Many states are beginning to understand the benefits of diversifying their states energy portfolio. Though the US is the largest consumer of energy in the world, our per capita use has remained fairly static over the last decade according to EIA. However, over the same ten year period, worldwide per capita consumption of energy is increasing rapidly. The World Energy Council estimates that by the year 2050, the worldwide demand for energy is expected to double.
This type of scenario of increasing demand, together with environmental concerns regarding fossil fuels, has led states to look at diversification of sources. Over the last few years, twenty four states have enacted renewable energy portfolios for generation, and eight others have established goals. According to NCSL, in the 2009 legislative sessions, over 2,000 bills have been introduced on renewable energy. Eleven states have enacted legislation encouraging the use of renewables this year. Also this year, 16 states have been active in introducing and passing legislation on Renewable Energy Payments, also known as feed-in tariffs, which require utility companies to buy electricity from renewable energy sources, for a fixed period of time.
Clearly, state legislators play an integral and critical role in shaping a more balanced energy portfolio for the nation’s future.
Seven States and Territories Awarded $119 Million for State Energy Programs
Last week, the U.S. Department of Energy (DOE) announced that more than $119 million from the American Recovery and Reinvestment Act was awarded to the following states and territories: Alabama, American Samoa, District of Columbia, Illinois, Maryland, North Dakota, and Wyoming. This funding will be provided though the DOE’s State Energy Program (SEP) and distributed to states with energy plans that prioritize energy savings, create or save jobs, increase the use of renewable energy, and reduces carbon pollution.
Some of the activities that are eligible for State Energy Program funding include: energy audits, building retrofits, transportation programs to increase the use of alternative fuels and hybrid vehicles, and education and training efforts. With this funding, these states have now received a total of 50% of their Recovery Act State Energy Program funding. The remaining 50% will be distributed once states meet the reporting, oversight, and accountability milestones required in the Recovery Act. To date, all 50 states have received at least some State Energy Program funding from the American Recovery and Reinvestment Act. State legislators have the ability to appropriate this federal funding to specific energy projects within their state.
Highlights in State Legislation
• Colorado Women Legislators at the Forefront of Renewable Energy Policies
State Senator Gail Schwartz and State Representative Nancy Todd sponsored Senate Bill 171, which was recently enacted and provides $2.7 million dollars in the FY 2009-2010 budget for the Colorado Office of Economic Development to use in training potential employees, establishing training programs, and helping companies to train employees in Colorado’s New Energy Economy.
State Representative Judy Solano sponsored House Bill 1345, which was recently enacted and advises the Public Utilities Commission to collect information from owners and operators of electric transmission infrastructure and provide an interim report to the general assembly by November 1, 2009 and a final report no later than July 1, 2010. The report must include: the need for future legislative action, adequate planning for interstate coordination, and any other issues identified through public hearings and input from stakeholders and other government agencies.
• North Carolina Enacts Legislation to Create an Energy Improvement Loan Program
State Representatives Susan Fisher and Pricey Harrison sponsored House Bill 1389, which will allow a city to establish a loan program to provide home and business owners with the financial assistance they need to purchase and install “distributed generation renewable energy sources or energy efficiency improvements” to any residential, commercial, or other type of property. The terms of these loans must not be greater than 15 years, and the annual interest rate may not exceed 8% per year. This bill is currently awaiting the governor’s signature.
For a copy of this bill, click here.
• Vermont Sets Voluntary Renewable Energy Goals
Legislation was enacted in March 2008 that established a goal of 20% use of renewable energy sources for statewide electric sales by July 1, 2017. By December 31, 2011, the Public Service Board is required to provide a report on the state’s progress in meeting this goal to the House and Senate Committees on Natural Resources and Energy.
By December 31, 2013, the board is required to provide an additional report on the state’s progress in meeting this goal and provide recommendations on how to achieve the 20% goal, if necessary. This goal is separate from the 2025 goal of producing 25% of the energy consumed in the state through renewable energy sources. If the Public Service Board concludes that these voluntary goals are not met, these renewable energy portfolio standards would be come mandates.
For a copy of the bill enacted in March 2008, click here.
• Oregon Enacts Legislation on Renewable Energy Projects
The Oregon legislature recently enacted legislation that requires the Public Utility Commission to establish a pilot program for each electric company to demonstrate the use and effectiveness of volumetric incentive rates and payments for electricity delivered from solar energy systems. This pilot program must be established before April 1, 2010. The bill requires the Public Utility Commission to establish requirements for this program and also allows them to establish incentive rates to enable the development of the most effective solar energy systems. This bill was sponsored by the Committee on Sustainability and Economic Development.
To view a copy of this bill, click here.
Women In Government’s First Annual Energy Summit
In order to begin looking at the role of state legislators on these very dynamic issues, Women In Government will be hosting our First Annual Energy Summit September 10-12, in Denver, Colorado. Our meeting takes place over a three day period, beginning with a networking reception and welcome dinner followed by one and a half days of educational sessions. These sessions will begin with a discussion of oil and gas reserves and production issues, will take a look at the market potential for renewables, will consider how a state can create a balanced energy portfolio, and will include presentations by state legislators and regulators from across the country on current energy policy being enacted or promulgated. We plan to have approximately 40-50 women state legislators in attendance from across the country, allowing for an intimate environment geared toward developing energy strategies for new policy and legislation that policymakers can put into place upon their return to their constituents.
To register for the First Annual Energy Summit, click here.
