalities anchor bill” Municipalities anchor bill summary

If enacted, this bill would:

a municipality or group of municipalities that groups interested electricity customers within its municipal boundaries to facilitate or otherwise arrange the purchase and sale of electric energy and energy-related services through an electrical load aggregation program as set forth in section 134; provided, however, that public aggregator shall not mean a supplier.

H. 3155, “Competitive Supply anchor bill”

Competitive Supply bill summary

If enacted, this bill would make the following additions or alterations to statute:

H.3215, “Siting and Permitting anchor bill”Siting and Permitting bill summary

A summary of the bill, organized by section, is provided below:

H. 3218, “Building decarbonization anchor bill” Building decarbonization bill summary

Energy Efficiency Policy and Programs: (Sections 1-11)

Energy Efficient Lighting (Sections 5-6, 28, 36-37)

Oil and gas regulation and oversight (Sections 12-13, 29-30, 32)

Utility Reporting and Oversight (Sections 13-14)

Electric Vehicle (EV) charging infrastructure (Sections 15-17, 22-27, 33-35, 38-40)

Building Decarbonization (Sections 18-21, 31)

Stakeholders submit joint letter proposing revisions to interconnection working groups; request more formal process for DPU action on findings including involvement of DPU in working groups

On February 7, 2024, a group of renewable energy stakeholders submitted a Letter to the Massachusetts Department of Public Utilities (DPU) in Docket 19-55, which was opened to consider issues relating to the interconnection of distributed generation (DG). Specifically, the Letter provided proposed changes to the process and structure of various interconnection working groups, including:

As discussed in NE Special Flash 23-22.2, on June 6, 2023, in Docket 19-55, the Massachusetts Department of Public Utilities (DPU) issued an Order Establishing Interconnection Implementation Review Group (IIRG). Stakeholders represented in the Letter include the Interstate Renewable Energy Council, Inc. (IREC), the Northeast Clean Energy Council (NECEC), Solar Energy Business Association of New England (SEBANE), Agilitas Energy, Inc., BlueWave Solar, CleanCapital, Fermata Energy, Galehead Development, Greenfield Solar, Independence Solar, New Leaf Energy, Nexamp, OnSite Renewables, Parallel Products Solar Energy, LLC, Pope Energy, PowerOptions, Renewable Energy Massachusetts, LLC, ReVision Energy, RWE Clean Energy, Solect Energy, Stem, and Zero-Point Development (collectively the “Clean Energy Parties”).

In the Letter, the Clean Energy Parties argued that:

To remedy these issues, the Clean Energy Parties proposed a regulatory process “under which Working Groups consider specific issues on a defined timeline, a summary of those discussions is presented to the DPU by an independent facilitator, and the DPU formally reviews and issues decisions on both consensus and non-consensus items in an open docket.” In addition, the Clean Energy Parties recommended that:

Lastly, the Letter contains discussion of the DPU’s authority and managing potential ex-parte contacts in relation to the proposal.

Healey Administration to deploy $50 million in ARPA funds to support EV charging infrastructure

On February 7, 2024, the Healey Administration announced that it will deploy $50 million in American Rescue Plan Act (ARPA) funds to support electric vehicle (EV) technology programs at the Massachusetts Clean Energy Center (MassCEC); charging infrastructure investments for the State’s fleet; public charging station inspections; and an analysis of EV charging needs, to be undertaken by the EV Infrastructure Coordinating Council (EVICC).   

The funding will be dispersed as follows:

Wind Power Incentive Jobs Credit and Wind Power Incentive Investment Credit language for Tax Year 2023 posted

On February 6, 2024, the Massachusetts Department of Revenue (DOR) updated its 2023 Personal Income
(Chapter 62) and Corporate Excise (Chapter 63) Tax Law Changes related to the Wind Power Incentive Jobs Credit and the Wind Power Incentive Investment Credit. As discussed in NE Flash 22-32, Chapter 179, An Act Driving Clean Energy and Offshore Wind established an offshore wind tax incentive program through which these two wind power incentives may be authorized. Both credits are applicable for tax years beginning on or after January 1, 2023, and until tax years ending on or before December 31, 2032. The language on each is as follows (verbatim from the DOR’s post):

Wind Power Incentive Jobs Credit

A business subject to tax under Chapter 62 or Chapter 63 may, to the extent authorized by the offshore wind tax incentive program established in Chapter 23J, be allowed a refundable credit in an amount determined by the Mas­sachusetts Clean Energy Technology Center [(MassCEC)], in consultation with the [DOR]. A business taking this credit must commit to the creation of a minimum of 50 net new perma­nent full-time employees in Massachusetts.

Wind Power Incentive Investment Credit

A business subject to tax under Chapter 62 or Chapter 63 may, to the extent authorized by the offshore wind tax incentive program established in Chapter 23J, be allowed a refundable credit in an amount, as determined by the [MassCEC], of up to 50 percent of its total capital investment in an offshore wind facility. 

DOER schedules Home Energy Rebates Public Input Session for March 18

During the week of February 12, 2024, the Massachusetts Department of Energy Resources (DOER) announced that it has scheduled a public input session to discuss its Home Efficiency and Electrification Rebate Programs for March 18 at 1:00pm.

For context,—and as discussed in NE Flash 23-50—on December 8, 2023, the U.S. Department of Energy (DOE) released new resources to help state energy offices, such as DOER, apply for and implement their home energy efficiency programs under Public Law No: 117-169, the Inflation Reduction Act of 2022 (IRA) Home Energy Rebates (HER) program and the Home Electrification and Appliance Rebates (HEAR) program.

In its latest announcement, DOER noted that it plans to apply for funding under both programs in the spring (spring 2024). DOER anticipates receiving $73,233,910 and $72,809,130 for each program, respectively. We note that this funding is provided by the IRA, so DOER will receive this funding if they meet the program’s minimum requirements. In anticipation of submitting its application, DOER has scheduled this public input session to present a straw proposal for program design and solicit community input on its proposed deployment plans. Interested parties can register here.

DOER schedules inaugural town hall for February 29

The Massachusetts Department of Energy Resources (DOER) announced that it has scheduled an inaugural Town Hall on February 29, 2024, from 11:30 am – 1:00 pm. DOER leadership will introduce the Department, provide an overview of key initiatives, share a timeline of engagement opportunities, and host a Q&A session. The session will be hosted virtually, and registration is available here.

DOER launches vehicle electrification survey seeking feedback from fleet owners and operators; Responses Due February 28

On February 16, 2024, the Massachusetts Department of Energy Resources (DOER) announced the launch of a Vehicle Electrification Feedback Survey. DOER is seeking feedback from fleet owners and operators on barriers to electrification Responses are due by February 28, 2024. The State plans to apply for an Environmental Protection Agency Climate Pollution Reduction Grant to support the MOR-EV Trucks incentive program and Fleet Advisor program, as well as provide additional support to medium- and heavy-duty fleet owners and operators interested in fleet electrification; the survey results will inform these measures.

Other Massachusetts News of Note

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Connecticut

E&T Committee holds Initial meeting of 2024 session, raises concepts that will be drafted into bills

On February 8, 2023, the Connecticut General Assembly’s Joint Energy and Technology (E&T) Committee held its first meeting of the 2024 legislative session (last discussed in NE Special Flash 24-5.3). The agenda for the meeting can be found here.

At the meeting, the E&T Committee voted to draft several “concepts” (i.e., the bill titles listed below) into full bills with legislative language. House Chair Jonathan Steinberg (D) noted that this is not necessarily the complete list of concepts that would be raised into bills this session, but it does represent the vast majority of the bills that would be raised in 2024.

Chair Steinberg noted that HB 5004 would be a legislative vehicle for energy and environmental topics in this session, and that the energy potions of that bill would be heard in the E&T Committee, and combined with HB 5004 later in the session. HB 5004 does not yet appear on the General Assembly’s webpage.

Chair Steinberg noted that some of the concepts have been drafted into full bills by legislative staff, while others were in their initial phases. All bills must be reported from the E&T Committee by March 26, known as the Joint Favorable (JF) deadline in Connecticut. Chair Steinberg informed the Committee members that the E&T Committee would only have three or four hearings due to the timeline of the deadline, and around three informal information sessions.

We list the bill concepts related to renewable energy below, along with any commentary from Committee Chair Steinberg:

Rep. Mushinsky (D) noted she would submit concepts to incent heat pumps in the State, as well as directing the Connecticut Public Utilities Regulatory Authority (PURA) to consider future electrification. It is unclear if the “electrification” Rep. Mushinsky refers to is electrification of transportation, buildings, industry, all three, or some combination of the three.

Chair Steinberg noted there would be an informational forum on solar topics on February 23.

Environment Committee holds initial meeting of 2024 session; Committee votes to draft concept bills relating to Siting Council, solar panel recycling, into full bills; announces upcoming meeting on February 23, public hearing on February 28

As discussed in NE Flash 24-5, on February 9, 2024 and February 16, 2024, the Connecticut General Assembly’s Joint Environment Committee held its first two meetings of the 2024 legislative session. The agenda for the meetings can be found here (February 9) and here (February 16).

At the February 9 meeting, the Committee voted, via voice vote, to draft 24 concept bills into full bills, including the following two relevant to renewable energy:

At the February 16 meeting, the Committee voted, via voice vote, to draft ten concept bills into full bills, including the following concepts potentially related to renewable energy:

We note that the Committee postponed a vote for one concept bill that may pertain to renewable energy, An Act Concerning Minor Revisions To Environment-Related Statutes. This concept was on the agenda for the February 16 meeting.

After the vote, Chair Joseph P. Gresko (D) announced that the Committee will hold its next meeting on February 23 at 10:00am. This will be the final concept meeting of the legislative session. An agenda has not been released.

Chair Gresko also announced that the Environment Committee will hold its first public hearing of the session on February 28 at 10:00am. An Agenda has not been released.

In proceeding on Medium- and Heavy-Duty EV Charging, Stakeholders file comments urging for more incentives and rate design

As discussed in NE Flash 24-3, on October 11, 2023, the Connecticut Public Utilities Regulatory Authority (PURA) issued a Procedural Order that directed the electric distribution companies (EDCs), Eversource Energy (Eversource) and the United Illuminating Company (UI), to develop and submit proposed modification to the following:

PURA further directed the EDCs to propose a “make-ready incentive structure” that would allow MHD EV fleet operators to either (listed verbatim):

The following stakeholders filed comments:

Key comments, organized by issue, are outlined below:

Rate Designs

Incentives

PURA issues notice of opportunity to comment on use of consultants in PBR distribution system planning docket, comments due February 27

On February 13, 2024, the Connecticut Public Utilities Regulatory Authority (PURA) issued a notice of opportunity to comment on the retention of consultants by PURA in Docket 21-05-15RE03, an Investigation into the Establishment of Integrated Distribution System Planning within a Performance-Based Regulation Framework. In the Notice, PURA states that it has determined that it is necessary to retain a consultant for distribution system planning. Docket participants and other stakeholders may comment on the necessity and desirability of such consulting services through the PURA web-filing system or by emailing Pura.ExecutiveSecretary@ct.gov by February 27, 2024 at 4:00pm.

PURA Announces March 6 Technical Meeting in PBR Distribution planning docket

On February 14, 2024, the Connecticut Public Utilities Regulatory Authority (PURA) announced a technical meeting to be held on March 6, 2024 at 11:00am, in in Docket 21-05-15RE03, an Investigation into the Establishment of Integrated Distribution System Planning within a Performance-Based Regulation Framework. At the technical meeting, PURA plans to discuss the information technology (IT) systems that support the electric distribution companies (EDCs) system planning processes. Interested parties may register for the meeting here. Participants and stakeholders that intend to present at the meeting must send a list of presenters and an estimated time of presentation to laura.lupoli@ct.gov, by 4:00pm on February 28, 2024, and must submit presentations through the PURA web filing system by 4:00pm on March 4, 2024.

Other Connecticut News of Note

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Rhode Island

E3 presents draft analysis in future of gas docket to stakeholders

As last discussed in NE Special Flash 24-5.3, on February 6, 2024, in Docket 22-01-NG, Energy + Environmental Economics (E3) submitted, to the Rhode Island Public Utilities Commission (PUC), its draft results of the six scenarios it modeled to explore various roles (or lack thereof) that the distributed natural gas system could play while Rhode Island pursues its decarbonization goals. E3 is a consultant to the PUC in his proceeding. The following graphic summarizes these six scenarios, as well as their focus areas and guiding research questions:

For each scenario, the deployment of energy efficiency technologies, weatherization, zero emissions vehicles (ZEVs), clean electricity, and emissions sinks were held constant, so only electrification and low-carbon fuel deployment varied. We summarize the key findings from E3’s analysis, as follows:

E3 also provided a link to its spreadsheet containing its input assumptions. Overall, E3’s analysis found significant out-year costs and risks for ratepayers in continuing to maintain the gas system at its current scale, and that gas system strategies that prioritize electrification (likely in a staged/managed transition to electrification) would have lower costs for ratepayers. Given the PUC’s mainly ratepayer-focused approach, these results suggest that future gas system strategies the PUC approves will require Rhode Island Energy to engage in substantial electrification to meet Act on Climate targets, and (similar to Massachusetts) a declining degree of investment into the existing gas system.

RI Energy files 2024-2026 System Reliability Procurement Investment Proposal for Demand Response; recommends new EV Demand Response program

As discussed in NE Flash 24-6, on February 8, 2024, in Docket No. 24-06-EE, Rhode Island Energy (RI Energy) filed its 2024-2026 System Reliability Procurement Investment Proposal for Electric Demand Response. As discussed in NE Flash 23-5, the System Reliability Procurement (SRP) program allows RI Energy to solicit third-party solutions to solve grid needs, as an alternative to traditional, RI Energy-owned poles and wires solutions. SRP includes programs to achieve these goals, notably, incentives for consumers to shift demand (e.g., ConnectedSolutions).

The chart below details RI Energy’s projected SRP budget, projected benefits, and proposed performance incentives for calendar years 2024-2026. 

RI Energy suggested recovering ConnectedSolutions’ programmatic costs through an SRP factor of $0.00224/kWh for the months of June – December 2024, to be updated in subsequent years.

RI Energy also proposed the below changes to ConnectedSolutions’ programmatic offerings.

Electric Vehicle Demand Response (EVDR)

RI Energy proposed an EVDR pathway through which it will incentivize residential and small business customers to curtail electric vehicle (EV) charging during peak demand periods. Participants would be eligible for a $50 upfront incentive and a $20/season participation incentive. RI Energy suggested targeting 500 participants in 2024, an additional 750 participants in 2025, and another 1,000 new participants in 2026.

RI Energy drew comparisons between the EVDR pathway and its former Smart Charge RI program, which likewise incented participants for charging during off-peak windows. RI Energy noted that while Smart Charge RI employed a “behavioral (or passive)” approach by “incentiviz[ing] and nudg[ing] desired charge schedules,” EVDR would “actively manage[]” such loads by “remotely curtailing charge hours.”

RI Energy noted that it “anticipates” that its forthcoming proposal for Phase II of its Electric Transportation Initiative will include an “expanded off-peak charging rebate pilot.” Participants could participate only in the EVDR pathway or the off-peak charging rebate program.

Bring Your Own Thermostat (BYOT)

The BYOT program incents participants to curtail their electric demand during the annual system peak hour and other “high peak days” in June through September. Noting that this pathway carries the second-lowest cost for peak demand reduction, RI Energy proposed increasing the upfront enrollment incentive from $25 to $50.

Targeted Dispatch and Daily Dispatch

The Targeted Dispatch and Daily Dispatch pathways are pay-for-performance incentive programs available to commercial & industrial (C&I) customers. Participants are incented to curtail their electric demand during the annual system peak hour, as well as other high (both pathways) and medium (Daily Dispatch pathway only) peak days in June through September. RI Energy proposed reducing the incentive level for the Targeted Dispatch pathway from $40/kW to $35/kW, and from $300/kW to $275/kW for the Daily Dispatch pathway. RI Energy also suggested an aggregated annual per-customer cap of $1,000,000 across both pathways. 

Residential and Small Business (RSB) Battery Pathway

RSB Battery pathway participants receive an incentive based on the annual performance of their battery energy storage system (BESS) discharge during peak events. Citing a desire to lower the cost associated with procuring a unit of peak demand “more in line with the Company’s willingness to pay,” RI Energy proposed that participants who enroll by June 1 receive a $400/kW multiyear incentive, and those who enroll later receive a $225/kW multiyear incentive. RI Energy suggested that participants who reach the end of the “five-year incentive lock” receive a reduced $200/kW incentive. Additionally, RI Energy proposed transitioning from a “five-year rate lock” to a “multiyear incentive rate” (i.e., subject to change) to “provide due transparency about possible variations in expected revenues.”

House Finance Committee to hold budget meeting at which it will discus EV charging funding

On March 6, 2024, at 4:00 pm ET, in Room 35 of the State House, the Rhode Island House Finance Committee will hold a budget appropriations meeting (agenda), and will discuss H. 7225 – An Act Making Appropriations For The Support Of The State For The Fiscal Year Ending June 30, 2025 (the 2025 state budget) Article 2 Section 9 allocating funding for electric vehicle (EV) charging stations and maintenance infrastructure. The meeting can be streamed live here.

RI Energy files revised schedules for potential 2024-2026 REG program tariff and rule changes

As discussed in NE Flash 23-48, on November 15, 2023, in Docket 23-44-REG, the proceeding in which the Rhode Island Public Utilities Commission (PUC) is reviewing the 2024 Renewable Energy Growth (REG) program, Rhode Island Energy (RI Energy) filed its Renewable Energy Growth Tariff and Enrollment Rule Changes for Program Year 2024. RI Energy’s proposed tariff changes, broadly speaking, proposed several amendments to the program, which were necessitated by or second-order effects from Chapter 300 and 301 – An Act Relative to Public Utilities and Carriers – Net Metering.

On January 29, 2024, RI Energy filed Revised schedules including a revised tariff. Revisions relative to the November filing are highlighted. The revisions contain details regarding the process by which projects can certify that they are not located on core forest or are located on a preferred site, including updated definitions relating to core forests. In addition, the revisions simplify language associated with triggers for the revision of future year prices if interest rates, total project costs, and/or state/federal law change significantly.

Other Rhode Island News of Note

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Maine

PUC initiates Rulemaking for proposed RFP for Class IA projects equal to 5% of load, with preference for projects on contaminated land; PUC to issue RFP within three months of adopting proposed rules

On February 13, 2024, at the stakeholder  meeting in Docket 2024-00028, (discussed in NE Special Flash 24-5.3), the Maine Public Utilities Commission (PUC) issued a Notice of Rulemaking and Proposed Procurement for Renewable Resources with a Preference for Projects Located on Contaminated Land. As discussed in NE Special Flash 23-25.2, on June 26, 2023, Governor Janet Mills (D) signed into law Chapter 321 of 2023, which required that the PUC issue a solicitation by January 1, 2024, for energy and RECs from Class IA renewable projects equal to 5% of retail load, plus any amount contracted under previous Class IA procurements that the PUC expects not to be fulfilled. Though the PUC’s deadline for issuing the solicitation has already passed, the PUC has not yet approved the terms of the solicitation. Contracts are allowed to have up to a 20-year term, unless the PUC determines that a longer contract would be in the public interest.

As proposed in the PUC Rulemaking, bid requirements would include:

The PUC proposed that it will consider the following during its bid evaluation:

The PUC must issue the solicitation within three months of adopting the proposed solicitation rules. If the PUC does not procure all the energy and RECs that it is required to procure, then it will issue a subsequent procurement for remaining RECs and energy within one year of concluding the first solicitation, and will continue to do so until it has approved contacts for the full statutorily required quantity.

The PUC noted that it will include more specific process deadlines when it issues the RFP(s).

PUC grants in part CMP request for six-month waiver from site-visit timeline requirements for Level 1 and 2 interconnection applications

As discussed in NE Flash 24-3, on January 9, 2023, in Docket 2024-00013, Central Maine Power Company (CMP) filed a Petition, with the Maine Public Utilities Commission (PUC), requesting a six-month waiver of certain Chapter 324 interconnection timeline requirements. Specifically, the Petition requested a waiver from Section 16 of Chapter 324, which requires that CMP perform site visits on all Level 1 and Level 2 Projects within ten business days of a project passing all applicable screens and prior to executing a project’s interconnection application (IA). In its Petition, CMP explained that it is seeking the wavier to “implement a process and acquire sufficient resources and personnel able to complete this new Chapter 324 requirement within the time period provided.”

On February 8, 2024, the PUC issued an Order approving the request. In the Order, the PUC found that good cause existed to grant the requested waiver to the extent that CMP can determine without a site visit that distribution upgrades for projects will not exceed the thresholds for which projects will be required to fund system upgrades beyond the fixed fee established by the PUC (see coverage of Order adopting fixed fee in NE Flash 23-45). However, the PUC found that for Level 1 and Level 2 projects that will be assigned upgrade costs beyond the fixed fee, and for whom CMP needs to perform a site visit in order to determine the extent of those upgrade costs, CMP is still required to comply with the requirements.

CMP files revised NEB Application form including requirements that Tariff Rate applications collocate with offtakers

On February 7, 2024, in Docket 2024-00030, Central Maine Power Company (CMP) filed, with the Maine Public Utilities Commission (PUC), a Revised Net Energy Billing Application form. The revised application includes requirements that Tariff Rate applications verify that all subscribers are collocated with facility, per the requirements of Chapter 411.

DEP methodology for calculating gross and net annual GHG emissions for State GHG reduction targets take effect

On February 6, 2024, the Final Rule that the Maine Department of Environmental Protection (DEP) created for Chapter 167: Tracking and Reporting Gross and Net Annual Greenhouse Gas Emissions took effect. As discussed in NE Flash 90.1, the Rule establishes methods for the calculation of annual greenhouse gas (GHG) emissions as required by 38 M.R.S. § 576-A, which called for the DEP to adopt rules to track gross and net GHG emissions. Pursuant to Chapter 476 of 2019, the State is required to reduce carbon emissions by 45% relative to 1990 by 2030 and 80% by 2050, with interim targets to be met in 2040 to demonstrate that the goal will be achieved. We note the Chapter 167 Rulemaking lists its target as carbon neutrality by 2045, but does not include any interim targets.

Under the Rule, DEP will calculate gross and net carbon emissions using direct facility emissions reporting, the Environmental Protection Agency’s State Inventory Tool, biogenic emissions, energy consumption data, and economic data. Chapter 167 requires DEP to issue a report on its gross greenhouse gas emissions analysis every two years.

For net greenhouse gas analysis, Chapter 167 requires DEP to calculate the difference between GHG emissions and sequestration from fossil fuels, waste, forests, wood products, wetlands, agriculture, urban biomass and soils, inland waters, and coastal waters.

EUT Committee schedules public hearing for whole-home heat pump bill on February 22; work session to discuss performance-based ratemaking and competitive electric supplier legislation same day

As discussed in NE Special Flash 24-6.2, the Maine Legislature’s Joint Energy, Utilities, and Technology (EUT) Committee has scheduled a public hearing for February 22, 2024 to receive testimony on LD 2206 – An Act Regarding Incentives for Heat Pumps and Other Weatherization Products and Services. The hearing will commence at 1:15 pm. and will be livestreamed here. If enacted, this bill would amend Sec. 1. 35-A MRSA §10119, sub-§2, ¶C, regarding the Heating Fuels Efficiency and Weatherization Fund and the development of a heating fuel efficiency and weatherization incentive program by the Efficiency Maine Trust (the Trust). The bill would prohibit the Trust from requiring that a consumer disconnect their existing primary heating equipment powered by heating fuel in order to receive an incentive under this type of program.

As discussed in NE Special Flash 24-5.3, the EUT Committee was scheduled to discuss LD 2163 – An Act to Require Electricity Providers to Inform Customers of Alternative Electric Rates and Gather Consent Prior to Contract Renewal and LD 2172 – An Act to Enhance Electric Utility Performance-based Ratemaking during a work session on February 15. Both bills were ultimately tabled, and have been rescheduled for a work session on February 22 at 2:00 pm. The meeting will be livestreamed here. The EUT Committee was likewise slated to discuss LD 2077 – An Act Regarding Customer Costs and the Environmental and Health Effects of Natural Gas during a February 15 work session. That session was ultimately cancelled, and the bill has not yet been rescheduled.

Governor Mills introduces supplemental budget proposal; proposes $1.5M for Renewable Energy Facilities Property Tax Exemption Program and $5M to support municipalities’ and tribes’ climate planning and actions, including clean energy projects; public hearings scheduled for week of February 20

On February 14, 2024, Governor Janet Mills (D) introduced a supplemental budget proposal, LD 2214 –  An Act to Make Supplemental Appropriations and Allocations for the Expenditures of State Government, General Fund and Other Funds and to Change Certain Provisions of the Law Necessary to the Proper Operations of State Government for the Fiscal Years Ending June 30, 2024 and June 30, 2025. The proposed supplemental budget includes $1.5M for the Renewable Energy Facilities Property Tax Exemption Program and $5M to support municipalities’ and tribes’ climate planning and actions, including clean energy projects.

The Joint Committee on Appropriations and Financial Affairs (AFA) has scheduled the legislation for a series of public hearings throughout the week of February 20:

All hearings will be in Room 228 of the State House and will be livestreamed here. We will provide additional information on the provisions relevant to renewable energy in a forthcoming flash update.

Stakeholders file comments on Efficiency Maine Trust’s Electric Efficiency and Conservation Programs rulemaking

During the week of February 5, 2024, Efficiency Maine Trust (the Trust) posted stakeholder comments on proposed amendments to Chapter 3 of its rules, which governs the implementation of the Trust’s Electric Efficiency and Conservation Programs. As most recently discussed in NE Flash 24-3, these amendments reflect changes required by P.L. 2023, ch. 328, An Act to Enact the Beneficial Electrification Policy Act (summarized in NE Special Flash 23-25.2). A detailed summary of the proposed amendments is available in NE Flash 23-48.

The following stakeholders submitted comments:

CLF encouraged the Trust to adopt rules that would expand participation in Trust programs, by allocating 40 percent, rather than the current 10 percent, of program funds to low income residential consumers, and to expand the definition of “low income” to align with the definition of “disadvantaged communities” in the Biden Administration’s Justice40 initiative (a provision of a 2021 executive order setting the goal that 40% of the benefits of certain Federal investments be directed towards disadvantaged communities). CLF encouraged the Trust to include the goal of 55% of heavy-duty vehicle sales be zero-emission by 2030, and to dedicate 40% of electric vehicle (EV) funding to disadvantaged communities. CLF also encouraged the Trust to loosen its cost effectiveness tests such that more programs would qualify as cost effective. CLF suggested expanding the number of programs that the Trust exempts from its cost-effectiveness test by expanding its “Non-Quantifiable Cost Effectiveness” criteria, and encouraged the Trust to consider only gross efficiency savings, rather than net efficiency savings, while evaluating efficiency programs in its Triennial Plan.

NRCM voiced “strong support” for the proposed rule, especially the inclusion of beneficial electrification in the Trust’s scope. NRCM differed from CLF by calling the proposed rule to include net cost savings as a practical and important modification of the Trust’s current practice, because it more closely reflects the real cost savings felt by consumers who make energy efficiency investments.

Governor Janet Mills signs Executive Order establishing green building standards for government buildings

On January 12, 2024, Maine Governor Janet Mills signed an Executive Order that established new  green building standards for government buildings in the State. This Executive Order aligns with Maine’s climate goals of achieving carbon neutrality by 2045. The Order notes that, as heat, cooling, and lighting of buildings contribute to nearly one-third of Maine’s greenhouse gas emissions, modernizing buildings to utilize clean energy and enhance energy efficiency is important to meeting the State’s climate goals. Key portions of the Executive Order related to new green building standards are outlined below (verbatim):

PUC issues Procedural Order confirming $5/MWh Class II ACP will be in effect for Compliance Year 2023

As discussed in NE Flash 23-44, on November 1, 2023, in Docket 2023-00225, the Maine Public Utilities Commission (PUC) issued an Order in which it amended the RPS to establish a Class II RPS Alternative Compliance Payment (ACP) rate of $5/MWh. The PUC issued the Order pursuant to Chapter 361 of 2023(discussed in NE Flash 23-27), which directed the PUC to create a Class II ACP no greater than $10/MWh. On February 8, 2024, the PUC issued a Procedural Order, confirming that the new ACP value took effect on December 2, 2023, and will be the applicable ACP value for Compliance Year 2023.

PUC issues Report re: Methods to Educate Customers on Electricity Supply; Concludes including cost per kWh for each power source on disclosure labels not feasible

On February 12, 2024, Maine Public Utilities Commission (PUC) submitted, to the Maine Legislature’s Joint Standing Committee on Energy, Utilities and Technology (EUT Committee), a Report regarding Methods to Educate Customers about Electricity Supply. On May 8, 2023, Governor Janet Mills signed LD 69 – Resolve, to Direct the Public Utilities Commission to Consider Methods to Educate Customers About Electricity Supply d which became Resolve 2023, Chapter 12 (as discussed in NE Special Flash 23-25.2). This Resolve required that the PUC to issue a request for information (RFI) to competitive electricity providers and standard-offer service providers (“providers”) seeking the following information: 1) whether it is feasible for providers to share with transmission and distribution utilities a ¢/kWh cost for each power source used to serve load, to be included on residential and small nonresidential consumer disclosure labels; and 2) whether it is feasible for providers to calculate the levelized cost of electricity (LCOE) for each power source.

The PUC issued the RFI on November 2, 2023, in Docket 2023-00291. The Report summarizes stakeholders’ comments on the RFI. According to the summary of stakeholder comments in the Report, Constellation Energy Services (Constellation) and NRG Retail Companies (NRG) asserted that it is not feasible to include the cost of generation, in cents per kilowatt-hour from generation, because competitive electricity providers (CEPs) source supply from the wholesale electricity markets in which the suppliers are unable to tie purchases to specific generation sources. NRG suggested that the PUC  (i) provide more robust consumer education materials on PUC’s website, (ii) allow CEPs to bill consumers directly (rather than on the T&D utilities’ bills), (iii) make Time-of-Use (TOU) rates the default rate, and (iv) require T&D utilities using smart meters to provide more transparency on energy usage data to consumers. Central Maine Power Company (CMP) and Versant Power (Versant) asserted that providing a generation cost breakdown would be beneficial to consumers, because consumers pay more attention to the total amount of energy bill.

The PUC concluded that it will continue to engage with the EUT Committee and stakeholders on more options to educate consumers about electricity supply options and costs. The Report also discloses that PUC has engaged a marketing/public relations firm to develop a public outreach plan for 2024, which will include communications on electricity rates with consumers.

Other Maine News of Note

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New Hampshire

Burgess BioPower files for Chapter 11 bankruptcy, terminating contract with Eversource; reportedly intends to continue operation through bankruptcy process

According to New Hampshire Public Radio, during the week ending February 9, 2024, the 75 MW Burgess Biopower facility (Burgess) filed for Chapter 11 bankruptcy and terminated its contract with Eversource Energy (Eversource). As discussed in NE Flash 23-43, on October 26, 2023, the New Hampshire Legislature’s vote to override the veto of HB142 – An Act Relative to the Operation of the Burgess Biopower Plant failed by a margin of 194-159 (236 needed to override). If enacted, this bill would have provided relief to Burgess by addressing the treatment of funds in excess of the cumulative reduction factor (CRF) that was established in the original PPA between Burgess and Eversource (discussed in NE Special Flash 23-12.1). When the contracted price Eversource pays for energy under the PPA, exceeds the wholesale market price (the Cumulative Factor), a credit (the Cumulative Reduction) is created for “the future benefit of Eversource.” This bill would have exempted Burgess Biopower from repaying CRF funds in excess of $150 million that accrued during a suspension of the cap on the CRF. As discussed in NE Flash 23-44, if Burgess needed to repay the CRF funds, Sustainable Energy Advantage’s research and analysis suggested that it was likely that Burgess would file for Chapter 11 or Chapter 7 bankruptcy.

Burgess has claimed that it will continue generating through the bankruptcy process. We note that until Vineyard Wind I becomes fully operational, Burgess is remains the largest REC producer in New England, and is certified as a Class I resource in Connecticut, Rhode Island, Maine, and New Hampshire, so its closure would significantly reduce REC supply in New England REC markets.  Sustainable Energy Advantage issues analyses of the New England REC market on an ongoing basis as part of SEA’s New England Renewable Energy Market Outlook, including analysis of how project shutdowns could affect REC prices. For more information, please contact Sustainable Energy Advantage’s Po-Yu Yuen.

New Hampshire Senate votes to pass bills relating to EV Study Commission, property tax exemptions for grid-scale generators; House kills bill that would ban state EV purchases, two bills that would regulate EBikes, and bill that would require solar canopies over large parking lots

On February 8, 2024, the House and Senate chambers of the New Hampshire General Court held general sessions during which they took actions on several bills related to renewable energy. We list those bills, organized by legislative action, below.

Passed (As Amended)

SB430 – An Act Relative to Establishing a Commission to Study the Impacts of Electric Vehicles, lithium-Ion Batteries, and E-Mobility Devices on First Responder Response, the Environment, Building and Fire Codes, and Life and Safety Property Protection (recording available here). As discussed in NE Flash 24-3, if enacted, this bill would establish a commission to study the impacts of electric vehicles (EVs), lithium-ion batteries, and e-mobility devices, characterized by the U.S. Department of Transportation as light, medium, and heavy-duty electric vehicles, electric micromobility devices such as scooters and e-bikes, and transit vehicles, on the following:

This bill was passed via voice vote.

SB584 – Relative to the application of the utility property tax to certain renewable electric generating facilities, and relative to communications services tax revenues. If enacted, this bill would:

We note that the original version of the bill would have amended RSA 198:39 to require 50% of the annual revenues collected from the Communications Service Tax to be sent to the Education Trust Fund. This provision was removed from the version of the bill advanced by the Senate on February 8.

This bill was passed via voice vote.

Approved for Interim Study

HB1333 – An Act relative to prohibiting state agencies from buying or leasing electric vehicles for 10 years. If enacted, this bill would have placed a 10-year moratorium on state rentals, leases, and purchases of electric, plug-in hybrid, and hybrid vehicles.

We note that because the New Hampshire General Court is in the second year of its two-year session, a referral to interim study effectively kills the bill.

Voted Inexpedient to Legislate

HB1445 – Relative to electric bicycles, electric scooters, and electric unicycles. As discussed in NE Flash 24-6, on January 30, 2024, the House Transportation Committee reported HB1445 as inexpedient to legislate (ITL). If enacted, the bill would have repealed RSA 265:144-a and reenacted it to read that any class of electric bicycle capable of speeds 15 miles per hour is faster (with assistance of electric motor and battery power) shall:

The bill would have also required headlights, tail lights, brake lights, and speedometers for all classes of electric bicycles, and redefined “electric scooter” and “electric unicycle” in state statute.

HB1543 – Relative to personal electric vehicles (PEVs). As discussed in NE Flash 24-6, on January 30, 2024, the House Transportation Committee reported HB1445 as ITL. If enacted, this bill would have amended RSA 259 by redefining “Personal Electric Vehicle” (PEV) to include any electric motor-driven vehicle where the motor exceeds 1.0 horsepower, excluding electric bicycles. The bill would have prohibited anyone from operating a PEV over 5 mph on sidewalks, walkways, or walking trails, and over 15 mph on public rail trails, public hiking trails, and public bicycle trails.The bill would have redefined “Electric bicycle” as “a pedaled vehicle equipped with an electric motor of less than 750 watts.”

HB1641 – An Act Relating to Requiring Large Parking Lots To Have A Solar Power Canopy. As discussed in NE Flash 24-4, on January 24, 2024, the House Municipal and County Government Committee reported HB1641 as ITL.  If enacted, the bill would have required parking lot owners to install solar canopies over lots with 80 to 400 spaces by 2030, and parking lots exceeding 400 spaces by 2028.

The ITPs were all approved via voice vote.

New Hampshire House Committees votes to pass bills relating to filing integrated distribution plans, review and adapt regulations for nuclear energy development, making nuclear energy generated after September 1, 2024 a Class I resource, and prohibiting EVs from parking in parking garages; House kills bills relating to cars parking in EV-designated parking spots and establishing a commissions to study barriers to EV adoption

Between February 13 and 20, 2024, several Committees of the New Hampshire House of Representatives hosted sessions during which they heard testimony on and/or considered bills related to renewable energy. We list the bills along with any Committee reports, organized by the date and time of each session, below:

Tuesday, February 13, 2024

The New Hampshire House Science, Technology and Energy (STE) Committee held a Work Session and Executive Session on the following bills:

The Committee voted Ought to Pass with Amendment. This amendment would amend RSA 378:38, III-VI and would include an assessment of distribution infrastructure, potential non-wires solutions, and the plan’s integration and consistency with the state energy strategy, and RSA 378:39-378:40 which would require every gas public utility to file an integrated gas distribution plan and undergo a review from the commission.

The Majority Committee voted Ought to Pass with Amendment, while the Minority Committee voted Inexpedient to Legislate. This amendment would amend RSA 162-B:3 which would require continuing studies by state agencies, RSA 162-B:4 which would establish a position to assist the commissioner of the department of energy, RSA 12-0:51 which would rename the office of offshore wind industry development to the office energy innovation, and rename the bill to An Act Relative to Studies of Nuclear Energy Technologies and Renaming the Office of Offshore Wind Industry Development.  

The Committee voted Ought to Pass with Amendment.

The New Hampshire House Transportation Committee held an Executive Session on the following bills:

The Committee voted Ought to Pass.

The Committee voted Inexpedient to Legislate. 

Wednesday, February 14, 2024

The New Hampshire House Public Works and Highways held an Executive Session on the following bill:

The Committee voted Inexpedient to Legislate by a margin of 12-6.

House Executive Departments and Administration Committee holds Feb 13 Public Hearing on Bill to update the New Hampshire Building Code; Nongovernmental Organizations support, construction industry and Building Code Review Board oppose amendment that would also update Energy Code

On Tuesday, February 13, New Hampshire House of Representatives’ Executive Departments and Administration Committee held a Public Hearing on HB1059 – An Act Relative to the State Building Code. If enacted, this bill would amend RSA 155-A, which concerns the New Hampshire Building Code, to adopt the 2021 editions of the International Building Code, International Existing Building Code, International Plumbing Code, International Mechanical Code, International Swimming Pool and Spa Code, and International Residential Code. New Hampshire currently uses the 2018 editions. The bill would also adopt all amendments reviewed and approved by the New Hampshire Building Code Review Board (BCRB) as of September 8, 2023. Notably, the bill as filed would not mandate the adoption of the 2021 Energy Conservation Code, but instead retains the existing 2018 energy code. We note that this is the counterpart to SB373 – An Act Relative to the State Building Code (last discussed in NE Flash 24-6).

At the hearing, Committee Chair Carol McGuire (R) presented an amendment to the bill that would update the state energy code for commercial and industrial buildings to match the 2021 edition of the International Energy Conservation Code. Rep. McGuire noted that although she personally opposes updating the energy code, she prefers that the Committee debate and vote on the amendment. The amendment text has not yet been released, and hearing testimony was contradictory as to whether the proposed amendment would update energy code for all buildings, or for commercial buildings only.

Rep. Rebecca McWilliams (D) testified in favor of the amendment, arguing that when large commercial facilities aren’t required to conduct energy audits, the costs of excessive energy use will be passed on to ratepayers through increased grid infrastructure costs.

Phillip Sherman, the Chair of Building Code Review Board (BCRB) testified in favor of the original bill without amendment. Sherman noted that the BCRB decided against recommending adoption of the 2021 energy code by a 9-4 vote. Upon questioning, Sherman clarified that most of the controversy surrounding the 2021 energy code centered on changes to the residential code.

The Sierra Club testified in opposition to the bill as introduced, supporting the amendment that would update the energy code. The Sierra Club highlighted energy cost savings associated with 2021 energy code updates, and encouraged adoption of energy codes that reflect recent advances in heating and cooling technology.

The New Hampshire Fire Marshal’s Office testified in support of the bill as written, but noted that it is open to discussing adoption of the 2021 energy code.

The New Hampshire Homebuilders Association (NHHA) testified in opposition to updating any statewide building codes, with a strong opposition to the amendment that would update the energy code. NHHA cited a study commissioned by the National Association of Homebuilders which found that the 2021 energy code would increase up-front construction costs for a single-family home by $31,000, increasing monthly mortgage payments by $206, adding up to $75,000 over a 30-year mortgage at current rates, dwarfing savings on energy costs. NHHA further voiced concerns that the increased costs would drive middle-class homebuyers away from New Hampshire, and that airtight houses face increased risk of mold and mildew. NHHA noted that it is more concerned about costs facing homeowners than those facing commercial facilities.

The Associated General Contractors of New Hampshire (AGCNH), which represents commercial contractors, testified in support of the bill as written, opposing the amendment that would update the energy code. AGCNH argued that the energy code is not related to safety or structural integrity of buildings, and that the costs of implementing the energy code would burden property owners and renters, including affordable housing residents. AGCNH noted further that the 2021 energy code was written before recent increases in inflation and mortgage rates, when payback periods for up-front investments were shorter. 

Clean Energy New Hampshire (CENH) testified in opposition to the bill as introduced, supporting the amendment that would update the energy code. CENH encouraged the Committee to fact-check the study cited by NHHA, arguing that the assumptions underlying the study were faulty and that CENH estimates up-front cost impacts of the new energy code to be about $8000.

The Community Power Coalition of New Hampshire (CPCNH) testified in opposition to the bill as written, supping the amendment that would update the energy code, citing energy savings by homeowners and renters. CPCNH further opined that these savings would increase as consumers adopt electric vehicles and electric home heating, and that New Hampshire would forego about $4 million of federal funding through P.L. 117-169 – The Inflation Reduction Act of 2022 (IRA) if it does not adopt 2021 energy code.

Ted Evans, a building inspector who sits on the BCRB testified in support of the amendment that would update the energy code, noting updating the energy code would simplify the inspection process by aligning all building codes with 2021 standards.

The American Society of Heating, Refrigeration, and Air Conditioning Engineers (ASHRAE), which develops building code standards, testified in support of the amendment that would update the energy code. ASHRAE also objected to the methods underlying the study cited by NHHA. ASHRAE emphasized that insulation retrofits are ten times more expensive than installing efficient insulation at the time of construction.

Majority of the House Environment and Agriculture Committee reports Constitutional Amendment Concurrent Resolution regarding environment and natural resources as Inexpedient to Legislate

On February 6, 2024, the New Hampshire House of Representative’s Environment and Agriculture (EA) Committee held an Executive Session during which the Committee considered CACR14 – An Act Relating to the Environment and Natural Resources and Providing that the State Shall Maintain and Improve a Clean and Healthful Environment for Present and Future Generations.

If enacted, this bill would direct the following constitutional amendment to be proposed to New Hampshire voters as a ballot initiative during the November 2024 election:

The people of this state shall maintain and improve a clean and healthful environment in New Hampshire for present and future generations.  The legislature and magistrates shall provide adequate remedies for the protection of the environmental life support system and provide adequate remedies to prevent unreasonable depletion and degradation of natural resources.

The Majority of the EA Committee (13-7) reported the bill Inexpedient to Legislate. The Minority of the EA Committee reported the bill Ought to Pass.

PUC authorizes Governance Council to include a regional approach for the GRIP grant application for a statewide multi-use energy platform, contingent on monthly progress reports

On February 8, 2024, in Docket 19-197, following a Status Conference for the Grid Resilience and Innovation Partnerships (GRIP) Program, the New Hampshire Public Utilities Commission (PUC) issued Order No. 26,944. On January 26, 2024, Liberty Utilities (Liberty) filed a letter requesting that the PUC preliminarily approve a regional approach for exploring partnerships to submit grant applications seeking funding from the GRIP Program for the Statewide Multi-Use Online Energy Data Platform. On January 29, 2024, PUC issued a Procedure Order scheduling a status conference on February 8to allow the Governance Council (GC) “to present material to the PUC for discussion” on the matter of a regional approach (as discussed in NE Flash 24-5).

In Order 26,944, the PUC authorized the GC to include regional approach in the GRIP grant application to the Data Platform development and ordered the GC to file monthly report on its progress.

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ISO New England

FCA 18 clears at $3.58/kW-month, almost all new resources were energy storage, solar, wind, or demand-reducing resources

On February 9, 2024, ISO-NE announced and published results from Forward Capacity Auction (FCA) 18 for the Capacity Commitment Period beginning June 1, 2027 and ending May 31, 2028. Clearing prices for the Rest of Pool (ROP), Northern New England, and Maine Capacity Zones were set at $3.580/kW-month across all zones and import interfaces, with 31,556 MW of secured capacity commitments. For comparison, last year’s clearing prices were between $2.55/kW-month and $2.59/kW-month and clearing prices in the ROP zone in the last three FCAs ranged between $2.59 and $2.61. The capacity market in 2027/2028 is estimated to be worth $1.3 billion.

Most new resources with capacity supply obligations were energy storage, solar, wind, and “demand-reducing” resources. These included 185 MW of new wind resources, and a combined 795 MW in new solar and energy storage resources. Clean energy resources, new and existing, accounted for 5,540 MW, or 18% of all capacity clearing the auction. There were four rounds of competitive bidding. This auction closed with sufficient resources (nearly 1GW of surplus) to meet the 30,550 installed capacity requirement, continuing a multi-year trend of significant surpluses in the capacity market.

NEPOOL Transmission Committee continues discussions on Order 2023 compliance; votes not to support stakeholder amendments or ISO-NE proposal

On February 15, 2024, at the NEPOOL Transmission Committee (TC) meeting (agenda), ISO‑NE presented its proposal to comply with FERC Order 2023 as well as some proposed stakeholder amendments.  Ultimately, the TC voted not to support either any of the amendments or the main motion on ISO-NE proposed compliance approach. As summarized in NE Flash 23-31, Order 2023 required all regional transmission organizations (RTOs) and independent system operators (ISOs) to adopt reforms revising their generator interconnection procedures to address interconnection queue backlogs and prevent undue discrimination against new technologies. We detailed ISO-NE’s December 21, 2023 presentation, which summarized ISO-NE’s most recent compliance plan, in NE Special Flash 23-50.2. At the February meeting ISO-NE provided two presentations on Order 2023, one responding to stakeholder comments and recapping key compliance elements, which we discuss below, and one summarizing the redlined tariff (find the redlines here). As discussed in NE Flash 24-4, stakeholders have provided comments and amendments on the tariff at previous TC meetings, some of which are repeated in this most recent round of stakeholder submissions.

The following stakeholders provided comments and amendments to ISO-NE:

Glenvale proposed an amendment reducing both the Initial Commercial Readiness Deposit (CRD) for Large Generator Interconnection Procedures (LGIP) and Small Generator Interconnection Procedures (SGIP), and the Transitional Cluster Study Entry CRD for SGIP. ISO-NE responded affirming the Initial CRD at $250,000 for LGIP and $100,000 for SGIP, which ISO-NE indicted were based on “recent history of study costs, and current deposit levels.”. Additionally, ISO-NE corrected the Transitional Cluster Study Entry CRD for SGIP projects to match the originally proposed amount of $500,000.

AEU proposed an amendment that ISO-NE establish reporting requirements and an interconnection working group, though ISO-NE contends that it already reports quarterly on interconnection metrics. AEU also asked that ISO‑NE clarify the timeline for the cluster cycle process. ISO-NE elaborated that the timeline exceeds FERC’s timeline by 60 days.

RENEW proposed an amendment that ISO-NE tracks the Network Resource Interconnection Service (NRIS) and Capacity Network Resource Interconnection Service (CNRIS) cluster study costs separately and allocate those costs accordingly. NRIS and CNRIS cluster studies investigate energy interconnection and capacity interconnection respectively. ISO-NE declined to consider this amendment saying, “the study efforts needed to evaluate NRIS and CNRIS cannot be separated.”

AEU and RENEW jointly proposed an amendment that ISO-NE provide a “single limited opportunity” for interconnection customers to reduce upgrade costs by reducing project size, and that ISO‑NE clarify what qualifies as a “material” modification to the project plan in a material modification assessment. ISO-NE demurred, referencing the FERC response in Order 2023 to a similar revision proposed by CREA and NewSun adjusting project sizes that FERC refused, and did not elaborate further on what a “material” modification would be.

New Leaf proposed an amendment that ISO-NE “continue studying late stage serial System Impact Study (SIS) projects expected to receive draft SIS reports” by July 15, which ISO-NE declined to do, calling the amendment “not implementable.” ISO‑NE reiterated that the projects may request to pause study work.

None of the amendments proposed above were approved by the TC in voting. Looking ahead, the NEPOOL Participants Committee is scheduled to vote on the proposal and proposed amendments on March 7. ISO-NE noted that it anticipates filing its Order 2023-related tariff changes with FERC on April 1.

NEPOOL Reliability Committee continues discussing Resource Adequacy Assessment changes associated with the Resource Capacity Accreditation project

As last discussed in NE Flash 24-6, in November 2023, in FERC docket ER23-339, ISO-NE submitted its proposal to delay Forward Capacity Auction #19, (FCA 19) for the 2028-2029 Capacity Commitment Period (CCP) by one year (until 2026) to accommodate the resource capacity accreditation (RCA) project. As a reminder, the RCA project proposes improvements to ISO-NE’s accreditation processes in the Forward Capacity Market (FCM) to further support a reliable, clean-energy transition by implementing methodologies that will more appropriately accredit resource contributions to resource adequacy as the resource mix transforms. We note that, as detailed in NE Flash 24-6, on February 7, 2024, at the NEPOOL Markets Committee (MC) meeting (see agenda), ISO-NE presented a proposal to delay Forward Capacity Auction (FCA) 19 an additional two years, bringing the delay to three years, to accommodate the design and implementation of a prompt and seasonal market for the 2028-2029 Capacity Commitment Period (CCP). With the proposed delay, FCA 19 would be run in February, 2028.

On February 14, 2024, the NEPOOL Markets Committee (MC) reviewed a presentation by ISO‑NE outlining ISO-NE’s proposed resource adequacy assessment (RAA) load modeling and capacity requirements as they pertain to the RCA project (see agenda). For context, ISO-NE found that improvements are required to the RAA used currently to calculate capacity requirements (demand) and develop resource-specific accreditation values, as last discussed in NE Flash 24-2. ISO-NE outlined its current load modeling process in the RAA: the hourly gross load profile is first developed by scaling the 2002 hourly load shape to reflect the forecasted seasonal “gross” peaks, which does reflect demand response resources, but does not account for the impacts from behind the meter (BTM) solar and transportation electrification load. Then, this hourly load profile is further scaled to different levels to reflect the daily peak load forecast uncertainty due to weather. ISO‑NE’s proposed four adjustments to this process to accommodate the RCA project:

ISO-NE explained that its capacity requirements calculations are conceptually unchanged from what is done today; the net installed capacity requirement (ICR) and total ICR will continue to be calculated in the context of summer qualified capacity. ISO-NE noted this is also how its marginal reliability improvement (MRI) system demand curves will be calculated, but highlighted that its methodology for transforming these MRI and associated capacity transfer limit (CTL) values into qualified marginal reliability impact capacity (QMRIC) terms will be discussed at a future MC meeting. ISO-NE is planning to use QMRIC values as a resources accredited capacity value in the forward capacity auction (FCA).

Following its discussed of RAA modeling, ISO-NE provided a subsequent presentation on gas and oil resource modeling, focusing on the and stakeholder feedback it received on its first gas and oil modeling proposal. We detailed ISO-NE’s proposal in NE Flash 24-2, as well as stakeholder comments on its proposal. We summarize key aspects of ISO-NE’s responses to the feedback as follows:

Looking ahead, ISO-NE will apply its proposed gas and oil modeling methodologies to conduct seasonal risk assessment and resource MRI calculations for use in its impact analyses. ISO-NE plans to return to a MC meeting when these results are ready for review and discussion, but a date for this has not yet determined.

At NEPOOL Transmission Committee, ISO-NE discusses Phase 2 Longer-Term Transmission Planning Process and Supplemental Process; NextEra and RI Energy provide supplementary presentations

On February 15, 2024, at the NEPOOL Transmission Committee (TC) meeting, ISO‑NE provided a presentation on the proposed Phase 2 tariff modifications for Longer-Term Transmission Planning, continuing the discussion from the January 23, 2024 meeting (discussed in NE Flash 24-4). As discussed in NE Flash 89.5, in June 2021, the New England States Committee on Electricity (NESCOE) released a Report to the New England Governors recommending revisions to the ISO‑NE Tariff to “implement a state-led, proactive scenario-based planning process for longer-term analysis of state mandates and policies as a routine planning practice.” ISO-NE responded with revisions to Attachment K of its Open Access Transmission Tariff (OATT) to accommodate long-term transmission planning. FERC issued an Order accepting the proposed changes to ISO‑NE’s OATT in February 2022 (discussed in NE Flash 22-9). In October 2023, ISO-NE gave a Presentation on the Phase 2 of OATT changes (discussed in NE Flash 23-42), which aims to create a process to enable the development of transmission infrastructure to address issues identified in Longer-Term Transmission Studies, such as the 2050 Transmission Study. ISO-NE presented a three-step “conceptual process” for transmission development with an RFP Determination phase, RFP Issuance, Administration, Evaluation phase, and a NESCOE Response phase.

At the February TC meeting, ISO-NE’s presentation covered additional information on financial benefit evaluation factors, including:

ISO-NE also continued the discussion of redlined proposed tariff changes to Schedule 12, Attachment K and Attachment P.

ISO-NE gave a second presentation on the proposed supplemental process. As discussed in NE Flash 24-4, at the January 23 TC meeting, the NESCOE gave a presentation on a proposed supplemental process “to increase the likelihood of a successful solicitation,” which would be used only if no projects meet the required benefit-to-cost ratio of 1.0. ISO NE’s presentation covered the proposed tariff revisions that would add this supplemental process and establish a process for NESCOE’s input into it.

NextEra Energy Transmission (NEET) gave a presentation titled, “Competitive Transmission in New England: Challenges and Opportunities for Improvement.” NEET highlighted findings from ISO-NE’s 2050 Transmission Study (draft discussed in NE Flash 23-45) and expressed support for the creation of a competitive process for long-term transmission needs to meet the gaps and goals identified by the study. However, NEET raised three specific concerns with ISO‑NE’s proposed tariff language. NEET argued that (verbatim):

Rhode Island Energy (RI Energy) gave a presentation on its proposed amendments to the tariff revisions. RI Energy proposed that ISO-NE amend the revisions such that:

ISO-NE will be requesting a vote on the proposed tariff revisions at the March 27 TC meeting.

NEPOOL GIS Working Group considers APX’s proposal to accommodate hourly certificates

As discussed in NE Flash 24-5, on January 29, 2024, the NEPOOL GIS Working Group announced via email that it would host a meeting on February 9to discuss a more detailed proposal to accommodate hourly certificates.

On February 8, APX posted the proposal and an associated “Requirement Specification” document. According to the posted materials, APX proposes to:

According to an email sent out after the February 9 meeting, the Working Group will reconvene either before or after APX estimates the number of development hours required to make the proposed changes, depending on comments and questions received regarding the proposal.

FERC continues to hold in abeyance the Section 206 proceeding on ISO-NE’s market power mitigation rules; Extends deadline from February 1 to August 30

As discussed in NE Flash 24-5, on January 29, 2024, in Dockets EL23-62 and ER24-324, ISO-NE filed a Motion for Continued Abeyance of the Section 206 proceeding regarding ISO-NE’s market power mitigation rules. ISO-NE requested that FERC hold the proceeding in abeyance through August 30, 2024.

On February 7, FERC issued an Order accepting the Motion.

Background

As discussed in NE Flash 23-28, the Section 206 proceeding emerged from Dynegy’s March 2023 Request for the recovery of costs incurred while it was subject to market power mitigation (and subsequently under-recovered costs) in the real-time energy market during the capacity scarcity condition that occurred on December 24, 2022 (discussed in NE Flash 23-7). In May 2023, FERC issued an Order approving in part and denying in part Dynegy’s Request and opening a Section 206 proceeding on ISO-NE’s market power mitigation rules.

As discussed in NE Flash 23-45, on November 2, 2023, in response to FERC’s May 2023 Order, ISO‑NE proposed revisions to its Transmission, Markets and Services Tariff to eliminate upward mitigation. ISO-NE also requested additional time to complete additional analyses on “whether the duration of general threshold energy mitigation is appropriate” and “whether a Resource should be permitted to submit multiple fuel price adjustments that reflect the cost of fuel for segments of its Supply Offer that exceed a Resource’s Day-Ahead Energy Market awards.” As discussed in NE Flash 23-50, on December 12, 2023, FERC issued an Order approving ISO-NE’s proposed revisions but did not address ISO-NE’s request for additional time.

NESCOE urges NETOs to complete Asset Condition Needs and Solution Guidance Document by March

As last discussed in NE Flash 24-1, on February 8, 2023, the New England States Committee on Electricity (NESCOE) sent a Memorandum to the New England Transmission Owners (NETOs), CC’ing the ISO-NE Planning Advisory Committee (PAC), recommending enhancements to the asset condition project process. As discussed in NE Flash 23-29, on July 14, NESCOE sent a follow-up Memorandum to the NETOs recommending four overarching improvements, including the provision of one-, two-, five-, and fifteen-year forecasts of asset condition projects. On August 8, the NETOs sent a reply that addressed those recommendations and committed to process enhancements (as discussed in NE Flash 23-33).

Through the PAC, the NETOs have since solicited stakeholder comments on a proposed asset condition project database (discussed in NE Flash 23-38), provided an overview of the asset condition project process (discussed in NE Flash 23-42), released a draft five-year forecast of asset condition projects and revised Asset Condition Project Presentation Guidelines (discussed in NE Flash 23-46), and provided an overarching status update (discussed in NE Flash 24-1).

On February 8, 2024, NESCOE sent another Memorandum to the NETOs, urging them to prioritize completing their promised Asset Condition Needs and Solution Guidance Document “to enable state and stakeholder discussion in March 2024.” The NETOs had recently noted in a Response to a September 14, 2023, Memorandum from the Consumer Advocates of New England that the Guidance Document “is slated to be provided to stakeholders no later than May 2024 (emphasis added).”

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Regional and National

NESCAUM releases Memorandum of Understanding (MOU) signed by nine states pledging to joint action to accelerate electrification as primary means of transition to building sector emission reduction

On February 7, 2024, the Northeast States for Coordinated Air Use Management (NESCAUM) issued a press release announcing that a Memorandum of Understanding (MOU) has been signed by the environmental agencies of the following states: California, Colorado, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, and Rhode Island. Under the MOU, all aforementioned states agreed to a shared goal in which heat pumps will meet 65% of residential-scale heating, air conditioning, and water heating shipments by 2030 and 90% by 2040. The MOU also furthers the U.S. Climate Alliance’s 2023 commitment to quadrupling the number of heat pump installations in the U.S. by 2030. Further key objectives of the MOU are outlined below (verbatim):

It is somewhat surprising that Vermont did not join the MOU, given that the State has legally enforceable greenhouse gas (GHG) emission targets, significant heat pump penetrations, and is considering the development of a Clean Heat Standard.  As discussed in NE Flash 79.7, Vermont passed the Vermont Global Warming Solutions Act of 2020 which requires state greenhouse gas emissions to be reduced by 40% by 2030 and 80% by 2050 compared to 1990 levels. Regarding the states that did participate, their participation is consistent with their economy-wide GHG reduction targets, as well as the strict sectoral sub-targets several of the participating states have (notably Massachusetts and New York).

Joint Federal-State Task Force on Electric Transmission to meet on February 28 to discuss transmission siting; FERC appoints Mary Throne to the Task Force to fill one-year vacancy

As discussed in NE Special Flash 23-50.2, on December 14, 2023, in Docket AD21-15, FERC issued a Notice, announcing a meeting of the Joint Federal-State Task Force on Electric Transmission, on February 28, 2024 at 1:30pm. On February 13, FERC posted an updated Notice of Meeting and Agenda. A publicly available webcast will be available the day of the meeting here. According to the agenda, the focus of the meeting is transmission siting, and includes two guest speakers from the U.S. Department of Energy’s Grid Deployment Office. FERC created the Task Force in June 2021 to explore topics related to transmission planning and to make recommendations regarding FERC’s transmission policies.

As discussed in NE Flash 23-2, the Task Force is made up of all of the FERC Commissioners (up to five but as discussed in this Flash Update there are currently only three) and ten state commissioners. On February 13, FERC posted an Order Listing New Member announcing that Chair Mary Throne of the Wyoming Public Service Commission will serve the remainder of her predecessor’s term. As discussed in NE Flash 24-5, the National Association of Regulatory Utility Commissioners nominated Mary Throne in January following the resignation of Chair Thad LeVar from the Utah Public Service Commission.

Virginia House and Senate each pass bills to expand Dominion community solar program, and create community solar program in Appalachian Power Company territory

On February 13, 2024, the House and Senate of the Virginia General Assembly, respectively, passed four community solar bills (i.e. each chamber passed two bills, both the companion bills for the bills passed by the other chamber). We last discussed each bill in NE Flash 24-4.

SB 253 – Shared Solar Programs; Amends Existing Program Provisions To Apply To Dominion Energy Virginia passed by a vote of 23-17. The companion House bill, HB 106, passed the House 24-44. Both bills were amended out of the committees of origin, and have identical language. If enacted as passed by the chambers amended, these bills would:

SB 255 Shared Solar Programs; SCC To Establish By Regulation passed by a vote of 21-16. The companion House bill, HB 108, passed the House 55-44.If enacted as passed by the chambers, this bills have identical language and would:

February 14 was the crossover day in the Virginia General Assembly, meaning all bills that have not passed on chamber are dead. Given that the House and Senate passed identical versions of the same bills, the change of passage in agreement by the other chamber is highly likely. However, given the close votes and largely partisan divide in the roll calls, it is likely that Governor Glenn Youngkin (R) would veto the bills, and a veto override would be unlikely.

Willie Phillips named new FERC chair; Comm. Allison Clements will not seek second term

On February 9, 2024, in a press release, the White House announced that President Joe Biden has appointed Willie Phillips to be the Chair of Federal Energy Regulatory Commission (FERC). Phillips has served as a FERC Commissioner since November 2021 and as an Acting Chair since January 2023. In addition  to Phillips, the current Commissioners include Allision Clements and Mark Christie.

According to Politico, Commissioner Clements will not seek a second term at FERC. Her last day would be June 30, 2024, but she could remain at FERC until the end of this Congressional session, which is expected to end on January 3, 2025. With three commissioners currently serving, FERC has the minimum quorum number for operating, but there could not be any tied votes, as actions require a majority of the up to five-member commission. It’s unclear when President Joe Biden may make additional FERC nominations. Nominations to FERC are overseen by the Senate Energy and Natural Resources Committee which is chaired by Joe Manchin (D-W.Va.). Manchin opposed former FERC Chairman Richard Glick’s efforts to consider climate change when accessing natural gas pipeline projects, leading to Glick’s departure. As a result, it’s widely believed that nominees with ambitious climate goals may face a difficult path to confirmation.

East Coast states, led by NYSERDA, issue RFP for Regional Fund Administrator for an Offshore Wind Fisheries Mitigation Fund; Round 1 applications due March 20

As discussed last in NE Flash 22-49, the eleven East Coast states of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Rhode Island, and Virginia have been collaborating to establish a “consistent regional approach” for administering financial compensation to fisheries impacted by offshore wind development. On February 9, 2024, on behalf of the group of states, the New York State Energy Research and Development Authority (NYSERDA) issued a Request for Proposals seeking a Regional Fund Administrator to design and develop the fund and related processes. Round 1 proposals are due March 20. Details on how to apply are available on NYSERDA’s RFP webpage.

The Special Initiative on Offshore Wind (SIOW) and Consensus Building Institute have been facilitating the states’ discussions on a regional approach to fisheries compensatory mitigation. Additional information is available on the SIOW website, including the Scoping Document  for the Fisheries Mitigation Project and a timeline of the efforts to date.

Eversource announces agreement to sell stakes in Revolution Wind and South Fork Wind to Global Infrastructure Partners

On February 13, 2024, Eversource Energy (Eversource) announced that it had executed an agreement to sell its 50% share in both the 132 MW South Fork Wind and 704 MW Revolution Wind offshore wind projects to Global Infrastructure Partners (GIP) for $1.1 billion. The projects had been joint ventures with Ørsted, who will retain its 50% ownership interests. According to the press release, the agreement allows Eversource to exit the projects while retaining cost sharing obligations for the construction of Revolution Wind. Eversource also signed an agreement with Ørsted in January to sell Ørsted its share of the 924 MW Sunrise Wind offshore wind project (also a joint venture), contingent on the project’s selection in New York’s fourth offshore wind solicitation. If Sunrise wind is not selected, then Ørsted and Eversource’s joint venture for the project will remain in place until the two companies evaluate next steps. Otherwise, the sale of Eversource’s stake in these three projects represents the Eversource’s exit from offshore wind. The deal is expected to close later this year.

PJM and NJBPU file State Agreement Approach 2.0 Study Agreement with FERC, beginning process to study additional offshore wind transmission procurement

On February 5, 2024, the New Jersey Board of Public Utilities (NJBPU) announced that PJM Interconnection LLC (PJM) had filed an executed State Agreement Approach (SAA) 2.0 Study Agreement between PJM and NJBPU with FERC. The Agreement allows New Jersey to initiate a PJM study and informational analysis to evaluate scenarios of the injection of an additional 3.5 GW of offshore wind into New Jersey. Following NJBPU review of the study, NJBPU will inform PJM of the actual amount and injection points of offshore wind interconnection that NJBPU would like included and considered in a competitive solicitation for transmission solutions. A February 6 PJM Transmission Expansion Advisory Committee presentation preliminarily indicates that the 2.0 Study will occur through June, and a competitive solicitation for transmission solutions may open in July. Selection of final solutions is anticipated in Q2 2025.

As discussed in NE Flash 22-43, on October 26, 2022, the NJBPU issued an Order selecting the Larrabee Tri-Collector Solution and supporting projects under the SAA 1.0 solicitation for offshore wind transmission solutions. As discussed in NE Flash 85.4, on November 18, 2020, New Jersey became the first state to seek implementation of the SAA when NJBPU issued an Order formally requesting that PJM integrate New Jersey’s offshore wind goal into the grid operator’s transmission planning process through the SAA approach, established by PJM under its FERC Order 1000 compliance. Under the SAA, states can work with PJM to identify the need for transmission improvements, and afterwards can formally request that PJM solicit transmission solutions to meet the identified need in its Regional Transmission Expansion Plan process.

Maryland Office of People’s Counsel tells FERC to reject PJM cost allocation proposal for $5 billion of transmission investments

On February 9, 2024, in FERC Docket ER24-843, the Maryland Office of People’s Counsel (OPC) filed a Protest and Comments urging FERC to reject PJM Interconnection’s proposed cost allocation for over $5 billion in transmission investments, or to require PJM to address the problems OPC outlined in its filing. In a press release, OPC called PJM’s proposal “fundamentally unfair to Maryland utility customers” because the proposed spending is primarily driven by the anticipated demand of 7.5 GW of new data center power demands in Virginia. OPC argued that the data center load growth is driven by Virginia public policy interventions, and consequently that PJM should have used the “multi-driver project” cost allocation methodology that assigns greater costs to the state with the policy that is driving the demand. OPC also argued that as proposed, Maryland ratepayers face the risk of paying “for expensive projects that were never needed” should the projected demand increases not come to fruition (such as the data centers not being built).

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The SEA Team


Sustainable Energy Advantage, LLC
John Keene - Senior Director
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