9 Hot Energy Issues
Apr 21 - State Legislatures
States are looking at a number of energy issues-some old, some new-this year.
1 Conserving Energy in State Buildings. It saves money while increasing the
reliability of the electricity system. New Haven, Conn., saved $500,000 in one
year by cutting energy use in municipal buildings. Arizona, Hawaii, Indiana,
Montana, New Mexico, Utah, Virginia and Washington are also requiring or
providing incentives for reducing energy use in state buildings.
The states that are looking at it: Connecticut, Illinois and New Jersey are
considering actions to either require or encourage energy efficiency in
buildings owned by the state.
2 Cleaning Up the Air. Smog, soot and acid rain are still a problem in a
number of states. Polluted air is a health hazard, as well as the culprit in
altering the earth's climate. North Carolina significantly reduced sulfur
dioxide (SO2) and nitrous oxide (NOx) emissions through its 2002 Clean
Smokestacks Act. New Hampshire and Massachusetts also have strong legislation.
The states that are looking at it: Virginia is considering cutting production
of sulfur dioxide by 88 percent, nitrogen oxide by 75 percent and mercury by 90
percent.
3 Reconsidering Electricity Deregulation. Competition seemed like a good idea
that would offer customers the option of choosing suppliers while cutting costs.
But when California first tried it- and encouraged utilities to get out of the
business of generating power-it resulted in rolling blackouts two years ago.
The states that are looking at it: California is considering bills to
encourage utilities to get back into the generating business and improve the way
utilities buy electricity for resale to their customers. Massachusetts is
considering legislation that would reconfigure-again-the way residential
customers buy power.
4 Making Appliances Efficient. States are going beyond the federal efficiency
rules to help consumers save energy-and money over the long run-by setting
standards of energy efficiency for a variety of products. Maryland's new
standards apply to an assortment of appliances and fixtures from ceiling fans to
traffic lights. Estimates are that the new law could save enough energy by 2010
to power some 75,000 households. Maine and New Hampshire also have appliance
standards.
States that are looking at it: Connecticut, Florida, Illinois, Massachusetts,
New Hampshire, New Jersey, New York, Pennsylvania and Rhode Island are looking
or have looked very recently at setting or modifying standards.
5 Turning to Renewable Energy. Wind, solar, biomass, geothermal and small
scale hydropower energy continue to hold promise. Fifteen states have a
renewable energy portfolio standard in place that requires power retailers to
include a specific amount of renewable energy in the mix of power they sell to
their customers. Pennsylvania, one of the first to adopt a standard, is
considering revamping its policy to incorporate some elements of effective
programs in other states.
States that are looking at it: In addition to Pennsylvania, others, including
Colorado, New Mexico, Maryland, Vermont and Washington are considering
legislation for a renewable energy portfolio standard this year. Idaho and Utah
are considering bills that would give tax incentives to certain renewable energy
technologies.
6 Looking Again at Wind. It has been the fastest growing energy technology
for the past several years, and in 2003, 13 states including California,
Colorado, Illinois, Minnesota, New Mexico, North Dakota, Oklahoma, Oregon,
Pennsylvania, South Dakota, Texas, Washington and Wyoming-created or expanded
large-scale wind farms. But wind energy is starting to face resistance from some
organizations that claim the turbines interfere with the landscape and can be
dangerous to birds, although the hazards to birds have for the most part been
limited to a single California wind site built in the 1980s.
States that are looking at it: Kansas and Vermont are considering temporary
bans on new wind-energy facilities.
7 Capping Gasoline Prices. Ask most people what they pay for electricity or
what they pay for natural gas, and they probably don't know. Ask them what
today's gasoline prices are, and they probably do. There are few energy issues
that attract more attention than gasoline-even though legislators probably have
less control over gasoline prices and supply than they do over any other energy
commodity. Gasoline prices have been taking a gradual uphill ride for the last
couple of years. It's not uncommon now to see prices close to $1.70 per gallon,
or in a few places much higher. Some state legislatures have begun to take a
more serious look at just what drives gasoline prices. In a few states,
legislators suspect that oil companies may be manipulating gasoline prices.
States that are looking at it: Hawaii, Arizona and Michigan are taking a hard
look at gasoline prices and considering price caps, monitoring programs or other
solutions.
8 Transmitting Energy Reliably. The federal energy bill proposes shifting
much of the responsibility for permitting electricity lines from states to the
federal government. States, however, aren't waiting to revise and improve their
own permitting processes. Wisconsin streamlined the review process for new power
plants, transmission lines and natural gas pipe-lines, shortened the timeline
for approval, and now requires using existing transmission paths, if possible.
States that are looking at it: Georgia, which hasn't had an official
permitting process, is considering a law to issue permits to build electricity
lines. Connecticut, Florida and Hawaii have recently looked or are now looking
at their transmission laws.
9 Weaning Cars from Gasoline. The United States is almost completely
dependent on petroleum to fuel cars, trucks and buses, and our reliance on
foreign oil is increasing. Developing alternative fuels may be the answer.
States that are looking at it: New Jersey is considering several bills
related to fuel cell powered vehicles (hydrogen), electric vehicles and other
alternative fuel vehicles. The state is looking at buying hydrogen-powered cars,
reducing the sales tax on electric vehicles and providing an income tax credit
to those who buy them. Michigan and Vermont are considering bills to provide tax
incentives for battery, hybrid or fuel-cell electric vehicles, while New York
may offer tax incentives for hybrid electrics. Virginia may exempt vehicles that
receive an EPA rating of at least 50 mpg from emission tests.
ECONOMIC RECOVERY WILL BRING NEW ISSUES
Energy drives the economy, affects the natural environment and links to
everything from transportation to growth management to health policy. As the
economy recovers, states will face new energy issues. The country's hunger for
gas, oil, new power plants and power lines will renew fervent debates about how
efficiently we use energy and whether we need to build new pipelines, power
lines or plants. The best new natural gas reserves are now offshore and are
likely to engender an entirely new debate about importing gas through liquefied
natural gas facilities or from offshore wells. The concerns that have existed in
the states for the past decade about regulation, diversity of energy supplies,
energy prices and the environment are likely to grow more intense.
Matthew H, Itrown, Christie Rewey and Troy Gagliano cover energy issues for
NCSL.
Copyright National Conference of State Legislatures Apr
2004