States are involved in all aspects of energy production and consumption. A key role is to develop policies that support cost-effective renewable energy and energy efficiency technologies.
- State Roles in Energy
- Definitions of Public Policy Ideas
- Pros and Cons of State Policy Options
- Other Sources of Analysis
State Roles in Energy
Under the U.S. federated system of checks and balances — which divides governmental authority among federal, state, and local jurisdictions — states maintain the larger share of legal authority for energy policy. Areas of state responsibilities include:
- Air Quality and Enforcement
- States are primarily responsible to enforce laws and rules for air quality and to deal with violations (unless the violator operates in more than one state). States also work directly with the energy-producing and -consuming industries to set and meet energy-related environmental goals.
- Alternative Fuels for Vehicle Fleets
- State agencies spearhead the use of alternative fuels and the development of fueling infrastructure for alternative fuel vehicles to meet the requirements of the Energy Policy Act of 1992 (EPAct).
- Building Codes
- States and local governments share responsibilities to adopt and enforce building energy codes. Often states help the construction industry meet the requirements of residential and commercial building energy codes.
- Advanced Renewable Energy and Energy Efficiency Technologies
- Through their energy offices, states play an important role in demonstrating and commercializing new energy technologies. One mechanism for this DOE–state collaboration is the State Technologies Advancement Collaborative.
- Financial Incentives
- States provide tax breaks and other incentives for energy production and consumption. For example, see the Database of State Incentives for Renewable Energy.
- Industry Modernization and Economic Development
- Energy is a fundamental input to the economy, and states foster economic development and growth. As a result, state energy programs help businesses use energy effectively, and create and retain jobs.
- Public Education
- States directly communicate the importance of sound energy choices to businesses and the public.
- Transportation Infrastructure Funding
- States are primarily responsible to build and maintain highways and the transportation infrastructure. These funding decisions greatly affect energy consumption, especially from petroleum products.
- Utility Regulation and Deregulation
- State legislatures have the authority to regulate the electric power industry through public utility commissions, or to establish a competitive market for electricity through deregulation. For more information about state deregulation, see DOE's Energy Information Administration's electricity restructuring fact sheets for eight states.
- Water Allocation and Quality
- State legislatures have the authority to ensure there are adequate water supplies for consumers and businesses and to establish and enforce water quality rules, including energy-related environmental goals.
Definitions of Public Policy Ideas
The National Association of State Energy Officials (NASEO) publishes the following definitions of public policy ideas in Energy Efficiency and Renewable Energy Resources: A Primer; p.12; NASEO, October 2001:
- Certification and Labeling
- Establishes a "green" label for electricity certified to be from renewable sources (in whole or in part).
- Codes and Standards
- Establish a minimum level of energy efficiency in buildings, equipment, and appliances.
- Disclosure
- Requires that electricity providers disclose to the customer the environmental emissions profile of all electricity offered for sale.
- Efficiency Certificate
- Establishes a high-efficiency standard and certifies buildings, equipment, and appliances that meet this standard.
- Efficiency Labeling
- Determines the relative energy consumption and its likely cost and displays this information on equipment and appliances.
- Green Power and Green Pricing
- Electric power distribution companies can offer green power products to customers in competitive markets, and green pricing is a utility offering in a regulated market. Both types of products obtain some percentage of their electricity from renewable energy, or "green" resources.
- Net Metering
- Enables on-site renewable sources generation owners to move electricity into the grid and receive the "net" of the price exchange.
- Preferential Financing
- Establishes a link between high-efficiency buildings and mortgage lending practices.
- Renewable Portfolio Standard
- A requirement that a percentage of all electricity sold be generated from renewable resources.
- Systems Benefits Charge
- A charge on the distribution of electricity that is used to provide public benefits, usually in the form of investments in energy efficiency, renewable energy technologies, and low-income assistance.
- Tax Credits and Incentives
- Federal and state investment tax credits reduce renewable source development costs and reduce the cost of energy-efficient technologies.
Pros and Cons of State Policy Options
EERE's State Energy Alternatives publishes a list of state policy options for decision makers that includes definitions and arguments for and against of each option.
Energy Efficiency Policies
- Building Energy Codes and Appliance Standards
- Clean Energy Virtual Power Plant
- Government Buildings
- Loan Programs
- Low-Income Programs
- Product Labeling
- Rebates
- System Benefits Charges
- Tax Incentives
- Voluntary Rating Systems
Renewable Energy Policies
- Disclosure of Electric Fuel Mix
- Equipment Certification
- Government Purchase Programs
- Green Pricing Programs
- Industrial Recruitment Incentives
- Power Line Extension Policies
- Net Metering
- Renewable Energy Grants
- Renewable Portfolio Standard
- Solar and Wind Access
- System Benefits Charges
- Tax Incentives
Other Sources of Analysis
The following Web sites have news, reports, or position papers that reflect on state policies affecting renewable energy and energy efficiency technologies.
Alliance to Save Energy
The Alliance to Save Energy in Washington, D.C., advocates policies that advance energy-efficient technologies and practices. The alliance directly addresses several state policy issues with online reports and fact sheets.
Case Studies of State Support for Renewable Energy
LBNL also publishes specific case studies that document state experiences with policies that foster the development of renewable energy technologies. There are additional LBNL reports under a list of publications titled, "Energy Markets and Policy." http://eetd.lbl.gov/EA/EMP/emp-pubsall.html
Interstate Renewable Energy Council
The Interstate Renewable Energy Council is a nonprofit consortium of state and local governmental renewable energy officials. It focuses on education and outreach, and does some policy work around development interconnection standards for distributed energy systems with electric distribution companies and utilities.
National Association of Regulatory Utility Commissioners (NARUC)
NARUC publishes resolutions on its positions policy matters that commissioners deal with, including the electric power industry, and congressional testimony of member commissioners.
National Association of State Energy Officials
The National Association of State Energy Officials (NASEO) publishes news releases and testimony about the value of state energy programs. In addition, NASEO publishes primers, case studies, and reports about state experiences with energy policy options under the six continuing NASEO Committees.
Policy Guide on Smart Growth (APA)
The American Planning Association (APA) adopted this policy guide dealing with land use, transportation, fiscal efficiency, and environmental protection in 2002. All of these issues affect energy use. (See paragraph five [5] for the APA positions on energy policies.)
Regulatory Assistance Project
The Regulatory Assistance Project is a nonprofit organization headquartered in Montpelier, Vermont. Its staff comprises experienced utility regulators who provide research assistance to public officials on utility regulation.
Renewable Energy Policy Project
The Center for Renewable Energy and Sustainable Technology copublishes this series of policy reports with the Renewable Energy Policy Project in Washington, D.C. In addition to state policy, this site includes international projects and news about national legislation.
Smart Communities Network
EERE publishes this Web site targeting local decision makers that deals with many policy issues facing local communities that affect energy consumption. For example, these issues include green buildings, land-use planning, disaster planning, transportation, etc.