Charlottesville, Virginia (Platts)--2Jun2008

Massachusetts' first major energy bill in a decade has hit a snag over a
provision that would require utilities to secure part of their power from
gasified coal-fired plants, groups on both sides of the debate said Monday.

Environmentalists and industry advocates are at odds over an alternative
portfolio standard, a requirement that works much like a renewable portfolio
standard. But in this case, the utilities are required to purchase a set
amount of power from gasified coal-fired generation, combined heat and power
and other alternatives.

A joint committee is trying to work out differences in the bill (S. 2468)
passed by the House and Senate.

Samuel Krasnow, policy advocate with Environment Northeast, said Monday
that his group does not oppose gasified coal generation, but wants the plants
to meet the same emissions standards as new natural gas-fired plants.

"Any subsidy for alternative energy technology must require stringent
environmental performance," he said.

No gasified coal-fired projects are under review in southern New England,
but supporters of the technology say the alternative compliance standard could
encourage investment in this area.

Angela O'Connor, president of the New England Power Generators
Association, said that environmental groups need a "reality check" when it
comes to portfolio planning in New England.

"If the goal here is to look at alternative technologies you need a full
portfolio of resources to meet increasing demand. Alternative technologies
have to be a part of that," she said.

O'Connor said that NEPGA does not support any one generation technology
over the other. In the most recent version of the bill, the state Division of
Energy Resources would set how much power utilities would have to buy from
alternative technologies.

If enacted, the bill will be the first major change in energy law in the
state since it restructured the industry more than a decade ago.