Section IV:
Virtually every study report on climate change that has
been issued recently has pointed out the need to focus major effort on energy
efficiency. Substantially increasing
Maine’s energy efficiency in a variety of ways would provide a larger payback,
in both greenhouse gas emission reductions and dollars, than would any other
action we could take. Promoting energy
conservation will also reduce the environmental impacts of constructing new
wind power and other renewable energy facilities by reducing the number of
those facilities that we need.
On the source-abatement side of the greenhouse gas
equation (i.e., reducing our use of fossil fuels), wind power is a significant
potential source of renewable electricity generation in Maine, and therefore
should be pursued aggressively.
Increased energy efficiency and a greater reliance on renewables (on
wind, in particular) can both be accomplished in a relatively short period of
time. Together they would also increase
our energy security. Consequently,
policy makers should link the development of wind power and other renewables to
energy efficiency initiatives wherever possible in order to encourage both.
Additional benefits of wind power to Maine people that could
be created:
- Divide
the state into several “energy” regions and establish some fixed
percentage of Maine’s greenhouse gas reduction goals (38 MRSA § 576) that
will be achieved on a regional basis.
Allocate that percentage over all of the regions (most likely,
based on population). Provide
incentives to regions for achieving their allocation. Hosting new wind power and other
renewable energy facilities would be one of several ways for a region to
meet its allocation. [Other ways include getting towns in the region to
enroll in Cool Communities or other similar programs to reduce energy use,
improving public transportation in more urban areas, setting up
car-pooling opportunities, etc.]
Potential incentives for meeting a region’s allocation are described
below.
- Put
municipalities/unorganized townships that host commercial-scale wind power
at the top of the priority list for grants/loans for energy efficiency for
residences and businesses through Efficiency Maine or the Energy and
Carbon Savings Trust Fund. [Or
this could be an incentive in the “energy regions” program described
above.]
- Set up
an allowance retirement program under Maine’s RGGI statute. [States are permitted under the RGGI MOU
to set up allowance retirement programs, but Maine appears not to have
done so. The purpose of such a
program is to encourage ratepayers to voluntarily purchase qualified
renewable energy (including wind), knowing that their CO2 emissions will
be offset by the retirement of equivalent CO2 emission allowances from the
state’s emissions budget.] Add a
further incentive by giving those ratepayers priority for receiving energy
efficiency grants/loans through Efficiency Maine or the Energy and Carbon
Savings Trust Fund.
- Create
new, lower electricity rate classes for residences and businesses in
municipalities/unorganized townships that host commercial-scale wind
farms. [This would provide a financial benefit that
is directly related to hosting wind, as opposed to the property tax relief
that taxpayers experience as a result of other kinds of industrial/commercial
development. It would also benefit
renters.] These new rate classes
could be a stand-alone benefit in communities that host wind, or could be
provided as one of the incentives for meeting “energy regions” allocations
described above, if such a regional program were established.
- Explore
ways to make sure that Maine residences and businesses (individually or as
a group) are first in line for electricity contracts with wind power
generators. For instance, explore
ways to make wind generation contracts a preferred alternative for the
State’s standard offer. Or expand
on the concept described by Jack Cashman regarding the local business that
needed to reduce its energy costs to stay in business. [The latter could be an incentive in the
“energy regions” program described above.]
- For
Maine’s Indian tribes that are interested in hosting wind power, provide
them with assistance in resolving the legal and other questions that have
arisen in connection with the siting of wind on tribal land. [Tribes would benefit directly, through
lease payments, etc., if commercial-scale wind were sited on tribal
lands.]
- In the
Energy and Carbon Savings Trust statute (35-A MRSA §10008), explore
changing the apportionment between electricity and non-electricity energy
conservation programs in subsection (6)(B). Is 85% / 15% the right balance,
considering the fact that it is costing Maine consumers much more money
for the inefficient use of heating oil than for electricity?
Section V:
- Maine’s
congressional delegation definitely should be urged to aggressively seek
an extension of the Production Tax Credit.
- I
don’t see a need for wind Pine Tree Zones, especially if #1 is
successful. There is no shortage of
wind power developers attempting to site facilities in Maine.
- Siting
of transmission lines to areas suited for wind power is part of a much
larger and very complicated set of
energy issues at the PUC (Maine’s regulatory structure for electricity,
for instance). I don’t think
providing incentives will help sort these issues out.
Section VI:
- In
connection with the PUC’s study regarding alternatives to the status quo
regulatory structure for electricity in Maine, the Legislature should
adopt an alternative that encourages the development of wind and other
renewable energy resources and reduces Maine’s dependence on natural gas as
soon as possible.
- The
Legislature should establish and fund a permanent Office of Energy
Independence and Security. That
office should be designated as the lead agency for tracking wind power
generation in Maine, monitoring technological advances in wind power
generation, and providing educational materials regarding wind power.
- Maine should adopt a goal of at least
3000 MW of installed wind power by 2015.
