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© 2012 Associated Industries of Massachusetts Energy Policy Commission February 22, 2013 Robert A. Rio, Esq. Senior Vice President and Counsel Associated Industries of Massachusetts
© 2012 Associated Industries of Massachusetts Ponder this Question What if our energy policies, renewable energy goals and focus on GHG reductions do not save the ice caps from melting, the polar bears from disappearing or stop the sea level from rising but rather actually speed these up and as a bonus bankrupt us along the way?
© 2012 Associated Industries of Massachusetts Facts MA has the highest or near the highest electrical costs http://www.eia.gov/electricity/monthly/epm_table_grapher.cfm?t=e pmt_5_6_bhttp://www.eia.gov/electricity/monthly/epm_table_grapher.cfm?t=e pmt_5_6_b StateCommercialIndustrial MA13.8712.93 CA13.7410.82 AZ9.596.58 NC8.628.14
© 2012 Associated Industries of Massachusetts Not Facts High electricity costs is due to distance from source of fuel Companies don’t care about rates, just bills Renewable power will reduce costs Price volatility is important Green Power is green
© 2012 Associated Industries of Massachusetts Goals of the clean energy revolution Every one of these has been mentioned 1.Reduce GHG Here? US? Global? Life Cycle Analysis on Cape Wind? Rare Earth Mineral mining for renewables has huge GHG impact 2.Create green jobs/net jobs Who do you throw off the bus 3.Keep money in Massachusetts But what if capital leaves Massachusetts 4.Reduce transmission, congestion costs Salem is classic case 5.Use less energy (energy often used synonymously with electricity) 6.Meet Goals Get awards/bragging rights Make goals so they are meaningless What is real output
© 2012 Associated Industries of Massachusetts You’re right, But…
© 2012 Associated Industries of Massachusetts Unsurprising result Uncoordinated programs –Real agenda is subsidies –No long term planning – transmission alternatives –Gas line capacity ENORMOUS Amount of money being spent “Facts” used to justify programs are laughable Political pressure to favor technologies No third party verification of results Little likelihood of meeting goals at rational cost Little gain, lots of pain
© 2012 Associated Industries of Massachusetts Solution Transition to a low-carbon economy using all the tools in the toolbox –Base it on sound economic principles - Hydro, wind, gas Transmission/transmission alternatives, both gas and electric Focused EE and renewables to avoid building power plants or adding transmission Open up to alternative ideas for solving problems –CNG –Transportation beyond EVs Identify all programs and costs Use metrics that make sense Don’t release a press release for one-year Don’t take credit for things you didn’t do
© 2012 Associated Industries of Massachusetts Case Study Profiled in the Boston Globe, May 23 South Lee, Ma, 127 jobs Number 6 oil, Converted to gas –30% reduction in CO2 emissions –90% reduction in SOX –10% Reduction in NOX No awards, no state incentives, no subsidies
© 2012 Associated Industries of Massachusetts Case Study Replacing HCFC in refrigeration units uses MORE energy but results in LESS GHGs No money for rebates
© 2012 Associated Industries of Massachusetts “You are entitled to your opinion. But you are not entitled to your own facts.” Daniel Patrick Moynihan (D-NY)
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