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State Best Practices

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States have found that a combination of clean energy policies, developed as a coordinated package, is the most effective approach to addressing clean energy. Typically, states have chosen policies to address clean energy areas like energy efficiency (EE), renewable energy (RE), and clean distributed generation (DG). This page presents a menu of 16 clean energy strategies including guidance, policy maps, and other supporting materials.

These 16 policies were originally detailed in the April 2006 publication Clean Energy-Environment Guide to Action: Policies, Best Practices, and Action Steps for States, which is available as a full report or individual chapters that correspond with each of the 16 best practices.

Developing a Clean Energy-Environment Action Plan

A clean energy environment action plan outlines a clear strategy to deliver clean, low-cost, and reliable energy to state residents through the use of energy efficiency, renewable energy, and clean distributed generation.

State Planning and Incentive Structures

States are achieving substantial energy cost savings, emission reductions, and economic benefits by implementing planning approaches and incentive structures that advance the use of clean energy.

Lead By Example

States lead by example by establishing programs that achieve substantial energy cost savings within their own operations, buildings, and fleets and demonstrate the feasibility and benefits of clean energy to the larger market.

State and Regional Energy Planning

Energy planning at the state or regional level is an effective means for ensuring that clean energy is considered and used as an energy resource to help states address their multiple energy and non-energy challenges.

Determining the Air Quality Benefits of Clean Energy

States estimate the emission reductions from their clean energy programs, incorporate them into air quality programs, and evaluate and report the emission reduction benefits of their clean energy programs and policies.

Funding and Incentives

States have developed a range of targeted funding and incentives strategies that are bringing clean energy to the marketplace, including loans, tax incentives, grants, buy-downs, performance contracting, set-asides for energy efficiency/renewable energy, and supplemental environmental projects (SEPs).

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Energy Efficiency Actions

Saving energy through energy efficiency improvements can cost less than generating, transmitting, and distributing energy from power plants and provides multiple economic and environmental benefits.

Energy Efficiency Portfolio Standards

Energy Efficiency Portfolio Standards require that energy providers meet a specific portion of their electricity demand through energy efficiency.

Public Benefit Funds for Energy Efficiency

Public Benefit Funds for energy efficiency are pools of resources used by states to invest in energy efficiency programs and projects and are typically created by levying a small charge on customers’ bills.

Building Codes for Energy Efficiency

Building energy codes require new and existing buildings undergoing major renovations to meet minimum energy efficiency requirements.

State Appliance Efficiency Standards

State appliance efficiency standards establish minimum energy efficiency levels for appliances and other energy-consuming products.

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Energy Supply Actions

States can achieve a number of environmental and economic benefits by encouraging the development of clean energy supply as part of a balanced energy portfolio.

Renewable Portfolio Standards

A renewable portfolio standard (RPS) requires electric utilities and other retail electric providers to supply a specified minimum percentage or absolute amount of customer load with eligible sources of renewable electricity.

Public Benefits Funds for Clean Energy Supply

Public benefits funds, also known as system benefits charges and clean energy funds, are typically created by levying a small fee or surcharge on electricity rates paid by customers.

Output-Based Environmental Regulations

Output-based environmental regulations relate emissions to the productive output of a process. The goal of output-based environmental regulations is to encourage the use of fuel conversion efficiency and renewable energy as air pollution control measures.

Interconnection Standards

Standard interconnection rules establish uniform processes and technical requirements that apply to utilities within the state.

Fostering Green Power Markets

Voluntary green power markets promote the development of renewable energy resources and the renewable energy industry by giving customers the opportunity to purchase clean energy. States can play a key role in fostering the development of green power markets that deliver low-cost, environmentally beneficial renewable energy resources.

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Utility Planning and Incentive Structures

Public utility commission (PUC) long-term planning policies and utility incentive and rate structures play an important role in determining the attractiveness of investments in energy efficiency and clean distributed generation (DG).

Portfolio Management Strategies

Portfolio management refers to energy resource planning that incorporates a variety of energy resources, including supply-side (e.g., traditional and renewable energy sources) and demand-side (e.g., energy efficiency) options.

Utility Incentives for Demand Side Management

Financial incentive structures for utilities can help align company profit goals with the delivery of cost-effective demand-side resources such as energy efficiency and clean DG.

Removing Utility Rate Barriers to Distributed Generation

The state public utility commission, in setting appropriately designed electric and natural gas rates, can support clean distributed generation projects and avoid unnecessary barriers, while also providing appropriate cost recovery for utility services on which consumers depend.

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