State climate change bills spark concern from business community

CRAIG PICKELL, CEO and president of Bullard Abrasives, is among the business leaders worried about climate change legislation in the R.I. General Assembly and says he will consider relocating his company if the bills pass. / PBN FILE PHOTO/MICHAEL SALERNO

PROVIDENCE – Combating climate change is a top priority for lawmakers, environmental advocates and business leaders alike.

But state legislation that changes targets to cut greenhouse gas emissions and rely more heavily on renewable energy has raised concern among some business leaders, with one manufacturer threatening to relocate if these bills become law.

Among the reasons for opposition is costs – both in converting outdated buildings to tap into electric heat and higher utility bills if new mandates for electric companies are passed on to ratepayers. Some also question whether the targets laid out – such as zero-net emissions by 2050 – are even possible with at least one major study seeking to answer this question still incomplete.

Whether these concerns will sway lawmakers is unclear.

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The Act on Climate Bill has already won favor in the R.I. Senate and will move to the R.I. House of Representatives after passing out of its Committee on Environment and Natural Resources on Thursday. The legislation calls for the state to reach zero-net emissions by 2050, updating the incremental targets in greenhouse gas reductions over the next 30 years, and making these targets court-enforceable.

Proponents say the bill is a long-awaited update based on the latest science and growing industry movement toward a decarbonized economy. The prior targets, which aimed to reduce greenhouse gases up to 80% by 2050, were set in 2014.

Craig Pickell, president and CEO of Bullard Abrasives, questioned the science behind these new targets, noting the lack of supporting documentation in the legislation to explain exactly why these new numbers were chosen, or how the state will get there.

Amid this uncertainty, he is sure the impact will be higher costs his Lincoln manufacturing company: Up to $100,000 just to convert his building to accommodate electric heat, according to estimates for building retrofits included in a 2020 report on how the state could decarbonize its heating sector. Already burdened by high energy costs, he also feared rate hikes as a result of a another bill recently introduced in the R.I. Senate that would require utility companies to increase the percent of electricity they sell from renewable energy sources, aligning with former Gov. Gina M. Raimondo’s goal of powering the state entirely through renewable sources by 2030.

“It certainly is putting businesses like ours at a crossroads where we would consider moving to another jurisdiction,” Pickell said. 

He also felt the sentiment behind these bills suggested lawmakers were intent on “pushing old-world manufacturers like ours out of the state,” and with it, the many jobs that companies like his provide.

Dave Chenevert, executive director for the Rhode Island Manufacturers Association, echoed Pickell’s concerns about feeling unheard. This session in particular, he felt lawmakers were only soliciting feedback from the business community during public hearings, rather than consulting business leaders before introducing their bills.

“It would be nice if we could be at the table instead of just being on the menu,” Chenevert said.

The Northern Rhode Island Chamber of Commerce, through its lobbyist Lenette Forry-Menard, also testified against the Act on Climate Change bill. Forry-Menard specifically asked for removal of the section that makes the new greenhouse gas reduction targets court-enforceable, suggesting opening up the state for lawsuits would ultimately result in fines or penalties being passed on to businesses.

She also said that a major study by independent nonprofit ISO New England Inc., which aims to identify how regional states could reach 2050 zero-emissions goals, has not been completed.

R.I. Rep. Lauren Carson, D-Newport, who sponsored the House companion bill insisted the legislation does not say anything about fines or higher costs for businesses. 

“This is a bill about designing a plan to decarbonize our economy,” she said. 

And the state has 30 years to hit that target- ample time given the increasing push to decarbonize among major companies and the increasing availability of renewable sources like solar and wind, she said. 

Vincent Sorgi, president and CEO for PPL Corp., which on Thursday announced a deal to buy Narragansett Electric Co. from National Grid, said in a statement the company intended to help the state achieve its 100% renewable energy by 2030 goal.

Senate President Dominick J. Ruggerio, D-North Providence, who introduced the bill earlier this week requiring electricity sellers to increase their percentage of renewables, in an emailed statement noted the increasing availability of renewable sources, including offshore wind.

While offshore wind projects have stalled in recent years due to federal permitting, a recent decision on the first utility-scale wind farm expected to come online off the coast of Martha’s Vineyard, has been viewed by the industry as the sign the log jam has cleared.

Rhode Island is hoping to bring in up to 1,000 megawatts of power through offshore wind: 400 megawatts from a wind farm being developed off the coast of Block Island by Orsted A/S, as well a 600 megawatt farm the state published intent to solicit for in the fall.

The R.I. House of Representatives has historically been where environmental legislation dies in prior sessions, Carson hoped the strong presence of the environmental community among this year’s lawmakers would change that.

“We haven’t passed environmental legislation in years,” she said. “The time has come and Rhode Islanders want this change.”

Indeed, only three of the 33 people who spoke in public comment during a Feb. hearing before the House Committee on Environment were opposed, with support expressed by both National Grid and the Rhode Island AFL-CIO, according to information provided by Larry Berman, communications director for the R.I. House of Representatives.

House Speaker K. Joseph Shekarchi, D-Warwick, in an emailed statement also expressed support for the bill.

“This legislation requires the state to create an enforceable plan to reduce emissions to levels that will help us avoid the worst consequences of rising temperatures and sea levels,” he said.

Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.

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