Massachusetts Identifies Renewable Projects for CREBs, Forms Efficiency Council

Utility customers could save more than $4 billion through efficiency

June 2009

Two state task forces appointed by the governor have identified Massachusetts renewable energy projects for possible funding under a new round of Clean Renewable Energy Bonds (CREBs), and a coalition of state utilities has proposed an ambitious energy efficiency plan for the state.

Ready for CREBs

Through CREBs, the federal government provides a tax break to private-sector investors who purchase the bonds. The tax breaks are intended to be in lieu of interest payments, so that the state or local government agency issuing the bonds makes only payments against the principal. The result is low-cost financing—much lower than with traditional municipal bonds—for energy efficiency and renewable energy projects.

Congress created CREBs in 2006 to encourage renewable energy projects at the state and municipal levels. The American Recovery and Reinvestment Act of 2009 allocated more than $2.4 billion for state and local entities for CREBs. You can read more about CREBs in a feature article published in June 2009 by the DOE Office of Energy Efficiency and Renewable Energy titled Financing Renewable Energy on State and Local Government Property with Clean Renewable Energy Bonds.

In anticipation of millions of dollars of funding coming into the state through the Recovery Act, Massachusetts Governor Deval Patrick created a series of task forces in late 2008 to identify key projects. A list of small-scale, renewable energy projects was one of the outcomes.

Construction began this year on projects funded with CREBs in 2007, including more than $3.1 million for photovoltaic systems at 12 Massachusetts facilities.

To learn more, read the May 18 news release issued by the Massachusetts Office of Energy and Environmental Affairs.

Utilities Form Efficiency Council

A coalition of Massachusetts gas and electric utilities has submitted an energy efficiency plan that its creators predict could save customers more than $4 billion in energy costs over three years.

The plan was submitted on April 30 to the state's Energy Efficiency Advisory Council (EEAC), in compliance with the 2008 Green Communities Act.  This legislation mandated that utilities increase their investment in energy efficiency programs and create the EEAC to facilitate the process.

Under this act, "electric and natural gas resource needs shall first be met through all available energy efficiency and demand reduction resources that are cost-effective or less expensive than supply."  Utilities are required to submit comprehensive, statewide, three-year, energy-efficiency plans; April 30 was the first deadline.

The EEAC will review all plans, resolve necessary questions, and send approved versions to the Department of Public Utilities by October 31, 2009.  The utility coalition has stated that, if approved, the plan could be implemented in 2010.

For more information, read the May 5 news release issued by NSTAR, which is the largest electric and natural gas utility in the state. To learn more about the Massachusetts Energy Advisory Council, read a summary of the group's responsibilities published online by the Commonwealth of Massachusetts (PDF 35 KB). Download Adobe Reader.