The following remark was written by Todd Olinsky-Paul, senior venture director at Clean Energy Group in Montpelier, Vermont. See our commenting pointers for extra info.
Over the previous decade, Massachusetts has grow to be a nationwide chief in power conservation coverage and packages, adopting an formidable power conservation procurement goal and launching a number of groundbreaking packages designed to offer incentives and revenue alternative for power storage house owners. At the identical time, Massachusetts has additionally adopted sturdy commitments to wash power fairness: for instance, the 2016 Affordable Access to Clean and Efficient Energy Initiative and the 2022 Massachusetts Clean Energy and Climate Plan for 2025 and 2030, which states, “Thoughtful insurance policies and cautious program design are important to make sure that all Massachusetts residents can absolutely entry and take part within the transition to a low-carbon economic system…. The variations in revenue stage, location, English proficiency, and previous marginalization shouldn’t stop equitable entry and distribution of transition advantages.
A brand new report by the Clean Energy Group (CEG) asks the query: are Massachusetts’ power conservation packages, superior as they’re, fulfilling the Commonwealth’s clear power fairness commitments?
This is an applicable second to ask such a query. As of this writing, the Commonwealth’s three key power conservation help packages – the SMART photo voltaic incentive, ConnectedSolutions, and the Clean Peak Standard – are getting into a interval of inside evaluation, as really useful within the December 2023 report , Charging Progress: Saving Energy in a Net Zero Commonwealth. As a part of this evaluation, we really feel it is very important evaluation the fairness provisions and ranges of participation in these packages, and consider their effectiveness in offering entry to power financial savings to the certified and underserved. service communities within the Commonwealth – these most in want of its advantages.
To conduct this program evaluation, CEG contracted the Applied Economics Clinic (AEC). The AEC’s evaluation revealed that two of the Commonwealth’s power financial savings packages (ConnectedSolutions and the Clean Peak Standard) lack particular fairness provisions and don’t report fairness participation. The third program, SMART, regardless of modifications aimed toward bettering low-income participation, continues to see very low enrollment amongst income-eligible prospects – a class that’s narrowly outlined in a means that excludes different forms of underserved communities that will profit from participation.
In brief, this report finds that Massachusetts’ present power financial savings packages, whereas progressive and profitable in some ways, should not fulfilling the Commonwealth’s clear power fairness commitments.
Fortunately, there are comparable packages in different states that present how it’s potential to do higher; there are even pilot packages in Massachusetts that present good examples, such because the Cape & Vineyard Electrification Offering from the Cape Light Compact. These packages, summarized within the report, embrace mannequin fairness provisions that may be tailored and utilized to statewide packages in Massachusetts.
It’s not too late to behave! Equity provisions that ought to have been in place from the start can nonetheless be added to the present spherical of program modifications. Such fairness provisions might embrace finest practices modeled on different packages, resembling fairness incentive adders and low or no-cost financing, to assist overcome value obstacles; participation targets or carve-outs for low-income and underserved communities (the federal Justice40 commonplace supplies a mannequin); and public reporting necessities, to trace and measure progress.
The Commonwealth of Massachusetts has set a excessive bar for itself in creating clear power fairness. It should now dwell as much as that top bar. Not solely as a result of it’s the proper factor to do, but additionally as a result of full decarbonization requires full participation. By 2022, roughly 10.4 % of the inhabitants of Massachusetts will dwell under the poverty line, and 50 % – 3.5 million folks – will dwell in environmental justice communities. It shouldn’t be potential for Massachusetts to succeed in its decarbonization and clear power targets whereas abandoning these communities.
When evaluating Massachusetts’ power financial savings packages to different states like California, New York and Connecticut, one factor appears clear: little fairness enchancment will be made if the state would not want it. Utilities could also be nicely positioned to handle these packages, however legislators, legislators and regulators are tasked with figuring out targets, establishing guidelines and managing progress by public reporting. Some states talked about right here have taken concrete steps of their power financial savings packages to ascertain clear fairness targets, overcome obstacles to equitable participation, and measure outcomes. If obligatory, course corrections are made.
Massachusetts now has a chance to do the identical.
A brand new report by the Clean Energy Group, Energy Conservation Equity: An Analysis of Three Programs in Massachusettswill be downloaded HERE. A free webinar on this report will likely be held on October 8; register HERE.
