RI Business Leaders Support Compromise Proposed by McKee for Climate Change Legislation
Tuesday, April 06, 2021
A group of Rhode Island business leaders is decrying the proposed 2021 Act on Climate as currently amended before the General Assembly -- and is calling on legislators to consider Governor Dan McKee's proposed compromise.
The leaders (see list below) are supporting McKee's proposal for the legislation -- which is intended to reduce carbon emissions in the state -- that would "limit the ability to sue to the Attorney General, provides some level of checks and balances on the process, and will help the state to avoid wasting precious revenue on numerous lawsuits."
Business Leaders' Statement
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe following statement was undersigned by the business leaders below:
"Climate change is important to all Rhode Islanders, and the business community supports efforts to reduce emissions. As a business community, we are committed to do our share to improve the climate we all live and work in. At the same time, we support thorough discussions that include complete economic analyses and understanding of the impact of the 2021 Act on Climate. This is why we do not support H.5445 SubA and S.78 SubA as currently drafted. We do however support the recent amendment suggested by Governor Dan McKee as a compromise.
To set the stage, Rhode Island’s current law has greenhouse gas (GHG) emission reduction targets of 10% below 1990 levels by 2020, 45% by 2035 and 80% by 2050. State agencies are already working to meet these goals. Rhode Island reduced its energy use by making buildings more energy efficient, meeting the first goal. The U.S. Energy Information Administration (EIA) states, “Rhode Island consumes less energy on a per capita basis than any other state. Rhode Island’s total carbon dioxide emissions were the second-lowest among all states in 2017.” (updated August 20, 2020). We should be proud of these accomplishments.
Both H.5445 SubA and S.78 SubA speed up the target dates to 45% by 2030, 80% by 2040 and net zero by 2050. The bills make the targets mandatory and require state regulators to promulgate rules necessary to meet these targets, no matter what the cost or feasibility, without General Assembly oversight. The bills then give any individual or organization the right to sue the state in superior court, to comply with the mandates regardless of the impact. If the plaintiff wins, the state must pay attorney fees and expert witness fees, and the regulators must move forward to meet the emission target.
At a DEM heating sector meeting, the state’s consultant, The Brattle Group, commented, that meeting the 80% by 2040 “ likely means (near) full decarbonization of residential and commercial heat.” To reach 80% GHG reduction by 2050 (2040 under H.5445 SubA and S.78 SubA) all homes and commercial buildings will have to switch to geothermal heating systems or electric heat pumps, unless new technology surfaces. No commercial cost estimates were provided, and Brattle Group said, “Residential deep energy retrofit” could cost between $50,000 and $100,000 per housing unit. Not all housing units will require a deep retrofit, but our state’s housing stock is aging, and aging buildings are more likely to require a new heating system, better insulation, efficient windows, etc. To reach 80% reduction, all vehicles have to switch to electric. This is from the consultant hired by the state to determine ways to meet the required emission levels.
We along with others are asking questions that have not been answered. “How does Rhode Island obtain enough electricity, without using natural gas, to meet the increase in demand should residents and businesses have to change heating systems and vehicles?” According to EIA, in 2020, 89.2% of Rhode Island’s electricity generation was obtained through the use of natural gas, which must be greatly reduced and eventually eliminated under this legislation. Even the PUC has raised questions about the ability to meet the electric needs.
So far, the state’s experts have suggested it will take full electrification of our businesses, homes, and vehicles within 19 years if H.5445 SubA and S.78 SubA become law. This mandatory target, which allows any individual or organization to file a lawsuit, places the fate of all Rhode Islanders in the hands of individuals with no accountability to the voters.
The Governor’s proposal to limit the ability to sue to the Attorney General, provides some level of checks and balances on the process, and will help the state to avoid wasting precious revenue on numerous lawsuits."
Maureen Grillo, President, Associated Builders and Contractors Rhode Island
Lauren Slocum, President & CEO, Central RI Chamber of Commerce
Michelle Hughes, Chairwoman, East Bay Chamber of Commerce
Steven Lombardi, Executive Director, East Greenwich Chamber of Commerce
Laura McNamara, Executive Director, East Providence Chamber of Commerce
Diane E. Quesnelle, Energy Marketers Association
Peg Fredette, Executive Director, Narragansett Chamber of Commerce
Dr. Jim Halley, Chair, North Kingstown Chamber of Commerce
Liz Catucci, President & CEO, Northern RI Chamber of Commerce
Phil Tedesco, Chief Executive Officer
Al Charbonneau, Executive Director, RI Business Group on Health
Dale Venturini, President & CEO
Terrance Martiesian, Legislative Lobbyist, RI Lumber and Building Material Dealers Association
David Chenevert, RI Manufacturer’s Association
Melissa Travis, President & CEO, RI Society of Certified Public Accountants
Gary Ezovski, Chairman, RI Small Business Economic Summit Regulations Subcommittee
Grafton “Cap” Willey, Chairman, RI Small Business Economic Summit Tax and Budget Committee
Joe Viele, Executive Director, Southern RI Chamber of Commerce
Will Roth, President, RI Staffing Association
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