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Clean Energy Reports
Executive Summary
As the new home of RIPIRG's environmental work, Environment Rhode Island can be contacted regarding this report. In recent years dozens of studies have examined the benefits of increased energy efficiency. This white paper seeks to summarize and highlight the benefits to Rhode Island of investing in ratepayer funded energy efficiency programs, appliance efficiency standards and other state-based programs that improve energy efficiency and conservation in Rhode Island. This white paper will examine several specific existing and suggested energy policy options. These options are not meant to be an exhaustive list, but rather a starting point for an ongoing dialogue. While the future of energy efficiency, renewable and conservation programs in Rhode Island are uncertain, the benefits associated with these programs are already clear: they are good for consumers, our economy and our environment. In order to reap the benefits of a wise energy policy Rhode Island must move towards a smarter energy future. The Approaching Crisis
Skyrocketing energy prices are taking a toll on Rhode Island’s families and on our economy, as more of our earnings go to out-of-state oil and gas companies, and less stays in Rhode Island to purchase goods and services and create jobs in Rhode Island Why are we in this situation? Clearly, the underlying problem is that domestic and worldwide demand for oil and natural gas has been climbing while supplies are growing harder to come by. Most experts agree that this is a condition that is likely to persist and worsen over time. At the same time, Hurricane Katrina demonstrated dramatically that our energy infrastructure is vulnerable. Moreover, many gas and electric utilities have failed to diversify their energy resources. In addition, policymakers have missed opportunities to invest in energy saving technologies that reduce consumption. Rhode Island has made some progress in both energy efficiency and renewable energy by creating a strong ratepayer funded electric energy efficiency program, approving legislation in 2005 to create minimum efficiency standards for 13 household and commercial products, and adopting a statewide Renewable Energy Standard (RES) that will require an increasing percentage of energy to come from clean renewable resources. Despite the progress that Rhode Island has made, this winter’s crisis will highlight the need for Rhode Island to redouble its efforts. According to the Northeast Energy Efficiency Partnerships (NEEP), energy efficiency still holds a huge potential for to create savings across New England. Current efficiency programs are projected to target less than 20% of economically achievable improvements.2 In addition, NEEP projects that if all of the economically achievable energy efficiency opportunities were tapped, the net benefit to the New England’s economy would be between $13 and $23.7 billion.3 Now is the time for an all-hands-on-deck effort to adopt both short-term and long-term energy solutions. We can lower heating bills for residents across the state with meaningful programs that will have an impact this year and for many years to come. We have an opportunity and responsibility to make the serious investments that will provide long-term energy security by maximizing investments in cost-effective energy efficiency measures, increasing public education and continuing to fund programs that will diversify our energy resource portfolios. The good news is that there is ample experience from around the nation to draw on from the past two decades, and this experience points us to programs that are tried and true and will produce results. What follows is a description of six steps that Rhode Island policymakers can adopt to invest in a smarter energy future. This is far from a comprehensive plan, but by taking the following steps we can begin to chart a course toward a more affordable and stable energy future. 1
The author would like to thank Tony Dutzik and Rob Sargent of the State
PIRG’s, and Emily Rochon for their editorial assistance.
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