The Biden administration has been resolute in its efforts to integrate environmental justice and equity into agency operations. From launching the Environmental Justice Scorecard to allocating billions of dollars in funding for clean energy and climate projects, the administration has made notable progress.
States across the U.S. are increasingly embracing energy storage solutions to complement their clean energy initiatives. The growing share of renewables continues to drive the expansion of battery storage technologies, which can help integrate intermittent resources into the grid. U.S. battery storage capacity is projected to double this year, with planned additions of 14.3 gigawatts (GW), according to the U.S. Energy Information Administration.
Recognizing the crucial role of energy efficiency in enabling an affordable energy transition, the U.S. Department of Energy (DOE) has unveiled the first federal blueprint for decarbonizing the buildings sector including goals to reduce on-site energy use intensity in buildings. Additionally, multiple states have pledged to accelerate the shift to zero-emission residential buildings, highlighting the growing importance of energy-efficient solutions in achieving broader energy and climate objectives.
There is a growing focus on enhancing oversight, transparency, and stakeholder engagement in the integrated resource planning process for electric utilities across various states. The pursuit for a low-carbon future is driving the need for innovative policy initiatives to maximize renewable energy utilization and maintain grid reliability. Integrated resource plans (IRPs) that utilities file with state commissions identify the optimal mix of resources required to serve customers over a long-term planning horizon.
Recent policy developments in the U.S. nuclear power industry indicate a growing recognition of the carbon-free nature of nuclear energy to support the energy transition. With Congress considering nuclear energy reforms, the Nuclear Regulatory Commission (NRC) proposing rules for advanced reactor licensing, and state legislatures exploring the benefits of small modular technologies, the landscape of nuclear energy technologies is poised for change.
As carbon pricing gains traction as a policy tool to combat climate change and achieve net-zero emissions, regulatory attention on U.S. carbon markets has been on the rise. Recent developments in state-level emissions trading programs have yielded mixed results, with Washington's latest allowance auction seeing a significant price drop, while California, Quebec, and the Regional Greenhouse Gas Initiative (RGGI) cleared at record high prices.
A growing number of states across the U.S. are considering clean fuel programs to limit the carbon intensity of transportation fuels and to incentivize the production of low-carbon and renewable alternatives.
Multiple states in the U.S. have initiated long-term proceedings to examine the operations of natural gas utilities, aiming to incorporate the implications of electrification goals and emissions reduction requirements into the planning processes of distribution utilities.
The net metering policy landscape continues to change as customer-sited generation expands. More states are shifting from traditional net metering to implement new rate structures. Over the last year, California, Arkansas, and North Carolina have adopted revisions to the policy. Net energy metering (NEM), which credits customer generators for grid-exported power, has been a key component of the policy framework to spur investment in customer-sited renewable energy facilities, including solar and energy storage systems.
The Biden administration has made significant strides in climate change action, particularly through the enactment of the Inflation Reduction Act of 2022 (IRA), which represents the single largest investment in climate and energy in the U.S. Actions to further the administration’s climate agenda include proposals to limit emissions from power plants and vehicles, finalizing methane emission rules, and advancing environmental justice.
Federal actions are paving the way to build out new transmission capacity at the pace required to accommodate shifts in power generation and achieve decarbonization goals while enhancing grid reliability.
For years now, lawmakers and regulators across the U.S. have intensified their scrutiny of the competitive electricity market for residential consumers in order to address deceptive sales tactics and complex contract terms that burden consumers with high costs.