Thank you for the opportunity to speak to the Committee. My name is Matthew Davis, and I would like to testify in support of LD 1065 on behalf of Environment Maine. Environment Maine advocates for clean air, clean water and open spaces on behalf of 3,000 members statewide.
Environment Maine strongly supports a renewable portfolio standard to promote new clean, renewable energy produced in Maine from wind, solar, geothermal, tidal, and landfill gas. Promoting these clean, renewable, in-state sources of energy will protect our environment from dirty energy pollution, and will bolster our economy. Moreover, increasing renewable energy will diversify our energy sources, which will help stabilize energy prices over the long term.
Establishing reasonable and enforceable goals based on Maine’s potential for clean renewable energy development over the next decade is critical to ensuring that Maine meets the challenge of energy independence. For the clean renewable energy industry to succeed in Maine, our officials must send a strong signal to the industry of our sustained commitment to the orderly development of renewable sources.
Given Maine’s abundant potential for wind, solar, biomass and low-impact hydro, we believe that establishing a standard for new clean energy of at least 10% by the year 2015 is both sensible and fitting. Maine has great capacity for this new clean renewable energy – in fact, two wind energy projects either in the planning phases or already in the permitting process would satisfy up to ~2% of the state’s electricity needs. For example, the proposed wind farm at Mars Hill would satisfy 1% (50MW) of the standard. This and other projects may come online in the next few years and might eclipse the percentage that would be established in the Tier II RPS by this bill. A standard of 5% new clean energy by 2014 will not stimulate enough projects to truly make Maine a leader on clean energy. New clean energy produced in Maine is key to protecting our air and water from dirty energy pollution, and bolstering our in-state energy supply and local economies.
Recently, voters in Colorado approved a similar renewable energy proposal on the November 2004 ballot 53% to 47%. Amendment 37 would gradually increasing renewable energy generation from wind, solar, geothermal, clean biomass and low-impact hydro to 10% of electricity generation by 2015. A Union of Concerned Scientists report showed that Amendment 37 would save consumers $236 million by 2025, while creating 2,000 new jobs and boosting the economies of rural Colorado towns. The Denver Post had this to say about the initiative, “Amendment 37 on the Nov. 2 ballot would stimulate a modest advance in the use of wind power, solar and biomass technologies, and we urge voters to say ‘Yes.’”
Environment Maine has another specific concern about the language of this bill. We understand that establishing an alternative compliance option for utilities in the event that no renewable energy options are available is important. However, the bill should make clear that utilities may only opt for the alternative compliance option as a last resort only if they have acted prudently to meet their obligations under the bill. Utilities should not simply be able to pay the alternative compliance payment without actively attempting to purchase clean new renewable energy.