The Advanced Clean Cars II Controversy: Where are States Adopting or Blocking California's Zero-Emission Vehicle Rules?

California has long established itself as a national leader when it comes to environmental policy and regulation, and with the adoption of the Advanced Clean Cars II program, the state continues that legacy. While lawmakers in many states work to adopt or emulate similar emissions reductions programs, others are attempting to prohibit the adoption of these regulations altogether.

What are States Doing to Make Virtual Power Plants a Reality?

Virtual Power Plants (VPPs) are attracting a lot of attention at the moment. Our upcoming 50 States of Grid Modernization Q1 2024 report documents numerous policy and program actions taken by several states, and our very own Autumn Proudlove moderated a session on VPPs at the 2024 North Carolina State Energy Conference. Additionally, the U.S. Department of Energy published an extensive report on VPPs last year, and even mainstream media is publishing articles on their potential. But what exactly are VPPs, and what are states doing to enable their development? 

(Inter)Connecting the Dots: Recent Progress in Interconnection Reform

Interconnection is a hot topic in the electric power sector. Indeed, new generator connections to the grid, the duration of the process, and the costs are long-running concerns for several parties. Federal and state regulators, independent power producers (IPPs), state legislatures, and utilities consider what reforms might be needed and how to implement them. Each of these entities present different, sometimes conflicting, perspectives on the needed changes to the interconnection process and the overall goal of reforms. Over the last three years, the DSIRE Insight team has noted an uptick in interconnection-related actions.

Green Tariffs and Additionality: Do Voluntary Renewable Programs Accelerate the Energy Transition?

The concept of additionality is an important consideration for purchases of renewable energy certificates (RECs) by large corporate customers. Corporate purchases of unbundled RECs have been criticized for not actually increasing the amount of renewable energy available, particularly when the RECS are sourced from areas without renewable portfolio standards (RPS) and large surpluses of renewable energy. Many corporate purchasers have tightened their standards for renewable energy purchases, seeking contracts with specific renewable energy projects or seeking out utility programs that offer dedicated renewable energy capacity.

Top State Clean Energy Policy Trends of 2023

With the end of 2023 upon us, our team likes to take the opportunity to look back on all of the policy and regulatory activity we’ve tracked through the year and think about some of the overarching trends and themes that we’ve seen. Across the areas of distributed solar, grid modernization, transportation electrification, and power decarbonization, our team tracked more than 2,500 actions taken by states and utilities this year, including introduced legislation, active regulatory proceedings, executive orders, and utility initiatives. From enabling virtual power plants and expanding clean energy targets to supporting building electrification and studying market reform, states and utilities took significant steps to advance clean energy in 2023.

Workshop Review: Growing the On-Site Solar Generation Market in North Carolina

Earlier this month, the NC Sustainable Energy Association held its annual Making Energy Work conference. The DSIRE Team, as part of its work at the NC Clean Energy Technology Center (Center or NCCETC), hosted a pre-conference workshop on Growing the On-Site Solar Generation Market in North Carolina. The workshop covered the challenges and opportunities associated with the on-site solar market in the state. The workshop was organized and framed by the Center, with the Center also leading discussions to gather input from interested distributed solar stakeholders. Participants came from solar installers, state and local government, non-profit and advocacy groups, financing entities, and end-use customers.

The State of Solar Decommissioning Policy: Then and Now

Generally, decommissioning requires the removal of systems and the restoration of land or infrastructure to its original condition or for a new use. When referring to a photovoltaic system, decommissioning usually includes removing the PV array, removing the balance-of-system (other parts of the system, excluding modules, such as wiring, inverters, mounting system, etc.), and restoring the land. While it might not seem like the most exciting topic, legislative interest in solar decommissioning has experienced a major uptick in recent years, and for good reason. While solar panels have a lifespan of 25-30 years, it is estimated that by 2030, end-of-life modules in the United States could total 1 million metric tons (Mt), and 10 million Mt by 2050. As the solar market continues to grow, so does the significance of policies to ensure proper decommissioning of these sites.

Is Clean Heat the Future of Consumer Choice?

With fluctuating natural gas prices, improvements in clean heat technology, and a plethora of financial incentives for electrification, consumers have been given more reasons than ever to turn off their gas in favor of electrifying their heating. Though there are a number of state legislative bodies restricting local action against fossil fuel heating, an upward trend in heat pump adoption and even a gradual embrace of clean heat in cold climates like New England beg the question: is clean heat the future of consumer choice?

Do RPS Policies Still Matter?

Our Q2 2023 50 States of Power Decarbonization Report found that 31 states took action during the quarter related to Clean Energy Standards (CES) or Renewable Portfolio Standards (RPS), including the consideration of at least 50 bills. RPS policies require utilities in a given state to have a certain percentage of their electricity sales come specifically from renewable energy sources by a certain date, while CES policies often build upon and are inclusive of RPS policies. CES policies generally require utilities to transition to carbon-free resources, including nuclear larger hydro systems, and other carbon-neutral technologies. Long used as the centerpiece of many states’ renewable energy policy framework, recent years have seen a slightly diminished focus on pure RPS policies. States are increasingly considering further refinement of their electricity markets through a more holistic lens that includes CES and net-zero carbon policies. In other cases, renewable energy development has far outpaced the requirements established by a state’s RPS policy, leading some to wonder, do RPS policies still matter?

Decarbonization Pathways: Comparing Minnesota and North Carolina

This month, we look at two states with regulated electric utilities - Minnesota and North Carolina - and their decarbonization progress over the last decade and a half. Before the term "decarbonization" became commonplace in the electricity sector, many states created renewable energy and/or energy efficiency targets. Both of these states created renewable energy goals for their electricity sector in 2007, prompting utilities to alter their electricity generation and procurement strategies to meet statutory renewable energy goals. 

Permitting Reform in the 2023 Debt Ceiling Bill

On June 3rd, Congress enacted the Fiscal Responsibility Act of 2023 to raise the federal government’s debt ceiling. As part of a section focused on growing the economy, the bill included significant changes to the National Environmental Policy Act, or NEPA. NEPA was enacted in 1970, establishing the President’s Council on Environmental Quality and putting guidelines in place requiring federal agencies to review the environmental impact of their proposed actions. These environmental reviews only come into play when a project falls on federal land, or when a project could affect pollutants covered by the federal Clean Air Act.

Power Decarbonization Across the U.S.: Where We Are, Where We Want to Go, and Where We Are Heading

Earlier this month, our team released its very first 50 States of Power Decarbonization quarterly report, tracking state and utility actions related to clean energy and emission reduction targets, planning and procurement rules, utility integrated resource plans, and more during Q1 2023. This new publication is intended to help energy industry professionals keep up with the fast-paced activity happening in the electric power decarbonization space, while connecting the threads of state clean energy policies and utility resource planning and procurement.

The Grid's Crypto-nite?

What is the first thing you think of when you see the word cryptocurrency? For some, it's the economic opportunity, for others, it’s flat out confusion. Maybe, like me, your mind goes straight to Dogecoin, the crypto-meme that swept through social media a few years back. Regardless of what does come to mind, chances are it’s not energy usage, but maybe it should be.

To Burn or Not to Burn: States Consider Blocking Gas Bans

The legislative year is well underway, and many states are essentially looking at one of two very different pathways: 1) prohibiting bans on fossil fuel-building infrastructure, or 2) banning fossil fuel-building infrastructure. Though some still have bills in limbo, others have already enacted laws this session that are primarily in support of the former and not the latter.

Nuclear’s Next Life

In the United States, civilian nuclear power has been a part of the energy mix since 1957. Since then, nuclear energy has gone through peaks and valleys, from economic slowdowns to regulatory shifts; and recently new power plant additions have been scarce. Nevertheless, through the fresh wave of incentives, pursuits of advanced reactors, and other nuclear technologies, nuclear’s future is being given a signal of support.

LMI Roundup: A Selection of New LMI Energy Policies and Programs Adopted in 2022

With the start of the new year comes a review of the past year. No one missed the historic passing of the Inflation Reduction Act, which included almost $400 billion dedicated to energy and climate change action. The programs and incentives in the Act were varied and wide-reaching, but this wasn’t the only major policy development to come about last year. States took action on everything you could possibly think of, and probably a few things you can’t! As time goes on, more and more governments are trying to make their policies increasingly inclusive, particularly by implementing rules to benefit low-to-moderate income, or LMI, residents. We’ll be taking a look through state-level actions throughout 2022 – the big and the small – related to LMI rules across various categories.

NEVI NEVI Land

By: Brian Lips, Sr. Policy Project Manager

In September 2022, the Federal Highway Administration approved the National Electric Vehicle Infrastructure (NEVI) Program plans submitted by all 50 states plus DC and Puerto Rico. The plans detail how each jurisdiction will use their share of $5 billion in federal funding to deploy EV chargers along interstate highways over the next five years. Now that the plans are approved, states are moving forward with implementation.

State NEVI Program Funding (FY 2022 - 2026)

While the Infrastructure Investment and Jobs Act established many parameters for the resulting NEVI plans, it still left many decisions in the hands of the states. The state plans address these decision points, including the exact site locations, the prioritization for project sites, and the contractual mechanism the state will use to find a contractor. 

Nearly every state anticipates issuing one or more requests for proposals (RFPs) to find third parties to install, own, operate, and maintain the charging stations. While some NEVI plans have a detailed timeline for when the state anticipates releasing the RFPs and awarding contracts, 19 states do not provide a clear timeframe for when they will release an RFP. 

While the timelines provided by states in their NEVI plans are subject to change, many of them show a fairly aggressive schedule. Eight states (CO, KS, MI, OH, OR, VT, VA, and TX) plan to release an RFP by the end of 2022, though Ohio is the only one of these states to have done so as of mid-November. An additional eight states (CA, CT, LA, MT, NC, TN, WV, and WY) plus DC expect to release an RFP by the end of the Q1 2023. Hawaii and Nevada, meanwhile, already have contracts in place that pre-date their NEVI plans. These states plan to amend their existing contracts to incorporate the additional NEVI requirements, and may issue new RFPs in the future if needed.    

State

Timing for First NEVI RFP

Alabama

First half 2023

Alaska

TBD

Arizona

Upgrades: Spring 2023
New Stations: Fall 2023

Arkansas

Second Half 2023

California

Q1 2023

Colorado

November 2022

Connecticut

Q1 2023

Delaware

TBD

District of Columbia

Q1 2023

Florida

TBD

Georgia

TBD

Hawaii

Existing contracts will be amended to include NEVI work. Additional solicitations may be considered in the future

Idaho

Spring 2023

Illinois

TBD

Indiana

October 2023 - June 2024

Iowa

Late Winter 2023

Kansas

Dec-22

Kentucky

TBD

Louisiana

Q1 2023

Maine

TBD

Maryland

State Fiscal Year 2023

Massachusetts

TBD

Michigan

Q4 2022

Minnesota

Early 2023

Mississippi

Fiscal Year 2023

Missouri

2024

Montana

Fall / Winter 2022

Nebraska

TBD

Nevada

Existing contracts will be amended to include NEVI work. Additional solicitations may be considered in the future

New Hampshire

Fiscal Year 2023

New Jersey

TBD

New Mexico

TBD

New York

TBD

North Carolina

Winter 2022 / 2023

North Dakota

TBD

Ohio

October 2022, Proposals due 12/21/2022

Oklahoma

TBD

Oregon

November of December 2022, may be delayed to early 2023

Pennsylvania

Late 2022 / Early 2023

Puerto Rico

Fiscal Year 2023

Rhode Island

TBD

South Carolina

TBD

South Dakota

August 2023

Tennessee

March 2023

Texas

Fall 2022

Utah

TBD

Vermont

Fall 2022

Virginia

Q4 2022

Washington

TBD

West Virginia

Winter 2022 / 2023

Wisconsin

TBD

Wyoming

Fall / Winter 2022

While the build out of a fast charging network will form a vital backbone for transportation electrification across the United States, it is far from the only effort being undertaken by the states. States and utilities across the country continually roll out new approaches to further support the transition to electric vehicles. Check out DSIRE Insight’s 50 States of Electric Vehicles report series and Electric Vehicle Single-Tech Subscription offerings to stay on top of all of these developments.

Community Solar: Improving Economic Opportunities

By: Vincent Potter, Policy Analyst

What is Community Solar?

The U.S. Department of Energy (DOE) defines community solar as any solar project or purchasing program, within a geographic area, in which the benefits of a solar project flow to multiple customers, such as individuals, businesses, non-profits, and other groups.

Image: Co-op Power

Community solar programs can expand access to renewable energy for customers that cannot or choose not to install resources themselves. Participation in community solar programs does not require that customers own property, have ideal conditions on a site that they may own, or pay construction and siting costs for renewable generation installation. If offered in their area, customers may simply choose to subscribe to a desired amount of renewable electricity, pay a subscription fee, and receive bill credits from the energy generated from their portion of the community solar array. 

As of September 2022, 21 states have rules that require utilities or allow other entities to develop community solar programs.

Community solar programs can differ greatly from state to state, or utility to utility. Some programs are open to third-party development, others must be run by utilities. Subscription size limits, purchase options, and bill credit rates can all vary. Many programs have provisions for lower-income households. 

Rules around community solar can be related to net metering policies, virtual net metering policies, or as entirely separate entities. In states without formal community solar program structures, utilities may choose to offer these programs. As of September 2022, 22 states and the District of Columbia had pending actions relating to community solar in their legislatures or before their utility regulators. 

Benefits from Community Solar

Subscribers to community solar programs receive the renewable electricity that they desire. This can be a benefit in and of itself. In some locations, community solar is viewed as a "premium product" and therefore, subscribers are not expected to save money on their electric bills overall. 

Policymakers and utilities throughout the United States are wary of "cross-subsidization" and tend to design programs such that only the beneficiaries pay. In North Carolina, community solar programs must not be supported by ratepayers that do not receive the benefits of the solar electricity generated. Ideally, subscribers would receive more tangible benefits, such as annual bill savings like net metered customers do. Community solar programs can be designed with participation or savings targets for lower-income customers. Lower-income households tend to pay proportionally more of their income for energy than wealthier households and community solar, which provides a bill savings, can offer relief. 

In areas with regional transmission authorities, community solar operators can gain additional value from market participation. This participation in capacity markets or other ancillary services can reduce the subscription costs needed for projects to stay afloat, meaning that customers can potentially benefit as well. In regulated markets, ancillary services cannot be valued by open markets. If a community solar installation has a host that can benefit from demand reductions, those savings can be passed along to subscribers at the host's discretion. 

Program Designs

Community solar programs throughout the United States use a range of different designs. Some programs sell the output of a panel for the life of the facility with a high up-front cost, similar to buying a solar panel and having it installed on the customer's property. Monthly and annual subscriptions are common options, which allow a smaller commitment from the customer but provide some additional uncertainty for the host. An additional common fee is an origination charge that would be imposed for the creation of new subscriptions. 

Most community solar programs use an opt-in subscription design. This requires customers to choose to participate. The facility or subscription administrator would educate and/or advertise the services and benefits of community solar electricity under this program model. When community solar programs are "premium offerings" and provide subscribers with net costs, this program model ensures that participants make informed choices before getting a more expensive product. 

Opt-out program design enrolls participants automatically. This design requires the subscriber to see a net savings or it creates a potentially unwanted additional charge on their energy bills. In New York and a few other states, this program design is used to ensure that lower-income customers can receive benefits from participation in community solar and similar programs without the necessity for educational and advertising campaigns by subscription administrators. This can reduce barriers to renewable electricity access, especially for lower-income households.

Image: ISO/RTO Council

Improving Benefits in the Southeast

Most of the Southeastern United States does not have access to a regional transmission organization that would allow easy market participation for community solar installations. Community solar facilities can provide additional benefits based on its host's electric service rates, especially if paired with energy storage. Cooperative and municipal utilities can experience significant savings from the coincident peak fees on their wholesale contracts. If community solar and storage systems are located strategically, they can also defer distribution system upgrades needed to support load growth on highly utilized infrastructure.

Research in North Carolina

Research conducted for the American Rescue Plan Act in 2022 analyzed the rate structures and wholesale contracts of several cooperative and municipal utilities in North Carolina. The research compared solar scenarios, battery sizes, and storage durations to identify general sizing and deployment strategies. The largest benefit found was in coincident peak reductions from solar and storage. None of the utilities analyzed had distribution infrastructure with forecasted load limitations that would create benefits from distribution deferral. 

Municipal and cooperative electric utilities are non-profit entities owned by their customers. Benefits accrued through coincident peak or demand reductions can be shared between the utility and customers. Program design can set subscription fees and credit rates such that customers receive a net savings on an annual basis while allowing the utility to support program administration costs and operations & maintenance expenses. Net annual bill savings can make community solar more accessible and appealing to lower-income customers. However, additional barriers may hinder participation.

There are informational and administrative barriers for community solar facilities to make customers aware and acquire subscribers. Some amount of annual attrition should be expected as customers relocate or their preferences change. Opt-out program design, seen in New York and in a few other states, can significantly reduce these barriers. If the program's intent is to benefit lower-income households and community solar programs provide a net benefit for participation, then an opt-out program design, where lower-income subscribers are automatically enrolled as capacity becomes available, can fulfill that mission. 

Conclusion

Community solar programs can provide tangible benefits not only to subscribers, but also host facilities and host utilities through demand charge reductions. When paired with energy storage, or optimally located within utility distribution infrastructure, the facilities can provide additional savings for their hosts. Program design can incorporate these host benefits and distribute a portion of them to subscribers to increase community solar participation benefits. To make benefit distribution more streamlined, an opt-out program model can be used to automatically enroll participants, reducing the administrative burden of subscriber acquisition. Opt-out programs require community solar program participation to result in subscriber savings to ensure that customers are not being drawn into a program which actually increases their bills, a particularly difficult prospect for lower-income households. 

Keep up with legislative and regulatory changes related to data access with the 50 States of Solar report or DSIRE Insight’s Single-Tech Solar Subscription.