ESG & Industry Updates

Maine-based bluShift Aerospace successfully launched and landed the first commercial rocket powered by biofuel on January 31st of this year. Not only did the rocket successfully launch running on bio, but it did so at a staggering -14 degrees fahrenheit! 

Central Maine Power's proposal for a 145 mile electricity transmission line through the Western part of the State has cleared the final regulatory hurdle. Central Maine Power (Avangrid) recieved a Presidential Permit from the US Department of Energy for their $950 million dollar "New England Clean Energy Connect" (NECEC) Project to be able to cross the Canadian Border. (As an aside, if you want to read about the project in detail their website is a great resource: NECEC ) 

The new Administration is off to a running start, as Wednesday saw a flurry of Executive Orders come out, many of which deal with climate change, and the oil & gas industry. There are a lot of items, and they are all pretty detailed with substantial backstory, but we are going to try and briefly touch on the three major items relevant to the industry and quickly go over the main points (or, try to at least!) 

Last week Massachusetts Governor Charlie Baker vetoed a bill that committed Massachusetts to reducing carbon emissions to 85% of 1990 levels over the next 3 decades, with the goal being a 100% reduction versus 1990 levels. Included as well are interim 5 year goals, one of which is a 50% reduction by 2030. The ultimate goal of the bill is requiring Massachusetts to become carbon neutral by 2050 - which is a goal Baker has publicly endorsed throughout his tenure.

Controversy is brewing on the issue, of all things, of wood pellets. 

With the Oil Industry, Climate Change, and emissions top of mind after last night's Presidential Debates, we thought it was a good time to review what Massachusetts, New England, and specifically, the Oil Industry in the Northeast have been doing on emissions and climate change recently. 

The newest passenger boat for Maine's Casco Bay Lines will be running a diesel-electric hybrid propulsion engine. The hybrid will be handling the Portland to Peaks Island run, fully on electricity. The diesel engine will function as a backup, or be engaged for trips longer than the normal run. This assigned route is approximately 2.5 miles, which should allow the ferry to travel one way, charge at docking (~10-15 minutes) and run the return trip on electricity as well. 

Even as Coronavirus disrupts business as usual, talks regarding the TCI (Transportation Climate Initiative) continue via video conference and email amongst the involved 12 States & Washington DC. 

Back in April the NERA (New England Ratepayers Association) filed a petition that would have changed the way so called "net metering" works for solar energy generation, by essentially considering the excess "buyback" solar energy sold back to utilities as constituting a wholesale transaction, governed by the established rates. (We discussed that here: "Net Metering Under Threat" ).

This April, the New England Ratepayer's Association (NERA) filed a petition asking the Federal Energy Regulatory Commission (FERC) to "declare exclusive federal jurisdiction over wholesale energy sales from generation sources located on the customer side of the retail meter (rooftop solar), and order that the rates for such sales be priced in accordance with public law.”