Canadian RECs Inching into Vermont
It's only one law in a small state, but the doings in the Vermont Senate are interesting nonetheless. The proposal to qualify the environmental attributes of Canadian hydropower is making its way into law, though unique circumstances in one state may be the main reason.
The law that would count Canadian hydropower as renewable energy has not passed and it's too soon to draw conclusions for the other five New England states and neighboring New York, but it's an idea that bears watching.
The issue is complicated by a few factors. One is that this isthe same senate that recently voted to close the Vermont Yankee nuclear plant next year. The troubled plant is up for relicensing and has had a controversial record in the state.
Senate Natural Resources and Energy Committee Chairwoman Virginia Lyons said that the change in the law was requested by the Vermont utilities as part of their negotiations for a new deal to buy power from Hydro-Quebec. The power would be more valuable to Hydro-Quebec with the environmental attributes, as the utility and Vermont already have a power purchase contract that is nearing completion.
Hydro-Quebec is a vital source of power for the region, especially in summer. Cross-border electricity trading goes back decades. And there are several proposals to expand transmission links. But the renewable energy credits (RECs) for Canadian hydropower do not qualify under the states' renewable portfolio standards.
So far, Maine has committed to its own green energy generation with a reliance on new wind power. Rhode Island's offshore wind program is stalled and Cape Wind in Massachusetts still faces legal challenges. Some biomass plants are being built.
The implications for New York and New England - the worst-case scenario, if you will - is that states may see a similar policy as a quick fix to meet their renewable energy targets if domestic supplies are too expensive or too slow to develop. But legislative actions in each state would have to be pursued first.
One concern expressed by renewable energy and environmental advocates is Canadian RECs could undermine domestic supplies and kill off local development.
It's too early to see the start of a trend, but stay tuned.
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