EME 444
Global Energy Enterprise

RPS Case Study, Part 3

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The following Case Study is written by the course designer. The framework of this Case Study reflects actual Pennsylvania policy and data. All information about stakeholders, especially assessments related to the likelihood of participation in nonmarket action and the strategy that may or may not be evoked is the author's opinion and presented in a manner to best demonstrate the lesson content of this course. This Case Study does not necessarily represent the actual position or strategy held or planned by any named stakeholder.

Case Study, Continued...

In the first part of this Case Study, we identified the issue and provided background, including a full description of the principles of Renewable Portfolio Standards (RPS) policy. In the second part, we considered the issue from the viewpoint of a wide range of stakeholders. Using an orderly format and presentation, we formulated a description of each stakeholder, initial position, and an assessment of all factors related to the demand for and supply of nonmarket action. In this part 3, we will now present an analysis of our findings and suggest strategy options.

The following nonmarket strategy is prepared from the point of view of the Mid-Atlantic Renewable Energy Association (MAREA), which supports the passing of SB 300.

I. Arena

Recall that the issue is: "Do you support or oppose PA SB 300?." Since this bill is being debated in the PA Senate, that is the arena.

II. General Strategy

First we will consider the three general strategies (of public politics):

Representation strategy (mobilizing voters). MAREA has low cost of organizing and extensive coverage and they have a history of mobilizing voters. This may be a good option. 

Majority building strategy (direct recruiting of public office holders). MAREA has some experience in this area, but doesn’t have established access to or relationships with many Legislators (especially those opposed). As a nonprofit, MAREA is also limited in its political activities. These limitations will be considered carefully later in this case study as we evaluate individual strategies.

Informational Strategies (data and understanding about an issue). Within its membership and board, MAREA has deep experience and knowledge with the issue at hand. The bill itself is not very complicated, but the implications have some nuance to them, e.g. how an RPS works and how they impact SRECs. In addition, most people have no experience with or understanding of SRECs and how they impact the solar market. It may be worthwhile to educate constituents in order to foster support.

III. Consideration of Individual Strategies

Lobbying: In a lobbying strategy, MAREA would seek to influence the votes of Legislators by accessing the lawmakers directly and providing strategic information. Because MAREA is an IRS Section 501(c)(3) Organization (a type of non-profit), it is limited in how much lobbying action it is allowed to take. This strategy will be screened out because it is “contrary to the law.”

Electoral Support: In an electoral support strategy, MAREA would focus on providing resources that help candidates during elections. Again, because of its Section 501(3)(c) status, MAREA is prohibited from taking these actions.

Grassroots: A grassroots strategy would build on the connection between voters and their elected officials, and may be used as part of an informational or representation strategy. With its considerable number (8,000), extensive coverage and low cost of organizing, this is a good strategy. Again, however, restrictions apply because of their 501(c)(3) tax status, and the nature of the communication would need to be primarily educational and non-partisan.

Coalition Building:

In a coalition building strategy, MAREA would work with other stakeholders who support the bill. To this end, MAREA had recently established a reciprocating relationship with PA-SEIA, where the two organizations provide one another with “honorary” memberships. PA-SEIA is a section 501(c)(6) nonprofit with far fewer restrictions on its legislative and political activities.

PennFuture, another nonprofit supporting passage of this bill, is much larger than MAREA and PA-SEIA and has a broader focus. MAREA works with PennFuture analysts on relevant policy issues as they arise and directs MAREA members to PennFuture resources and events. The opportunity for a more formalized coalition is limited by the different size and focus of the organizations.

System owners in PA (large and small) are assessed to be highly motivated (a “large” to “substantial” demand for market action) but the predicted level of actual market action is low due to the high cost of organizing. Opportunities for coalition with these promising stakeholders appear limited.

Solar installers are also a promising group but without structure or organization. The possibility of forming an effective coalition seems limited.

Ratepayers supporting the passage of HB1580 have a low demand for action and very high cost of organizing, making them, all in all, a poor option for coalition building.

Testimony: Opportunities for testimony on this issue are not available and will not be part of the planned strategy. No one has been invited to testify about the bill, there is no legal action being taken (i.e. no opportunities for testifying in court), and the bill is not open for public comment. If opportunities arise, they will be considered on a case by case basis. 

Public Advocacy: In a public advocacy strategy, MAREA would communicate directly to the public conveying a particular position on an issue. Again, activities of this nature are limited by MAREA’s IRS standing; however, non-partisan educational communications can be done without restraint. Educating the general public about how an increased RPS would positively impact the solar industry without stating specific support for SB 300 is something that could be done, for example.

Judicial Actions: Judicial strategies are not applicable to this issue at this point. The current RPS is legal, so there is no valid basis for a lawsuit.

Proposed Strategy: Regarding its ability to participate in public politics, MAREA is constrained by its IRS categorization as a Section 501(3)(c) nonprofit. It may carry out some activities that attempt to influence legislation, but these may not be a “substantial” part of the organization’s activities. Other activities, however, such as educational meetings, the preparation and distribution of educational materials, or other efforts related to public policy issues in an educational manner may be performed without violating the rules for a 501(3)(c) organization.

IV. Proposed Strategy

Recognizing this, and the untapped potential demand for action on the part of system owners in PA, MAREA proposes the following strategy:

  1. Conduct Statewide Research of Solar Electric System Owners and Installers
    • A state rebate program for solar was started in May of 2008 and led to the installation of thousands of new solar electric systems. As part of the application process, system owners were required to provide details about the installed system, including technology, design, address, and contact info. This information is collected and held by the PA Department of Environmental Protection (DEP). It is currently unavailable to the public. MAREA will use the Right to Know Law (RTKL) to request and hopefully receive access to this data.
    • Assuming that contact info for system owners in PA is successfully acquired through the RTKL, MAREA will prepare and execute a survey of each of these owners. The survey will cover a variety of issues, including how the owner is currently selling RECs and issues the owner may be having or anticipates having on this front.
    • Simultaneously, MAREA will prepare and execute a survey of solar installers. This survey will also cover many issues, including the impact the declining SREC market is having on their business and jobs.
    • The combined survey results will be compiled into a report, “The State of Solar in PA, 2011.” To the extent possible, results will be tabulated geographically.
    • A press release will be issued announcing the availability of the report and a highlight of findings. A press conference will be held to announce the findings. Copies of the report will be distributed to state-level policy makers. The report and its findings will be published on the MAREA web site, along with a webinar interpreting the results.
    • Without overreaching 501(3)(c) status, a simple campaign will be developed to educate on the content of HB1580 and instruct those who wish to take action how to do so: legislative contact info, links to PA-SEIA, and PennFuture. The campaign will use both e-mail and social media to reach out to MAREA members, system owners, and solar installers.
    • The report will be repeated on a yearly basis.
  2. Collect and disseminate information from third party sources to policy makers. For example, the recent (at that time) study Solar Power Generation in the US: Too expensive, or a bargain?, which looks at benefits of solar to public (ratepayers and taxpayers).
  3. Report on status of all solar policy at monthly meetings and in monthly newsletter.
  4. Through events, white papers, and speaking invitations, work to educate MAREA members and interested public on topics related to solar technology, policy, markets, rules, and issues.

    If contact info for system owners in PA is successfully acquired through the RTKL, the cost of organizing will drop considerably. This will change the nonmarket analysis for this stakeholder. With the easier mobilization of this large group that has complete regional coverage, the predicted amount of nonmarket action will go from limited to high.

V. Status

January 2014: The Solar Rebate Program ended in Dec 2013 (all funds were distributed). A Right To Know Request was filed with the DEP and on Jan 13, 2014, MAREA received the full records for ALL solar electric systems (7,000) funded under this 4-1/2 year program. Meanwhile, new bills were introduced to revise the PA AEPS; all unsuccessful to date. MAREA will use the data awarded through the Right to Know Request, to contact and organize solar electric system owners for future opportuities.

May 2023: No action has been taken on updating PA AEPS.