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Executive Summary

States are leading the way toward a New Energy Future for America that is less reliant on fossil fuels and is healthier for the environment and America’s economy. Over the past decade, states have enacted a series of important and in some cases visionary policies designed to encourage more efficient use of energy, increase the use of clean renewable energy, and reduce the environmental impact of energy use in our economy.

This report highlights state action in five areas of clean energy policy and the benefits of those actions and gives special recognition to a number of states that are providing clean energy leadership for America.

State clean energy policies are delivering important benefits for America’s environment and our economy.
 
•    Renewable electricity standards, which require that states meet certain targets for the use of renewably generated electricity, have been enacted in 25 states. According to the Union of Concerned Scientists, those policies will reduce emissions of carbon dioxide – the leading contributor to global warming – by more than 118 million metric tons per year by 2020 (about 2 percent of U.S. carbon dioxide emissions in 2006). The standards will also result in at least 55,000 megawatts of renewable generating capacity by 2020 (a x-fold increase over current levels) and will likely save consumers money and create new green energy jobs.

•    The Clean Cars Program, which sets tailpipe emission standards for global warming pollutant emissions from automobiles and light trucks, has been adopted by 12 states and is pending in two others. The program will reduce global warming emissions from cars by approximately 74 million metric tons per year by 2020 and will reduce gasoline consumption by up to 8.3 billion gallons per year.

•    Energy efficiency programs and standards have been adopted by many states to encourage the installation of cost-effective energy efficiency improvements in homes, businesses, and industry. If every state were to achieve the energy savings already achieved by the most effective such programs, the United States could reduce electricity consumption by about [8 percent] in 2020, averting as much as 265 million metric tons of carbon dioxide pollution.

•    Appliance efficiency standards set minimum efficiency thresholds for products used in homes and businesses. The adoption of state efficiency standards in the early 2000s led to congressional adoption of similar standards in 2005 that will save 76 million megawatt-hours of electricity per year by 2020 and avert 58 million metric tons of carbon dioxide emissions. Additional state standards will save another 8 million megawatt-hours of electricity and avert 6 million additional metric tons of carbon dioxide emissions.

•    Building energy codes require residential and commercial structures to meet minimum standards for energy efficiency. Sixteen states have adopted the most up-to-date residential energy code, while 19 states have adopted up-to-date commercial codes. According to the Alliance to Save Energy, if every state adopted current energy codes for residential and commercial structures, the United States could reduce carbon dioxide emissions by 50 million metric tons per year and reduce consumers’ energy bills by $7 billion per year by 2020.

At least 34 states have adopted meaningful clean energy policies in one of the five categories addressed in this report. Of those states:

•    Seven states – California, Connecticut, New Jersey, New York, Oregon, Rhode Island and Washington – receive recognition as “gold star” clean energy states for adopting strong policies in three to four of these areas and meaningful policies in one to two others.

•    Six states – Massachusetts, Maryland, Maine, Nevada, Pennsylvania and Vermont – are “silver star” clean energy states for adopting strong policies in at least two areas and meaningful policies in one to two others.

•    Eight states – Arizona, Colorado, Delaware, Illinois, Minnesota, New Hampshire, New Mexico and Wisconsin – are recognized as “rising star” clean energy states for meaningful recent actions to promote energy efficiency and the use of renewable sources of energy.

All states, as well as the federal government, can do more to lead America to a New Energy Future.

Gold star states should continue to innovate by looking for new opportunities to strengthen building codes and appliance standards, promote renewable energy, and reduce energy use and global warming emissions from cars. Gold states must also work to ensure that their ambitious goals for clean energy development are actually met.

Silver star and rising star states should adopt the full complement of clean energy policies described in this report and strengthen the policies they already have on the books.

Other states should follow the example of the clean energy leaders highlighted in this report and adopt strong clean energy policies in each of these five areas.

The federal government should adopt nationwide clean energy policies that build off of the leadership and example set by the states. Those policies should include:

•    Increasing federal fuel economy standards to 40 miles per gallon by 2018, achieving energy savings and global warming pollution reductions surpassing those of the Clean Cars Program.

•    Adopting a federal renewable electricity standard that requires 25 percent of the nation’s electricity to come from renewable sources by 2025.

•    Expanding and extending federal tax credits for energy efficient vehicles, buildings and appliances.

•    Adopting new federal appliance efficiency standards and improve the process for adopting standards to maximize cost-effective energy savings.

•    Encouraging and supporting the development of stronger residential and commercial building energy codes.

•    Increasing federal investment in clean energy research and development.