States are leading the charge in building the clean energy economy. They are doing this by adopting clean electricity standards (CES) that focus on various clean technologies. This shift aims to cut emissions, enhance air quality, and meet the demand for reliable energy. Each state can craft a CES that suits its needs, making it easier to embrace cleaner energy sources.
A CES supports ongoing state and federal clean energy efforts. It sets tough requirements for electric power providers, pushing them to deliver clean energy while boosting the economy and protecting the environment. With backing from federal funds like those in the Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA), states have more opportunities to push for clean electricity standards across the country.
CATF offers detailed guides to help states understand the benefits of CES. They have a report detailing how CES works and an interactive map showing how each state has tailored its CES to its unique circumstances.
What is a CES and what benefits can it deliver?
Traditionally, states promoted renewable energy through renewable portfolio standards (RPS), which only focused on renewables like wind and solar. Now, states are expanding their approach with CES that accommodates various clean technologies, including nuclear and clean hydrogen. This opens doors for more investments in clean energy while reducing air pollution and generating jobs. Around twelve states are already using CES to cut emissions and maintain affordable electricity.
Designing a CES can vary, but the main idea is simple: increase the share of electricity that comes from sources with little to no carbon emissions. Key features of an effective CES include: 1) a clear requirement for transitioning to clean electricity; 2) inclusion of various clean technologies; and 3) setting ambitious goals for clean electricity or lower carbon emissions.
With a CES, states can meet their clean energy targets based on their unique resources and market conditions.
By adopting a CES, states can enjoy several advantages:
- Certainty for Investments: CESs help guide long-term planning, encouraging more investments in clean energy.
- Consumer Savings: They can lower costs for consumers by reducing reliance on volatile fossil fuel prices and attracting federal funding.
- Economic Growth: CESs attract investments in clean projects, leading to job creation and federal funding.
- Health and Environmental Improvements: Clean standards can significantly enhance air quality and health, especially in vulnerable communities.
- Access to Federal Funding: CESs position states to tap into federal funding, easing the financial burden of clean energy initiatives.
Key policy design considerations for a CES
While each state’s CES will have its unique elements, lawmakers can follow some common guidelines in their design:
- Form of the Standard: CESs can be based on clean electricity amounts or percentages of greenhouse gas reductions.
- Eligible Clean Electricity Sources: Including all clean sources ensures reliability and affordability while allowing for future tech advances.
- Stringency: Policymakers should balance strictness with potential tech innovations to stay effective.
- Point of Regulation: The compliance responsibility must be clear, often resting with utilities in integrated states.
- Compliance: Typically, state agencies are tasked with ensuring adherence to the CES.
- Tracking: A strong tracking system is crucial for monitoring compliance, though not all states currently have one.
- Requirements for In-State Generation: States must consider local benefits versus a interconnected grid’s needs when deciding on in-state generation preferences.
- Flexibility for Different Types of Providers: Adjusting standards for various power providers can encourage broader adoption and better leverage federal incentives.
- Cost Containment and Compliance Flexibility: A technology-neutral CES provides multiple compliance pathways while offering safeguards against unintended effects.
- Aligned Renewable Energy Standards: A CES can complement existing or new RPS to further a state’s clean energy goals.
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