A Stakeholder Action Plan for Greenhouse Gas Reduction in Rhode Island

Dr. Steve Bernow
Dr. Jonathan Raab

Beginning in the fall of 2001 and continuing since then, the Rhode Island Department of Environmental Management and the State Energy Office have been working with a group of over thirty stakeholders from business, industry, citizen groups, environmental organizations and other government agencies to develop a Greenhouse Gas (GHG) Action Plan for Rhode Island. This process was precipitated largely by the growing international consensus among scientists and policymakers that the build up of GHGs in the atmosphere, primarily carbon dioxide from combustion of fossil fuels, is warming the planet at a rapid rate. Continuation of this trend under business-as-usual conditions and policies will likely have adverse impacts throughout the world and on Rhode Island’s environment and economy.

The Rhode Island GHG Action Plan (Action Plan) process builds on the 2001 agreement among the New England Governors and Eastern Canadian Premiers (Governors/Premiers) to reduce GHGs in the region to 1990 levels by 2010, 10 percent below those levels in 2020, and by as much as 75 percent over the longer-term. In Phase I, over 60 individuals participated in sector-specific Working Groups to support the stakeholder process through discussion of GHG reduction options. Tellus Institute analyzed these options in scoping papers, detailing potential carbon emissions reductions, net costs and savings, and other benefits. The stakeholders adopted an Action Plan targeted to realize Rhode Island’s proportional share of the regional targets established by the Governors/Premiers, i.e., the same percentage reductions below Rhode Island’s Baseline emissions path. In Phase II there has been further research, analysis and program design for several high priority program and policy options. It is anticipated that in Phase III implementation will begin of the highest priority options, and implementation plans for other options will be designed.

Figure 1 shows our projections of the baseline path for Rhode Island’s GHG emissions (expected absent new initiatives), and a path for its proportional share of the Governors’/Premiers’ regional targets. The figure indicates the gap that needs to be filled with initiatives, programs, and policies to meet those targets, which by 2020 would need to be about one-third below the baseline level in that year.

The stakeholders agreed to include 52 program and policy options in the Action Plan to begin to fill this gap. Forty-nine of the options were consensus options endorsed by all the stakeholders, and 49 are primarily in-state options, with only three requiring regional or national implementation. Of the full set of options, 25 are targeted at buildings and facilities, 11 at transportation, six at land use, six at energy supply, and four at solid waste. In addition to these 52 options, the stakeholders also identified numerous other potentially fruitful areas for Rhode Island to track and study for possible future inclusion in the Plan.

As can be seen in Figure 2, substantial carbon savings can be attained through implementation of these options. The In-State Consensus options are projected to almost meet the 2020 target of the Governors/Premiers, and the In-State options as a whole (Consensus plus Non-Consensus) could meet the 2020 target. With national and regional options added, the target could be exceeded with or without the non-consensus In-State options. The sharp downward trend approaching the year 2020 indicates that continuation of these options would have additional reductions in the following years.

The analysis shows that these reductions could be achieved while producing substantial cumulative net economic benefits to Rhode Island, with a cumulative net economic benefit of over $700 million for the In-State options. This occurs largely because many of the options identified in the Action Plan also save energy and those savings exceed capital and operation and maintenance costs for the energy-saving technologies and practices. There are also savings due to reductions in other air pollutants.

Figure 3shows the contribution of each option in the Action Plan to the overall reductions in 2020.

The Stakeholders agreed that the Action Plan should be reviewed every three to five years to ensure that it embodies the best technologies and program/policy designs, as well as the right mix of local, regional and national initiatives and to adjust its targets and Action Plan accordingly. Because there will be an on-going need to coordinate among a wide range of entities including state agencies, local government, the legislature, businesses, and citizens, Rhode Island should consider having one entity such as a state agency serve in a shepherding (i.e., coordinating and tracking) role.

In Phase II, five of the Action Plan options were subjected to refined quantitative analysis, policy design, and implementation plan (with draft legislation in some cases). These were:

• Renewable Portfolio Standard (RPS) for electricity supplied to Rhode Island consumers,
• Vehicle Efficiency Incentive Program (VEIP), setting miles per gallon-based fees and rebates for vehicle purchases,
• Tax credits for energy efficiency in the residential and commercial sectors,
• Monitoring and targeting energy efficiency opportunities in industry, and
• Incentives for performance contracting to realize reductions in fossil fuel demands in commercial, government and industrial facilities.

With the conclusion of Phase II and beginning of Phase III, in which additional options will be taken through refined quantitative analysis, policy design, and implementation planning, Rhode Island is on its way to meeting the 2010 and 2020 targets – assuming a leadership role in New England. However, to meet the longer term 75 percent reduction targets will likely require enhanced regional and national coordination and initiatives, as well as technological improvements.

Steve Bernow is a vice-president and the director of the Energy Group and Manager of the Energy and Environment Program at the Tellus Institute and can be contacted at sbernow@tellus.org. Jonathan Raab is president of Raab Associates, Limited, and can be reached at raab@raabassociates.org. The Rhode Island Greenhouse Gas Process has been funded by the U.S. Environmental Protection Agency, the U.S. Department of Energy, the Institute for Environmental Conflict Resolution and the State of Rhode Island. The state hired Raab Associates, Ltd. to provide facilitation and project management services, and Tellus Institute to provide consulting and modeling services on technical and policy issues.