2004 States News Archives

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On December 16, 2004, the California Public Utilities Commission (CPUC) approved a requirement that a “carbon adder” be included in resource plans for three of California’s utilities, Pacific Gas and Electric Company, Southern California Edison, and San Diego Gas and Electric Company. The carbon adder explicitly takes into account the social cost of carbon emissions from electricity generation facilities when comparing prices of fossil fuel and renewable generation, as well as demand-side management investments. The carbon adder will be used for utility planning purposes only, and will not be assessed to consumers. Taking the cost of carbon into account will mean that a power source is considered more cost effective if it avoids a ton of CO2 emissions for $8 to $25. The CPUC based this range of costs on a number of studies, including the Idaho Power Company’s 2004 resource planning process, which assessed a carbon adder of $12.30 per ton of CO­2.

Press Release [7]
Read the Decision (pdf) [8]

Pennsylvania Adopts Alternative Energy Portfolio Standard

On December 16, 2004, Governor Edward Rendell signed into law Pennsylvania’s Alternative Energy Portfolio Standard. The standard requires that qualified power sources provide 18% of Pennsylvania’s electricity by 2020. There are two tiers of qualified sources that electric generation and distribution companies may use to meet the standard.  Each tier has its own percentage requirement. Tier 1 sources, which must make up 8% of the portfolio, include wind, solar, coalmine methane, small hydropower, geothermal, and biomass. The Tier 1 standard also specifies that solar sources provide 0.5% of generation by 2020, the most solar power mandated by any state. Tier 2 sources make up the remaining 10% of the portfolio, and include waste coal, demand side management, large hydropower, municipal solid waste, and coal integrated gasification combined cycle (IGCC). The Pennsylvania Public Utilities Commission is charged with developing a system of tradeable clean energy credits to facilitate utility compliance with the standard. Pennsylvania is the 18th U.S. state with a mandate to produce some portion of its electricity from renewable sources. 

See a Map of States with Renewable Portfolio Standards [9]
Read the Legislation [10]

Maine Releases Climate Action Plan

On December 1, 2004, Maine released its Climate Action Plan to reduce the state’s greenhouse gas emissions. The plan, developed by the state’s Department of Environmental Protection, is a set of 54 actions that may enable Maine to achieve its emissions targets. These targets follow the New England Governors’ and Eastern Canadian Premiers’ climate agreement, and will reduce Maine’s greenhouse gas emissions to 1990 levels by 2010 and to 10% below those levels in 2020. Both the targets and the development of the plan are a result of a law enacted by Maine last year. Maine’s plan proposes increasing sequestration of carbon through new forestry practices, creating incentives for more efficient vehicles, and trading emission reduction credits. In assessing the costs of the plan, the Department of Environmental Protection predicted that almost half of the actions would reduce emissions at little or no cost. 

Read About the Initiative [11]
Download the Plan [12]
Read the Legislation [13]

West Coast Governors Support Stronger Climate Strategy

On November 18, 2004, the governors of the three Pacific states that comprise the West Coast Governors’ Global Warming Initiative approved staff recommendations on climate change. These recommendations included setting emissions targets for state vehicle fleets, creating targets and incentives for renewable energy, and developing efficiency standards for appliances not regulated by the federal government. The staff recommendations also included numerous other actions addressing transportation, renewables, efficiency, alternative fuels, and greenhouse gas emissions inventories. The governors directed their staffs to continue working on opportunities for regional collaboration. The West Coast Governors will hold a conference in 2005 detailing the results of climate change research applicable to the West Coast states. The West Coast Governors’ Global Warming Initiative was launched in September 2003, with a commitment from Governors Kulongoski, Locke, and Schwarzenegger to act collaboratively and individually to reduce greenhouse gas emissions.  

Read the Report [14]
California Press Release [15]
Oregon Press Release [16]
Washington Press Release [17]

Colorado Voters Approve Renewable Energy Standard

On November 2, 2004, Colorado residents approved Amendment 37, a ballot initiative creating a Renewable Portfolio Standard (RPS). Under the new standard, utilities with over 40,000 customers must provide an increasing percentage of electricity from renewables, reaching 10 percent by 2015. The Colorado RPS defines renewables as including all solar, wind, geothermal, and biomass, and small hydroelectricity systems (of 10 megawatts or less). Currently, renewable energy supplies 2% of Colorado’s electricity demand. The amendment also established net-metering standards and mandated rebates for customer photovoltaic systems. It also capped residential rate increases due to investments in renewables at 50 cents per month. Colorado is the only state to approve a Renewable Portfolio Standard through a ballot initiative.  Proponents of the measure cited energy supply diversity and rural job creation as the major impetus for the legislation. Colorado is the 17th U.S. state to adopt an RPS.

See a Map of States with Renewable Portfolio Standards [9]
Read the Colorado Ballot Initiative [18]

California Announces Intention to Cut Vehicle GHG Emissions 30 Percent

On September 24, 2004, the California Air Resources Board voted to issue regulations implementing legislation passed in 2002. The legislation directs the ARB to adopt regulations that would achieve the "maximum feasible and cost-effective reduction of greenhouse gas emissions from motor vehicles." The standard will require that tailpipe greenhouse gas emissions from new vehicles be reduced by 22 percent by the 2012 model year and 30 percent by the 2016 model year. Connecticut, Maine, Massachusetts, New Jersey, New York, Rhode Island and Vermont currently follow California’s vehicle emission standards, and may opt to either adopt the new regulations, or fall back to federal standards. New York, Massachusetts, and Connecticut have already indicated that they will follow California’s standard. The cost-effective reduction measures identified by the staff include discrete variable valve lift, dual cam phasing, turbocharging with engine downsizing, automated manual transmissions, and camless valve actuation. The ARB expects that the regulations will add around $1000 to the cost of a new car in 2014 but that the increased up-front cost will be more than offset by decreased operating costs over the life of the vehicle.  The regulation will apply only to model years 2009 and later. The Board considered the final staff proposal at a public hearing in September 2004, and the ARB is required by law to adopt standards by January 1, 2005. The standards will not enter into effect until January 1, 2006, to give the legislature time to review the regulations and modify them, if necessary.

Press Release [19]
Read the CARB Report [20]
Read Our Report: Reducing Greenhouse Gas Emissions from U.S. Transportation [21]
Case study on California's GHG Vehicle Standard [22]

California Legislature to Allow Hybrids in HOV Lanes

On September 3, 2004, the California legislature passed a bill allowing drivers of hybrid electric vehicles to use high occupancy vehicle (HOV) lanes, even if the driver is the only occupant. In order to go into effect, the bill would have to be signed by Governor Arnold Schwarzenegger, after which the state would have to obtain federal approval because California’s 1,200 miles of HOV lanes were built using federal funds. The bill, AB 2628, requires the state to distribute decals to owners of hybrid vehicles that average at least 45 miles per gallon, up to a maximum of 75,000 vehicles. Virginia already has a program in place allowing hybrid and alternative fuel vehicles to use HOV lanes, even with only one occupant. Similar legislation is included in the federal transportation bill now under consideration in the U.S. Congress, and has also been introduced in the state legislatures of Georgia, Florida, Hawaii, Maryland, Massachusetts, Minnesota, and Washington. The goal of the legislation is to encourage the purchase of hybrid vehicles, in order to achieve energy security benefits and reduce air pollution and greenhouse gas emissions.

Press Release [23]
[24]Read the Legislation [25] 

States Litigate for Utility Emissions Reductions

On July 21, 2004, officials from eight states and New York City filed a lawsuit that seeks to force five utilities to reduce their carbon dioxide emissions. The states are basing their action on federal common law of public nuisance, arguing that carbon dioxide is a pollutant that endangers the health of their citizens. The lawsuit would require that the utilities reduce their carbon dioxide emissions by increasing efficiency, investing in cleaner technologies, and increasing the use of their existing cleaner and more efficient electricity generation facilities. The plaintiff states are California, Connecticut, Iowa, New Jersey, New York, Rhode Island, Vermont and Wisconsin. The utilities – American Electric Power Co., Southern Co., Xcel Energy Inc., Cinergy Corp., and the federally run Tennessee Valley Authority – emit 646 million tons of carbon dioxide annually, or about 25 percent of power sector emissions and 10 percent of the nation’s total emissions. This is the first time any state has filed a lawsuit against a company for emitting carbon dioxide. The plaintiffs are not requesting financial compensation. 

Press Release [26]

Rhode Island Passes Renewable Energy Standard

On June 29, 2004, Rhode Island Governor Donald L. Carcieri signed the Clean Energy Act, which requires state electricity retailers to derive at least 3 percent of the electricity they sell in state from renewable energy by December 31, 2006. The percentage of renewable energy required will then rise 1 percent per year through 2020, though the Rhode Island Public Utility Commission (PUC) is authorized to revise the schedule after 2013. Existing renewable resources may only contribute 2 percent of the required amount of renewables in any year; the rest must be from new renewable energy production. All energy for compliance must be generated in or delivered into the New England Power Pool electric grid, and compliance will be tracked using New England Generation Information System certificates, an accounting system for generation attributes. The law includes a number of flexibility mechanisms designed to lower the cost of compliance, including credit for adding renewables ahead of schedule and limited carry-over of credits from year to year. The PUC is directed to adopt regulations to implement the standard by December 31, 2005. The PUC is to design the regulations to achieve substantial greenhouse gas emission reductions, among other goals. 

Read the Legislation
[27]

Western Governors Adopt Clean Energy Resolution

On June 22, 2004, the Western Governors' Association (WGA) unanimously resolved to examine the feasibility and actions required to reach a goal of 30,000 megawatts of clean energy by 2015 and a 20 percent improvement in energy efficiency by 2020.  The Governors will also examine what is needed to meet the West's generation and transmission needs over the next 25 years. The resolution cites the need to protect against energy shortages and price spikes, accommodate the population's growing energy needs, position the Western energy system to respond to environmental challenges, and take advantage of new technologies that will lower the cost of renewable energy and of controlling emissions from the fossil fuel resource base.  According to the resolution, the project will stress "incentive-based, non-mandatory approaches," and it will also consider federal programs that could assist in reaching the goal. The WGA will form a diverse working group to develop policy proposals for achieving these goals. By November 2004, the Western Governors’ Association will develop a charter and budget for the working group, and secure funding for its operation.

Information on the Resolution [28]
WGA's Clean and Diversified Energy Initiative Website [29]

Hawaii Adopts Renewable Portfolio Standard

Hawaii has enacted a law that requires the state's public utilities to provide 8 percent of their electricity from renewable sources by December 31, 2005. The percentage of renewables required rises to 10 percent in 2010 and by 1 percent every year thereafter, reaching 20 percent in 2020. The bill, signed by Governor Linda Lingle on June 2, 2004, cites the legislature's concern with Hawaii's growing dependence on oil imports. It allows the Public Utilities Commission to excuse a utility from meeting the standard if the Commission determines that the standard could not be met in a cost-effective manner or as a result of circumstances beyond the utility's control. The bill also directs the Department of Land and Natural Resources and the Department of Business, Economic Development, and Tourism to undertake certain projects to support the private sector's development of renewable energy projects.

Read the Legislation [30]

Maryland Adopts Renewable Portfolio Standard

Maryland has adopted a renewable portfolio standard that requires the state’s electricity suppliers to generate increasing percentages of their electricity from renewable sources beginning in 2006. The legislation, which passed by a veto-proof margin in April by the House and the Senate, was signed by Governor Robert Ehrlich on May 26, 2004. The law requires that electricity suppliers produce 1 percent of their electricity from “Tier 1” renewable resources in 2006; the portion of renewables required rises by 1 percent every two years, reaching 7 percent in 2017. Tier 1 renewable resources include solar, wind, ocean, qualifying biomass, geothermal, landfill or wastewater methane, renewably-fueled fuel cells, and small hydroelectric plants. The law also requires that 2.5% of the portfolio each year be produced through either Tier 1 or “Tier 2” resources, until 2017, when all renewable generation must be from Tier 1. Tier 2 includes hydroelectric power, incineration of poultry litter, and waste-to-energy.

Read the Legislation [31]

Massachusetts Announces Climate Protection Plan

On May 6, 2004, Massachusetts' Governor Mitt Romney released the state's new Climate Protection Plan, saying "we have chosen to put our emphasis on actions, not discourse." The plan identifies several near-term actions the state will take under existing authority to reduce its greenhouse gas emissions. It adopts the goal agreed upon by the New England Governors/Eastern Canadian Premiers of reducing emissions to 1990 levels by 2010, to 10 percent below 1990 levels by 2020, and over the long term to 75 to 80 percent below currently levels. The state will lay the foundation for this work by improving its assessment of emissions and trends, by developing a statewide greenhouse gas inventory and tracking system and by requiring large emitters to report their emissions. Among the action items contained in the plan are reducing the climate impact of state agency operations, adopting energy efficiency standards for appliances, involving cities and towns as Climate Protection partners, providing incentives for hybrid vehicles, supporting clean energy, improving public transit and encouraging its use, creating an emissions banking and trading program, and adopting California's greenhouse gas standard for vehicles. In addition, the Climate Protection plan will make Massachusetts the first state in the nation to require that expected CO₂ emissions be taken into account in planning new transportation projects.


Read the Plan [32]

Connecticut Legislature Requires Climate Plan and Greenhouse Gas Reporting

The Connecticut legislature passed a bill on May 5, 2004, establishing a state goal of reducing greenhouse gas emissions to 1990 levels by 2010, to 10 percent below 1990 levels by 2020, and eventually to a level 75 to 80 percent below current levels over the long term. The goals are consistent with Connecticut's commitment to the Climate Change Action Plan adopted in 2001 by the Conference of the New England Governors and Eastern Canadian Premiers. The legislation requires the Governor's Steering Committee on Climate Change to develop a climate action plan by January 1, 2005 to achieve these first two reduction goals and to develop a plan by January 1, 2008, to achieve the long-term goal.  Governor Rowland, who has indicated that he will sign the bill, has already accepted 38 recommendations of the Steering Committee, which presented an initial report in January 2004. The bill also requires the Department of Environmental Protection to establish a greenhouse gas registry, to which all entities and facilities that must report other air emissions at either the state or federal level will be required to report direct greenhouse gas emissions, beginning July 1, 2006.  Starting July 1, 2008, all entities and facilities with combined direct and indirect greenhouse gas emissions exceeding 10,000 tons CO₂-e will be required to report both direct and indirect emissions. Entities and facilities not required by law to report emissions may choose to report voluntarily.

Read the Legislation [33]

Washington State to Require New Power Plants to Offset CO₂ Emissions

On March 31, 2004, Washington Governor Gary Locke signed into law a bill that requires new fossil fueled power plants in the state to offset 20 percent of their CO₂ emissions. All new fossil fueled electric generating facilities over 25 MW are covered by the legislation, as are existing facilities that seek to make modifications that would increase CO₂ emissions by 15 percent or more. Affected parties may invest directly in CO₂ mitigation projects, or they may pay an approved third party to conduct the mitigation at a rate per ton specified by the state Energy Council. The affected facilities also may meet some or all of their offset requirements through direct application of combined heat and power. The Washington requirement is modeled after one adopted by Oregon in 1997, which requires CO₂ offsets of 17 percent.

Read the Legislation [34]

New Mexico Adopts Renewable Portfolio Standard

The New Mexico legislature passed a bill that requires the state's utilities to generate at least 5 percent of their electricity from renewable sources by 2006.  The standard will increase by 1 percent per year through 2011, when it will reach 10 percent. The bill, signed by Governor Bill Richardson on March 4, 2004, placed into statute a rule that the Public Regulation Commission (PRC) had approved in late 2002. The new law directs the PRC to determine a reasonable cost threshold for compliance with the standard by December 31, 2004. Public utilities will not have to purchase renewable energy that would exceed the reasonable cost threshold. In addition, the law charges the PRC with establishing a system of tradable renewable energy certificates. The existing PRC rule also requires public utilities to offer its retail customers the option of purchasing, for a price premium, renewable energy in addition to energy required by the renewable portfolio standard.

Read the Legislation [35]

California Treasurer Announces the Green Wave Environmental Initiative

On February 3, 2004, California State Treasurer Phil Angelides announced the new Green Wave Environmental Investment Initiative, and called on the state’s two largest pension funds to commit $1.5 billion to invest in cutting-edge clean technologies and environmentally responsible companies. The California Public Employees’ Retirement System (CalPERS) and the California State Teachers’ Retirement System (CalSTRS) have an estimated combined value of over $250 billion and own nearly 160 million square feet of office space. Angelides’ four-pronged initiative calls on the two pension funds to use their financial clout to prod corporations to provide meaningful, consistent, and robust reporting of their environmental practices, risks, and potential liabilities; to target private investment in environmental technologies; to invest in environmentally responsible companies; and to determine whether their real estate investments are using clean energy and energy efficiency and conforming to green building standards. CalPERS' board of directors voted in March 2004 to make an initial investment of $200 million in environmentally sensitive technologies. CalSTRS followed in June, approving an initial $250 million.

Press Release [36]
Read the Green Wave Initiative Fact Sheet [37]

Twelve States Join Together to Promote Clean Energy

On January 29, 2004, public benefit funds from 12 states announced the new Clean Energy States Alliance (CESA), a non-profit organization that will provide information and technical help to its member funds as they work together to promote renewable and clean energy markets in the United States. Together, the 17 publicly managed clean energy funds from 12 states—California, Connecticut, Illinois, Massachusetts, Minnesota, New Jersey, New York, Ohio, Oregon, Pennsylvania, Rhode Island, and Wisconsin—will provide about $3.5 billion toward the effort over the next decade. Public benefit funds, which are collected through charges on customers’ electric bills or through required utility contributions, are used to support energy efficiency programs or renewable energy projects. CESA has already begun to promote solar, wind, fuel cells, and other clean energy projects and investments by helping the states share information and strategies. “States see clean energy as a way to improve the environment, but also as a powerful economic tool,” according to Lewis Milford, Executive Director of CESA. “By working together, these states can build even bigger clean energy markets, spur technology innovation, create more jobs and more quickly clean up the environment.”

Read the CESA Website [38]
Map of States with Public Benefit Funds [39]

States Take Action on Energy Efficiency Standards for Appliances

On January 20, 2004, the State of Maryland passed a law requiring stricter energy efficiency standards for nine residential and commercial appliances. The law covers ceiling fans, torchiere lighting fixtures, commercial washers, refrigerators, heaters and air conditioners, traffic signals, illuminated exit signs, and building transformers. Similar bills have been introduced in Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Illinois and Florida. California is already developing tougher standards for 15 appliances under a directive from its state legislature. The Maryland law is based on model standards proposed by the American Council for an Energy-Efficient Economy and the Appliance Standards Awareness Project. Appliances meeting the new standards are already widely available. Maryland residents and businesses are expected to save over $620 million in energy costs and reduce carbon emissions by approximately 192,000 metric tons by the year 2020, according to Northeast Energy Efficiency Partnerships, Inc.

Read the Model Standards [40]

Governor of West Virginia Proposes Mandatory Reporting of Greenhouse Gases

In his 2004 State of the State Message, West Virginia Governor Bob Wise announced his intention to establish a state requirement for reporting of greenhouse gases. In the address, delivered January 14, 2004, Governor Wise said, "We can no longer bury our head in the sand on the issue of greenhouse gases. To protect the vitality of West Virginia's energy-based economy, we must continue to take a leadership role on climate change issues. We are taking the first step to understand the effects of greenhouse gases by introducing legislation to require facilities to register their emissions of greenhouse gases." The proposed legislation would grant the state's Department of Environmental Protection the authority to develop reporting requirements.

Visit Gov. Wise's website on the State of the State [41]

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