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Northeast HVAC
News
Landmark Legislation Promotes
Renewable Heating and Cooling in Massachusetts.
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The Massachusetts House of Representatives passed a
comprehensive renewable thermal energy bill that will promote
the use of clean renewable fuels and technologies to heat and
cool buildings. Passed unanimously by the Massachusetts Senate
on June 19, the bill is expected to be signed by Gov. Deval
Patrick (D) within the next 10 days. It will go into effect on
Jan. 1, 2015.
SB 2214 provides financial incentives for several thermal
renewable energy heating and cooling alternatives. These include
geothermal and air source heat pumps; solar heating; and
bio-fuels such as wood pellets, wood chips, renewable bio-oils,
or renewable natural gas. By awarding credits to renewable
heating and cooling technologies, the bill provides a powerful
financial incentive to invest in and develop these technologies.
The Massachusetts Renewable Thermal Coalition, a group
representing over 40 local businesses and regional trade
associations was primary advocate for the bill. Leading
Coalition members include the Geothermal Exchange Organization
(GEO), the Massachusetts Forest Alliance; the New England
Geothermal Professionals Association, the Solar Energy
Industries Association, Coalition for Renewable Natural Gas; and
the Biomass Thermal Energy Council.
“Passage of SB 2214 is great news, and a huge victory for the
geothermal heat pump industry in Massachusetts and across the
country,” said GEO President and CEO Doug Dougherty. “We
provided technical and financial assistance to the effort, and
worked the bill at the grassroots level. In late-July, we called
each of our manufacturer members’ distributors and dealers in
the state, prompting at least 15 to personally call the Chairman
of the House Committee on Ways and Means in support of the
bill.”
According to Coalition leaders: “While the bill provides for
powerful new financial incentives, it does so without creating
new spending. Instead, renewable heating and cooling
technologies will now qualify for Alternative Energy Credits
under the Commonwealth’s existing Alternative Energy Portfolio
Standard (APS).”
Story
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The Massachusetts APS
was established in 2009 to reward businesses and homeowners for
installing eligible alternative energy systems. Under the law,
retail electricity suppliers must buy Alternative Energy Credits (AECs)
to offset the energy they produce using non-renewable fuels, making
electricity rates dependent in part on the number of credits
available on the market. With more AECs available from renewable
heating systems, prices drop, followed by electricity rates.
“This bill is good for the environment, and it’s good for
ratepayers,” said Sen. Barry Finegold (D), the bill’s prime sponsor.
“Enactment of the renewable thermal legislation will help to reduce
greenhouse gas emissions, expand our clean energy portfolio, and
bring us one step closer to realizing the goals set forth as part of
the Global Warming Solutions Act of 2008.”
“It’s also good for jobs,” said Jeffrey Hutchins, executive director
of the Massachusetts Forest Alliance. Katherine Stainken of the
Solar Energy Industries Association agrees. “With the new incentives
and longer-term stability provided by this bill we expect to see
companies expand their businesses and hire more people.” According
to the Coalition for Renewable Natural Gas representative David Cox,
“This is a win for Massachusetts and for renewables, including
biogas-derived renewable natural gas.”
Regarding the benefits of an expanded market for heat pump
technologies, New England Geothermal Professionals Association
representative Chris Williams (HeatSpring) said, “This bill will
increase the investment in and adoption of heat pumps by
Massachusetts property owners creating local jobs, lowering fuel
costs, and emissions.”
GEO recognized that along with similar bills already passed in
Maryland and New Hampshire, the Massachusetts legislation was
perhaps the most important state public policy vehicle of 2013-14.
“The new law is a significant breakthrough for the geothermal heat
pump industry nationwide,” said Dougherty. “It provides a new APS
compliance option for utilities, and benefits ratepayers by
promoting installation of efficient, cost-effective and comfortable
heating and cooling systems.”
More importantly, he continued, “The Massachusetts law also provides
for measurement of system efficiencies that will provide metrics of
actual performance. As GEO advocates for similar legislation across
the country, this will be extremely valuable to our efforts in
promoting the renewability, efficiency and environmental benefits of
geothermal heat pumps.”
In a GEO letter to Massachusetts House Ways and Means Committee
Chairman Brian S. Dempsey supporting passage of SB 2214, Dougherty
said, “Because current APS requirements have not been met under
existing standards, the addition of ‘geothermal energy’ to the
definition will reduce compliance costs for ratepayers served by
retail electricity suppliers. The bill ensures that Massachusetts
will take its place as a leader in using the renewable energy
provided by geothermal heating and cooling systems. It will also
help expand the market, create good jobs, provide significant
savings to consumers, and protect the environment.” The final
version of the bill is posted
here.
After SB 2214 is signed by Gov. Patrick, the Renewable Thermal
Coalition will work with the Massachusetts Department of Energy
Resources as the agency promulgates new regulations under the law.
The Coalition welcomes support from all who are interested in
promoting renewable heating and cooling technologies and fuels. Read
the Coalition press release about passage of SB 2214
here. Learn more about the Coalition at its website,
here.
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