COMMUNITY INVESTMENT AND AWARENESS
Education & Assistance
Cape & Islands Self-Reliance Corporation – Green Energy Citizen Project
The Cape & Islands Self-Reliance Corporation was founded as a nonprofit organization in 1980 in order to promote community self-reliance in energy, water and food. Self-Reliance was pivotal in assuring that the Massachusetts Restructuring Act contained the Community Choice provision, leading to the formation of the Cape Light Compact (see details below). Self-Reliance also assisted Ohio Citizen Action in conducting the educational outreach that led to the passage of Community Choice in the Ohio Restructuring Act.
Through the Green Energy Citizen Project, Self-Reliance educates members of the
community how they can: (1) use the Cape Light Compact to get more clean and renewable energy in their power supply, and (2) create programs that will make renewable energy technology affordable to working families and small businesses. Self-Reliance makes
presentations, provides outreach material, maintains a website, and fosters alliances with other organizations, including the Compact. The two-day Earth Day 2001 Conference will focus on educating citizens about renewable energy issues and opportunities .
Green Power Purchasing
The Cape Light Compact
The Cape Light Compact (Compact) is an aggregation of 21 towns and two counties on Cape Cod and Martha’s Vineyard and represents 185,000 metered electric customers in
Massachusetts. The Compact was formed in 1997 through resolutions passed by town meeting, and the board of selectmen or town council, in each member community. Among the goals of the Compact are to acquire the best market rate for electricity; to utilize and encourage renewable energy development through contract provisions, demonstration projects, and state-mandated system benefit charges for renewable energy; and to utilize and encourage demand side management and other forms of energy efficiency through contract provisions and state-mandated system benefit charges for renewable energy. Participation in the Compact is voluntary for the towns and for each individual consumer.
The Compact is the first “Community Choice” model for municipal aggregation in
Massachusetts. Community Choice offers consumers the ability to act together to gain an economic advantage in a deregulated market place by jointly choosing power supply through their local governments. In establishing contracts with suppliers, cities can specify or
negotiate the amount of green power to be supplied, prices, service, and protections for vulnerable customers like the elderly or low-income.
In March 2000, the Compact contracted with Select Energy to supply electricity for Cape Cod and Martha’s Vineyard consumers. The contract, which covers all classes of consumers— industrial, governmental, commercial and residential—is one of the first of its kind in the nation. Select Energy is a Connecticut-based power marketer and an unregulated subsidiary of Northeast Utilities. The contract includes options to establish opportunities for consumers to purchase “Green Power” from renewable energy sources, and development of distributed energy and energy efficiency-related products and services.
The contract requires approval of the Compact member towns, as well as state regulators. Individual consumers who do not wish to participate will have the option to “opt-out” and choose the existing supplier, Commonwealth Electric, or choose another competitive supplier if one is available. In August 2000, the Department of Telecommunications and Energy approved the Compact’s municipal aggregation plan. The Compact’s contract is expected to go into effect during 2001.
The Cape Light Compact’s members are the Cape Cod [Barnstable County], Massachusetts towns of Barnstable, Bourne, Brewster, Chatham, Dennis, Eastham, Falmouth, Harwich, Mashpee, Provincetown, Sandwich, Truro, Wellfeet, and Yarmouth; the Barnstable County Commissioners; the Martha’s Vineyard [Dukes County] towns of Aquinnah, Chilmark, Edgardown, Oak Bluffs; Tisbury, and West Tisbury; and Dukes County.
Other public aggregators and/or groups which are investigating public aggregation in Massachusetts include Franklin County, Hampshire County, Town of Lexington, and South Coast EmPOWERment. SouthCoast emPOWERment is an intergovernmental organization of eight municipalities in Southeastern Massachusetts that have been authorized by their Town Meetings to join with other municipalities to aggregate electrical loads similar to the Cape Light Compact. The member towns are Acushnet, Dartmouth, Fairhaven, Freetown, Marion, Mattapoisett, Rochester and Westport.
Contact Information
Maggie Downey Cape Light Compact
Barnstable Superior Court House P.O. Box 427
Barnstable, Massachusetts 02630 Voc: (508) 362-2511 Ext. 353 Fax: (508) 362-4136
FINANCIAL INCENTIVES
Loan Program
Cape & Islands Self-Reliance Corporation - Home Energy Loan Program
Cape & Islands Self-Reliance Corporation provides low-interest loans for energy-related home improvements (including solar water heater and photovoltaic installations) under its
Home Energy Loan Program. The financing is available in cooperation with Cape Cod Bank
& Trust. Self-Reliance uses funds generated by its member-benefit programs to underwrite loans for energy-related home improvements for its members. The fixed interest rate for HELP loans is based on the 90-day U.S. Treasury Bill rate plus 2%. One solar hot water system has been installed under the program in last 12 months, but interest in renewables has been growing in recent months.
Requirements for participation are:
v membership in Self-Reliance
v the home must be occupied year-round
v annual applicant income must not exceed $80,000
v applicant must meet credit approval standards at CCB&T
Proposed Loan/Rebate Program
Cape & Islands Self-Reliance Corporation – Proposed Loan/Rebate Pilot Program
Self-Reliance is developing a pilot program to prove that a green energy program is feasible. The group hopes to make photovoltaic systems or other renewable energy devices affordable to consumers by subsidizing 50% of the cost and providing a zero interest loan for the balance over a long term. State incentives include a 15% state income tax credit, and no sales tax, on solar installations. After the subsidy and the tax credit, the cost of the system will be about $3000. In order to finance the program, Self-Reliance is working with the Cape Light Compact to use energy efficiency program funds. Under the state’s restructuring law, the Compact will be able to receive the line fees formerly collected by the utilities to design and implement their own energy efficiency programs. Self-Reliance is also seeking funds to develop a demonstration project.
Contact Information
Matthew C. Patrick Executive Director
Cape & Islands Self-Reliance P.O. Box 3203
Waquoit, MA 02536-3203 Voc: (508) 457-7679 E-mail: reliance@reliance.org
State of Massachusetts – Financial Incentives
Patent exemption – An income tax deduction is available for any income derived from a patent associated with energy conservation.
Property tax exemption – A property tax exemption is allowed for solar, wind, and hydropower. Sales tax exemption – Solar, wind, and heat pump systems exempt from 5% sales tax.
Personal tax credit – Homeowners can take a tax credit up to 15% of the cost of a solar, wind, or hydro system.
Corporate tax deduction – Corporations can deduct 100% of the cost of a solar or wind system, and these systems are exempt from the corporate excise tax.
Visit www.ncsc.ncsu.edu/dsire.htm for more info on Massachusetts’s incentives.
RULES, REGULATIONS & POLICIES
State of Massachusetts – Regulatory Policies
Renewable portfolio standard – The standard ramps up to 4% by 2009 and continues thereafter. Public benefits funds – Funds for renewables administered by the Massachusetts Technology Collaborative (MTC).
Net metering – Net metering is allowed for renewables and cogeneration up to 60 kW. Disclosure – Utilities must inform customers of generation fuel mix and emissions.