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Tuesday, March 27, 2012 10:38 AM

Localized Renewables

By: Elizabeth Cutright Comments

We’ve discussed many times before that when it comes to clean energy promotion and integration, the need for local control and funding is tantamount. After all, by now it’s pretty clear that—whether it’s due to politics, an ailing economy, or simply lack of will—neither congress nor the president are in any position to swoop in and save the day.

Which makes the new, “multi-faceted” energy bill currently under consideration in Massachusetts very interesting. Could it be a bell weather of things to come?

The bill, set for consideration by the Massachusetts senate, “requires competitive bidding for long-term renewable energy contracts that would require that utilities purchase at least 7% of their total power supply from renewable sources, up from the current 3%.”

Additional provisions include:

* A reduction of the guaranteed ROI from 4% to 1% in an attempt put an end to the “sweetheart” deals that sometimes undermine renewable energy funding protocols

* A more frequent review of utility rate requests and a 10-month review period (up from the current six-month timeframe)

* Separate rate increases exceeding 10% are now allowed to be spread out over a two-year period.

A provision added in a redraft of the bill also raises the cap on net metering so that consumers who generate their own renewable energy onsite can “receive credit for unused power generation that is returned to the grid.”

The purpose of the bill is to maintain Massachusetts’ position as a leader in renewable power generation, while at the same time updating the state’s 2008 BGreen Communities law (which many feel is the reason for Massachusetts’ clean energy success, but is also blamed for the costs related to renewable energy integration in the state).

“We believe these are common sense updates; they will continue to allow Massachusetts to be a leader in the clean energy industry while providing for increased competition accountability and transparency for ratepayers,” said Attorney General Martha Coakley at a news conference called by Senate leaders.

So what do you think? Is this Massachusetts bill a harbinger of things to come? States like California and Texas are already commanding their own renewable energy futures—how long before other states follow their lead? And can localized action coexist with federal support and oversight, or are the two entities destined to operate as independent, parallel universes?

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