Cashing in on 'green community' funds will not be easy for Island towns
Given the economy, bureaucratic hurdles, and red tape, taking advantage of the new Massachusetts Green Communities Act or the federal stimulus programs intended to reward energy efficiency and generation won't be quick or easy on Martha's Vineyard. This is the headline news furnished at the Energy Forum, held on Friday, May 1, in the Katharine Cornell Theatre in Vineyard Haven.
The Vineyard Energy Project (VEP) coordinated the forum, which featured Power Point presentations by staff members of the state Department of Energy Resources (DOER) and its new Green Community Division. Cape and Island's state Senator Robert O'Leary (D) spoke briefly as well. State Rep. Tim Madden had been expected to attend but did not.
The Green Communities Act elevated the former state Division of Energy Resources to Department and created the Green Communities Division to provide communities with technical support and assistance.
The audience included about 40 energy activists, town officials, and commercial energy developers seeking information about how Martha's Vineyard towns might take advantage of both new Commonwealth and federal energy initiative programs.
The Green Communities Act was signed into law last July by Gov. Deval Patrick who described it as "a comprehensive energy reform bill that will reduce electric bills, promote the development of renewable energy, and stimulate the clean energy industry." Nearly a year later, speaking at the Energy Forum, Senator O'Leary said, "When we talked about legislation (last year) we were fond of saying privately that this was the best thing that happened in Massachusetts. We got a pretty good law. It is a complex law. But it is one thing to write legislation and another thing to turn that into something that impacts peoples' lives." It is not always pretty when you get into the "nuts and bolts" of enactment, Senator O'Leary went on to say.
The act focuses on creating greater energy efficiency and future generations of renewable, alternative energy sources in both the public and private arenas. For example, when the Department of Public Utilities (DPU) completes the planning process, utility companies will be required to make major changes in the way that they do business with residential as well as commercial and industrial customers.
The utility companies will be required to offer rebates and other incentives for customers to upgrade lighting and air conditioning systems, insulate windows, and install more efficient boilers. Homeowners and businesses will be able to rent solar panels from the utilities to avoid the upfront installation costs. The utility companies will have to invest in energy efficiency when it is cheaper than buying power.
The act also requires that the utilities begin to pay the fair market rate for energy that is "net-metered" or sold back to them by residential customers generating excess energy from alternative energy systems.
These new requirements are now only in the bureaucratic planning process of hearings and report preparations, and there is no date certain for implementation. "We are trying to move forward with a lot of things at once... we are working hard to get everything implemented as fast as possible," said one DOER official.
During her detailed review of the particulars of the act, DOER deputy general counsel Courtney Feeley Karp explained that with the act's implementation, "Massachusetts will be well positioned to take advantage of the national initiatives."
At the federal level, the American Recovery and Reinvestment Act (ARRA) includes $62 billion for renewable energy initiatives. Ms. Feeley Karp said the Commonwealth expects to receive $55 million of those funds, but it has identified $1 billion in potential energy projects.
Green Communities division director Mark Sylvia described the elements of the "green community" designation. Those cities and towns that complete the application process and become recognized "green communities" will be eligible to compete for a share of $10 million annually in grants and loans to help them become more energy-efficient or to invest in renewable energy. Funding for the grants comes from the auction of carbon emission allowances the Commonwealth earns as a result of its participation in the Regional Greenhouse Gas Initiative (RGGI).
The Green Communities Act as now written specifies that individual towns and cities are to achieve the "green community" designation, and the application process requires meeting five criteria. For example, applying communities must complete an energy use baseline inventory of municipal buildings, vehicles, street and traffic lighting and put into place a comprehensive program designed to reduce this baseline energy use by 20 percent within five years of entry into the program.
An unidentified audience member remarked, "none of the criteria pertain to a little town, so we will not get designated as green communities." Mr. Sylvia replied that "although becoming a 'green community' is significant, it is not the only way to take advantage of programs available to help towns become energy efficient."
For example, the DOER points to the availability of professional technical assistance and financing grants to complete energy efficiency audits. The Edgartown Water Treatment Plant and the Tisbury School have both taken advantage of this DOER program and have received grants to implement the recommended energy saving measures. The towns of Tisbury and West Tisbury are now in line for the technical assistance, but there is a long line of Commonwealth towns and cities waiting for such guidance and funding is limited, according to Mr. Sylvia.
Of particular concern to a number of audience members was the application criteria requiring towns to provide "as-of-right" siting of a renewable or alternative energy generating facility, R&D facility, or manufacturing facilities. Such a rule might result in the construction of very large wind turbines with commercial applications. Further, the act requires that towns adopt an expedited application and permitting process for the construction of any of these "as-a-right" sited facilities, not to exceed one year.
"There was a lot of information delivered and there are still question marks," commented the VEP executive director David McGlinchey.
Several questions and comments focused on the issue of the feasibility of applying as a county or region. Mr. Sylvia commented that there have been other requests for regional applications, but the details have yet to be worked out.
According to Mr. McGlinchey the "as a right" siting criteria is a major hurdle. "If we cannot apply as a region, many town officials are saying it is a non-starter.... That would be a shame since the funds available would be a real boon for Island towns where there are lots of identified projects with energy efficiency or energy generation goals."
Mr. McGlinchey concluded that "we need to take the information that was delivered at the forum and talk to the town, the county, and the Martha's Vineyard Commission (MVC) officials to determine the best way to move forward to achieve the green community status and line up for some of this green funding that has become available."
