In a surprising and heartening evolution, the organization that once signed up eight Massachusetts municipal utilities to purchase power from a proposed biomass power plant in Western Massachusetts now supports ending state incentives for biomass energy. With this, both entities that lobby and negotiate deals on behalf of Massachusetts municipal utilities now want to end such incentives.
Legislative Loophole
When Massachusetts removed woody biomass from its renewable energy portfolio standard (RPS) in 2022, that policy shift only affected investor-owned utilities. The state’s 41 municipally-owned utilities – called “municipal lighting plants” in state law, and referred to as MLPs for short – have always been exempted from the RPS. A 2021 climate law finally enacted a greenhouse gas emissions standard (GGES) for the MLPs, which has been generally hailed as a step in the right direction. However, that standard – the “MLP GGES” – included biomass in its definition of “non-carbon emitting” sources, even though biomass power plants emit more CO2 per megawatt-hour than coal plants. This definition meant that MLP purchases of power from wood-burning plants would be counted towards the required percentages of “non-carbon emitting sources” to meet the GGES, alongside solar and wind.
The GGES law was co-authored by Energy New England (ENE), a cooperative owned by six Massachusetts MLPs. At the time, ENE had been working for years to sign up MLPs with long-term power purchasing contracts that would finance Palmer Renewable Energy (“Palmer”), the proposed biomass plant that Springfield has been fighting for nearly two decades and continues to fight in court.
ENE’s legislation fit in with a generally pro-bioenergy position by the Baker administration, but provoked incredulous backlash. In fact, the Baker administration’s actions outraged and activated so many residents, organizations, and legislators that in 2022, the legislature removed woody biomass from the RPS altogether. Also in response to the controversy, policymakers delayed eligibility of biomass under the GGES law by five years (until 2026) and required the administration to study the health and climate impacts of bioenergy in the first half of 2023.
Five Years Later …
The statutorily required bioenergy study was never conducted, however, and that “five-year moratorium” on biomass’ inclusion in the MLP GGES ends on January 1, 2026. Thereafter, biomass will count as a “non-carbon emitting” energy source for MLPs. To close this loophole, Springfield-area legislators introduced legislation in 2023 to remove biomass from the MLP standard. That same year, thanks to organizing by residents of MLP communities supported by PFPI and others, ENE terminated all eight MLP power-purchase contracts with Palmer in time to avoid any financial penalties.
Key pieces of support for closing the MLP loophole are in place. This spring, Governor Maura Healey included language to fix the MLP biomass loophole in her own energy affordability bill. This June, Massachusetts Municipal Wholesale Electric Company, MMWEC – which negotiates and lobbies on behalf of many MLPs, generally the MLPs not covered by ENE – submitted testimony in support of the getting biomass out of the standard. While the Governor and MMWEC’s legislative positions are consistent with their longstanding positions on bioenergy, ENE’s evolution on the issue shows that pressure and education can help turn the tide on the viability of woodburning power plants. Here is a slide from ENE’s presentation to a member MLP at an August meeting:
ENE also submitted testimony in favor of the Governor’s bill that includes this legislative fix. With the Governor, ENE, and MMWEC supporting removal of the biomass incentive, the prospects are good for finally closing the MLP “non-carbon emitting” loophole.
