For Immediate Release: Wednesday, November 15, 2006
Montgomery County Executive Douglas M. Duncan announced that residents, businesses and other groups can begin signing up today for Montgomery County’s Clean Energy Rewards program, the first local program in the country to provide an incentive to those who purchase energy from renewable sources. The Clean Energy Rewards Program, with the slogan “Helping You Make the Switch,” will reward consumers for choosing eligible clean energy products by reducing the cost premium of green power. Legislation to authorize the Clean Energy Rewards rebate was sponsored by Montgomery County Council President George Leventhal. In addition, Duncan also announced that the County has doubled its purchase of wind energy, from five percent to 10 percent. This is the first step in a commitment made by Duncan and Leventhal last April to increase the County’s purchase of wind energy to 20 percent over the next five years.
“I’m proud that Montgomery County is setting the example for our residents and businesses by increasing our purchase of wind energy to 10 percent,” said Duncan. “Using clean energy is helping to improve our environment, increasing demand for renewable resources, and demonstrating that using cleaner sources of electricity is a responsible decision. I encourage everyone to fight global warming and air pollution on a personal basis by following the County’s lead and purchasing renewable energy through the Clean Energy Rewards Program.”
It is estimated that the Clean Energy Rewards incentive will offset about 40 percent of the cost of purchasing clean energy. Residents can sign up starting today for the clean energy and the rewards, which begin in January, by going to the County’s website at www.montgomerycountymd.gov/cleanenergyrewards.
“The threat of global warming is probably the most crucial challenge facing our generation, but through individual and local actions we can make a difference,” said Leventhal. “That’s why I proposed the Clean Energy Rewards program that will reward County residents with a financial incentive when they choose clean, renewable energy. That’s also why County Executive Duncan and I proposed increasing the County’s commitment to clean, renewable energy to 20 percent of our total electricity use over the next five years.”
Consumers can purchase either clean energy or renewable energy certificates (RECs), also known as green tags. By purchasing RECs, consumers help offset or cancel out the impacts of the pollution created through their own electricity generation while also supporting the efforts of clean energy generators to reduce pollution. Buying RECs is also a way for consumers who do not get an electric bill (such as some apartment or condo dwellers) to participate in the Clean Energy Rewards program.
“With its impressive initiatives to promote wind power and green buildings, Montgomery County has become a model government in the fight against global warming that cities and counties across the nation now watch and emulate,” said Mike Tidwell, director, Chesapeake Climate Action Network.
Starting in January, residents who “make the switch” to clean energy will receive 1¢ for each kilowatt hour (kWh) of eligible clean energy consumed. Non-residential groups, such as businesses and congregations, will receive 1.5¢ per kWh. The County’s Department of Environmental Protection (DEP) estimates that, on average, the additional cost for purchasing clean energy is 2.5¢ per kWh. With the reward, the typical Montgomery County home will spend an extra $15 to $20 a month. Rewards will be distributed to consumers by the participating energy supplier or RECs marketer. The rewards will appear as a credit or a discount on consumers’ bills.
“With the Clean Energy Reward, the typical Montgomery County home will spend an extra $15 to $20 a month for clean energy – the cost of a family pizza dinner,” said DEP’s Director Jim Caldwell. “This is a small price to pay for ensuring fewer greenhouse gas emissions are released into our air from standard electricity generation. Clean Energy Rewards is about doing your part to leave a clean environment for future generations.”
Energy suppliers providing Clean Energy Rewards electricity choices are Pepco Energy Services and Washington Gas Energy Services. Companies providing Clean Energy Rewards REC choices are Clean Currents, Ltd. and Wind Current.
In September, Montgomery County signed a contract amendment to purchase an additional five percent of energy from wind power – bringing the County’s total to 10 percent. This new purchase has increased the original buying group’s green energy consumption from 40,845,000 kWh to 55,577,849 kWh for fiscal year 2007. This is enough clean energy to offset over 30,000 tons of greenhouse gas emissions. The total purchase may increase as several of the buying group partners are still considering the additional five percent purchase.
Under Duncan’s and Leventhal’s leadership, Montgomery County began purchasing five percent of its energy from wind in 2004, which at that time was the largest municipal purchase of wind energy in the country. Montgomery County, represented a buying group of six County agencies, 11 municipalities, and Prince George’s County, which purchased wind energy from the Mountaineer Wind Energy Center in West Virginia through Washington Gas Energy Services.
Clean energy is electricity generated from renewable resources, such as wind, solar and biomass, which emit little or no pollution. Using clean energy instead of electricity generated from fossil fuels reduces air and water pollution, reduces the country’s dependence on fossil fuels, and combats global warming. Government and citizen purchases of clean energy support the demand for, and development of, new renewable energy projects. The County Council has allocated $361,000 for the program for six months. DEP estimates that if all of the Clean Energy Rewards program incentives are distributed to residents and businesses, over 19,000 tons of greenhouse gas emissions will be prevented, the same impact as planting 5,100 acres of trees in one year.
The energy market in Maryland is deregulated so individuals and businesses have the option to select their energy supplier. Some Montgomery County residents may already be purchasing wind or green electricity from an energy supplier of their choice. To meet the specifications of the Clean Energy Rewards program, energy suppliers negotiated special clean energy products generated from wind, sustainable biomass and solar sources in our region. Because energy generated from these resources releases few if any carbon dioxide and other pollutants, Clean Energy Rewards eligible products have a direct impact on our local air equality and environment.
Since 2000, Montgomery County has also acted as the lead agency for a buying group of 18 jurisdictions and agencies that purchase conventional energy. In March, Duncan announced that the County, by bidding out these electricity purchases, saved $24.6 million over the next three years.
More information about the program, clean energy, and links to Clean Energy Rewards suppliers and their products is available at www.montgomerycountymd.gov/cleanenergyrewards, or by calling DEP at 240-777-7700. Those interested in receiving updates about the Clean Energy Rewards program can also sign up for the program’s e-newsletter at the County’s website.