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<title>September 2006: New England States Reaffirm Their Commitment to
Newnewable Generation</title>
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<p align="left"><strong><small><font face="Arial">About The Author:</font></small></strong></p>
<p align="left"><font face="Arial" style="font-size: 9pt">Robert A. Olson is a partner in the law firm of
Brown, Olson & Gould, P.C. which maintains a nationwide practice in energy law,
public utility law and related commercial transactions.</font></p>
<p><small><font face="Arial"><font style="font-size: 9pt">He can be reached at:</font><br>
<br>
<b><font color="#0000FF">Brown, Olson & Gould, PC</font></b><br>
2 Delta Drive<br>
Suite 301<br>
Concord, NH 03301<br>
<a href="mailto:[email protected]">[email protected]</a><br>
(603) 225-9716<br>
<a href="mailto:[email protected]"></a></font></small></p>
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<p ALIGN="left"><b><u><br>
<br>
September 2006</u></b><font size="6"><b><br>
</b></font></p><b>
<font size="6">
<p>NEW ENGLAND STATES REAFFIRM THEIR COMMITMENT TO RENEWABLE GENERATION</p>
<p align="left"></font><strong>by Robert Olson and
</strong>David J. Shulock<strong> -- Brown, Olson and Wilson, P.C.<font size="6"><br>
</font>
</strong>
</b><font size="6"><font face="Arial" size="2">(<em>originally published by PMA OnLine Magazine:
2006</em>/10/27)</font></p>
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<p ALIGN="LEFT">The states of Massachusetts, New Hampshire, Connecticut,
Vermont, and Rhode Island reaffirm their commitment to renewable energy. In
August, Massachusetts Governor Mitt Romney outlined a four-prong long-term
energy plan. The plan focuses on diversifying and increasing the
Commonwealth’s energy supply through the use of renewable wood, hydro, and
wind powered developments, investing in energy infrastructure and the
development of advanced energy technologies, and increasing energy
efficiency. Governor Romney sees biomass generation as contributing most to
Massachusetts’ renewable future, followed closely by wind generation. To
support biomass production, Governor Romney proposes to expedite regulations
regarding fuel inputs, co-firing, and project siting, and he proposes to
fund wood supply and wood supply transportation upgrades. To support wind
production, Governor Romney proposes expedited permitting for wind
facilities on private land and for state facilities on state lands and
waters. Lastly, Governor Romney proposes lowering standby rates for on-site
generation to encourage private investment in generation.</p>
<p ALIGN="LEFT">In New Hampshire, Governor John Lynch announced his goal of
obtaining 25 percent of the state’s energy needs from renewable sources by
the year 2025. New Hampshire currently obtains 14 percent of its energy
needs from renewables. Economic modeling done by Lawrence Livermore Labs
demonstrates that increasing the use of renewable energy to 20 percent by
the year 2020, combined with similar efforts of other New England states,
could save New England residents between $82 and $204 million on their
energy bills. Governor Lynch sees other advantages, including a cleaner
environment; savings achieved from lower emissions, stabilized energy
prices, and localized economic growth. According to Governor Lynch,
wood-fired generation is a natural choice for New Hampshire, although solar,
wind, and hydro production are also worth studying. Increasing renewable
woodfired generation would take advantage of New Hampshire’s ample wood
supply, encourage the responsible harvesting of lessergrade woods, and help
to preserve New Hampshire forests from development. Governor Lynch has
directed his Office of Energy Planning and the Department of Environmental
Services to develop a plan for meeting his goal.</p>
<p ALIGN="LEFT">Connecticut’s Governor Jodi Rell announced a plan to obtain
20% of all energy used and sold in Connecticut from clean or renewable
sources and a 20% reduction in peak demand. Governor Rell’s plan focuses on
increasing the use of biofuel in transportation and home heating, and
funding energy efficiency programs. Governor Rell also re-affirmed the
state’s commitment requiring state agencies and universities to purchase 20%
of their electricity from the state’s renewable energy portfolio Class I
renewable sources by 2010. Governor Rell has ordered an audit of state
agency and university power procurement and the preparation of a progress
report. She has also stated that funds will be made available to state
agencies to help them reach the State’s goals.</p>
<p ALIGN="LEFT">Vermont’s latest campaign to increase renewable production
focuses on small distributed generation. The Vermont Solar and Small Wind
Incentive Program, which was established in 2003, will receive a total of
$980,000 in new funding from the State of Vermont Department of Public
Service, Central Vermont Public Service Company, and Green Mountain Power
Corporation. The incentive program supports photovoltaic, solar hot water,
and wind installations by individuals, businesses, farms, schools and
municipalities. As part of the new funding initiative, special incentives
will be provided to farms ($4.50/watt up to $20,000) and low-income
multifamily housing developments ($3.50/watt up to $35,000). The funds
contributed by the State of Vermont come from the Vermont Clean Energy
Development Fund, which was established by the Vermont legislature in 2005
for the purpose of promoting the development and deployment of renewable
energy resources and combined heat and power technologies. The assets of the
fund come primarily from Energy Nuclear Vermont Yankee LLC and Entergy
Nuclear Operations, Inc., the owners and operators of the Vermont Yankee
nuclear power plant, under agreements with the Vermont Department of Public
Service. The Department expects the Entergy companies to contribute between
$6 and $7.2 million per year to the development fund through the year 2012.</p>
<p ALIGN="LEFT">On September 8, Governor Donald Carcieri of Rhode Island
outlined an energy plan that would rely upon hydroelectric and wave energy
to bolster that state’s renewable energy production. Governor Carcieri has
called for the state to increase its renewable portfolio requirement from
16% by the year 2019 to 20% by the year 2014. It is expected that several
hydroelectric and wind projects being developed in Rhode Island would cause
the state to reach 20% renewable production by 2011. According to the
governor, the state’s Office of Energy Resources has identified sites with
more than 10 MW of potential hydroelectric capacity, and is already
providing $500,000 to the developer of the Harris Mill Dam on the Pawtucket
River. The Harris Mill Dam is expected to begin operation in 2007 and to
generate approximately 10 million kWh of electricity per year. The Office of
Energy Resources is also conducting feasibility studies for developing
hydroelectric production at two other existing mill sites.</p>
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<p align="left"><font face="Arial">
<small>Robert A. Olson is a partner in the law firm of Brown, Olson &
Gould P.C.
which maintains a nationwide practice in energy law, public utility law and related
commercial transactions. He can be reached at:</small></font><p align="center">
<font face="Arial"><small><font color="#0000FF"><b>Brown, Olson & Gould, PC</b></font><br>
2 Delta Drive, Suite 301<br>
Concord, NH 03301 <br>
<br>
<a href="mailto:[email protected]">[email protected]</a> | (603) 225-9716<a href="mailto:[email protected]"></a></small></font>
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