State Clean Energy Actions January December 2014 Update

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1 State Clean Energy Actions January December 2014 Update Sue Gander Energy, Environment & Transportation Division NGA Center for Best Practices April 16, 2015

2 Online database compiles clean energy activities by all 55 states, territories and commonwealths Searchable by state, category, subcategory, policy lever and action. 2

3 2014 State Clean Energy Actions Summary 2014 State Clean Energy Activity by Category (listed in order of frequency) Areas with the highest level of state activity were: - Alternative Fuels, Vehicles and Infrastructure - Advanced Clean Energy and Energy Efficiency Financial Incentives - Clean Power Plan Resolutions - Energy Planning Category Number of States with Activity GHG Emissions 25 Advanced Clean Energy 20 Alternative Fuels and Vehicles 19 Energy Efficiency 19 Shale Gas Development, Regulation and Policy Energy Planning Lead by Example 13 Power Grid Enhancements 9 Reforming Utility Incentives for Clean Energy Clean Energy RD & D and Economic Development 8 5 3

4 Greenhouse Gas Emissions 2014: 25 states 42 total state actions GHG Registries Emission Reduction Targets Climate Action Plans Clean Power Plan Resolutions Example of State Activity California Governor Edmund Brown signed an agreement with the Mexican government to help reduce greenhouse gas emissions. The agreement seeks to align greenhouse gas reduction programs and strategies and to improve fuel and truck efficiency standards and markets for clean energy technologies. Wyoming Governor Mead signed legislation that requests Congress to require the EPA to respect the primacy of the state and to take into account the unique policies, energy needs, and economic priorities of Wyoming and other states when developing guidelines for regulation C02 emissions from existing power plants. 4

5 Advanced Clean Energy 2014: 20 states and territories 38 total state actions Financial and Other Incentives Renewable/Alternative Energy Portfolio Standards Net Metering and System Charges Public Benefit Funds Multistate and International Initiatives Examples of State Activity Massachusetts Governor Deval Patrick announced the success of 7 communities in achieving the Green Communities Program s 20% energy use reduction goal. The program awards communities funds to advance clean energy projects and to win a Green Communities Designation through meeting five clean energy benchmarks. New York passed legislation that directed the Public Service Commission to conduct a study to analyze the economic and environmental benefits from and the cost burden, if any, from the net energy metering program in the state. Rhode Island passed legislation that created the Clean Energy Security Act that established a framework for the state to participate in New England regional efforts to make strategic investments in resources and infrastructure to achieve a clean and reliable energy future. 5

6 Alternative Fuels and Vehicles 2014: 19 states and territories 31 total state actions Financial and Other Incentives Infrastructure Consumption Targets/Renewable Fuel Standards Multistate Initiatives Example of State Activity The Governors of California, Connecticut, Massachusetts, Maryland, Oregon, Rhode Island and Vermont, have agreed to the Multi-State Zero- Emission Vehicle Action Plan, which set a goal to have 3.3 million zero-emission vehicles on U.S. roads by ZEVs include battery-electric, plug-in hybridelectric, and hydrogen fuel-cell electric vehicles. ZEV adoption will be encouraged through purchasing targets for car fleets of governmental agencies and establishing infrastructure for fueling stations. Under the agreement, each state will implement its own set of activities to encourage broader ZEV adoption and coordinate with other states to ensure collective progress and pursue shared standards. 6

7 Energy Efficiency 2014: 19 states and territories 24 total state actions Financial and Other Incentives Building Energy Codes and Requirements Energy Savings Targets/Energy Efficiency Resource Standards Utility Demand-Size Management Appliance/Equipment Efficiency Standards Public Benefit Funds Multistate and International Initiatives Examples of State Activity Nevada Governor Brian Sandoval announced the Home Energy Retrofit Opportunities for Seniors weatherization program that provides energy assessments on qualifying senior citizen s homes and for the installation of recommended weatherization measures. New Hampshire passed legislation that required the Public Utilities Commission to convene electric utilities to determine the most cost effective and appropriate means to provide customers with information explaining the system benefits charge, renewable portfolio standard requirements and the regional greenhouse gas initiative and the administration of those programs. 7

8 Shale Gas Development, Regulation and Policy 2014: 20 states 18 total state actions Example of State Activity Colorado Governor John Hickenlooper announced his support for new regulations approved by the Colorado Quality Control Commission in order to reduce oil and gas drilling emissions. The regulations require oil and gas companies to install devices to better detect and repair leaks in oil and gas infrastructure, like pipelines. Additionally, the rules require companies to capture up to 95% of emissions, primarily methane and volatile organic compounds, that would otherwise leak into the atmosphere. Financial and Other Incentives Environmental Safeguards North Dakota Governor Jack Dalrymple, in conjunction with his industrial commission outlined recommendations for how oil drillers can reduce the flaring of natural gas upon its release. The recommendations were developed by an industry task force and called for drillers to have a gas capture plan in place before drilling begins, financial incentives fordeveloping gas infrastructure. 8

9 Energy Planning 2014: 14 states 28 total state actions State Energy Plans and Strategies Resilience Plans Multistate and International Initiatives Example of State Activity Utah Governor Gary Herbert unveiled a statewide plan that makes recommended actions that state government, residents and businesses can take to boost energy efficiency and conservation. Those actions include adopting and enforcing building codes that increase energy efficiency, creating a revolving loan fund and promoting tax credits for industries investing in energy efficiency and promoting alternative transportation and fuels. 9

10 Lead by Example 2014: 13 states 18 total state actions Building Efficiency Alternative Fuel and Vehicle Fleets Appliance/Equipment Efficiency Green Power Purchasing Examples of State Activity Kentucky Governor Steve Beshear announced a new strategy to increase energy efficiency through state government facilities. The governor directed cabinet agencies to benchmark and disclose public buildings to be profiled on a new public website. Virginia Governor Terry McAuliffe signed an executive order, which required all state agencies to pursue energy efficiency measures, especially Energy Performance Contracting. 10

11 Power Grid Enhancements 2014: 9 states 11 total state actions Energy Storage Development Smart Grid Initiatives Microgrid Development Transmission Planning and Siting Examples of State Activity Connecticut Governor Dan Malloy unveiled a cybersecurity plan in partnership with the Public Utilities Regulatory Authority to help strengthen the state s utilities defense against possible future cyber-attack threats. Kansas passed legislation that created an electric transmission advisory council to further ensure planning and the reliable operation of the state s integrated electrical transmission system and facilitate the delivery and utilization of the state s energy through improvements in the state s electric transmission infrastructure. 11

12 Reforming Utility Incentives for Clean Energy 2014: 8 states and territories 10 total state actions Examples of State Activity New York Governor Andrew Cuomo announced a comprehensive Reforming the Energy Vision strategy to spur clean energy innovation and investment, improve customer choice and protect the environment and modernizing how the utility sector operates. Comprehensive Reform Utility Rate Realignment Puerto Rico Governor Alejandro Garcia-Padilla signed a comprehensive utility sector reform bill intended to reduce electricity bills, increase utility transparency, promote renewable energy, increase efficiency and improve customer service. The law also established a new energy commission and consumer advocate office, charged with oversight of the publicly owned utility. 12

13 Clean Energy Research, Development and Demonstration and Economic Development 2014: 5 states 11 total state actions Examples of State Activity: New Hampshire passed legislation to establish a committee to study offshore wind energy and other ocean power technology development. Washington Governor Jay Inslee issued an executive order to reduce pollution and advance the development and deployment of clean energy technologies. The order requires the development of a state public-action plan to meet its emissions goals for 2020 and beyond in a cost-effective manner. 13

14 Category Definitions Energy Efficiency. This category includes state efforts to lower electricity and/or natural gas use, while maintaining the same level of service. Measures include appliance and/or equipment efficiency standards; building energy codes; utility demand-sidemanagement initiatives; utility rate restructuring; energy savings targets or energy-efficiency resource requirements; public benefits funds; and financial incentives, such as loans, rebates, tax credits, and holidays, to lower up-front costs. Incentives for energy efficiency also include non-financial measures, such as providing consumers with information about their energy usage. Shale Gas Development, Regulation and Policy. This category includes state efforts to address the policy, regulatory and research needs for environmental safeguards and related protective practices during shale energy resource development. Advanced Clean Energy. This category includes state efforts in the utility sector to promote the use of electricity from clean energy sources, including renewable energy from solar, wind, geothermal, biomass, hydro, wave, and tidal sources, as well as other sources as defined by the state, including nuclear energy. Measures include renewable or alternative energy portfolio standards and goals; net metering and interconnection standards; research supporting advanced clean coal technology; public benefits funds to promote clean electricity; and financial incentives such as tax credits, grants, loans, and rebates to reduce initial costs. This category also includes incentives such as streamlining permitting processes for renewable generation systems and conducting studies to identify the benefits of developing renewable energy resources, as well as providing incentives for wider use of advance clean energy. 14

15 Category Definitions Alternative Fuels and Vehicles. This category includes state efforts to support the supply, distribution, and production of alternative fuels, such as biomass and natural gas, and vehicles that are powered by them or by electricity. Measures include consumption targets and renewable fuel standards; incentives to support the production and distribution of alternative fuel and alternative fuel vehicles, such as tax benefits, loans, grants, and rebates; nonfinancial incentives to promote the use of alternative fuel and electric vehicles; and evaluating and enhancing infrastructure for alternative fuel vehicles, including refueling or recharging stations. Lead-by-Example Initiatives. This category includes state efforts to increase energy efficiency in the operations of their governments and to support the use of clean energy by government agencies. Measures include requirements to purchase energy efficient appliances and equipment; energy performance targets for new and existing public buildings; and purchasing programs for clean energy and for alternative fuel and low-emission fleets. Greenhouse Gas Emissions Activities. This category includes state or regional efforts to measure greenhouse gas (GHG) emissions, develop plans for GHG management and adopt measures specifically targeting GHG emissions reductions. The category also includes legislative resolutions regarding the implementation of future federal GHG emissions rules expected under section 111(d) of the Clean Air Act as included in the Clean Power Plan. Resolutions are used to express the intent of lawmakers but do not have the force of law. They include simple, joint and concurrent resolutions. Concurrent resolutions require gubernatorial approval. 15

16 Category Definitions Clean Energy Research, Development, and Demonstration (RD&D) and Economic Development. This category includes state efforts to support partnerships or provide funding that significantly contributes to clean energy research, development, and demonstration (RD&D); policy and research initiatives; education, training, and workforce development efforts; and financial incentive programs to stimulate the demand for clean energy, increase workforce opportunities, and enhance economic growth within the clean energy sector. Many other measures may enhance economic development associated with clean energy, but the actions covered in this category are ones specifically designed to advance economic development in the clean energy sector. Energy Planning. This category includes state efforts to support energy planning for future energy needs including resilience. State efforts can include commissioning an energy task force and completing a state energy plan or resilience plan. Reforming Utility Incentives for Clean Energy. This category includes state efforts to examine and address the changing needs of the electricity sector associated with growing demand for energy efficiency and distributed renewable energy alongside the continued need for reliable and affordable power. Measures include a range of strategies to encourage increased utility investments, such as realigning utility rates to decouple utility revenues from electricity or natural gas sales and providing financial incentives to meet goals for energy efficiency, as well as more comprehensive efforts to reform the way a state s electricity is procured, distributed and regulated. Power Grid Enhancements. Actions in this category include efforts to strengthen and modernize the electric grid. Such measures include energy storage development, smart grid initiatives, microgrid development and transmission planning and siting. 16