October 24, 2016
BY Bill Bell
“Clowns to the left of me, jokers on the right; here I am, stuck in the middle with you.” (Stealers Wheel, 1972)
Biomass Magazine has previously reported the visit of Maine’s Biomass Study Commission to major biomass generating sites in Maine (Bob Cleaves, Biomass Power Association, October column.) One objective of the commission will be to propose legislation enabling such sites to sell electricity not only to the grid, but also to sell directly to adjacent customers. In one unique instance, ReEnergy is able to supply neighboring Stratton Lumber. In another case, however, ReEnergy has been unable to sell directly to fellow occupants in the Ashland industrial park, including Northeast Pellets. These firms are now confronted with a major electric rate hike at the hands of their regional grid supplier.
Current Maine law, adhering to the “regulated monopoly” principle governing many utilities, generally forbids a small energy generator to sell other than to the grid. The utility firms serving Maine are paying close attention to the work of the Biomass Study Commission, and without doubt, are already thinking ahead to the post-election membership of the legislature’s Energy and Public Utilities Committee. The Biomass Study Commission consists largely of supporters of Maine’s forestry industry. The legislative committee deciding upon the commission’s recommendations will, to put it mildly, have a very different composition.
The foremost objective of our Maine Pellet Fuels Association is creating a thermal class in Maine’s Renewable Portfolio Standard. Renewable “standards” created about 10 years ago—at the same time that many states sought to decrease reliance on fossil fuels—carved out special incentives for electricity generated by tidal, solar, wind, and hydro power. No provision was made for renewable generation of heat. In the past three years, New Hampshire, followed by Massachusetts, added biomass heat to its incentivized portfolios, creating a potentially large growth market for our pellet and wood chip producers and heating equipment firms. The Biomass Study Commission recognizes the potential here. In fact, this proposal is listed as Issue I-A on the commission’s current work sheet.
As is the case with creating the biomass electric microgrids described above, however, the commission’s recommendations on biomass thermal incentives will need legislative enactment. And here’s where the going probably gets tough.
In 2013, on the heels of New Hampshire’s passage of renewable energy credits for thermal biomass, our association worked with a logger/state senator from the northern tip of Maine to introduce a bill patterned on New Hampshire’s new law. BTEC leader Charlie Niebling was accorded considerable attention by our legislature’s Energy and Utilities Committee as he explained the New Hampshire bill. The complexity of the subject became daunting, however. And our bill sponsor, Sen. Troy Jackson, became the target of our governor’s most egregious rant of the (last) year. (Political footnote: Sen. Jackson has since run for Congress in 2014, lost in the Democratic primary, been named Democratic National Committeeman from Maine, been an outspoken “Bernie” leader, is now likely to regain his former state Senate seat, and could emerge in 2017 as president of the Maine Senate.)
With complexity being the obstacle to passage of our thermal biomass bill, we agreed to reduce the legislation to a simple requirement that Maine’s Public Utilities Commission study the subject. Our governor, however, vetoed even this measure at a time—now long gone—that his vetoes were being sustained.
The outcome of the Biomass Study Commission’s work depends on politics. Northern Forest Center, a very savvy nonprofit working in support of the rural economies of the northern tier of the Northeast, coauthored and generated a long list of community and industry supporters of our letter in support of thermal biomass credits. The commission must report to the Maine Legislature by Dec. 5. By that date, it is likely that Democrats will be in the majority in our state Senate as well in in the House. The cochair of the Biomass Study Commission may well be elected to one of these Senate seats. But will our governor, who has refused to allow officials of his administration to participate in the commission’s work, veto any legislation incorporating the commission’s recommendations, no matter how important to our state’s rural economy?
Stay tuned, fingers crossed.
Author: Bill Bell
Executive Director, Maine Pellet Fuels Association
feedalliance@gwi.net
Tel.207-752-1392
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