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Energy Facility Siting Board – RI Future http://www.rifuture.org Progressive News, Opinion, and Analysis Sat, 29 Oct 2016 16:03:26 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.25 Killingly power plant battle impacts Rhode Island http://www.rifuture.org/killingly-power-plant-battle/ http://www.rifuture.org/killingly-power-plant-battle/#respond Tue, 11 Oct 2016 13:42:39 +0000 http://www.rifuture.org/?p=68511 2016-10-10 Killingly 023As large as Invenergy‘s $700 million fracked gas and diesel oil burning power plant would be if it were to be actually built in the pristine wilderness of Burrillville, the project is but a small part of a colossal, three-state fracked gas infrastructure project that has been in development for years in the northwest corner of the Rhode Island and beyond. Eight power plants currently litter a 31 mile expanse of pipeline, from Killingly, Connecticut, through Rhode Island, to Medway, Massachusetts. If built, Burrillville would be power plant number nine and Killingly is the proposed site of power plant number ten.

Smaller than the power plant proposed for neighboring Burrillville, the “Killingly Energy Center” is slated to produce 550 MW of unneeded energy. It will produced nearly 2 million tons of emissions per year, adding to the emissions of the Lake Road Generating Facility, an 840 MW power plant already located in Killingly. Emissions, of course, know no political boundaries, so large parts of Rhode Island will be subjected to this increase in pollutants.

2016-10-10 Killingly 017The Killingly power plant is to be built in a residential neighborhood within a mile of 460 Killingly housing units. At least five schools and day cares, over 5,000 students, are within three miles of the proposed plant. Wyndham County, where Killingly is located, has asthma rates 18 percent higher than the rest of Connecticut.

To power the plant, a pipeline connection to the main AIM pipeline will be built, crossing the Quinebaug River, Wyndham Land Trust, the Airline Trail, Pomfret Audubon Society and Bafflin Sanctuary. Each area a precious resource.

Like Burrillville, the proposed power plant needs water. There is a concern that the aquifers will be strained and that residents will suffer a lack of water given that the power plant needs 90,000 gallons a day when burning fracked gas and as much as 400,000 gallons a day when burning diesel oil. Also, like Burrillville, there are safety and and noise issues to consider when a plant like this is built in a residential area.

2016-10-10 Killingly 022The Town of Killingly is categorized as a distressed community. Like other areas where these types of facilities are targeted, there are environmental justice issues to be considered. Very often the facilities are like these are aimed at low income communities that lack the financial means to either fight the power plant or resist the financial carrots dangled by the company building the plant.

NTE Energy, the prospective builder, has never completed a power plant. Formed in 2009 as a private equity funded company, there is a worry that the company will build the plant and sell it off for a quick profit. Currently the company has six power plants in development, two of which are under construction. The company has no experience in operating or maintaining a power plant.

Also, like in Rhode Island, the residents most impacted by the siting of a power plant in their community have no say in whether or not the plant will be built. The Connecticut Siting Council, the equivalent of Rhode Island’s Energy Facility Siting Board (EFSB) makes the final decision regarding the power plant in Killingly. The Siting Council has already determined that Connecticut has an excess of electricity generation into 2020, yet is still considering the power plant in Killingly.

Opposition to the power plant has begun in Killingly. The group is called Not Another Power Plant, and I found that they were very knowledgeable about the situation in Burrillville. I went there Monday afternoon to talk with residents who were holding signs and a press conference to get the word out. Below I speak to Connecticut State Senator Mae Flexer and Connecticut State Representative Danny Rovero about their opposition.

On Thursday October 20th beginning at 3:30 pm there will be a public field review of the proposed NTE/KEC site on Lake Road, Dayville. This will be an opportunity to see the area where NTE hopes to build the power plant. Afterwards there will be a Public Hearing with the Connecticut Siting Council at 6:30 pm at the Killingly High School Auditorium. Public comment will be heard at this meeting.

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CLF files motion to dismiss in power plant case http://www.rifuture.org/clf-files-motion-to-dismiss-in-power-plant-case/ http://www.rifuture.org/clf-files-motion-to-dismiss-in-power-plant-case/#comments Mon, 19 Sep 2016 12:46:30 +0000 http://www.rifuture.org/?p=68065 2016-07-19 Burrillville MTBE Site Visit 025The Conservation Law Foundation‘s (CLF) senior attorney Jerry Elmer filed a Motion to Dismiss today with the Energy Facility Siting Board (EFSB) in the case of Invenergy’s $700 fracked gas and diesel oil burning power plant planned for Burrillville. CLF’s motion is broader than the one filed by the Town of Burrillville, which concentrated on the fact that Invenergy to date has supplied no information on where the water to cool the power plant will come from, making it impossible to assess the project.

In addition to the water issue, CLF’s motion is based on the lack of advisory opinions from multiple agencies, due to Invenergy’s lack of providing needed information. This is CLF’s second motion to dismiss. As this new Motion to Dismiss says in its conclusion, “Back in January, CLF argued that this docket should be closed due to inadequate information from Invenergy.

“Invenergy’s Application lacked enough details for the parties, including CLF, to assess and respond to its proposal. The EFSB voted to let the process take its course. The Board noted that ‘further information’ might at some point be ‘necessary to conduct a thorough review and make an informed decision…’ It added that discovery would be available as part of the process.

“In the intervening eight months, twelve agencies and subdivisions have attempted to conduct the thorough reviews and make the informed decisions demanded of them by the Energy Facility Siting Act and the Board. Discovery has occurred. And Invenergy has failed to provide enough information for the agencies and subdivisions to issue fully informed advisory opinions. The process has taken its course, statutory deadlines have passed, and there still is not enough information for the Board to do its job. Invenergy’s failure to provide adequate information violated the Energy Facility Siting Act, it precluded the agencies and subdivisions from doing their jobs, and it precludes the EFSB from fulfilling its statutory mandates, Enough is enough: Invenergy’s application must be dismissed.”

UPDATE: See Jerry Elmer’s blog post about the motion here.

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Whitehouse not the climate champion Burrillville needs http://www.rifuture.org/whitehouse-not-champion/ http://www.rifuture.org/whitehouse-not-champion/#comments Thu, 01 Sep 2016 17:17:47 +0000 http://www.rifuture.org/?p=67566 2016-02-01 FANG Whitehouse PVD City Hall 09
Senator Sheldon Whitehouse

United States Senator Sheldon Whitehouse has a national, and even international, reputation as a climate champion, noted Rhode Island Senate President M Teresa Paiva-Weed as she introduced him to to the nearly 150 people gathered in Newport for a community dinner and Q&A. Paiva-Weed talked up Whitehouse’s concern for his constituents, saying, “Someone like Sheldon makes it a point to be home and to have a focus on the issues at home.”

But to the residents of Burrillville who drove for over an hour through rush hour traffic to attend the dinner, Whitehouse hardly seems focused on “the issues at home” and in fact, his own words belie that. His international reputation as an environmental champion is of small comfort to the townspeople fighting Invenergy’s $700 million fracked gas and diesel oil burning power plant.

Whitehouse touted his environmental concerns in his opening remarks, saying, “The good news is that… the [climate] denial operation really is collapsing. You can feel it visibly. We’re at the stage where the CEO of Exxon has had to admit, ‘Okay, climate change is real, and we’re doing it and we want to get something done.’”

Climate change, says Whitehouse, “is going to hit home for Rhode Island in a really big way and I want to make sure that I’ve done everything that I possibly can to make sure that we are as prepared for it as we can be in the Ocean State.”

Richard Dionne, vice president of the Burrillville Conservation Commission was called on by Whitehouse to ask the first question.

“When discussing the most influential senators from Rhode Island on environmental quality issues, your name is often brought up in the same sentence as our former Senator John H Chafee,” said Dione, “Not bad company to be in if I do say so myself.”

“Really good company,” agreed Whitehouse.

Dione continued, “However, our Senator Chafee would be rolling over in his grave if he knew that a 900 megawatt fracked gas power plant being proposed by Governor Raimondo was to be sited smack dab in the middle of the John H Chafee Heritage Corridor in the northwest corner of Rhode Island, on the shared border with neighboring states Connecticut and Massachusetts.

“This area has been recently designated as part of the National Park Service. The approximately 13,000 acres of protected forests, recreational areas, wetlands and conservation areas is absolutely the most inappropriate area for this type of project.

“Every environmental organization in the state of Rhode Island has come out against the project,” continued Dione, “including the Environmental Council of Rhode Island, the Audubon Society, the Nature Conservancy, Blackstone Heritage Corridor, the list goes on and on, I have a list right here…”

“I know the list,” said Whitehouse.

“At many of the public hearings I attend, invariably the question gets posed to me, ‘Where is our environmental Senator on this issue and what is he doing for his constituents in Burrillville?’ A town which, by the way, has supported your election in 2006 and 2012.

“So my question is Senator Whitehouse,” said Dione, winding up, “What answer can I bring back to the people of Burrillville, and can you commit this evening to opposing this power plant?”

“The short answer is,” said Whitehouse after a short pause, “There is a process…”

“Here we go,” said a woman at my table with open disdain.

If there was a wrong answer to give, this was it. Everyone who attended Governor Gina Raimondo’s appearance at the Burrillville High School has heard this answer before. No one takes “trust the process” seriously. It’s political dodge ball.

Conservation Law Foundation (CLF) attorney Jerry Elmer has spoken eloquently about the process. “Remember that the reason – the raison d’etre – that the General Assembly created the EFSB (Energy Facility Siting Board) was precisely to take these energy siting decisions away from the Town Councils and town planning boards,” wrote Elmer.

RI Senator Victoria Lederberg, who got the EFSB legislation through the General Assembly 30 years ago, called the siting board concept “one-stop shopping” for power plant developers. Climate change, environmental concerns and the health and safety of residents didn’t seem to be high on the General Assembly’s priorities when the EFSB was formed.

The process renders the opinion of ordinary townsfolk essentially meaningless, said Burrillville Planning Board attorney Michael McElroy. “The EFSB can take [our opinion], they can take it in part, or they can reject it.”

“There is a process,” said Whitehouse, “taking place for [the power plant] through the state Energy Facility Siting Board. They take sworn testimony, as I think you know. There are a whole bunch of local environmental groups that are intervened into that proceeding. The Conservation Law Foundation has come down from Boston to intervene in that proceeding. They have witnesses.”

Senator Whitehouse is incorrect here. The only environmental group certified as an intervenor in the EFSB proceedings is the CLF. The Burrillville Land Trust, Fighting Against Natural Gas (FANG), Burrillville Against Spectra Expansion (BASE) and Fossil Free Rhode Island were denied intervenor status, as it was felt that their interests would be seen to by the CLF.

“It’s essentially an administrative trial that is taking place,” continued Whitehouse, “I have confidence in that process. I have confidence in Janet Coit at DEM (Department of Environmental Management) who by virtue of being the DEM director is on the Energy Facility Siting Board. I have confidence in Meg Curran, chairman of the Public Utilities Commission (PUC) who by virtue of being chairman chairs that Siting Board, and there’s going to be somebody from the Department of Administration…”

Associate Director of the Division of Planning, Parag Agrawal, is the third member of the EFSB.

“It’s a process I’ve worked with from my earliest days,” said Whitehouse, “when I first came as a young lawyer to Rhode Island I worked in the Attorney General’s office and I practiced representing the people before the Public Utilities Commission.

“So I have confidence in the process.

“Congratulations,” added Whithouse, “The opposition to Invenergy, I think, has won every round. Burrillville said ’No’ on planning, Burrillville said ‘No’ on zoning, the water board said ‘No’ on water, so I think you’re, yeah, it’s a process and I know it would be easier to just yell about it but it’s a process that I think is honorable and will come to the right result.

“So I want to focus my efforts on where it will make the biggest difference. I know we’ve had some conversation, repeatedly, but I still am of the view that, with the force and strength that I have available to me, I want to apply every bit of that force and strength to the battle in Washington, which if we win it, will be immensely significant, not just to Burrillville but to all of Rhode Island and to the country and the world.

“So, sorry that I don’t have more to give than that, but I do think that I give pretty well at the office with what I do on this issue. Thank you for bringing it up though, I appreciate it.”

Burrillville resident Lynn Clark was called on to ask the next question. This seemed like a coincidence, but in fact, half the questions asked concerned the power plant in Burrillville, in one way or another.

Clark rose and with only the slightest hint of nervousness in her voice, said, “My name is Lynn and I come from the northwest corner of the state of Rhode Island. It has been my home all my life. I applaud you and I love the work you’re doing on the environmental front.

“In Burrillville, our little town has come together and we have come out strong against this giant plan. We have a lot of environmental groups [on our side], 23 currently, and we are working hard.

“I wish I could say that I am as confident in this process as you are, sir. It has been a scary process. We have been consumed by this process. I have been at every meeting, for hours, two or three meetings per week. Sir, this is a scary, scary process.

“We need a champion in Burrillville and we are asking you to please come see us. Please, come talk to us. If this Invenergy [power plant] gets built, the detriments to our little state will be just horrifying.”

Clark’s appeal to Whitehouse was raw and emotional. It’s the kind of speech people give in movies to roust tired champions into battle one final time.

But this wasn’t a movie and Whitehouse wasn’t willing to be the hero.

“I hear you,” said Whitehouse, once again echoing words Governor Raimondo used in Burrillville when she visited, “I can’t add much to what I’ve said to Richard. Thank you for taking the trouble to come down and share your passion.

Eagle Scout James Lawless with Whitehouse
Eagle Scout James Lawless with Whitehouse

“It is the National Heritage Corridor,” said Clark, not giving up, “We also have a boy scout camp up there, camp grounds… Have you been up to Burrillville?”

“Oh yeah,” said Whitehouse.

“Okay,” said Clark, “I hope you come visit us soon, sir. Thank you.”

Other questions came and went. Whitehouse was asked about the Supreme Court vacancy, grid security and the opioid epidemic. When Newport resident Claudia Gorman asked Whitehouse  about the Federal Energy Regulatory Commission (FERC), he admitted that on the federal level, at least, he isn’t as certain about the integrity of the process.

“There have been several problems, at the federal level, with the approvals,” said Whitehouse, “They haven’t baked into their decision making what is called the social cost of carbon.” Whitehouse added that we don’t take seriously the problem of methane gas leaks, and that he held the first hearings on the issue of gas leaks and that we still don’t know the full extent of that particular problem…

The last question of the evening came from Cranston resident Rhoda Northrup. She rose as Whitehouse tried to bring the discussion to an end, and would not allow the dinner to end without asking her question.

“I do not live in Burrillville I live in Cranston,” said Northrup, “and what’s going on in Burrillville should not be completely on their backs. This is a global issue for all of us and if that power plant comes to our state of Rhode Island, it will set us back forty years. We will be committed for another forty years to a fossil fuel.

“That’s wrong.

“We need to move forward with wind and solar. And with all of that said, I would like to ask the senator if he has an opinion. With everything that’s been said tonight, ‘Do you have an opinion?’

“I know it’s a process,” said Northrup, “but that’s not an answer. Everybody’s telling us it’s a process. We know that. We’re walking the process. But we’re asking our leaders if they have an opinion. You must have an opinion.”

There was a short pause before Whitehouse answered.

“My opinion is that we must get off fossil fuels,” said Whitehouse.

“Thank you for that,” said Northrup.

But Whitehouse was’t finished. Lest anyone believe that by that statement Whitehouse was taking a stance against the power plant in Burrillville and matching action to his words, Whitehouse switched to his familiar political talking points.

“My opinion is that the best way to do that,” continued Whitehouse, “is to balance the pricing of fossil fuels, so that they are treated fairly in the marketplace. Right now they have a huge, unfair advantage because they don’t have to pay for the cost of the harm that they cause…”

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Department of Health hears testimony on Burrillville power plant http://www.rifuture.org/ridoh-burrillville-power-plant/ http://www.rifuture.org/ridoh-burrillville-power-plant/#comments Thu, 11 Aug 2016 20:18:44 +0000 http://www.rifuture.org/?p=67070 Continue reading "Department of Health hears testimony on Burrillville power plant"

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Burrillville 45The Rhode Island Department of Health (RIDOH) held a public comment hearing in Burrillville Tuesday to solicit opinions on the potential health effects of building Invenergy‘s proposed $700 million fracked gas and diesel oil burning power plant. RIDOH has been tasked by the Energy Facility Siting Board (EFSB) to create a non-binding advisory opinion on potential public health concerns relating to the project, including but not limited to biological responses to power frequency, electric, and magnetic fields associated with the operation of the power plant, and the potential impacts on the quality of drinking water associated with the construction and operation of the plant. The final report is due in early September.

RIDOH has released a first draft of their report, which was consumed by Burrillville residents opposed to the plant. Much of the public comment centered around the idea that RIDOH wasn’t taking into account the compounded effects of the gas infrastructure in and around Burrillville but was instead concentrating on the proposed power plant by itself.

Perhaps the most dramatic moment of the evening came when Stephanie Sloman rose to give her testimony.

“I had a whole speech prepared,” said Sloman (see video #20 below), “but I noticed that Invenergy’s sitting over there, and I refuse to speak and read my speech in front of these people. I don’t think they should even be here, frankly.”

The evening’s meeting was made harder on residents of the town because at the same time as this meeting there was a meeting of the Harrisville Fire District and Water Board. This meant that some people (including me) had to run out to the other meeting and then return to the RIDOH hearing, still in progress.

Several Burrillville residents noted that Governor Gina Raimondo, during her visit to Burrillville in July, recommended that residents get involved in and trust the process. That seems awfully hard to do when two important meetings are scheduled at the same time .

Below is all the video from the event.

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Save The Bay wants Invenergy to prove consistency with Resilient RI http://www.rifuture.org/save-the-bay-wants-invenergy-to-prove-consistency-with-resilient-ri/ http://www.rifuture.org/save-the-bay-wants-invenergy-to-prove-consistency-with-resilient-ri/#respond Wed, 27 Jul 2016 16:15:38 +0000 http://www.rifuture.org/?p=66573 save the bay logoIn a carefully worded press release, Save The Bay, one of Rhode Island’s premiere environmental advocacy groups, said, “it would be premature for the RI Energy Facility Siting Board (EFSB) to make a decision on a proposed natural gas-fired power plant in Burrillville before the state adopts a greenhouse gas reduction strategy.”

“Under the Resilient RI Act of 2014, the Executive Climate Change Coordinating Council (EC4) is required to submit to the Governor and General Assembly a strategy for achieving greenhouse gas emission (GHG) targets set forth in the Act. The deadline for this report is December 31, 2016. Until this strategy has been developed and adopted and the Invenergy proposal is shown to be consistent with the GHG reduction goals of the Resilient RI Act, it is premature for the RI Energy Facility Siting Board to issue a decision on Invenergy’s proposed power plant,” said Save the Bay Executive Director Jonathan Stone.

“Save The Bay expects the EC4 to consider carefully and thoughtfully a number of important questions in charting the state’s energy course. Among them: benefits and impacts of investments in renewable energy generation and energy conservation on energy system supply, distribution and reliability; the role of hydroelectric power in replacing nuclear power as part of the region’s energy mix; and whether or not the power generation capacity of the proposed facility is needed.

“Climate change is caused by the burning of fossil fuels and poses profound threats to the health and resilience of Narragansett Bay,” said Stone. “The pace of climate change is expected to accelerate. Already, rising sea levels are degrading the health of coastal wetlands, worsening coastal erosion and threatening public access along the shore. Warming temperatures contribute to harmful algal blooms, low oxygen levels in the Bay, and the loss of native species.”

If the Invenergy project moves forward and specific site plans and required permit applications are submitted to the RI Department of Environmental Management, Save The Bay will evaluate the proposed plant’s impacts on water quality, wetlands, and habitat conditions, in keeping with its role as steward of Narragansett Bay.

[Note: an earlier version of this piece was released with an incorrect Save the Bay logo.]

 

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RIDEM issues blistering critique of Invenergy’s power plant application http://www.rifuture.org/ridem-blasts-invenergy/ http://www.rifuture.org/ridem-blasts-invenergy/#comments Thu, 14 Jul 2016 17:46:31 +0000 http://www.rifuture.org/?p=65881 2016-03-31 Burrillville EFSB 002RIDEM’s third data request to Invenergy, released yesterday, reads as a devastating critique of the proposed $700 million fracked gas and diesel oil burning power plant. If Governor Gina Raimondo was serious when she recently told ecoRI News that, “…if there are issues then the plant won’t go forward,” then the project is dead on arrival.

In addition to “missing info” that renders the application incomplete, on page 3 the Rhode Island Department of Environmental Management notes that impact of the the various projects in Burrillville has been fragmented, making the cumulative impact of Invenergy’s proposed power plant; Spectra Energy’s Aim Project; Eversource Energy, National Grid and Spectra Energy’s Access Northeast project and TransCanada’s Ocean State Power difficult to determine.

“For the purposes of comparing costs and benefits to wildlife, all of the existing and proposed work related to increased natural gas operations (processing and transport) in Burrillville should be reviewed as a single and complete project,” says RIDEM, “Piecemeal review of related projects in different stages by different applicants undercounts their cumulative impacts from loss of forests and fragmentation, air, noise and light pollution etc. in an area of the state that has been a longstanding conservation priority.”

On page 7, RIDEM alleges that the “applicant makes several confusing and conflicting assertions about the purpose and need for the project…

“The emissions and cost-benefit analyses both primarily only list benefits. A proper analysis should include costs, yet there is no mention of loss of forests, biodiversity, ecosystem services etc… This seems particularly important since the application notes that the majority of the benefits outlined (e.g. construction jobs and energy costs savings) would be rather short-lived and the majority of the foreseeable costs would be long term or permanent.”

When it comes to selling the idea of a fracked gas power plant, the RIDEM data request accuses Invenergy of circular logic. “A pointed example includes dismissing hydropower in the Power Generation Alternatives section (and omitting it from all other sections) solely because it would not be appropriate on the proposed [power plant] site, which was selected for proximity to the gas line, and then dismissing alternative project locations because they do not have the desired natural gas infrastructure.”

Further, the “premise that natural gas is the only way to meet [New England’s energy] demand is not borne out by the information provided,” says RIDEM.

RIDEM’s report to the Energy Facility Siting Board (EFSB) will be shaped by Invenergy’s answers to these and other questions. Though these questions raise serious doubts about the need for the new plant and Invenergy’s integrity in preparing its application, ultimately the EFSB takes RIDEM’s report as advisory only, meaning the board could choose to approve the project despite these issues.

Yet Governor Gina Raimondo’s words, that “if there are issues then the plant won’t go forward,” ring loudly here. The issues raised in this set of data requests are serious, and the questions raised must be addressed honestly.

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Why should Burrillville care about Invenergy’s bad financial decisions? http://www.rifuture.org/burrillville-invenergy-bad-decision/ http://www.rifuture.org/burrillville-invenergy-bad-decision/#comments Mon, 27 Jun 2016 13:12:34 +0000 http://www.rifuture.org/?p=65141 At the most recent Burrillville Town Council meeting, Town Councillor Kimberly Briquette Brown made some curious remarks about Invenergy’s obligations to ISO-NE, the organization responsible for managing the supply of electricity to Rhode Island and neighboring states. Invenergy is planning to build a $700 million fracked gas and diesel oil burning power plant in the town and residents of Burrillville strongly oppose the plant.

Kimberly Brissette Brown
Kimberly Brissette Brown

“It’s my understanding,” said Brissette Brown, “from speaking to Mike McElroy and learning about this just as much as everybody else has been over the last few months, that once the ISO had granted the power capacity in February to Invenergy, that regardless of whether not they enter into a tax agreement with the town, if they do not go forward with building the power plant they’re going to be fined, substantially, it’s my understanding, and I could be wrong, millions of dollars. At the time… there was a concern about the financial ramifications of leaving the bill to people that thought that by voting no to a tax agreement that they’d be basically sending the power company packing.”

The gist of her remarks seems to be that Burrillville town attorney Michael McElroy convinced her that the town might be on the hook financially for the fines that Invenergy might suffer for not delivering on its obligations to ISO-NE. I couldn’t see how this was possible, so I asked Jerry Elmer, senior attorney at the Conservation Law Foundation (CLF), for his insight. The added emphasis is all mine:

By way of background, I explain in general that the results of FCA-10 show that the Invenergy plant is not needed, here.

And I am well aware of the fact that the mechanics of these FCAs can be complicated and difficult to understand; I provide some general background, here.

“In FCA-10, Invenergy bid both of its turbines, or 997 MW, into the ISO’s auction. However, in the actual auction, Invenergy cleared only one turbine, or 485 MW. Thus, Invenergy acquired a CSO of 485 MW. Invenergy agreed to provide electricity to the regional grid operator, ISO-NE, for a one-year period of time running from June 1, 2019 through May 31, 2020. This period of time is called Capacity Commitment Period 10 (CCP-10), and it corresponds to FCA-10. In return for agreeing to be available to the regional grid operator during that specified, future period, Invenergy will receive a stream of payments called capacity payments.

“In effect, Invenergy is selling a commodity, capacity, in return for a stream of money, called capacity payments. (And those links above provide some needed background that may help readers understand this.)

“In order to be allowed to participate in the ISO’s Forward Capacity Auction (FCA), Invenergy (or any other entity) had to first “qualify.” In order to qualify to participate in an auction, Invenergy (or any other entity) had to show that it had a realistic chance to actually build its proposed plant. (The ISO requires this, because the ISO is responsible for keeping our electricity grid reliable. ISO cannot keep the grid reliable if entities that acquire CSOs cannot actually build and operate power plants.) Invenergy (or any other entity) also has to put up a huge amount of “Financial Assurance” to even be allowed to participate in an FCA. FA is a kind of bond, a way of securing (guaranteeing) that Invenergy will be able to perform its obligation. FA would be forfeited if Invenergy (or any other entity) acquired a CSO (in an auction) but then did not actually have a plant built by the beginning of the CCP.

“So, now that Invenergy did acquire a CSO in FCA-10, is Invenergy irrevocably committed to building the proposed plant in Burrilville? The answer is unequivocally not.

“Could Invenergy abandon its proposed plant in Burrillville completely, and not lose the FA (bond) posted with ISO? The answer is unequivocally yes.

“To be sure, Invenergy could not just walk away from the plant. However, between today and June 1, 2019 (the beginning of CCP-10, when Invenergy’s CSO kicks in) the ISO will hold three separate Reconfiguration Auctions. One will occur about 2 years before June 1, 2019; one will occur about a year before June 1, 2019; and the last one will occur just before the start of CCP-10. At each of these Reconfiguration Auctions, buyers and sellers buy and sell CSOs to each other.

“Invenergy could – if it wanted to – sell out of its CSO in any one of those Reconfiguration Auctions. Of course, because the ISO is still responsible for keeping the New England electricity grid reliable, any entity that wanted to buy Invenergy’s 485-MW CSO would have to be qualified by the ISO to participate in the Reconfiguration Auction. The qualification process would be very similar to the qualification process for participating in an FCA – show that you either have a power plant already or could realistically build one in the remaining time allowed, and post FA.

“Invenergy could elect to sell out of its CSO in any of the next 3 ISO-run Reconfiguration Auctions for any one of a variety of reasons. For example, Invenergy could decide that the political climate in Rhode Island has turned against it, and that the plant might not be permitted by the Energy Facility Siting Board. (This could happen, say, if Governor Raimondo were persuaded to oppose the proposed plant as a result of overwhelming constituent pressure.) Or Invenergy could decide that the New England energy market is less lucrative than it thought it would be, and it is not worth building the plant. (In fact, the auction clearing price crashed from over $17 per kilowatt-month in FCA-9 to $7.03 per kilowatt month in FCA-10.) Or, Invenergy could sell out of its CSO for no other reason than that it thought it was profitable to do so. (Remember that whatever entity buys the CSO from Invenergy would be buying the right to a future stream of income. This is a valuable commodity, and it is entirely possible that Invenergy simply flips the CSO for a quick profit. Note that in that last sentence I mean “possible” as being completely within the ISO Market Rules; I am not suggesting that this is a likely course for Invenergy – only that it can be done.)

“In fact, Invenergy could sell out of its CSO in any one of the next three Reconfiguration Auctions for any reason it wanted to do so. The fact is that, having acquired a CSO on February 8 does not mean that the plant must inevitably be built, and does not mean that Invenergy is powerless to walk away without forfeiting the huge bond it posted with the ISO.

“In this scenario, the Town of Burrillville would not be on the hook for any of Invenergy’s CSO. In fact, the Town of Burrillville could almost certainly not be qualified by the ISO to buy Invenergy’s CSO. But, in any event, if Invenergy sold out of its CSO, the Town of Burrillville would have no liability for the CSO.

So, in summary, the Town of Burrillville is in no way responsible for Invenergy’s bad decision to buy into a forward capacity energy market before being sure that they would be able to supply the energy required.

Invenergy made the promise, not Burrillville.

So I ask again, “Why should anyone in Burrillville care about bad decisions made by a Chicago based energy company? How is it possible that Burrillville should be liable for Invenergy’s bad business decisions?”

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CLF supports power plant bill, calls out ‘scare tactics’ http://www.rifuture.org/clf-supports-senate-power-plant-bill/ http://www.rifuture.org/clf-supports-senate-power-plant-bill/#respond Tue, 07 Jun 2016 14:56:17 +0000 http://www.rifuture.org/?p=64117 2016-05-26 Burrillville at the State House 021
Paul Fogarty addresses constituents at the State House

The Conservation Law Fund (CLF) supports S-3037, by Senators Fogarty, Nesselbush, and Kettle, and respectfully urges passage of this bill. This bill addresses an important issue pertaining to the proposal by Invenergy to build a new 900 MW fossil-fuel power plant in Burrillville, RI.

CLF has considerable first-hand knowledge of the Invenergy proposal. CLF is the only environmental organization that has been admitted as a full party before the Energy Facility Siting Board (EFSB) in Docket SB 20 15-06, which is the Invenergy permitting proceeding. CLF is the only environmental organization that has been admitted as a full party in the Public Utilities Commission Docket # 4606 that is considering issues pertaining to Invenergy (including whether the proposed plant is even needed and what the ratepayer impacts might be).

In connection with these legal proceedings, CLF has received and reviewed thousands of pages of evidence, including significant quantities of confidential information pertaining to the Invenergy proposal. CLF urges passage of Senator Fogarty’s bill because it addresses a crucially important issue that is not being addressed anywhere else — and, indeed, cannot be addressed anywhere else: the matter of voter approval for tax treaties.

I respectfully direct your attention to the portion of this bill beginning on page 3, line 34, and running through page 4.

Under long-existing law, R.I. General Laws § 44-3-30, the Town Council of Burrillville has the legal ability to enter into tax agreements, called “tax treaties,” with the proponent or owner of electricity-generating plants within the Town. Senator Fogarty’s bill would make one crucially important change to this law. The bill would retain the long-existing power of the Burrillville Town Council to enter into these tax treaties — but would require voter approval of such treaties.

This bill is good for democratic process.

The only argument that I have personally heard from Invenergy’s lawyers against this provision in the Fogarty Bill is that, by requiring such voter approval for tax treaties, the Bill would stymie any and all infrastructure projects in the state. I was even told that passage of the Fogarty Bill would prevent small projects from going forward at the Johnston Land Fill.

This is untrue. The underlying, existing statute that the Fogarty Bill modifies pertains only to Burrillville, and only to electricity generators in Burrillville. The Bill would have no application and no effect anywhere else in the state.

Moreover, if enacted, the Fogarty Bill would not stop the Invenergy plant from being built — nor even prevent the Burrillville Town Council from entering into a tax treaty with Invenergy. The only thing the Fogarty Bill would do is require that any such tax treaty be voted on by the people of Burrillville.

And, in the event that such a tax treaty were turned down by Burrilliville voters, even that would not necessarily stop the Invenergy plant from being built. The tax treaty that was voted down would not take effect, but Invenergy could seek to negotiate a different tax treaty, or could even build the plant without a tax treaty.

In short, the scare tactics used by Invenergy and its allies to oppose this provision of the Fogarty Bill are just not true.

I want to address one other provision in this bill: the section on page 1, lines 7 to 14, that would enlarge the membership of the EFSB. When this bill was heard in the House Environment Committee on Thursday, May 26, National Grid expressed reservations about expanding the membership of the EFSB, and said that so expanding the EFSB could potentially jeopardize tens (or even hundreds) of millions of dollars of pending infrastructure projects.

CLF has long had reservations about the way the current EFSB is constituted; thus, CLF well understands the impulse to change how the EFSB is constituted. Nevertheless, CLF believes that the most critically important portion of Senator Fogarty’s bill is the portion on page 4 requiring voter approval of tax treaties. For that reason, if there is significant opposition to the provision on page 1 of the bill (changing the membership of the EFSB). CLF respectfully urges that you strip out that latter provision and pass the rest of the bill.

[This post was created with an advanced copy of Jerry Elmer’s testimony for tomorrow’s Senate Judiciary hearing.]

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Invenergy’s Niland pitches power plant at country club http://www.rifuture.org/invenergy-pitches-country-club/ http://www.rifuture.org/invenergy-pitches-country-club/#comments Thu, 26 May 2016 17:46:28 +0000 http://www.rifuture.org/?p=63680 John Niland
John Niland

John Niland, Invenergy’s director of development, gave a short presentation and answered eight questions at the Northern Rhode Island Chamber of Commerce’s Eggs & Issues Breakfast  Thursday morning. The questions were submitted in writing and carefully vetted before being read to Niland. The event was sponsored by the Clear River Energy Center, so there was little expectation of any kind of robust give and take. Held at the exclusive Kirkbrae Country Club, it wasn’t the venue for tough questions.

In attendance at this breakfast was Woonsocket Mayor Lisa Baldelli-Hunt, and state representatives Michael Marcello and Brian Newberry.

Niland has been Invenergy’s front man for a proposed fracked gas and diesel oil burning power plant in Burrillville. His messaging is always very careful and measured. Still, over the course of his short talk, he did reveal some interesting nuggets of information.

DSC_1682The proposed power plant is dual fuel, so it can burn either gas or oil. Though gas is not a clean energy source, it is better than burning oil for the environment directly surrounding the plant. The circumstances under which oil will be burned, then, is of some importance. Niland said, “some people are saying we will be making an economic choice” as to which fuel to burn when. [In fact, I was the first to suggest this, back in January.]

Niland did not dispute this analysis, per se, but said instead that the last time oil and gas were at price parity was in 2014, and indicated that it would therefor not be a problem.

He seems to think that oil’s current price of around three and four times that of gas is a permanent condition, ignoring the possibility of the gas bubble bursting (as I pointed out here) or that oil will collapse in price due to competition from renewables.

Niland also said that entering the ISO Forward Capacity Auction “was a risk for [Invenergy].” As I pointed out here, Invenergy’s proposed plant’s performance in the Forward capacity Market demonstrates that the plant is not needed. The ISO, a market that determines future energy prices here in New England, bought some power from Invenergy, but all the power it bought is surplus.

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Lorraine Savard

Niland completely reverses this analysis. Committing to purchasing some of the power from the proposed plant, he says, is the ISO’s “way of saying,’we need this power.’”

Not quite.

As for the water that Invenergy hopes to draw from a MTBE contaminated well and clean before dumping it as wast water in the Clear River, Niland admits that his company can “probably” clean the water and that they are “currently working up a detailed design” for the water treatment. MTBE is responsible for the closing of wells in Burrillville and has been linked to a terrible cancer cluster.

During the question and answer period Niland seemed pleased that Rhode Island has an Energy Facility Siting Board. Many states lack such a board, and he seemed to like having to deal with a state level agency made to smooth the way for power plant projects.

As for noise levels for the standard operation of the plant, Niland called the 43 decibels currently on the books in Burrillville “somewhat restrictive” and said that his company will ask for a variance.

Some curious math was proposed by Niland, who said that the plant, if approved, will begin construction “around this time next year, (May 2017) and be completed in 30-36 months, opening in June 2019. Not to be a stickler, but that’s 25 months for construction. We know that rushing construction leads to problems, is that what we’re heading for here?

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More confusion, not clarity, from the Burrillville Town Council http://www.rifuture.org/confusion-not-clarity-btc/ http://www.rifuture.org/confusion-not-clarity-btc/#comments Thu, 19 May 2016 13:28:50 +0000 http://www.rifuture.org/?p=63352 John Pacheco
Council President John Pacheco III

At the second “special meeting” of the Burrillville Town Council, held as a semi-official “workshop” to allow discussion of various aspects of Invenergy‘s plan to build a fracked gas and diesel oil burning electrical plant in the town, the agenda, entitled “Hour on Power II” claimed that the “fundamentals of municipal tax agreements” would be discussed. Potential tax agreements with Invenergy are a very contentious issue, because under state law, as explained by Conservation Law Foundation Senior Attorney Jerry Elmer, Burillville has the right to set the property taxes on the plant at any level it chooses, yet Town Solicitor Oleg Nikolyszyn, it seems, disagrees, maintaining that the Town must negotiate a fair tax treaty with Invenergy.

Expecting that there would be expert legal advice on offer, many residents made the trip to this special meeting, only to find that there were no lawyers or expert advice on offer. Instead, the Town Council introduced Dr. Robin Muksian, a resident of Burrillville who currently serves as executive director of operations for the Providence School Department. She holds a Ph.D. in rhetoric and composition. Speaking as someone with some experience in negotiating deals between the state and private citizens, (she claims to have once lost a strip of land to the state in some kind of imminent domain situation) Muksian said that under state law, the town “must” negotiate with Invenergy, they can’t just set the tax at what ever rate they wish. Jerry Elmer explained otherwise, quite clearly, here.

Muksian misquoted the statute, advancing the idea that under state law 44-3-30, Burrillville “must negotiate” with Invenergy for a fair tax treaty, when the law actually states that town may “determine, by ordinance or resolution, an amount of taxes to be paid each year”. The plain text of the law does not contain the word negotiate, and if other laws on the books do contain such a provision, it does not matter, because 44-3-30 starts with the words, “Notwithstanding any other provisions of the general laws to the contrary,” meaning that 44-3-30 supersedes any other laws governing such negotiations.

Muksian also admitted to coming to the power plant issue late, and that she hadn’t attended any of the Energy Facility Siting Board (EFSB) meetings held in the town so far. This might explain why she thought that residents could bring questions to the EFSB, instead of just comments. The EFSB does not respond to residents at these meetings, yet Muksian said that questions should be brought to the EFSB at these meetings.

Under questioning from Burrillville resident Paul Lefebvre, Muksian at first dodged the question of whether or not she opposed the building of the new power plant. It took Lefebvre several questions before Muksian reluctantly said that she opposes the plant. For some reason she seemed at first to strike a more neutral position.

Most of Muksian’s talk is in the first half hour of the video below. Note that the meeting took place in Burrillville’s beautiful Assembly Theater, which was dark and not kind to video or photography. The Town Council is on the stage, well lit. The rest of those in attendance, not so much.

Many in attendance were asking themselves why Muksian was given so much time to expound on legal issues she was clearly not qualified to speak about. She constantly prefaced her comments by saying that she was “speaking as a resident of Burrillville” and that she wasn’t a lawyer. That raised an important question for the Town Council that went unanswered: Why Muksian and not any other non-lawyer resident of Burrillville?

After the meeting a resident told me that there is a rumor that Muksian is being considered for the position of Town Manager. Michael Wood, the current Town Manager, was not in attendance at the meeting, and Council President John Pacheco, from the stage, made a pointed comment about Wood’s contract being up for renewal in February of 2017. During the meeting, when a resident suggested that Michael Wood be fired, there was a standing ovation.

Wood has alienated many in the town with what one resident characterized as his “imperious” attitude. Further, in the April 23 Burrillville Bugle, delivered to every resident’s mailbox every month, Wood made comments that seemed to indicate his support for the new power plant and disregarded the environmental and health concerns of residents. For instance, he said, “the negative effects of the existing power plant, Ocean State, is not “anything to be overly concerned about.” Many feel that the over all tenor of his comments in the Bugle indicate that he supports building the plant.

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Town Councillor Kimberly Brissette-Brown

As a result, the residents of Burrillville distrust Wood’s judgement when it comes to the hiring of experts to review the proposed plant’s impact on health, environment, wildlife, water quality, noise etc. They also distrust his ability to negotiate with Invenergy wisely, with the best interests of the town in mind.

A breath of fresh air came to the meeting about 82 minutes into it. Barry Craig, an actual lawyer (though not one licensed to practice law in Rhode Island) and a Burrillville resident, rose to call out the Town Council and Town Solicitor Oleg Nikolyszyn on what he termed their timidity in dealing with Invenergy.

Craig attended the first EFSB meeting in Burrillville. He thought, “it was very poorly managed.” He called the set up of the meeting, with the applicants (Invenergy’s Director of Development John Niland and his lawyers) on stage and the residents of Burrillville below them in the seats of the auditorium was “an insult.”

Craig said that to defeat this plant, the residents of Burrillville, through their Town Council, must “vigorously oppose” the plant. Craig came to the special town council meeting last night because he read the legal opinions of Town Solicitor Nikolyszyn, made in response to questions posed by residents. “At best,” said Craig, “I read these responses as being timid, at worst I read these responses as responses that discourage action rather than encourage action.”

For instance, the proper answer to the question, “Can the town council find new solutions to prevent locating the power plant in Burrillville?” isn’t to note that the EFSB has enormous power, the answer, says Craig, is, “Can we find creative ways of dealing with this issue? … Anything that delays this project makes it less likely… Companies like this work on a time schedule. If they can’t get a project done within a particular time frame they move onto the next project.”

One thing that became very clear in last night’s Burrillville Town council meeting is that discussing complex legal issues without lawyers present is a waste of time. Perhaps Muksian’s appearance was an audition for a future job, perhaps she’s just a citizen who waded into waters over her head, but her advice and commentary were worse than a waste of time: They spread dangerous misinformation, misinformation that will weaken the Town’s resolve and ability to fight Invenergy’s plans for the town.

Burrillville doesn’t need more bullshit. Burrillville needs courageous leadership ready to fight Invenergy with everything they have, or they will be living with the first of a series of such power plants very soon.

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