Region 1: EPA New England
Making the Energy-Environment Connection in New England
Note: EPA no longer updates this information, but it may be useful as a reference or resource.
By Robert Varney and
Jason Grumet
November 2001
Volatile gas prices. Heat waves and scattered power outages. Rolling blackouts in California. Given the spate of energy-related stories, it's hard to escape a sense that an energy storm is brewing. With almost daily headlines featuring acrimonious charges and countercharges from price-gouging to excessive environmental regulation, people in New England are understandably asking: "Could a California-type energy crisis happen here? And if so, must we roll back environmental rules to keep our lights on?"
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Fortunately for New England, the answer to both questions is no. Even though the last year has seen the words "crisis" and "energy" together almost as often as "Big Dig" and "traffic," New England's energy and clean air future looks remarkably bright. That's not to say we haven't all felt the pinch of higher prices. And it doesn't mean we should kick back and relax, either. But thanks to good planning and a bit of good luck, our region can expect reliable power supplies and cleaner air for the next several years.
How did we achieve this favorable position? Back in 1996 and 1997, several of New England's nuclear plants were shut down unexpectedly, leaving the region with a serious electricity supply shortfall. What happened next is a good public policy story that is rarely heard. Instead of dividing into opposing camps, environmental regulators, electric grid operators, utilities and customers sat down together to figure out a way out of the crisis. The result has been a win-win for the region – new power supplies were approved and air quality standards were not compromised.
Five years later, those crisis-driven but relatively quiet conversations are still paying dividends. Since 1997, the U.S. Environmental Protection Agency and the New England states have approved air-quality permits for 25 new power plants, representing enough capacity (13,000 megawatts) to satisfy more than half of the region's typical peak summertime demand. Northeastern states are moving aggressively to continue reducing pollution with innovative, cost effective multi-pollutant approaches. And businesses are investing more in energy efficiency. In New England alone, investments in the agency's Energy Star program have saved organizations and consumers more than $1.9 billion on their energy bills. And more savings are expected as Energy Star expands to other business sectors such as supermarkets and healthcare facilities. Among the food retailers already participating is Shaw's Supermarkets whose energy efficiency investments have led to a 10 percent reduction in greenhouse gas emissions and annual energy savings of $3.7 million. If all of these trends continue, New England could find itself with an electric power surplus in just a few years.
This is great news, but there is still work to be done. Despite years of progress, familiar problems persist: too many of our citizens still get sick from smog-filled air and too many of our forests and lakes are damaged by acid rain, mercury and other pollutants. And new challenges like global climate change loom for New England, the nation and the world. At the same time, reliable electric power is essential to our region's economic growth, and while energy efficiency and conservation are the most cost- effective paths to better reliability, new sources of electricity must also be part of the equation.
New England is well positioned to approach this challenge – not from the standpoint of intractable trade-offs – but rather as a source of tremendous opportunity. Environmental regulators understand that New England's power supply must be reliable and affordable. New Englanders also understand and appreciate the fact that environmental quality and economic prosperity go hand in hand. As one prominent New England business leader recently put it: "Clean air is good for business." The key to the future of electric reliability and clean air in New England will be remembering these shared goals and our past success in working together to achieve them. If we do that, we can keep New England's lights on and its air clean for many years to come.
Robert Varney is regional administrator of EPA's New England Office and Jason Grumet is executive director of Northeast States for Coordinated Air Use Management (NESCAUM), a nonprofit organization representing eight Northeast states on air quality.