Problem, Reaction, Solution: a Massachusetts Government Playbook

Step 1: Create the Problem

On July 21, 2022, the Massachusetts Legislature passed the 2022 Climate Act under the auspices of an “emergency act” to achieve its goals under the 2050 Clean Energy and Climate Plan (CECP), which, among other things, authorized:

DOER [Department of Energy Resources] and the Massachusetts Clean Energy Center (MassCEC) to conduct a study (“the Study”) to provide:

An overview of the existing energy storage market in the Commonwealth;

A market report focused on emerging mid- and long-duration energy storage technologies (“MDES” and “LDES,” respectively) and;

A study concerning the potential benefits of MDES and LDES technologies to Massachusetts ratepayers as the Commonwealth seeks to achieve its goals under the 2050 Clean Energy and Climate Plan (“CECP”) .

“The Study” determined:

The deployment and use of energy storage systems is a critical and cost-effective strategy that the Commonwealth should encourage to meet its goals under the 2050 CECP.

Throw in a big fat juicy carrot: The 2022 Climate Act also provided grants to encourage the installation of energy storage technologies (i.e., battery farms) at public institutions.

SECTION 13. Said section 8 of said chapter 23J, as so appearing, is hereby further amended by striking out the third sentence and inserting in place thereof the following sentence:- The grants shall include matching grants to such public institutions of higher education, municipally-owned institutions of higher education, public elementary and secondary schools and such vocational technical schools for the development of small-scale renewable clean energy generating sources, energy storage technologies, energy efficiency innovations and energy transmission and distribution innovations …

Step 2: Reaction

Cities and towns partnered with power providers and began planning to use these new energy storage technologies to power their community public spaces, such as town halls and schools.

Amid capacity constraints, Massachusetts munis get serious about batteries | Latitude Media

May 2, 2024 (excerpts)

Energy storage company Lightshift Energy will deploy a fleet of grid-scale battery systems across at least nine Massachusetts utilities. The move comes via a partnership with a joint action agency for municipal utilities.

The Massachusetts Municipal Wholesale Electric Company, which serves 20 locally-owned, nonprofit utilities in the state, issues tax-exempt revenue bonds to help its members finance grid projects, and will do so for up to 50 megawatts of Lightshift battery energy storage systems.

The utilities themselves vary greatly in size: between 10 MW on the system to 200 MW. That means that some utilities might end up developing more than one BESS site.

Several Energy Storage Projects in Massachusetts pre-date the 2022 Climate Act:

Sterling Municipal Light Department (SMLD): Installed a 2 MW, 3.9 MWh utility-scale battery project in 2016 and a 1 MW, 2 MWh battery project powered by a 1 MW community solar project, which went online in 2018.
Holyoke Gas & Electric: Operates the Mt. Tom Energy Storage System, a 3 MW, 6 MWh utility-scale battery paired with the Mt. Tom Solar Farm
Ashburnham Municipal Light Plant: Installed a 3 MW, 5 MWh lithium-ion battery project in January 2019.
Wakefield Municipal Gas & Light Department: Implemented a 3 MW, 5 MWh lithium-ion battery project in March 2019
Templeton Municipal Light & Water Plant: Launched a 1.6 MW, 3.2 MWh utility-scale battery project in May 2019.
West Boylston Municipal Light Plant: Operates a flywheel energy storage system (FESS), the first long-duration flywheel in the Northeast, which began operating on January 1, 2019.
Statewide Initiatives: Massachusetts has included behind-the-meter battery storage in its energy efficiency plan, aiming to drive the installation of 30-34 MW of behind-the-meter battery storage over three years (2019-2021)

After the passage of the 2022 Climate Act, things seemed to take a turn.

Concerns about siting these battery farm locations near residential and environmentally fragile areas emerged.

Cranberry Point Storage, 31R Main St., Carver, MA

Medway Grid Project, 49 Milford St., Medford, MA

Wendell group gives Comerford petition seeking pause on large-scale battery storage systems | Daily Hampshire Gazette

June 16, 2024

No Assault & Batteries presented the Northampton Democrat with signatures reportedly from at least 500 people asking Gov. Maura Healey “to order a freeze on the further review, permitting and installation of industrial-scale battery energy storage systems, including one proposed for a 51-acre forested site in Wendell, pending a full investigation of the impacts of such projects on public health, safety, and welfare.

The Wendell Project was eventually nixed, but not due to the concerns raised by the residents:

New Leaf Energy nixes controversial battery storage project in Wendell

August 6, 2024

Torda explained the federal government has implemented changes to the process of connecting generation and storage facilities to the electric grid. He said these changes are a net positive for the industry, but they make the proposed Wendell Depot Road project unfeasible.

There are also concerns about the lack of local control over the State’s strong-arming location siting decisions.

State gives green light to develop giant battery farm in Everett over mayor’s objections | The Boston Globe

December 13, 2024 (excerpts)

On Nov. 29, state energy and environmental affairs secretary Rebecca Tepper signed a final record of decision allowing the massive battery energy storage system — potentially the largest in New England — proposed by Texas-based Jupiter Power to advance in permitting. The project, known as the Trimount Energy Storage Facility, will now be reviewed by the state Department of Public Utilities, which can allow energy projects to bypass local site-plan reviews.

“We feel that being across the river from the Hancocks and the State Streets and all the other beautiful buildings [in Boston], I see that we can do a lot better than a 20-acre battery farm that generates little taxes,” DeMaria said.

DeMaria, however, signaled that he still plans to fight the Trimount project, even while working with Davis on planning other aspects of the area’s redevelopment, and alluded to high-profile fires that have occurred at several other lithium-ion battery farms.

Step 3: Provide a Solution

State announces $3.5 million fund for stakeholders to intervene in the utility siting process | Commonwealth Beacon

December 17, 2024 (excerpts)

Energy and Environmental Affairs Secretary Rebecca Tepper said Monday that the administration is working on regulations over the next year to create and manage the grant program, funded mainly through utilities assessments with up to $3.5 million available annually.

A sweeping climate bill was signed into law in November, months after disagreement between the House and Senate dragged negotiations past the end of the formal Legislative session in July.

The law empowered two government arms – the Office of Environmental Justice and Equity and the Division of Public Participation at the Department of Public Utilities – to ensure that individuals, local organizations and municipalities can participate in the siting and permitting process. It also laid out a broad description of an “Intervenor Trust Fund” to help stakeholders pay for lawyers and independent experts.

To be eligible for the grants, the individual, organization, or municipality would need to be able to meet the legal standard to be an intervener.

Limited to $150,000 for each participating grantee, or $500,000 per docket

*Scratches head*

Let’s ask the machine…

Perplexity Query

If a new grant program is to be funded mainly through utility assessments, will consumer rates rise?

Answer:

If a new grant program is to be funded mainly through utility assessments, consumer rates will likely rise. Here are some key points to consider:

Impact on Customer Bills – Utility assessments are typically passed on to consumers through higher utility bills. When utilities need to fund new programs or initiatives, they often do so by increasing the rates charged to their customers

Affordability Concerns – Increasing utility rates can have regressive impacts, particularly on low-income households, which may already be struggling with high energy burdens. Utilities must consider the affordability of their rate structures and the potential impacts on vulnerable customer segments.

Rate Design and Communication – Effective rate design and clear communication are crucial in managing customer expectations and minimizing negative reactions to rate increases. Utilities must provide detailed information on how the rate increases will be used and how customers can manage their bills.

In summary, funding a new grant program through utility assessments will likely result in higher consumer rates, emphasizing the need for transparent communication and a clear demonstration of the benefits to maintain customer trust and satisfaction.¹

Who benefits from this boondoggle?

MMWEC (Massachusetts Municipal Wholesale Electric Company)

In 1976, MMWEC became a non-profit, public corporation and political subdivision of the Commonwealth of Massachusetts that is empowered to issue tax-exempt revenue bonds to finance ownership interests in energy facilities. Twenty Massachusetts municipal utilities are Members of the MMWEC organization and 30 are Participants in MMWEC’s Power Supply Projects.

and Lightshift Energy

Ludlow, MA – April 25, 2024 – The Massachusetts Municipal Wholesale Electric Company (MMWEC), the Commonwealth’s designated joint action agency for municipal utilities and Lightshift Energy, a leading energy storage project developer, owner and operator, today announced a first-in-kind program for the industry. Following a highly competitive solicitation process in late 2022, MMWEC chose Lightshift as its exclusive partner to deploy the state’s first jointly implemented fleet of grid-scale battery energy storage systems (BESS).

In summary:

The Massachusetts Legislature passes a bill to solve a supposedly dire problem, providing a financial incentive to communities
Under emotional manipulation through climate change fear campaigns and those financial incentives, communities sign on to the program
Communities quickly adopt a NIMBY mentality when they realize the lack of local control in the process and are overridden by the state
The benevolent State creates a grant program to pay for legal services so communities can feel like they are represented in the process
The grant program will be funded by a hike in energy rates, ultimately paid for by the people in the community who are supposedly benefitting from the new grant program

That, my friends, is a classic “Problem, Reaction, Solution” paradigm.