Progress on CCE program guidelines

Update: The City of Boston reports that it has submitted its CCE plan to the DPU on June 20!

At the May 30th meeting of the Community Choice Energy (CCE) Working Group, the City of Boston reported that it is still waiting for the state Department of Energy Resources (DOER) to authorize the City to submit its CCE plan to the Department of Public Utilities (DPU). The City anticipated a quick turn-around with DOER, and had not been asked for any additional materials beyond the draft plan it submitted to DOER weeks ago. The City hoped to have its plan approved by DPU in time to make its first foray into the electricity market in January. That timeline now seems doubtful with the delay at DOER and DPU’s expectation that it will need as much as 8 months or more to review Boston’s plan. Eversource is also lobbying for a later start date so that it might have more time to prepare the data transfer to Boston.

Also on May 30th, BostonCAN and other working group participants dove deep into the Values and Principles statement that will guide decision-making as the program details are spelled out and the plan is implemented. In addition to the three values presented for discussion: additionality, preference for local generation, and affordability, the discussion generated 4 additional principles. BostonCAN led the drafting of language codifying a goal of rapid greenhouse gas reduction through CCE’s green power purchases. We also proposed a new principle that residents of Boston’s environmental justice (EJ) neighborhoods should have priority access to those jobs created by CCE. Our Green Justice Coalition allies Youth on Board (YOB) raised the important question of how “affordability” would be defined. YOB also put forward an idea to help make the green electricity even more affordable for low-income residents: a voluntary extra payment option for those who can afford more. We were just beginning to discuss a fourth new principle (meaningful engagement of residents of EJ neighborhoods in the details of the plan design) when the meeting had to end.

Due to the fruitful discussion, City staff announced that they would convene an additional working group session in July to finalize the Principles and Values document. We are excited to have this additional opportunity to work with the City and allies to craft this important document which will guide this program for years to come.

Tough Nut to Crack: Reducing Emissions from Boston’s Existing Buildings

After a thorough process of research and deliberation, BostonCAN is excited to announce the focus of our next campaign: winning policy change to accelerate the conversion of Boston’s existing 86,000 buildings to clean energy for heat, cooling, lights, and all their energy needs.

Powering our homes and businesses with fossil fuels accounts for about 70% of our collective greenhouse gas emissions. The Carbon Free Boston report calls for “deep energy retrofits” within 30 years of all existing buildings in the city: installing deeper insulation in walls and roofs with heating and cooling supplied by highly efficient electrical heat pumps. As our grid becomes steadily greener, these heat pump systems will be responsible for fewer and fewer greenhouse gas emissions.

Our top near-term goal is to strengthen the energy efficiency of  Boston’s largest buildings. Less than 3% of Boston’s buildings account for more than half of all greenhouse gas emissions from buildings. These largest buildings are already regulated by Boston’s Building Energy Reporting and Disclosure Ordinance (BERDO), which covers all buildings of 35,000 square feet and larger. Adding stronger enforcement mechanisms to BERDO will lead property owners to transition more quickly to cleaner energy. More retrofits will also lead to more jobs for Boston residents, as well as cleaner air, soil and water as we reduce our need to transport and combust fossil fuels.

Retrofitting existing buildings is one of the four top priorities that Boston has chosen for the update of its Climate Action Plan. Carbon Free Boston emphasized the importance of reducing carbon use in existing buildings, especially since “85 percent of projected building square footage in Boston in 2050 exists today.”

The goal is challenging. Many Boston buildings face barriers to even basic levels of insulation, let alone the deep energy retrofits they will need. Judy Kolligian, a BostonCAN member and landlord, has already upgraded heating systems for her own and her tenants’ apartments. “I’ve been improving my building as quickly as I learn how to, but my home has asbestos siding and my tenants’ has asphalt siding. I need the City and Mass Save to figure out more cost-effective ways to insulate buildings like these.”

BsotonCAN invites you to join our “Green Buildings, Not Greenhouse Gases” campaign, working with allies and city leaders to find urgent, equitable, and affordable solutions for retrofitting all buildings, from triple-deckers like Judy’s to the biggest buildings in the city.

Castle_Square_2

Pictured above is the deep energy retrofit in process in 2012, at Castle Square Apartments in Boston.

CCE Working Group Explores Green Energy Sourcing Alternatives

BostonCAN is a member of the Municipal Aggregation Working Group that the City’s Environment Department has formed to help ensure that Boston’s Community Choice Energy (CCE) program reflects community priorities. (Note: Municipal aggregation is the legal term for CCE.) Working group members represent City departments and other stakeholder organizations. Monthly meetings began last December and have served to educate the group about different aspects of aggregation design. The February 28 meeting addressed alternative ways that a program can acquire green energy. Guest speakers Megan Shaw from the Cambridge Energy Alliance and Ann Berwick from the City of Newton each described the option that her municipality chose.

Newton’s program goes live this month with a 22-month contract. The program gets green energy by purchasing Class I RECs. A REC (Renewable Energy Certificate) is earned by a renewable energy producer (for example, a solar or wind farm) for each 1,000 kilowatt hours that it generates. RECs are sold on an open market. When people (including aggregations) buy RECs, they help to repay up-front costs for existing renewable projects and to encourage investment in new ones. Class I RECs are for energy produced in New England, New York, or parts of Canada, where they help to green our regional grid and to create local jobs. Newton’s default offering is 60% green (46% more than the current state requirement, or RPS, of 14%). Newton customers may also opt up to 100% green or down to the RPS level.

Cambridge’s second CCE contract started last November. The previous 18-month contract relied on RECs, prioritizing new-vintage solar RECs (SRECs) in order to incentivize local solar development. When the incentive fell short of its goal, Cambridge designed its current, 24-month contract with an “operational adder” (customer surcharge) that will be used to finance a new, City-owned solar project. Cambridge’s program has an opt-up to 100%; these customers pay for Class I RECs in addition to the adder. The program is currently collecting more money than it can use, and the City is considering different options, such as adding battery storage.

Because recent market prices for electricity have been low, Newton and Cambridge now offer their customers both greener energy and lower prices compared to Eversource. However, prices fluctuate, and Berwick said that Newton was careful never to promise its customers cost savings. Alternative ways to set prices for an aggregation will be the topic of the next working group meeting.

In later meetings, the working group will set priorities for Boston’s CCE program and discuss what design alternatives support those priorities best. To help members prepare, the City provided the following questions about green energy sourcing alternatives:

  • Do we want to use RECS, direct investment in new renewables, or some combination of both?
  • If RECs, do we want to buy a fixed percentage above RPS or a varying percentage based on energy prices? In either case, what’s our target amount of renewables?
  • What types of RECs and/or renewable projects do we want to prioritize?
  • How might we want to change the aggregation over time and in response to new circumstances?
  • Do we want opt-up or opt-down options, and if so, what should these entail?

What do you think? BostonCAN represents its members at the working group, and we need to hear from you to do a good job. Send us a message at BostonClimateAction@gmail.com or at Facebook.com/BostonCAN with your opinions and questions.

Check out the City’s new CCE website for the latest progress indicators.

progress graphic

 

Giving Thanks: Progress Party for CCE Allies

Several dozen climate hawks, including three official representatives of the City of Boston, attended a joyous CCE Progress Party on Nov. 12 at Democracy Brewing in downtown Boston. City Councilors Matt O’Malley and Michelle Wu and the city’s Chief of Environment, Energy, and Open Space, Chris Cook, thanked all the groups that helped push the Walsh administration to adopt our plan to make renewable energy more accessible to all Boston residents through Community Choice Energy.

Chief Cook reported that the Environment Department has concluded interviews with potential consultants to manage the planning and implementation of the CCE program, also known as green municipal aggregation. Councilor Wu pointed out the CCE is a counterweight to the doom and gloom of climate science, noting the opportunity within this crisis. “The steps that we have to take to make this transition to a fossil-free future successful are the only chance that we have to, not only think about the planet and green energy, but also to reduce income inequality and empower our communities.”

Many thanks to the groups that sent representatives, including Boston Student Advisory Council, Community Labor United, Eastie Farm, Greening Rozzie, Sierra Club, Mothers Out Front, 350 Boston Node, and the many other allies who attended. As Councilor O’Malley noted, there’s still much to do before we actually have a default electricity service that offers more renewables than is required by law. And Khalida Smalls pointed out, CCE is just one step to the sustainable and equitable society. We are committed to building climate justice every day and every way we can.

Carbon Free Boston Review – Electricity

Carbon Free Boston (CFB) is the city’s initiative to reach carbon neutrality by the year 2050. For about a year, CFB researchers have been studying the pros and cons of different paths to that goal. Their report, due out later this fall, will estimate the amount of carbon reduction, the cost, and the environmental justice impacts of many potential ways to reduce greenhouse gas emissions. The city will use this information to prioritize the best strategies.

In June, CFB posted a preliminary report listing some of the options under consideration. Using this document and other information sources, BostonCAN has been familiarizing itself with potential strategies in the energy, transportation, and buildings sectors. Our purpose has not been to draw conclusions ahead of the research results, but to understand the choices and related issues so that we are prepared to respond after the report is released. Three of our Action Team meetings this fall feature presentations on carbon policy. The first of these, on the energy sector, was delivered on September 27 and is summarized below.

By the “energy” sector, CFB means activities involved in the production of electricity. Options under study for this sector fall into four categories: district energy policy, gas policy, in-boundary renewable energy policy, and out-of-boundary renewable energy credit and purchase.

A district energy system provides power efficiently to a group of buildings. An example is the Medical Area Total Energy Plant (MATEP) in the Longwood Medical Area of Boston. Types of district energy systems include microgrids (small electric grids that can connect to the regional grid or operate independently), combined heat and power systems (where heat generated as a byproduct of electricity is captured to warm buildings), and trigeneration systems (which produce electricity, heating, and cooling). Potential policy options include building more district systems, forcing the retirement of ones that run on fossil fuel, and reducing related regulatory barriers.

CFB’s preliminary report raised only two gas policy options: renewable gas supply and natural gas leak mitigation. “Renewable” gas refers to hydrogen and biogas. They are “renewable” in the sense that we can produce more, but they still emit greenhouse gases. Natural gas leaks are problematic because they waste resources, release the greenhouse gas methane into the air, poison plants and animals, and increase the risk of explosions.

In-boundary renewable energy refers to “green” electricity that is generated within Boston. In an urban setting, the most practical source is solar panels. Two ways the city could bring more solar to Boston would be to mandate or incentivize building owners to install it or to put it on municipal buildings.

A related option is to address the net metering cap, a state policy that currently inhibits the development of large solar projects. Under net metering, solar owners receive credits on their electric bills whenever they are producing more power than they are using (picture a sunny day with few appliances turned on). Net metering helps shorten the payback period for solar. If an owner runs a negative balance, the excess credit can be applied to another electric account. However, Massachusetts limits (caps) the amount each electric company has to pay for net metering. While most residential installations are small enough to qualify for net metering despite the cap, new larger arrays are ineligible once the cap is reached. An example of how this discourages larger projects is the experience of Bethel AME Church in Jamaica Plain. They planned to put many solar panels on their church and assign the excess power to congregation members. However, they had to settle for a smaller system than they wanted because of the cap.

Out-of-boundary renewable energy is “green” power that is generated outside of Boston for the benefit of Boston users. There are several ways that people can get renewable energy without buying the generators that produce it (e.g., solar panels, wind turbines, or hydroelectric plants).

  • Community-owned renewable power means that a group of people own a “green” generator together. Community-owned renewable power can be located in- or out-of-boundary.
  • Power purchase agreements (PPAs) and Renewable Energy Certificates (RECs) are two ways of having green energy without buying or chipping in for the equipment. PPAs and RECs differ because the price of renewable energy is split into two parts: the actual energy, and the fact it is renewable. In a PPA, people buy the electricity itself from a renewable source. RECs are documentation proving that the owner of a “green” generator has produced a certain amount of renewable energy. When people buy RECs, they get the right to say that they are using green energy even though their power really comes from the grid, because they are providing financial support for renewables.
  • Carbon offsets allow an entity (usually a business or government) to pay another entity for the right to claim an amount of carbon reduction actually achieved by the second party. For example, if Boston and another city both have carbon reduction targets, and Boston is falling behind while the other city is ahead, Boston can buy carbon offsets from the other city. Offsets are intended to allow for the fact that some entities have more barriers to carbon reduction than others.
  • Providing clean power purchasing options to consumers is another thing that a city can do. Boston’s forthcoming Community Choice Energy program is an example.
  • The city could also provide financial incentives for on-site and off-site renewable generation. This could take several forms, including lower property or sales taxes.

 

 

In the days to follow, we will publish summaries of BostonCAN’s presentations on CFB options in the transportation and buildings sectors. Stay tuned!

Green Power for Everyone in Boston

Join us December 8 to bring renewable power to everyone in Boston!

People want green energy, and there is a simple way for everyone to get it. Massachusetts law allows a city council to decide that all the electric customers in the city will get some of their power from clean, fossil fuel-free sources. That means everyone in Boston can get renewable electricity, even if they can’t put a solar panel on their roof or switch to wind power. And it means we’ll cut Boston’s greenhouse gas emissions – fast.(If a resident or business wants to opt out, they can.)

We just have to convince the City Council to vote “yes” for climate justice and clean energy. We’ll launch this new campaign on Thursday evening December 8, place to be announced. Save the date and pitch in!

Our Action Team meets next Thursday
October 27, 5:30 at First Baptist Church in Jamaica Plain (corner of Centre and Green/Myrtle Street, across from the post office). Join us for updates and action steps on the new clean energy campaign, our ongoing gas leaks campaign, and more.