Clean Energy Advisory Committee 10-23-2024 CITY OF BEVERLY
PUBLIC MEETING MINUTES
BOARD OR COMMISSION: Clean Energy Advisory Committee
SUBCOMMITTEE:
DATE: October 23, 2024
LOCATION: Hybrid In-Person Sohier Room, 32 Essex Street, Beverly,
MA 01915 and Virtual via Google Meet
MEMBERS PRESENT: Chair Jordan Stutt, Sarah Cullinan, Fred Hopps, Tom
Keeley,Nancy Schalch
MEMBERS ABSENT: Amy Smith
OTHERS PRESENT: City Councilor Danielle Spang, City Councilor Hannah
Bowen, CEAC City Council Liaison Councilor Scott
Houseman, Bruce Egan, Kevin O'Reilly, Kira Fabrizio,
Lyndon Holmes, Erina Keefe,Michael Dejesus ",tic?
1. Roll Call and Welcome_
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Chair Stutt calls the meeting to order at 6:32 p.m.
2. Review and Approval of Meeting Minutes �- `" 5►
• June Minutes: Motion to approve by Schalch, seconded by Keeley. Motion carried(5-0).
• September Minutes: Motion to approve by Hopps, seconded by Cullinan. Motion carried(5-0).
3. City Updates
• Aggregation Data: Cost and energy savings data will be shared in a forthcoming Sustainability
Office newsletter. Members discussed other outreach ideas, including Smart9l l phone calls,
BevCam updates, and water bill mail inserts.
• Electric School Buses: The City secured two grant awards totaling just under$3M to support
the purchase of eight electric school buses, charging stations, site construction, and services. The
City is working with the grantors,National Grid, and potential vendors to plan a deployment
strategy. Of the fleet of 46 school vehicles, approximately 13 will be electric after this next
phase.
• (Paused to reorder agenda to accommodate attendee schedules.)
4. Specialized Code Development
• Hopps sent a rough draft of the resolution in support of adopting the specialized opt-in code to
Chair Stutt, Councilors Houseman and Bowen,who provided helpful input. Revisions included a
focus on cost savings to the City and consideration of the overall framing for the resolution.
Schalch suggested expanding discussion of benefits to the rest of the community.
• DOER informed the City that they expect to have a cost study demonstrating the incremental
cost increases of compliance to the Specialized code ready by the end of the year. The group
agreed to continue with resolution development and to prepare to incorporate the findings from
this study to strengthen the economic case.
• Decision to position the resolution as both a recommendation and a specific directive for City
Council adoption.
• Refined draft to be circulated for advance review. Members will discuss the revised version at
the November meeting.
• Stutt will coordinate with City Council President Flowers to schedule presentations, including
with the regional DOER representative.
5. New Heat Pump Winter Heating Rates Coming
• Cullinan explained the Department of Public Utilities (DPU)directive on heat pump-specific
rates for National Grid to introduce an electrification pricing option specifically designed for
customers using heat pumps. The goal is to achieve better cost parity between heat pump users
and non-users by adjusting winter electric rates.
• The DPU first reviewed Unitil's proposal for a heat pump-specific volumetric electric rate,
which allows for lower bills during the winter months by spreading the cost across more energy
units. This was aimed at ensuring those who have adopted heat pumps are not financially
penalized for supporting decarbonization. The DPU rejected National Grid's initial proposal,
instructing them to model their rate proposal after Unitil's structure.
• Under Unitil's model, customers would see a $1.50 increase in the base charge but a$0.06
decrease in per-kWh charges. The rate adjustment will apply to "whole-home" systems, relying
on self-attestation rather than verification. While this change doesn't create complete parity, it
significantly improves fairness for heat pump users.
• Implementation may start by February but is unlikely to be in place before the winter heating
months. The rate change involves program design, approvals, and updates to the electric billing
system.
• Additionally, Cullinan is involved in a statewide interagency working group on rate policies to
align with decarbonization goals. The group is also working to determine the price differential
required to establish full cost parity for heat pump users. Schalch raised a question on time-of-
use rates,with updates expected as smart meters are deployed.
• Cullinan clarified that utilities do not profit from increased electricity consumption due to a
revenue decoupling policy implemented around 2008. This policy stabilizes utility revenue
independent of kWh sales volume,meaning that National Grid's profit isn't influenced by total
energy sold.
• There's an ongoing debate about whether it's time to modify the decoupling structure to promote
energy efficiency and electrification more effectively. Utilities continue to earn by investing in
infrastructure, like poles and substations,rather than increasing energy sales,which may affect
future policy directions.
6. Legislative Updates
• O'Reilly reported on a state bill addressing climate action and the permitting process for
substations. The bill, which may soon pass,has bipartisan support with specific provisions for
natural gas limitation. In the July session, the climate bill failed to pass,which was
disappointing.
• The bill had included important permitting reforms,supported by both the House and Senate, to
expedite the construction of substations. Both sides agreed on the need for faster permitting,but
the Senate added provisions aimed at limiting gas expansion.
• The Senate bill passed 38-2, specifically adding that climate impacts must be considered when
deciding whether to replace or repair gas pipelines. Last week,both sides reached a tentative
agreement, and the bill now holds strong potential for passing.
• Conference committee discussions have been ongoing,with Senator Tarr involved on multiple
committees as one of only four Republican senators. If any senator or representative objects, it
would trigger a formal session, snaking the process more difficult. The bill may include details
on time-of-day adjustments and potential borrowing to support R&D, comparing it to the
industrial revolution's focus on innovation.
• Representative Parisella, chair of the Economic Development Committee, is currently involved
in conference committee discussions,presenting new opportunities for moving the bill forward
given his role and influence.
• Members discussed the strength of the proposed gas expansion restrictions. Opinions vary, but
the DPU will now have oversight over gas expansion and will assess climate impact
considerations as part of this process.
• Cullinan noted that the DPU recently issued a groundbreaking directive requiring any new
pipeline proposals to justify the need for expansion. This change may lead to a cost distribution
challenge, as those last to transition off gas could face higher costs. This raises questions about
how to spread costs fairly and how to accelerate depreciation of existing gas infrastructure.
Additionally,the group discussed whether it's equitable to penalize households that are unable to
transition away from gas early.
More updates on the climate bill's progress will be included in the next meeting.
7. The Big Picture: Climate Technology and Industry Updates
Egan provided an overview on emerging technologies, including Al and its energy demands,
mapping of underwater resources and offshore wind, small modular reactors(SMRs), and
advancements in storage solutions. See slides for details.
S. Additional Business
• Hopps highlighted recent unprecedented federal support for clean and innovative technologies
under the Biden administration, and discussed potential market resilience through administrative
changes. Hopps recommends the Volts podcast.
• Keefe added two City updates;
o LED lighting retrofit is in planning phases for several school facilities and the Council on
Aging,replacing halogen and fluorescent lighting that will likely not be offered
substantial incentives in the future. This project takes advantage of a limited time
National Grid promotion at the end of the Mass Save three-year plan.
o Mayor Cahill has joined the Energy Transformation Advisory Board developed by the
Massachusetts Executive Office of Energy and Environmental Affairs. While the Mayor
will focus on the Financing the Transition working group, the public can tune into
webinars that summarize the work of all working groups. The next webinar,
Transitioning Away from Reliance on the Everett Marine Terminal(EMT)LNG Facility,
will take place on November 4. Registration details are here.
Meeting adjourns at 8 p.m.
Next Meeting: November 20,2024