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A climate trust fund proposed in Portland, Maine, would use money from the sale of city-owned renewable energy credits to kickstart further efforts to cut local carbon emissions.
Portland is among the hundreds of U.S. cities that have adopted ambitious climate goals in recent years. Now, in search of sustained funding to meet those targets, many are turning to novel fiscal approaches, such as the one approved in Portland last week by the first of two city council committees.
The ordinance, if passed by the full council, would establish a new climate fund next year using money primarily from the sale of renewable energy credits, or RECs, from city-backed solar projects, such as at the Portland International Jetport and on the former city landfill.
The money could help pay for consulting work on emissions-cutting or resiliency projects, climate grant-related costs or local matches, community micro-grant programs for climate-friendly improvements, or other expenses for the city sustainability office.
“This is a new source of funding that can get invested in other city projects to, again, save more money,” said Bill Weber of Portland Climate Action Team, a local Sierra Club offshoot that’s been pushing for the city to make progress on its climate plan. The city, along with neighboring South Portland, adopted a shared target in 2020 of cutting emissions 80% over 2017 levels by 2050.
Proceeds from the sale of RECs would amount to about $300,000 to $400,000 a year, according to a memo from Portland sustainability director Troy Moon. It’s not enough to entirely fund major construction projects, Moon said, but “could provide leverage to launch such projects.”
The fund would also include money from “penalties paid for violations of sustainability related ordinances, private donations, proceeds from grants, and voluntary appropriations made by the Council,” he wrote.
Weber describes the proposed fund as “seed money for larger savings.” He suggested a study of solar potential across city schools’ rooftops as one hypothetical use, with results that could be used to attract developers, choose priority projects and speed along their implementation.
“A lot of these projects will pay for themselves over time, but you need to do some engineering,” he said.
Peyton Siler Jones, the Portland-based interim director of sustainability with the National League of Cities, said creative approaches are essential to creating long-term funding streams for local climate work.
“Figuring out how to have those savings not just go to the general fund, but go to a special climate fund to continue to implement climate projects, is one example of an innovative solution,” she said. “It’s exciting to see that being something that can be scaled and replicated in smaller communities.”
Siler Jones said Portland’s fund could be used to pay a consultant to write grants that could bring in federal funding. Or, she suggested as a hypothetical example, it could pay sustainability-related cost differentials on an affordable housing project — helping the developer by covering the extra cost of building materials to install heat pumps or funding a subcontractor to oversee climate-friendly engineering.
While she wasn’t sure whether this idea is happening anywhere as of now, she said the general principle of dedicating city funding to climate efforts is becoming more popular. Boston now puts at least 10% of all new capital funding toward “open space, infrastructure, and facilities projects that are climate resilient or contribute to making the City more environmentally friendly,” according to the city’s website.
Washington, D.C., has a long-running sustainable energy trust fund seeded with fees on electric, gas and fuel oil companies, as well as the sale of credits from the Regional Greenhouse Gas Initiative. And in Ann Arbor, Michigan, millions in annual proceeds from a 20-year property tax increase adopted in 2022 go toward community climate projects.
The idea of using REC sales to seed the fund, as proposed in Portland, involves a complicated trade-off.
The credits are an annual return for Portland’s investment in a given renewable energy project, essentially letting the city own proof of the progress on local emissions goals made by that investment. Selling those credits means selling that proof, and therefore that small piece of progress, in a given year.
“We have to be really clear that if we’re making the sale, we’re not using renewable energy per se,” Moon told city councilors before a committee vote on the proposed fund last week. “But… there’s an opportunity to use those RECs to fund climate action that may otherwise not be able to happen, and that also provides other benefits, like resilience and cleaner air and improved infrastructure.”
In comments to the council’s sustainability committee on the proposed fund, Weber argued that it’s imperative not to sell RECs to benefit anything other than continued, more substantial emissions cuts, meaning, he said, that the money should not be used for sustainability office salaries or resilience work.
“From my perspective a ‘trust’ represents a sacred commitment that is made to future generations,” Weber wrote. “Spending the revenue from the RECs on anything that doesn’t generate a material return on that investment breaks the trust.”
Before voting to advance the proposed fund last week, Portland city councilor Anna Bullett said she agreed that this funding should remain set aside for clear progress on city climate goals, not necessarily more general operations.
“We’re already paying for everyone’s salaries as is,” she said. “Let’s try to protect that money that we already budget for every year and not backfill it with this instead.”
WIND: The developers behind the 704 MW Revolution Wind project install the first foundation needed for the facility’s 65 turbines. (Providence Journal)
ALSO:
CLIMATE:
OIL & GAS: Pennsylvania lawmaker introduces legislation to bar local governments from receiving any state oil revenues if they sue oil companies, responding to a climate lawsuit filed by Bucks County against the fossil fuel industry. (E&E News, subscription)
TIDAL: The firm testing tidal energy turbines on Lake Erie says their prototype is better than that of their competitors because it doesn’t need to be plunged as deeply and is less visually intrusive. (Go Erie)
GRID:
SOLAR:
ELECTRIC VEHICLES: New York City records show that neighborhood stores and major online retailers alike are ignoring summons and cease and desist orders issued over uncertified e-bike battery sales. (The City)
BUILDINGS: In response to climate protests, a Baltimore art museum drafts a sustainability plan that its director says will hopefully include energy efficiency measures and rooftop solar. (Baltimore Sun)
COMMENTARY: A New Jersey doctor argues a free market approach to developing more clean energy doesn’t account for the “lives lost and illnesses caused by fossil fuel pollution.” (NJ Spotlight)
SOLAR: Solar developer Silicon Ranch’s planned 110 MW solar farm for customers of a Tennessee electric cooperative establishes a bulwark for community driven solar in the heart of the largely renewables-reluctant Tennessee Valley Authority’s service area. (Canary Media)
ALSO:
OIL & GAS:
CLEAN ENERGY:
ELECTRIC VEHICLES:
WIND: A newly completed 160 MW wind farm near Houston, Texas, was designed to withstand the region’s weather, including safety features for hurricanes. (KTRK)
NUCLEAR: A company will use a supercomputer at a Tennessee laboratory to train its artificial intelligence tool to guide nuclear power companies through applications for construction and operating licenses. (Knoxville News Sentinel)
CLIMATE: Florida Gov. Ron DeSantis signs legislation to erase the phrase “climate change” from state policy and instead promote “an adequate, reliable and cost-effective supply of energy for the state,” even as the state feels the brunt of rising seas and warming temperatures. (Miami Herald, Associated Press)
GRID:
EMISSIONS: Virginia will likely see more days rated with poor air quality, due more to the recent revision of federal pollution standards than to increased pollution. (WHRO)
COMMENTARY: The electric vehicle industry’s recent slowdown represents just a temporary delay in the clean vehicle transition as oil prices continue to fluctuate and EV technology rapidly advances, writes a quality manager at a Kentucky factory. (Courier Journal)
MINING: Copper isn’t being mined quickly enough to keep up with U.S. policies for transitioning to electric vehicles and clean energy, creating a potential bottleneck for Michigan automakers unless recycling improves and deeper mines are tapped, a University of Michigan researcher says. (Bridge)
OIL & GAS:
PIPELINES:
CLIMATE: For the Great Lakes region, a repeat of 2023 this year is possible as wildfire smoke threatens to continue undoing decades of progress on air quality improvement. (Bridge)
COAL: The USDA hosts a two-day workshop in southern Illinois aimed at helping the region find new economic opportunities amid the decline of coal plants and mining. (WPSD)
CLEAN ENERGY:
EMISSIONS: American Electric Power is among the latest electric utilities to join a lawsuit challenging the Biden administration’s new rules for cutting pollution from coal and gas plants. (E&E News, subscription)
GRID: Wisconsin utility We Energies deploys high-tech acoustic cameras that scan distribution grid equipment to identify potential problems and improve reliability. (WISN)
UTILITIES: American Electric Power sells its distributed resources business that owns more than 300 MW of solar and storage projects across the U.S. for what will amount to about $315 million. (Utility Dive)
SOLAR: The U.S. has surpassed 5 million solar installations, with more than half of those coming online since 2020, according to a new industry report. (Power Magazine)
ALSO:
ELECTRIC VEHICLES:
OIL & GAS:
CLIMATE:
WIND: The developers behind the 704 MW Revolution Wind project off Rhode Island install the first foundation needed for the facility’s 65 turbines. (Providence Journal)
TRANSMISSION: Nevada advocates criticize the federal Bureau of Land Management for proposing that the Greenlink West transmission line run through a national monument while avoiding a mining site. (Nevada Independent)
JOBS: Community colleges around the country are offering training programs in clean energy technology, in response to a surge in job demand since the passage of federal climate legislation. (Associated Press)
CLEAN ENERGY: Midwest states have received nearly $30 billion in private investments to boost clean energy manufacturing since Congress passed the Inflation Reduction Act in late 2022. (Inside Climate News)
UTILITIES:
POLITICS: Ohio’s HB 6 scandal remains politically fraught for GOP Attorney General Dave Yost, who helped to prosecute four people involved but has ignored questions about his name surfacing in a federal trial and remained silent about the law itself. (Ohio Capital Journal)
OIL AND GAS: North Dakota’s top oil and gas regulator, Gov. Doug Burgum and former President Trump during an oil and gas event Thursday railed against government regulations’ potential to hold back the industry. (North Dakota Monitor)
SOLAR:
TRANSPORTATION: The influx of electric bikes in Minnesota and elsewhere are challenging cities and transit agencies to improve bike parking, bus bike racks and more. (MinnPost)
ENVIRONMENTAL JUSTICE: Michigan officials announce $12 million more in funding to improve local health, monitor pollution and improve indoor air quality in low-income neighborhoods and communities of color. (Michigan Advance)
ELECTRIC VEHICLES: Ohio Gov. Mike DeWine announces nearly $16 million more for electric vehicle charging stations that moves the state closer to a goal of having public stations available every 50 miles. (WLWT)
WIND: The supervisor of a northwestern Iowa airport raises concerns about a proposed wind farm’s potential to disrupt helicopter ambulances and other flights. (Radio Iowa)
STORAGE: Ohio regulators approve plans for an 85 MW battery storage facility outside Dayton. (Daily News)
NUCLEAR: The company working to reopen a shuttered southwestern Michigan nuclear plant has hired about 150 people since the effort began and now employs more than 360 people at the site. (WOOD-TV8)
COMMENTARY: An Ohio clean energy advocate says utility-scale solar projects can play a vital role in helping the state meet a forecasted spike in electricity demand. (Columbus Dispatch)
COAL: The federal Bureau of Land Management proposes ending new coal leasing in the Powder River Basin in Wyoming and Montana following a court order requiring the agency to redo a Trump-era land use plan. (WyoFile)
ALSO: Utah lawmakers hold a special session to tweak a new bill allowing the state to buy a retiring coal plant to extend its life. (Utah State Dispatch)
TRANSITION: New Mexico advocates urge regulators to require the state’s largest utility to develop a large-scale solar array in the northwest part of the state to replace generation and school funding lost with the 2022 closure of the San Juan coal plant. (Albuquerque Journal)
UTILITIES: California lawmakers kill a bill that would have required legislators to review a controversial new fixed electric utility fee. (Los Angeles Times)
EFFICIENCY: Portland, Oregon’s climate action fund plans to invest $140 million over the next five years on efficiency upgrades for low-income households. (Washington State Standard)
SOLAR:
OIL & GAS:
MINING:
TRANSPORTATION: Colorado Gov. Jared Polis signs several bills creating new channels to fund public transit, including an oil production and a rental car fee. (Loveland Reporter-Herald)
HYDROGEN: An Oregon natural gas utility unveils a blue hydrogen-fuel production project that incorporates captured carbon into asphalt. (news release)
POLICY: Vermont lawmakers pass a bill making utilities purchase only renewably sourced power by 2035, though the governor is expected to veto the bill over cost concerns. (Seven Days)
ALSO: A top Connecticut Democrat says he intends to force a vote on two bills that Republican lawmakers want to block, including one that declares a climate crisis in the state. (CT Mirror)
FOSSIL FUELS:
SOLAR:
BUILDINGS: Pennsylvania lawmakers advance minimum appliance efficiency standards that would conserve enough energy to power more than 56,000 homes in a year. (WTAJ)
BIOENERGY: A trio of developers detail plans to bring a combined heat and power system to northern Maine that would be fueled by waste wood from the state’s forest industry and “enabled by super-critical carbon dioxide.” (Mainebiz)
ELECTRIC VEHICLES: Six newly installed electric vehicle fast chargers at a New York City wastewater facility help the city reach 2,000 municipal chargers. (news release)
TRANSIT: Although New York City is poised to kick off traffic congestion pricing next month, similar ideas in Boston are having a tough time getting off the ground. (Boston Globe)
WIND: The head of an anti-wind group files an open meetings law complaint against Nantucket over a wind development working group’s meeting that she says should’ve been public. (Nantucket Current)
RENEWABLE ENERGY: New York energy officials grant $175,000 to a Finger Lakes-area town to help it continue undertaking renewable energy and decarbonization projects. (Finger Lakes Times)
COMMENTARY:
SOLAR: A northern Maine community of around 11,400 homes and businesses was able to run on only solar power last week for about 12 cumulative hours, a first-ever occurrence for utility Versant. (Maine Public Radio)
OFFSHORE WIND: New Hampshire lawmakers and business leaders want state energy officials to take a more active role in encouraging offshore wind development in the Gulf of Maine compared to the “market-based approach” to electricity decarbonization being used. (NHPR)
GRID:
ELECTRIC VEHICLES:
TRANSPORTATION:
GAS: A Connecticut county’s farm bureau wants the state to support more anaerobic digesters on farms to turn wasted food into electricity, heat and fertilizer. (CT News Junkie)
CLIMATE:
UTILITIES: A consortium of four southeast Pennsylvania counties signs a five-year deal with a retail energy supplier to help them purchase more renewable power. (WHYY)
HYDROPOWER: Both federal- and state-level public comment periods are open this summer as the lengthy relicensing process draws closer to an end for three hydropower dams in Massachusetts’ Franklin County. (Mass Live)
TIDAL: Federal energy regulators grant an eight-year license to a nonprofit firm to test out tidal energy turbines in the Cape Cod Canal. (Cape Cod Times)
COMMENTARY: The Chesapeake Bay Foundation’s former president encourages Marylanders to ditch gas-powered landscaping equipment to reduce emissions and noise pollution. (Baltimore Sun)
SOLAR: While a federal database shows around 0.02% of U.S. cropland is used for large solar projects, an analysis of four Midwest counties reveals much higher penetrations, worrying some farmers and advocates. (Reuters)
WIND: Wind turbines only take up about 5% of the land where they’re built, meaning there’s room to co-locate farms and other facilities below them, a peer-reviewed study finds. (Washington Post)
OIL & GAS: Advocates suggest establishing a new tax on oil and gas production in the world’s wealthiest countries, with a report finding the charge could raise $720 billion for climate mitigation by 2030. (Guardian)
POLITICS:
GRID: The U.S. power grid performed better during cold snaps this January than it did during winter storms over the past few years thanks to grid operators’ improvements, a report finds. (Utility Dive)
ELECTRIC VEHICLES:
GEOTHERMAL: A Texas company uses software and sensor-equipped drilling tools to install geothermal heating and cooling systems in spaces previously considered too small to house such projects. (Canary Media)
CLEAN ENERGY:
CLIMATE: The Southeast faces one of the most rapid sea level surges in the world, an analysis finds, combining with increasingly severe storms to create epic floods. (Washington Post)
EFFICIENCY: Advocates laud a new Virginia law that strengthens energy efficiency standards and mandates the development of a standardized test to measure the cost effectiveness of proposed efficiency programs. (Energy News Network)
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