Newclips

Fund spotlights solutions for long term;
Critics charge energy trust slights today's supply needs Worcester Telegram & Gazette
February 24, 2006
By: Martin Luttrell, Telegram & Gazette Staff

That little surcharge for renewable energy, in the small print of the monthly electric bill, has raised hundreds of millions of dollars for the state's Renewable Energy Trust.

The trust is a pool of money that was established by the state Legislature to fund renewable energy-related programs aimed at making buildings more energy efficient, educating the public on renewable energy and promoting energy production from renewable means.

Warren Leon, who manages the trust for Massachusetts Technology Collaborative in Westboro, said the program is paving the way for young technologies while providing education and making buildings energy efficient.

But with an initial state goal to produce 750 to 1,000 megawatts of new electrical power by 2009, some critics say the trust hasn't put enough "steel in the ground" for new production, and that power generation should be the priority.

Mr. Leon said the trust has taken in $275 million and has made nearly $225 million in awards and commitments, with $169.2 million for renewable energy projects and $55.4 million for waste-to-energy projects in 136 communities, as mandated in the initial legislation.

The trust is funded by a surcharge on monthly electric bills, about $6 a year for the average home.

Assistance has been given to hundreds of projects with a total capacity of more than 400 megawatts, said Mr. Leon. Of that, 81 megawatts are online or under construction, he said. About 118 megawatts have been supported through the trust's Massachusetts Green Power Partnership, Community Wind Collaborative and various Green Buildings and Infrastructure Initiatives scheduled to be complete this year or in 2007. Additional projects totaling more than 211 megawatts have received early-stage support through pre-development financing loans and feasibility study grants, he said.

"We're investing in some big projects that don't get built quickly," he said. "For a biomass project or wind farm, when we award money, it could take years to be completed.

"One way to judge is to ask if we've awarded funding to worthy projects. The answer is yes. Are we helping to create momentum for renewable energy over time? Yes. Higher electrical costs are bad for consumers, but that has caused incentive for renewable energy," said Mr. Leon.

Blackstone Valley Regional Vocational Technical High School in Upton used three grants from the trust totaling $650,000 to perform a feasibility study and install high-efficiency lighting with occupancy sensors and photovoltaic panels on the roof of a 14-classroom wing. The panels are capable of producing nearly 60,000 kilowatt hours of electricity a year, saving the district an estimated $5,000 to $6,000 a year, said Superintendent Michael F. Fitzpatrick. "These are outright awards, they're not reimbursable," he said. "Any state project can be enhanced by the dollars available from the trust. The MTC has been a joy to work with. We've hosted seminars with them."

Alternatives Unlimited, a Whitinsville agency that provides vocational, residential and transportation services for people with disabilities, is redeveloping its property on the Mumford River, and used a $20,000 grant from the trust to do a feasibility study on making the property energy self-sufficient.

It subsequently used a $30,000 grant to install rooftop solar panels for electric power, and is using another grant of $324,000 to get three turbines the former mill complex used back in service. That grant will help the agency go through the design and permitting processes, said Philip Ingersoll-Mahoney, director of administration and finance.

But Robert Ruddock, executive vice president for government affairs at Associated Industries of Massachusetts, said the trust has not funded the types of projects that have put enough new power generation on line, and suggested that the Legislature revisit the law.

"AIM's viewpoint is that this is about creating electrons - generation facilities that are renewable," Mr. Ruddock said. "The ISO (independent system operator) and others are concerned over the growth of demand and the lack of growth of supply."

AIM has taken issue with the fact that some out-of-state projects have received funding, and that too much of the fund has sat unspent. "We are giving significant attention to the generation of energy," Mr. Leon countered. "That's where the majority of our money has been going. The development process, in a lot of cases, takes a while. We should judge that a couple of years from now, when the projects we funded are done.

"I would suggest that the Legislature was wise when it set up the trust fund. It saw that renewable energy can benefit the state in a number of ways," he said. "Generation is one, and a second is to do things in a way that provides an economic impact for ratepayers. It develops jobs and businesses. Renewable energy companies have a bright future here in Massachusetts. We should do what we can to help them. They will bring jobs, even if the energy they bring is not here in Massachusetts. It will benefit the state."

MTC spokesman Christopher Kealey also pointed out that a lawsuit over the trust that went to the state's Supreme Judicial Court held up awarding of trust funds until 2000.

Mr. Leon also argued that the goal of reaching 750 to 1,000 megawatts of renewable power generation by 2009 was set early on by the state, but not as a primary function of the trust.

"It is not a specific goal for the trust to achieve," he said. "We're trying to do our part to reach that goal. Those megawatts will not come about just from what the trust does."

Lawrence F. Chretien, executive director of Massachusetts Energy Consumers Alliance, said his organization has received assistance through the trust, which he contends has done a good job getting solar and energy-efficient building programs funded.

"They have an excellent track record of success in green buildings," he said, "and I would consider decent success moving in solar."

State Rep. John J. Binienda, D-Worcester, who served eight years as House chairman of the legislative Energy Committee, said the trust is living up to its promise, but pointed out that siting wind-power facilities is difficult and time consuming. He said the Massachusetts Technology Collaborative should reach out to municipalities to provide funding for solar and green building initiatives.

"There are a lot of solar and wind proposals, but as long as we have people putting the brakes on projects like Cape Wind, you can't blame the trust," he said. "We have to continue to lessen our dependence on Middle Eastern oil. The price of natural gas this winter hit an all-time high. Renewable is the way to go.

"I really believe the collaborative should be doing more outreach," Mr. Binienda said. "They should start with municipalities. We're the people who have police stations, fire stations. Let people know the sun shines for 12 hours a day. I'm hoping they'll do more outreach. I think they could do more with town- and city-owned property. The biggest expense all municipalities are having this winter is energy."

Frank J. Gorke, energy advocate at the Massachusetts Public Interest Research Group, said allegations of not spending enough trust money are a myth and that the trust is essential to making the state a leader in new, renewable energy technology.

"We have the solar, wind and academics that can help us put our shoulder to the wheel," Mr. Gorke said. "It's critical that Massachusetts have an institution like the Renewable Energy Trust to focus on renewable energy."

Mr. Gorke argued that the state has not adequately enforced the Renewable Energy Portfolio Standard, which requires utilities to provide an increasing amount of power generated from new renewable sources. "We're falling short of those goals," he said. "People are looking to the Renewable Energy Trust to step in and fill that goal."

Siting and cost are factors in the slow emergence of renewable energy, particularly wind. There have not been long-term commitments to purchase that energy, providing another uncertainty for developers, Mr. Gorke said.

"We'd like the regulators to fix the here-and-now stuff so the Renewable Energy Trust can focus on the next frontier. ... You have to do all the things they are doing, outreach to cities and towns, education. The problem is so urgent, we need a multifaceted strategy," he said.