International Trade Commission investigates Massachusetts renewable energy commitments, imports

The U.S. International Trade Commission has opened an investigation into the potential economic effects of increased renewable energy commitments in New England and Massachusetts and the role of renewable electricity imports in meeting these commitments.

Section 332 of the Tariff Act of 1930, 19 U.S.C. 1332, gives the U.S. International Trade Commission authority to conduct fact-finding investigations on international trade issues. Whether on its own initiative or by request of the President, the Senate Finance Committee, the House Ways and Means Committee, or the U.S. Trade Representative, the USITC may a hold fact-finding investigation on any subject involving tariffs or international trade, including conditions of competition between U.S. and foreign industries.

Following an initial letter dated December 2019 and a supplemental letter dated January 23, 2020 from House Ways and Means Committee chair U.S. Representative Richard Neal to the USITC, on February 12, 2020, the USITC issued notice of a new investigation under Section 332, Renewable Electricity: Potential Economic Effects of Increased Commitments in Massachusetts.

According to the notice, the USITC expects to provide the following information to the House Ways and Means Committee by January 25, 2021:

an overview of the current situation and recent trends in New England and Massachusetts electricity markets with regard to domestic and imported electricity sources and rates for residential and commercial uses, and the status of the transition from nuclear and fossil fuels to renewable sources, including: a description of Massachusetts’ most recent renewable energy goals and commitments as compared to previous commitments and initiatives, the renewable energy goals and commitments in other New England states, and the potential available resources to meet Massachusetts’ and New England’s goals;

a quantitative analysis of the potential economic effects on Massachusetts and the broader New England region of Massachusetts reaching its goals and commitments for renewable electricity sourcing (including the potential economic effects on residential and commercial electricity consumers);

a quantitative analysis of the likely effects on greenhouse gas emissions of meeting these goals and commitments; and

relevant case studies involving other states, regions, or countries that provide insights into the potential economic effects of imports of hydroelectricity, including on efforts to meet renewable energy targets, the rates paid by commercial and residential consumers, and greenhouse gas emissions.

The USITC has requested public input from all interested parties including written submissions by July 28, 2020, and will hold a public hearing in connection with the investigation at 9:30 a.m. on May 7, 2020.