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Clean Energy Federalism
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CPP envisioned states having a role
Even without CPP, states are innovating and will continue to do so
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Examples Renewable Portfolio Standards (RPSs) Customer Rate Design
Vehicle Efficiency Standards
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Renewable Portfolio Standard Policies www.dsireusa.org / February 2017
WA: 15% x 2020* OR: 50%x 2040* (large utilities) CA: 50% x 2030 MT: 15% x 2015 NV: 25% x 2025* UT: 20% x 2025*† AZ: 15% x 2025* ND: 10% x 2015 NM: 20%x 2020 (IOUs) HI: 100% x 2045 CO: 30% by 2020 (IOUs) *† OK: 15% x 2015 MN:26.5% x 2025 (IOUs) 31.5% x 2020 (Xcel) MI: 15% x 2021*† WI: 10% 2015 MO:15% x 2021 IA: 105 MW IN: 10% x 2025† IL: 25% x 2026 OH: 12.5% x 2026 NC: 12.5% x 2021 (IOUs) VA: 15% x 2025† KS: 20% x 2020 ME: 40% x 2017 NH: 24.8 x 2025 VT: 75% x 2032 MA: 15% x 2020(new resources) 6.03% x 2016 (existing resources) SD: 10% x 2015 NY:50% x 2030 RI: 38.5% x 2035 CT: 27% x 2020 NJ: 20.38% RE x 2020 + 4.1% solar by 2027 PA: 18% x 2021† DC DE: 25% x 2026* MD: 25% x 2020 DC: 50% x 2032 SC: 2% 2021 TX: 5,880 MW x 2015* 29 States + Washington DC + 3 territories have a Renewable Portfolio Standard (8 states and 1 territories have renewable portfolio goals) U.S. Territories NMI: 20% x 2016 Guam: 25% x 2035 PR: 20% x 2035 USVI: 30% x 2025 * Renewable portfolio standard Extra credit for solar or customer-sited renewables † Renewable portfolio goal Includes non-renewable alternative resources
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Common RPS Features Target based on annual % of energy sales
Typically includes solar, wind, geothermal, biomass – but not nuclear or hydro Solar carve-outs RECs - multipliers - in region requirements
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Energy Efficiency Resource Standards (and Goals)
/ October 2016 DC 20 States Have Mandatory Statewide Energy Efficiency Resource Standards (8 States Have Goals) U.S. Territories PR Guam USVI NMI States with an Energy Efficiency Resource Standard States with an Energy Efficiency Resource Goal No State Standard or Goal
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Customer Rate Design Time-of-day pricing Smart grids Net Metering
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Net Metering 41 States + DC,
/ July 2016 DC 41 States + DC, AS, USVI, & PR have mandatory net metering rules KEY U.S. Territories: State-developed mandatory rules for certain utilities (41 states + DC+ 3 territories) AS PR No statewide mandatory rules, but some utilities allow net metering (2 states) VI GU Statewide distributed generation compensation rules other than net metering (4 states + 1 territory)
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State Vehicle Standards
Low Carbon Fuel Standards (California Waiver) Zero Emissions Vehicle Standards/Incentives
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Benefits Laboratories of democracy Experimentation
Flexibile - ”adaptive” Competition for Clean Energy Jobs
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Problems? Fragmented, not consistent
Subject to repeal (“maladative” federalism) Leakage
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Legal Barriers Dormant Commerce Clause Federal Preemption
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Dormant Commerce Clause
Corey (9th Circuit) Epel (10th Circuit) – Gorsuch opinion Heydinger (8th Cir)
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Federal Preemption Hughes (SCOTUS 2016) – Federal Power Act
See Murphy concurrence in Heydinger E.g., challenges to New York “zero emissions credits” Clean Air Act EPA SIPs? - Vehicle standards and the California CAA waiver
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