Small Steps on the Road to Bigger Energy and Emission Cuts

April 13, 2008 – Vol.13 No. 4

SMALL STEPS ON THE ROAD TO BIGGER ENERGY AND EMISSION CUTS.

Americans say they want change. But, in reality, they don’t want it all at once. Gradual change in fits and starts, bits and pieces seems more palatable.

The State of Maryland has effectively started to tackle its energy and, subsequently, its greenhouse gas emissions problems, by taking the piecemeal approach. The state has approved five measures, all of which together are a notable step forward.

The state has approved a goal of reducing per capita electricity consumption 15 percent by 2015 in legislation that amounts to an energy efficiency resource standard. In the law, EmPOWER Maryland, the state's electric utilities will be responsible for 10 percent of the savings by 2015. The state’s energy agency, the Maryland Energy Administration (MEA), is to oversee programs to meet the remaining 5 percent. EmPOWER is estimated to save Marylanders $5.7 billion (an average of $190 per household annually) and avoid the construction of at least three new power plants.

A second bill creates the Strategic Energy Investment Fund that will be supported by the proceeds of upcoming auctions of the state's carbon dioxide emission allowances. It will be administered by MEA. About half of this new fund, which is expected to reach $100 million or more per year, will be used on programs to reduce energy consumption, including by low- and moderate-income electric customers. The fund will also provide short term rate relief and long term investments in energy efficiency, renewable energy and climate change programs.

Further, the state’s General Assembly passed a green building bill that requires new state buildings and public schools to be energy-efficient and environmentally friendly in design and in the materials used in construction.

Another approved bill boosts the state's renewable portfolio standard to 20 percent by 2022 and finally legislation was approved to make solar and geothermal energy systems available to more Marylanders,

“There is no silver bullet that will solve all of Maryland’s energy problems. However, this ‘silver buckshot’ of measures will lower household bills, address Maryland's looming electricity shortage, and promote a cleaner, more sustainable energy supply," said Malcolm Woolf, Director of the Maryland Energy Administration. “We have neglected Maryland’s energy problems for too long and this legislative package will help ensure that we are prepared to meet our current challenges and any future challenges that may arise.”

“Among all the possible energy resources available to the state, energy efficiency is the least-cost and the quickest to deploy," commented Maggie Eldridge, the American Council for an Energy Efficient Economy’s State Team Leader. "By committing to investing in energy efficiency, Maryland can meet its future electricity needs while containing energy costs for the state's consumers. This legislation is an extremely smart investment for all Marylanders.”

An ACEEE analysis, published in February, shows that the benefits of energy efficiency include lower consumer electric bills, improved system reliability, significant job and economic development in the state, and reduced pollution.

“Our analysis of policy options available to Maryland identified potential net consumer electric bill savings of about $900 million and over 8,000 new instate jobs in 2015," said Eldridge. "The provisions included in this year's energy legislation and last year's appliance efficiency standards address about 90 percent of the efficiency savings that we identified.

Yet while energy efficiency and new renewables passed muster in the state house, some new renewables have been dealt a set back by the state. Governor Martin O’Malley has decided to ban the construction of wind turbines in Maryland state forests and parks.

The best wind resources are in the state’s forested mountains in the western part of the state and offshore. Much of the state has little wind resources.

Maryland typifies the immense problem of cutting energy consumption, cutting greenhouse gases and bringing renewable energy to the energy-hungry Mid-atlantic and Northeast Corridor of the US. The region from Virginia to Maine is heavily in built-up and heavily populated. Its infrastructure is old and tired. Hundreds of thousands if not millions of homes and commercial buildings are terribly energy inefficient. There are no vast unpopulated areas for wind farms. The coastline is dotted with residents not wanting wind turbines - still the best bang for the buck in renewable energy - in their offshore view. The cost of retrofitting homes and businesses for energy efficiency and the sacrifices needed to bring renewables is still too high for the wealthy region.

Change in energy consumption and reductions in greenhouse gases will come gradually. But gradual change in cutting greenhouse gases is unfortunately not quick enough. State lawmakers will continue to revisit the issue as soon as the public and the state’s businesses digest this first round of legislation.

Links:

Maryland Energy Administration (MEA)

http://energy.maryland.gov

American Council for an Energy Efficient Economy (ACEEE):

"Energy Efficiency: The First Fuel for a Clean Energy Future – Resources for Meeting Maryland's Electricity Needs"

http://aceee.org/pubs/e082.htm