Environmental agencies in nine states will work together to reduce planet-warming carbon emissions by making electric heat pumps the norm for most new home HVAC equipment sales by 2040. 

The memorandum of understanding, spearheaded by the inter-agency nonprofit Northeast States for Coordinated Air Use Management, or NESCAUM, was released today and signed by officials in California, Colorado, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon and Rhode Island. 

While it is not legally binding and does not commit particular funding, the agreement calls for heat pumps to make up 90% of residential heating, air conditioning and water heating sales in these states by 2040. 

An interim goal of 65% by 2030 is based on last fall’s target from the U.S. Climate Alliance, a group of 25 governors, to quadruple their states’ heat pump installations to 20 million in the same timeframe. 

The residential sector is one of the top two or three contributors to greenhouse gas emissions in most of the East Coast states signing on to the agreement, driven in part by cold climates and a heavy reliance on oil and gas for home heating. Residential emissions rank far lower in the Western states participating.

In a press release, NESCAUM emphasized the harmful smog, haze and ozone driven by nitrogen oxide and particulate emissions from fossil fuel combustion, calling buildings “a hidden source of air pollution.” 

Senior policy advisor Emily Levin said states must move quickly to help residents replace these fossil-fired HVAC and water heating systems with heat pumps in time to limit the harms of global warming. 

“You may only have one more crack at these buildings between now and 2050, because these are long-lived pieces of equipment — they can last 10 or 20 years,” she said. “So we really can’t miss our opportunity.” 

Clear market signals

Matt Casale, senior manager of market transformation with the Building Decarbonization Coalition, said the new agreement’s market-share approach adds specificity to how states will meet existing, number-based goals for heat pump installations. 

“The idea is to send a clear signal to the market that heat pumps are the future of home heating and cooling, while reflecting the urgency with which we need to act to meet GHG emissions reduction targets,” he said. 

Manufacturers have called for this kind of “long-term signal,” said Levin — “they need to plan, they need to make significant investments.” She said agreements like this show companies that “this is the direction we need to go in” and that state governments are committed to helping make the transition happen.

“Greater demand for heat pumps will also put pressure on installers,” Casale added. “We will need policies that both grow and further develop the workforce. The MOU is a great opportunity to bring them in more directly, learn from them, and talk about their needs.” 

Under the new agreement, participating states will “collaborate to collect market data, track progress, and develop an action plan within a year to support the widespread electrification of residential buildings,” according to NESCAUM.

Afton Vigue, a spokesperson for the Maine Governor’s Energy Office, said taking advantage of consolidated industry data will help prevent another new reporting requirement for participating states and will help align with varying state metrics.

The states’ forthcoming action plan is expected to include emphasis on workforce development and supply chain constraints, which have tempered otherwise strong heat pump progress in states like Maine. 

“It really does focus on that element of driving the market and collaborating with manufacturers,” Levin said. “Right now, states don’t really necessarily know … how their heat pump market is developing. Creating systems to bring visibility to that, provide insights into that … it’s a really important element.” 

The agreement tees up annual reports on each state’s progress toward the 2030 and 2040 goals, and schedules a 2028 check-in about any necessary adjustments. 

Collaborative tools for affordability and access

“A greater focus on consumer education, workforce development, and affordability will be critical to the success of the transition,” said Casale. “This means getting the most out of the Inflation Reduction Act and other incentive programs, but we also need to answer the questions of how this solution best serves multi-family buildings, renters and others for whom purchasing a new system isn’t entirely within their control.” 

In the agreement, the states pledge to put at least 40% of energy efficiency and electrification investments toward disadvantaged communities — those facing high energy cost burdens or disproportionate pollution — in line with the federal Justice40 program, which underlies similar rules for the IRA.

Working through NESCAUM and other existing groups, the participating states will brainstorm tools for reaching these goals, potentially including funding for whole-home retrofits, building code enforcement and other uniform standards, data collection, research projects, use of federal resources and more. 

“It’s going to look a little different in every state,” Levin said. “But they’re committing to collaborate and to advance a set of policies and programs that work for their state to accomplish those broader goals.”

This could include adapting or building on each other’s approaches. Levin highlighted Maine and California as having successful models for consumer outreach and heat pump market coordination, and said Maryland has shown strong impact and ambition around clean building performance standards. 

Maine, which relies more on heating oil than any other state, is among the participants with existing heat pump goals in their climate plans. The state surpassed an initial target — 100,000 installations by 2025 — last year, and now aims to install 175,000 more heat pumps by 2027. 

Officials in Maine have said that heating oil use appears to be slowly falling in concert with increasing use of electricity for home heat. Vigue said the new agreement lines up with existing state goals and will help Maine “bolster our ongoing collaboration with other states, share experiences, and see where gaps may exist.” 

Nine states pledge to boost heat pumps to 90% of home equipment sales by 2040 is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Reprinted from E&E News with permission from POLITICO, LLC. Copyright 2023. E&E News provides essential news for energy and environment professionals. 

The operator of New England’s power grid should establish a new position to engage with low-income and minority communities unfairly burdened by pollution, five Northeast states said last week.

Such a role could serve as a “critical bridge” between ISO New England and the communities it serves as the Northeast looks to transition to cleaner energy resources, officials from Massachusetts, Vermont, Rhode Island, Maine and Connecticut said in a letter to the nonprofit grid operator. ISO New England oversees the flow of power in those states and in New Hampshire.

The independent system operator, or ISO, would be the first regional grid operator to establish an executive-level position focused on environmental justice, or the notion that no one should be subject to disproportionate and excessive pollution. The role could be carved out in the grid operator’s budget plan, according to the letter.

“We encourage ISO-NE to be first in this critical area,” state officials said in their letter.

As it evaluates the states’ request, ISO New England has added a “placeholder” in its 2024 budget proposal for an environmental justice position, grid operator spokesperson Mary Cate Mannion said in an email Friday. The grid operator, whose mission is primarily to ensure electric reliability, is eager to continue discussing environmental justice issues with the states, Mannion added.

“The ISO has been actively engaged in developing cost-effective and efficient solutions to ensure a clean and reliable energy future and [is] currently working on several initiatives to facilitate wholesale market participation and delivery of clean energy across the region,” Mannion said in an email.

While ISO New England does not permit or site energy infrastructure, it plays a role in planning where new transmission projects are developed. It also sets rules geared toward promoting reliable and affordable electricity that can influence what types of energy resources are built.

A senior environmental justice official at ISO New England could advise the organization’s board of directors on how its own rules and policies affect historically disadvantaged communities, the states said. The position could also help build relationships with those communities, officials suggested.

“As community engagement and responsibilities grow, this executive position could build out and manage additional team members providing EJ expertise to ISO-NE and enhancing community, government, and industry engagement,” state officials continued.

Signers of the letter include James Van Nostrand, chair of the Massachusetts Department of Public Utilities; Anthony Roisman, chair of the Vermont Public Utility Commission; Katie Dykes, commissioner at the Connecticut Department of Energy and Environmental Protection; Christopher Kearns, acting commissioner in the Rhode Island Office of Energy Resources; and Phil Bartlett, chair of the Maine Public Utilities Commission.

Phelps Turner, a senior attorney at the Maine-based Conservation Law Foundation, said that adding an environmental justice perspective to ISO New England’s senior leadership could have implications for electricity costs and the future energy resource mix.

Last year, 45 percent of the energy produced for electricity in the regional grid came from natural gas, according to the grid operator. All of the states signing the letter want to significantly expand renewable energy in New England and reduce the use of fossil fuels for electricity.

“Disproportionate air quality, environmental and human health impacts on low-income communities and communities of color often stem from our over-reliance in the region on fossil fuel-powered generation,” said Turner, who supports the states’ request for an environmental justice role.

“When the market design, as it has, favors fossil fuel generation and fails to create a level playing field for renewable generation, there are negative air quality impacts and resulting negative human health impacts on [nearby] populations,” Turner said.

ISO New England says it is committed to working with the states to meet their clean energy goals and integrate more solar and wind into the energy resource mix. It has also agreed to work with New England states in a joint effort with New Jersey and New York to identify transmission solutions for offshore wind projects.

Northeast grid operator weighs first environmental justice position is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

A freshman lawmaker in Rhode Island has opened a provocative discussion: why not mandate solar panels on most new construction? 

Rep. Jennifer Boylan, a Democrat who has solar panels on her home in Barrington, said she sees every instance in which a new building goes up without solar panels as “a missed opportunity.” 

So she drafted a bill that would require all new single-family dwellings in the state to have a solar energy system large enough to meet at least 80% of the dwelling’s estimated annual average electricity use. The mandate would also apply to multifamily dwellings and commercial buildings up to 10 stories high. 

In addition, all new outdoor parking lots larger than 16,000 square feet would be required to install raised solar canopies over at least half of their surface. Five percent of spaces would have electric vehicle charging stations. 

“The time has come to start having conversations about building things with solar from the get-go instead of as an afterthought,” Boylan said during a public hearing on the bill last week before the House Committee on Corporations.

California is the only state that has a solar mandate on new construction. The California Energy Commission approved requirements for solar on new single-family homes and multifamily dwellings up to three stories high as of 2020. This year, additional provisions went into effect requiring solar power and battery storage in many new commercial structures and high-rise residential buildings. 

“It’s been incredibly effective,” said Ben Davis, a policy associate with the California Solar and Storage Association. “I live in a neighborhood with a ton of new construction. Every single building has solar on it, which is fantastic to see. The buildings are designed with solar in mind, so there’s a cost savings for permitting, and you don’t need to do any rewiring.” 

Several states are now considering following California’s lead. Solar mandate legislation is pending in Massachusetts; Boylan said she borrowed heavily from that bill for her draft.

And in New Mexico, a bill to require home builders to offer buyers installed solar in new construction has passed the Senate and is awaiting a vote in the House.

“Building all new homes with enough solar capacity to meet their electricity needs will be a key part of America reaching 100% clean, renewable energy,” said Johanna Neumann, senior director of clean energy programs for Environment America. 

Research conducted by that organization in 2018 concluded that installing solar panels on all new homes in the U.S. from 2020 to 2026 would result in more solar energy capacity than the entire country installed in 2020, Neuman said.

The report broke down the projected gains by state. Putting solar on all new homes in Rhode Island from 2020 to 2045 would give the state an estimated 255 megawatts of additional solar energy. The state had almost 600 megawatts of installed solar capacity as of last year, according to the U.S. Energy Information Association.

‘I don’t want solar panels on my house’

Over the last few years, Rhode Island towns have issued around 1,400 building permits annually for single-family and multifamily homes, according to U.S. Census data.

But during last week’s public hearing, committee member Rep. Brian Newberry, a Republican representing Burrillville and North Smithfield, questioned whether it is wise to add to the cost of a new home by mandating solar, given how high home prices are already. He cited an estimate from the California Energy Commission that the mandate added between $8,000 and $10,000 to the cost of a new home there. 

In addition, he said, it should be a matter of personal choice. 

“A lot of people might not want solar on their house,” he said. “I don’t want solar panels on my house.”

Boylan acknowledged the upfront cost, but said the system pays for itself over time in reduced energy costs. She said she recouped the cost of the solar panels on her home in seven years.

The California Energy Commission has projected that the upfront cost of solar on a new home is more than offset by about $19,000 in energy savings over a 30-year period. The cost of electricity in Rhode Island is slightly less than in California but still comparable.

The Rhode Island Builders Association also opposes a mandate. 

“There are a lot of ideas on how to remove carbon-based energy from homes, and the issue is much more complex than mandating a particular solution over others,” said John Marcantonio, the association’s chief executive officer.

The legislation does allow for some exceptions. Properties may be exempted if a developer establishes that there is “no practical way” to design the home or project to accommodate solar. And the bill says they are not required to remove trees in order to comply.

An exemption would also apply if the developer showed that a substitute renewable energy system would be installed at the time of construction.

And affordable housing developments would be exempt if developers could not find a “viable source” to fund the inclusion of solar. 

Sue AnderBois, climate and energy program manager for the Rhode Island Nature Conservancy, testified in support of the bill.

“Renewable-ready construction just makes sense if we know we need to move to a clean energy future,” she said. 

Rhode Island has a track record when it comes to requiring energy-efficient construction. Last year, lawmakers expanded the state’s 2009 Green Buildings Act, which now requires that all state and municipal buildings larger than 10,000 square feet must be LEED certified. However, the State Energy Conservation Code for building construction still references the 2015 International Energy Conservation Code, not the most up-to-date version, according to ACEEE.

Boylan said she expects that the possible adoption of a solar mandate will require a lot of input from a host of stakeholders. Her intent was to get that conversation going.

“I see this as a multiple-year effort,” she said. “This is year one.”

Rhode Island lawmaker wants to require solar on new homes and parking lots is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Rhode Island’s top utility regulator says a statewide moratorium on new gas hookups is on the table as the state works to meet its ambitious climate goals.

“That doesn’t mean it happens tomorrow,” said Ronald Gerwatowski, chair of the Rhode Island Public Utilities Commission, during a proceeding Thursday. “But it surely begs us all to ask the question: If not tomorrow, then when?”

Gerwatowski’s comments came as the commission held its first technical conference in its investigation into the future of natural gas.  

A wide-ranging discussion followed about the many challenges and conundrums facing the commission in the so-called “Future of Gas” docket. Regulators opened the investigation in response to the passage of the state Act on Climate, which includes a mandate to zero out greenhouse gas emissions by 2050. 

Building emissions, including those that result from the use of natural gas, account for about 35% of the state’s total emissions. The commission regulates the gas distribution system, which is operated by Rhode Island Energy.

The purpose of the first proceeding was “to prepare the commission to make big and ambitious decisions,” said commissioner Abigail Anthony.

The breadth of the challenge ahead was laid out by Rhode Island Energy executives, who provided a factual representation of the state’s gas distribution system. The company has more than 273,000 residential, commercial and industrial gas customers served by some 3,200 miles of gas distribution main, said Michele Leone, vice president of gas.

Through the company’s ongoing pipeline replacement program, 60 to 65 miles of gas main are replaced every year, she said. About half of the mains have been replaced with less leak-prone pipes so far. 

Whether or not to continue that program is a particularly vexing question for the commission, Gerwatowski said. Replacing leak-prone pipes is both a safety issue and an environmental issue, he said. Right now, those infrastructure investments are factored into the rate base and are depreciated over 40 years, a timeline that is now far too long. 

“We could depreciate it more quickly, but that has an impact on rates. So what do we do here?” Gerwatowski said. “Do we stop the program on the assumption we’re going to close the system down,” allowing for some continued methane leaks? 

Or, he said, do they allow the program to continue, and then likely face lawsuits over who should be responsible for the stranded costs once the assets are no longer in use?

Ben Butterworth, director of climate, energy and equity analysis at the Acadia Center, said in response that the commission must prioritize safety above all else first, but could perhaps investigate ways to repair pipes rather than replace them. That would reduce costs and the time period over which the utility is spreading those costs.

“That’s why it’s essential to determine a plan as soon as possible for the future vision of the gas system,” Butterworth said. “It might make sense to do it on a case-by-case basis.”  

When it comes to transitioning from the use of natural gas, the state will need to find pathways “that ensure safety and reliability, equity, and affordability,” said Dan Aas, director at E3, an energy consulting firm representing Rhode Island Energy. 

He recommended a “portfolio-based” approach that might include a combination of air-source heat pumps, hybrid electrification, renewable natural gas, and geothermal. 

He noted that in California, Pacific Gas and Electric is experimenting with targeted electrification, in which they target for electrification a small cluster of customers on a segment of the distribution system that is costly to maintain. 

But the prospect of converting hundreds of thousands of residential customers to air-source heat pumps poses another daunting question, Gerwatowski said. 

“There’s a huge upfront funding cost — where does the funding come from?” he said.

The commission also heard from speakers representing consumer perspectives. Chelsea Siefert, director of planning and development for the Quonset Development Corp., a 3,200-acre business park in North Kingstown with more than 220 companies, urged regulators to consider the impacts of phasing out natural gas on industrial manufacturers. 

For example, she said, burning natural gas generates the high temperatures Toray Plastics requires to convert plastic pellets into plastic film. Toray employs about 600 people at its Quonset facility. 

And Jennifer Wood, executive director of the Center for Justice, which represents low-income utility consumers, called on the commission to prioritize any electrification efforts in the neighborhoods that have been impacted by fossil-fuel pollution for generations due to redlining and other discriminatory lending practices.

In the city of Providence, those old redlined areas now coincide with areas with the highest poverty rates and incidences of childhood asthma, she said. 

“The remedies for meeting the goals of the Act on Climate should be targeted to the neighborhoods that have been the most adversely impacted along the way,” Wood said.

As the next step in the process, the commission will issue an invitation for interested parties to apply to join a stakeholder committee. The committee’s first meeting will likely be next month, said Todd Bianco, chief economic and policy analyst. The overall goal is to have a report with recommendations to the commission by next spring, he said. 

Rhode Island climate goals may require statewide ban on new gas hookups is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Taking its cues from a successful program in Connecticut, Rhode Island is poised to launch a new initiative to deploy solar and reduce electricity costs in homes owned by low- to moderate-income residents. 

The Rhode Island Commerce Corporation recently issued a request for proposals from solar companies interested in partnering on the initiative, called Affordable Solar Access Pathways. The program will offer affordable leases for solar equipment on homes owned by residents with incomes less than or equal to 80% of the area median income. That’s a maximum of $65,460 annually for a family of four, or $44,512 for a two-person household. 

“There will be no money down and net savings from day one,” said Vero Bourg-Meyer, project director at the Clean Energy States Alliance, or CESA, which collaborated with the Commerce Corporation to develop the program. 

The homes must be located in environmental justice areas, as defined by the state Department of Environmental Management. Those areas are primarily in and around the cities of Providence, Pawtucket, Woonsocket and Newport.   

That will enable the program to take advantage of the new environmental justice adders to the Investment Tax Credit passed as part of the Inflation Reduction Act. Those adders will allow solar system owners to qualify for a higher tax credit when homes are located in census tracts designated as environmental focus areas, Bourg-Meyer said. 

CESA has been working to persuade states to develop more-inclusive solar programs by promoting Connecticut’s Solar for All program as a model. Under that program, the Connecticut Green Bank paid incentives to a solar company, Posigen, which was then able to offer a reduced price to customers for a 20-year rooftop solar lease.

The program helped drive a 185% increase in solar in low- to moderate-income communities in Connecticut between 2015 and 2018, according to a 2020 white paper.

Third-party ownership of the solar equipment was a critical aspect of that program’s success, Bourg-Meyer said, since lower-income customers are less likely to be able to obtain or afford financing.

Another key aspect was the program’s community-based marketing — “having neighbors speak to other neighbors about it,” she said. 

Rhode Island’s program will be administered through the commerce agency’s Renewable Energy Fund, which will provide an initial $1 million in funding, in collaboration with the state Office of Energy Resources.

It’s not clear how many homes that $1 million will cover, as it will depend on how the program’s solar partner designs its program and incentives, said Shauna Beland, administrator of renewable energy programs at the energy office. 

“The more creative they get the better,” she said.

There are no funds available to help out homeowners who need roof repairs in order to accommodate solar panels. But it’s possible that the solar installer will work with a roofing contractor and wrap those costs into the lease, something that is fairly common in Rhode Island, said Karen Stewart, manager of the Renewable Energy Fund.

The program should launch this spring.

Hawaii launched a solar program for low- to moderate-income homeowners last year, and Virginia is working on it, Bourg-Meyer said, adding, “it’s something that’s percolating across the country.”

Numerous studies have found widespread inequities in solar adoption across the country. However, a 2020 report from Lawrence Berkeley National Laboratory concluded that those disparities are gradually diminishing, with several states, including Connecticut, even demonstrating income parity between solar adopters and the broader population.

Solar program aims to cut energy costs for lower-income Rhode Island residents is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.