Members of the Committee:
Thank you Chairman Hall, and distinguished members of the Utilities and Energy Committee, for allowing me to offer comments on the Baldacci administration’s bill LD1929 to amend the state’s Renewable Portfolio Standard (RPS).
Environment Maine strongly supports a renewable portfolio standard to promote new clean, renewable energy produced in Maine from wind, solar, geothermal, tidal, low-impact hydro, and plant-derived biomass. 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.
We are pleased that the Governor recognizes the need to require new clean and environmentally sustainable renewable energy as part of Maine’s mix of electricity resources. Amending the RPS to include a Tier II new clean renewable energy standard for electricity from wind, solar, tidal, fuel cells, geothermal and landfill gas is a step forward. However, Environment Maine believes that the proposed standard falls short of what is necessary to ensure that Maine reaches its full potential for renewable energy as an electricity source.
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. For this reason, we believe that the proposed standard does not go past tapping the proposed energy projects on the horizon. 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 2013 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.
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.
Additionally, Maine’s current RPS includes energy sources that are not clean and should not receive policy support for being renewable. Trash incinerators, fossil fuel cogeneration and should not be included in the RPS. Environment Maine believes that the definition of renewable energy should be changed such that incineration and cogeneration are dropped from the definition and biomass should be narrowed to only include plant-derived, low-emission technology.
So while we are pleased with the thrust of this bill; it is our hope that Maine will set the bar higher to truly make our state a leader in developing clean, domestic renewable energy resources. This what is necessary to show our commitment to renewable energy investors that there is a long-term commitment to the sustained and orderly development of renewable energy here. We look forward to working with the Baldacci administration and the legislature to move toward a cleaner and more energy independent future.
