Virginia Clean Economy Act: A Big Step Forward on Climate Policy

House and Senate Pass “Virginia Clean Economy Act” on Tuesday, Feb 11

By Mike Tidwell

When it comes to clean energy policy, environmental activists nationwide commonly think of the Chesapeake Climate Action Network as true “climate hawks.” We sue polluters. We picket against companies like Dominion Energy. And when the time is right, our lobbying arm CCAN Action Fund, pushes HARD for transformative clean energy laws. Our collective actions over the past 18 years have led Bill McKibben of 350.org to call CCAN “the best regional grassroots climate group in the world.” 

So when I tell you we strongly support the Virginia Clean Economy Act, it’s for one reason: It’s a strong and transformative bill. This legislation, which passed in both the House of Delegates and the Senate on Tuesday, February 11th, will now cross over to be heard in the opposite chamber. The goal is to get it to the Governor’s desk as soon as possible, where he says he wants to sign it.

CUTTING TO THE CHASE: This bill shuts down Dominion’s coal-fired power plants in a HURRY. It brings a tidal wave of wind and solar power to Virginia. And it protects low-income ratepayers with ironclad provisions.

Both House and Senate versions of the VCEA would effectively shut down ALL of Dominion’s coal plants by 2030. All of Virginia’s utility-owned gas plants – all of them – would shut down by 2045,  but probably much sooner under this legislation. At the same time, the House and Senate bills will midwife the largest offshore wind farms in the nation and turbo charge the spread of both distributed rooftop solar power and properly sited solar farms. Both bills invest half a BILLION dollars in energy efficiency gains for low-income households over the next decade. And they cap the electric bills of low-income families at a guaranteed sustainable level, a game-changing move. Finally, despite the understandable suspicion (given history) that Dominion would only agree to a bill that gouges ratepayers, these bills contain bill-lowering competition for solar and wind projects that will keep prices down. The House bill, meanwhile, has even stronger mandates for energy efficiency gains to protect consumers. 

WHO SUPPORTS THE BILL?

Before digging into the bill in greater depth, keep in mind that the Virginia Clean Economy Act is supported by the biggest clean energy coalition ever assembled not just in Virginia but perhaps in the nation. I say this from experience working across the mid-Atlantic and in much of the rest of the country. It is a sign of the times and a sign of the extraordinary work done in Virginia that virtually every major environmental group in the state, all the wind and solar companies operating in the state, and yes the main electricity polluters – Dominion and Appalachian Power Company – support either the Senate version of the bill or the House version. (Both bills make strong progress and will have a hearing in the opposite chamber soon). The supporters are too many to name here but they include Sierra Club, Virginia Interfaith Power and Light, CCAN Action Fund, Southern Environmental Law Center, Sigora Solar, Orsted wind, and many progressively run corporations in the state like the Mars candy company and Akamai Technologies. This type of coalition is unprecedented in a southern coal state, for sure, but virtually unheard of anywhere in the country. Again, for critics who suspect Dominion is just gaming the system with another anti-consumer bad energy bill, you would have to believe that all of the groups – including mine – have been deceived after weeks of negotiations and careful bill writing. The truth: these groups support the bill because the net positive effect is tremendous for Virginia.

lobby day rally

250 people came to Richmond to lobby for the VCEA in January.

A DEEPER DIVE INTO WHAT THE VCEA DOES: 

Creates New Ratepayer Protections to Keep Bills Low

The Virginia Clean Economy Act would provide half a billion dollars in home weatherization funds for low-income households. It requires half of the funds from the Regional Greenhouse Gas Initiative to help low-income residents invest in efficiency to keep bills low. The other half will go towards flooding assistance, with about $250 million earmarked for low-income communities. 

The VCEA also creates Virginia’s first binding energy efficiency savings targets. Now, Dominion Energy will have to prove that their customers are using 5% less energy over a 2019 baseline by 2025. The savings target for ApCo is 2% of current load by 2025. 

It also includes additional provisions to keep bills low for clean energy projects. On offshore wind, the bill requires Dominion to hold a competitive bidding process to find the company that will build the turbines for the best price. There’s also a cost ceiling to keep the cost of electricity low. 

On solar, the bill will allow for up to 35% of the solar required in this bill to be owned by third party companies (i.e., not Dominion). This will allow for more competitive pricing on electricity from solar power. It also would utilize the “Percentage of Income Payment Plan” (PIPP) to cap energy bills for low-income ratepayers at a guaranteed affordable level. 

Creates a Renewable Portfolio Standard

A Renewable Portfolio Standard (RPS) is a state law that requires utilities to deliver a specified amount of renewable energy such as wind and solar to their customers. The VCEA requires 100% clean electricity by 2045 for Dominion Energy and 2050 for Appalachian Power Company (ApCo), with a benchmark of 30% renewable by 2030. Renewable energy is defined as electricity from wind, solar, falling water, and other in-state resources. For Dominion, 75% of all renewable energy must come from the Commonwealth in 2025 and beyond.

This bill creates the only mandatory RPS with a target of 100% clean energy in the South and one of the stronger versions of the law of any state in the country, putting the state within shouting distance of leading states like Maryland. 

Expands Wind and Solar Energy

The VCEA would launch the largest offshore wind farms in America while turbo-charging the state’s solar industry. It establishes offshore wind as a substantial portion of the RPS as offshore wind comes online, and deploys 5,200MW by 2034, making Virginia a leader in offshore wind. It also includes labor provisions to require the use of local labor.

For distributed solar, it establishes rooftop solar as a portion of the RPS up to 1% annually beginning in 2021. It increases the cap on power purchase agreements to 500MW in Dominion territory and 40MW in ApCo service territories. It expands net metering by increasing the net metering cap to 6%, including 1% specifically set aside for low-to-moderate income communities, and allows larger projects to net meter. It also requires utilities to develop more than 16,000MW of renewable energy by 2035, equivalent to enough electricity for 3 million homes.

Key to the success of offshore wind and solar power is energy storage. The VCEA sets targets for energy storage of 3,100MW by 2035, including 2,700MW for Dominion and 400MW for ApCo. It also requires 10% of energy storage projects to be deployed directly “behind the meter” for power backups at hospitals, government facilities, and more.

Ends Fossil Fuel Emissions 

The Virginia Clean Economy Act would shut down virtually all of Dominion’s coal-fired power plants by 2030, all biomass facilities by December 31, 2028 and the rest of the state’s fossil fuel power plants by 2045. This makes us the only state in the South with a mandate to shut down all fossil fuels. 

While this House Bill does not create an outright moratorium on new fossil fuel development, it serves as a de facto moratorium on carbon-intensive electricity in Virginia by mandating a carbon-free grid by 2045 with exceptional interim goals by 2030. It also requires the Secretaries of Natural Resources and Commerce & Trade to report recommendations on how to achieve 100% carbon free electricity and fossil-fuel retirements. It bars the State Corporation Commission (SCC) from issuing new permits for power plants powered by fossil fuels until that study is received by the General Assembly.

Finally, it deters any utility spending on projects that do not help lower energy usage. Dominion will have to prove that they are meeting energy efficiency targets to lower overall energy usage before they are allowed to construct any new power plants powered by fossil fuels. 

Advance Environmental Justice 

Justice is incorporated into every aspect of the VCEA.  

The ratepayer protection provisions were laid out above. Further, the bill requires the Virginia Department of Mines, Minerals and Energy and the Environmental Justice council to prepare a report to ensure VCEA doesn’t disproportionately burden minority and historically-disadvantaged communities. It includes language to ensure reliability is protected. And it sets the policy of the Commonwealth to consider low-income areas & historically disadvantaged communities when considering new renewable projects, energy programs, and job training. Finally, it requires utilities to consult with the Clean Energy Advisory Board on how best to inform low-income customers about their solar options.

Summary: 

This bill is not the end for the climate fight. We will have to come back for transportation, agriculture, and more, until every sector of the economy is in line with the science. But the facts speak for themselves: This bill will hold Dominion dramatically accountable on rates and fossil fuels emissions. This is the best first step on climate a state has ever taken.

Happy CCAN Virginia team after the bill passed the House.

 

Offshore Wind Energy is a Breeze: Economic Benefits

By Chloe Taylor, Katrina Vaitkus, Justin Stacey, Zachary Felch, Amanda Speciale, Katie DeVoss, and Miranda Mlilo
Who we are:

Left to right: Chloe Taylor, Katrina Vaitkus, Zachary Felch, Justin Stacey, Miranda Mlilo, Amanda Speciale, and Katie DeVoss

We are a group of University of Maryland students majoring in Environmental Science and Policy. For our senior capstone project, we are researching the impact of offshore wind energy  to help CCAN prepare for the upcoming public comment period for the proposed Ocean City US Wind Project. We will be creating a series of blog posts to provide information about different aspects of offshore wind and its impacts on greenhouse gas emissions, the economy, and wildlife. This is the second of our three part series.

There seems to be a common misconception that offshore wind energy might hurt Ocean City’s economy. This could not be further from the truth! In fact, research suggests that an offshore wind farm may actually bolster very important sectors of the economy such as tourism, real estate, and job creation.
Tourism and Real Estate
Many polls have surveyed beachgoers and gathered data about their vacationing preferences after the theoretical construction of offshore wind turbines. The results were generally positive for offshore wind, and showed either no change in beach preferences, or an increased likelihood that tourists would visit the area. For example, one Goucher poll from fall 2017 surveyed Marylanders to find out how the proposed offshore wind project would impact whether they choose Ocean City as a vacation destination. Out of 671 Marylanders, 75% of people said that the offshore wind farm would make no difference about where they choose to vacation. Additionally, 12% said that the presence of a wind farm might make them more inclined to visit, out of curiosity and interest.
This sentiment was further emphasized by Jessica Willi, Executive Director of the Block Island Tourism Council who stated that after the construction of the Block Island offshore wind farm, “We’ve definitely seen more people on the island that have come just to see the wind farm; we’ve had businesses sprout up on the island, boats taking people out just to see the wind farm.”
Additionally, a French study found that turbines will bring an increase in biodiversity and wildlife. This will expand the tourism market, bolstered by the desire to view, learn about, and interact with wildlife through activities like observational boating and diving around turbine foundations!
Furthermore, it is unlikely that there will be any negative impacts on real estate prices. While there is no existing data regarding real estate impacts from offshore wind farms, there are studies from onshore facilities located close to homes indicating that real estate will not be affected. Since offshore wind farms are located several miles off of the coast and have negligible visibility, data showing no effect from turbines located close to homes onshore would likely support a lack of impact for offshore turbines far from homes and other properties.  In fact, benefits from tourism and lower electricity costs might even increase property values.
A 2013 study by Ben Hoen and colleagues found no statistical evidence that wind turbines affected nearby home prices in either the post-announcement/pre-construction or post-construction period. They found that while sale prices might temporarily decrease following the announcement of construction, labeled the “anticipation effect,” these decreases will wear off following construction.
Job Creation
US Wind plans to invest millions of dollars into Baltimore’s industrial and manufacturing sector. This substantial investment into the local economy is the root of the job opportunities for the city from the offshore wind project. Revitalization of the manufacturing industry could lead to the creation of hundreds of jobs in the greater Baltimore area, contributing to the 3,580 jobs the Public Service Commission of Maryland has required US Wind to create in the state. At every step of the process, employment opportunities abound. Skilled workers from numerous disciplines are essential to upgrade the facilities at Tradepoint Atlantic (at Sparrows Point) and other locations. An independent study for the Department of Energy forecasts the creation of up to 600 jobs and 33 million dollars in compensation during this stage alone. After the improvements are complete, over 150 tradespeople will likely be employed at the fabrication facility constructing steel jacket foundations — these jobs will continue even after the Maryland offshore wind project is complete as the East Coast’s offshore wind industry grows. Such professions can pay over 20 dollars an hour.
Not only does Baltimore stand to gain significant employment opportunities, so does Ocean City. As the closest city to the project, there is a unique chance to participate in the construction and upkeep of the wind turbines. Specialized workers from crane operators to electricians may be called on to help in the construction of the turbines while receiving payment upwards of 25 dollars an hour on average, if not more. Perhaps the most interesting job prospect is the chance to become employed as wind turbine service technicians. With a lifespan of 25 years, the turbines will require constant check ups and maintenance by locally-based technicians. Community colleges and technical schools are the key to getting a foot in the door with a 2-year degree or 1-year certification in the field. With a 96% job outlook in the coming years, the time is now to enter the profession.
Economic Benefits in Maryland
This project will also generate millions of dollars for Maryland’s economy, providing more jobs and emerging business investments. Maryland created the Maryland Offshore Wind Business Development Fund to encourage future project development. US Wind is required to contribute $6 million to this fund between 2017-2019, which will help other businesses emerge and profit within this novel industry. US Wind has pledged to invest 26.4 million dollars in upgrades to the Tradepoint Atlantic port facility, and an additional 51 million dollars in another steel facility, further solidifying their commitment to the local economy and job growth. US Wind is required to spend at least 19% of total development and construction costs within Maryland. Their studies estimate this in-state expenditure to be $610 million during development and construction, and another $744 million (valued in 2017 dollars) in the operation phase. This offshore wind farm will provide millions of dollars to the state’s economy and help advance business interests.
In addition to these state benefits, Marylanders do not need to fear exorbitant electricity costs. There may be some concern over how the state will offset the costs to build the project, such as raising the price of electricity. However, Maryland law prohibits residential rates from exceeding an additional $1.50 per month (valued in 2012 dollars) through 2040. For businesses and other non-residential payers, this increase is less than 1.4% annually. While this is a small increase, it is still advantageous to build the wind farm, as it helps the state comply with its renewable energy standards. Additionally, the cost of electricity should decrease over time as this project encourages future offshore wind projects in the pipeline. In one National Renewable Energy Laboratory study, they found the cost of electricity in the mid-Atlantic will decrease through 2027 with the installation of offshore wind projects currently in the pipeline. Compared to 2015 prices, the data reflect a 41-52% cost reduction in 2027 per megawatt hour to the mid-Atlantic! Thus, constructing this project will only have small rate increases to Maryland ratepayers, but will decrease future regional energy costs while meeting our renewable energy goals.
In conclusion, offshore wind has the potential to increase tourism and property values in Ocean City. The project will create jobs, stabilize electricity rates, and increase Maryland’s Taylor x revenue. Stay informed, get involved, and let our government know that you support offshore wind in the state of Maryland!
SIGN THIS PETITION TO THE BUREAU OF OCEAN ENERGY MANAGEMENT URGING THEM TO APPROVE OFFSHORE WIND IN MARYLAND!

Learn More: Bringing Offshore Wind to Maryland

Marylanders Stand up for Clean Energy

Yesterday, the Maryland General Assembly’s 2015 legislative session came to a close. As legislators pack up their offices and return back to their districts, we know that they will carry a message back with them: Marylanders from Cove Point to the mountains of Western Maryland want our state to be a leader in climate change.
This year, we reintroduced the Clean Energy Advancement Act – landmark legislation that would have mandated that 40% of the electricity that we use to power our homes and communities comes from renewable sources such as wind and solar. The legislation was later amended to require that 25% of the energy we consume comes from renewable sources by 2020. This was a top priority of Maryland’s climate action plan and would’ve also placed Maryland on the trajectory to double wind and solar by 2025.
From the very first day up until the final vote was cast we kept our voices raised for clean energy.

Senator Feldman (Lead Sponsor of the Clean Energy Advancement Act) at first day of session rally.
Senator Feldman (Lead Sponsor of the Clean Energy Advancement Act) at first day of session rally.

We were there on the first day of session. As legislators entered their offices, activists packed Lawyers’ Mall to say that they want wind turbines and solar panels to dot Maryland’s landscape, not fracking wells and coal-fired powered plants. Activists knew that in order to transition Maryland to a clean energy future where public health is protected and our landscape is not marred by fossil fuel spewing energy sources that we needed to pass strong legislation. We needed to challenge Maryland’s utility companies to clean up their act and provide Maryland residents with electricity sourced from renewable sources such as wind and solar.
This year – more than ever, it was evident that the climate movement in Maryland is not comprised only of environmental activists. Our movement is comprised of people from all walks of life who want healthier families, new economic opportunities and cleaner air. We were joined on the first day of session by faith leaders, labor leaders, health advocates, and civil rights organizations. Each raised their voices to show Maryland’s leadership that the issue of climate change impacts the future of all Marylanders.
Faith leaders rally for clean energy.
Faith leaders rally for clean energy.

The faith community raised their voices: Over 250 faith leaders signed onto a letter calling upon our elected leaders to care for God’s creation. This was prompted by the efforts of the Ecumenical Leaders Group – a committee of seven leaders of Christian denominations. This marks the first time that this group of senior religious leaders has spoken out together on a matter of environmental concern.
The business community raised their voices: Over 150 businesses, from solar companies such as BithEnergy to a local 7-11 store, called on their elected leaders to pass the Clean Energy Advancement Act. Business owners such as Roger Blunt, a retired US Army General and founder of Essex construction, stated, “For the good of our economy, and for the good of our veterans, we need to pass the Maryland Clean Energy Advancement Act. By raising our renewable energy standard, we’ll send a strong market signal that Maryland is the place for solar and wind manufacturers to set up shop. We’ll also expand a growing clean energy workforce that employs a high percentage of veterans like me.”
Labor leaders raised their voices: This year we were joined by Maryland Working Families, SEIU Local 500 and SEIU 32 BJ. They know that a clean energy future would provide jobs that not only protect our environment but that support Maryland’s working families. Maryland’s manufacturing sector has been in decline over the last decade. Representatives of Maryland’s labor movement know that investing in the clean energy sector is a win-win for working families and economic development. “The Maryland Clean Energy Advancement Act means more jobs for Maryland, including more public sector jobs, more manufacturing and constructions jobs,” stated Charly Carter, Executive Director of Maryland Working Families. “That is a big win for all of Maryland’s workers and for our communities.”
Our legislators raised their voices: Sixty-two legislators cosponsored the Clean Energy Advancement Act. When the legislation came to a vote in the Senate Finance Committee, the chair Senator Mac Middleton and vice-chair Senator John Astle sent a strong message that they wanted to advance this bill out of the committee and onto the floor for a vote. Unfortunately, the bill stalled in the Senate Finance Committee. But thanks to everyone who took action, we have garnered the support of these key leaders in the General Assembly and will continue to garner the support of committee members next year.
And we raised our voices.
Activists meet with legislators to garner support for the Clean Energy Advancement Act.
Activists meet with legislators to garner support for the Clean Energy Advancement Act.

In my few short months organizing for the Chesapeake Climate Action Network, I have been amazed at the dedication and determination of our activists. Hundreds of you braved frigid temperatures and icy roads to stand in Lawyers’ Mall and rally for clean energy. Many of you traveled from all corners of the state to speak to your legislators about the Clean Energy Advancement Act. Over 100 activists met with their legislators. You called your legislators at critical points in our campaign to lead Maryland into a future where children can breathe clean air and families can thrive and be supported by good, green jobs. Over the last few weeks you did not become discouraged. You kept marching on submitting letters to the editor, visiting legislators offices and raising your voices for Maryland’s future.
When I look back over the last few months and the time, energy, and effort that was put into this campaign, I am reminded of a quote: “There is hope if people will begin to awaken that spiritual part of them, that heartfelt knowledge that we are caretakers of this planet.” While the Clean Energy Advancement Act was not enacted into law in 2015, I am hopeful. Each one of you who raised your voice and took a stand to preserve the earth for future generations has that same hope and knowledge instilled in your spirits. And indeed, we will continue to raise our voices until this is done.

Mill’s stance on ‘black liquor’ irks lawmakers

The Washington Post

By Steven Mufson

A month ago, the manager of Luke paper mill in western Maryland pledged in writing to remain neutral on a bill in the state legislature that would curtail renewable energy payments to mills burning a residue called “black liquor.”

This week, he changed his mind.

The flip-flop irked key Maryland lawmakers, but the Luke mill manager was just one of a parade of people from the American Forest and Paper Association, the United Steelworkers and Dominion Resources who opposed the bill in hearings in Annapolis on Tuesday and Thursday.

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Md., D.C. utilities pay paper mills burning ‘black liquor’ for alternative fuel credits

The Washington Post

By Steven Mufson

When Maryland and the District set floors requiring electric utilities to use increasing amounts of renewable energy, environmentalists cheered the prospect of money going to new solar and wind projects.

But today, several years after the legislation went into effect, it has had an unexpected outcome.

Thanks to a wrinkle in the definition of renewable, the lion’s share of the money used to meet those standards is flowing to paper companies that burn “black liquor,” a byproduct of the wood-pulping process. Paper mills have been using black liquor to generate most of their power needs since the 1930s.

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Destroying a clean-energy law

The Virginian-Pilot
By Beth Kemler
Sneak attack, dirty trick, underhanded. Those are some of the terms used to describe Senate Republicans’ move to exploit the absence of one Democrat to pass an off-year redistricting bill – a story that became one of the hottest of this year’s Virginia General Assembly session.
Those terms also apply to one of the least covered stories of the session – a move by climate change-denying Attorney General Ken Cuccinelli and electric utilities, including Dominion Power, to effectively repeal one of the state’s core clean energy laws.
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Paper mills reap millions from state energy law

The Baltimore Sun

By Timothy B. Wheeler

A Western Maryland paper mill and several others in the region have collected millions of dollars over the past eight years by taking advantage of an obscure provision in a state law that is supposed to encourage the development of wind, solar and other renewable energy projects.

The paper manufacturers routinely burn waste byproducts from their mills to make the energy to run them. But since 2005, they’ve been getting paid to do so by selling “renewable energy credits” to power companies, which can buy the paper waste credits rather than purchase ones generated by the sun or wind.

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Broad coalition calls on Virginia lawmakers to strengthen state’s clean energy standard, not roll it back

For Immediate Release
January 24, 2013

Contact:
Beth Kemler, 804-335-0915, beth@chesapeakeclimate.org
Kelly Trout, 240-396-2022, kelly@chesapeakeclimate.org

Environmental, health and faith organizations come together to urge the General Assembly not to repeal incentive for utilities to meet renewable energy goals

RICHMOND—A broad coalition of 23 local, state and national organizations released a statement today calling on Virginia lawmakers to strengthen the state’s clean energy standard, rather than repeal the incentive for utility companies to participate.

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Poll: Virginians oppose repeal of state’s clean electricity standard by more than 2-1 margin

For Immediate Release
January 22, 2013
 
Contact:
Beth Kemler, 804-335-0915, beth@chesapeakeclimate.org
Kelly Trout, 240-396-2022, kelly@chesapeakeclimate.org
 
As House committee considers Cuccinelli-Dominion backed repeal legislation, new statewide poll shows broad support among Virginians for maintaining clean energy law, more climate action
 
RICHMOND—Polling data released today shows that a strong majority of Virginians—67 percent—want the General Assembly to maintain the state’s clean electricity standard, in contrast to only a quarter of respondents who would back a repeal. The results, advocates said, should signal to state lawmakers that legislation backed by Attorney General Ken Cuccinelli and Dominion Power to effectively repeal the state’s Renewable Portfolio Standard (RPS) law is at odds with the wishes of Virginians. (View the poll results.)
 

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Activists rally to stop Cuccinelli repeal of VA clean energy law, offer solutions to strengthen it

Appalachian Voices ■ Chesapeake Climate Action Network ■ Sierra Club Virginia Chapter

For Immediate Release
January 17, 2013

Contact:
Beth Kemler, 804-335-0915, beth@chesapeakeclimate.org
Kelly Trout, 240-396-2022, kelly@chesapeakeclimate.org

Dozens of activists hold day of action at the Capitol to call on lawmakers to ‘fix, not nix’ the state’s Renewable Portfolio Standard, move forward on Virginia wind and solar power

RICHMOND—Dozens of activists from across Virginia converged on the capitol in Richmond today for a rally and day-long action to protest legislation proposed earlier this week by Attorney General Ken Cuccinelli that would effectively repeal Virginia’s top clean energy law. The activists joined environmental and health leaders to call on state lawmakers to oppose the repeal and instead strengthen the Renewable Portfolio Standard law so that it fulfills its original intent to spur the development of solar and wind power.

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